BlackRock Latin American Investment Trust Plc - Portfolio Update
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^ -4.4 -3.4 14.7 28.6 10.4 Share price -3.8 -5.2 15.7 23.1 7.1 MSCI EM Latin America -2.6 -1.0 15.7 38.7 19.8 (Net Return)^^ US Dollars: Net asset value^ -5.3 -5.0 14.3 16.4 6.1 Share price -4.7 -6.8 15.2 11.3 3.0 MSCI EM Latin America -3.5 -2.7 15.2 25.4 15.1 (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: 440.51p Net asset value - including income: 441.68p Share price: 380.00p Total assets#: £138.9m Discount (share price to cum income NAV): 14.0% Average discount* over the month – cum income: 13.8%Net Gearing at month end**: 6.8% Gearing range (as a % of net assets): 0-25% Net yield##: 6.3% 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 6.3% 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 Q2 Interim dividend of
2023 Q3 Interim dividend of
2023 Q4 Interim dividend of
2024 Q1 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 58.8 58.7 58.6 Mexico 27.7 27.7 30.6 Chile 6.2 6.2 5.5 Colombia 2.4 2.4 1.3 Multi-Country 1.7 1.7 0.0 Panama 1.6 1.7 0.0 Argentina 1.6 1.6 0.0 Peru 0.0 0.0 4.0 Net current Liabilities (inc. 0.0 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 6.7% of the Company’s net asset value.
Sector % of Equity Portfolio* % of Benchmark* Financials 21.9 25.4 Consumer Staples 19.3 15.7 Materials 17.6 18.3 Industrials 12.4 10.5 Consumer Discretionary 11.4 1.9 Energy 8.6 14.3 Health Care 3.9 1.4 Real Estate 2.6 1.2 Information Technology 1.6 0.5 Communication Services 0.7 4.3 Utilites 0.0 6.5 ----- ----- Total 100.0 100.0 ===== =====
* excluding net current assets & fixed interest
Country of Risk % of % of Company Equity Portfolio Benchmark Vale – ADS Brazil 8.8 6.8 Petrobrás: Brazil Equity 2.2 Equity ADR 3.8 5.2 Preference Shares ADR 2.6 6.3 Walmart de México y Centroamérica Mexico 6.4 3.2 Banco Bradesco: Brazil Equity ADR 3.9 0.6 Preference Shares 1.9 2.3 Grupo Aeroportuario del Pacifico – Mexico 4.4 1.0 ADS AmBev: Equity Brazil 0.8 Equity ADR Brazil 3.4 1.8 B3 Brazil 4.1 1.9 Lojas Renner Brazil 3.5 0.5 Sociedad Química Y Minera – ADR Chile 3.2 1.1 Itaú Unibanco – ADR Brazil 3.2 4.8
Commenting on the markets,
The Company’s NAV fell by -4.4% in April, underperforming the benchmark, MSCI Emerging Markets Latin America Index, which returned -2.6% on a net basis over the same period. All performance figures are in sterling terms with dividends reinvested. 1
Emerging markets (+0.4%) significantly outperformed developed markets in April, which ended the month down -3.9%.
At the portfolio level, our exposure to precious metals stocks in both
From a security lens, Mexican silver miner, Mag Silver, was the largest contributor, for the second month in a row. In addition to strong 1Q24 production numbers, the company continues to benefit from the latest surge in silver prices. An overweight holding in
On the flipside, an overweight position in Brazilian footwear retailer,
We made some changes to the portfolio in April. In
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
We acknowledge the strengths of the data 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.