Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 January 2016 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^		-0.3			-3.6		-25.2		-44.2				-49.6	10.2
Share price		-7.0			-12.7		-29.8		-47.7				-55.8	-2.5
MSCI EM Latin America		-0.9			-4.6		-25.5		-45.7				-47.5	16.0
US Dollars:
Net asset value^		-4.1			-11.4		-29.3		-50.0				-55.3	-9.7
Share price		-10.5			-19.8		-33.6		-53.1				-60.8	-20.2
MSCI EM Latin America		-4.6			-12.4		-29.6		-51.4				-53.5	-5.2
^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:										304.21p
Net asset value – cum income:										310.60p
Share price:										257.50p
Total Assets#:										£122.3m
Discount (share price to cum income NAV):										17.1%
Average discount* over the month – cum income:										12.6%
Net cash at month end**:										4.1%
Gearing range (as a % of net assets):										0-25%
Net yield##:										7.7%
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			41.7			43.5						44.9
Mexico			42.3			44.1						37.9
Peru			5.8			6.0						3.0
Chile			3.0			3.2						10.6
Argentina			1.7			1.7						0.0
Colombia			1.4			1.5						3.6
Net current assets (inc.Fixed interest)			4.1			0.0						0.0
			-----			-----						-----
Total			100.0			100.0						100.0
			-----			-----						-----
*excluding net current assets & fixed interest
Sector			% of Total Assets				% of Benchmark
Materials			12.2				11.6
Consumer Discretionary			5.8				7.2
Consumer Staples			25.1				24.2
Financials			30.1				28.0
Health Care			0.4				0.3
Industrials			6.8				7.4
Information Technology			3.1				2.3
Energy			2.7				5.5
Telecommunication Services			6.7				7.3
Utilities			3.0				6.2
Fixed Income			1.0				0.0
Net current assets			3.1				0.0
			-----				-----
Total			100.0				100.0
			-----				-----

Ten Largest Equity Investments (in percentage order)
 

Company	Country of Risk	% of Equity Portfolio	% of Benchmark
Femsa	Mexico	7.3	4.5
AmBev	Brazil	6.0	5.6
Itau Unibanco	Brazil	5.3	4.9
Grupo Financiero Banorte	Mexico	5.2	3.3
America Movil	Mexico	4.7	5.7
Walmart de Mexico	Mexico	4.6	3.4
Banco Bradesco	Brazil	3.8	4.0
Cemex SAB	Mexico	3.7	1.6
BB Seguridade Participacoes	Brazil	3.6	1.0
Credicorp	Peru	3.3	1.8

Commenting on the markets, Will Landers, representing the Investment Manager noted; Performance For the month of January 2016, the Company’s NAV fell by 0.3% and the share price fell by 7.0%, while the Company’s benchmark, the MSCI EM Latin America Free Index fell by 0.9% (all in sterling terms). Stock selection in Brazil was the primary contributor to returns.  The largest individual contributors to performance were a lack of exposure to Brazilian iron ore miner Vale and an underweight to Petrobras, both of which suffered as the materials and energy sectors experienced double-digit declines for the month.        Weighing on performance was stock selection in Mexico.  Our below benchmark exposure to Chile also detracted from returns as the country was a relative outperformer for the month.  At the stock level, Cemex SAB was the largest individual detractor from performance suffering as a result of a weaker currency and the negative impact to the company’s balance sheet.  Fibria Celulose, in Brazil, also weighed on returns given concerns regarding the direction of pulp prices in China. Transactions/Gearing During the month we reduced exposure to Brazil due to the Central Bank’s decision not to raise interest rates despite growing inflation expectations for 2016.  As a result we exited our position in Petrobras, which was also partially prompted by our concerns surrounding their revised capital expenditure program and production growth. We also reduced exposure to Itau Unibanco. We added to Cielo given attractive valuation levels.  We added to America Movil given a significant fall in its share price, placing the stock at an attractive valuation level. Net cash was approximately 4.1% at the end of January. Positioning The same concerns that drove Latin American markets in 2015, such as the strength of the Chinese economy and its impact on China’s currency, the direction of US interest rates, and region-specific risks, were revisited in the first month of 2016.  Brazil continues to post weak figures across the board with the exception of an improving current account deficit, which is lifting some of the pressure on the Brazilian Real.  Visibility on when the Brazilian economy will bottom is low, and the political uncertainties remain high.  The rest of the region continues to see its currencies trading alongside commodities with the Mexican Peso and Colombian Peso trading with oil prices and the Chilean Peso and Peruvian Sol with copper.  Overall, we continue to be defensively positioned with a low beta portfolio and are looking for a greater degree of conviction around the eventual economic recovery before increasing risk in the portfolio. 24 February 2016 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.