REG-BlackRock Latin American Investment Trust Plc: Portfolio Update

Blackrock Latin American Investment TrustAnnouncement

27/02/2026 07:02

The information contained in this release was correct as at 31 January 2026.  
                   Information on the Company’s up to date net asset values
can be found on the London Stock Exchange Website at

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
          

 

BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC (LEI - UK9OG5Q0CYUDFGRX4151     
                         )

All information is at                                  31 January 2026        
                       and unaudited.          
           

Performance at month end with net income reinvested                    
                      

                         One       Three      One      Three     Five      
                          month     months     year     years     years    
                          %         %          %        %         %        
 Sterling:                                                                 
 Net asset value^        13.9      14.2       47.3     30.1      59.3      
 Share price             20.0      28.6       65.9     47.9      75.1      
 MSCI EM Latin America   13.0      18.4       47.6     42.4      87.3      
  (Net Return)^^                                                           
 US Dollars:                                                               
 Net asset value^        16.2      19.3       62.7     45.0      59.2      
 Share price             22.5      34.3       83.3     64.8      75.0      
 MSCI EM Latin America   15.3      23.6       63.0     58.8      87.2      
  (Net Return)^^                                                           

 

^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.

Sources: BlackRock, Standard & Poor’s Micropal

 

At month end

 Net asset value - capital only:                                         478.15p     
 Net asset value - including income:                                     484.73p     
 Share price:                                                            479.00p     
 Total assets#:                                                          £155.8m     
 Discount (share price to cum income NAV):                               1.2%        
 Average discount* over the month – cum income:                          3.9%        
 Net gearing at month end**:                                             8.9%        
 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):  29,448,641  
 Ongoing charges***:                                                     1.23%       

 

#Total assets include current year revenue.

##The yield of 4.2% is calculated based on total dividends declared in the
last 12 months as at the date of this announcement as set out below (totalling
26.59 cents per share) and using a share price of 657.31 US cents per share
(equivalent to the sterling price of 479.00 pence per share translated in to
US cents at the rate prevailing at 31 January 2026 of $1.3723 dollars to
£1.00).

 

2025 Q1 Interim dividend of 5.55 cents per share (Paid on 15 May 2025)

2025 Q2 Interim dividend of 6.74 cents per share (Paid on 12 August 2025)

2025 Q3 Interim dividend of 7.06 cents per share (Paid 05 November 2025)

2025 Q4 Interim dividend of 7.24 cents per share (Payable 06 February 2026)


*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.

*** The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating expenses
excluding finance costs, direct transaction costs, custody transaction
charges, VAT recovered, taxation and certain non-recurring items for the year
ended 31 December 2024.

 

 

 Geographic Exposure                       % of Total Assets  % of Equity Portfolio *  MSCI EM Latin America Index  
 Brazil                                    62.3               62.4                     59.7                         
 Mexico                                    23.6               23.6                     25.1                         
 Peru                                      7.3                7.3                      5.4                          
 Multi-Country                             2.8                2.9                      0.0                          
 Argentina                                 2.0                2.0                      0.0                          
 Chile                                     1.8                1.8                      7.6                          
 Columbia                                  0.0                0.0                      2.2                          
 Net current assets (inc. fixed interest)  0.2                0.0                      0.0                          
                                           -----              -----                    -----                        
 Total                                     100.0              100.0                    100.0                        
                                           =====              =====                    =====                        

 

^Total assets for the purposes of these calculations exclude bank overdrafts,
and the net current assets figure shown in the table above therefore excludes
bank overdrafts equivalent to 9.1% of the Company’s net asset value.

 

 Sector                  % of Equity Portfolio*  % of Benchmark*  
 Financials              24.4                    35.1             
 Materials               22.2                    20.2             
 Industrials             17.2                    9.7              
 Consumer Staples        12.1                    11.0             
 Consumer Discretionary  11.5                    2.1              
 Energy                  6.3                     8.2              
 Real Estate             2.3                     1.5              
 Information Technology  2.0                     0.4              
 Health Care             2.0                     0.7              
 Utilities               0.0                     7.8              
 Communication Services  0.0                     3.3              
                         -----                   -----            
 Total                   100.0                   100.0            
                         =====                   =====            

 

*                                 excluding                                net
current assets & fixed interest


