Stock Analysis & Valuation BlackRock Latin American Investment Trust plc (BRLA.L)

• Previous Close: £479.00
• Sector Valuation Confidence Level: High

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	123.90	-74
Intrinsic value (DCF)	117.95	-75
Graham-Dodd Method		n/a
Graham Formula	327.10	-32

Strategic Investment Analysis

Company Overview

BlackRock Latin American Investment Trust plc (BRLA.L) is a UK-domiciled closed-end equity mutual fund managed by BlackRock Investment Management (UK) Limited. Launched in 1990, the fund focuses on investing in Latin American public equity markets across diversified sectors, targeting value stocks of companies with strong governance, earnings growth potential, and robust balance sheets. The fund employs a fundamental, top-down and bottom-up stock-picking approach, benchmarking its performance against the MSCI Latin EM America Index. With a market cap of approximately £98.2 million, BRLA.L provides investors exposure to Latin America's dynamic economies, leveraging BlackRock's global expertise in asset management. The fund operates in the Financial Services sector, specifically within Asset Management, and is listed on the London Stock Exchange. Its strategy appeals to investors seeking long-term growth opportunities in emerging markets.

Investment Summary

BlackRock Latin American Investment Trust plc offers investors targeted exposure to Latin American equities, benefiting from BlackRock's extensive investment management expertise. The fund's focus on value stocks with strong fundamentals and growth potential may appeal to long-term investors. However, the fund's performance is closely tied to the volatile Latin American markets, as indicated by its beta of 1.0414, suggesting higher risk compared to broader markets. The fund's revenue of £56.7 million and net income of £53.4 million for FY 2023 reflect solid profitability, supported by a dividend yield from its £17.72 per share payout. Investors should weigh the potential for high returns against geopolitical and economic risks inherent in emerging markets.

Competitive Analysis

BlackRock Latin American Investment Trust plc (BRLA.L) differentiates itself through BlackRock's global asset management platform, providing access to extensive research and investment resources. The fund's focus on Latin America allows it to capitalize on the region's growth potential, though this also exposes it to higher volatility. Its competitive advantage lies in BlackRock's strong brand reputation and the fund's disciplined investment approach, targeting companies with solid governance and financial health. However, the fund faces competition from other Latin America-focused investment trusts and ETFs, which may offer lower fees or different risk-return profiles. BRLA.L's closed-end structure provides stability in capital management but may trade at a discount or premium to NAV, impacting investor returns. The fund's performance is highly correlated with the MSCI Latin EM America Index, making it a pure play on the region's equity markets.

Major Competitors

• Lazard Latin American Investment Trust plc (LAM.L): Lazard Latin American Investment Trust plc (LAM.L) is another UK-based closed-end fund focusing on Latin American equities. Managed by Lazard Asset Management, it employs a similar value-oriented approach but may differ in sector allocation and stock selection. LAM.L's smaller size could limit its flexibility compared to BRLA.L, but its management team has deep regional expertise. The fund's performance is also benchmarked against the MSCI Latin America Index, making it a direct competitor to BRLA.L.
• Fidelity Latin America Fund (FLIA.L): Fidelity Latin America Fund (FLIA.L) offers an open-ended alternative to BRLA.L, providing similar exposure to Latin American equities. Managed by Fidelity, it benefits from the firm's global research capabilities but may have higher liquidity due to its open-ended structure. FLIA.L's performance is benchmarked against the MSCI EM Latin America Index, and its fee structure may differ, impacting net returns for investors compared to BRLA.L.
• iShares Latin America 40 ETF (ILAT.L): The iShares Latin America 40 ETF (ILAT.L) is a passive investment vehicle tracking the S&P Latin America 40 Index. It provides broad exposure to Latin America's largest companies at a lower cost than actively managed funds like BRLA.L. However, ILAT.L lacks the active stock-picking and fundamental analysis that BRLA.L employs, potentially missing out on undervalued opportunities. Its liquidity and lower fees make it attractive for cost-conscious investors.