BlackRock Latin American Investment Trust - Revision history

103.126.60.198 at 14:50, 15 August 2022

2022-08-15T14:50:40Z

109.180.50.163 at 06:59, 12 August 2022

2022-08-12T06:59:39Z

Manos at 13:36, 1 August 2022

2022-08-01T13:36:10Z

← Older revision		Revision as of 14:36, 1 August 2022
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			[[File:Blackrock logo.png\|thumb\|200x200px]]
	BlackRock Latin American Investment Trust’s (BRLA) two experienced managers, Ed Kuczma and Sam Vecht, remain positive on the outlook for Latin American equities, with Kuczma commenting that the region is ‘under-owned, undervalued and unloved’. He says that the year-to-date stock market rally in Latin America is a good example of how quickly investor sentiment can change, especially given the global environment of rising interest rates. Kuczma points to the move from growth to value stocks, commenting that the region ‘has a ton of value’.		BlackRock Latin American Investment Trust’s (BRLA) two experienced managers, Ed Kuczma and Sam Vecht, remain positive on the outlook for Latin American equities, with Kuczma commenting that the region is ‘under-owned, undervalued and unloved’. He says that the year-to-date stock market rally in Latin America is a good example of how quickly investor sentiment can change, especially given the global environment of rising interest rates. Kuczma points to the move from growth to value stocks, commenting that the region ‘has a ton of value’.

>Louis at 16:56, 22 July 2022

2022-07-22T16:56:19Z

← Older revision		Revision as of 17:56, 22 July 2022
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	As a result, the board intends to make a tender offer; the structure will be decided by the board and a circular containing further details will be published in due course. It is anticipated that the requisite resolution to implement the tender offer will be put to shareholders for their approval at a general meeting, to be held immediately after the next AGM, which is provisionally scheduled for 19 May 2022. The tender offer will be conditional, among other things, on BRLA having the required shareholder approval and sufficient distributable reserves to repurchase tendered shares, and the trust’s continuation vote being approved at the AGM.		As a result, the board intends to make a tender offer; the structure will be decided by the board and a circular containing further details will be published in due course. It is anticipated that the requisite resolution to implement the tender offer will be put to shareholders for their approval at a general meeting, to be held immediately after the next AGM, which is provisionally scheduled for 19 May 2022. The tender offer will be conditional, among other things, on BRLA having the required shareholder approval and sufficient distributable reserves to repurchase tendered shares, and the trust’s continuation vote being approved at the AGM.
			[[Category:Thesis]]
			[[Category:Equities]]

>Ryan at 08:54, 6 June 2022

2022-06-06T08:54:01Z

← Older revision		Revision as of 09:54, 6 June 2022
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	[[File:NAV in line with the benchmark over 10 years to end-February 2022.png\|600px]]		[[File:NAV in line with the benchmark over 10 years to end-February 2022.png\|600px]]

	Source: Refinitiv, Edison Investment Research		Source: Refinitiv, Edison Investment Research.

	'''The analyst’s view'''		'''The analyst’s view'''

>Sarah: /* Performance: NAV just behind the index over 10 years */

2022-03-06T12:29:15Z

Performance: NAV just behind the index over 10 years

← Older revision		Revision as of 13:29, 6 March 2022
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	One of BRLA’s holdings that has performed well is Peruvian financial company Creditcorp. Its stock price was heavily discounted prior to the presidential election, and the position was initiated at a depressed valuation. The opposition party could block political reform in Peru, so Credicorp’s stock price re-rated and the company has benefited from higher interest rates. Copa Holdings has also done well. On the negative side, Notre Dame Intermedica Participacoes has been weak as there have been domestic redemptions in Brazil and the company’s medical loss ratio has risen. Business has shifted towards COVID-19 related activity at the expense of more profitable elective surgery; Kuczma believes that this is temporary and should resolve itself as the pandemic eases.		One of BRLA’s holdings that has performed well is Peruvian financial company Creditcorp. Its stock price was heavily discounted prior to the presidential election, and the position was initiated at a depressed valuation. The opposition party could block political reform in Peru, so Credicorp’s stock price re-rated and the company has benefited from higher interest rates. Copa Holdings has also done well. On the negative side, Notre Dame Intermedica Participacoes has been weak as there have been domestic redemptions in Brazil and the company’s medical loss ratio has risen. Business has shifted towards COVID-19 related activity at the expense of more profitable elective surgery; Kuczma believes that this is temporary and should resolve itself as the pandemic eases.

