Team Internet Group — Diversity delivering resilience

Team Internet Group (AIM: TIG)

Last close As at 02/03/2024

GBP1.35

0.60 (0.45%)

Market capitalisation

GBP350m

More on this equity

Research: TMT

Team Internet Group — Diversity delivering resilience

Team Internet’s results for the nine months to 30 September 2023 (9M23) showed good, continued progress, with revenue, adjusted EBITDA and adjusted EPS growing 16%, 11% and 28% y-o-y. Online Presence continued its return to form, with 20% growth over the period. While the weak advertising market and a strong comparative period was reflected in a moderation in growth in Online Marketing (15%), this still implies outperformance of the overall market. Management expects full year results to be at least in line with consensus. We make no material changes to our P&L estimates and continue to see scope for upside. We have increased our year end net debt forecast (previously below consensus) to reflect higher capital investment in content and software development, acquisition costs and working capital than previously modelled. In our view, the company’s value P/E rating of 7.1x FY23 dropping to 6.1x in FY24 is in stark contrast the company’s growth track record and prospects.

Written by

Dan Ridsdale

Head of Technology

business-man-handshake-with-effect-global-world-map-network-link-connection-graph-chart-stock-market-graphic-diagram

TMT

Team Internet Group

Diversity delivering resilience

Q323 results

Software and comp services

13 November 2023

Price

127p

Market cap

£342m

US$1.22/£

Net debt at 30 September 2023

$81.7m

Shares in issue

269.3m

Free float

45.6%

Code

TIG

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

1.3

(5.3)

(5.6)

Rel (local)

4.5

(1.6)

(4.2)

52-week high/low

159p

109p

Business description

Team Internet Group is a global internet company that derives recurring revenue from privacy-safe, AI-based customer journeys that help online consumers make informed choices, as well as from the distribution of domain names.

Next events

Edison roadshow

22 November

Deutsche Eigenkapitalforum

27–29 November

Analyst

Dan Ridsdale

+44 (0)20 3077 5700

Team Internet Group is a research client of Edison Investment Research Limited

Team Internet’s results for the nine months to 30 September 2023 (9M23) showed good, continued progress, with revenue, adjusted EBITDA and adjusted EPS growing 16%, 11% and 28% y-o-y. Online Presence continued its return to form, with 20% growth over the period. While the weak advertising market and a strong comparative period was reflected in a moderation in growth in Online Marketing (15%), this still implies outperformance of the overall market. Management expects full year results to be at least in line with consensus. We make no material changes to our P&L estimates and continue to see scope for upside. We have increased our year end net debt forecast (previously below consensus) to reflect higher capital investment in content and software development, acquisition costs and working capital than previously modelled. In our view, the company’s value P/E rating of 7.1x FY23 dropping to 6.1x in FY24 is in stark contrast the company’s growth track record and prospects.

Year end

Revenue* (US$m)

Adj EBITDA*
(US$m)

PBT* (US$m)

EPS**
(c)

EV/EBITDA
(x)

P/E
(x)

12/21

410.5

46.3

31.9

10.9

10.4

13.9

12/22

728.2

86.0

64.3

21.4

5.6

7.1

12/23e

833.7

94.4

80.1

21.4

5.1

7.1

12/24e

909.6

103.0

89.3

24.7

4.7

6.1

Note: *Excludes impact of share-based payments, foreign exchange charges and non-core operating costs.

Double-digit growth in both segments

9M23 revenues in Online Presence grew 20% y-o-y to $114.1m, driven by a number of factors, including demand for ‘exotic’ top-level domains (TLDs), value-added service upsell, strategic partnerships and pricing optimisation. With a strengthened management team, progress with the UK government and ICANN’s proposed release of new generic TLDs in 2026, we see continued good growth opportunities. Online marketing revenues grew by 15% to $475m for 9M23. Q3 revenues were up 10% to $170m but gross profit down a touch year-on-year at $33m (vs $34m), reflecting the fact that Q322 was a particularly strong trading period across Search, Comparison and Performance and the weak advertising market backdrop. Net debt increased from $68.2m at H1 to $81.7m, reflecting the company’s purchase of $16.3m worth of shares, working capital outflows and 95% operating cash flow to EBITDA conversion. Management expects this to normalise closer to 100% in Q4.

