DECEMBER 2017 Key risk factors Capital at Risk. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. The Company invests in economies and markets which may be less developed. Compared to more established economies, the value of investments may be subject to greater volatility due to increased uncertainty as to how these markets operate. Overseas investments will be affected by currency exchange rate fluctuations. The Company may from time to time utilise gearing. A fuller definition of gearing is given in the glossary. Performance A fuller definition of ongoing charges, which includes the annual management fee, is given in the Glossary. Details of the management fee are given in the fund information table overleaf. The Company does not have a performance fee. The performance of the Company s portfolio, or NAV performance, is not the same as share price performance and shareholders may not realise returns which are the same as NAV performance. The latest performance data can be found on the BlackRock Investment Management (UK) Limited website at blackrock.co.uk/brla. BlackRock Latin American Investment Trust plc Company objective The Company seeks to secure long-term capital growth and an attractive total return primarily through investing in quoted securities in Latin America. Annual performance to the last quarter end (as at 31 December) Sterling 31/12/16 31/12/17 31/1215 31/12/16 Cumulative performance (as at 31/12/17) 30/09/14 31/12/15 31/12/13 31/12/14 31/12/12 31/12/13 Net Asset Value 18.1 49.2-26.9-3.7-14.8 Share price 19.9 45.9-26.6-4.0-13.9 Benchmark 2 13.4 56.8-26.8-6.6-14.8 Sterling 1M 3M 1Y 3Y 5Y Since 31/03/06 1 Net Asset Value 5.6-2.6 18.1 28.7 5.6 94.8 Share price 5.2-3.6 19.9 28.3 6.1 83.3 Benchmark 2 4.6-3.0 13.4 30.2 3.7 108.0 US dollars 1M 3M 1Y 3Y 5Y Since 31/03/06 1 Net Asset Value 5.5-1.8 29.3 11.7-12.0 52.2 Share price 5.1-2.8 31.3 11.4-11.6 43.2 Benchmark 2 4.5-2.2 24.2 12.9-13.7 62.2 The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Net Asset Value (NAV) performance is not the same as share price performance, and shareholders may realise returns that are lower or higher than NAV performance. The above Net Asset Value (NAV) performance statistics are based on an NAV with income included with any dividends reinvested on the ex-dividend date, net of ongoing charges and any applicable performance fee. Share price performance figures are calculated on a mid market basis in sterling terms with income reinvested on the ex-dividend date. Source: BlackRock, Datastream 1 BlackRock took over the investment management of the Company with effect from 31 March 2006. 2 The Company s is the MSCI EM Latin American Index. blackrock.co.uk/brla
Comments from the portfolio manager: Please note that the commentary below includes historic information in respect of the performance of portfolio investments, index performance data and the Company s NAV and share performance. The figures shown relate to past performance. Past Performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. For the month of December 2017, the Company s NAV rose by 5.6 with the share price rising by 5.2. The Company s, the MSCI EM Latin America Index, rose by 4.5 (all performance figures are in sterling terms with income reinvested and are net of ongoing charges). Selection in Brazil was the primary driver of returns in the fourth quarter of 2017 as confidence indicators continue to improve and inflation surprised to the downside, resulting in yet another 50 basis points cut to the SELIC (Sistema Especial de Liquidação e Custodia, the Brazilian Central Bank interest rate) in December. This has resulted in 675 basis points being trimmed off the headline rate this year with expectations for at least one more cut in the first quarter of 2018. Vale was the quarter s top performing stock, supported by iron ore strength, on the back of global supply discipline, as well as the conclusion of the company s share unification. Our off allocation to Argentina continued to benefit the strategy amid improving investor confidence over the continuation of President Macri s pro-reform agenda. Lenders, Supervielle and Galicia, as well as internet retailer, Mercadolibre, were among the top contributors moving in line with the market. Our underweight to Mexico also contributed to relative performance as