REG-BlackRock Latin American Investment Trust Plc: Portfolio Update
Wed 12:30
The information contained in this release was correct as at 31 July 2025.
Information on the Company’s up to date net asset values can be found on the
London Stock Exchange Website at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI - UK9OG5Q0CYUDFGRX4151)
All information is at 31 July 2025 and unaudited.
Performance at month end with net income reinvested
One Three One Three Five
month months year years years
% % % % %
Sterling:
Net asset value^ -4.2 4.7 4.0 13.6 31.7
Share price 3.0 15.2 9.7 21.6 47.9
MSCI EM Latin America -1.0 3.9 4.1 17.1 44.4
(Net Return)^^
US Dollars:
Net asset value^ -7.5 3.7 7.1 23.6 32.9
Share price -0.5 14.1 13.0 32.3 49.2
MSCI EM Latin America -4.4 3.0 7.2 27.4 45.6
(Net Return)^^
^cum income
^^The Company’s performance benchmark (the MSCI EM Latin America Index) may
be calculated on either a Gross or a Net return basis. Net return (NR) indices
calculate the reinvestment of dividends net of withholding taxes using the tax
rates applicable to non-resident institutional investors, and hence give a
lower total return than indices where calculations are on a Gross basis (which
assumes that no withholding tax is suffered). As the Company is subject to
withholding tax rates for the majority of countries in which it invests, the
NR basis is felt to be the most accurate, appropriate, consistent and fair
comparison for the Company.
Sources: BlackRock, Standard & Poor’s Micropal
At month end
Net asset value - capital only: 371.51p
Net asset value - including income: 372.00p
Share price: 355.50p
Total assets#: £114.5m
Discount (share price to cum income NAV): 4.4%
Average discount* over the month – cum income: 7.7%
Net gearing at month end**: 4.7%
Gearing range (as a % of net assets): 0-25%
Net yield##: 5.1%
Ordinary shares in issue(excluding 2,181,662 shares held in treasury): 29,448,641
Ongoing charges***: 1.23%
#Total assets include current year revenue.
##The yield of 5.1% is calculated based on total dividends declared in the
last 12 months as at the date of this announcement as set out below (totalling
23.47 cents per share) and using a share price of 470.45 US cents per share
(equivalent to the sterling price of 355.50 pence per share translated in to
US cents at the rate prevailing at 31 July 2025 of $1.3234 dollars to £1.00).
2024 Q3 Interim dividend of 6.26 cents per share (Paid 08 November 2024)
2024 Q4 Interim dividend of 4.92 cents per share (Paid on 07 February 2025)
2025 Q1 Interim dividend of 5.55 cents per share (Paid on 15 May 2025)
2025 Q2 Interim dividend of 6.74 cents per share (Payable on 12 August 2025)
*The discount is calculated using the cum income NAV (expressed in sterling
terms).
**Net cash/net gearing is calculated using debt at par, less cash and cash
equivalents and fixed interest investments as a percentage of net assets.
*** The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating expenses
excluding finance costs, direct transaction costs, custody transaction
charges, VAT recovered, taxation and certain non-recurring items for the year
ended 31 December 2024.
Geographic Exposure % of Total Assets % of Equity Portfolio * MSCI EM Latin America Index
Brazil 60.6 60.4 59.4
Mexico 33.1 33.1 28.2
Multi-Country 2.6 2.6 0.0
Chile 2.0 2.0 6.3
Argentina 1.9 1.9 0.0
Peru 0.0 0.0 4.4
Columbia 0.0 0.0 1.7
Net current liabilities (inc. fixed interest) -0.2 0.0 0.0
----- ----- -----
Total 100.0 100.0 100.0
===== ===== =====
^Total assets for the purposes of these calculations exclude bank overdrafts,
and the net current assets figure shown in the table above therefore excludes
bank overdrafts equivalent to 4.5% of the Company’s net asset value.