Valuation: Resilience, growth prospects not priced in

Given the weak advertising market and strong comparative period, these are creditable results. We make no material changes to our P&L estimates. Entering the peak Q4 period, we see good scope for upside this year and our FY24 forecast, which calls for 9% revenue growth, look prudent. Our year end net debt estimate increases from US$59m (which was below consensus) to US$80.9m, reflecting the accelerated share buyback plus higher capex, acquisition costs and working capital outflows than modelled. We see this as a one-off adjustment and expect the business model to continue to generate healthy cash flows. In our view, the company’s value P/E rating of 7.1x FY23 dropping to 6.1x in FY24 is in stark contrast the company’s growth track record and prospects.

Divisional review

Online Presence continues its return to form

Revenues in Online Presence grew 20% y-o-y to $114.1m for 9M23. Organic growth for the trailing 12 months (TTM) was 17%, an acceleration from 15% at the interims and the company’s highest organic growth rate since establishment. Q3 revenues grew 21% y-o-y to $45m.

This acceleration is being driven by a number of factors, including:

demand for ‘exotic’ TLDs – the number of processed domain registration years increased by 11% y-o-y to 14.1m for TTM.

Pricing optimisation, with a particular focus on aligning prices to the mid-point of the market. Average revenue per domain year increased by 8% from $10.03 to $10.81.

The impact of strategic partnerships, such as the partnership with WHMCS (a leading web hosting automation provider), which was announced in February 2023. More recently the company has announced a partnership with Titan, a business email service provider, which should help drive value-added services sales. (The share of value-added service revenue was 11.2% over the TTM period.)

Looking to 2024, the company’s progress with the UK government could provide additional scope for growth. Team Internet’s Registry business has been selected as one of two suppliers of critical domain services to the UK government’s Crown Commercial Service’s Network Services 3 framework. Further out, ICANN’s proposed release of new generic TLDs in 2026 will provide further growth opportunities.

The group has also recently hired a new divisional CEO for Online Presence, Simon McCalla, to strengthen its Online Presence operations. Mr McCalla brings with him experience from both domain related businesses (he was CTO at Nominet for six years to September 2019) as well as experience from CEO roles with Elexon and Sedex (both privately held platform businesses).

Online Marketing: Continued double-digit growth

The performance of Online Marketing is set upon a backdrop of a weak advertising market and an exceptionally strong comparative period in Q322, where all three key business units –Tonic, Parking Crew and Vergleich – performed strongly. This is also a quarter where much of the focus is on lining up campaigns for the peak trading period in Q4 with Black Friday and Christmas. Revenues for 9M23 grew by 15% while TTM organic revenue growth was 20%. Q3 revenues were up 10% to $170m but gross profit was down a touch year-on-year at $33m.

Volumes increased significantly, with the number of visitor sessions up 36% to 5.6bn for the 12 months to September, offset by a 7% decrease in RPM (revenue per 1,000 sessions), reflecting the weak spending environment. This may indicate the potential for a good uptick in growth as the spend environment improves.

The division also continues to strengthen and diversify its partner base. ZeroPark signed three strategic partnerships: with Sovrn, a publisher technology platform, where ZeroPark has become a tier one partner, with booking.com and with Klarna. Voluum (Team Internet’s ad tracker) has launched an integration with Shopify, allowing customers to directly feed conversion data from their Shopify stores into Voluum, bolstering their ad, product and page performance.

Estimate changes

Our P&L estimates are essentially unchanged with a marginal (1.4%) upgrade to FY23 adjusted EPS to reflect progress on the share buyback. Management has stated that it expects 2023 estimates to be ‘at least’ in line with consensus estimates and robust trading in Q4 could drive upside. For FY24, we believe that our 9% growth estimate is prudent, given the company’s broadening span of strategic partners.