			{\| class="wikitable sortable"
			\|+ Exhibit 6: Share price and NAV total return performance, relative to index (%)
			\|-
			! !! One month !! Three months !! Six months !! One year !! Three years !! Five years !! 10 years
			\|-
			\| Price relative to MSCI EM Latin America \|\| 0.3 \|\| 1.4\|\| 3.1\|\| (5.5)\|\| 2.0\|\| 6.4\|\| 1.7
			\|-
			\| NAV relative to MSCI EM Latin America \|\| (1.1)\|\| 1.2 \|\| (2.4)\|\| (6.2)\|\| (6.2)\|\| (2.8) \| (0.8)
			\|}

			Source: Refinitiv, Edison Investment Research. Note: Data to end-February 2022. Geometric calculation.

	Looking at BRLA’s relative performance in Exhibit 6, its net asset value (NAV) is modestly behind the benchmark over the last decade, while its share price has outperformed over the last three, five and 10 years.		Looking at BRLA’s relative performance in Exhibit 6, its net asset value (NAV) is modestly behind the benchmark over the last decade, while its share price has outperformed over the last three, five and 10 years.

>Sarah: /* Performance: NAV just behind the index over 10 years */

2022-03-06T12:19:18Z

Performance: NAV just behind the index over 10 years

← Older revision		Revision as of 13:19, 6 March 2022
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	Price, NAV and benchmark total return performance (%)		Price, NAV and benchmark total return performance (%)

	[[~~File:~~File:Price, NAV and benchmark total return performance (%).png\|600px]]		[[File:Price, NAV and benchmark total return performance (%).png\|600px]]

	Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.		Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.

>Sarah: /* Performance: NAV just behind the index over 10 years */

2022-03-06T12:19:03Z

Performance: NAV just behind the index over 10 years

← Older revision		Revision as of 13:19, 6 March 2022
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	'''Price, NAV and benchmark total return performance, one-year rebased'''		'''Price, NAV and benchmark total return performance, one-year rebased'''

	[File:Price, NAV and benchmark total return performance, one-year rebased.png\|600px]		[[File:Price, NAV and benchmark total return performance, one-year rebased.png\|600px]]

	Price, NAV and benchmark total return performance (%)		Price, NAV and benchmark total return performance (%)

	[File:Price, NAV and benchmark total return performance (%)\|600px]		[[File:File:Price, NAV and benchmark total return performance (%).png\|600px]]

	Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.		Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.

>Sarah at 12:17, 6 March 2022

2022-03-06T12:17:45Z

← Older revision		Revision as of 13:17, 6 March 2022
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	In terms of sectors, over the 12 months to the end of January 2022, there was a notable 6.4pp increase in consumer staples (Exhibit 3, although at -4.7pp versus the index, this is the largest active weight in the fund). The biggest decreases were in the materials (-5.7pp) and consumer discretionary (-4.4pp) sectors, while the largest overweight exposure is financials (+3.7pp).		In terms of sectors, over the 12 months to the end of January 2022, there was a notable 6.4pp increase in consumer staples (Exhibit 3, although at -4.7pp versus the index, this is the largest active weight in the fund). The biggest decreases were in the materials (-5.7pp) and consumer discretionary (-4.4pp) sectors, while the largest overweight exposure is financials (+3.7pp).


	{\| class="wikitable sortable"		{\| class="wikitable sortable"
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	Source: Refinitiv. Note: All % on a total return basis in pounds sterling.		Source: Refinitiv. Note: All % on a total return basis in pounds sterling.

