BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC All information is at 31 August 2012 and unaudited. Performance at month end with net income reinvested One Three One Three ^^^Since Five month months year years 31.03.06 years Sterling: Net asset value^ -0.4% 2.7% -12.3% 17.1% 72.1% 29.8% Net asset value ^^ -0.1% 3.6% -9.3% 17.0% 71.9% 29.6% Share price -2.9% 0.0% -13.9% 9.5% 63.3% 23.8% MSCI EM Latin America -1.9% 1.5% -7.5% 20.7% 89.5% 41.9% US Dollars: Net asset value^ 1.0% 6.0% -14.4% 14.1% 57.6% 2.2% Net asset value^^ 1.3% 6.9% -11.4% 14.0% 57.4% 2.1% MSCI EM Latin America -0.5% 4.7% -9.7% 17.6% 73.5% 11.7% ^cum income - bond at par ^^cum income - bond at fair value since 15 September 2009 ^^^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: 546.12p Net asset value - cum income: 553.97p Net asset value - capital only and with bond at fair value: 544.13p Net asset value - cum income and with bond at fair value: 551.98p Net asset value - capital with bond converted: 544.13p Net asset value - cum income and with bond converted: 551.98p Share price: 500.75p Total Assets*: £280.33m Discount(share price to cum income NAV with bond at fair value***): 9.3% Average discount** over the month - cum income: 9.9% Gearing**: 9.6% Net yield: 3.8% Ordinary shares in issue~: 41,574,247 *Total assets include current year revenue. **Gearing is calculated using debt at par, less cash and cash equivalents and fixed interest investments as a percentage of net assets. ***To the extent that the US dollar Net Asset Value on an income inclusive with bond at fair value basis exceeds the current conversion price of $8.98 for the convertible bond, the discount is calculated using the share price as a percentage of the fully diluted cum income Net Asset Value in sterling terms. Where the Net Asset Value on an income inclusive with bond at fair value basis does not exceed the conversion price, the discount is calculated using the share price as a percentage of the cum income Net Asset Value with bond at fair value. ~Excluding 2,267,065 shares held in treasury. Geographic Regional Exposure % Total Assets Brazil 60.7 Mexico 19.6 Chile 5.3 Colombia 2.1 Peru 1.6 Panama 1.3 Argentina 0.8 Net current assets (inc.Fixed interest) 8.6 ----- Total 100.0 ----- Ten Largest Equity Investments (in percentage order) Company Country of Risk % of Company América Móvil Mexico 8.0 Vale Brazil 7.9 Petrobrás Brazil 7.7 Banco Bradesco Brazil 5.3 Fomento Economico Mexicano Mexico 4.4 Itau Unibanco Brazil 4.3 Groupo Televisa Mexico 3.5 CCR Brazil 2.9 AmBev Brazil 2.8 Banco do Brasil Brazil 2.2 Commenting on the markets, Will Landers, representing the investment Manager noted; Performance For the month of August 2012, the Company posted a 0.4% fall in its undiluted NAV while the shares fell by 2.9% (all in sterling) and the Company's benchmark, the MSCI EM Latin America Index returned -1.9%. Positive contributions to performance during the month stemmed primarily from stock selection in Brazil and, an off-benchmark position in Colombia via Pacific Rubiales. The largest individual positive contributors for the month included Banco Bradesco, toll road operator CCR, oil & gas producer Queiroz Galvao and Banco do Brasil. Weighing on performance was stock selection in Colombia, which was somewhat offset by our underweight position in the country. Individual negative contributions to performance for the month came from Vale, software name Totvs, Bancolombia and Cemig. Transactions/Gearing During the month we increased exposure to Banco Itau and Brazilian steel name Gerdau. We also initiated a position in Chilean chemical name Soquimich based on its growth potential and unique asset base. These moves were partially funded by reducing exposure to Vale given concerns about China, and related falling iron ore prices. We also reduced exposure to telecoms in Mexico and Brazil due to concerns about the challenging regulatory landscape. Finally, we exited Peruvian gold name Buenaventura. Positioning The portfolio's key overweight is Brazil where we are positioned to benefit from a recovery in the domestic market during the second half of 2012 and into 2013. We are just beginning to see the positive impact on the Brazilian domestic economy from the interest rate easing cycle which started just over 1 year ago. Interest rates in Brazil are at the lowest levels ever seen in Brazil's modern history. While we are underweight the Mexican equity market, we have looked to increase where possible, exposure to companies that should benefit from the expected reform agenda. We continue to be underweight the Andean countries given lower liquidity and rich valuations. 14 September 2012 ENDS Latest information is available by typing www.brla.co.uk 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. END -0- Sep/14/2012 10:53 GMT
BLACKROCK LATIN AMERICAN INVESTMENT TRUST PLC: Portfolio Update
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