BlackRock Latin American (BRLA)

BlackRock Latin American (BRLA) has been surfing a wave of rising markets in Latin America, the best-performing region globally in 2025, driving the NAV total return to gains of 44% in 2025, and the share price total return to 54% (see Performance).

Whilst the region was largely out of favour in 2024, it has rebounded as foreign capital rushed back in to diversify away from the US. AI-infrastructure spend has boosted commodity prices, leading to money flowing through key economies, whilst rate cuts and more business-friendly governments both seem on the horizon, raising expectations that the rally can continue.

BRLA remains overweight domestic Brazil, with elections due in October; a key catalyst to watch. Managers Sam Vecht and Gordon Fraser argue it has significant upside over the next few years , thanks to multiple supportive factors. Commodity demand for AI and renewables, low valuations, and goods trading relationships with both the US and China play into the managers’ optimism for Brazil and the wider region, and gearing sits at c. 10%, above their neutral level of 5%, illustrating this bullishness.

BRLA is the only investment trust focussing on the Latin American region and offers an attractive dividend yield as well as growth potential. The trust pays out 1.25% of the NAV in dividends each quarter, equivalent to a running yield of 5% on an annualised basis.

The board has stated it will make a tender offer for up to 24.99% of the share capital in the first half of this year, thanks to performance and discount hurdles not being met in the four years to 31/12/2025. The shares are on a 7.2% Discount at the time of writing.