BRLA September 202111 Sep 2021 14:27
NAV growth (1 year to Sep 2021) 17.2%
Last NAV £4.06
Discount to NAV 10.2%
Yield 5.7% (Dividend 1.25% of NAV per quarter)
Analysis from Kepler Positive: "given the low valuations in the regions and the tailwinds towards commodities, we believe could offer a potentially attractive entry point"
https://markets.ft.com/data/announce/detail?dockey=1323-14925587-5G24RUCT0QGRSOMJQ94KIIOQB8
BRLA has a discount control mechanism. This includes a tender offer to buy a quarter of the shares in 2022 at close to net asset value if: 1) the trust underperforms the benchmark index by more than 1 per cent per annum over the four financial years to 31 December 2021 or 2) the discount has on average exceeded 12 per cent over the same four years. This mechanism should help to put a floor under the discount in the near term.
Bull Case: Reflation and rising commodity prices make the bull case for Latin America
Bear Case: Political risk is significant with fiercely contested elections