BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 August 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^ -0.4% 2.7% -12.3% 17.1% 72.1% 29.8%
Net asset value ^^ -0.1% 3.6% -9.3% 17.0% 71.9% 29.6%
Share price -2.9% 0.0% -13.9% 9.5% 63.3% 23.8%
MSCI EM Latin America -1.9% 1.5% -7.5% 20.7% 89.5% 41.9%
Net asset value^ 1.0% 6.0% -14.4% 14.1% 57.6% 2.2%
Net asset value^^ 1.3% 6.9% -11.4% 14.0% 57.4% 2.1%
MSCI EM Latin America -0.5% 4.7% -9.7% 17.6% 73.5% 11.7%
^cum income - bond at par
^^cum income - bond at fair value since 15 September 2009
^^^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: 546.12p
Net asset value - cum income: 553.97p
Net asset value - capital only and with
bond at fair value: 544.13p
Net asset value - cum income and with
bond at fair value: 551.98p
Net asset value - capital with bond
Net asset value - cum income and with
bond converted: 551.98p
Share price: 500.75p
Total Assets*: £280.33m
Discount(share price to cum income NAV
with bond at fair value***): 9.3%
Average discount** over the month - cum income: 9.9%
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 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) 8.6
Ten Largest Equity Investments (in percentage order)
Company Country of Risk % of Company
América Móvil Mexico 8.0
Vale Brazil 7.9
Petrobrás Brazil 7.7
Banco Bradesco Brazil 5.3
Fomento Economico Mexicano Mexico 4.4
Itau Unibanco Brazil 4.3
Groupo Televisa Mexico 3.5
CCR Brazil 2.9
AmBev Brazil 2.8
Banco do Brasil Brazil 2.2
Commenting on the markets, Will Landers, representing the investment
For the month of August 2012, the Company posted a 0.4% fall in its undiluted
NAV while the shares fell by 2.9% (all in sterling) and the Company's benchmark,
the MSCI EM Latin America Index returned -1.9%.
Positive contributions to performance during the month stemmed primarily from
stock selection in Brazil and, an off-benchmark position in Colombia via Pacific
Rubiales. The largest individual positive contributors for the month included
Banco Bradesco, toll road operator CCR, oil & gas producer Queiroz Galvao and
Banco do Brasil. Weighing on performance was stock selection in Colombia,
which was somewhat offset by our underweight position in the country.
Individual negative contributions to performance for the month came from Vale,
software name Totvs, Bancolombia and Cemig.
During the month we increased exposure to Banco Itau and Brazilian steel name
Gerdau. We also initiated a position in Chilean chemical name Soquimich based
on its growth potential and unique asset base. These moves were partially
funded by reducing exposure to Vale given concerns about China, and related
falling iron ore prices. We also reduced exposure to telecoms in Mexico and
Brazil due to concerns about the challenging regulatory landscape. Finally, we
exited Peruvian gold name Buenaventura.
The portfolio's key overweight is Brazil where we are positioned to benefit
from a recovery in the domestic market during the second half of 2012 and into
2013. We are just beginning to see the positive impact on the Brazilian
domestic economy from the interest rate easing cycle which started just over 1
year ago. Interest rates in Brazil are at the lowest levels ever seen in
Brazil's modern history. While we are underweight the Mexican equity market,
we have looked to increase where possible, exposure to companies that should
benefit from the expected reform agenda. We continue to be underweight the
Andean countries given lower liquidity and rich valuations.
14 September 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- Sep/14/2012 10:53 GMT
Press spacebar to pause and continue. Press esc to stop.