Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 August 2015 and unaudited.
Performance at month end with net income reinvested
		One			Three		One		Three				Five	^^Since
		month			months		year		years				years	31.03.06
		%			%		%		%				%	%
Sterling:
Net asset value^		-6.8			-14.6		-36.1		-30.4				-40.0	19.8
Share price		-7.4			-20.3		-37.1		-33.0				-44.5	9.4
MSCI EM Latin America		-9.2			-17.8		-37.6		-34.2				-39.4	24.6
US Dollars:
Net asset value^		-8.3			-14.0		-41.0		-32.6				-40.0	6.2
Share price		-8.7			-19.6		-41.7		-35.1				-44.4	-3.0
MSCI EM Latin America		-10.5			-17.1		-42.3		-36.3				-39.3	10.5
^cum income ^^Date which BlackRock took over the investment management of the Company. Sources: BlackRock, Standard & Poor’s Micropal
At month end
Net asset value – capital only:										336.27p
Net asset value – cum income:										347.45p
Share price:										298.25p
Total Assets#:										£136.8m
Discount (share price to cum income NAV):										14.2%
Average discount* over the month – cum income:										13.0%
Net cash at month end**:										2.2%
Gearing range (as a % of net assets):										0-25%
Net yield##:										6.6%
Ordinary shares in issue***:										39,369,620
Ongoing charges****:										1.2%
#Total assets include current year revenue. ## calculated using total dividends declared in the last 12 months as at the date of this announcement as a percentage of month end share price. *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. ***Excluding 2,071,662 shares held in treasury. **** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 31 December 2014.
Geographic Exposure
			% of Total Assets			% of Equity Portfolio *						MSCI EM Latin American Index
Brazil			46.3			47.4						48.5
Mexico			39.2			40.1						35.1
Peru			7.0			7.2						2.8
Chile			3.6			3.6						9.6
Colombia			1.2			1.2						4.0
Argentina			0.5			0.5						0.0
Net current assets (inc.Fixed interest)			2.2			0.0						0.0
			-----			-----						-----
Total			100.0			100.0						100.0
			-----			-----						-----
*excluding net current assets & fixed interest
Sector			% of Total Assets				% of Benchmark
Materials			14.7				13.5
Consumer Discretionary			5.9				6.9
Consumer Staples			22.8				22.9
Financials			32.8				27.1
Health Care			1.1				0.4
Industrials			6.1				6.6
Information Technology			2.5				2.2
Energy			3.1				7.0
Telecommunication Services			6.2				8.0
Utilities			2.6				5.4
Fixed Income			1.1				0.0
Net current assets			1.1				0.0
			-----				-----
Total			100.0				100.0
			-----				-----

Ten Largest Equity Investments (in percentage order)
Company	Country of Risk	% of Equity Portfolio		% of Benchmark
Itau Unibanco	Brazil	6.4		4.8
AmBev	Brazil	5.7		5.3
Femsa	Mexico	5.5		3.5
Banco Bradesco	Brazil	5.0		4.5
Cemex SAB	Mexico	4.8		2.1
BRF	Brazil	4.1		2.7
Credicorp	Peru	4.1		1.6
Walmart de Mexico	Mexico	4.1		2.7
America Movil	Mexico	4.0		6.4
BB Seguridade Participacoes	Brazil	3.7		1.2
Commenting on the markets, Will Landers, representing the Investment Manager noted;
Performance
For the month of August 2015 the Company’s NAV fell by 6.8% and the shares fell by 7.4% (all in sterling terms) while the Company’s benchmark, the MSCI EM Latin America Free Index, fell by 9.2%.  Positive contributions to relative performance stemmed primarily from stock selection in Brazil and cash which averaged 3.5% during the month.  An overweight to Mexico also contributed positively.  At the stock level, Brazilian pulp stock Fibria was the largest contributor benefiting from a weaker Real.  Also contributing positively was a lack of exposure to Petrobras which declined along with oil prices and continued volatility in the Brazilian market.        Weighing on performance was an underweight to Chile as the country benefited after reporting stronger economic activity for 2Q15.  An overweight to Peru also weighed on returns as MSCI announced that it has initiated consultations regarding potentially moving Peru from its emerging market indices to its frontier market indices.  As a result, the largest individual detractor was Peruvian bank Credicorp. Brazilian insurance stock BB Seguridade Participacoes also weighed on performance.
Transactions/Gearing
During the month we reduced exposure to Brazil, specifically Itau Unibanco and Banco Bradesco, given the increased potential for Brazil being downgraded below investment grade after the government’s 2016 budget proposal showed a primary deficit.   In addition, we exited Vale due to concerns regarding the price performance of iron ore in the second half of the year.  We initiated a position in Brazilian exchange BM&F Bovespa as a result of attractive valuations and the company’s position of being a net beneficiary of a depreciating Real.  Elsewhere in the portfolio we initiated a position in YPF in Argentina in order to begin reducing our underweight in the oil sector.   Net cash was approximately 2.2% at the end of August.
Positioning
Given the uncertainties at the macro level throughout the region, we maintain a defensive portfolio, with a high cash level relative to our history.  At the country level we maintain above benchmark exposure to Mexico given the continued improving performance of its domestic economy and in Peru, where valuations became even more attractive following the above mentioned MSCI announcement.  We continue to view the Peruvian economy positively.  We maintain our below benchmark exposure to Brazil, Chile and Colombia.  Brazil continues to suffer from weakening economic activity and significant political turmoil.  In addition, we do not believe market forecasts have bottomed out yet.  Chile and Colombia continue to deal with weak commodity prices and the impact that they have on their respective currencies as well as fiscal accounts.
14 September 2015
ENDS
Latest information is available by typing www.blackrock.co.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.