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Further information about the Company can be found at
www.blackrock.com/uk/brla
.
General enquiries about the Company should be directed to the Company Secretary at:
cosec@blackrock.com
.
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Financial
highlights
as at 31 December 2024
470.60
Benchmark index
2
-26.4%
1,2
393.78c
Net asset value (NAV) per
ordinary share
-35.7%
1,2
348.17c
Ordinary share price
-35.3%
1,2
24.70c
Total dividends per
ordinary share
-14.3%
3
7.1%
1,4
Dividend yield
23.40c
Revenue profit per
ordinary share
The above financial highlights are at 31 December 2024 and percentage
comparisons are against 31 December 2023.
1
Alternative Performance Measures, see Glossary on pages 118 to 123.
2
NAV, mid-market share price and benchmark index are calculated in US Dollar
terms with dividends reinvested. The Company’s benchmark index is the MSCI
EM Latin America Index (net return, on a US Dollar basis).
3
Dividends declared in respect of the financial year to 31 December 2024 of
24.70 cents per share compared to dividends declared in respect of the financial
year to 31 December 2023 of 28.82 cents per share.
4
Yield calculated based on four quarterly dividends for the twelve months
to 31 December 2024 of 24.70 cents per share and the share price as at
31 December 2024 of 348.17 cents.
Section 1: Overview and performance
1
Brazil was our largest country exposure at year end, though we have reduced our
investments in those Brazilian companies we see as vulnerable to a higher interest rate
environment, and shifted our focus to businesses with stronger balance sheets which
we believe will fare better in 2025.
2
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Why BlackRock
Latin American
Investment Trust plc?
Investment objective
The Company’s objective is to secure long-term capital growth and an attractive total return
primarily through investing in quoted securities in Latin America.
Investment approach
The Board strongly believes
that our closed-end structure is
the most appropriate for active
equity investment in Latin
America and its well-known
advantages are the major factors
differentiating us from our many
open-ended competitors. As a
closed-end company we are able
to adopt a longer-term investment
horizon, and therefore may,
when appropriate, have a higher
proportion of less liquid mid and
smaller capitalisation companies
than comparable open-ended
funds.
As an actively managed
fund our primary aims
over the medium term are
significant outperformance
of our benchmark index (the
MSCI Emerging Markets Latin
America Index (net return, on
a US Dollar basis)) and most
of our competitors on a risk
adjusted basis. Our portfolio and
performance will diverge from
the returns obtained simply by
investing in the index.
The portfolio will be chosen
from a spread of companies
which are listed in, or whose main
activities are in, Latin America.
The Board actively seeks to
maintain control over the level
and volatility of the discount
between share price and the net
asset value (NAV).
We will selectively employ
gearing with the aim of
enhancing returns. The Board
believes that 105% of NAV is
the neutral level of gearing
over the longer term and that
gearing should be used actively
in an approximate range of plus
or minus 10% around this as
measured at the time that gearing
is instigated.
The Company pays a regular
quarterly dividend equivalent
to 1.25% of the Company’s US
Dollar NAV at the end of each
calendar quarter.
Further details about the Company, including the latest annual and half yearly financial reports, factsheets and stock exchange
announcements, are available on the website at
www.blackrock.com/uk/brla
.
Section 1: Overview and performance
3
Contents
Section 1: Overview and performance
Financial highlights
1
Why BlackRock Latin American Investment Trust plc?
2
Performance record
4
Chair’s Statement
5
Investment Manager’s Report
9
Section 2: Portfolio
Ten largest investments
17
Portfolio investments
19
Portfolio analysis
21
Environmental, Social and Governance Approach
22
BlackRock Investment Stewardship
23
Section 3: Governance
Governance structure
28
Directors’ biographies
29
Strategic Report
31
Directors’ Report
48
Directors’ Remuneration Report
56
Directors’ Remuneration Policy
60
Corporate Governance Statement
62
Report of the Audit Committee
69
Statement of Directors’ Responsibilities in respect of the Annual Report and
Financial Statements
73
Section 4: Financial statements
Independent Auditors’ Report
76
Income Statement
83
Statement of Changes in Equity
84
Balance Sheet
85
Statement of Cash Flows
86
Notes to the Financial Statements
87
Section 5: Additional information
Shareholder information
108
Analysis of ordinary shareholders
111
Ten year record
112
Management and other service providers
113
AIFMD report on remuneration (unaudited)
114
Other AIFMD disclosures (unaudited)
115
Information to be disclosed in accordance with Listing Rule 6.6.1
116
Depositary Report
117
Glossary
118
Section 6: Annual General Meeting
Notice of Annual General Meeting
126
Share fraud warning
130
4
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Performance record
As at
31 December
2024
As at
31 December
2023
Net assets (US$’000)
1
115,962
189,719
Net asset value per ordinary share (US$ cents)
393.78
644.24
Ordinary share price (mid-market) (US$ cents)
2
348.17
569.84
Ordinary share price (mid-market) (pence)
278.00
447.00
Discount
3
11.6%
11.5%
For the year
ended
31 December
2024
For the year
ended
31 December
2023
Performance (with dividends reinvested)
Net asset value per share (US$ cents)
3
-35.7%
37.8%
Ordinary share price (mid-market) (US$ cents)
2,3
-35.3%
35.3%
Ordinary share price (mid-market) (pence)
3
-34.1%
27.6%
MSCI EM Latin America Index (net return, on a US Dollar basis)
4
-26.4%
32.7%
For the year
ended
31 December
2024
For the year
ended
31 December
2023
Change
%
Revenue
Net profit on ordinary activities after taxation (US$’000)
6,890
8,967
-23.2
Revenue earnings per ordinary share (US$ cents)
23.40
30.45
-23.2
Dividends per ordinary share (US$ cents)
Quarter to 31 March
7.39
6.21
+19.0
Quarter to 30 June
6.13
7.54
-18.7
Quarter to 30 September
6.26
7.02
-10.8
Quarter to 31 December
4.92
8.05
-38.9
Total dividends payable/paid (US$ cents)
24.70
28.82
-14.3
-40
-30
-20
-10
0
10
20
30
40
Share price
MSCI EM Latin America Index (net basis)
NAV per share
Sources: BlackRock Investment Management (UK) Limited and LSEG Datastream.
Performance figures are calculated in US Dollar terms with dividends reinvested.
2020
2021
2022
2023
2024
%
Annual performance for the five years to 31 December 2024
1
The change in net assets reflects the portfolio movements during the year and dividends paid.
2
Based on an exchange rate of US$1.25 to £1 at 31 December 2024 and US$1.27 to £1 at 31 December 2023.
3
Alternative Performance Measures, see Glossary on pages 118 to 123.
4
The Company’s performance benchmark index (the MSCI EM Latin America Index) may be calculated on either a gross or a net
return basis. Net return (NR) indices calculate the reinvestment of dividends net of withholding taxes using the tax rates applicable
to non-resident institutional investors, and hence give a lower total return than indices where calculations are on a gross basis
(which assumes that no withholding tax is suffered). As the Company is subject to withholding tax rates for the majority of countries
in which it invests, the NR basis is felt to be the more accurate, appropriate, consistent and fair comparison for the Company.
Section 1: Overview and performance
5
Dear
Shareholder
Dear Shareholder,
Market Overview
Historically Latin American markets have generated returns in a volatile manner.
The performance of recent years continues this trend. 2023 was a fantastic year
for Latin America markets with the MSCI EM Latin America Index generating a
net total return of +32.7%, generously outperforming both Developed World and
Emerging Market Indices. 2024 saw the complete opposite with Latin American
markets significantly underperforming. The MSCI EM Latin America Index fell
-26.4% whilst the MSCI World Index rose +18.7% and the MSCI Emerging Markets
EMEA Index +5.5%. All performance figures are calculated in US Dollar terms with
dividends reinvested.
There were many reasons why Latin America equities performed so poorly last
year but the most notable were: the unexpected lack of fiscal discipline in Brazil,
resulting
in real interest rates staying far higher than expected, Mexico suffering
from threats of US import duties and concern over the government’s plan to
having judges elected rather than appointed would result in transitional chaos
and that the independence of the judiciary system might be weakened. Both the
Brazilian and Mexican currencies suffered as a result. Whilst some of the smaller
Latin America markets performed well the sheer size of the Brazilian and Mexican
markets dominated the region’s total performance numbers.
Performance
Over the year ended 31 December 2024 the Company’s net asset value per share,
with dividends reinvested fell by -35.7% in US Dollar terms, which compares to
the benchmark returns with dividends reinvested of -26.4%. The share price fell by
-35.3% in US Dollar terms (but decreased by -34.1% in Sterling terms). This was a
very disappointing return particularly after the significant market outperformance
of 2023. The portfolio managers give a detailed explanation later in the Investment
Manager’s Report on pages 9 to 13.
Gearing
The Board’s view is that 105% of NAV is the neutral level of gearing over the longer
term and that gearing should be used actively in an approximate range of plus or
minus 10% around this as measured at the time that gearing is instigated. The
Board is pleased to note that over the year the portfolio managers have used gearing
actively with a low of 103.5% in September 2024 and a high of 113.4% of NAV in
July 2024. Average gearing for the year to 31 December 2024 was 107.5% of NAV.
Revenue return and dividends
Total revenue return for the year was 23.40 cents per share (2023: 30.45 cents per
share). The decrease of 23.2% was largely due to the reduction in dividends paid by
portfolio companies. Under the Company’s dividend policy dividends are calculated
and paid quarterly, based on 1.25% of the US Dollar NAV at close of business on the
last working day of March, June, September and December respectively.
Chair’s Statement
Carolan Dobson
Chair
6
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Information in respect of the payment timetable is set out in the Annual Report and Financial Statements. Dividends will be
financed through a combination of available net income in each financial year and revenue and capital reserves. The Company
has declared interim dividends totalling 24.70 cents per share in respect of the year ended 31 December 2024 (2023: 28.82
cents per share) as detailed in the table below; this represented a yield of 7.1% based on the Company’s share price at 31
December 2024.
Dividends declared in respect of the year ended 31 December 2024
Dividend
Pay date
Quarter to 31 March 2024
7.39 cents
16 May 2024
Quarter to 30 June 2024
6.13 cents
13 August 2024
Quarter to 30 September 2024
6.26 cents
8 November 2024
Quarter to 31 December 2024
4.92 cents
7 February 2025
Total
24.70 cents
The dividends paid and declared by the Company in 2024 have been funded from current year revenue and brought forward
revenue reserves. As at 31 December 2024, a balance of US$4,570,000 remained in revenue reserves, which is sufficient to
cover approximately three quarterly dividend payments at the most recently declared dividend rate of 4.92 cents per share.
Dividends may be funded out of capital reserves to the extent that current year revenue and revenue reserves are insufficient.
The Board believes that this removes pressure from the portfolio managers to seek a higher income yield from the underlying
portfolio itself which could detract from total returns. The Board also believes the Company’s dividend policy will enhance
demand for the Company’s shares and help to narrow the Company’s discount, whilst maintaining the portfolio’s ability to
generate attractive total returns.
ESG and Socially Responsible Investment
As a Board we believe that good Environmental, Social and Governance (ESG) behaviour by the companies we invest in is
important to the long-term financial success of our Company and believe we should be active in encouraging the companies
we invest in to adopt good standards of governance.
The Board receives regular reporting from the portfolio managers on ESG matters and extensive analysis of our portfolio’s ESG
footprint and actively engages with the portfolio managers on these reports. The Company does not seek to become an Article
8 or 9 company under the EU’s Sustainable Finance Disclosure Regulation legislation and does not intend to seek to have one
of the 4 sustainability labels under the FCA’s Sustainability Disclosure Requirements regime. However, consideration of ESG
analytics, data and insights is integrated into the investment process when weighing up the risk and reward benefits and there
is more information in relation to BlackRock’s approach to ESG integration on pages 22 to 24.
Discount management and new discount control mechanism
The Board remains committed to taking appropriate action to ensure that the Company’s shares do not trade at a significant
discount to their prevailing NAV and have sought to reduce discount volatility by offering shareholders a new discount control
mechanism covering the four years to 31 December 2025. This mechanism will offer shareholders a tender for 24.99% of the
shares in issue excluding treasury shares (at a tender price reflecting the latest cum-income NAV less 2% and related portfolio
realisation costs) in the event that the continuation vote to be put to the Company’s AGM in 2026 is approved, where either of
the following conditions have been met:
(i)
the annualised total NAV return of the Company does not exceed the annualised benchmark index (being the MSCI EM
Latin America Index) US Dollar (net return) by more than 50 basis points over the four-year period from 1 January 2022 to
31 December 2025 (the Calculation Period); or
(ii) the average daily discount to the cum-income NAV exceeds 12% as calculated with reference to the trading of the shares
over the Calculation Period.
