BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 March 2014 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^ 8.2% -0.1% -21.7% -31.6% 63.6% 56.9%
Share price 6.4% -0.6% -21.9% -32.8% 55.7% 48.0%
MSCI EM Latin America 9.4% -0.3% -21.3% -26.9% 47.5% 70.6%
Net asset value^ 7.7% 0.6% -13.9% -28.7% 90.5% 51.0%
MSCI EM Latin America 8.8% 0.4% -13.6% -23.9% 71.6% 64.0%
^^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: 471.56p
Net asset value - cum income: 473.78p
Share price: 422.25p
Total Assets#: £189.1m
Discount(share price to cum income NAV): 10.9%
Average discount* over the month - cum income: 10.2%
Gearing at month end**: 4.2%
Gearing range (as a % of net assets): 0-25%
Net yield##: 4.3%
Ordinary shares in issue***: 39,369,620
#Total assets include current year revenue.
## calculated using total dividends declared for the financial year ended 31
December 2013 as a percentage of month end share price.
*The discount is calculated using the cum income NAV (expressed in sterling
**Gearing is calculated using debt at par, less cash and cash equivalents and
fixed interest investments as a percentage of net assets.
***Excluding 2,071,662 shares held in treasury.
Geographic Regional Exposure
Total % of Equity MSCI EM
Assets Portfolio * American
Brazil 65.3 63.7
Mexico 27.3 26.5
Peru 5.8 5.6
Chile 2.7 2.6
Colombia 1.6 1.6
Net current assets (inc.Fixed interest) -2.7 0.0
Total 100.0 100.0
*excluding net current assets & fixed interest
Ten Largest Equity Investments (in percentage order)
Company Country of
Risk % of equity portfolio
Itau Unibanco Brazil 8.4
Vale Brazil 7.0
Petrobras Brazil 6.6
AmBev Brazil 5.4
Banco Bradesco Brazil 4.8
Grupo Televisa Mexico 4.3
BB Seguridade Brazil 3.9
CEMEX Mexico 3.7
Credicorp Peru 3.4
FEMSA Mexico 2.9
Commenting on the markets, Will Landers, representing the investment
For the month of March 2014, the Company's NAV increased by 8.2% (undiluted
NAV) and the share price increased by 6.4% (all in sterling terms), while the
Company's benchmark, the MSCI EM Latin America Free Index, increased by 9.4%.
Positive contributions to performance stemmed primarily from an underweight to
Chile and stock selection in Chile and Mexico. At the stock level, Brazilian
education name Kroton, which reported strong 4Q13 results, was the largest
contributor to performance. An underweight to America Movil proved beneficial
as the name was negatively impacted by the announcement from the regulator in
Mexico that they are considered a dominant player in the telecom industry. In
addition, not holding Grupo Mexico and Petroleos De Chile contributed
positively to performance. Weighing on performance was stock selection in
Brazil, an underweight to Colombia and stock selection in and an underweight to
Peru. The largest individual detractors included an underweight to Petrobras,
and overweights to Peruvian construction company Grana y Montero and Mexican
cement company Cemex.
During the month we increased exposure to energy by adding to Brazilian oil &
gas company Petrobras in order to neutralize our position given the growing
potential of an opposition win in the Presidential elections in October. We
reduced exposure to Mexican telecom name America Movil (regulatory
uncertainties) and Mexican materials name Cemex (to realize profits in our
position), as well as exiting Genomma Labs (taking profits on stretched
valuations) and Copa Holdings (concerns regarding its cash balance in
Venezuela). Kimberly Clark de Mexico was added to the portfolio during the
month as we begin to increase our Mexican weights ahead of an expected recovery
in economic activity later in the year.
Net gearing was approximately 4.2% at the end of March.
The next six months should continue to be volatile. We see the presidential
election in October and the possibility of an opposition win as being the main
drivers for Brazilian equities. For Mexican equities we see the main driver
being the passage of secondary laws for the opening up of the energy sector
(along with better economic performance). Valuations in Brazil remain the most
compelling in the region, but multiple expansion can only be expected with more
market friendly policies, whether from a second-term from President Rousseff or
from an opposition win. Meanwhile, Mexican valuations look stretched, even
under a scenario of improving growth into the second half of the year, pricing
in much of the growth from the reforms that will most likely take years to
materialize. Peru remains our favourite market within the Andean region.
11 April 2014
Latest information is available by typing www.blackrock.co.uk/brla 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/11/2014 13:23 GMT
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