BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 December 2015 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^ -2.8 -0.8 -26.9 -40.0 -53.9 10.6
Share price -5.2 2.2 -26.6 -39.3 -55.7 4.9
MSCI EM Latin America -2.2 0.1 -26.8 -41.7 -50.6 17.0
US Dollars:
Net asset value^ -4.9 -3.5 -30.9 -45.5 -56.5 -5.9
Share price -7.2 -0.5 -30.6 -44.9 -58.3 -10.8
MSCI EM Latin America -4.2 -2.6 -30.8 -47.1 -53.5 -0.6
^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: 305.71p
Net asset value - cum income: 311.61p
Share price: 277.00p
Total Assets#: £122.7m
Discount (share price to cum income NAV): 11.1%
Average discount* over the month - cum income: 12.4%
Net cash at month end**: 2.7%
Gearing range (as a % of net assets): 0-25%
Net yield##: 7.2%
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 % of Equity MSCI EM Latin American
Assets Portfolio* Index
Brazil 44.2 45.4 46.1
Mexico 41.5 42.6 37.6
Peru 5.8 6.0 2.8
Chile 2.9 3.0 10.0
Argentina 1.5 1.6 0.0
Colombia 1.4 1.4 3.5
Net current assets 2.7 0.0 0.0
(inc.Fixed interest)
----- ----- -----
Total 100.0 100.0 100.0
----- ----- -----
*excluding net current assets & fixed interest
Sector % of Total Assets % of Benchmark
Materials 13.3 12.8
Consumer Discretionary 5.1 7.1
Consumer Staples 24.5 23.4
Financials 31.6 28.1
Health Care 0.4 0.3
Industrials 6.9 7.3
Information Technology 2.2 2.2
Energy 4.7 6.1
Telecommunication 5.7 6.9
Services
Utilities 2.9 5.8
Fixed Income 1.1 0.0
Net current assets 1.6 0.0
----- -----
Total 100.0 100.0
----- -----
Ten Largest Equity Investments (in percentage order)
% of % of
Company Country of Equity Portfolio Benchmark
Risk
Femsa Mexico 6.7 4.2
Itau Unibanco Brazil 6.1 4.9
AmBev Brazil 5.6 5.2
Grupo Financiero Banorte Mexico 5.2 3.4
Walmart de Mexico Mexico 4.4 3.2
Cemex SAB Mexico 4.0 1.8
Banco Bradesco Brazil 4.0 4.1
BB Seguridade Participacoes Brazil 3.7 1.1
America Movil Mexico 3.6 5.4
BRF Brazil 3.4 2.2
Commenting on the markets, Will Landers, representing the Investment
Manager noted;
Performance
For the month of December 2015, the Company's NAV fell by 2.8% and the share
price fell by 5.2% (all in sterling terms) while the Company's benchmark, the
MSCI EM Latin America Free Index, fell by 2.2%.
Stock selection in Mexico contributed positively to returns. Mexican bank
Banorte was one of the largest contributors to performance as the stock
benefited from growing strength in the domestic economy, leading to a gradual
pick-up in lending activity.
Our below index weighting in Chile was the primary detractor from performance
as Chile remains one of the best relative performers in the region. At the
stock level, the largest detractor from performance was Brazilian bank Itau
Unibanco, which suffered from ongoing political and economic turmoil and their
potential impact on economic activity in 2016.
Transactions/Gearing
During the month we increased exposure to Itau Unibanco, Banco Bradesco and
Petrobras as we looked to protect the portfolio from potential political
changes due to the opening of the impeachment process in Brazil. This move was
partially funded by taking profits in Banorte after strong recent performance.
In addition, we exited Qualicorp given continued weakness in its client base.
Net cash was approximately 2.7% at the end of December.
Positioning
We enter 2016 maintaining a defensive portfolio. Brazil's economy continues to
offer more questions than answers regarding timing for a recovery, improvement
in fiscal accounts, inflation returning to target and interest rates eventually
falling. In addition, the political landscape in Brazil continues to generate
uncertainties. As a result, activity is weak in the consumer, investment
(public and private) and manufacturing sectors. Mexico continues to show signs
of a gradual economic improvement, but falling oil prices and slowing US
manufacturing are potential headwinds. The Andean region is also adjusting to
falling commodity prices. However, a potential positive outcome in the
Peruvian presidential elections could be a potential positive catalyst in the
first half of 2016. Non-benchmark Argentina saw a positive beginning of the
Macri presidency in December and is a potential outlier should reforms
continue.
15 January 2016
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.
BlackRock Latin American Inv Tst : INVESTMENT TRUST PLC - Portfolio Update
January 15, 2016 at 07:44 pm IST
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© PRNewswire - 2016
