BlackRock Latin American IT
Recent visit reinforces positive regional outlook
31 July 2024
BlackRock Latin American Investment Trust’s (BRLA’s) managers Sam Vecht (lead) and Christoph Brinkmann (deputy) remain upbeat about the prospects for the trust and the region, even though FY23 was a year when the MSCI Emerging Markets Index surpassed the performance of most other global indices and BRLA’s results were even better. Latin American central banks have been proactive in raising interest rates to combat inflation and are now lowering rates, which should support both economic activity and asset prices. The region has distanced itself from rising geopolitical conflicts across the globe, a stance that the managers believe will attract both foreign direct investment and increasing interest from regional investors. MORE »
Managers optimistic about the region’s prospects
27 April 2021
BlackRock Latin American Investment Trust (BRLA) has become a more concentrated fund since the appointment of Sam Vecht and Ed Kuczma in late December 2018. Although Latin America has more recently been negatively affected by COVID-19, the managers are positive on the region’s prospects. They suggest that it is ‘under-owned, under-researched and undervalued’ and will benefit from an improvement in the domestic and global economy. In recent months Vecht and Kuczma have identified several new investment opportunities across a range of industries, and while stocks are selected on a bottom-up basis there are a series of themes represented in the portfolio such as structural growth stocks. MORE »
Finding opportunities across the region
12 October 2020
BlackRock Latin American Investment Trust (BRLA) is managed by Sam Vecht and Ed Kuczma. Since their appointment in late December 2018, they have concentrated the portfolio and employed gearing more tactically. While mindful of the risks surrounding the global pandemic, the managers are cautiously optimistic on the outlook for Latin America, expecting a sharp improvement in Brazilian economic growth in 2021 helped by robust Chinese demand for commodities. US dollar weakness has also historically been very supportive for equities in the region. Although Latin American earnings estimates have been under significant pressure due to COVID-19, the managers anticipate a sharp rebound in coming quarters. MORE »
Celebrating its 30-year anniversary
26 February 2020
BlackRock Latin American Investment Trust (BRLA) has been managed by Sam Vecht and Ed Kuczma since late December 2018. They have created a more concentrated portfolio comprising their highest-conviction ideas in the region. The managers are employing gearing in a more tactical way, which they report has proved successful in both up and down markets, and they have been more active in adding to and trimming positions when deemed appropriate. As a result of the changes made, BRLA now has higher stock-specific risk, but lower country and sector risk. The managers say the success of the strategy was evidenced in the trust’s strong relative performance in Q419. They are constructive on the prospects for Latin America in 2020 based on an expectation of higher economic growth, low interest rates and the potential for a weaker US dollar. MORE »
Optimistic outlook for Latin American equities
15 February 2018
BlackRock Latin American Investment Trust (BRLA) is managed by Will Landers, who has 26 years of experience at BlackRock. He is optimistic on the outlook for Latin American equities in 2018, due to relatively attractive company valuations and improving economies in the region, especially in Brazil, where he describes the recovery as “slow and sure”. He says that in 2017, emerging market equity performance was led by Asian companies and there is potential for Latin American companies to catch up if investors have confidence in the improving economic outlook. After a recent improvement in investment performance, BRLA’s NAV total return is now outperforming the benchmark over one, three and five years. MORE »
Optimistic outlook for Latin American equities
15 February 2018
BlackRock Latin American Investment Trust (BRLA) is managed by Will Landers, who has 26 years of experience at BlackRock. He is optimistic on the outlook for Latin American equities in 2018, due to relatively attractive company valuations and improving economies in the region, especially in Brazil, where he describes the recovery as “slow and sure”. He says that in 2017, emerging market equity performance was led by Asian companies and there is potential for Latin American companies to catch up if investors have confidence in the improving economic outlook. After a recent improvement in investment performance, BRLA’s NAV total return is now outperforming the benchmark over one, three and five years. MORE »
Economic progress in Brazil
31 July 2017
BlackRock Latin American Investment Trust (BRLA) is a well-established fund offering exposure to Latin America via a diversified equity portfolio. Manager William Landers aims to generate an attractive total return from a portfolio of 50-75 holdings invested across the capitalisation spectrum. He notes that despite negative political headlines in Brazil (the largest economy in the region), there is economic progress helped by falling interest rates and an inflation rate that is lower than the Central Bank of Brazil’s target. Landers is positive on Brazil’s political agenda and believes that the recent passing of the labour reform bill suggests that there is a broad appetite for reform, less conditional on President Temer than may have been thought. The manager is positive on the outlook for Latin American equities, while acknowledging that there will be “bumps along the way”. BRLA’s current dividend yield is 2.7%. MORE »
The beginning of a sustained bull market?
