PR Newswire
London, June 18
| BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC | ||||||||||||||
| All information is at 31 May 2015 and unaudited. | ||||||||||||||
| Performance at month end with net income reinvested | ||||||||||||||
| One month | Three months | One year | Three years | Five years | ^^Since 31.03.06 | |||||||||
| % | % | % | % | % | % | |||||||||
| Sterling: | ||||||||||||||
| Net asset value^ | -5.8 | -5.8 | -13.8 | -16.3 | -26.0 | 40.2 | ||||||||
| Share price | -2.9 | -0.9 | -14.2 | -16.0 | -27.7 | 37.1 | ||||||||
| MSCI EM Latin America | -6.4 | -3.9 | -12.9 | -18.8 | -26.2 | 51.6 | ||||||||
| US Dollars: | ||||||||||||||
| Net asset value^ | -6.5 | -7.0 | -21.6 | -16.9 | -22.1 | 23.5 | ||||||||
| Share price | -3.6 | -2.2 | -21.9 | -16.7 | -24.0 | 20.7 | ||||||||
| MSCI EM Latin America | -7.0 | -5.1 | -20.8 | -19.5 | -22.5 | 33.4 | ||||||||
| ^cum income ^^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: | 399.22p | |||||||||||||
| Net asset value - cum income: | 406.73p | |||||||||||||
| Share price: | 374.00p | |||||||||||||
| Total Assets#: | £161.0m | |||||||||||||
| Discount (share price to cum income NAV): | 8.0% | |||||||||||||
| Average discount* over the month - cum income: | 10.7% | |||||||||||||
| Net cash at month end**: | 2.3% | |||||||||||||
| Gearing range (as a % of net assets): | 0-25% | |||||||||||||
| Net yield##: | 5.2% | |||||||||||||
| Ordinary shares in issue***: | 39,369,620 | |||||||||||||
| Ongoing charges****: | 1.2% | |||||||||||||
| Total assets include current year revenue. ## calculated using total dividends declared in the last 12 months as at the date of this announcement as a percentage of month end share price. *The discount is calculated using the cum income NAV (expressed in sterling terms). **Net cash/net 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. **** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 31 December 2014. | ||||||||||||||
| Geographic Exposure | ||||||||||||||
| % of Total Assets | % of Equity Portfolio * | MSCI EM Latin American Index | ||||||||||||
| Brazil | 47.0 | 48.4 | 50.9 | |||||||||||
| Mexico | 37.5 | 38.5 | 32.1 | |||||||||||
| Peru | 7.2 | 7.4 | 2.9 | |||||||||||
| Chile | 3.1 | 3.2 | 9.8 | |||||||||||
| Colombia | 1.4 | 1.5 | 4.3 | |||||||||||
| United Kingdom | 1.0 | 1.0 | 0.0 | |||||||||||
| Net current assets (inc.Fixed interest) | 2.8 | 0.0 | 0.0 | |||||||||||
| ----- | ----- | ----- | ||||||||||||
| Total | 100.0 | 100.0 | 100.0 | |||||||||||
| ----- | ----- | ----- | ||||||||||||
| *excluding net current assets & fixed interest | ||||||||||||||
| Sector | % of Total Assets | % of Benchmark | ||||||||||||
| Materials | 14.9 | 13.9 | ||||||||||||
| Consumer Discretionary | 7.3 | 7.9 | ||||||||||||
| Consumer Staples | 21.1 | 20.2 | ||||||||||||
| Financials | 33.4 | 27.8 | ||||||||||||
| Health Care | 1.3 | 0.5 | ||||||||||||
| Industrials | 5.5 | 5.9 | ||||||||||||
| Information Technology | 1.9 | 2.3 | ||||||||||||
| Energy | 3.7 | 8.0 | ||||||||||||
| Telecommunication Services | 5.4 | 7.7 | ||||||||||||
| Utilities | 2.8 | 5.8 | ||||||||||||
| Fixed Income | 1.0 | 0.0 | ||||||||||||
| Net current assets | 1.7 | 0.0 | ||||||||||||
| ----- | ----- | |||||||||||||
| Total | 100.0 | 100.0 | ||||||||||||
| ----- | ----- | |||||||||||||
| Ten Largest Equity Investments (in percentage order) | ||||
Company | Country of Risk | % of Equity Portfolio | % of Benchmark | |
| Itau Unibanco | Brazil | 7.8 | 5.2 | |
| Banco Bradesco | Brazil | 6.0 | 5.0 | |
| AmBev | Brazil | 5.4 | 4.7 | |
| Cemex SAB | Mexico | 5.0 | 2.1 | |
| FEMSA | Mexico | 4.8 | 3.0 | |
| BB Seguridade | Brazil | 4.5 | 1.3 | |
| America Movil | Mexico | 4.1 | 6.1 | |
| Credicorp | Peru | 3.8 | 1.7 | |
| BRF | Brazil | 3.8 | 2.3 | |
| Grupo Televisa | Mexico | 3.7 | 3.4 | |
| Commenting on the markets, Will Landers, representing the Investment Manager noted; | ||||
| Performance | ||||
| For the month of May 2015, the Company's NAV fell by 5.8% and the share price fell by 2.9% while the benchmark, the MSCI EM Latin America Free Index, fell by 6.4%. (All performance figures are in sterling terms.) | ||||
| Positive contributions to the Company's performance relative to the index stemmed from our lower than benchmark exposure to, and stock selection in, Brazil. A lack of exposure to Vale and Petrobras, which both fell during the month, was the main positive contributor to performance. Despite rising iron ore prices, Vale suffered as a result of weak export data from China. Petrobras fell after shareholders approved the 2014 financial statements and the non-payment of dividends. Chile, where we have a lower exposure than the index, outperformed a falling market with President Bachelet's cabinet changes being a primary driver. At the stock level, Brazilian banks Itau Unibanco and Banco Bradesco detracted from performance. Both stocks were negatively impacted by the recent increase in taxes for financial institutions in Brazil. | ||||
| Transactions/Leverage | ||||
| During May we added to industrial stock Weg, which benefits from a weaker currency. We increased exposure to copper by initiating a position in Antofagasta. These moves were funded by reducing exposure to CBD due to 1Q15 results that were below our expectations and with higher cost pressures. We reduced Kroton Educacional as we expect the Brazilian education sector to remain under pressure as a result of recently announced budgetary constraints. Finally, we reduced Banco Bradesco in order to reduce exposure to banks given the higher likelihood of either a reduction in or elimination of IOC (Interest on Capital) tax deductibility. | ||||
| Net cash was approximately 2.3% at the end of May. | ||||
| Positioning | ||||
| The portfolio is positioned with overweight positions in Mexico and Peru and underweight positions in Brazil, Chile and Colombia. Mexico continues to show signs of improving domestic activity, with great expectations for the beginning of round one of energy auctions. Peru continues to be our favoured Andean market on the back of growing infrastructure investments. Brazil's equity market seems to be ahead of fundamentals - with tail risks gone, the focus should return to short-term fundamentals, where negative growth and high inflation are the biggest concerns. Chile continues to deal with a weak economy and low government approval ratings, while Colombia struggles with low oil prices and a potential derailment of the peace process with FARC. | ||||
| 18 June 2015 | ||||
| ENDS | ||||
| 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. | ||||