In respect of the above conditions, the Company’s annualised total NAV return on a US Dollar basis over the three year period
ended 31 December 2024 was -1.9%, underperforming the annualised benchmark return of +2.1% over the year by -4.0%
(equivalent to 400 basis points).
The cum-income discount of the Company’s ordinary shares over the Calculation Period has averaged 11.3%.
Section 1: Overview and performance
7
For the current year the cum-income discount has ranged from 4.5% to 16.5%, ending the year on a discount of 11.6% at
31 December 2024.
The Company has not bought back any shares during the year ended 31 December 2024 and up to the date of publication of
this report.
Annual General Meeting
The Company’s Annual General Meeting will be held in person at the offices of BlackRock at 12 Throgmorton Avenue, London
EC2N 2DL on Thursday, 22 May 2025 at 12.00 noon. Details of the business of the meeting are set out in the Notice of Annual
General Meeting contained within the Annual Report and Financial Statements.
The Board very much looks forward to meeting shareholders and answering any question you may have on the day. We hope
you can attend this year’s AGM; a buffet lunch will be made available to shareholders who have attended the AGM.
Outlook
The world today looks very different to how it looked last year. Global institutions established after the second world war to
coordinate and promote global well-being and peace are under attack. Even Nato, a robust organisation over decades, is
threatening to fracture. Globalisation and free trade are being disrupted. The concerted attack on the integrity of the judiciary
and attempts to weaken the separation of law and state that is occurring in several countries is desperately worrying. 2024
was the warmest year on record with global average temperature being 1.6% warmer than the pre-industrial level and many
initiatives to reduce carbon emissions have stalled.
Against this background it is difficult to make sensible economic forecasts.
In its favour, Latin America has weathered many turbulent political periods of its own making, so may have more experience
and skill when handling the current political turmoil, created from outside its borders. It is rich in natural resources of crude oil
and natural gas and is a major source of copper and lithium which are critical materials for the green energy transition. It is a
large food supplier and has many efficient manufacturing companies.
These factors should continue to attract investors in spite of the greater uncertainties that we are seeing in the world today.
We have a well-diversified portfolio and an experienced portfolio management team and your Board believes they can take
advantage of the volatile conditions described above. The current year has started more positively.
Carolan Dobson
Chair
28 March 2025
Section 1: Overview and performance
9
Investment
Manager’s
Report
Market overview
Following on from a year of strong performance in 2023, this was a tough year
for Latin American equities with the MSCI EM Latin America Index falling -26.4%
in US Dollar terms during 2024, significantly underperforming other Emerging
Market (EM) regions. It marked the fourth year in five that the region has seen
declining share prices, and it is worthwhile noting that in price terms the Latin
American index is barely higher than it was in 2024, and does not fully reflect the
top-down and bottom-up developments observed in the region over that 20 year
period; gross domestic product (GDP) in Brazil and Mexico has grown by 227% and
127% respectively (nominal GDP, in US Dollars), while earnings per share in those
countries has grown by 45% and 90% (trailing 12 months EPS, for respective
MSCI indices, in US Dollars). Currency effects in 2024 were outsized as sticky
inflation and a resilient US consumer led to an unexpected, higher-for-longer rate
environment and persistent dollar strength. All Latin American currencies ended
the year down.
Foreign exchange
of the region’s two largest markets were in deeply
negative territory (Brazilian Real
depreciated -21.4%, whilst the typically stable
Mexican Peso
sold off -18.5%), adding to performance challenges as currency
effects accounted for over 60% of returns experienced by
US Dollars investors.
Index heavyweight Brazil was the worst performing market, returning -29.5%,
due to fiscal concerns, a weakening currency, and subsequent rate hikes from the
central bank. Brazil’s fiscal loosening in the first half of the year led to a sell-off
in both the currency and interest rates. In response, the Brazilian central bank
embarked on a tightening phase, raising rates by 25 basis points in September
followed by additional hikes in November and December, which significantly
dampened the equity market performance for the year and hurt equity investors
like ourselves. High domestic yields caused local investors to reallocate
unprecedented amounts of capital from equity funds into fixed income, resulting
in a meaningful derating across sectors, whilst outflows in emerging markets funds
from global investors has put additional pressure on the market.
Christoph Brinkmann
Sam Vecht
Miner MAG Silver was the largest contributor to relative returns over the period. The
company reported good results throughout 2024 helped by strong operational perfor-
mance at their main mine in Juanicipio, Mexico.
PHOTO COURTESY OF MAG SILVER
10
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Another country whose stock market suffered was Mexico, down -26.9%. The poor performance was largely driven by
investor concerns around both local and US elections. The landslide victory of Claudia Sheinbaum in the June presidential
elections caused significant volatility in Mexican financial assets, leading to a notable depreciation of the Peso. Investors
were concerned that this win, along with the Morena party's dominance, may reduce governmental checks and balances.
More recently, the market was affected by Donald Trump’s re-election and his tariff threats, which were said to have broader
implications for the Mexican economy if fully enacted.
The story of 2024 was different for Colombia and Peru, whose stock markets rose +9.8% and +15.8%, respectively. Both
countries performed well primarily on the back of declining inflation and supportive monetary policy. Another market that
did well was Argentina, which returned a remarkable +117.9%. President Milei has surprised to the upside with his push for
economic reform. That said inflation remains at circa 120% and the stock of government debt, denominated in hard currency
to foreign creditors, remains high and difficult to repay.
Whilst the steady decline of the relevance of Latin America in global indices and investor portfolios has been somewhat
remarkable moving from circa 17% of the MSCI EM Latin America Index in December 2014 to circa 7% as of December 2024,
we are hopeful that peak pain is behind us. 2024 was defined by robust growth in the US and premarket sentiment driven by
Donald Trump securing a second term. However, uncertainty surrounding tariffs and domestic policy may dampen US growth,
improving the relative attractiveness of Latin America, which now trades on 8.7x next 12 months’ earnings, a circa 25%
discount to its 10-year average.
Performance and positioning
The Company underperformed its benchmark over the 12-month period ending 31 December 2024, returning
-35.7% on a
total return basis in US Dollar terms. Over the same time horizon, the Company’s benchmark, the MSCI EM Latin American
Index, returned -26.4% on a net basis in US Dollar terms.
This was a very disappointing outcome, both on an absolute and a relative return basis and was largely a reflection of our
Brazil positioning which drove the majority of the underperformance of the year. We had been positioned for a downward
move in global rates that would ease conditions across emerging markets, and were surprised by the strength of the US
economy this year that delayed Federal Reserve rate cuts. Whilst encouraged by an attractive real rate backdrop that provided
the central bank room to accelerate its cutting cycle, which started in August 2023, stickier-than-expected inflation through
the first half of the year resulted in a reversal in monetary policy direction. This coupled with slippage on the fiscal side and
We added to our investment in property developer Cyrela. We believe the company can take advantage of a down cycle to acquire land
at lower prices.
PHOTO COURTESY OF CYRELA BRAZIL REALTY
Section 1: Overview and performance
11
repeatedly poor communication to the market led to a sell-off in the currency and increased the risk premia for the market.
The sell-off intensified further in the last quarter of the year, following the release of a highly disappointing fiscal package from
the Brazilian government that fell short of market expectations. The Brazilian Real dropped to an all-time low against the US
Dollar, and the Brazilian equity market fell by 19.4% in the fourth quarter alone.
Whilst corporate fundamentals were robust for much of the year, the deteriorating macro environment and the attractive
yield within the fixed income space contributed to the above mentioned flows out of the equity market leading to a larger-
than-expected derating of Brazilian assets, which significantly impacted our domestic positioning.
Examples, of stocks that
were disproportionately affected included Lojas Renner, a Brazilian fashion retailer as well as XP, an online brokerage, and
Cyrela Brazil Realty, the real estate developer.
While these companies reported decent results throughout the year, they saw a
significant multiple derating.
The largest detractor to relative returns was Brazilian integrated healthcare operator Hapvida Participacoes (Hapvida). Besides
the general downturn in the Brazilian market, Hapvida also faced stock specific challenges. Our core thesis was driven by a
normalization of medical loss ratios (MLRs) as the company applied sizeable post COVID-19 price adjustments. Whilst this
started to play out in late 2023, the industry has been embattled with several regulatory changes over the past two years,
resulting in a significant increase in judicialization, where patients often take payors to court to ask for treatments that are not
covered in their policies. As a result, Hapvida had to increase their provisions for such court cases throughout the year, which
has negatively impacted its earnings. The company has implemented several measures to mitigate the issue, which we believe
will offset the impact over the next twelve months.
Another detractor over the period was Azzas 2154, the Brazilian footwear retailer, which traded down with the Brazilian market.
As a consumer discretionary business, investors fear the future impact of rising rates on their sales. We believe that the
company will reap significant benefits of the merger between Arezzo and Soma over the coming year and continue to hold
onto the name. As we have highlighted to our clients before, we take a long-term view on the names we invest in (1
-2 years)
and maintain conviction that our thesis will play out over that time. Brazilian supermarket chain Assai was another detractor.
As a highly leveraged company, Assai’s performance has been negatively impacted by the aforementioned rate hikes in Brazil.
EZTEC Empreendimentos e Participacoes, the Brazilian homebuilder has also hurt amidst the deteriorating macro environment
in Brazil despite delivering a 40% beat on strong sales, margins and financial income in their third quarter earnings release.
Our lack of exposure to Peru was another detractor. We have remained uninvested in this market on the back of political
uncertainty, where the lack of support for the government and increased fragmentation in congress represent a difficult
environment to form an effective government. As such, not owning names like Southern Copper and Credicorp has weighed on
relative returns.
Despite overall performance challenges and a tough market environment in primarily Brazil and Mexico, the Company notably
generated returns from our precious metals’ exposure in Mexico and Ecuador. Our position in MAG Silver Corp, the Mexican silver
miner, was the largest contributor to relative returns over the period. Another precious metals stock that helped performance
was Lundin Gold, a Canadian listed mining company with operations in Ecuador. Both stocks have enjoyed support from rising
gold and silver prices, while MAG Silver Corp has also reported good results throughout 2024 helped by strong operational
performance at their main mine. An overweight position in Mexican airport operator Grupo Aeroportuario del Pacífico
was
another contributor to relative returns, helped by good earnings and strong traffic numbers. Mexico has seen inbound tourism
grow by more than 50% over the past three years, and this is likely to continue to meaningfully contribute to the Mexican
economy in the years to come. Performance here has been supported by the growth of tourism, which is likely to remain a
significant contributor to the Mexican economy (Mexican tourist numbers have increased by circa 50% over the last few years).
Our off-benchmark exposure to engineering solutions provider Seatrium, also benefitted the Company after posting strong
results in the third-quarter of the year. The Singapore listed engineering solutions provider is a dominant partner to Petrobrás
as a builder of offshore oil equipment. Our thesis was based on a potential turnaround in the business driven by visibility in its
contract pipeline, which we estimate is being negotiated with higher margins. Elsewhere, our Argentina exposure was another
bright spot with an off-benchmark holding in IT services company Globant. An overweight to Bancolombia, the Colombian
bank, was also additive.
During 2024, the most notable change has been an increase in exposure to Mexico. We went into the year with an underweight
to the country but have since taken advantage of market volatility and the sharp sell-off post June elections to move
overweight. While the Mexican market performed poorly in 2024, we find interesting bottom-up opportunities that are trading
at compelling valuations that are close to historic lows. We believe that the tariff threats from President Trump have largely
been factored into the market. While any news of tariffs may negatively affect our positioning short-term, we are confident that
the two countries will ultimately reach a common ground.
In 2024, we added to Grupo México, a Mexican mining and transport conglomerate, reflecting a more positive view on copper.
We also initiated a position in Mexican highway operator PINFRA, which is a well-run, conservative business that trades on low
multiples. President Sheinbaum has been clear that there is a significant need for infrastructure investments in Mexico and
PINFRA could be a key beneficiary of that.
12
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
During the year, we rotated our exposure within Brazil. We entered the year with a view that the Brazilian central bank would
be able to continue cutting rates, hence we had positions in levered companies that we believed would benefit from lower
debt servicing costs. However, as the macro environment evolved and the central bank began raising rates due to fiscal
and inflation pressures, we reduced our exposure to these companies. Specifically, we decreased our holdings in leveraged
companies that we believe would struggle in the elevated interest rate environment such as industrial company Vamos.
We shifted a portion of our exposure in Brazil into companies with strong balance sheets, that could weather another two years
of elevated rates, if need be. For example, we have added to property developer Cyrela Brazil Realty, a company with a strong
balance sheet that we believe can take advantage of a down cycle to acquire land at lower prices. We have also topped up
our holding in Brazilian retailer Lojas Renner as the underlying business is performing well and as we are expecting a capital
return story to shareholders over the next two years. The company will also be debt free in early 2025, making it less vulnerable
to higher rates.
