REG-BlackRock Latin American Investment Trust Plc: Portfolio Update
Yesterday 15:30
The information contained in this release was correct as at 31 August 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 August 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^ 6.4 4.9 7.5 9.7 46.1
Share price 1.0 5.9 10.5 14.6 56.3
MSCI EM Latin America 6.0 9.5 10.1 15.6 66.5
(Net Return)^^
US Dollars:
Net asset value^ 8.6 5.1 10.5 27.4 48.1
Share price 3.1 6.0 13.6 33.1 58.5
MSCI EM Latin America 8.2 9.7 13.1 34.2 68.0
(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: 393.42p
Net asset value - including income: 395.65p
Share price: 359.00p
Total assets#: £119.4m
Discount (share price to cum income NAV): 9.3%
Average discount* over the month – cum income: 6.9%
Net gearing at month end**: 1.1%
Gearing range (as a % of net assets): 0-25%
Net yield##: 4.8%
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 4.8% 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 485.03 US cents per share
(equivalent to the sterling price of 359.00 pence per share translated in to
US cents at the rate prevailing at 31 August 2025 of $1.3510 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 (Paid 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 63.4 64.3 60.3
Mexico 28.4 28.8 26.9
Argentina 2.7 2.8 0.0
Chile 2.2 2.2 6.7
Multi-Country 1.9 1.9 0.0
Peru 0.0 0.0 4.3
Columbia 0.0 0.0 1.8
Net current assets (inc. fixed interest) 1.4 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 2.5% of the Company’s net asset value.
Sector % of Equity Portfolio* % of Benchmark*
Financials 22.4 35.6
Materials 19.4 16.9
Industrials 15.7 9.9
Consumer Staples 14.1 12.6
Consumer Discretionary 10.7 1.6
Health Care 7.0 0.8
Energy 5.3 8.8
Information Technology 2.7 0.7
Real Estate 2.7 1.2
Utilities 0.0 7.8
Communication Services 0.0 4.1
----- -----
Total 100.0 100.0
===== =====
*excluding net current assets & fixed interest
Company Country of Risk % of % of
Equity Portfolio Benchmark
Vale: Brazil
ADS 7.3
Equity 1.1 5.6
Petrobrás: Brazil
Equity 1.0
Equity ADR 2.3 3.5
Preference Shares ADR 2.0 4.0
Walmart de México y Centroamérica Mexico 5.3 2.4
Grupo Aeroportuario del Sureste Mexico 5.1 0.9
Grupo Financiero Banorte Mexico 4.0 3.5
Rede D'or Sao Luiz Brazil 3.9 0.9
Localiza Rent A Car Brazil 3.9 0.9
Grupo México Mexico 3.9 3.1
Nu Holdings Ltd Brazil 3.8 7.6
Rumo Brazil 3.8 0.5
Commenting on the markets, Sam Vecht and Gordon Fraser, representing the
Investment Manager noted;
The Company’s NAV rose by +8.6% in August, outperforming the benchmark, the
MSCI Emerging Market Latin America Index, which returned +8.2% on a net basis
over the same period. All performance figures are in US dollar terms with
dividends reinvested.1
Emerging markets had yet another strong month in August, rising +1.3%, but
underperformed Developed Markets which returned +2.6%. Latin America
outperformed both (+8.2%), led by Colombia (+12%), Chile (+11.2%) and Brazil
(+10.3%). Peru (+7.5%) and Mexico (+3.2%) also delivered solid returns.
Despite volatility in Brazil from trade and political headlines, the Ibovespa
reached new highs, supported by signs of disinflation and softer activity
data.
At the portfolio level, security selection in Brazil was the largest
contributor. On the other hand, an Argentinian IT services stock weighed on
relative returns.
From a security lens, an overweight to Brazilian payments solutions firm,
StoneCo, was the biggest contributor. The company delivered strong Q2 2025
earnings, beating expectations. Our exposure to Brazilian healthcare names
Hapvida and Rede D'or also helped returns over the month. The healthcare
sector rose on the back of a positive June print showing a month-over-month
increase in private health care plan members. Our off-benchmark position in
Minerva, the Brazilian meatpacker, was also additive after 2Q 2025 results
showed at 15% beat at the EBITDA (earnings before interest, taxes,
depreciation, and amortization) level.
On the flipside, the biggest detractor was Argentinian IT services company,
Globant. The stock fell after the latest earnings report showed significant
restructuring costs. We continue to like the name, as full-year management and
EPS (earnings per share) guidance remain in line. Rumo, a Brazilian logistics
company, was another detractor. Despite delivering strong earnings, with
volumes up 4% year-on-year and record soybean shipments, shares fell as
investors focused on a modest 2% year-on-year tariff decline. Not owning
Brazilian digital banking platform provider, Nu Holdings, was another
detractor from relative performance, as the stock rallied on the back of a Q2
2025 earnings beat.
Portfolio positioning remained largely unchanged in August. We trimmed Grupo
México after strong performance, added to Rumo on post results weakness given
our constructive medium term outlook, and increased exposure to Grupo
Aeroportuario del Sureste (ASUR). We exited dLocal as our investment thesis
has played out.
Brazil is now our largest portfolio overweight, following the trim in Grupo
México. Chile is the largest underweight.
Outlook
We remain constructive on the outlook for Latin American Equity markets.
Despite a very strong start to 2025, these markets remain attractively valued
on both an absolute and relative basis. 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 and inflation expectations are being revised lower.
This 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 of a more market-friendly
candidate winning, which would further support sentiment.
Mexico also 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 August 2025.
18 September 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/22400/4236724/3676784.pdf)
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