BlackRock Latin American Investment Trust Plc - Portfolio Update
The information contained in this release was correct as at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
All information is at
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 29,448,641 treasury): 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
2024 Q4 Interim dividend of
2025 Q1 Interim dividend of
2025 Q2 Interim dividend of
2025 Q3 Interim dividend of
*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
Geographic Exposure % of Total Assets % of Equity MSCI EM Latin America
Portfolio * 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 0.1 0.0 0.0
interest)
----- ----- -----
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
Country of Risk % of % of
Company 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,
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
At the portfolio level, an off-benchmark exposure to Materials and an underweight position to
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
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
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
In
Overall, solid fundamentals and easing inflation trends support our positive stance on the region overall.
1
Source: BlackRock, as of
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.
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