Given that our Brazilian stocks trade on compelling valuations that are very close to historic lows, we did not think it was
prudent to cut too much of our exposure at this point in time. We believe that over the course of 2025, people will focus on
Brazil's 2026 upcoming elections, where a more market-friendly candidate might win.
Elsewhere, we exited our
off-benchmark holding Copa Airlines, reflecting analyst conviction. We also sold our position in IT
services provider Globant due to rich valuations and reduced our exposure to lithium producer Sociedad Química Y Minera in
Chile, as we prefer other commodities such as copper.
Outlook
2024 has been a difficult year for the region and our portfolio, however, we are now entering 2025 with many asset prices
trading at highly attractive levels, and cautious optimism that some of the top-down challenges for the region are at an
inflection point. We have been talking about extreme crowdedness in the ‘US exceptionalism’ trade for quite some time and
many conversations with clients across channels indicated hesitation to move capital on fear of missing out. However, with
such severity of the Nasdaq correction in late-February/early-March, there may be a shift in allocators’ willingness to rotate
risk within portfolios. We also note the US is undergoing a significant regime transition and DOGE
(Department of Government
Efficiency) initiatives may cause a “paralysis effect” where government employees and contractors may delay or refrain from
action for a period, whether it be investment or otherwise, negatively impacting expenditure and growth.
Whilst outflows from the region have made valuations compelling, the attractiveness of high dividend stocks has increased, as
a potential rebound could be quite sizeable especially if a meaningful turnaround in the flow picture comes through. In Brazil
and Mexico, many stocks trade on single-digit multiples while paying double-digit dividend yields. This is true for companies
as diverse as Mexican bank Grupo Financiero Banorte, Brazilian natural resource companies Vale and Petrobrás as well as real
estate developer Cyrela Brazil Realty. The latter trades on 4x price-to-earnings and pays an 11% dividend yield (consensus
estimates).
Meanwhile, at a macroeconomic level the Brazilian Real also declined by 23% in 2024, making Brazilian broad-range of
exports much more competitive. This together with higher interest rates might lead to a decline in economic activity, less
pressure on inflation and thus lower interest rates down the line. This in turn should lift the multiples of equities. It is worth
mentioning that in October 2026, Brazil will go to the polls and we expect that a more centrist candidate will win the election.
Brazil’s fiscal problems are fixable, and the extremely low starting valuation of Brazil assets may mean that the pre-election
rally will start a little earlier than in past cycles.
Mexico is another country that struggled in 2024 in terms of asset price performance, albeit for different reasons than
Brazil. While in Brazil it was largely about fiscal challenges, in Mexico the government has hurt asset price performance by
announcing a judicial reform that raises question marks about future judicial independence and the rule of law. Trump's
election victory and his vocal criticism of Mexico exacerbated the challenges later in the year. However, similar to Brazil, we
believe that much of this is already reflected in the pricing of Mexican assets. We expected volatility to persist early on as
politicking between President Sheinbaum and President Trump picked up, and concerns regarding the US-Mexico-Canada
Agreement (USMCA) peak, however, observed relatively measured engagement between the two leaders thus far. Despite the
claims of the media, we believe that the US has no viable low cost manufacturing alternative to Mexico and supply chains
across the southern border are tightly interwoven, such that long-term tariffs may present challenges. We think it is much
more likely that President Sheinbaum and President Trump eventually come to an agreement to rework USMCA to make
Chinese investment and re-exporting from Mexico more onerous. Additionally, the Mexican central bank has been relatively
more cautious in reducing rates in 2024, finishing the year with its benchmark rate still at 10%, even though inflation has
receded to around 4%. We therefore see scope for rate cuts to accelerate in 2025 and support asset price performance.
Furthermore, despite the claims of the media, we do not see a major change in the secular trend of nearshoring of supply
chains, as Mexico will remain a much cheaper location to manufacture than the United States. Mexico remains our biggest
overweight in the fund and we anticipate being incremental buyers on weakness. Mexico is also currently trading at a 25%
discount to historic valuations.
The Company is underweight the rest of Latin America to fund these high conviction positions in Brazil and Mexico.
Regarding Argentina, we are happy to see that the country is possibly back on a path towards economic orthodoxy, which we
believe will significantly benefit society in the medium term. We also acknowledge that we have been too sceptical regarding
what Milei will achieve in his first year in power. However, part of the government's strategy involves tolerating an overvalued
exchange rate to achieve the primary goal of keeping inflation low. This approach comes at the expense of accumulating
much-needed US Dollar reserves. The fact that Argentinians are traveling to neighbouring countries such as Chile, Uruguay,
and Brazil for holidays is a classic sign that the exchange rate may be misaligned.
Sam Vecht and Christoph Brinkmann
BlackRock Investment Management (UK) Limited
28 March 2025
Section 1: Overview and performance
13
Section 2: Portfolio
17
Ten largest
investments
as at 31 December 2024
1
Vale
(2023: 1st)
Sector: Materials
Market value – American depositary share (ADS): US$9,687,000
Market value – ordinary shares: US$1,512,000
Share of investments: 9.2% (2023: 9.6%)
is one of the world’s largest mining groups, with other business
es
in logistics, energy and steelmaking. Vale is the world’s
largest producer of iron ore and nickel but also operates in the coal, copper, manganese and ferro-alloys sectors.
2
Petrobrás
(2023: 2nd)
Sector: Energy
Market value – American depositary receipt (ADR): US$4,357,000
Market value – preference shares ADR: US$3,295,000
Market value – ordinary shares: US$1,547,000
Share of investments: 7.6% (2023: 8.6%)
is a Brazilian integrated oil and gas group, operating in the exploration and production, refining, marketing, transportation,
petrochemicals, oil product distribution, natural gas, electricity, chemical-gas and biofuel segments of the industry. The group
controls significant assets across Africa, North and South America, Europe and Asia, with a majority of production based in
Brazil.
3
Grupo Financiero Banorte
(2023: 10th)
Sector: Financials
Market value – ordinary shares: US$8,284,000
Share of investments: 6.8% (2023: 3.1%)
is a Mexican banking and financial services holding company and is one of the largest financial groups in the country. It
operates as a universal bank and provides a wide array of products and services through its broker dealer, annuities and
insurance companies, retirements savings funds (Afore), mutual funds, leasing and factoring company and warehousing.
4
Walmart de México y Centroamérica
(2023: 4th)
Sector: Consumer Staples
Market value – ordinary shares: US$7,176,000
Share of investments: 5.9% (2023: 5.9%)
is also known as Walmex, it is the Mexican and Central American Walmart division.
5
Grupo México
(2023: 16th)
Sector: Materials
Market value – ordinary shares: US$5,449,000
Share of investments: 4.5% (2023: 2.3%)
is a Mexican mining and transport conglomerate. The company engages in copper production, freight transportation, and
infrastructure businesses worldwide.
Together, the ten largest investments represented 52.0% of the Company’s portfolio as at 31 December 2024 (2023: 55.3%).
18
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
6
B3
(2023: 5th)
Sector: Financials
Market value – ordinary shares: US$4,847,000
Share of investments: 4.0% (2023: 5.1%)
is a stock exchange located in Brazil, providing trading services in an exchange and OTC environment. B3’s scope of activities
includes the creation and management of trading systems, clearing, settlement, deposit and registration for the main classes
of securities, from equities and corporate fixed income securities to currency derivatives, structured transactions and interest
rates, and agricultural commodities. B3 also acts as a central counterparty for most of the trades carried out in its markets and
offers central depository and registration services.
7
Rede D’or Sao Luiz
(2023: 32nd)
Sector: Health Care
Market value – ordinary shares: US$4,642,000
Share of investments: 3.8% (2023: 1.0%)
is a Brazilian hospital chain. The company offers medical and hospital care services in various areas, including women's
healthcare, oncology, dermatology, gastroenterology, neurology, psychology, urology, and reproductive medicine.
8
XP
(2023: n/a)
Sector: Financials
Market value – ordinary shares: US$4,542,000
Share of investments: 3.7% (2023: n/a)
is a Brazilian investment management company that offers a range of financial products and services, including brokerage,
asset management, and wealth management solutions.
9
Rumo
(2023: 24th)
Sector: Industrials
Market value – ordinary shares: US$3,954,000
Share of investments: 3.3% (2023: 1.8%)
is the largest railway operator in Brazil, providing logistics services primarily for exporting commodities. The company offers
integrated solutions for transportation, handling, storage, and shipping from production centres to major ports in the south
and southeast of Brazil.
10
Cyrela Brazil Realty
(2023: n/a)
Sector: Consumer Discretionary
Market value – ordinary shares: US$3,905,000
Share of investments: 3.2% (2023: n/a)
is a Brazilian homebuilder and real estate company. The company develops and constructs residential properties and provides
real estate services such as construction management and technical consultancy.
All percentages reflect the value of the holding as a percentage of total investments. For this purpose, where more than one class of
securities is held, these have been aggregated.
The percentages in brackets represent the value of the holding as at 31 December 2023.
Arrows indicate the change in relative ranking of the position in the portfolio compared to its ranking as at 31 December 2023.
Ten largest investments
continued
Section 2: Portfolio
19
Portfolio of investments
as at 31 December 2024
Market
value
US$’000
% of
investments
Brazil
Vale - ADS
9,687
}
9.2
Vale
1,512
Petrobrás - ADR
4,357
}
7.6
Petrobrás - preference shares ADR
3,295
Petrobrás
1,547
B3
4,847
4.0
Rede D'or Sao Luiz
4,642
3.8
XP
4,542
3.7
Rumo
3,954
3.3
Cyrela Brazil Realty
3,905
3.2
Hapvida Participacoes
3,434
2.8
Alpargatas
3,208
2.6
Lojas Renner
3,166
2.6
Itaú Unibanco – ADR
3,146
2.6
Azza Consultancy Services
2,957
2.4
Banco Bradesco - ADR
2,822
2.3
EZTEC Empreendimentos e Participacoes
2,497
2.1
Nu Holdings
2,320
1.9
StoneCo
1,825
1.5
Sendas Distribuidora
1,797
1.5
Energisa
1,670
1.4
IRB Brasil Resseguros
1,082
0.9
Localiza Rent A Car
792
0.7
73,004
60.1
Mexico
Grupo Financiero Banorte
8,284
6.8
Walmart de México y Centroamérica
7,176
5.9
Grupo México
5,449
4.5
MAG Silver Corp
3,733
3.1
PINFRA
3,539
2.9
Fibra Uno Administracion – REIT
3,356
2.8
Cemex – ADR
1,620
}
2.6
Cemex
1,503
Becle Sab De
2,997
2.5
Kimberly-Clark
2,855
2.3
Grupo Aeroportuario del Pacifico – ADS
1,519
1.2
FEMSA – ADR
1,169
}
1.2
FEMSA
314
43,514
35.8
20
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Market
value
US$’000
% of
investments
Chile
Sociedad Química Y Minera – ADR
2,943
2.4
Cia Cervecerias Unidas
1,223
}
1.7
Cia Cervecerias Unidas – ADR
877
5,043
4.1
Total investments
121,561
100.0
All investments are in equity shares unless otherwise stated.
The total number of investments held at 31 December 2024 was 39 (2023: 39). At 31 December 2024, the Company did not
hold any equity interests comprising more than 3% of any company’s share capital (2023: none).
Portfolio of investments
continued
Section 2: Portfolio
21
Geographical weighting (gross market exposure) vs MSCI EM Latin America Index
•
% of net assets
•
MSCI EM Latin America Index
0
10
20
30
40
50
60
70
Colombia
Peru
Chile
Mexico
Brazil
61.4
63.0
37.5
26.5
4.4
6.2
4.4
1.5
0.0
0.0
Sources: BlackRock and MSCI.
10
20
30
40
50
60
70
0
Sector and geographical allocations
Brazil
%
Mexico
%
Chile
%
Argentina
%
Colombia
%
Panama
%
Net other
liabilities
%
2024
Total
%
2023
Total
%
Communication Services
–
–
–
–
–
–
–
–
1.9
Consumer Discretionary
13.6
–
–
–
–
–
–
13.6
10.6
Consumer Staples
1.5
12.5
1.8
–
–
–
–
15.8
18.4
Energy
7.9
–
–
–
–
–
–
7.9
10.0
Financials
17.8
7.1
–
–
–
–
–
24.9
22.9
Health Care
7.0
–
–
–
–
–
–
7.0
4.0
Industrials
4.1
4.4
–
–
–
–
–
8.5
12.5
Information Technology
–
–
–
–
–
–
–
–
1.6
Materials
9.7
10.6
2.6
–
–
–
–
22.9
15.9
Real Estate
–
2.9
–
–
–
–
–
2.9
2.8
Utilities
1.4
–
–
–
–
–
–
1.4
–
Net other liabilities
–
–
–
–
–
–
(4.9)
(4.9)
(0.6)
2024 total investments
63.0
37.5
4.4
–
–
–
(4.9)
100.0
–
2023 total investments
60.5
27.4
5.6
2.9
2.5
1.7
(0.6)
–
100.0
Source: BlackRock.
