BlackRock LatAm trust posts strong returns but lags index

BlackRock Latin American Investment Trust has reported strong returns for key markets in the first six months of 2016.

Over this period the company’s net asset value increased by 35.6% in sterling terms and by 23% in US dollar terms. The share price has increased by 31.6% in sterling terms and by 19.3% in US dollar terms. The MSCI EM Latin America Index ended the period up by 25.7% in US dollar terms (38.6% in sterling terms)

“The portfolio currently has overweight positions in Peru, Mexico and Brazil and underweight positions in Chile and Colombia. We continue with our more constructive view on Latin America developed over the past few months but we enter the second half of 2016 with a positive view on Brazil and concerns regarding Mexico,” said Will Landers, investment manager of BlackRock Latin American Trust.

“Off-benchmark Argentina also continues with its gradual normalisation program. We continue to monitor Argentina’s political climate and reform process as we look for potential catalysts for further investments. Inflation is trending downwards from the current high levels; a continuation of this trend is key for this economy to do well going forward. Finally, there is the potential for Argentina to be considered by MSCI for inclusion in Emerging Markets indices within the next year,” Landers said.

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