			'''Price, NAV and benchmark total return performance, one-year rebased'''

			[File:Price, NAV and benchmark total return performance, one-year rebased.png\|600px]

			Price, NAV and benchmark total return performance (%)

			[File:Price, NAV and benchmark total return performance (%)\|600px]

			Source: Refinitiv, Edison Investment Research. Note: Three-, five- and 10-year performance figures annualised.


	Discussing BRLA’s recent performance, Kuczma says that Q421, and December in particular, was ‘tough’; however, markets rebounded in January 2022. As an example, B3, one of the trust’s top 10 holdings, had a horrible December but a strong January as its stock had become oversold. The manager explains that from last July to the end of 2021 there were significant interest rate hikes in Latin America. During this time, the whole equity market, especially Brazil, performed very poorly. As a result, Kuczma says the region is very oversold and under-owned. However, in January 2022, foreign investors started to realise how attractively valued Latin American equities are, and that political risk is likely already priced in to stock prices.		Discussing BRLA’s recent performance, Kuczma says that Q421, and December in particular, was ‘tough’; however, markets rebounded in January 2022. As an example, B3, one of the trust’s top 10 holdings, had a horrible December but a strong January as its stock had become oversold. The manager explains that from last July to the end of 2021 there were significant interest rate hikes in Latin America. During this time, the whole equity market, especially Brazil, performed very poorly. As a result, Kuczma says the region is very oversold and under-owned. However, in January 2022, foreign investors started to realise how attractively valued Latin American equities are, and that political risk is likely already priced in to stock prices.

>Sarah: /* Performance: NAV just behind the index over 10 years */

2022-03-06T12:13:58Z

Performance: NAV just behind the index over 10 years

← Older revision		Revision as of 13:13, 6 March 2022
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	== Performance: NAV just behind the index over 10 years ==		== Performance: NAV just behind the index over 10 years ==

			{\| class="wikitable sortable"
			\|+ Exhibit 4: Five-year discrete performance data
			\|-
			! 12 months ending !! Share price (%) !! NAV (%) !! MSCI EM Latin America (%) !! CBOE UK All Companies (%) !! MSCI World (%)
			\|-
			\| 28/02/18\|\| 12.7\|\| 13.9\|\| 9.7 \|\| 4.4\|\| 6.6
			\|-
			\| 28/02/19 \|\| 0.1 \|\| (1.6) \|\| (1.4) \|\| 1.6\|\| 4.6
			\|-
			\| 29/02/20 \|\| (5.1) \|\| (7.6) \|\| (7.9)\|\| (2.1)\|\| 9.6
			\|-
			\| 28/02/21 \|\| (9.9)\|\| (14.2) \|\| (13.9)\|\| 2.8\|\| 18.8
			\|-
			\| 28/02/22 \|\| 13.1\|\| 12.2\|\| 19.6\|\| 16.7\|\| 15.9
			\|}

			Source: Refinitiv. Note: All % on a total return basis in pounds sterling.

	Discussing BRLA’s recent performance, Kuczma says that Q421, and December in particular, was ‘tough’; however, markets rebounded in January 2022. As an example, B3, one of the trust’s top 10 holdings, had a horrible December but a strong January as its stock had become oversold. The manager explains that from last July to the end of 2021 there were significant interest rate hikes in Latin America. During this time, the whole equity market, especially Brazil, performed very poorly. As a result, Kuczma says the region is very oversold and under-owned. However, in January 2022, foreign investors started to realise how attractively valued Latin American equities are, and that political risk is likely already priced in to stock prices.		Discussing BRLA’s recent performance, Kuczma says that Q421, and December in particular, was ‘tough’; however, markets rebounded in January 2022. As an example, B3, one of the trust’s top 10 holdings, had a horrible December but a strong January as its stock had become oversold. The manager explains that from last July to the end of 2021 there were significant interest rate hikes in Latin America. During this time, the whole equity market, especially Brazil, performed very poorly. As a result, Kuczma says the region is very oversold and under-owned. However, in January 2022, foreign investors started to realise how attractively valued Latin American equities are, and that political risk is likely already priced in to stock prices.