Portfolio analysis
as at 31 December 2024
22
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
The Board’s approach
Environmental, social and governance (ESG) issues can present both opportunities and risks to long-term investment
performance. The Company’s investment universe comprises sectors that are undergoing significant structural change
and are likely to be highly impacted by increasing regulation as a result of climate change and other social and governance
factors. Your Board is committed to ensuring that we have appointed a manager that integrates ESG considerations into its
investment process and has the skill and vision to navigate the structural transition that the Company’s investment universe is
undergoing.
The Board believes multi-year engagement with management is, in most cases, the most constructive way of building our
understanding of a company’s approach to addressing material business risks and opportunities. Engagement can lead to
stronger relationships with companies and more constructive outcomes for shareholders and businesses alike.
More information on BlackRock’s global approach to ESG integration, as well as activity specific to the BlackRock Latin
American Investment Trust plc portfolio, is set out below. BlackRock has defined ESG integration as the practice of
incorporating financially material ESG information and consideration of sustainability risks into investment decisions in
order to enhance risk-adjusted returns. ESG integration does not change the Company’s investment objective or constrain
the Investment Manager’s investable universe and does not mean that an ESG or impact focused investment strategy or any
exclusionary screens have been or will be adopted by the Company. Similarly, ESG integration does not determine the extent
to which the Company may be impacted by sustainability risks. More information on sustainability risks may be found in
the Alternative Investment Fund Managers’ Directive (AIFMD) Fund Disclosures document of the Company available on the
Company’s website at:
https://www.blackrock.com/uk/literature/policies/itc-disclosure-blackrock-latin-america-trust-plc.pdf
.
The Company does not meet the criteria for Article 8 or 9 products under the EU Sustainable Finance Disclosure Regulation
SFDR and the investments underlying this financial product do not take into account the EU criteria for environmentally
sustainable economic activities.
BlackRock’s approach to material ESG integration
BlackRock’s clients have a wide range of perspectives on a variety of issues and investment themes, including sustainable
and low-carbon transition investing. Given the wide range of unique and varied investment objectives sought by its clients,
BlackRock’s investment teams have a range of approaches to considering financially material E, S, and/or G factors. As with
other investment risks and opportunities, the financial materiality of E, S and/or G considerations may vary by issuer, sector,
product, mandate, and time horizon. Depending on the investment approach, this financially material E, S and/or G data or
information may help inform due diligence, portfolio or index construction, and/or monitoring processes of client portfolios, as
well as BlackRock’s approach to risk management.
BlackRock’s ESG integration framework is built upon its history as a firm founded on the principle of thorough and thoughtful
risk management. Aladdin, BlackRock’s core risk management and investment technology platform, allows investors to
leverage financially material E, S and/or G data or information as well as the combined experience of BlackRock’s investment
teams to effectively identify investment opportunities and investment risks. BlackRock’s heritage in risk management
combined with the strength of the Aladdin platform enables BlackRock’s approach to ESG integration.
More information in respect of BlackRock’s approach to ESG integration can be found at:
https://www.blackrock.com/
corporate/literature/publication/blk-esg-investment-statement-web.pdf
.
BlackRock’s reporting and disclosures
In terms of its own reporting, BlackRock believes that the Sustainability Accounting Standards Board provides a clear set
of standards for reporting sustainability information across a wide range of issues, from labour practices to data privacy to
business ethics. For evaluating and reporting climate-related risks, as well as the related governance issues that are essential
to managing them, the Task Force on Climate-related Financial Disclosures (TCFD) provides a valuable framework. BlackRock
recognises that reporting to these standards requires significant time, analysis, and effort. BlackRock’s 2023 TCFD report can
be found at:
http://www.blackrock.com/corporate/literature/continuous-disclosure-and-important-information/tcfd-report-
2023-blkinc.pdf
.
Environmental, Social And Governance
Approach
Section 2: Portfolio
23
BlackRock Latin American Investment Trust plc - Investment Stewardship Engagement
with portfolio companies in the year ended 31 December 2024
Given the Board’s belief in the importance of engagement and communication with portfolio companies, they receive regular
updates from the Manager in respect of activity undertaken for the year under review. The Board notes that over the year to
31 December 2024, 29 total company engagements were held with the management teams of 20 portfolio companies representing
61% of the portfolio by % of holdings at 31 December 2024. To put this into context, there were 33 companies in the BlackRock
Latin American Investment Trust plc portfolio at 31 December 2024. Additional information is set out in the table below and charts
on the following page as well as the key engagement themes for the meetings held in respect of the Company’s portfolio holdings.
BlackRock Latin American Investment Trust plc
year ended 31 December 2024
Number of engagements held
29
Number of companies met
20
% of equity investments covered*
61%
Shareholder meetings voted at
56
Number of proposals voted on
548
Number of votes against management
62
% of total votes represented by votes against management
10.46%
* Calculated as the percentage of the portfolio holdings at 31 December 2024 represented by the portfolio companies that
engagements were held with.
Engagement Topics
1
0
5
10
15
20
25
30
8
1
22
19
21
20
11
6
5
10
1
1
2
2
1
8
2
Climate Risk
Management
Other company impacts
on the environment
Business Risk Oversight/
Risk Management
Corporate Strategy
Board Composition
and Effectiveness
Governance Structure
Sustainability
Reporting
Remuneration
Board Gender
Diversity
Executive
Management
Other
Human Capital
Management
Community Relations
Privacy & Data
Security
Health and Safety
Social Risks &
Opportunities
Business Ethics
and Integrity
0
10
20
30
40
Governance
Social
Environmental
Engagement Themes
1
29
9
10
BlackRock Investment Stewardship
1
Most engagement conversations cover multiple topics. More
detail about BIS’ engagement priorities can be found here:
www.blackrock.com/corporate/literature/publication/blk-
stewardship-priorities-final.pdf
. The number of meetings held
in respect of the Company’s portfolio holdings; at which a
particular topic is discussed.
24
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
BlackRock Investment Stewardship
For the year under review, the BlackRock Investment Stewardship (BIS) team was responsible for stewardship activities in
respect of companies in the BlackRock Latin American Investment Trust plc portfolio. BIS activities included engaging with
companies, proxy voting on clients’ behalf, contributing to industry dialogue on stewardship, and reporting on its activities. BIS
aims to take a globally consistent approach, while recognizing the unique markets and sectors in which companies operate.
With effect from 1 January 2025, BlackRock’s stewardship policies are developed and implemented by two independent,
specialist teams: BIS responsible for activities in relation to clients’ assets managed by certain index equity portfolio
managers, and BlackRock Active Investment Stewardship (BAIS). BAIS partners with BlackRock’s active investment teams
on company engagement and voting in relation to their holdings, and (with effect from 1 January 2025) is responsible for
investment stewardship in respect of the Company’s portfolio holdings.
A copy of the BAIS Global Engagement and Voting Guidelines can be found at the following link:
https://www.blackrock.com/
corporate/literature/publication/blackrock-active-investment-stewardship-engagement-and-voting-guidelines.pdf
.
BlackRock Investment Stewardship
continued
28
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Governance structure
Responsibility for good governance lies with the Board. The governance
framework of the Company reflects that, as an investment company,
the Company has no employees, the Directors are all non-executive
and the investment management and administration functions are
outsourced to the Manager and other service providers.
The Board
4 scheduled meetings per annum
Four non-executive Directors (NEDs), all independent of the Manager and the
Investment Manager
Chair
: Carolan Dobson (with effect from 2 March 2017)
Objectives:
•
To determine investment policy, strategy and parameters;
•
To provide leadership within a framework of prudent and effective controls
which enable risk to be assessed and managed and the Company’s assets to be
safeguarded; and
•
To challenge constructively and scrutinise performance of all outsourced
activities.
Audit Committee
3 scheduled meetings per annum
1
Membership:
Craig Cleland, Laurie Meister, Nigel Webber
Chairman:
Craig Cleland (with effect from 31 March 2019)
Key objectives:
•
To oversee financial reporting;
•
To consider the adequacy of the control environment;
•
Review and form an opinion on the effectiveness of the external audit process; and
•
To review the provisions relating to whistleblowing and fraud.
Management Engagement
Committee
2
1 scheduled meeting per annum
Membership:
All NEDs
Chair:
Carolan Dobson (with effect from 31 March 2019)
Key objectives:
•
To ensure that the provisions of the management agreement follow industry
practice, remain competitive and are in the best interest of shareholders;
•
To review the performance of the Manager; and
•
To review the performance of other service providers.
Nomination Committee
2
1 scheduled meeting per annum
Membership:
All NEDs
Chair:
Carolan Dobson (with effect from 31 March 2019)
Key objectives:
•
To regularly review the Board’s structure and composition;
•
To be responsible for the Board succession planning; and
•
To make recommendations for any new appointments.
Remuneration Committee
2
1 scheduled meeting per annum
Membership:
All NEDs
Chairman:
Craig Cleland (with effect from 9 November 2023)
Key objectives:
•
To be responsible for Directors’ remuneration; and
•
To set the Company’s remuneration policy.
Marketing Committee
3
1 scheduled meeting per annum
Membership:
Laurie Meister and Nigel Webber
Chair:
Laurie Meister (with effect from 9 November 2023)
Key objectives:
• To overse
e marketing strategy; and
•
To make marketing budget recommendations to the Board.
1
Ms Dobson stepped down as a member of the Audit Committee with effect from 1 January 2019 but may attend meetings by
invitation. For the year under review the Audit Committee met three times.
2
Up to 5 November 2018, there was a single combined Nomination and Management Engagement Committee which also performed
duties in respect of setting Directors’ remuneration and remuneration policy for the Company. On 5 November 2018, the Directors
established three separate committees to perform these duties instead as set out above and overleaf, being the Management
Engagement Committee, the Nomination Committee and the Remuneration Committee.
3
On 9 November 2023, the Directors established the Marketing Committee.
28
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Directors’ biographies
1
Ms Dobson stepped down as a member of the Audit Committee with effect from 1 January 2019 but may attend
meetings by invitation.
Section 3: Governance
29
Carolan Dobson
Chair
Appointed on 1 January 2016 and
appointed as Chair on 2 March 2017
is former Chair of the Investment
Committee at Nest and member of the
Competition and Markets Authority.
An experienced fund manager having
previously been Head of US equities at
Murray Johnstone, Head of
Pan-European equities global sectors
and UK equities at Abbey National Asset
Managers she therefore brings a wealth
of international fund management
experience to the board. She was also
Head of Investment Trusts at Murray
Johnstone and is currently non-
executive Chair of the Brunner Trust
plc and previously was Chair of
Baillie
Gifford UK Growth Trust plc, JP Morgan
European Discovery Trust and Abrdn
Smaller Companies Income Trust and
accordingly also brings considerable
knowledge of the investment trust
sector.
Attendance record:
Board: 4/4
Audit Committee: n/a
1
Nomination Committee: 1/1
Management Engagement
Committee: 1/1
Remuneration Committee: 1/1
Marketing Committee: n/a
Craig Cleland
Appointed on 1 January 2019 and
appointed as Chairman of the Audit
Committee on 31 March 2019
and appointed as Chairman of
the Remuneration Committee on
9 November 2023
is Head of Corporate Development/
Investment Trusts on a part time
basis at Manulife CQS Investment
Management Limited, a multi-asset
asset management firm in London
with a focus on credit markets, where
his responsibilities include advising
and developing the closed-end fund
business. He is also a director of CC
Japan Income & Growth Trust plc
and Invesco Global Equity Income
Trust plc. He worked previously at
JPMorgan Asset Management (UK)
Limited, latterly as Managing Director,
and led their technical groups in
the investment trust business. He
also worked with the AIC Technical
Committee on SORP and taxation
changes in connection with this role.
Attendance record:
Board: 4/4
Audit Committee: 3/3
Nomination Committee: 1/1
Management Engagement
Committee: 1/1
Remuneration Committee: 1/1
Marketing Committee: n/a
30
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Laurie Meister
Appointed on 1 February 2020
has 35 years of experience in the
financial sector, with 28 years of her
career dedicated to Latin American
equities. Ms Meister was the head of
Deutsche Bank’s Institutional Equity
Latin American Research Sales Desk
(for the UK, Europe and the Middle
East) from 2008 until June 2019. Prior
to this she worked for Chase/JPMorgan
as a director with responsibility
for re-building the CEMEA equity
business (incorporating sales, trading
and research operations), and then
becoming a director in JPMorgan’s
Senior Equity Research Sales Latin
American Equities team for UK, Europe
& Asia. Ms Meister has also worked in
equity sales for Robert Fleming and
Merrill Lynch Capital Markets with a
focus on Latin American equities.
