BlackRock Latin American Investment Trust Plc - Portfolio Update - Correction
Performance figures relating to the performance of developed markets and latin american markets has been adjusted slightly and defined as provided on a US Dollar basis. These changes affect the second paragraph of the portfolio manager's commentary only. All other information remain unchanged.
The information contained in this release was correct as at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
All information is at
Performance at month end with net income reinvested
One Three One Three Five month months year years years % % % % % Sterling: Net asset value^ -0.3 -0.8 18.9 43.1 13.5 Share price -2.9 0.7 14.2 35.9 16.4 MSCI EM Latin America 0.5 3.0 17.1 54.2 21.5 (Net Return)^^ US Dollars: Net asset value^ -0.9 -0.9 24.2 29.5 8.0 Share price -3.6 0.6 19.3 23.0 10.7 MSCI EM Latin America -0.2 2.9 22.4 39.5 15.5 (Net Return)^^
^cum income
^^The Company’s performance benchmark (the MSCI EM Latin America Index) may be calculated on either a Gross or a Net return basis. Net return (NR) indices calculate the reinvestment of dividends net of withholding taxes using the tax rates applicable to non-resident institutional investors, and hence give a lower total return than indices where calculations are on a Gross basis (which assumes that no withholding tax is suffered). As the Company is subject to withholding tax rates for the majority of countries in which it invests, the NR basis is felt to be the most accurate, appropriate, consistent and fair comparison for the Company.
Sources: BlackRock, Standard & Poor’s Micropal
At month end
Net asset value - capital only: 457.87p Net asset value - including income: 461.79p Share price: 395.00p Total assets#: £142.7m Discount (share price to cum income NAV): 14.5% Average discount* over the month – cum income: 12.5%Net Gearing at month end**: 5.8% Gearing range (as a % of net assets): 0-25% Net yield##: 5.8% Ordinary shares in issue(excluding 2,181,662 shares held in 29,448,641 treasury): Ongoing charges***: 1.13%
#Total assets include current year revenue.
##The yield of 5.8% is calculated based on total dividends declared in the last 12 months as at the date of this announcement as set out below (totalling
2023 Q1 Interim dividend of
2023 Q2 Interim dividend of
2023 Q3 Interim dividend of
2024 Q4 Interim dividend of
*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.
*** The Company’s ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for the year ended
Geographic Exposure % of Total Assets % of Equity MSCI EM Latin America Portfolio * Index Brazil 60.0 59.5 60.8 Mexico 27.0 26.7 29.2 Chile 5.6 5.5 5.4 Argentina 2.6 2.6 0.0 Colombia 2.5 2.5 1.2 Panama 1.6 1.6 0.0 Multi-Country 1.6 1.6 0.0 Peru 0.0 0.0 3.4 Net current Liabilities (inc. -0.9 0.0 0.0 fixed interest) ----- ----- ----- Total 100.0 100.0 100.0 ===== ===== =====
^Total assets for the purposes of these calculations exclude bank overdrafts, and the net current assets figure shown in the table above therefore excludes bank overdrafts equivalent to 4.9% of the Company’s net asset value.
Sector % of Equity Portfolio* % of Benchmark* Financials 22.6 26.3 Consumer Staples 18.2 16.0 Materials 16.3 17.2 Industrials 11.7 10.2 Consumer Discretionary 10.9 2.0 Energy 10.3 13.8 Health Care 3.8 1.4 Real Estate 2.6 1.3 Communication Services 2.1 4.2 Information Technology 1.5 0.5 Utilites 0.0 7.1 ----- ----- Total 100.0 100.0 ===== =====
* excluding net current assets & fixed interest
Country of Risk % of % of Company Equity Portfolio Benchmark Petrobrás: Brazil Equity 2.2 Equity ADR 3.5 4.9 Preference Shares ADR 3.5 6.1 Vale – ADS Brazil 8.9 7.2 Walmart de México y Centroamérica Mexico 5.9 3.3 Banco Bradesco: Brazil Equity ADR 3.8 0.6 Preference Shares 1.9 2.3 B3 Brazil 4.1 2.4 AmBev: Equity Brazil 0.8 Equity ADR Brazil 3.1 1.9 FEMSA - ADR Mexico 3.6 3.8 Grupo Aeroportuario del Pacifico – Mexico 3.6 0.9 ADS Itaú Unibanco – ADR Brazil 3.4 5.2 Grupo Financiero Banorte Mexico 3.4 4.2
Commenting on the markets,
The Company’s NAV fell -0.3% in February, underperforming the benchmark, MSCI EM Latin America Index, which returned 0.5% on a net basis over the same period. All performance figures are in sterling terms with dividends reinvested. 1
Emerging markets more broadly almost fully recovered from January weakness, gaining +4.8% in February and broke their four-month streak to marginally outperform developed markets (+4.2%) by +0.6%. Latin American markets lagged the rest of emerging markets, finishing the month flat (-0.2%).
At the portfolio level, our overweight and stock selection within the Consumer Staples space in
From a security lens, Chilean lithium producer, SQM, was the largest contributor over the month, reversing some of the January losses. Alpargatas, a Brazilian footwear manufacturer, was another strong performer after 4Q23 results indicate that their inventories continue to improve. An overweight position in Becle, a Mexican producer and supplier of alcoholic beverages most famously known for their high-end tequila brand
On the flipside, Banco Bradesco was the worst performing stock over the month. The stock sold off after an earnings miss amid high credit costs, and weaker 2024 guidance. While it has taken longer than expected, we continue to believe they will benefit from falling rates in
We made few changes to the portfolio in February. We continued to reduce our exposure to Mexican convenience store operator FEMSA, as our investment case has largely played out and as we see margin pressure at their core convenience store Oxxo. We traded against relative performance by trimming our exposure to Brazilian bank
Outlook
We remain optimistic about the outlook for
We remain positive on the outlook for the Mexican economy as it is a key beneficiary of the friend-shoring of global supply chains.
We continue to closely monitor the political and economic situation in
1
Source: BlackRock, as of
ENDS
Latest information is available by typing www.blackrock.com/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.