Edison reviews BlackRock Latin American IT (BRLA)

RNS Number : 9269U

BlackRock Latin American Inv Tst

17 July 2018

 

London, UK, 17 July 2018

Edison issues review on BlackRock Latin American IT (BRLA)

BlackRock Latin American Investment Trust (BRLA) is managed by Will Landers, who says that investor attitudes towards Latin American equities have changed. 2017 was a period of confidence in the region's prospects, but now there is more scepticism about the growth outlook. However, the manager remains optimistic about potential returns from Latin American equities. In the key Brazilian economy, he cites higher domestic demand and a favourable interest rate environment, with the benchmark interest rate having more than halved to a record low level. BRLA has recently announced new dividend and discount management policies, which may lead to a narrowing in its discount over time. Dividends will now be paid four times a year, equivalent to 1.25% of the dollar-based, quarter-end NAV. As a result, the trust now offers an attractive prospective yield.

BRLA's current 13.4% share price discount to cum-income NAV is at the wider end of the range of discounts (8.0% to 17.0%) over the last 12 months. It compares with the historical averages over the last one, three, five and 10 years of 13.4%, 13.2%, 12.1% and 8.3% respectively. The trust's revised dividend policy, whereby distributions may be funded from reserves as well as income, means that BRLA now offers an attractive prospective yield of c 4.0%, rising to c 5.5% from FY19. 

Click here to view the full report.

All reports published by Edison are available to download free of charge from its website

www.edisoninvestmentresearch.com

About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Mel Jenner, [phone]

Sarah Godfrey, [phone]

[e-mail]

Learn more at www.edisongroup.com and connect with Edison on: 

LinkedIn        https://www.linkedin.com/company/edison-investment-research 

Twitter           www.twitter.com/Edison_Inv_Res 

YouTube       www.youtube.com/edisonitv 

 

END

 

 

NRAKMGMNFNMGRZM