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