Latin American Markets' Whiplash Year Throws BlackRock Investment Fund for a Loop

BlackRock Latin America Investment Trust plc’s release of their 2024 results indicates struggling performance in the face of volatile Latin American markets. With net assets dropping from $189,719 in 2023 to $115,962 in 2024, a bleak picture is rendered for BlackRock’s performance in the region. The net asset value per ordinary share also took a significant hit, coming down from 644.24 US cents per share in 2023 to 393.78 cents at the close of 2024.

The financial year of 2023 saw Latin American markets outperforming both Developed World and Emerging Market Indices. However, 2024 was a year of downturn, with the MSCI EM Latin America Index, which calculates the reinvestment of dividends net of withholding taxes, falling by 26.4%.

In US dollar terms with dividends reinvested, the Company’s net asset value per share plummeted by 35.7% for the year ended 31 December 2024. This significant underperformance underscores the unpredictable and challenging nature of Latin America’s financial markets in the year 2024, which stands in stark contrast to the previous year’s favourable performance.