the uncertainty over domestic politics remains an overhang and the Peso continued to weaken into year-end. On the other hand, our underweight to Chile was the quarter s largest detractor as both the currency and market surged in December following the presidential election run-off, making up for November declines. From a stock specific perspective, our lack of positioning in Mexican Insurer, Gentera, Chilean energy name, Empresas Copec, and Colombia s Ecopetrol were the top detractors over the period. During the quarter we shifted our Brazilian positioning, replacing some of our financials exposure with more domestic consumption related names. Specifically, we topped up our position in digitally-oriented retailer Magazine Luiza, while also initiating positions in CIA Hering and B2W Digital. On the other hand, we exited our positions in BRF after the surprise departure of the firm s CEO, as well as toll road operator, CCR, given the firm s lack of success in executing its merger and acquisition pipeline due to increased competitiveness for distressed Brazilian infrastructure assets. We have also been selectively adding to our Mexican positioning. We notably added to our America Movil allocation, amid an improving regulatory and competitive landscape. Similarly, we initiated a position in airport operator GAP, benefitting from growth in Mexican air travel. The Company ended the period being overweight Brazil, Mexico, and Peru while being underweight Chile and Colombia. We also maintain an off- allocation to Argentina. At the sector level, we are overweight the domestic consumer and energy, while being underweight utilities and industrials. As we enter 2018, our positioning and outlook remain relatively unchanged from the last quarter of 2017. Despite going through yet another round of political headwinds the primary drivers for Brazilian equities should remain the same: a) persistently low inflation has allowed the Central Bank to continue it easing cycle, which has set the foundation for the needed economic recovery (the Central Bank cut rates another 50 basis points in December, bringing the SELIC down to 7; the market has seen 725 basis points of easing so far during the current cycle, resulting in the SELIC hitting its lowest point in history); and b) continued progress on the reform agenda, especially pension reform (with a focus on minimum retirement age implementation), which should help to bring stability to government accounts in the medium term. We expect the reform process to be the focus during the first quarter of the year, shifting to elections as the process starts officially in April. Meanwhile, the recent round of NAFTA (North American Free Trade Agreement) negotiations illustrated that the process will be long, reiterating our cautious view on Mexican growth, and therefore our underweight - uncertainties regarding the 1 July 2018 presidential election add to our conviction on such positioning. Should the apparent selection of Jose Antonio Meade as the PRI s (Institutional Revolutionary Party) candidate become a competitive bid, this would force us to revisit our positioning as it could bring near term positive momentum to Mexican equities. We continue to underweight Chile due to rich valuations and lack of free-float liquidity (President Piniera s election seems mostly priced in), and despite slower than expected progress on the infrastructure front, we continue to favour Peru among its Andean neighbours. Argentina remains another top country for the strategy as fundamentals persist, with October mid-term elections providing support for a continuation of President Macri s reform agenda. Sources: (1) BlackRock as of 14 December 2017 and (2) JPM as of 14 December 2017. Information correct as at 21 November 2017 unless otherwise stated. Any opinions or forecasts represent an assessment of the market environment at a specific time and are not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research, investment advice or a recommendation. The specific companies identified and described above do not represent all of the companies purchased or sold, and no assumptions should be made that the companies identified and discussed were or will be profitable. This should not be construed as investment advice or an investment recommendation of those companies.
