BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Interim Management Statement
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Interim Management Statement BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
Interim Management Statement - 3 months to 31 March 2013
To the members of BlackRock Latin American Investment Trust plc.
This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure & Transparency Rules. It should not be relied on by any other party for any other reason.
This interim management statement relates to the period from 1 January 2013 to 31 March 2013, and contains information that covers this period, and up to the date of publication of this interim management statement.
The Company's objective is to secure long term capital growth and an attractive total return primarily through investing in quoted securities in Latin America. The Company is managed by Will Landers of BlackRock Investment Management.
Stock Performance Cumulative Performance(%):
One Three One Five Month Months Year Years % % % %
Net Asset Value (1) -0.8 8.7 1.9 32.7 Net Asset Value (2) -1.1 7.8 4.3 31.8 Share Price 1.5 9.6 -3.7 23.8 MSCI EM Latin America Index 0.0 8.0 0.9 34.8
All performance figures are in Sterling on a total return basis.
1. cum income - bond at par 2. cum income - bond at fair value since 15 September 2009
Ten Largest Equity Investments (in percentage order)
% of Equity Company Country of Risk 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 Brasil Foods Brazil 3.0 1.7 BM & F Bovespa Brazil 2.8 1.4 Petrobras Brazil 2.8 7.5
Financial position and performance as at 31 March 2013
Gross Assets (£m) 302.41 Short term borrowings (£m) nil Convertible Bond (£m) 44.3 Net asset value-capital only 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 Ordinary Shares in issue (excluding 2,267,065 treasury shares) 41,433,247 Gearing at month end* 7.1% Gearing range (as a % of net assets) 0-25% Net yield 3.4% Discount (share price to cum income NAV with bond at fair value) 9.3% Average discount to NAV for 1 month to 31 March 2013 9.8%
~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.
*Gearing is calculated using debt at par, less cash and cash equivalents and fixed interest investments as a percentage of net assets.
It was announced on 17 January 2013 that the Board had decided to implement a semi-annual tender offer on 2 April 2013.
Following the semi-annual tender offer on 2 April 2013, 2,071,662 ordinary shares were bought back and placed in treasury on 3 April 2013 at a price of 607.4530 pence per Ordinary Share. Following the implementation of the tender offer there were 39,361,585 ordinary shares in issue (excluding 2,287,662 ordinary shares held in treasury).
A second interim dividend of 25.00 cents per share was declared on 27 February 2013, payable on 26 April 2013 to shareholders on the register on 22 March 2013. It was announced on 10 April 2013 that the sterling equivalent was 16.31614 pence per share.
The semi annual interest payment in respect of the US$64,000,000 3.5% Convertible Bonds due 2015 was paid on 15 March 2013.
Annual Financial Report
The Company announced its annual financial results for the year ended 31 December 2012 on 27 February 2013.
Annual General Meeting
At the Company's Annual General Meeting held on 14 May 2013, all resolutions were passed.
Net Asset Value
The Company announces its NAV on a daily basis, which can be accessed via http: //www.brlaplc.co.uk, under the "Announcements" tab.
The unaudited net asset value for BlackRock Latin American Investment Trust plc at close of business on 13 May 2013 was:
Capital only Sterling (pence) 615.71p Including current year income Sterling (pence) 623.36p Capital only Sterling (pence) with convertible bond at fair value 609.76p Including current year income Sterling (pence) with convertible bond at fair value 617.41p Fully diluted for full conversion of bond Sterling (pence) including capital only 609.76p Fully diluted for full conversion of bond Sterling (pence) including income 617.41p
Directors' Acquisition of Shares
Since 31 December 2012, the following directors have purchased/sold the following ordinary shares:
Dr Mahrukh Doctor - sale of 2 ordinary shares on 18 March 2013 (to fund the ISA plan management charge) and purchase of 17 ordinary shares on 26 April 2013 (dividend reinvestment).
Desmond O'Conor - sale of 24 ordinary shares (to fund the ISA plan management charge) on 18 March 2013 and purchase of 238 ordinary shares (dividend reinvestment) on 26 April 2013.
Material Events and transactions
There were no other material events or transactions, except as disclosed, during the three months to 31 March 2013, nor was the Company involved in any other material transactions during the period except the purchase and sale of securities undertaken in the normal course of its business.
The Board is not aware of any material events or transactions, except as disclosed herein, occurring between 31 March 2013 and the date of publication of this interim management statement which would have a material impact on the financial position of the Company.
Contact details: Barbara Powley Company Secretary Tel: 020 7743 5610
14 May 2013
Please note that more detailed performance information is available on the Investment Manager's website-www.blackrock.co.uk/brla. Neither the contents of the Investment Manager's website nor the contents of any website accessible from hyperlinks on the Investment Manager's website (or any other website) is incorporated into, or forms part of, this announcement.
Latest information is also available by typing "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).
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