We have increased our year end net debt figure from US$59m to US$80.9m, reflecting the accelerated share buyback plus higher capex, acquisition costs and working capital outflows than modelled. We see this as a one-off adjustment and expect the business model to continue to generate healthy cash flows.

Exhibit 1: Estimate changes

Year end 31 December, US$'000

Old

New

Change

Y-o-y

Old

New

Change

Y-o-y

2023e

2023e

growth

2024e

2024e

growth

Gross revenue

833,705

833,705

-

14%

909,572

909,572

-

9%

Net revenue

190,585

190,585

-

7%

208,116

208,116

-

9%

Adj. EBITDA

94,416

94,416

-

10%

103,017

103,017

-

9%

Profit Before Tax (norm)

80,720

80,087

(0.8)%

25%

89,302

89,298

(0.0)%

12%

Profit Before Tax (reported)

38,623

34,090

(11.7)%

130%

47,205

47,201

(0.0)%

38%

Net income (normalised)

58,118

57,663

(0.8)%

0%

64,297

64,295

(0.0)%

12%

Basic average number of shares outstanding (m)

273

267

257

257

EPS - basic normalised (c)

21.29

21.58

(0.8)%

(2)%

25.00

25.00

(0.0)%

18%

EPS - diluted normalised (c)

21.09

21.37

(0.8)%

(2)%

24.75

24.75

(0.0)%

18%

Revenue growth (%)

14.5

14.5

9.1

9.1

Gross Margin (%)

22.9

22.9

22.9

22.9

Adjusted EBITDA margin (%)

11.3

11.3

11.3

11.3

Adjusted EBITDA/net revenue (%)

49.5

49.5

49.5

49.5

Change in Working capital

4,299

(7,054)

2,222

863

Capex

(5,667)

(10,300)

(5,819)

(7,819)

Acquisitions

(18,600)

(23,500)

(10,000)

(10,000)

Share repurchase/issue

(46,273)

(46,273)

-

-

Closing net debt/(cash)

58,968

80,867

8,914

35,110

Source: Edison Investment Research

Exhibit 2: Financial summary

$'k

2020

2021

2022

2023e

2024e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

240,012

410,540

728,237

833,705

909,572

Cost of Sales

(164,894)

(292,041)

(550,541)

(643,120)

(701,456)

Gross Profit

75,118

118,499

177,696

190,585

208,116

EBITDA

29,394

46,251

86,024

94,416

103,017

Normalised operating profit

27,310

42,737

83,045

90,206

99,115

Amortisation of acquired intangibles

(13,747)

(18,291)

(36,399)

(36,399)

(36,399)

Exceptionals

(10,529)

(7,087)

(7,395)

(3,900)

0

Share-based payments

(5,113)

(5,006)

(5,698)

(5,698)

(5,698)

Reported operating profit

(2,079)

12,353

33,553

44,209

57,018

Net Interest

(9,834)

(10,798)

(18,736)

(10,120)

(9,817)

Joint ventures & associates (post tax)

79

0

0

0

0

Exceptionals

0

0

0

0

0

Profit Before Tax (norm)

17,555

31,939

64,309

80,087

89,298

Profit Before Tax (reported)

(11,834)

1,555

14,817

34,090

47,201

Reported tax

975

(5,097)

(16,895)

(24,827)

(27,682)

Profit After Tax (norm)

14,044

25,551

57,414

57,663

64,295

Profit After Tax (reported)

(10,859)

(3,542)

(2,078)

9,263

19,519

Minority interests

0

0

0

0

0

Net income (normalised)

14,044

25,551

57,414

57,663

64,295

Net income (reported)

(10,859)

(3,542)

(2,078)

9,263

19,519

Basic average number of shares outstanding (m)

197

227

266

267

257

EPS - basic normalised (c)

7.14

11.24

21.61

21.58

25.00

EPS - diluted normalised (c)

6.86

10.91

21.41

20.37

24.75

EPS - basic reported (c)

(5.52)

(1.56)

(0.78)

3.47

7.59

Dividend (c)

