BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 July 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
Net asset value^ 1.7% -6.0% -16.6% 26.3% 72.7% 25.5%
Share price 3.8% -8.1% -13.0% 25.4% 68.2% 20.5%
MSCI EM Latin America 1.4% -5.2% -10.0% 27.8% 93.1% 41.4%
Net asset value^ 1.6% -9.3% -20.4% 19.3% 56.1% -3.2%
MSCI EM Latin America 1.3% -8.5% -14.1% 20.8% 74.4% 9.1%
^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: 548.67p
Net asset value - cum income: 559.18p
Net asset value - capital only and with
bond at fair value: 544.79p
Net asset value - cum income and with
bond at fair value: 555.30p
Net asset value - capital with bond
Net asset value - cum income and with
bond converted: 555.30p
Share price: 519.00p
Total Assets*: £283.17m
Discount(share price to cum income NAV
with bond at fair value***): 6.5%
Average discount** over the month - cum income: 8.7%
Net yield: 3.6%
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 an income inclusive with
bond at fair value 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 an income inclusive with bond at fair 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
~Excluding 2,267,065 shares held in treasury.
Geographic Regional Exposure % Total Assets
Net current assets (inc.Fixed interest) 8.2
Ten Largest Equity Investments(in percentageorder)
Company Country of Risk % of Company
Vale Brazil 9.7
América Móvil Mexico 8.9
Petrobrás Brazil 7.4
Banco Bradesco Brazil 4.9
Fomento Economico Mexicano Mexico 4.0
Itau Unibanco Brazil 3.6
Groupo Televisa Mexico 3.4
AmBev Brazil 2.9
CCR Brazil 2.7
Natura Cosméticos Brazil 2.1
Commenting on the markets, Will Landers, representing the investment
For the month of July 2012, the Company posted a 1.7% increase in its NAV while
the shares appreciated by 3.8% (all in sterling) while the Trust's benchmark,
the MSCI EM Latin America Index returned 1.4%.
Positive contributions to performance during the month stemmed primarily from
an underweight position and stock selection in Chile, an off-benchmark position
in Colombia via Pacific Rubiales, stock selection in Mexico and the gearing.
The largest individual positive contributors for the month included Mexican
consumer goods name Kimberly-Clark, Brazilian utility Sabesp, Banco do Brasil
and not owning Coca-Cola Femsa. Weighing on performance for the month was an
overweight position in Panama via Copa Airlines. Individual negative
contributions to performance for the month came from Vale, beverage name Femsa,
wireless name TIM and not owning Itausa or Brasil Telecom.
During the month we increased exposure to Mexican broadcaster Televisa and
introduced exchange Bolsa Mexicana and Brazilian utility TAESA. We also
increased exposure to Brazilian steel name Gerdau and Mexican consumer goods
name Kimberly-Clark. These moves were funded by exiting Brazilian utility name
CTEEP, mining name Grupo Mexico as well as homebuilders PDG and Rossi and
reducing exposure to Femsa and CCR. Net gearing was 10.9% at the end of July.
The prospects for the Latin American region continue to look positive - in the
countries that the fund invests in, macroeconomic policies are generally sound,
financial systems are well capitalized, strong middle classes are in the
process of being established, and corporate governance is comparable to any
market in the world. Short-term market direction will undoubtedly be guided by
events in the Eurozone, and to a lesser extent China, but over time,
region-specific fundamentals should once again be positive catalysts for the
We remain overweight Brazil and underweight Mexico but continue to favour
domestically oriented stocks in both countries. We continue to be underweight
materials but are overweight Vale given attractive valuations and the expected
benefits from a weaker Brazilian Real. Despite a generally positive attitude
towards Chile, Peru and Colombia, we maintain our large underweight to the
Andean region given challenging valuations and low liquidity. However, we
remain vigilant in our pursuit of companies that should benefit from attractive
growth levels in the region.
14 August 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.
-0- Aug/14/2012 15:25 GMT
Press spacebar to pause and continue. Press esc to stop.