Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at 31 July 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^	6.2	16.4	24.5	-5.0	-22.7	60.0
Share price	5.9	14.0	24.5	-5.2	-24.0	46.9
MSCI EM Latin America	6.3	15.8	25.5	-5.2	-19.7	72.2
US Dollars:
Net asset value^	5.4	5.5	5.4	-17.1	-37.7	22.1
Share price	5.2	3.3	5.4	-17.3	-38.8	12.0
MSCI EM Latin America	5.5	5.0	6.8	-17.0	-35.1	31.8

^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:	435.31p
Net asset value – cum income:	443.57p
Share price:	380.75p
Total Assets#:	£174.7m
Discount (share price to cum income NAV):	14.2%
Average discount* over the month – cum income:	13.9%
Net cash at month end**:	0.9%
Gearing range (as a % of net assets):	0-25%
Net yield##:	3.6%
Ordinary shares in issue***:	39,369,620
Ongoing charges****:	1.1%

#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 2015.

Geographic Exposure
	% of Total Assets	% of Equity Portfolio *	MSCI EM Latin American Index
Brazil	58.9	59.5	56.0
Mexico	28.0	28.3	28.8
Peru	6.1	6.1	3.0
Chile	2.5	2.5	9.0
Argentina	2.3	2.3	0.0
Colombia	1.3	1.3	3.2
Net current assets (inc.Fixed interest)	0.9	0.0	0.0
	-----	-----	-----
Total	100.0	100.0	100.0
	-----	-----	-----

Sector	% of Equity Portfolio *	% of Benchmark
Financials	30.7	30.9
Consumer Staples	23.8	20.3
Energy	11.6	8.1
Materials	9.5	12.7
Industrials	8.0	6.5
Consumer Discretionary	6.3	6.6
Information Technology	4.2	2.4
Telecommunication Services	3.4	5.4
Utilities	2.5	6.6
Health Care	0.0	0.5
	-----	-----
Total	100.0	100.0
	-----	-----

*excluding net current assets & fixed interest
 

Ten Largest Equity Investments (in percentage order)
 

Company	Country of Risk	% of Equity Portfolio	% of Benchmark
Itau Unibanco	Brazil	9.0	5.7
Petrobas	Brazil	8.1	5.1
Banco Bradesco	Brazil	8.0	6.0
AmBev	Brazil	7.0	5.2
Femsa	Mexico	4.5	3.1
Cielo	Brazil	4.2	2.2
Grupo Financiero Banorte	Mexico	3.6	2.6
Telefonica Brasil	Brazil	3.4	1.3
Credicorp	Peru	3.0	2.0
Cemex SAB	Mexico	3.0	2.0

Commenting on the markets, Will Landers, representing the Investment

Manager noted;

Performance

For the month of July 2016, the Company’s NAV increased by 6.2% and the share price increased by 5.9%, while the Company’s benchmark, the MSCI EM Latin America Free Index, rose by 6.3% (all in sterling terms). 

Positive contributions to performance stemmed from our low exposure to Colombia.  Colombia was the largest underperformer in the region driven primarily by a weaker currency amid a large decline in oil prices in July.  The largest contributor to performance was Petrobras.  The stock benefited from favourable domestic developments on the political front which helped support the equity rally in Brazil.  An underweight to America Movil also contributed positively.

Stock selection in Brazil weighed on returns.  The lack of exposure to Vale weighed on returns as iron ore prices were up by almost 11% during the month.  We remain out of Vale as we expect an unfavourable supply/demand equation in the second half of 2016. A lack of exposure to Banco do Brasil also detracted from returns.

Transactions/Gearing

During the month we increased exposure to Brazil while reducing exposure to Mexico.  In Brazil, we increased exposure to Petrobras as the stock stands to benefit from a stronger currency and positive political developments.  In Mexico, we exited America Movil given negative pricing news in the sector and weak results. In addition, we reduced exposure to Cemex.

Net cash was approximately 0.9% at the end of July.

Positioning

Overall, we are positive about the prospects for Latin America going forward given the structural changes in the region, the potential for reform and the positive implications of those reforms.  We continue to prefer Brazil over Mexico.  We expect the reform agenda in Brazil to begin moving through Congress once the impeachment process is finalized thus clearing a path to growth.  Our more cautious view on Mexico is predicated on the potential for slower growth in the US and the impact of the US election cycle.  Elsewhere in the region, we continue to prefer Peru over Chile and Colombia.

10 August 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.