Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by BlackRock Latin American. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

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The managers of BlackRock Latin America (BRLA), Ed Kuczma and Sam Vecht use BlackRock’s extensive resources to identify the best growth prospects in the Latin America region. The process leans on a mixture of proprietary macroeconomic research done by BlackRock’s large emerging markets team and stock specific research done by the team of four dedicated analysts focusing on the region. BRLA pays a dividend worth 1.25% of USD NAV each quarter - out of capital when necessary. This equates to c. 5% on an annualised basis, meaning the managers focus purely on identifying the best growth prospects.

Ed and Sam believe the main markets of the region – Brazil, Mexico and Chile – are at an early stage of a period of cyclical growth which makes them attractive investments at this time. As discussed in the portfolio section, combining various advantageous domestic developments, they believe the region could be a major beneficiary of the stimulus-driven global recovery from the pandemic. This is partly through the commodity producers that should benefit from infrastructure spend expected in the US and elsewhere. In the longer run, governments have been increasingly committing to transitioning away from fossil fuels, which creates huge extra demand for metals used in electric vehicles and alternative energy production.

BRLA also has exposure to companies benefitting from digitalisation and the growth of e-commerce. Having tilted the portfolio in this direction in 2020, as the pandemic spread, the managers have reduced this exposure and leant more towards commodities. BRLA’s portfolio now has a significant overweight to materials, including the producers of copper, lithium, iron ore and softer commodities such as paper and pulp. BRLA’s share price discount is 9.5%.

Analyst's View

Latin American equity markets have historically had high beta to global equity markets, as we discuss in the performance section. This could make BRLA an attractive investment at this point in the cycle. If the global recovery from the pandemic continues, as we hope it will, then there will be a number of tailwinds behind the trust. Aside from this economic recovery hopefully being accompanied by rising equity market, the high weight to commodities – to which BRLA is overweight – should help relative returns, as should the high overall weighting to classic ‘value’ stocks in the benchmark. These include banks that would do well from any boost in real economic activity, particularly if it led to modest rises in interest rates.

BRLA trades on a significant discount of 9.5%, although we note this is narrower than its five-year average and the trust did not often trade much closer to NAV even in the region’s last cyclical expansion.

BRLA is the only pure equity investment trust investing in the region. The other trust, Aberdeen Latin American Income Fund, invests in bonds and equities and is likely to be too small for professional investors (with a sub-£40m market cap). As such, BRLA is the only real closed-end option for them to access the region which has the distinctive, potentially performance-boosting features of investment trusts, having now taken on gearing and continues to trade on a discount to NAV.

bull bear
Should display high sensitivity to a global economic recovery
The fallout from the coronavirus pandemic is unpredictable in the short term
Offers a 5% annualised yield on NAV
Latin American markets and politics can be extremely volatile
An experienced management team with deep resources to draw on
Any increase of gearing brings greater exposure to falling markets as well as rising markets
Continue to Portfolio