0.00

0.00

0.01

0.01

0.01

Revenue growth (%)

119.8

71.0

77.4

14.5

9.1

Gross Margin (%)

31.3

28.9

24.4

22.9

22.9

EBITDA Margin (%)

12.2

11.3

11.8

11.3

11.3

EBITDA/Net Revenue (%)

39.1

39.0

48.4

49.5

49.5

Normalised Operating Margin

11.4

10.4

11.4

10.8

10.9

BALANCE SHEET

Fixed Assets

270,578

271,830

365,062

355,269

334,870

Intangible Assets

255,716

254,169

347,938

338,145

317,746

Tangible Assets

8,677

8,601

7,358

7,358

7,358

Investments & other

6,185

9,060

9,766

9,766

9,766

Current Assets

77,606

128,391

193,650

182,753

230,412

Stocks

1,011

895

646

500

2,114

Debtors

47,941

71,363

98,231

111,922

112,139

Cash & cash equivalents

28,654

56,133

94,773

70,331

116,159

Other

0

0

0

0

0

Current Liabilities

96,421

137,129

197,712

204,073

206,767

Creditors

89,256

117,016

190,348

196,839

199,533

Tax and social security

0

0

0

0

0

Short term borrowings

5,819

18,276

5,456

5,326

5,326

Lease liabilities

1,346

1,837

1,908

1,908

1,908

Long Term Liabilities

137,867

149,110

193,667

206,562

209,241

Long term borrowings

107,820

119,251

145,872

145,872

145,872

Other long term liabilities

30,047

29,859

47,795

60,690

63,369

Net Assets

113,896

113,982

167,333

127,386

149,273

Minority interests

0

0

0

0

0

Shareholders' equity

113,896

113,982

167,333

127,386

149,273

CASH FLOW

Op Cash Flow before WC and tax

3,997

23,360

54,195

74,698

87,503

Working capital

4,129

4,091

7,245

(7,054)

863

Exceptional & other

14,526

15,804

24,434

15,818

15,515

Tax

(1,957)

(2,230)

(8,399)

(11,931)

(25,004)

Net operating cash flow

20,695

41,025

77,475

71,530

78,877

Capex

(4,259)

(4,810)

(6,543)

(10,300)

(7,819)

Acquisitions/disposals

(37,065)

(18,344)

(81,396)

(23,500)

(10,000)

Interest paid

(9,512)

(8,695)

(7,766)

(10,120)

(9,817)

Equity financing

34,667

0

58,187

(46,273)

0

Change in borrowing

1,563

24,721

34,691

0

0

Dividends

0

0

0

(3,538)

(3,401)

Other

(4,734)

(3,700)

(30,730)

(2,241)

(2,083)

Net Cash Flow

1,355

30,197

43,918

(24,442)

45,828

Opening net debt/(cash)

74,998

84,985

81,394

56,555

80,867

FX

1,117

(2,718)

(5,278)

0

0

Other non-cash movements

(12,459)

(23,888)

(13,801)

130

0

Closing net debt/(cash)

84,985

81,394

56,555

80,867

35,110

Source: Company data, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by Team Internet Group and prepared and issued by Edison, in consideration of a fee payable by Team Internet Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by Team Internet Group and prepared and issued by Edison, in consideration of a fee payable by Team Internet Group. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on Team Internet Group

View All

Latest from the TMT sector

View All TMT content

Research: Investment Companies

BlackRock Latin American Investment Trust — Last man standing – committed to the region

BlackRock Latin American Investment Trust (BRLA) has two managers, Sam Vecht (lead) and Christoph Brinkmann (deputy). They highlight that Latin America has been overlooked by investors and the trust is now the only fund in the AIC Latin America sector. The managers are finding interesting opportunities in the region in their search for companies offering a niche product or service, which have long-term growth potential and are reasonably priced. BRLA offers a broad exposure to Latin America, with around 60% of the fund invested in Brazil, the largest country in the region. The Brazilian central bank was proactive in raising interest rates to combat higher inflation, real interest rates remain relatively high and the economy should benefit now that interest rates are coming down.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free