BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Portfolio Update
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 28 February 2013 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five ^^Since
month months year years years 31.03.06 Sterling: Net asset value^ 2.3% 16.6% -1.4% 6.4% 26.6% 102.0% Net asset value^^ 2.3% 16.0% 0.7% 10.2% 26.1% 101.2% Share price 0.2% 15.7% -4.8% -0.8% 10.4% 86.7% MSCI EM Latin America 1.6% 13.5% -2.4% 7.8% 30.4% 116.8% US Dollars: Net asset value^ -2.1% 10.4% -6.3% 6.1% -3.4% 76.8% Net asset value^^ -2.1% 9.8% -4.3% 9.9% -3.8% 76.1% MSCI EM Latin America -2.8% 7.5% -7.2% 7.5% -0.5% 89.7%
^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 and
with bond at par value~: 633.59p Net asset value - cum income and
with bond at par value~: 650.48p Net asset value - capital only and with
bond at fair value~~: 629.34p Net asset value - cum income and with
bond at fair value~~: 646.24p Net asset value - capital with bond
converted~~~: 629.34p Net asset value - cum income and with
bond converted~~~: 646.24p Share price: 572.50p Total Assets#: £311.411m Discount(share price to cum income NAV
with bond at fair value*): 11.4% Average discount* over the month - cum income: 8.0% Gearing at month end**: 7.4% Gearing range: 0-25% Net yield: 3.5% Ordinary shares in issue***: 41,433,247
~Par value refers to the par-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 62.2 Mexico 21.5 Chile 4.6 Colombia 2.1 Panama 1.3 Peru 1.3 Net current assets (inc.Fixed interest) 7.0
----- Total 100.0
Ten Largest Equity Investments (in percentage order) Company Country of Risk % of Company
Vale Brazil 10.5 Banco Bradesco Brazil 5.9 Groupo Televisa Mexico 4.6 Fomento Economico Mexicano Mexico 4.2 CCR Brazil 3.9 Itau Unibanco Brazil 3.6 AmBev Brazil 3.1 Brasil Foods Brazil 2.8 BM&F Bovespa Brazil 2.7 América Móvil Mexico 2.6
Commenting on the markets, Will Landers, representing the investment Manager noted;
For the month of February 2013, the Company posted a 2.3% (NAV at Fair Value) increase in its NAV while the share price appreciated by 0.2% (all in sterling). The Company's benchmark, the MSCI EM Latin America Free Index returned 1.6%.
During the month we increased exposure to Mexican broadcaster Televisa, Brazilian online retailer CBD, Brazilian iron ore miner Vale, BM&F Bovespa and Brazilian fuel distributors. In addition, we introduced Mexican retailer Sanborns during the month. These moves were funded by exiting Tenaris, Kimberly-Clark de Mexico and Gerdau as well as reducing exposure to Petrobras and America Movil.
Net gearing was 7.4% at the end of February (including fixed interest securities as cash).
Latin American markets posted negative returns in February 2013, on the back of increasing risk globally and signs of weakness in Mexico. Our top overweight continues to be Brazil where we remain focused on the domestic side of the equation. In Brazil, thanks to monetary and fiscal stimulus over the last year, a recovery in the domestic economy appears to be underway, albeit at a slower pace than expected. We continue to prefer sectors such as retailers and toll road operators. Mexico showed some weakness in February due to disappointments in macro data and 4Q12 earnings coming in weaker than expected. Despite the recent soft patch in Mexico, expectations remain high regarding the potential for energy and fiscal reforms. Valuations in Mexico are full and recent sales leave us with a neutral weight. Similar to Brazil we are favouring domestically oriented stocks in Mexico, especially media and retailers. Liquidity constraints and/or high valuations lead us to remain underweight the Andean region.
14 March 2013
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.
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