Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI: UK9OG5Q0CYUDFGRX4151)
All information is at30 June 2018 and unaudited.

Performance at month end with net income reinvested   

	One month	Three months	One  year	Three years	Five years
Sterling:
Net asset value^	-3.9	-16.8	-1.9	25.4	1.5
Share price	-4.4	-17.8	-2.4	24.3	0.8
MSCI EM Latin America	-2.3	-12.5	-1.4	27.7	3.4
US Dollars:
Net asset value^	-4.6	-21.7	-0.3	5.3	-11.6
Share price	-5.2	-22.7	-0.8	4.3	-12.2
MSCI EM Latin America	-3.0	-17.7	0.2	7.2	-10.0

^cum income

Sources: BlackRock, Standard & Poor’s Micropal

At month end
Net asset value – capital only:	453.20p
Net asset value – cum income:	458.63p
Share price:	390.00p
Total Assets#:	£195.1m
Discount (share price to cum income NAV):	15.0%
Average discount* over the month – cum income:	14.9%
Net gearing at month end**:	9.0%
Gearing range (as a % of net assets):	0-25%
Net yield##:	4.0%
Ordinary shares in issue***:	39,259,620
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. As previously announced, the Board of the BlackRock Latin American Investment Trust plc have introduced a new dividend policy whereby the Company will pay regular quarterly dividends equivalent to 1.25% of the Company’s US Dollar cum income NAV on the last working day of December, March, June and September each year, with the dividends being paid in November, February, May and August each year respectively. The first quarterly dividend under this new policy of 7.57 cents was declared on 3 July 2018 and is payable on 23 August 2018.  The yield on the Company’s shares projecting future quarterly dividends forward based on four quarters being paid at the same rate as the July dividend, and based on the Company’s share price at 30 June 2018 converted to US dollars at the exchange rate on 30 June 2018, would be 5.8%.
*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 2,181,662 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 2017.

Geographic Exposure

	% of Total Assets	% of Equity Portfolio *		MSCI EM Latin America Index
Brazil	64.4	64.0		54.2
Mexico	27.7	27.6		27.2
Chile	4.4	4.3		10.4
Argentina	2.9	2.9		0.0
Colombia	1.2	1.2		4.4
Peru	0.0	0.0		3.8
Net current assets/liabilities (inc. fixed interest)	-0.6	0.0		0.0
	-----	-----		-----
Total	100.0	100.0		100.0
	-----	-----		-----

Sector	% of Equity Portfolio *	% of Benchmark
Financials	28.5	29.5
Materials	21.5	19.0
Consumer Staples	11.4	16.0
Consumer Discretionary	11.1	6.2
Energy	7.9	8.8
Telecommunication Services	7.8	6.7
Industrials	7.0	6.2
Utilities	1.5	4.6
Information Technology	1.2	0.9
Health Care	1.1	0.6
Real Estate	1.0	1.5
	-----	-----
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
Vale	Brazil	9.4	7.2
Itau Unibanco	Brazil	7.3	6.0
Banco Bradesco	Brazil	7.3	5.3
Petrobras	Brazil	6.7	5.8
America Movil	Mexico	6.0	5.0
Femsa	Mexico	4.2	3.1
Grupo Financiero Banorte	Mexico	4.0	2.6
Walmart de Mexico	Mexico	3.5	2.5
B3	Brazil	3.1	1.9
Cemex SAB	Mexico	2.8	1.7

Commenting on the markets, Will Landers, representing the Investment Manager noted;

For the month of June 2018, the Company’s NAV fell by 3.9%* with the share price falling by 4.4%*. The Company’s benchmark, the MSCI EM Latin America Index, fell by 2.3%* (all performance figures are in sterling terms with income reinvested).

The Portfolio’s underweight exposure to Chile was the month’s top contributor to relative outperformance as the market broadly underperformed the region with the Chilean Peso depreciating further against the US Dollar. Brazilian stock selection also contributed positively although our heavy overweight position detracted. Off-benchmark positions such as digital retailer B2W and medical service provider Fleury, showed some resilience, ending the month in positive territory. Given that it was the best performing country in June, our light overweight to Mexico benefitted performance as markets and the Mexican Peso rallied given the easing of concerns regarding the election of Andres Manuel Lopes Obrador (“AMLO”). Defensive staples WalMart de Mexico and Arca Continental both performed well on strong execution and resiliency through this period of macro uncertainty. Cement manufacturer, GCC, was the month’s top contributor. On the other hand our off-benchmark position in Argentina continued to weigh on performance despite a US$50 billion stand-by arrangement with the IMF (International Monetary Fund) to help support the currency and MSCI’s decision to reclassify the country to Emerging Market status. Brazilian banks, Banco Bradesco and Itau Unibanco, were among the largest detractors amid pressure on the Real and increasing volatility on the back of approaching presidential elections.

Most recently we increased the portfolio’s overweight exposure to Brazil, while also shifting positioning within the country. Specifically, we added to underperforming SOEs (State Owned Enterprises) in Brazil given significant underperformance, attractive valuation, and our continued belief that the October election will elect a government committed to the current economic reform process.   We notably took profits from Rumo and Magazine Luiza amid strong performance, while adding to Petrobras and Banco do Brasil on weakness. On the other hand, we increased exposure across Mexico, moving the country exposure from underweight to neutral, on the expectation that an eventual AMLO administration would initially adopt market friendly policies. We also initiated a position in Colombia, while trimming some exposure to off-benchmark Argentina as tough fiscal and CPI (Consumer Price Index) targets associated with the IMF Stand-By Agreement are likely to result in lower growth. The portfolio ended the month being overweight Brazil while being underweight Chile, Peru and Colombia and neutral in Mexico. We also maintain an off-benchmark allocation to Argentina. At the sector level, we are overweight the domestic consumer and real estate, while being underweight utilities and financials.

While Brazilian risk assets are likely to remain volatile through the election, we will look to take opportunities while markets are down.  Meanwhile, after a landslide victory for both the presidency and in congress, all eyes remain on how much of AMLO’s campaign rhetoric will flow through into practice. Our sentiment towards Brazil has improved as we expect a less controversial administration in year one with a more tempered agenda. We continue to maintain underweight portfolio exposure to Chile due to rich valuations and lack of free-float liquidity, and have become more cautious on Peru given disappointing growth figures. We are keeping a close eye on Argentine inflation and the effectiveness of government measures to stabilize the currency, however at this point we remain comfortable with our exposure and have initiated a position in Colombia given higher oil prices, which in turn should ease fiscal concerns

Sources:
*BlackRock as at 30 June 2018
**Datastream as at 30 June 2018

17 July 2018

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.