REG-BlackRock Latin American Investment Trust Plc: Portfolio Update

Blackrock Latin American Investment TrustAnnouncement

19/11/2025 17:30

The information contained in this release was correct as at 31 October 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 October 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^        3.7       17.0       25.1     10.8      73.5      
 Share price             1.2       7.6        28.0     15.1      69.1      
 MSCI EM Latin America   3.4       17.2       25.4     19.2      89.5      
  (Net Return)^^                                                           
 US Dollars:                                                               
 Net asset value^        1.2       16.2       27.9     26.5      76.3      
 Share price             -1.3      6.8        30.9     31.4      71.9      
 MSCI EM Latin America   0.9       16.4       28.1     36.0      92.6      
  (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:                                         429.30p     
 Net asset value - including income:                                     429.60p     
 Share price:                                                            377.00p     
 Total assets#:                                                          £138.8m     
 Discount (share price to cum income NAV):                               12.4%       
 Average discount* over the month – cum income:                          10.4%       
 Net gearing at month end**:                                             8.6%        
 Gearing range (as a % of net assets):                                   0-25%       
 Net yield##:                                                            4.9%        
 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 4.9% 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 495.32 US cents per share
(equivalent to the sterling price of 377.00 pence per share translated in to
US cents at the rate prevailing at 31 October 2025 of $1.3139 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                                    63.4               64.0                     59.5                         
 Mexico                                    23.0               23.3                     27.1                         
 Peru                                      6.1                6.2                      4.7                          
 Argentina                                 2.7                2.7                      0.0                          
 Multi-Country                             2.5                2.5                      0.0                          
 Chile                                     1.3                1.3                      6.8                          
 Columbia                                  0.0                0.0                      1.9                          
 Net current assets (inc. fixed interest)  1.0                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 9.7% of the Company’s net asset value.

 

 Sector                  % of Equity Portfolio*  % of Benchmark*  
 Financials              24.4                    35.1             
 Materials               21.1                    18.8             
 Industrials             15.3                    9.7              
 Consumer Staples        14.7                    12.0             
 Consumer Discretionary  9.4                     2.0              
 Health Care             5.9                     0.8              
 Energy                  3.9                     7.5              
 Information Technology  2.7                     0.6              
 Real Estate             2.6                     1.2              
 Utilities               0.0                     8.1              
 Communication Services  0.0                     4.2              
                         -----                   -----            
 Total                   100.0                   100.0            
                         =====                   =====            

 

*                                 excluding                                net
current assets & fixed interest


 Company                              Country of Risk  % of                 % of          
                                                         Equity Portfolio     Benchmark   
 Vale:                                Brazil                                              
 ADS                                                   8.6                                
 Equity                                                1.2                  6.2           
 Walmart de México y Centroamérica    Mexico           5.2                  2.4           
 Grupo Aeroportuario del Sureste      Mexico           4.5                  0.8           
 Localiza Rent A Car                  Brazil           4.5                  1.0           
 Southern Copper                      Peru             4.3                  1.8           
 Petrobrás:                           Brazil                                              
 Equity                                                0.8                                
 Equity ADR                                            1.4                  3.1           
 Preference Shares ADR                                 1.7                  3.6           
 Rede D'or Sao Luiz                   Brazil           3.9                  0.9           
 Rumo                                 Brazil           3.7                  0.5           
 Nu Holdings Ltd                      Brazil           3.6                  7.7           
 Grupo Financiero Banorte             Mexico           3.6                  3.4           

Commenting on the markets, Sam Vecht and Gordon Fraser, representing the
Investment Manager noted;

 

The Company’s NAV rose by +1.2% in October, outperforming the benchmark, the
MSCI Emerging Markets Latin America Index, which returned +0.9% on a net basis
over the same period. All performance figures are in US dollar terms with
dividends reinvested.           

 

Latin American equities rose 0.9% in October, lagging broader Emerging Markets
which gained 4.2% over the month. Brazil underperformed slightly despite mixed
macro signals - industrial output and services beat expectations, while retail
sales and GDP (gross domestic product) lagged. Mexico declined 0.8% as growth
slowed in third quarter and 2025 forecasts were revised down. Colombia, Chile
and Peru also posted solid gains.

 

At the portfolio level, our Materials exposure and stock selection in Mexico
contributed to performance during the month. Stock selection in Brazil and an
underweight position to Chile were the largest detractors.

 

From a security lens, a collection of copper related stocks continued to do
well. Southern Copper, the Peruvian miner, was the largest contributor to
returns after reporting strong third quarter results, with net revenues
growing 15% year-on-year, driven by higher production and stronger by-product
pricing. Brazilian iron ore producer, Vale, was another contributor. The stock
rose on the back of strong third quarter results that beat expectations. EZ
Tec, a Brazilian real estate developer, also helped as their third quarter
numbers showed good operational activity with a pick-up in pre-sales.

 

On the flipside, the largest detractor was Brazilian healthcare operator,
Hapvida. The stock fell as beneficiary growth remain subdued and as the
company has been guiding down expectations for their third quarter earnings
release. Another detractor was supermarket chain Assai. The weak performance
was driven by disappointing top line growth. Grupo Aeroportuario del Sureste
(ASUR), was another detractor after their third quarter net income numbers
fell short of analyst expectations.

 

Portfolio positioning remained largely unchanged in October. We exited
Alpargatas as our investment thesis around margin expansion has played out. We
initiated a position in Peruvian bank Intercorp as the stock is trading at
cheap valuations and as we see potential for loan growth to pick up. We
trimmed our exposure to Southern Copper and Ero Copper, taking advantage of
the recent strong performance of copper-related assets. We also added to Vale
over the month.

 

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

 

Outlook

 

We remain constructive on Latin American equities. 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, fundamentals and improving inflation trends support the case for
reduced risk premia over time which should help markets rally.

 

1          Source: BlackRock, as of 31 October 2025.

 

19 November 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/22400/4269870/3796726.pdf)  



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