Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI: UK9OG5Q0CYUDFGRX4151)
All information is at30 November 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^	-1.6	12.4	6.3	72.4	21.3
Share price	-2.5	10.6	1.2	59.4	14.9
MSCI EM Latin America (Gross Return)^^	-2.0	8.0	4.8	74.2	17.6
MSCI EM Latin America (Net Return)^^	-2.1	7.9	4.4	72.5	15.7
US Dollars:
Net asset value^	-1.7	10.3	0.1	45.9	-5.6
Share price	-2.7	8.5	-4.7	34.9	-10.6
MSCI EM Latin America (Gross Return)^^	-2.2	6.0	-1.3	47.7	-8.4
MSCI EM Latin America (Net Return)^^	-2.2	5.9	-1.6	46.2	-9.9

^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. Historically the benchmark data for the Company has always been stated on a Gross basis. However, as disclosed in the Company’s Interim Report for the six months ended 30 June 2018, it is the Board’s intention to monitor the Company’s performance with reference to the NR version of the benchmark. For transparency both sets of benchmark data have been provided.

Sources: BlackRock, Standard & Poor’s Micropal

At month end
Net asset value – capital only:	510.51p
Net asset value – cum income:	511.16p
Share price:	425.00p
Total Assets#:	£219.2m
Discount (share price to cum income NAV):	16.9%
Average discount* over the month – cum income:	16.0%
Net gearing at month end**:	9.5%
Gearing range (as a % of net assets):	0-25%
Net yield##:	4.0%
Ordinary shares in issue (excluding 2,181,662 shares held in treasury):	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 (comprising, the 2017 final dividend of 7.00 cents per share, the first interim dividend under the new policy of 7.57 cents per share paid on 23 August 2018 and the second interim dividend under the new policy of 7.85 cents per share paid on 9 November 2018) 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 February, May, August and November each year respectively. The yield on the Company’s shares projecting future quarterly dividends forward based on the August 2018 paid dividend and 3 quarters being paid at the same rate as the declared October 2018 dividend, based on the Company’s share price at 30 November 2018 converted to US dollars at the exchange rate on 30 November 2018, would be 5.74%.
*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.
*** Calculated as a percentage of average net assets and using expenses, excluding interest costs for the year ended 31 December 2017.

Geographic Exposure

	% of Total Assets	% of Equity Portfolio *		MSCI EM Latin America Index
Brazil	73.9	73.8		62.4
Mexico	20.8	20.7		21.6
Chile	3.2	3.2		9.2
Colombia	1.5	1.5		3.4
Argentina	0.8	0.8		0.0
Peru	0.0	0.0		3.4
Net current liabilities (inc. fixed interest)	-0.2	0.0		0.0
	-----	-----		-----
Total	100.0	100.0		100.0
	-----	-----		-----

Sector	% of Equity Portfolio *	% of Benchmark
Financials	33.6	33.3
Materials	17.8	16.8
Consumer Discretionary	10.4	5.8
Energy	10.0	10.7
Consumer Staples	9.1	14.7
Industrials	8.4	5.9
Communication Services	5.7	5.4
Utilities	2.2	4.9
Information Technology	2.0	0.5
Health Care	0.8	0.7
Real Estate	0.0	1.3
	-----	-----
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
Petrobras	Brazil	10.0	8.0
Banco Bradesco	Brazil	9.2	7.1
Itau Unibanco	Brazil	9.1	7.6
Vale	Brazil	8.9	7.3
America Movil	Mexico	4.5	3.8
B3	Brazil	3.9	2.5
Femsa	Mexico	3.6	2.8
Lojas Renner	Brazil	2.9	1.2
Grupo Financiero Banorte	Mexico	2.9	2.0
Walmart de Mexico y Centroamerica	Mexico	2.7	2.2

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

For the month of November 2018, the Company’s NAV returned -1.6%¹ with the share price moving -2.5%¹. The Company’s benchmark, the MSCI EM Latin America Index, returned -2.0% (on a gross basis) and -2.1% (on a net basis)² (all performance figures are in sterling terms with dividends reinvested).

Stock selection in Brazil was the primary driver of returns during the month under review as the market has remained supportive of the October election results, with all eyes on the formation of the new government. As macro proxies, lenders Banco Bradesco and Itau Unibanco, were the month’s top individual contributors, amid continued optimism surrounding an economic recovery. Airline, Azul, was also among the best performers supported by weaker oil prices. Similarly our lack of positioning in Colombia’s Ecopetrol and Mexican mining names, contributed positively to relative returns. Mexican mining companies saw declines on the back of growing concerns over legal and regulatory developments in the sector. On the other hand Mexican financial, Grupo Financiero Banorte, detracted from performance in November amid more hawkish positioning from the Central Bank and a proposal to stop banks from charging certain fees. An overweight position in Petrobras also weighed on returns, while our underweight to Chile was the month’s largest detractor from performance.

During the month we continued to add to our Brazil overweight position following a positive election result, primarily topping up on existing positions in macro sensitive financials. On the other hand, we decreased exposure to Mexico on the back of political uncertainty. Specifically, we trimmed our position in Grupo Financiero Banorte and reduced our allocation to restaurant chain operator, Alsea, amid anticipated balance sheet pressure from M&A (Merger & Acquisition)  activity and domestic operations being negatively impacted by weakness in the Peso. The Company ended the month being overweight in Brazil, while being underweight in Chile, Peru, Colombia and neutral in Mexico. We continue to maintain an off-benchmark allocation to Argentina through software exporter, Globant. At the sector level, we are overweight in the domestic consumer staples and utilities sectors.

Brazil remains our largest overweight, given our positive expectations for the incoming administration. So far President-elect, Jair Bolsonaro, has delivered on his campaign promises, looking to reduce the size of government by initially reducing the number of ministries, naming sector/subject experts to lead cabinets, and pointing to a continuation of the reform process initiated two years ago. Meanwhile, third quarter corporate results point to a continuation in the economic recovery, providing strong momentum for growth into 2019. Elsewhere, the cancellation of NAIM (New Mexico International Airport) reminded markets of the concerns regarding increasing populism for the incoming administration in Mexico, reiterating our cautiousness with Mexican equities. We remain underweight to the Andean region due to a combination of unattractive valuations and disappointing growth, and are waiting for greater clarity regarding the success of the current stabilization program in Argentina before returning to that market.

Sources:
¹BlackRock as at 30 November 2018
²Datastream as at 30 November 2018

18 December 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.