Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI: UK9OG5Q0CYUDFGRX4151)
All information is at31 July 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^	13.0	-5.9	3.1	50.9	15.1
Share price	16.5	-4.6	4.5	55.2	18.3
MSCI EM Latin America	9.9	-4.4	1.6	52.0	14.8
US Dollars:
Net asset value^	12.2	-10.4	2.6	26.8	-0.3
Share price	15.7	-9.2	3.9	30.4	2.3
MSCI EM Latin America	9.2	-8.9	1.0	27.8	-0.7

^cum income

Sources: BlackRock, Standard & Poor’s Micropal

At month end
Net asset value – capital only:	510.84p
Net asset value – cum income:	511.78p
Share price:	448.00p
Total Assets#:	£217.4m
Discount (share price to cum income NAV):	12.5%
Average discount* over the month – cum income:	14.5%
Net gearing at month end**:	9.7%
Gearing range (as a % of net assets):	0-25%
Net yield##:	3.5%
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 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 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 based on the Company’s share price at 31 July 2018 converted to US dollars at the exchange rate on 31 July 2018, would be 5.2%.

*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	65.3	64.4		55.4
Mexico	27.3	27.0		27.1
Chile	4.0	3.9		9.9
Argentina	3.0	3.0		0.0
Colombia	1.7	1.7		4.0
Peru	0.0	0.0		3.6
Net current liabilities (inc. fixed interest)	-1.3	0.0		0.0
	-----	-----		-----
Total	100.0	100.0		100.0
	-----	-----		-----

Sector	% of Equity Portfolio *	% of Benchmark
Financials	30.2	30.4
Materials	21.4	19.1
Consumer Staples	11.2	16.0
Consumer Discretionary	10.5	6.1
Energy	8.2	8.9
Telecommunication Services	7.2	6.2
Industrials	7.0	6.0
Utilities	1.2	4.5
Information Technology	1.1	0.8
Health Care	1.0	0.6
Real Estate	1.0	1.4
	-----	-----
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	9.6	7.5
Banco Bradesco	Brazil	7.7	5.6
Itau Unibanco	Brazil	7.6	6.3
Petrobras	Brazil	7.0	6.1
America Movil	Mexico	5.6	4.7
Femsa	Mexico	4.2	3.1
Grupo Financiero Banorte	Mexico	4.2	2.9
Walmart de Mexico y Centroamerica	Mexico	3.4	2.5
B3	Brazil	3.3	2.1
Cemex SAB	Mexico	2.8	1.8

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

For the month of July 2018, the Company’s NAV rose by 13.0%* with the share price rising by 16.5%*. The Company’s benchmark, the MSCI EM Latin America Index, rose by 9.9%** (all performance figures are in sterling terms with dividends reinvested).

All country allocations contributed positively in July supported by currency appreciation across the region. The Company’s ability to employ gearing also contributed positively as we were able to more effectively capture the regional rebound from June lows. Our overweight to and selection within Brazil was the period’s top contributor as the market moved higher on strong earnings and news that the ‘centrão’ (a group of five medium sized centre parties) had pledged support for Geraldo Alckmin’s presidential bid, who is viewed as being more market friendly than the right-wing Jair Bolsanaro and populist candidate Ciro Gomes. Brazilian banks, Banco Bradesco and Itau Unibanco, were among the top performers following the broader market’s rebound. Both names remain in line with reaching consensus full year guidance as they show signs of successfully changing their asset mix, adjusting to the lower interest rate environment. Brazilian long steel producer, Gerdau, also performed well amid commodity price strength and a domestic recovery in demand. Our underweight to Colombia also benefitted the Company as the country underperformed amid oil price weakness. From a stock specific perspective, overweights to Brazilian pulp producer, Suzano Papel e Celulose, and Chilean copper miner Antofagasta, were the worst relative performers in July as both names underperformed the index despite ending the month in positive territory.

Broad positioning remained relatively unchanged in July. We topped up some existing positions in Brazil, as market friendly candidate Alckmin gained increased support on the campaign trail. We specifically added to government sensitive Banco Bradesco, Itau Unibanco, and Petrobras on weakness. We also continued to ramp up our position in Bancolombia. On the other hand we trimmed exposure to Mexican telecom, America Movil, following strong performance and exited Brazilian utility, CESP, on marginally negative news that the privatization price for the upcoming October auction may have a lower floor than expected. The Company ended the month being overweight Brazil while being underweight Chile, Peru. We are relatively neutral Mexico and Colombia, the latter of which should see fiscal improvement on the back of stable oil prices at these levels. 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.

Brazil remains our top overweight - while Brazilian risk assets are likely to remain volatile through the October election, we continue to look to take advantage of the opportunities presented by falling markets.  Our view remains that a government promoting continuity to the current reform process will be elected, and represents a positive indicator for consistent economic growth, and therefore stock market performance.  Meanwhile, after a landslide victory for both the presidency and in congress, all eyes remain on how much the incoming Mexican administration will flow through into practice the campaign rhetoric of Andres Manuel Lopes Obrador (AMLO). Our sentiment and positioning here have improved as we expect a less controversial administration in year one with a more tempered agenda initially. We continue to underweight 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 that the incoming administration is facing reduced fiscal pressure as a result of current oil prices.

Sources:
*BlackRock as at 31 July 2018
** Datastream as at 31 July 2018

17 August 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.