BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Portfolio Update
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 30 November 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^ -0.7% 0.7% -2.5% -5.4% 73.3% 13.6% Net asset value^^ -0.7% 1.0% -1.4% -1.4% 73.5% 13.8% Share price -3.0% -1.2% -3.7% -10.9% 61.3% 12.1% MSCI EM Latin America -1.1% 0.9% -1.2% -0.7% 91.1% 22.8% US Dollars: Net asset value^ -1.2% 1.6% -0.6% -7.6% 60.2% -11.4% Net asset value^^ -1.2% 1.9% 0.5% -3.7% 60.3% -11.3% MSCI EM Latin America -1.6% 1.8% 0.6% -3.1% 76.6% -4.3%
^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 and
with bond at par value~: 546.67p Net asset value - cum income and
with bond at par value~: 557.99p Net asset value - capital only and with
bond at fair value~~: 545.96p Net asset value - cum income and with
bond at fair value~~: 557.28p Net asset value - capital with bond
Converted~~~: 545.96p Net asset value - cum income and with
bond converted~~~: 557.28p Share price: 494.75p Total Assets#: £280.80m Discount(share price to cum income NAV
with bond at fair value*): 11.2% Average discount* over the month - cum income: 10.3% Gearing**: 8.7% Net yield: 3.8% Ordinary shares in issue***: 41,433,247
During the month, 50,000 shares were repurchased at a cost of £0.26m.
~Par value refers to the face-value of the convertible bond which is also the amount repayable to holders on the maturity of the bond.
~~Fair value refers to the price at which the bond is currently traded in the market. The variance in the NAV performance using these different methods to value the bond is to illustrate the effects of dilution should the bond be converted.
~~~Where the current Net Asset Value (including income) in US dollar terms with bond at fair value exceeds the conversion price of US$9.83 for the convertible bond, the Net Asset Value is shown on a fully diluted basis, reflecting the impact of converting the bond at a lower value. Where the current Net Asset Value (including income) in US dollar terms with bond at fair value does not exceed the conversion price, the Net Asset Value will be the same as that without the conversion of the bond.
#Total assets include current year revenue.
*The Discount is calculated based on the methodology for calculation of the Net Asset Value (expressed in sterling terms) as set out in the preceding statement
**Gearing is calculated using debt at par, less cash and cash equivalents and fixed interest investments as a percentage of net assets.
***Excluding 2,408,065 shares held in treasury.
Geographic Regional Exposure % Total Assets
Brazil 56.5 Mexico 22.8 Chile 4.6 Peru 1.8 Colombia 1.7 Panama 1.3 Argentina 0.8 Net current assets (inc.Fixed interest) 10.5
----- Total 100.0
Ten Largest Equity Investments (in percentage order)
Company Country of Risk % of Company
Vale Brazil 9.1 América Móvil Mexico 6.6 Petrobrás Brazil 6.2 Banco Bradesco Brazil 5.5 Itau Unibanco Brazil 4.6 Fomento Economico Mexicano Mexico 4.0 Groupo Televisa Mexico 3.6 AmBev Brazil 3.2 CCR Brazil 3.1 Brasil Foods Brazil 2.2
Commenting on the markets, Will Landers, representing the investment Manager noted;
For the month of November 2012, the Company posted a 0.7% decrease in its NAV while the shares fell by 3.0%, while the Company's benchmark, the MSCI EM Latin America Free Index, returned -1.1% (all in sterling).
Positive contributions to performance stemmed primarily from stock selection in Brazil and Mexico. Individual contributors included an underweight to Brazilian oil and gas giant Petrobras, not owning utility name Eletrobras, and overweights to Banco Bradesco, Femsa, Televisa and Banco Santander Mexico. Weighing on performance was an off-benchmark position in Colombia. The largest individual detractors included Cemex Latam Holdings, an overweight in regional jet manufacturer Embraer and not owning tobacco name Souza Cruz.
During the month we increased exposure to financials in Mexico via Banorte and consumers in Chile (Falabella), Brazil (Minerva) and Mexico (Walmex). In addition we initiated a position in Mexican property name Fibra. Within materials we added to iron ore, cement and pulp & paper. We exited our position in Brazilian steel name Usiminas. Also funding these moves was a reduction in Brazilian utilities and Brazilian oil & gas giant Petrobras. Net gearing was 8.7% at the end of November.
Despite a challenging market environment, we remain positive on the prospects for Latin America, especially Brazil. The Brazilian Central Bank left rates unchanged this month and showed a bias to leave rates lower for a longer period of time which should be supportive of the ongoing economic recovery. We continue to be positioned to benefit from the domestic recovery with retailers and banks being a focus. Valuations in Mexico remain close to fair value. With labour reform recently passed and a new administration in Mexico any progress towards energy and fiscal reform should benefit equities in Mexico. The Andean region remains an underweight due to liquidity and valuation concerns.
14 December 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- Dec/14/2012 16:04 GMT