16 January 2017
BlackRock Latin American Investment Trust (BRLA) is a long-established fund investing in Latin American equities. Manager Will Landers runs a 50-75 stock portfolio with daily input from a dedicated Latin America team. BRLA aims to generate an attractive total return, superior to that of its benchmark, the MSCI Emerging Markets Latin America Index. The fund is overweight Brazil, which surged when impeachment proceedings were brought against former president Dilma Rousseff, and underweight Mexico, where sentiment soured following the surprise Trump victory. MORE »
Brighter outlook for LatAm's largest economy
27 May 2016
BlackRock Latin American Investment Trust (BRLA) is a long-established, actively managed fund investing in Latin American equities. Manager William Landers runs a 50-75 stock portfolio that is diversified by country, sector and market capitalisation. BRLA aims to generate an attractive capital and total return, outperforming its benchmark, the MSCI Emerging Markets Latin American Index. Brazil represents more than half of the benchmark weighting and the manager has moved to an overweight exposure to the country following recent political developments. In anticipation of political and market reforms, his outlook for the region is more favourable than it has been for some time. MORE »
Navigating difficult markets
3 November 2015
The BlackRock Latin American Investment Trust (BRLA) provides investors with managed exposure to equities in the region, with the main country weightings being Brazil and Mexico (c 87% together). Over the last year, concerns over weakening global growth and US monetary policy have affected Latin American currencies and equities. The manager is cautious on Brazil but sees better near-term economic prospects for Mexico and Peru, where the portfolio holds overweight positions. With much of the bad news potentially built into market prices, sentiment could rapidly turn and in the meantime, holders of BRLA benefit from a 6.7% yield. MORE »
Long-established, diversified regional specialist
26 March 2015
The BlackRock Latin American Investment Trust (BRLA) invests in Latin American equities, aiming to provide attractive total returns over time from a diversified portfolio of stocks, with a bias towards Brazil and Mexico (together c 85%). After a rough ride for the Brazilian market the trust is positioned cautiously versus the index, preferring the better near-term economic prospects of Mexico and Peru. However, with a number of large, liquid companies in the region, the manager is able to rebalance the portfolio swiftly should Brazil begin to turn a corner. Option-writing income enhances the yield, currently 5.3%, and the shares have recently traded at their widest discount in five years, suggesting the potential to re-rate. MORE »
Recovery potential despite commodity slowdown
21 August 2014
The BlackRock Latin American Investment Trust (BRLA) is a regional specialist offering diversified exposure to companies in Central and South America, with a significant weighting to Brazil and Mexico (c 90%). Although a stock-picking fund with a focus on valuation, BRLA’s manager acknowledges the importance of macroeconomic factors: the Brazilian election is a key swing factor in the near term, and the resource-rich region also faces an adjustment as slower growth in China dents demand for commodities. The trust currently yields an attractive 3.8%, boosted by writing covered call options on some holdings. LatAm markets have re-rated since the start of 2014 and BRLA’s wider-than-average discount may present an attractive entry point for those who feel this will continue. MORE »
