Portfolio Update

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC
All information is at30 November 2016 and unaudited.

Performance at month end with net income reinvested
 

	One month	Three months	One year	Three years	Five years	^^Since 31.03.06
Sterling:
Net asset value^	-13.7	0.9	44.0	1.3	-7.8	63.9
Share price	-14.0	-0.1	36.2	-1.8	-10.1	50.6
MSCI EM Latin America	-12.6	2.2	50.3	1.4	-7.1	79.7
US Dollars:
Net asset value^	-11.7	-3.8	19.4	-22.7	-26.7	18.2
Share price	-12.0	-4.8	12.9	-25.1	-28.5	8.6
MSCI EM Latin America	-10.6	-2.5	24.7	-22.7	-26.2	29.5

^cum income

^^Date which BlackRock took over the investment management of the Company.

Sources: BlackRock, Standard & Poor’s Micropal
 

At month end
Net asset value – capital only:	442.55p
Net asset value – cum income:	451.55p
Share price:	387.75p
Total Assets#:	£184.6m
Discount (share price to cum income NAV):	14.1%
Average discount* over the month – cum income:	13.7%
Net gearing at month end**:	3.3%
Gearing range (as a % of net assets):	0-25%
Net yield##:	2.3%
Ordinary shares in issue***:	39,369,620
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.

*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 2,071,662 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 2015.

Geographic Exposure
 

	% of Total Assets	% of Equity Portfolio *	MSCI EM Latin American Index
Brazil	64.9	65.2	58.3
Mexico	23.7	23.8	26.3
Peru	4.8	4.8	3.0
Argentina	3.3	3.4	0.0
Chile	1.6	1.6	9.2
Colombia	1.1	1.2	3.2
Net current assets (inc.Fixed interest)	0.6	0.0	0.0
	-----	-----	-----
Total	100.0	100.0	100.0
	-----	-----	-----

Sector	% of Equity Portfolio *	% of Benchmark
Financials	29.7	29.8
Consumer Staples	23.4	18.1
Materials	13.8	15.5
Energy	13.3	9.7
Industrials	5.2	5.9
Utilities	4.1	6.0
Information Technology	3.6	1.9
Consumer Discretionary	3.1	5.8
Telecommunication Services	3.0	5.5
Real Estate	0.8	1.4
Health Care	0.0	0.4
	-----	-----
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
Petrobras	Brazil	9.5	6.7
Itau Unibanco	Brazil	8.9	6.5
Banco Bradesco	Brazil	8.0	6.1
AmBev	Brazil	4.9	4.6
Vale	Brazil	4.9	4.9
Femsa	Mexico	3.8	2.8
BM&F Bovespa	Brazil	3.6	1.6
Grupo Financiero Banorte	Mexico	3.4	2.3
BRF	Brazil	3.2	1.8
Walmart de Mexico	Mexico	3.1	1.9

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

Performance

For the month of November 2016, the Company’s NAV fell by 13.7% and the share price fell by 14.0% while the benchmark, the MSCI EM Latin America Index, fell by 12.6% (all in sterling terms).

An overweight to Peru was the largest contributor to returns after Peru was the only Latin American country to post a positive return for the month due to solid economic figures and business confidence.  An overweight to off-benchmark Argentina also added to returns.  The largest individual contributor to performance was an overweight to Grupo Mexico.  The stock benefitted from the commodity price rally after the US election, during which copper prices advanced 18.9%.  An overweight to Peruvian bank Credicorp also contributed positively for the month.

Stock selection in Brazil was the primary detractor from returns.  An underweight to Chile, which was a relative outperformer in the region, weighed on returns.  Cash, which averaged 3.2% during the month also detracted from performance.  An overweight to Petrobras weighed on returns as the stock followed the broader trend seen throughout emerging markets following the Trump victory.  An overweight to Banco Bradesco also detracted from performance.

Transactions/Gearing

During the month we continued to build our position in Vale given our more positive view on iron ore/coal prices.  This was partially funded by exiting Buenaventura which had reached our price target and from profit taking in Grupo Mexico.  We added selectively to names in both Brazil and Mexico following the post-US election sell-off.  Elsewhere in the fund we reduced exposure to properties in Mexico.  We initiated a position in Hypermarcas following a positive meeting with management.  We also initiated a position in Brazilian utility CESP on news that the Sao Paulo government is initiating its privatization process

Net gearing was approximately 3.3% at the end of November.

Positioning

We enter the last month of the year maintaining our overweights in Brazil, Peru and off-benchmark Argentina and underweights in Mexico, Chile and Colombia.  Despite volatility, Brazil’s quest to stabilize its economy with a return to sustainable economic growth is moving forward via fiscal reform and the creation of an environment suitable for a long-lasting easing cycle by the Central Bank. Peru should be among the fastest growing economies in Latin America in 2017 led by infrastructure investments, while Argentina continues on its path of re-establishing economic stability.  We are watching Mexico closely as we look for clarity on US policy regarding trade and immigration following the election of Donald Trump in the US.  Chile and Colombia remain unattractive at this stage.

15 December 2016

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.