Sector allocations (as at 31/12/17) equity portfolio* Financials 30.2 29.8 Consumer Staples 15.4 17.0 Materials 14.9 16.4 Consumer Discretionary 13.8 5.7 Energy 8.8 8.6 Telecommunication Services 6.9 6.4 Industrials 5.7 6.3 Utilities 2.1 5.8 Real Estate 1.3 1.5 Information Technology 0.5 1.4 Health Care 0.4 1.1 Total 100.0 100.0 Allocations are as at the date shown and do not necessarily represent current or future portfolio holdings. Ten largest investments (as at 31/12/17) Company Country of risk equity portfolio Vale Brazil 8.1 6.0 Itau Unibanco Brazil 7.4 6.5 Banco Bradesco Brazil 6.7 6.3 Petrobras Brazil 6.5 5.4 America Movil Mexico 5.1 4.6 AmBev Brazil 5.1 4.7 Femsa Mexico 3.9 2.9 B3 Brazil 3.0 2.2 Credicorp Peru 2.7 2.2 Grupo Financiero Banorte Mexico 2.6 2.1 Holdings are as at the date shown and do not necessarily represent current or future portfolio holdings. The specific companies identified and described above do not represent all of the companies purchased or sold, and no assumptions should be made that the companies identified and discussed were or will be profitable. This should not be construed as investment advice or investment recommendation of those companies. A full disclosure of portfolio investments for the Company as at 30 September 2017 has been made available on the Company s website the link given below: http://www.blackrock.co.uk/individuals/literatur e/policies/brlait-portfolio-disclosure.pdf Fund information (as at 31/12/17) Net asset value (capital only) 520.44p Net asset value (including income) 525.05p Share price 460.00p Net gearing at end of month* 7.9 Gearing range (as a net assets) 0-25 Net yield** 2.5 Discount # 12.4 Average discount over the month (including income) # 12.8 Total assets (including current year revenue) 224.2m 2016 ongoing charges ratio ## 1.2 Issued capital ordinary shares (excluding 2,071,662 shares held in treasury) 39,369,620 *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 net yield is calculated using total dividends declared in the last 12 months (as at date of this factsheet) as a percentage of month end share price. The figures shown relate to past performance. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. #The discount is calculated using the NAV with income reinvested (expressed in sterling terms). ## Ongoing charges represent the management fee and all other operating expenses excluding interest as a average shareholders funds for the year ended 31 December 2016). Country allocations (as at 31/12/17) total assets equity portfolio* Brazil 64.1 64.4 57.7 Mexico 24.6 24.7 24.9 Argentina 4.3 4.3 0.0 Peru 3.8 3.8 3.3 Chile 1.9 1.9 10.6 Panama 0.5 0.5 0.0 Colombia 0.3 0.4 3.5 Net current assets (inc. Fixed interest) 0.5 0.0 0.0 Total 100.0 100.0 100.0 *Excluding net current assets/liabilities & fixed interest. Allocations are as at the date shown and do not necessarily represent current or future portfolio holdings.
Glossary of terms DISCOUNT/PREMIUM Investment trust shares frequently trade at a discount or premium to NAV. This occurs when the share price is less than (a discount) or more than (a premium) the NAV. The discount or premium is the difference between the share price (based on mid-market share prices) and the NAV, expressed as a percentage of the NAV. Discounts and premiums are mainly the consequence of supply and demand for the shares on the stock market. GEARING Investment companies can borrow to purchase additional investments. This is called gearing. It allows investment companies to take advantage of a long-term view on a sector or to take advantage of a favourable situation or a particularly attractive stock without having to sell existing investments. Gearing works by magnifying the company s performance. If a company gears up and then markets rise and the returns on the investments outstrip the costs of borrowing, the overall returns to investors will be even greater. But if markets fall and the performance of the assets in the portfolio is poor, then losses suffered by the investor will also be magnified. NET YIELD The net yield is calculated using total dividends declared in the last 12 months (as at date of this factsheet) as a percentage of month end share price. NAV (Net Asset Value) A company s undiluted NAV is its available shareholders funds divided by the number of ordinary shares in issue (excluding treasury shares), before making any adjustment for any potentially dilutive securities which the Company may have in issue, such as subscription shares, convertible bonds or treasury shares. A diluted NAV is calculated on the assumption that holders of any convertibles have converted, subscription shares have been exercised and treasury shares are re-issued at the mid-market price, to the extent that the NAV per share is higher than the price of each of these shares or securities and that they are 'in the money'. The aim is to ensure that shareholders have a full understanding of the potential impact