Economic progress in Brazil

BlackRock Latin American Investment Trust (BRLA) is a well-established fund offering exposure to Latin America via a diversified equity portfolio. Manager William Landers aims to generate an attractive total return from a portfolio of 50-75 holdings invested across the capitalisation spectrum. He notes that despite negative political headlines in Brazil (the largest economy in the region), there is economic progress helped by falling interest rates and an inflation rate that is lower than the Central Bank of Brazil’s target. Landers is positive on Brazil’s political agenda and believes that the recent passing of the labour reform bill suggests that there is a broad appetite for reform, less conditional on President Temer than may have been thought. The manager is positive on the outlook for Latin American equities, while acknowledging that there will be “bumps along the way”. BRLA’s current dividend yield is 2.7%.