BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Portfolio Update
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 March 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^ -0.8% 8.7% 1.9% -2.0% 32.7% 100.4% Net asset value^^ -1.1% 7.8% 4.3% 1.3% 31.8% 99.1% Share price 1.5% 9.6% -3.7% -7.0% 23.8% 89.5% MSCI EM Latin America 0.0% 8.0% 0.9% 0.3% 34.8% 116.8% US Dollars: Net asset value^ -0.8% 1.5% -3.1% -1.9% 1.4% 75.5% Net asset value^^ -1.0% 0.7% -0.8% 1.5% 0.7% 74.4% MSCI EM Latin America 0.0% 0.9% -4.1% 0.4% 3.0% 89.8%
^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~: 627.12p Net asset value - cum income and
with bond at par value~: 628.77p Net asset value - capital only and with
bond at fair value~~: 621.37p Net asset value - cum income and with
bond at fair value~~: 623.02p Net asset value - capital with bond
converted~~~: 621.37p Net asset value - cum income and with
bond converted~~~: 623.02p Share price: 565.00p Total Assets#: £302.411m Discount(share price to cum income NAV
with bond at fair value*): 9.3% Average discount* over the month - cum income: 9.8% Gearing at month end**: 7.1% Gearing range (as a % of net assets): 0-25% Net yield: 3.4% 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
% % of Total Equity MSCI EM Latin Assets Portfolio* American Index
Brazil 60.8 65.9 57.6 Mexico 21.6 23.4 25.2 Chile 4.5 4.9 9.0 Colombia 2.8 3.0 5.5 Panama 1.2 1.3 0.0 Peru 1.4 1.5 2.7 Net current assets (inc.Fixed interest) 7.7 0.0 0.0
----- ----- ----- Total 100.0 100.0 100.0
----- ----- -----
*excluding net current assets & fixed interest
Ten Largest Equity Investments (in percentage order)
Company Country of Risk % of equity portfolio % of benchmark
Vale Brazil 9.9
6.6 Banco Bradesco Brazil 6.3
5.6 Grupo Televisa Mexico 4.8
1.6 Itau Unibanco Brazil 4.4
4.9 FEMSA Mexico 4.4
2.6 CCR Brazil 4.3
1.1 AmBev Brazil 3.0
4.4 BrasilFoods Brazil 3.0
1.7 BM & F Bovespa Brazil 2.8
1.4 Petrobras Brazil 2.8
Commenting on the markets, Will Landers, representing the investment Manager noted;
For the month of March 2013, the Company posted a decrease of 0.8% (NAV at par)
in its NAV while the shares appreciated by 1.5% (all in sterling with income reinvested) while the Company's benchmark, the MSCI EM Latin America Free Index
Performance during the month was helped by our exposure to Panama. Our low weighting, relative to the index, in Colombia also helped. At the stock level, positive contributors included Bolsa Mexicana, Copa Holdings and Ambev. Brazilian shares weighed on performance, particularly Petrobras, where our exposure was lower than that of the index, which performed well and Vale, which performed poorly. Canadian listed Colombian oil producer Pacific Rubiales also weighed on performance.
During the month we increased exposure to Canadian-listed Colombian oil producer Pacific Rubiales and Brazilian banks Itau and Banco do Brasil. In addition, we introduced Mexican REIT Terrafina and Mexican infrastructure name IENOVA. These moves were funded by exiting Fibria as well as reducing exposure to Banorte, Mexichem, Copa Holdings and Banco Bradesco.
Net gearing was 7.1% at the end of March (including bonds as cash).
We remain positioned with a higher than benchmark exposure to Brazil based on our expectations of a continuation of the middle class growth story along with a more market friendly tone from the current administration. Fiscal, monetary and regulatory uncertainties continue to weigh heavily on the Brazilian market. However, the Brazilian equity market continues to rank among the cheapest in the world and earnings expectations have been moving up for the past three to four months, which should be supportive going forward. Mexico, where we have a below benchmark exposure, currently has amongst the highest valuations in the world; however, we continue to have a positive view on the reform agenda being orchestrated by President Pena Nieto's administration. Liquidity constraints and/or high valuations lead us to remain underweight the Andean region.
19 April 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.
-0- Apr/19/2013 14:51 GMT