on the Company s NAV if these instruments had been exercised on a particular date. ONGOING CHARGES RATIO Ongoing charges () = Annualised ongoing charges Average undiluted net asset value in the period Ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue, and which relate to the operation of the investment company as a collective fund, excluding the costs of acquisition/disposal of investments, financing charges and gains/losses arising on investments. Ongoing charges are based on costs incurred in the year as being the best estimate of future costs and include the annual management fee. TREASURY SHARES Treasury shares are shares that a company keeps in its own treasury which are not currently issued to the public. These shares don't pay dividends, have no voting rights and are not be included in a Company s total issued share capital amount for the purpose of calculating percentage ownership. Treasury stock may have come from a repurchase or buyback from shareholders, or it may have never been issued to the public in the first place. Treasury shares may be reissued from treasury to the public to meet demand for a company s shares in certain circumstances. NMPI Status The Company currently conducts its affairs so that its securities can be recommended by IFAs (Independent Financial Adviser) to ordinary retail investors in accordance with the FCA's (Financial Conduct Authority) rules in relation to nonmainstream pooled investments (NMPI) and intends to continue to do so for the foreseeable future. The securities are excluded from the FCA's restrictions which apply to non-mainstream pooled investments because they are shares in an investment trust.
Key company details Fund characteristics: Launch date July 1990 Date BlackRock took over management Dealing currencies Association of Investment Companies (AIC) sector Benchmark Traded Management: Alternative Investment Fund Manager (with effect from 2 July 2014) Portfolio manager Annual Management fee Want to know more? 31 March 2006 Sterling: US Dollar Latin America MSCI Latin EM America London Stock Exchange BlackRock Fund Managers Limited Will Landers 0.8 per annum of net asset value (the annual management fee forms part of the ongoing charges as disclosed in the Fund Information section). Financial calendar: Year end Results announced Annual General Meeting Dividends paid Fund codes: ISIN GB005058408 Sedol 0505840 Bloomberg Reuters Ticker 31 December September (half yearly) March (final) May October & May BRLA:LN BRLA.L BRLA/LON BlackRock Latin American Investment Trust plc will not invest more than 15 its gross assets in other closed-ended listed investment funds. BlackRock Latin American Investment Trust plc is traded on the London Stock Exchange and dealing may only be through a member of the Exchange. blackrock.co.uk/brla Broker services team: 08457 405405 Investor services team: 0800 445522 Important Information BlackRock has not considered the suitability of this investment against your individual needs and risk tolerance. To ensure you understand whether this product is suitable, please read the Key Features document or Key information Document (KID) and the current Annual and Half Yearly Financial Reports which are available on blackrock.co.uk/brla and which provide more information about the risk profile of the investment. We recommend you seek independent professional advice prior to investing. If after reading this factsheet you have any questions or would like any additional information, please contact your financial adviser or speak to our Investor Services Team. The Company is managed by BlackRock Fund Managers Limited (BFM) as the AIFM. BFM has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited. The Company s shares are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Company will not invest more than 15 its gross assets in other listed investment trusts. SEDOL is a trademark of the London Stock Exchange plc and is used under licence. The purpose of this factsheet is to provide summary information concerning the Company and does not constitute a recommendation to buy or sell its shares. If you are in any doubt as to the suitability of any of our funds for your investment needs, please contact your Financial Adviser. The Company s shares are traded on the London Stock Exchange and dealing may only be through a member of the Exchange. The Company has appointed BlackRock Fund Managers Limited as the Alternative Investment Fund Manager. SEDOL TM is a trademark of the London Stock Exchange plc and is used under licence. Issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Conduct Authority). Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Registered in England No. 2020394. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. 2017 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, ishares, BUILD ON BLACKROCK, SO WHAT DO I DO WITH MY MONEY and the stylized i logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.