Fund Research

BlackRock Latin America

Last update 07 May 2019

BlackRock is a client of Kepler Trust Intelligence. Material produced by Kepler Trust Intelligence should be considered as factual information only and not an indication as to the desirability or appropriateness of investing in the security discussed.

Please see the important information by following this link or at the bottom of the page.

BlackRock Latin America (BRLA) invests in the stock markets of the developing countries that make up the Latin America region, aiming to generate high long-term total returns through a mixture of economic analysis and stock-picking.

The board have been highly active over the past year in an attempt to revivify the trust and create a more attractive product. Last year it committed to paying out 1.25% of NAV each quarter as a dividend, which would amount to a yield of 5% at a constant NAV, and 5.5% on the current share price. The dividend will be paid out of capital if necessary, so the managers will not have to change their total return focus. So far only three dividends have been paid under the new policy, which is the reason data providers currently show a current yield of 5.2%.

Following the resignation of the previous manager Will Landers, Ed Kuczma and Sam Vecht took responsibility for the trust on 24 December 2018. They have used a rally in the region to take profits in some positions and recycle into more attractively valued stocks. Ed and Sam plan “evolution, not revolution”, with the same house style of using macro-economic analysis to focus their attention on those countries whose economic fundamentals are improving but a renewed emphasis on stock-picking, with individual stocks expected to be more important to returns.

In the managers’ view, the region is looking extremely attractive as a long-term play, with currencies and valuations both depressed, yet economic fundamentals improving. The pro-market government of Brazil’s Jair Bolsanaro also gives reason for optimism about the course of markets.

Since the change of management, the discount has come in from above 17% to closer to 9%. This may be due to both the good performance in the region and the reputation of the new managers. Sam has been involved the success of BlackRock Frontiers over the past decade, which trust has frequently traded on a premium. The downside to the discount is limited by a tender offer due to be implemented in 2021 should the trust not outperform the index or if the discount remains wider than 12% on average.

Kepler Trust Intelligence provides research and information for professional and private investors. In order to ensure that we provide you with the right kind of content, and to ensure that the content we provide is compliant, you need to tell us what type of investor you are.

Read the full article

Related Funds

More Research

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please select a range
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
View an example
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase. We do not share your personal information and your answers are not linked to your identity for marketing purposes.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.