Portfolio Update

MERRILL LYNCH LATIN AMERICAN INVESTMENT TRUST PLC

All information is at 31 August 2007 and unaudited.

Performance at month end is calculated with net income reinvested

                                       One      Three       *Since           One         Three          Five     
                                                                                                                 
                                    Month     Months      31.03.06          Year         Years         Years     
                                                                                                                 
Sterling:                                                                                                        
                                                                                                                 
Net asset value                     -3.7%       -2.2%        32.6%         46.0%        170.8%        344.4%     
                                                                                                                 
Share price                         -5.5%       -3.7%        31.8%         44.2%        233.2%        464.7%     
                                                                                                                 
MSCI EM Latin American              -2.2%       -0.8%        33.5%         45.3%        215.0%        395.4%     
                                                                                                                 
US Dollars:                                                                                                      
                                                                                                                 
Net asset value                     -4.4%       -0.3%        54.2%         54.8%        203.7%        478.2%     
                                                                                                                 
MSCI EM Latin American              -2.9%        1.2%        55.3%         54.0%        253.2%        546.0%     
                                                                                                                 
                                                                                                                 
                                                                                                                 
Sources:  BlackRock MLIM, Standard & Poor's Micropal.                                                            
                                                                                                                 
*Date which BlackRock MLIM took over the investment management of the Company.                                   
                                                                                                                 

 

At month end                                                                           
                                                                                       
Net asset value - capital only:                                              469.44p   
                                                                                       
Net asset value* - cum income:                                               472.06p   
                                                                                       
Share price:                                                                 449.80p   
                                                                                       
Total assets:                                                                £224.4m   
                                                                                       
Discount:                                                                       4.2%   
                                                                                       
Gearing:                                                                           -   
                                                                                       
Net yield:                                                                      1.0%   
                                                                                       
Ordinary shares in issue:                                                 47,789,753   
                                                                                       
*Includes 8 months net revenue equal to 2.62p (after payment of 1.24p (2.5c)           
interim dividend).                                                                     
                                                                                       

 

Geographical Regional Exposure                                            % Total Assets
                                                                                        
Brazil                                                                              66.1
                                                                                        
Mexico                                                                              24.7
                                                                                        
Chile                                                                                6.2
                                                                                        
Argentina                                                                            2.1
                                                                                        
Colombia                                                                             0.6
                                                                                        
Panama                                                                               0.5
                                                                                        
Net current liabilities                                                            (0.2)
                                                                                        
                                                                                   -----
                                                                                        
Total                                                                              100.0
                                                                                   -----
                                                                                        

 

                                                                                        
Ten Largest Equity Investments (in alphabetical order)                                  
                                                                                        
Company                                            Country of Risk                      
                                                                                        
AmBev Cia De Bebidas                               Brazil                               
                                                                                        
America Movil                                      Mexico                               
                                                                                        
Banco Bradesco                                     Brazil                               
                                                                                        
Banco Itau Holdings                                Brazil                               
                                                                                        
Cia Vale do Rio Doce                               Brazil                               
                                                                                        
Grupo Televisa                                     Mexico                               
                                                                                        
Petroleo Brasileiro                                Brazil                               
                                                                                        
Tenaris                                            Argentina                            
                                                                                        
Unibanco Uniao Bco                                 Brazil                               
                                                                                        
Usiminas                                           Brazil                               
                                                                                        

 

 

Commenting on the markets, Will Landers, representing the Investment Manager   
noted:                                                                         
                                                                               
                                                                               
                                                                               
Performance                                                                    
                                                                               
For the month of August 2007, the Merrill Lynch Latin American Investment Trust
posted a 4.4% NAV decline while the share price fell by 6.2% (all in USD       
terms).  This compares with the 2.9% decline posted by the Company's benchmark,
the MSCI EM Latin America Free Index.                                          
                                                                               
                                                                               
                                                                               
The underperformance during the volatile month of August was for the most part 
related to our overweight position in Brazil.  In a month that saw a 22% fall  
in the Brazilian market through August 16th and a 23% recovery from that point 
to the month-end, many of the Company's small cap positions (representing over 
14% of the Company's assets versus less than 9% for the benchmark)             
underperformed during the rally in the second half of the month.  The other    
countries were not significant contributors to performance.                    
                                                                               
                                                                               
                                                                               
Transactions/Gearing                                                           
                                                                               
Our activity during the month of August was focused on fundamentals and not a  
reaction to the market volatility.  We decreased our overweight position in    
Brazil slightly, reducing our exposure to homebuilders, steel and pulp sectors,
while redeploying some of these funds into utilities and the iron ore/mining   
sector.  We also increased our underweight position in Mexico, reducing our    
exposure to America Movil and Cemex, the latter due to concerns regarding its  
exposure to the US housing sector.  Finally, we increased our position in      
Tenaris in Argentina given the sell off and our expectations that 2008 will be 
an exceptional year for the company.  We did not make significant changes to   
other countries' positions, and gearing remained at zero.                      
                                                                               
                                                                               
                                                                               
Positioning                                                                    
                                                                               
We have not revised our positive investment case for Latin America due to the  
volatility experienced in August.  While liquidity may be scarcer, Latin       
America continues to stand out as an area experiencing good earnings growth and
attractive trading multiples, in a macro environment that has never been as    
strong and ready to deal with international market fluctuations.  Our base case
is that the US slowdown will not result in a significant detraction to global  
growth, thus giving continuity to strong commodity prices, and therefore       
continuing to fuel Latin America's trade figures.  This being the case, Brazil 
is still the best performing country in the region.  Brazilian companies should
post strong results in the second half of 2007, the Brazilian Central Bank     
should ease interest rates at least once more in 2007 and a further 100 basis  
points in 2008, and the domestic economy should continue to expand at a strong 
pace.  Mexico is the economy most hurt by the US slow down, and we therefore   
maintain a large underweight position in Mexico.  Valuations have not reached  
cheap enough levels in Chile and Peru for us to change our underweight position
in those two countries.  Tenaris represents the bulk of our Argentine weight,  
being more a company-specific investment than a country call.                  
                                                                               
                                                                               
                                                                               
Latest information is available by typing www.blackrock.co.uk/its on the       
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).                                                                     
                                                                               
17 September 2007