Fund History

28 Jun 2024 BlackRock Latin American Investment trust: A Look Ahead for 2024
Latin American economies welcomed 2024 with new economic vigour. They have shaken off a legacy of economic mismanagement, and now look set to play a new role in the global economy. The region’s economies are broadening out from their traditional commodity base, bringing a dynamism to the region and a breadth of choice for investors...
27 Mar 2024 Results analysis: BlackRock Latin American
BRLA outperformed its benchmark and even the S&P 500 in 2023…
10 Nov 2023 LATAM rate cuts and central bank gold buying
We take a look at some of the highlights of our BlackRock event…
03 Nov 2023 BlackRock Latin American
Chris Brinkmann
Rewatch this webinar which was part of our October and November online event 'The Best of BlackRock'...
Watch Recording
11 Oct 2023 Fund Analysis
Managers’ ambition to take more active positions has so far paid off…
20 Sep 2023 Five questions about emerging markets
We track key developments in the diverse emerging markets universe…
01 Sep 2023 The next chapter for Latin America
Newsflow around Latin America reflects a changing picture…
21 Apr 2023 Latin America: first out of the blocks?
Latin America has been resilient over the past 12 months, and could be early to recover when the inflation environment shifts, says Christoph Brinkmann, portfolio manager on the BlackRock Latin American Investment trust...
06 Apr 2023 Results analysis: BlackRock Latin American
BRLA’s managers argue Latin America is in a strong position for 2023…
08 Mar 2023 The next supercycle
Our research suggests a structrual tailwind could support the prospects for commodities throughout the next decade...
17 Feb 2023 Never miss an opportunity to miss an opportunity
Is it LATAM’s time to shine?
25 Jan 2023 The toad to recovery
Two of our analysts debate the outlook for China in 2023…
18 Jan 2023 Fund Analysis
Latin America looks set to recover first, according to the managers of BRLA…
24 Jun 2022 Delivering returns in a financial storm
We look at three trusts that have managed to deliver returns for shareholders so far in 2022…
01 Jun 2022 Are emerging markets doomed?
Bunching together different parts of the world leads to an unnuanced view of the opportunities in emerging markets…
11 May 2022 Fund Analysis
The Latin American region seems to be in a sweet spot, benefitting from high commodity prices…
04 May 2022 Time to change the record
We ask whether equities can still offer meaningful diversification or whether investors need to turn to alternatives…
29 Apr 2022 O Canada
The North American market may act as a safe haven for investors in the near future…
27 Apr 2022 Finding value in a haystack
Non-income value strategies are becoming increasingly scarce, but the holdouts represent attractive near-term opportunities…
14 Apr 2022 Has the commodities ship sailed?
The commodities boom may be longer-lasting than you think…
11 Apr 2022 Results analysis: BlackRock Latin American
BRLA was the top-performing investment trust in Q1 2022…
25 Mar 2022 Slides and Audio: BlackRock Latin American
Download the presentation and listen to the audio from our 'Ideas for your ISA' virtual Spring event on 15 March...
23 Mar 2022 Fifteen ideas for your ISA
Slides and audio from our event last week, featuring fund managers running money in every major market in the world...
17 Mar 2022 It's the end of the world as we know it
We examine five potential themes for investors seeking long-term returns in a troubled and uncertain world...
23 Feb 2022 Regime change
Ahead of our spring conference, we ask whether investors need to junk their portfolios and start again…
13 Oct 2021 Beyond the Middle Kingdom
As momentum falters in the emerging markets powerhouse, we examine the options for investors outside China...
29 Sep 2021 Slings and arrows
Our analysts argue over whether it’s better to take arms against volatility in a portfolio, or to simply suffer it…
28 Sep 2021 Fund Analysis
BRLA offers an annualised yield of 5% from a region which should benefit from a global recovery…
01 Sep 2021 Winter is coming
Summer was a welcome opportunity for exhausted investors to turn their backs on the legion threats they face, but they haven't gone away and the days grow short - we examine four in detail...
30 Jun 2021 Inflation – a real threat or hot air?
Two of our analysts ask whether recent high inflation numbers indicate something long-lasting and troubling is happening…
05 May 2021 Vive la revolution
For thirty years quality has had a structural tailwind; but revolt is in the air and value is on the barricades…
28 Apr 2021 Latin America and the commodities supercycle
Commodity prices have been rising fast. Ed Kuczma, Co-Manager of the BlackRock Latin American Investment Trust plc, says Latin America should be a key beneficiary and he is positioning for a long-term trend.
06 Apr 2021 Results analysis: BlackRock Latin American
We look at how BRLA has performed, and what 2021 might have in store for the trust…
24 Mar 2021 Shoot to Thrill: ISA targets for long term growth
We all intend to invest for the long-term but can often be distracted by the news...
16 Mar 2021 Fund Analysis
The managers of BRLA are highly bullish on their region’s prospects in a global recovery from the pandemic…
11 Mar 2021 Slides and Audio: BlackRock Latin American
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 02 March...
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
10 Dec 2020 Fund Analysis
BRLA invests in Latin America, which has historically seen strong returns in global recovery periods…
09 Dec 2020 A bumper harvest?
Agricultural and industrial commodities have rallied strongly, but what are the implications for emerging market allocations...?
13 Aug 2020 Underground bangers
We look for hidden gems in the smaller end of the investment trust universe...
12 May 2020 Fund Analysis
BRLA invests in Latin America, where valuations could indicate a generational buying opportunity…
06 May 2020 Latin America: discovering new growth
Latin American markets have been hit hard by the coronavirus outbreak. However, says Ed Kuczma, Co-Manager of the BlackRock Latin American Investment Trust plc, there may be opportunities amid the gloom...
01 Apr 2020 Back in Brazil
As global markets have suffered in 2020, Brazilian stocks have been no exception. Could this be a good time to consider buying?
16 Jan 2020 Drifting apart: how emerging markets have become less correlated
We examine how correlations between different emerging markets have evolved, and whether single country strategies could diversify returns going forward....
10 Dec 2019 Fund Analysis
BRLA has raised its gearing in anticipation of a Brazilian market rally...
04 Sep 2019 Time to pay attention to Latin America?
07 May 2019 Fund Analysis
The trust's high profile new managers are bullish on the outlook, particularly for Brazil, and the discount has narrowed sharply...
22 Mar 2018 Fools rush in
The strong performance of emerging markets has seen investors flooding into ETFs, but the evidence shows that active managers produce far better results...
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