Income payouts raise Latin America profile

BlackRock Latin American Trust targets long-term growth and total returns primarily through investing in quoted securities in Latin America

BlackRock Latin American Trust (BRLA) targets long-term growth and total returns primarily through investing in quoted securities in Latin America. Its report for the year to 31 December 2018 shows shareholders’ funds of $255 million (£204 milllion).

Will Landers, who had managed BRLA since March 2006, left BlackRock in December 2018. Sam Vecht and Ed Kuczma succeeded him as co-managers.

The managers aim for a concentrated portfolio of high-conviction ideas, using a combination of top-down macro analysis and bottom-up research, with on-the-ground assistance from a team of experienced research analysts. They pay close attention to the four Cs: commodities, currency, consumption and credit. At end-2018 the portfolio comprised 56 investments and had a substantial weighting to Brazil at 73%. Gearing was 8.9%.

In US dollar terms, net asset value (NAV) and share price total returns in 2018 were -5.4% and -6.9% respectively compared to the 6.6% fall in BRLA’s benchmark, the MSCI EM Latin America index. In sterling terms, the NAV and share price total returns were 0.6% and -1%, while the index was down 0.8%. Revenue profit per ordinary share was up by 16.1% at 15.13 cents.

From July 2018, BRLA has committed to paying quarterly dividends equal to 1.25% of US dollar NAV per share, financed partly from capital. This resulted in three dividends being paid for 2018 totalling 23.55 US cents. Ongoing charges stand at 1.03%.


BlackRock Latin American Trust

BlackRock Latin American Trust performance graph


Subscribe to Money Observer Magazine

Be the first to receive expert investment news and analysis of shares, funds, regions and strategies we expect to deliver top returns, plus free access to the digital issues on your desktop or via the Money Observer App.

Subscribe now

Add new comment