Attendance record:
Board: 4/4
Audit Committee: 3/3
Nomination Committee: 1/1
Management Engagement
Committee: 1/1
Remuneration Committee: 1/1
Marketing Committee: 1/1
Directors’ biographies
continued
Nigel Webber
Appointed on 1 April 2017
has broad investment experience
which has seen him lead the design
of investment solutions for affluent
and high-net-worth individuals across
global markets and multiple asset
classes. Most recently, he was Global
Chief Investment Officer for HSBC
Private Banking where he held global
responsibility for all investment activity
for Group Private Banking. During his
time at HSBC, he was also Chairman of
the Global Investment Committee for
Group Private Bank and Chairman of
HSBC Alternative Investments Limited.
Prior to this, he held a number
of blue-chip executive positions around
the world for investment and asset
management businesses. He is
a qualified Chartered Accountant.
Attendance record:
Board: 4/4
Audit Committee: 3/3
Nomination Committee: 1/1
Management Engagement
Committee: 1/1
Remuneration Committee: 1/1
Marketing Committee: 1/1
None of the Directors has a service contract with the Company. The terms of their appointment are detailed in a
letter sent to them when they join the Board. These letters are available for inspection at the registered office of
the Company and will be available at the Annual General Meeting.
30
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Section 3: Governance
31
The Directors present the Strategic Report of the Company for the year ended 31 December 2024.
Objective
The Company’s objective is to secure long-term capital growth and an attractive total return primarily through investing in
quoted securities in Latin America.
Strategy, business model and investment policy
Strategy
The Company invests in accordance with the objective given above. The Board is collectively responsible to shareholders for
the long-term success of the Company and is its governing body. There is a clear division of responsibility between the Board
and the Manager. Matters for the Board include setting the Company’s strategy, including its investment objective and policy,
setting limits on gearing (both bank borrowings and the effect of derivatives), capital structure, governance, and appointing
and monitoring of performance of service providers, including the Manager.
Business model
The Company’s business model follows that of an externally managed investment trust; therefore the Company does not have
any employees and outsources its activities to third party service providers including the Manager who is the principal service
provider.
In accordance with the Alternative Investment Fund Managers’ Directive (AIFMD), as implemented, retained and onshored
in the UK, the Company is an Alternative Investment Fund (AIF). BlackRock Fund Managers Limited (the Manager) is the
Company’s Alternative Investment Fund Manager.
The management of the investment portfolio and the administration of the Company have been contractually delegated to the
Manager who in turn (with the permission of the Company) has delegated certain investment management and other ancillary
services to BlackRock Investment Management (UK) Limited (BIM (UK) or the Investment Manager). The Manager, operating
under guidelines determined by the Board, has direct responsibility for the decisions relating to the day-to-day running of the
Company and is accountable to the Board for the investment, financial and operating performance of the Company.
The Company delegates fund accounting services to the Manager, which in turn sub-delegates these services to The Bank
of New York Mellon (International) Limited. Other service providers include the Depositary, The Bank of New York Mellon
(International) Limited and the Registrar, Computershare Investor Services PLC.
Details of the contractual terms with these service providers are set out in the Directors’ Report on pages 49 and 50.
Our strategy is that the portfolio will be chosen from a spread of companies which are listed in, or whose main activities are in,
Latin America.
As an actively managed fund, our primary aims over the medium term are significant outperformance of our benchmark
index (the MSCI EM Latin America Index – net total return basis). Our portfolio and performance will diverge from the returns
obtained simply by investing in the index.
Investment policy
As a closed-end company we are able to adopt a longer-term investment horizon, and therefore may, when appropriate, have a
higher proportion of less liquid mid and smaller capitalisation companies than comparable open ended funds.
The portfolio is subject to a number of geographical restrictions relative to the benchmark index. For Brazil, Mexico, Chile,
Argentina, Peru, Colombia and Venezuela, the portfolio weighting is limited to plus or minus 20% of the index weighting
for each of those countries. For all other Latin American countries the limit is plus or minus 10% of the index weighting.
The Investment Manager is not constrained from investing outside the index. Additionally, the Company may invest in the
securities of quoted companies whose main activities are in Latin America but which are not established or incorporated in the
region or quoted on a local exchange.
The Company’s policy is that up to 10% of the gross assets of the portfolio may be invested in unquoted securities. For the
year ended 31 December 2024 and up to the date of this report, the Company did not hold any unquoted securities.
The Company will not hold more than 15% of the market capitalisation of any one company and no more than 15% of the
Company’s investments will be held in any one company as at the date any such investment is made.
Strategic Report
32
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
No more than 15% of the gross assets of the portfolio shall be invested in other UK listed investment companies (including
other investment trusts).
The Company may deal in derivatives (including options, futures and forward currency transactions) for the purposes of
efficient portfolio management (i.e. for the purpose of reducing, transferring or eliminating investment risk in the underlying
investments of a collective investment undertaking, including any technique or instrument used to provide protection against
exchange and credit risks). No more than 20% of the Company’s portfolio by value may be under option at any given time. The
Company did not deal in any derivatives in the year ended 31 December 2024, nor has it entered into any derivative contracts
since the year end and up to the date of this report.
The Company may underwrite or sub-underwrite any issue or offer for the sale of investments. No such commitment will be
entered into if, at that time, the aggregate of such investments would exceed 10% of the net asset value of the Company or any
such individual investment would exceed 3% of the net asset value of the Company.
The Company may, from time to time, use borrowings to gear its investment portfolio or in order to fund the market purchase
of its own ordinary shares. Under the Company’s Articles of Association, the net borrowings of the Company may not exceed
100% of the Company’s adjusted capital and reserves (as defined in the Glossary on pages 118 to 123). However, net
borrowings are not expected to exceed 25% of net assets under normal circumstances. The Investment Manager may also
hold cash or cash-equivalent securities when it considers it to be advantageous to do so.
The Company’s financial statements are maintained in US Dollars. Although many investments are likely to be denominated
and quoted in currencies other than in US Dollars, the Company does not currently employ a hedging policy against
fluctuations in exchange rates.
No material change will be made to the Company’s investment policy without shareholder approval.
Investment process
An overview of the investment process is set out below.
The Investment Manager’s main focus is to invest in securities that provide opportunities for strong capital appreciation
relative to our benchmark. We aim to maintain a concentrated portfolio of high conviction investment ideas that typically
consists of companies with a combination of mispriced growth potential and/or display attributes of sustained value creation
that are underappreciated by the financial markets.
The Manager’s experienced research analyst team conducts on the ground research, meeting with target companies,
competitors, suppliers and others in the region in order to generate investment ideas for portfolio construction. In addition, the
investment team meets regularly with government officials, central bankers, industry regulators and consultants.
Final investment decisions result from a combination of bottom-up, company specific research with top-down, macro analysis.
Share rating and discount control
The Directors recognise that it is in the long-term interests of shareholders that shares do not trade at a significant discount to
their prevailing NAV. The Board monitors the level of the Company’s discount to NAV on an ongoing basis.
Over the year under review, the Company’s share price traded in the range of a discount of 4.5% to 16.5% and at the year end
stood at a discount of 11.6%. Further details setting out how the discount or premium at which the Company’s shares trade is
calculated are included in the Glossary on page 120.
A special resolution was passed at the AGM of the Company held on 22 May 2024, granting the Directors’ authority to make
market purchases of the Company’s ordinary shares to be held, sold, transferred or otherwise dealt with as treasury shares
or cancelled upon completion of the purchase. The Board intends to renew this authority at the AGM to be held in May 2025.
During the period to 31 December 2024, no ordinary shares were repurchased and no ordinary share were issued.
Strategic Report
continued
Section 3: Governance
33
The Board adopted a new discount control mechanism, for the four year period from 1 January 2022 to 31 December 2025.
Under this new mechanism the Board undertakes to make a tender offer to shareholders for 24.99% of the issued share
capital (excluding treasury shares) of the Company at a tender price reflecting the latest cum-income Net Asset Value (NAV)
less 2% and related portfolio realisation costs if, over the four year period from 1 January 2022 to 31 December 2025 (the
‘Calculation Period’), either of the following conditions are met:
(i)
the annualised total NAV return of the Company does not exceed the annualised benchmark index (being the MSCI EM
Latin America Index) US Dollar net total return by more than 50 basis points over the Calculation Period; or
(ii) the average daily discount to the cum-income NAV exceeds 12% as calculated with reference to the trading of the ordinary
shares over the Calculation Period.
The making and implementation of this tender offer will be conditional, amongst other things, upon the Company
having the required shareholder authority or such shareholder authority being obtained, the Company having sufficient
distributable reserves to effect the repurchase of any successfully tendered shares and, having regard to its continuing
financial requirements, sufficient cash reserves to settle the relevant transactions with shareholders, the Company’s biennial
continuation vote being approved at the Annual General Meeting in 2026. The Board believes that a four year performance
target enables the Manager to take a sufficiently long-term approach to investing in quality companies in the region, and it
believes that it is in shareholders’ interests as a whole that this time period for assessing performance be adopted.
34
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Section 172 Statement: promoting the success of BlackRock
Latin American Investment Trust plc
The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain more fully how they have discharged
their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit
of members as a whole. This enhanced disclosure covers how the Board has engaged with and understands the views of
stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that
it has had on the Board’s decisions.
As the Company is an externally managed investment company and does not have any employees or customers, the
Board considers the main stakeholders in the Company to be the shareholders, key service providers (being the Manager
and Investment Manager, the Custodian, Depositary, Registrar and Broker) and investee companies. The reasons for this
determination, and the Board’s overarching approach to engagement, are set out in the table below.
Stakeholders
Shareholders
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful
delivery of its long-term strategy. The Board is focused on fostering good working relationships with shareholders and on
understanding the views of shareholders in order to incorporate them into the Board’s strategy and objectives in delivering
long-term growth and income.
Manager and Investment Manager
The Board’s main working relationship is with the Manager, who is responsible for the Company’s portfolio management
(including asset allocation, stock and sector selection) and risk management, as well as ancillary functions such as
administration, secretarial, accounting and marketing services. The Manager has sub-delegated portfolio management to the
Investment Manager. Successful management of shareholders’ assets by the Investment Manager is critical for the Company
to successfully deliver its investment strategy and meet its objective. The Company is also reliant on the Manager as AIFM to
provide support in meeting relevant regulatory obligations under the AIFMD and other relevant legislation.
Other key service providers
In order for the Company to function as an investment trust with a listing on the Closed-Ended Investment Funds Category
of the official list of the FCA and trade on the London Stock Exchange’s (LSE) main market for listed securities, the Board
relies on a diverse range of advisors for support in meeting relevant obligations and safeguarding the Company’s assets. For
this reason the Board considers the Company’s Custodian, Depositary, Registrar and Broker to be stakeholders. The Board
maintains regular contact with its key external providers and receives regular reporting from them through the Board and
Committee meetings, as well as outside of the regular meeting cycle.
Investee companies
Portfolio holdings are ultimately shareholders’ assets, and the Board recognises the importance of good stewardship and
communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors
the Manager’s stewardship activities and receives regular feedback from the Manager in respect of meetings with the
management of investee companies.
Strategic Report
continued
Section 3: Governance
35
A summary of the key areas of engagement undertaken by the Board with its key stakeholders in the year under review and
how Directors have acted upon this to promote the long-term success of the Company are set out in the table below.
Area of Engagement
Investment mandate and objective
Issue
The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to
shareholders over the long term. However, the Board recognises that securities within the Company’s investment remit may
involve significant additional risk due to the political volatility and environmental, social and governance concerns facing
many of the countries in the Company’s investment universe. More than ever, consideration of material ESG information
and sustainability risk is an important element of the investment process and must be factored in when making investment
decisions. The Board also has responsibility to shareholders to ensure that the Company’s portfolio of assets is invested in line
with the stated investment objective and in a way that ensures an appropriate balance between spread of risk and portfolio
returns.
Engagement
The Board believes that responsible investment and sustainability are important to the longer-term delivery of growth in
capital and income and has worked very closely with the Manager throughout the year to regularly review the Company’s
performance, investment strategy and underlying policies, and to understand how ESG considerations are integrated into the
investment process.