 Company                              Country of Risk  % of                 % of          
                                                         Equity Portfolio     Benchmark   
 Vale:                                Brazil                                              
 ADS                                                   8.3                                
 Equity                                                1.3                  6.8           
 Petrobrás:                           Brazil                                              
 Equity                                                0.9                                
 Equity ADR                                            3.5                  3.3           
 Preference Shares ADR                                 1.9                  3.9           
 Localiza Rent A Car                  Brazil                                              
 Equity                                                4.8                  1.0           
 Preference Shares                                     0.2                                
 Southern Copper                      Peru             5.0                  2.0           
 Grupo Aeroportuario del Sureste      Mexico           4.4                  0.7           
 Walmart de México y Centroamérica    Mexico           4.2                  1.9           
 Grupo Financiero Banorte             Mexico           3.7                  3.3           
 Cyrela Brazil Realty:                Brazil                                              
 Equity                                                3.3                                
 Preference Shares                                     0.3                                
 StoneCo Ltd                          Brazil           3.5                  0.4           
 Nu Holdings Ltd                      Brazil           3.4                  7.0           

Commenting on the markets, Sam Vecht and Gordon Fraser, representing the
Investment Manager noted;

 

The Company’s NAV rose by +16.2% in January, outperforming the benchmark,
the MSCI Emerging Markets Latin America Index, which returned +15.3% on a net
basis over the same period. All performance figures are in US dollar terms
with dividends reinvested.           

 

Brazil had a very strong month, rising +16.6% and taking the Bovespa Index to
a record high, helped by solid foreign investor buying. Inflation is still
above target, but with growth slowing, we could see softer inflation ahead,
which may allow the central bank to start cutting rates later in Q1. Mexico
also performed well, up +9.5%, though rate cuts there are likely on hold until
mid year. Colombia was the standout, finishing the month up +27.4%.

 

At the portfolio level, stock selection in Brazil was the largest contributor.
Our overweight position to Peru also helped. On the other hand, stock
selection in Mexico and an off-benchmark exposure to Argentina detracted.

 

From a security lens, our overweight position to Brazilian iron ore producer,
Vale, was the largest contributor. The stock rose after the company regained
its position as the world’s biggest iron ore producer and reported record
2025 output. Peruvian copper miner, Southern Copper, was another strong
performer, helped by copper prices reaching new all-time highs in January.
Brazilian real estate developer, Cyrela, also did well. As a rate sensitive
name, the stock is expected to benefit once the long-awaited rate-cut cycle in
Brazil begins this year.

 

On the flipside, a few Mexican stocks detracted from performance. The biggest
detractor was Mexican long-haul airline, Aeromexico, pulling back some gains
from a strong performance in December. Another detractor was Walmart Mexico.
The stock detracted on the back of increased competition within the retail
space. Vesta, an industrial real estate company, was a relative detractor as
it lagged the broader rally in Mexican equities over the month.

 

The portfolio remained largely unchanged in January. We took advantage of the
strong performance in Brazil to take profits on Vale. We also reduced our
holding in Brazilian stock exchange, B3 and increased Cyrela, where our
fundamental conviction is higher and as the stock has corrected ~25% after its
post dividend peak. Brazil remains our largest portfolio overweight, whilst
Chile is the largest underweight.           

 

Outlook

 

We remain constructive on Latin American equities. Strong inflows, a softer US
dollar and resilient commodity prices have continued to support the region
into 2026, while valuations remain reasonable despite a powerful start to the
year.

 

In Brazil, the early year rally has been driven by a supportive global
backdrop with a weaker USD and ongoing offshore inflows. Domestically, the
focus is shifting toward the 2026 election and the policy path; with headline
and core inflation at multi month lows, and high real rates coinciding with
softer U.S. growth, we believe the monetary inflection point could come in the
first half of the year, easing liquidity conditions and supporting the market
further.

 

In Mexico, USMCA related trade noise may weigh on sentiment, but nearshoring
remains a structural tailwind given deep integration with U.S. supply chains.
Policy is still restrictive in real terms, leaving scope for easing if
inflation continues to cooperate.           

 

While global uncertainty and trade-related risks persist, the region still
offers a compelling diversification profile. Relatively high real rates
provide policy optionality, and valuations look particularly attractive versus
developed markets.

 

26 February 2026

 

ENDS

 

Latest information is available by typing www.blackrock.com/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.

 Release  (https://mb.cision.com/Main/22400/4313638/3955597.pdf)  



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