Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI: UK9OG5Q0CYUDFGRX4151)
All information is at30 September 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^	4.7	6.3	-8.7	63.9	11.7
Share price	4.5	6.0	-12.4	62.5	7.1
MSCI EM Latin America (Gross Return)^^	4.4	6.2	-6.1	72.3	12.5
MSCI EM Latin America (Net Return)^^	4.4	6.1	-6.5	70.6	10.7
US Dollars:
Net asset value^	5.0	5.0	-11.3	41.0	-10.0
Share price	4.8	4.7	-14.9	39.7	-13.8
MSCI EM Latin America (Gross Return)^^	4.7	4.9	-8.8	48.4	-9.4
MSCI EM Latin America (Net Return)^^	4.7	4.8	-9.1	46.9	-10.8

^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:	478.56p
Net asset value – cum income:	481.81p
Share price:	407.50p
Total Assets#:	£203.2m
Discount (share price to cum income NAV):	15.4%
Average discount* over the month – cum income:	14.7%
Net gearing at month end**:	7.8%
Gearing range (as a % of net assets):	0-25%
Net yield##:	4.2%
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 declared on 2 October 2018 and payable 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 September 2018 converted to US dollars at the exchange rate on 30 September 2018, would be 5.9%.

*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	63.8	63.8		54.7
Mexico	29.7	29.6		27.9
Chile	3.7	3.7		9.7
Colombia	1.7	1.6		4.1
Argentina	1.4	1.3		0.0
Peru	0.0	0.0		3.6
Net current liabilities (inc. fixed interest)	-0.3	0.0		0.0
	-----	-----		-----
Total	100.0	100.0		100.0
	-----	-----		-----

Sector	% of Equity Portfolio *	% of Benchmark
Financials	29.7	29.8
Materials	21.3	19.6
Consumer Staples	12.0	16.2
Consumer Discretionary	10.4	5.8
Energy	8.3	9.6
Industrials	7.8	6.1
Telecommunication Services	6.9	6.0
Utilities	1.5	4.3
Information Technology	1.3	0.7
Health Care	0.8	0.6
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
Vale	Brazil	10.2	8.1
Itau Unibanco	Brazil	7.5	6.1
Petrobras	Brazil	7.3	6.6
Banco Bradesco	Brazil	7.1	5.2
America Movil	Mexico	5.7	4.6
Grupo Financiero Banorte	Mexico	4.8	3.2
Femsa	Mexico	4.7	3.3
Walmart de Mexico y Centroamerica	Mexico	3.9	2.7
B3	Brazil	3.3	2.1
Cemex SAB	Mexico	2.9	1.7

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

For the month of September 2018, the Company’s NAV rose by 4.7%* with the share price rising by 4.5%*. The Company’s benchmark, the MSCI EM Latin America Index, also rose by 4.4% on both a gross and net basis** (all performance figures are in sterling terms with dividends reinvested).

All countries within the region ended the month in positive territory, partially recovering from the August correction. The Company’s use of gearing contributed to relative performance as we were able to more effectively capture the rebound in market performance.

Mexico was a top contributor for the month. Walmart de Mexico continued to perform well as the company exhibited strong profitability and positive short-term consumer trends. Brazilian positioning was generally also positive as the market rallied from a positive political narrative and an increased appetite for EM equities, which was further supported by recent underperformance and light investor positioning. Vale was a top performer amid strong commodity prices, while the retailer, Lojas Renner gained on the back of strong execution. A lack of positioning in Ambev was the largest relative contributor as the company continued to experience margin pressures, in part due to the depreciation of the Brazilian currency experienced over the last few months. On the other hand detractors in September were primarily stock driven. Brazilian healthcare provider, Fleury, was among the worst performers as the brand is taking longer than expected to recover, with their patient service centres performing worse than expected as premium health insurance providers are suffering as economic weakness persists. A lack of positioning in Colombia’s Ecopetrol also weighed on returns as the stock gained alongside oil prices.

We traded around Brazil in September, deploying capital across existing positions on the basis that the market can materially surprise to the upside on the back of a favourable election result. Later in the month we pulled back exposure to some of the larger cap names, reflecting the expectation of a tight race in the second round of elections, providing some buying power through the volatility. We also exited Panamanian airline, Copa, as severe depreciation to the Brazilian and Argentinian currencies in August changed our investment thesis. The Company ended the period being overweight Brazil and Mexico, while being underweight Chile, Peru and Colombia. 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 staples names.

Brazil remains our top overweight - while Brazilian risk assets are likely to remain volatile through the October elections, we continue to look to take opportunities in down markets.  Our view remains that a government promoting continuity to the current reform process will be elected, and represent a positive for consistent economic growth, and therefore stock market performance. Meanwhile, our sentiment and positioning in Mexico have improved amid positive developments surrounding the new USMCA (United States-Mexico-Canada Agreement) trade agreement and our expectation that the incoming Lopez Obrador administration will prove to be market friendly  in year one with a more tempered agenda initially.  We continue to be underweight in Chile due to rich valuations and lack of free-float liquidity, and have become more cautious on Peru given disappointing growth figures. We have reduced our exposure to off-benchmark Argentine equities as the financial crisis there is taking its toll on President Macri’s government, putting pressure on its currency and forcing the administration to take needed tough fiscal and monetary measures that will put the country into a recession.

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

15 October 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.