BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 July 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
Net asset value^ -0.4% -14.2% -2.4% -15.6% 7.0% 68.6%
Net asset value^^ -0.4% -14.3% -2.8% -13.1% 6.1% 67.1%
Share price -0.6% -16.6% -7.9% -21.1% -1.8% 54.9%
MSCI EM Latin America -1.0% -13.9% -5.9% -11.9% 11.1% 81.7%
Net asset value^ -0.4% -16.4% -5.5% -18.3% -18.1% 47.4%
Net asset value^^ -0.4% -16.6% -5.9% -15.8% -18.8% 46.1%
MSCI EM Latin America -1.0% -16.1% -8.9% -14.7% -15.0% 58.8%
^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~: 518.38p
Net asset value - cum income and
with bond at par value~: 528.87p
Net asset value - capital only and with
bond at fair value~~: 512.42p
Net asset value - cum income and with
bond at fair value~~: 522.90p
Net asset value - capital with bond
Net asset value - cum income and with
bond converted~~~: 522.90p
Share price: 462.00p
Total Assets#: £250.16m
Discount(share price to cum income NAV
with bond at fair value*): 11.6%
Average discount* over the month - cum income: 10.3%
Gearing at month end**: 8.3%
Gearing range (as a % of net assets): 0-25%
Net yield: 4.2%
Ordinary shares in issue***: 39,361,585
~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
~~~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 2,212,662 shares held in treasury.
Geographic Regional Exposure
% % of
Total Equity MSCI EM Latin
Assets Portfolio* American Index
Brazil 56.8 63.1 55.1
Mexico 23.6 26.2 28.0
Chile 3.2 3.6 8.7
Colombia 2.8 3.1 6.1
Peru 2.2 2.4 2.1
Panama 1.4 1.6 0.0
Net current assets (inc.Fixed interest) 10.0 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
Itau Unibanco Brazil 6.5 4.5
Vale Brazil 5.2 5.8
FEMSA Mexico 4.4 2.7
CCR Brazil 4.2 1.0
Grupo Televisa Mexico 4.0 2.0
BM & F Bovespa Brazil 3.6 1.4
Brasil Foods Brazil 3.4 1.4
America Movil Mexico 3.3 5.7
Banco Bradesco Brazil 3.2 4.8
BB Seguridade Brazil 2.9 0.7
Commenting on the markets, Will Landers, representing the investment
Summary of Performance over the period
For the month of July 2013, the Company's NAV fell by 0.4% (NAV at Fair Value)
while the share price fell by 0.6% (all in sterling terms). The Company's
benchmark, the MSCI EM Latin America Free Index fell by 1.0%.
Fund Manager's Commentary
Positive contributions to performance stemmed primarily from an underweight to
Chile and stock selection in Mexico. In Mexico, positive contributions came
from overweight positions in Televisa and Banorte. Pacific Rubiales, Copa
Holdings and not owning Latam Airlines also contributed positively during the
month. Weighing on performance was an underweight to Colombia. The largest
individual detractors were names we didn't own - Ecopetrol and Grupo Mexico.
Of the names we held, Minerva and Vale weighed on performance.
Net gearing was 8.3% at the end of July (including bonds as cash).
During the month we rotated some Brazilian bank exposure from Bradesco to Itau
and increased exposure to Cemex and BB Seguridade. We initiated positions in
Gerdau (Brazilian steel), Hypermarcas (Brazilian retailer) and Grana Y Montero
(Peruvian construction). These moves were partially funded by reducing
exposure to Petrobras and BM&F Bovespa and exiting Soquimich and Qualicorp.
The portfolio is overweight Brazil where we prefer domestic related stocks
versus global cyclical stocks with a continued focus on select banks, consumer
discretionary and infrastructure names. The Brazilian economic recovery has
been weaker than expected, with inflation remaining at the high end of the
target range - the successful auctioning of infrastructure projects will be key
for improved growth prospects as we head into 2014. Valuations in Mexico
remain among the highest in the emerging world, but the potential for progress
on the reform agenda during the second half of 2013 keeps us cautiously
optimistic on the prospects for Mexico for the remainder of the year. The
underweight to the Andean region is based on our ongoing concerns regarding
expensive valuations and lower liquidity.
16 August 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- Aug/16/2013 14:59 GMT
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