REG-BlackRock Latin American Investment Trust Plc: Portfolio Update

Blackrock Latin American Investment TrustAnnouncement

Wed 17:00

 

 

The information contained in this release was correct as at 30 September 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                                  30 September 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^        6.1       8.1        18.3     14.6      63.6      
 Share price             5.3       9.6        22.7     21.4      66.2      
 MSCI EM Latin America   6.9       12.2       20.0     22.6      81.2      
  (Net Return)^^                                                           
 US Dollars:                                                               
 Net asset value^        5.7       6.2        18.7     38.2      70.5      
 Share price             4.9       7.6        23.2     46.5      73.1      
 MSCI EM Latin America   6.5       10.2       20.4     47.8      88.7      
  (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:                                         417.00p     
 Net asset value - including income:                                     419.79p     
 Share price:                                                            378.00p     
 Total assets#:                                                          £132.8m     
 Discount (share price to cum income NAV):                               10.0%       
 Average discount* over the month – cum income:                          10.2%       
 Net gearing at month end**:                                             7.3%        
 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
24.27 cents per share) and using a share price of 508.88 US cents per share
(equivalent to the sterling price of 378.00 pence per share translated in to
US cents at the rate prevailing at 30 September 2025 of $1.346 dollars to
£1.00).


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)

2025 Q3 Interim dividend of 7.06 cents per share (Payable 05 November 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                                    65.4               65.4                     59.6                         
 Mexico                                    23.6               23.6                     27.6                         
 Peru                                      4.4                4.4                      4.6                          
 Multi-Country                             2.8                2.8                      0.0                          
 Argentina                                 2.5                2.6                      0.0                          
 Chile                                     1.2                1.2                      6.4                          
 Columbia                                  0.0                0.0                      1.8                          
 Net current assets (inc. fixed interest)  0.1                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 7.4% of the Company’s net asset value.

 

 Sector                  % of Equity Portfolio*  % of Benchmark*  
 Financials              23.3                    35.5             
 Materials               20.1                    17.8             
 Industrials             16.0                    9.7              
 Consumer Staples        14.2                    12.2             
 Consumer Discretionary  10.4                    1.5              
 Health Care             6.2                     0.8              
 Energy                  4.8                     8.6              
 Information Technology  2.5                     0.7              
 Real Estate             2.5                     1.2              
 Utilities               0.0                     8.0              
 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                                                   7.4                                
 Equity                                                1.0                  5.6           
 Grupo Aeroportuario del Sureste      Mexico           4.9                  0.8           
 Petrobrás:                           Brazil                                              
 Equity                                                0.9                                
 Equity ADR                                            2.1                  3.4           
 Preference Shares ADR                                 1.9                  3.9           
 Walmart de México y Centroamérica    Mexico           4.8                  2.3           
 Localiza Rent A Car                  Brazil           4.6                  1.0           
 Southern Copper                      Peru             4.4                  1.5           
 Grupo Financiero Banorte             Mexico           3.9                  3.6           
 Rede D'or Sao Luiz                   Brazil           3.8                  0.9           
 Rumo                                 Brazil           3.8                  0.6           
 FEMSA                                Mexico           3.7                  2.4           

 

Commenting on the markets, Sam Vecht and Christoph Brinkmann, representing the
Investment Manager noted;

 

The Company’s NAV rose by +5.7% in September, underperforming the benchmark,
the MSCI Emering Markets Latin America Index, which returned +6.5% on a net
basis over the same period. All performance figures are in US dollar terms
with dividends reinvested.          1                                

 

Emerging Markets rose 7.0% in September, with Latin America up 6.5%. Peru led
(+12.8%) on mining strength as copper surged amid supply disruptions. Mexico
gained 9.6%, helped by consumer discretionary, while Brazil lagged (+5.2%)
despite the Bovespa hitting new highs amid mixed macro data.

 

At the portfolio level, an off-benchmark exposure to Materials and an
underweight position to Chile contributed to performance. Stock selection in
Mexico was the biggest detractor to relative returns.

 

From a security lens, a collection of copper related stocks did well. Copper
prices increased over the month driven by a larger than expected supply
disruption from the world's second largest copper mine resulting in a
significantly tighter market. This benefitted stocks like Ero Copper, a
Canadian listed miner with significant operations in Brazil, and Peruvian
miner Southern Copper. Brazilian car rental company Localiza also did well.
The stock rose on the back of better-than-expected used auto market pricing
data.

 

On the flipside, Argentinian IT services company, Globant, continued to weigh
on returns in September. We still like the stock and added on the back of
weakness. Brazilian healthcare operator, Hapvida, was another detractor. The
stock fell as beneficiary growth fell short of bullish expectations set after
Q2, with regulatory data showing weak net additions, leading to downward
revisions in topline estimates. Footwear retailer, Azzas 2154, also weighed on
performance after an operational slowdown in its key brand, Hering.

 

Portfolio positioning remained largely unchanged in September. We took profits
and exited Grupo México, rotating into Peruvian copper miner, Southern
Copper, which has underperformed. We initiated a position in Brazilian bank,
Banco do Brasil. While the stock has rebounded slightly more than other
Brazilian financials, it remains a significant underperformer year-to-date and
trades at attractive valuations. We also reduced our exposure to Stoneco,
taking advantage of the strong performance. We added to Brazilian pulp and
paper company, Klabin, taking advantage of share price weakness.

 

Brazil is now our largest portfolio overweight, whilst Chile is the largest
underweight.           

 

Outlook

 

We remain constructive on Latin American equities heading into Q4 2025.
Valuations are still attractive despite strong year-to-date performance, and
recent tariff headlines between Brazil and the U.S. should have limited
economic impact given the small share of exports involved.

 

In Brazil, attention is shifting to the 2026 presidential election and the
policy outlook. Inflation is slowing faster than expected, which could allow
the central bank to end its tightening cycle sooner. Politics will remain a
key driver, but high real rates combined with softer U.S. growth increase the
likelihood of a monetary inflection point.

 

Mexico continues to look defensive thanks to solid fiscal and external
balances and near-shoring tailwinds. Tariff concerns appear priced in, though
we are monitoring the Trump–Sheinbaum dynamic closely.

 

Overall, solid fundamentals and easing inflation trends support our positive
stance on the region overall.

 

1          Source: BlackRock, as of 30 September 2025.

 

29 October 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/22400/4258648/3751902.pdf)  



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