While the Company has not adopted an ESG investment strategy or exclusionary screens, the Manager’s approach to the
consideration of ESG factors in respect of the Company’s portfolio, as well as its engagement with investee companies to
encourage the adoption of sustainable business practices which support long-term value creation, are kept under review by
the Board. The Manager reports to the Board in respect of its consideration of ESG factors and how these are integrated into
the investment process; a summary of BlackRock’s approach to ESG integration is set out on page 22.
The Board discussed ESG concerns in respect of specific portfolio companies with the Manager, including the investment
rationale for holding companies with poor ESG ratings and the engagement being entered into with management teams to
address the underlying issues driving these ratings.
The Company does not seek to become an Article 8 or 9 company under the EU Sustainable Finance Disclosure Regulation
(EU SFDR) legislation and will not seek to have one of the 4 sustainability labels under the FCA’s Sustainability Disclosure
Requirements (SDR) regime, as the Board believes engagement is likely to be more effective in Latin America than exclusion.
The Investment Manager has access to a range of data sources, including principal adverse indicator (PAI) data, when making
decisions on the selection of investments. However, whilst BlackRock considers ESG risks for all portfolios and these risks
may coincide with environmental or social themes associated with the PAIs, unless stated otherwise in the AIFMD Disclosure
Document, the Company does not commit to considering PAIs in driving the selection of its investments.
Impact
The portfolio activities undertaken by the Manager, can be found in the Investment Manager’s Report on pages 9 to 12.
Dividend target
Issue
A key element of the Board’s overall strategy to reduce the discount at which the Company’s shares trade is the Company’s
dividend policy whereby the Company pays a regular quarterly dividend equivalent to 1.25% of the Company’s US Dollar
NAV at the end of each calendar quarter. The Board believes this policy which produced a dividend yield of 7.1% (based on
the share price of 348.17 cents per share at 31 December 2024, equivalent to the Sterling price of 278.00 pence per share
translated into US cents at the rate prevailing at 31 December 2024 of US$1.25 to £1), enhances demand for the Company’s
shares, which will help to narrow the Company’s discount over time. These dividends are funded out of capital reserves to the
extent that current year revenue and revenue reserves are insufficient; the Board believes that this removes pressure from the
investment managers to seek a higher income yield from the underlying portfolio itself which could detract from total returns
but keep the dividend policy and its impact on total return under review.
36
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Engagement
The Manager reports total return performance statistics to the Board on a regular basis, along with the portfolio yield and the
impact of the dividend policy on brought forward distributable reserves.
The Board reviews the Company’s discount on a regular basis and holds regular discussions with the Manager and the
Company’s broker regarding the discount level.
The Manager provides the Board with feedback and key performance statistics regarding the success of the Company’s
marketing initiatives which include messaging to highlight the quarterly dividends.
The Board also reviews feedback from shareholders in respect of the level of dividend, shareholders may attend the Company’s
Annual General Meeting where formal questions may be put to the Board.
Impact
Since the dividend policy was introduced in July 2018, the Company’s discount has narrowed from an average of 13.5% for the
two year period preceding the introduction of the new policy on 13 March 2018 to an average of 11.4% for the period from 14
March 2018 to 31 December 2024. At 26 March 2025 the discount stood at 12.1%.
Of total dividends of US$8,196,000 paid out in the year, the full amount has been paid out of current year revenue.
The Company’s portfolio managers attend professional investor/analyst meetings and webcast presentations live to
professional and private investors over the year to promote the Company and raise the profile in terms of the investment
strategy, including the dividend policy.
Discount management
Issue
The Board recognises that it is in the long-term interests of shareholders that shares do not trade at a significant discount to
their prevailing NAV.
Engagement
The Board has put in place a discount control mechanism covering the four years to 31 December 2025 whereby shareholders
will be offered a tender for 24.99% of the shares in issue, excluding treasury shares, (at a tender price reflecting the latest cum
income NAV less 2% and related portfolio realisation costs) in the event that the continuation vote for each relevant biennial
period is approved (being the continuation vote at the AGM in 2026), where either of the following conditions have been met:
(i)
the annualised total NAV return of the Company does not exceed the annualised benchmark index (being the MSCI EM
Latin America Index) US Dollar net total return by more than 50 basis points over the four year period from 1 January 2022
to 31 December 2025; or
(ii) the average daily discount to the cum-income NAV exceeds 12% as calculated with reference to the trading of the shares
over the Calculation Period. Further details are set in the Strategic Report on pages 32 and 33 and page 39.
The Board monitors the tender trigger targets described on pages 32 and 33 on a regular basis in conjunction with the
Manager. The Manager provides regular performance updates and detailed performance attribution.
Impact
The Company’s average discount for the period from 1 January 2022 to 31 December 2024 was 11.3%
1
compared to the
tender discount threshold of 12.0%
1
.
The Company’s annualised NAV performance of -1.9% for the same period underperformed the benchmark (which rose by 2.1%
on an annualised basis) by -4.0% (equivalent to 400 basis points). For the tender not to be triggered, the NAV must outperform
the benchmark by more than 50 basis points on an annualised basis over the four years to 31 December 2025. The Company’s
discount has widened over the year under review, from 11.5% at 31 December 2023 to 11.6% at 31 December 2024.
As at
26 March 2025 the discount was 12.1%.
Strategic Report
continued
1
Alternative Performance Measures, see Glossary on pages 118 to 123.
Section 3: Governance
37
Service levels of third party providers
Issue
The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of
service: including the Manager in respect of investment performance and delivering on the Company’s investment mandate;
the Custodian and Depositary in respect of their duties towards safeguarding the Company’s assets; the Registrar in its
maintenance of the Company’s share register and dealing with investor queries and the Company’s Broker in respect of the
provision of advice and acting as a market maker for the Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a regular basis. The Board carries out a robust annual
evaluation of the Manager’s performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third party service providers and concludes on their suitability
to continue in their role.
The Board receives regular updates from the AIFM, Depositary, Registrar and Broker on an ongoing basis.
The Board works closely with the Manager to gain comfort that business continuity plans continue to operate effectively for all
of the Company’s service providers.
Impact
All performance evaluations were performed on a timely basis and the Board concluded that all third party service providers,
including the Manager, Custodian, Depositary and Fund Accountant were operating effectively and providing a good level of
service.
The Board has received updates in respect of business continuity planning from the Company’s Manager, Custodian,
Depositary, Fund Accountant, Broker, Registrar and Printer, and is confident that arrangements are in place to ensure that a
good level of service will be maintained.
Board composition
Issue
The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience and
skills, and that it is compliant with best corporate governance practice under the UK Code, including guidance on tenure and
the composition of the Board’s committees.
Engagement
The Board regularly reviews succession planning arrangements. The Nomination Committee has agreed the selection criteria
and the method of selection, recruitment and appointment. Board diversity, including gender, is taken into account when
establishing recruitment criteria. When undertaking recruitment activity, the Board will use the services of an external search
consultant to identify suitable candidates.
All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions in respect of the
2024 evaluation process are given on page 64). All Directors stand for re-election by shareholders annually. Shareholders may
attend the AGM and raise any queries in respect of Board composition or individual Directors in person, or may contact the
Company Secretary or the Chair using the details provided on page 113 if they wish to raise any issues.
Impact
As at the date of this report, the Board is comprised of two women and two men.
Details of each Director’s contribution to the success and promotion of the Company are set out in the Directors’ Report on
pages 53 and 54. The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board
composition in 2024. Details for the proxy voting results in favour and against individual Directors’ re-election at the 2023
AGM are given on the Company’s website at
www.blackrock.com/uk/brla
.
38
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Shareholders
Issue
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful
delivery of its long-term strategy.
Engagement
The Board is committed to maintaining open channels of communication and to engage with shareholders. The Company
welcomes and encourages attendance and participation from shareholders at its Annual General Meetings. Shareholders
therefore have the opportunity to meet the Directors and Investment Manager and to address questions to them directly.
The Annual Report and Half Yearly Financial Report are available on the BlackRock website and are also circulated to
shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly
factsheets, the daily NAV and other information are also published on the website at
www.blackrock.com/uk/brla
.
The Board also works closely with the Manager to develop the Company’s marketing strategy, with the aim of ensuring
effective communication with shareholders in respect of the investment mandate and objective. Unlike trading companies,
one-to-one shareholder meetings usually take the form of a meeting with the portfolio managers as opposed to members
of the Board. As well as attending regular investor meetings the portfolio managers hold regular discussions with wealth
management desks and offices to build on the case for, and understanding of, long-term investment opportunities in Latin
America. The Manager also coordinates public relations activity, including meetings between the portfolio managers and
relevant industry publications to set out their vision for the portfolio strategy and outlook for the region. The Manager releases
monthly portfolio updates to the market to ensure that investors are kept up to date in respect of performance and other
portfolio developments, and maintains a website on behalf of the Company that contains relevant information in respect of
the Company’s investment mandate and objective. If shareholders wish to raise issues or concerns with the Board, they are
welcome to do so at any time. The Chair is available to meet directly with shareholders periodically to understand their views
on governance and the Company’s performance where they wish to do so. She may be contacted via the Company Secretary
whose details are given on page 113.
Impact
The Board values any feedback and questions from shareholders ahead of and during Annual General Meetings in order to
gain an understanding of their views and will take action when and as appropriate. Feedback and questions will also help the
Company evolve its reporting, aiming to make reports more transparent and understandable.
Feedback from all substantive meetings between the Investment Manager and shareholders will be shared with the Board.
The Directors will also receive updates from the Company’s broker on any feedback from shareholders, as well as share trading
activity, share price performance and an update from the Investment Manager.
The portfolio managers attended a number of professional investor meetings throughout the year and held discussions with
a range of wealth management desks and offices in respect of the Company during the year under review. The Manager also
held group webcasts in the year to provide investors with portfolio updates and give them the opportunity to discuss any
issues with the portfolio managers. 65 press articles about the Company were published in the year under review focusing
on the Company’s profile and the case for long-term investment opportunities in Latin America. These included 4 pieces of
national coverage, 31 pieces of intermediary coverage and 30 pieces of consumer investment coverage.
Performance
Details of the Company’s performance are set out in the Chair’s Statement on page 5.
The Investment Manager’s Report on pages 9 to 13 forms part of this Strategic Report and includes a review of the main
developments during the year, together with information on investment activity within the Company’s portfolio.
Portfolio analysis
A detailed analysis of the investments and the sector and geographical allocations is provided on pages 17 to 21.
Strategic Report
continued
Section 3: Governance
39
Results and dividends
The results for the Company are set out in the Income Statement on page 83. The total loss for the year on ordinary activities,
after taxation, was US$65,561,000 (2023: gain of US$53,405,000) of which the revenue profit amounted to US$6,890,000
(2023: US$8,967,000), and the capital loss amounted to US$72,451,000 (2023: gain of US$44,438,000).
Under the Company’s dividend policy, dividends are calculated based on 1.25% of the US Dollar NAV at close of business
on the last working day of March, June, September and December and are paid in May, August, November and February
respectively. Dividends will be financed through a combination of available net income in each financial year and revenue and
capital reserves. The Company has declared interim dividends totalling 24.70 cents per share under this policy in respect of
the year ended 31 December 2024 as detailed in the table below.
Dividend
Pay date
Quarter to 31 March 2024
7.39 cents
16 May 2024
Quarter to 30 June 2024
6.13 cents
13 August 2024
Quarter to 30 September 2024
6.26 cents
8 November 2024
Quarter to 31 December 2024
4.92 cents
7 February 2025
Total
24.70 cents
Details of this policy are also set out in the Chair’s Statement on page
5
.
NAV, share price and index performance
At each meeting the Board reviews the detail of the performance of the portfolio as well as the net asset value and share price
(total return) for the Company and compares this to the performance of other companies in the peer group of Latin American
open and closed-end funds and to our benchmark.
The Board also regularly reviews a number of indices and ratios to understand the impact on the Company’s relative
performance of the various components such as asset allocation and stock selection.
Information on the Company’s performance is given in the performance record on page 4 and the Chair’s Statement and
Investment Manager’s Report on pages 5 to 7 and 9 to 13 respectively.
Details of the Company’s discount control
The Board recognises that it is in the long-term interests of shareholders that shares do not trade at a significant discount
to their prevailing NAV. The Board monitors the level of the Company’s discount to NAV on an ongoing basis and considers
strategies for managing any discount. In the year to 31 December 2024, the Company’s share price to NAV traded in the range
of a discount of 4.5% to 16.5% on a cum-income basis. The Board has in place a discount control mechanism whereby it
will offer shareholders the ability to tender up to 24.99% of the Company’s issued share capital at the AGM in 2026 if certain
performance and discount targets are not met. More details are given in the Strategic Report on pages 32 and 33.
Further details setting out how the discount or premium at which the Company’s shares trade is calculated are included in the
Glossary on pages 118 to 123.