Sector % of Equity Portfolio* % of Benchmark*
Financials 22.1 33.9
Materials 21.3 17.1
Consumer Staples 15.0 13.4
Industrials 13.2 10.2
Consumer Discretionary 11.1 1.5
Health Care 5.8 0.7
Energy 5.7 9.8
Real Estate 3.9 1.3
Information Technology 1.9 0.7
Utilities 0.0 7.4
Communication Services 0.0 4.0
----- -----
Total 100.0 100.0
===== =====
*excluding net current assets & fixed interest
Company Country of Risk % of % of
Equity Portfolio Benchmark
Vale: Brazil
ADS 7.1
Equity 1.1 5.7
Grupo México Mexico 6.3 3.2
Petrobrás: Brazil
Equity 1.0
Equity ADR 2.5 3.9
Preference Shares ADR 2.2 4.4
Walmart de México y Centroamérica Mexico 5.5 2.5
Grupo Aeroportuario del Sureste Mexico 4.2 0.9
Grupo Financiero Banorte Mexico 4.1 3.7
FEMSA: Mexico
ADR 0.8
Equity 3.2 2.6
Rede D'or Sao Luiz Brazil 3.3 0.8
XP Brazil 3.3 1.0
Nu Holdings Ltd Brazil 3.3 6.4
Commenting on the markets, Sam Vecht and Christoph Brinkmann, representing the
Investment Manager noted;
The Company’s NAV fell by -7.5% in July, underperforming the benchmark, the
MSCI Emerging Markets Latin America Index, which returned -4.4% on a net basis
over the same period. All performance figures are in US dollar terms with
dividends reinvested.1
Emerging Markets continued their rise in July, gaining +1.9%, outperforming
Developed Markets (+1.3%). Latin America was down -4.4% over the month, with
index heavyweight Brazil falling -6.9% amid lingering uncertainty following
the US's announcement of a 50% tariff on Brazilian exports. Whilst an
extensive list of exceptions were later confirmed, the market initially
reacted negatively to the news. Mexico (-0.1%) was flat during the month amid
a resilient consumer and continued front-loading of exports to the US, though
uncertainty of the final tariff was delayed for another 90 days. Argentina
(+2.4%), and Colombia (+1.0%) performed better, supported by falling inflation
and a rate cut, respectively.
At the portfolio level, security selection in Chile was the largest
contributor. On the other hand, stock selection in Brazil detracted from
relative returns.
From a security lens, an overweight to Mexican mining and transport
conglomerate, Grupo Mexico, was the biggest contributor after their Q2 results
showed a 10% net profit increase. Pinfra, a Mexican highway operator, also
helped returns. Shares climbed after the company confirmed the USD 800 million
sale of its port business. No exposure to Brazilian electric equipment firm,
WEG, was another relative contributor after the company delivered a big miss
on 2Q 2025 earnings.
On the flipside, not owning Cemex, the Mexican cement producer, was the
biggest detractor. The company delivered a double-digit increase in 2Q 2025
profits, but saw volumes decline in the US and Mexico, their two primary
markets. We maintained our underweight position. Overweight Brazilian retailer
Lojas Renner was another detractor. Alongside broader Brazilian market
volatility, concerns are mounting that President Lula may repeal the 'blouse
tax', a 20% import duty, which could negatively impact domestic retailers such
as Renner. Our exposure to XP, the Brazilian investment management platform,
also hurt performance.
Portfolio positioning remained largely unchanged in July. We initiated a
position in Brazilian pulp and paper company, Klabin, as we believe their
leverage can come down as new assets are brought online. We reduced our
exposure to Fibra Uno, a Mexican real estate company. We added to Walmex,
taking advantage of the share price weakness following their 2Q earnings
release as we believe the market was overreacting.
Mexico remains the largest portfolio overweight as of July end, while Peru is
the largest underweight.
Outlook
While July was a challenging month for Latin American equities, we remain
constructive on the region. In our view, recent headlines highlighting
tensions between Brazil and the US are unlikely to have lasting economic
consequences. Brazil’s exports to the US have steadily declined over the
past decade, and the proposed tariffs, while politically charged, are expected
to have limited real impact.
Encouragingly, Brazil’s CPI (Consumer Price Index) appears to be slowing
faster than anticipated, which could bring the current tightening cycle to a
close sooner than expected. Looking ahead, the 2026 presidential election also
presents a potential catalyst as we believe there is a strong likelihood that
a candidate who is perceived as a more market-friendly may win.
Mexico remains a key overweight in the portfolio. We see no material shift in
the structural trend of nearshoring, as Mexico continues to offer a compelling
cost advantage over US-based manufacturing. President Sheinbaum’s pragmatic
stance on trade and investment reinforces our view that Mexico will remain a
key beneficiary of supply chain realignment.
1Source: BlackRock, as of 31 July 2025.
13 August 2025
ENDS
Latest information is available by typing www.blackrock.com/uk/brla on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3
(ICV terminal). Neither the contents of the Manager’s website nor the
contents of any website accessible from hyperlinks on the Manager’s website
(or any other website) is incorporated into, or forms part of, this
announcement.
Release (https://mb.cision.com/Main/22400/4217444/3608012.pdf)
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AnnouncementREG-BlackRock Latin American Investment Trust Plc: Net Asset Value(s)
AnnouncementREG-BlackRock Latin American Investment Trust Plc: Net Asset Value(s)
AnnouncementREG-BlackRock Latin American Investment Trust Plc: Portfolio Update
AnnouncementREG-BlackRock Latin American Investment Trust Plc: Net Asset Value(s)
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