BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Portfolio Update
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 30 June 2012 and unaudited.
Performance at month end with net income reinvested
One Three One Three ^^Since Five
month months year years 31.03.06 years Sterling: Net asset value^ 1.4% -13.6% -23.8% 37.2% 69.9% 24.5% Share price -0.8% -17.6% -23.1% 30.6% 62.0% 18.6% MSCI EM Latin America 1.9% -11.5% -16.2% 36.5% 90.3% 39.7% US Dollars: Net asset value^ 3.3% -15.2% -25.5% 31.7% 53.6% -2.6% MSCI EM Latin America 3.9% -13.1% -18.1% 30.0% 72.1% 9.2%
^cum income - bond at par ^^Date which BlackRock took over the investment management of the Company.
Sources: BlackRock, Standard & Poor's Micropal
At month end: Net asset value - capital only: 539.97p Net asset value - cum income: 549.92p Net asset value - capital only and with
bond at fair value: 536.07p Net asset value - cum income and with
bond at fair value: 546.02p Net asset value - capital with bond
converted: 539.97p Net asset value - cum income and with
bond converted: 549.92p Share price: 500.00p Total Assets*: £279.27m Discount(share price to cum income NAV
with bond at fair value***): 8.4% Average discount** over the month - cum income: 5.6% Gearing**: 11.2% Net yield: 3.8% Ordinary shares in issue~: 41,574,247
*Total assets include current year revenue. **Gearing is calculated using debt at par, less cash and cash equivalents and fixed interest investments as a percentage of net assets. ***To the extent that the US dollar Net Asset Value on a capital only with bond at par basis exceeds the current conversion price of $8.98 for the convertible bond, the discount is calculated using the share price as a percentage of the fully diluted cum income Net Asset Value in sterling terms. Where the Net Asset Value on a capital only with bond at par value basis does not exceed the conversion price, the discount is calculated using the share price as a percentage of the cum income Net Asset Value with bond at fair value. ~Excluding 2,267,065 shares held in treasury.
Geographic Regional Exposure % Total Assets
Brazil 60.3 Mexico 18.7 Chile 4.7 Colombia 2.3 Peru 2.1 Panama 1.4 Argentina 0.7 Net current assets (inc.Fixed interest) 9.8
----- Total 100.0
Ten Largest Equity Investments (in percentage order) Company Country of Risk % of Company
Vale Brazil 10.9 América Móvil Mexico 8.9 Petrobrás Brazil 7.2 Fomento Economico Mexicano Mexico 5.0 Banco Bradesco Brazil 4.9 Itau Unibanco Brazil 3.3 CCR Brazil 3.0 AmBev Brazil 3.0 Groupo Televisa Mexico 2.4 Natura Cosmésticos Brazil 2.1
Commenting on the markets, Will Landers, representing the investment Manager noted;
For the month of June 2012, the Company posted a 1.4% (undiluted NAV) or 1.9% (NAV at Fair Value) increase in its NAV while the shares fell by 0.8% (all in sterling) while the Company's benchmark, the MSCI EM Latin America Index returned 1.9%.
Positive contributions to performance during the month stemmed primarily from an underweight position in Colombia and the gearing. The largest individual positive contributors for the month included Mexican beverage name Femsa, Mexican telecom giant America Movil, and not owning Colombian oil & gas producer Ecopetrol. Weighing on performance for the month were stock selection and an overweight position in Brazil and an off-benchmark position in Colombia via Pacific Rubiales. Individual negative contributions to performance for the month came from Brazilian oil & gas producers OGX and Queiroz Galvao and Brazilian regional jet manufacturer Embraer.
During the month we added to telecoms in Brazil, Petrobras, Brazilian credit card acquirer Cielo and Brazilian fuel distributor Ultrapar. These moves were funded by reducing exposure to Ambev, America Movil, Vale and Itau. In addition we exited Brazilian oil & gas producer OGX given concerns around production disappointments.
We continue to expect Latin America to be one of the first markets to recover once the market and company specific fundamentals begin to drive markets once again. Despite recent disappointments at both the macro growth level as well as with certain leading companies, Brazil remains our largest overweight representing over 60% of assets. Over the year, we have moved our Brazilian exposure to a combination of sectors that tend to be more domestically oriented, balanced by increased exposure to exporters that benefit from a weaker currency. We expect the Brazilian Central Bank to finish the current easing cycle at 7-7.5% range, with the impact of the easing cycle starting to boost economic growth during the second half of the year. In Mexico, the outcome of the recent Presidential election was widely expected, the narrower margin of victory by the PRI means that progress on the reform agenda will require some level of negotiating with the outgoing PAN. Mexico accounts for approximately 23% of assets, representing a slight underweight. The Andean region remains at a large underweight due to a combination of low liquidity and challenging valuation levels.
13 July 2012
Latest information is available by typing www.brla.co.uk on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager's website nor the contents of any website accessible from hyperlinks on the Manager's website (or any other website) is incorporated into, or forms part of, this announcement.
END -0- Jul/13/2012 14:55 GMT