Ongoing charges
The ongoing charges represent the Company’s management fee and all other operating expenses, excluding finance costs,
direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items expressed as a
percentage of average daily net assets.
The ongoing charges are based on actual costs incurred in the year as being the best estimate of future costs. The Board
reviews the ongoing charges and monitors the expenses incurred by the Company on an ongoing basis against a peer group
of Latin American open and closed-end funds. A definition setting out in detail how the ongoing charges ratio is calculated is
included in the Glossary on pages 118 to 123.
40
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Composition of shareholder register
The Board is mindful of the importance of a diversified shareholder register and the need to make the Company’s shares
attractive to long-term investors; it is therefore the Board’s aim to increase the diversity of the shareholder register over time.
The Board monitors the retail element of the register, which is defined for these purposes as wealth managers, Independent
Financial Advisors (IFAs) and direct private investors. As at 31 December 2024, the Company’s share register comprised
55.7% retail investors; the Board will monitor this with the aim of growing the retail element of the register over time.
Key performance indicators
At each Board meeting, the Directors consider a number of performance measures to assess the Company’s success in
achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the
Company over time are comparable to those reported by other investment trusts and are set out below.
The table below sets out the key KPIs for the Company. As indicated in footnote 2 to the table, some of these KPIs fall within
the definition of ‘Alternative Performance Measures’ (APMs) under guidance issued by the European Securities and Markets
Authority and additional information explaining how these are calculated is set out in the Glossary on pages 118 to 123.
Key Performance Indicators
Year ended
31 December
2024
Year ended
31 December
2023
Net asset value total return
1,2
-35.7%
37.8%
Share price total return
1,2
-35.3%
35.3%
Benchmark total return (net)
1
-26.4%
32.7%
Discount to net asset value
2
11.6%
11.5%
Average discount to net asset value for the year
12.2%
12.6%
Revenue return per share
23.40c
30.45c
Ongoing charges
2,3
1.23%
1.28%
Retail element of share register
4
55.7%
54.6%
1
Calculated in US Dollar terms with dividends reinvested.
2
Alternative Performance Measures, see Glossary on pages 118 to 123.
3
Ongoing charges represent the management fee and all other operating expenses excluding finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items as a % of
average daily net assets.
4
Source: Richard Davies Investor Relations.
Principal risks
The Company is exposed to a variety of risks and uncertainties and the key risks are set out on the following pages. The Board
has put in place a robust process to identify, assess and monitor the principal and emerging risks. A core element of this
process is the Company’s risk register. This identifies the risks facing the Company and assesses the likelihood and potential
impact of each risk and the quality of controls operating to mitigate it. A residual risk rating is then calculated for each risk
based on the outcome of the assessment. This approach allows the effect of any mitigating procedures to be reflected in the
final assessment.
The risk register is regularly reviewed and the risks reassessed. The risk environment in which the Company operates is also
monitored and regularly appraised. New risks are also added to the register as they are identified which ensures that the
document continues to be an effective risk management tool. The risk that unforeseen or unprecedented events including (but
not limited to) heightened geo-political tensions such as the conflicts in Russia
-Ukraine and the Middle East, high inflation
and the current cost of living crisis has had a significant impact on global markets. The Board has taken into consideration the
risks posed to the Company by the crisis and incorporated these into the Company’s risk register.
The risk register, its method of preparation and the operation of key controls in the Manager’s and third party service providers’
systems of internal control are reviewed on a regular basis by the Audit Committee in order to gain a more comprehensive
understanding of the Manager’s and other third party service providers’ risk management processes and how these apply
to the Company’s business. BlackRock’s internal audit department provides an annual presentation to the Audit Committee
Chairmen of the BlackRock investment trusts setting out the results of testing performed in relation to BlackRock’s internal
control processes. Where produced, the Audit Committee also reviews Service Organisation Control (SOC 1) reports from the
Company’s service providers.
Strategic Report
continued
Section 3: Governance
41
As required by the UK Corporate Governance Code, the Board has undertaken a robust assessment of both the principal and
emerging risks facing the Company, including those that would threaten its business model, future performance, solvency
or liquidity. Those principal risks have been described in the table that follows, together with an explanation of how they are
managed and mitigated. The Board will continue to assess these risks on an ongoing basis. Emerging risks are considered by
the Board as they come into view and are incorporated into the existing review of the Company’s risk register. They were also
considered as part of the annual evaluation process. Additionally, the Manager considers emerging risks in numerous forums
and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company
identified through the annual risk survey will be communicated to the Board.
Emerging risks that have been considered by the Board over the year include the impact of climate change, escalating
geo-political conflict and technological advances.
The key emerging risks identified are as follows:
Climate change: Investors can no longer ignore the impact that the world’s changing climate will have on their portfolios, with
the impact of climate change on returns, including climate-related natural disasters, now potentially significant and with the
potential to escalate more swiftly than one is able to predict. The Board receives ESG reports from the Manager on the portfolio
and the way ESG considerations are integrated into the investment decision-making, so as to mitigate risk at the level of stock
selection and portfolio construction.
Artificial Intelligence (‘AI’): Advances in computing power means that AI has become a powerful tool that will impact a huge
range of areas and with a wide range of applications that have the potential to dislocate established business models
and disrupt labour markets, creating uncertainty in corporate valuations. The significant energy required to power this
technological revolution will create further pressure on environmental resources and carbon emissions.
Geo-political risk: Escalating geo-political tensions (including, but not limited to tensions in the Middle East and the ongoing
war in Ukraine, or deteriorating relations between China and the US/other countries) have a significant negative impact on
global markets, with an increasing use of tariffs and domestic regulations making global trade more complex and driving
economic fragmentation.
The Board will continue to assess these risks on an ongoing basis. In relation to the 2018 UK Corporate Governance Code,
the Board is confident that the procedures that the Company has put in place are sufficient to ensure that the necessary
monitoring of risks and controls has been carried out throughout the reporting period.
The current risk register includes a number of risks which have been categorised as follows:
•
Counterparty;
•
Investment performance;
•
Income/dividend;
•
Legal and regulatory compliance;
•
Operational;
•
Market;
•
Financial; and
•
Marketing.
The principal risks and uncertainties faced by the Company during the financial year, together with the potential effects,
controls and mitigating factors, are set out in the following table.
42
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Counterparty
Principal Risk
Potential loss that the Company could incur if a counterparty is unable (or unwilling) to perform on its commitments.
Mitigation/Control
Due diligence is undertaken before contracts are entered into and exposures are diversified across a number of counterparties.
The Board reviews the controls put in place by the Investment Manager to monitor and to minimise counterparty exposure,
which include intra-day monitoring of exposures to ensure that these are within set limits.
The Depositary is liable for restitution for the loss of financial instruments held in custody unless able to demonstrate the loss
was a result of an event beyond its reasonable control.
Investment performance
Principal Risk
Returns achieved are reliant primarily upon the performance of the portfolio. The Board is responsible for:
•
deciding the investment strategy to fulfil the Company’s objective; and
•
monitoring the performance of the Investment Manager and the implementation of the investment strategy.
An inappropriate investment strategy may lead to:
•
poor performance compared to the benchmark index and the Company’s peer group;
•
a widening discount to NAV;
•
a reduction or permanent loss of capital; and
•
dissatisfied shareholders and reputational damage.
The Board is also cognisant of the long-term risk to performance from inadequate attention to ESG issues, and in particular
the impact of Climate Change. More detail in respect of these risks can be found in the AIFMD Fund Disclosures document
available on the Company’s website at
https://www.blackrock.com/uk/individual/literature/policies/itc-disclosure-blackrock-
latin-america-trust-plc.pdf
.
Mitigation/Control
To manage this risk the Board:
•
regularly reviews the Company’s investment mandate and long-term strategy;
•
has set investment restrictions and guidelines which the Investment Manager monitors and regularly reports on;
•
receives from the Investment Manager a regular explanation of stock selection decisions, portfolio exposure, gearing and
any changes in gearing and the rationale for the composition of the investment portfolio; and
•
monitors the maintenance of an adequate spread of investments in order to minimise the risks associated with factors
specific to particular sectors, based on the diversification requirements inherent in the investment policy.
ESG analysis is integrated in the Manager’s investment process, as set out on pages
22
to 24. This is monitored by the Board.
Strategic Report
continued
Section 3: Governance
43
Income/dividend
Principal Risk
The Company’s dividend policy is to pay dividends based on 1.25% of the US Dollar net asset value at each quarter end. Under
this policy, a portion of the dividend is likely to be paid out of capital reserves, and over time this might erode the capital base
of the Company, with a consequential impact on longer-term total returns. The rate at which this may occur and the degree
to which dividends are funded from capital are also dependent upon the level of dividends and other income earned from the
portfolio. Income returns from the portfolio are dependent, among other things, upon the Company successfully pursuing its
investment policy.
Any change in the tax treatment of dividends or interest received by the Company, including as a result of withholding taxes
or exchange controls imposed by jurisdictions in which the Company invests, may reduce the level of dividends received by
shareholders.
Mitigation/Control
The Board monitors this risk through the receipt of detailed income forecasts and considers the level of income at each
meeting.
The Company has the ability to make dividend distributions out of capital reserves as well as revenue reserves to support any
dividend target. These reserves totalled US$90.9 million at 31 December 2024.
The Board is mindful of the balance of shareholder returns between income and capital and monitors the impact of the
Company’s dividend on the Company’s capital base and the impact over time on total return.
Any changes to the Company’s dividend policy are communicated to the market on a timely basis and shareholder approval
will be sought for significant changes.
Legal and regulatory compliance
Principal Risk
The Company has been approved by HM Revenue & Customs as an investment trust, subject to continuing to meet the
relevant eligibility conditions and operates as an investment trust in accordance with Chapter 4 of Part 24 of the Corporation
Tax Act 2010. As such, the Company is exempt from capital gains tax on the profits realised from the sale of its investments.
Any breach of the relevant eligibility conditions could lead to the Company losing investment trust status and being subject to
corporation tax on capital gains realised within the Company’s portfolio. In such event the investment returns of the Company
may be adversely affected.
Any serious breach could result in the Company and/or the Directors being fined or the subject of criminal proceedings or the
suspension of the Company’s shares which would in turn lead to a breach of the Corporation Tax Act 2010.
Amongst other relevant laws and regulations, the Company is required to comply with the provisions of the Companies Act
2006, the Alternative Investment Fund Managers’ Directive, the UK Listing Rules, international sanctions and the FCA’s
Disclosure Guidance and Transparency Rules.
Mitigation/Control
The Investment Manager monitors investment movements and the amount of proposed dividends, if any, to ensure that the
provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached. The results are reported to the Board at
each meeting.
Compliance with the accounting rules affecting investment trusts is carefully and regularly monitored. The Company Secretary
and the Company’s professional advisers provide regular reports to the Board in respect of compliance with all applicable rules
and regulations.
44
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Following authorisation under the Alternative Investment Fund Managers’ Directive (AIFMD), the Company and its appointed
Alternative Investment Fund Manager (AIFM) are subject to the risks that the requirements are not correctly complied
with. The Board and the AIFM also monitor changes in government policy and legislation which may have an impact on the
Company.
The Market Abuse Regulation came into force on 3 July 2016. The Board takes steps to ensure that individual Directors (and
their Persons Closely Associated) are aware of their obligations under the regulation and has updated internal processes which
seek to ensure the risk of non-compliance is effectively mitigated.
Operational
Principal Risk
In common with most other investment trust companies, the Company has no employees. The Company therefore relies
on the services provided by third parties. Accordingly, it is dependent on the control systems of the Manager and The
Bank of New York Mellon (International) Limited (the Custodian, Depositary and Fund Accountant) who maintain the
Company’s assets, dealing procedures and accounting records. The Company’s share register is maintained by the Registrar,
Computershare Investor Services PLC. The security of the Company’s assets, dealing procedures, accounting records and
adherence to regulatory and legal requirements depend on the effective operation of the systems of these other third party
service providers. There is a risk that a major disaster, such as floods, fire, a global pandemic or terrorist activity, renders the
Company’s service providers unable to conduct business at normal operating capacity and effectiveness.
Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the
Company’s performance. Disruption to the accounting, payment systems or custody records could prevent the accurate
reporting and monitoring of the Company’s financial position.
Mitigation/Control
Due diligence is undertaken before contracts are entered into with third party service providers. Thereafter, the performance of
the provider is subject to regular review and reported to the Board.
Most third party service providers produce Service Organisation Control (SOC 1) reports to provide assurance regarding the
effective operation of internal controls as reported on by their reporting accountants. These reports are provided to the Audit
Committee for their review.
The Company’s assets/financial instruments held in custody are subject to a strict liability regime and in the event of a loss
of such financial assets held in custody, the Depositary must return assets of an identical type or the corresponding amount,
unless able to demonstrate the loss was a result of an event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager and all other third party service providers
and compliance with the Investment Management Agreement on a regular basis. The Board also considers the business
continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of their review
of the Company’s risk register. The Board has received updates from key service providers (the Manager, the Depositary, the
Custodian, the Fund Accountant, the Broker, the Registrar and the Printer) confirming that appropriate business continuity
arrangements are in place.
Market
Principal Risk
Market risk arises from volatility in the prices of the Company’s investments. It represents the potential loss the Company
might suffer through holding investments in the face of negative market movements. There may be exposure to significant
economic, geo-political and currency risks due to the location of the operation of the businesses in which the Company may
invest, or as a result of a global economic crisis such as the Russia-Ukraine and Middle East conflicts. Shares in businesses
in which the Company invests can prove volatile and this may be reflected in the Company’s share price. Market risk includes
the potential impact of events which are outside the Company’s control, including (but not limited to) heightened geo-political
tensions and military conflict, a global pandemic and high inflation. The Company may also invest in smaller capitalisation
companies or in the securities markets of developing countries which are not as large as the more established securities
markets and have substantially less trading volume, which may result in a lack of liquidity and higher price volatility.
Strategic Report
continued
Section 3: Governance
45
Corruption also remains a significant issue across the Latin American investment universe and the effects of corruption
could have a material adverse effect on the Company’s performance. Accounting, auditing and financial reporting standards
and practices and disclosure requirements applicable to many companies in Latin American countries may be less rigorous
than in other markets. As a result, there may be less information available publicly to investors in these securities, and such
information as is available is often less reliable.
Mitigation/Control
The Board considers asset allocation, stock selection, unquoted investments, if any, and levels of gearing on a regular basis
and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager.
The Board monitors the implementation and results of the investment process with the Investment Manager.
The Board also recognises the benefits of a closed-end fund structure in extremely volatile markets such as those experienced
during the Russia-Ukraine and Middle East conflicts. Unlike open ended counterparts, closed
-end funds are not obliged to sell
down portfolio holdings at low valuations to meet liquidity requirements for redemptions. During times of elevated volatility
in markets following the Russian invasion of Ukraine and market stress, the ability of a closed-end fund structure to remain
invested for the long term enables the portfolio managers to adhere to disciplined fundamental analysis from a bottom-up
perspective and be ready to respond to dislocations in the market as opportunities present themselves.
Financial
Principal Risk
The Company’s investment activities expose it to a variety of financial risks that include interest rate, currency and liquidity
risk.
Mitigation/Control
Details of these risks are disclosed in note 16 to the financial statements, together with a summary of the policies for
managing these risks.
Marketing
Principal Risk
Marketing efforts are inadequate or do not comply with relevant regulatory requirements, and fail to communicate adequately
with shareholders or reach out to potential new shareholders, resulting in reduced demand for the Company’s shares and a
widening discount.
Mitigation/Control
The Board focuses significant time on communicating directly with the major shareholders and reviewing marketing strategy
and initiatives.
All investment trust marketing documents are subject to appropriate review and authorisation.
Viability statement
In accordance with provision 31 of the 2018 UK Corporate Governance Code, the Directors have assessed the prospects of the
Company over a longer period than the 12 months referred to by the ‘Going Concern’ guidelines. The Board recognises that it
is obliged to propose a biennial continuation vote, with the next vote at the AGM to be held in May 2026. The outcome of
this
event is unknown at the present time. In addition, the Board is cognisant of the uncertainty surrounding the potential duration
of the Russia-Ukraine conflict and its impact on the global economy and the prospects for many of the Company’s portfolio
holdings. Notwithstanding these uncertainties, given the factors stated below, the Board expects the Company to continue
for the foreseeable future and has therefore conducted this review for the period up to the AGM in 2028, being a period of
three years from the date of approval of this report. The Board considers three years to be an appropriate time horizon, being a
reasonable time horizon to assess the performance of the Company.
46
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
In choosing this period for its assessment of the viability of the Company the Directors have considered the following matters:
•
the Company’s business model should remain attractive for much longer than the period up to the AGM in 2028, unless
there is a significant economic or regulatory change;
•
the ongoing relevance of the Company’s investment objective, business model and investment policy in the current
environment (in particular the Company’s closed-end structure which provides intraday liquidity to investors and the
ability for the portfolio managers to invest over a longer-term time horizon than many open ended peers). This longer-
term investment horizon is well-suited to Latin America as the volatility of this region can make short-term investing more
challenging. The Company is the only investment trust with exposure to the Latin American region;
•
the Board keeps the Company’s principal risks and uncertainties as set out on pages 40 to 45 under review, and is
confident that the Company has appropriate controls and processes in place to manage these and to maintain its
operating model, even given the global economic challenges posed by the Russia-Ukraine and Middle East conflicts, the
impact of climate change on portfolio companies and the current climate of heightened geo-political risk;
•
if the tender offer was to be implemented in 2026
and
was fully subscribed, the Directors consider that the Company will
still retain sufficient assets and liquidity to remain viable and to continue to operate in accordance with its business model
and investment mandate; and
•
the Board has reviewed the operational resilience of the Company and its key service providers (the Manager, Depositary,
Custodian, Fund Accountant, Registrar and Broker) and have concluded that all service providers are able to provide a
good level of service for the foreseeable future.
The Directors have also reviewed the assumptions and considerations underpinning the Company’s existing going concern
assertion which are based on:
•
processes for monitoring costs;
•
key financial ratios;
•
evaluation of risk management and controls;
•
portfolio risk profile;
•
share price discount to NAV;
•
gearing; and
•
counterparty exposure and liquidity risk.
Based on the results of their analysis, the Directors have a reasonable expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due over the period of their assessment.
Future prospects
The Board’s main focus is the achievement of capital growth and an attractive total return. The future of the Company
is dependent upon the success of the investment strategy. The outlook for the Company is discussed in both the Chair’s
Statement and the Investment Manager’s Report.
Social, community and human rights issues
As an investment trust with no employees, the Company has no direct social or community responsibilities or impact on
the environment. However, the Company believes that it is in shareholders’ interests to consider human rights issues,
environmental, social and governance factors when selecting and retaining investments. Details of the Company’s policy on
socially responsible investment are set out on pages 66 and 67.
Modern Slavery Act
As an investment vehicle the Company does not provide goods or services in the normal course of business, and does not have
customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking
statement under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chains, dealing
predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to
this matter.
Strategic Report
continued
Section 3: Governance
47
Directors, gender representation and employees
The Directors of the Company on 31 December 2024, all of whom held office throughout the year, are set out in the
governance structure and Directors’ biographies on pages 29 and 30.
The Board’s aim regarding diversity, including age, gender, educational and professional background and other broader
characteristics of diversity, is to take these into account during the recruitment and appointment process. However, the Board
is committed to an objective of appointing the most appropriate candidate, regardless of gender or other forms of diversity,
and therefore no targets have been set against which to report.
The Parker Review in respect of board diversity and the recent changes to the FCA’s Listing Rules set new diversity targets and
associated disclosure requirements for UK companies listed on the Closed-Ended Investment Funds Category of the London
Stock Exchange. Listing Rule 9.8.6R (9) requires listed companies to include a statement in their annual reports and accounts
in respect of certain targets on board diversity, or if those new targets have not been met to disclose the reasons for this.
This new requirement applies to accounting periods commencing on or after 1 April 2022. However, the Board did meet the
diversity targets from 17 November 2009 up until Professor Mahrukh Doctor resigned from the Board on the 31 March 2023.
The Board has reduced in size to four directors, in an effort to reduce costs, as the size of the Company has fallen post the
tender offer, which was completed in May 2022. The Board will consider board diversity when seeking to appoint a new director
in the future.
Further information on the composition and diversity of the Board can be found in the disclosure table which follows below:
Gender
Number
of Board
members
Percentage
of Board
Number
of senior
roles held
1
Men
2
50
1
Women
2
50
1
Ethnicity
2
White British (or any other white background)
4
100
2
Other
0
0
0
1
A senior position is defined as the role of Chair, Audit Committee Chairman or Senior Independent Director.
2
Categorisation of ethnicity is stated in accordance with the Office of National Statistics classification.
The Company does not have any employees, therefore there are no disclosures to be made in that respect.
The Chair’s Statement on pages 5 to 7, along with the Investment Manager’s Report and portfolio analysis on pages 9 to 13
form part of the Strategic Report.
The Strategic Report was approved by the Board at its meeting on
28
March 2025.
By order of the Board
GRAHAM VENABLES
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
28
March 2025
48
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
The Directors present the Annual Report and audited Financial Statements of the Company for the year ended 31 December
2024.
Status of the Company
The Company was incorporated in England and Wales on 12 March 1990 under registered number 2479975 and is domiciled
in the United Kingdom. The Company is registered as an investment company as defined in Section 833 of the Companies Act
2006 and operates as such.
The Company has been approved by HM Revenue & Customs as an investment trust in accordance with Sections 1158 and
1159 of the Corporation Tax Act 2010, subject to the Company continuing to meet eligibility requirements. The Directors are of
the opinion that the Company has conducted its affairs in a manner which will satisfy the conditions for continued approval.
As an investment company that is managed and marketed in the United Kingdom, the Company is an AIF falling within the
scope of, and subject to the requirements of, the AIFMD, as implemented, retained and onshored in the UK. The Company is
governed by the provisions of the Alternative Investment Fund Managers’ Regulations. The Company must also comply with
the Regulations in respect of leverage, outsourcing, conflicts of interest, risk management, valuation, remuneration and capital
requirements and must also make additional disclosures to both shareholders and the Financial Conduct Authority (FCA).
Further details are set out in the Regulatory Disclosures Report on pages 114 and 115 and in the Notes to the Financial
Statements on pages 87 to 105.
The Company’s ordinary shares are eligible for inclusion in the stocks and shares component of an Individual Savings Account
(ISA).
Facilitating retail investments
The Company currently conducts its affairs so that the shares issued by the Company can be recommended by independent
financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled
investments and intends to continue to do so for the foreseeable future.
The shares are excluded from the FCA’s restrictions which apply to non-mainstream pooled investments because they are
shares in an investment trust.
The Common Reporting Standard
Tax legislation under the Organisation for Economic Co-operation and Development Common Reporting Standard for
Automatic Exchange of Financial Account Information (The Common Reporting Standard) was introduced on 1 January 2016.
The legislation requires investment trust companies to provide personal information to HMRC about investors who purchase
shares in investment trusts. As an affected company, BlackRock Latin American Investment Trust plc must provide information
annually to the local tax authority on the tax residencies of a number of non-UK based certificated shareholders, and corporate
entities. The local tax authority to which the information is initially passed may in turn exchange the information with the
tax authorities of another country or countries in which the shareholder may be tax resident, where those countries (or tax
authorities in those countries) have entered into agreements to exchange financial account information.
All new shareholders, excluding those whose shares are held in CREST, entered onto the share register will be sent a
certification form for the purposes of collecting this information.
Shareholder Rights Directive II
The Shareholder Rights Directive II took effect from 10 June 2019 with some transitional provisions. It encourages long-term
shareholder engagement and transparency between companies and shareholders. In substantive terms the changes are small
for investment companies and the majority of requirements apply to the Company’s remuneration policy and disclosure of
processes, as well as related party transactions. There are also additional rules for Alternative Investment Fund Managers and
proxy advisers.
GDPR
Data protection rights were harmonised across the European Union following the implementation of the General Data
Protection Regulation (GDPR) on 25 May 2018. The Board has sought and received assurances from its third party service
providers that they have taken appropriate steps to ensure compliance with the regulation.
Directors’ Report
Section 3: Governance
49
Dividends
Details of the dividends paid and payable in respect of the year are set out in the Chair’s Statement on pages 5 to 6 and note 8
on page 93.
Investment management and administration
BlackRock Fund Managers Limited (BFM) was appointed as the Company’s AIFM with effect from 2 July 2014. The
management contract is terminable by either party on six months’ notice.
BlackRock Investment Management (UK) Limited (BIM (UK)) continues to act as the Company’s Investment Manager under a
delegation agreement with BFM. BIM (UK) also acted as the Secretary of the Company throughout the year. BFM receives an
annual management fee of 0.80% of net asset value. The Company does not have any performance fee arrangements in place.
The Investment Manager has sub-delegated certain of its responsibilities and functions, including its discretionary
management of the Company’s portfolio, to the US based Equity Income Investments team who are employed by BlackRock
Investment Management LLC (BIM LLC), a limited liability company incorporated in Delaware which is regulated by the US
Securities and Exchange Commission. BFM, BIM (UK) and BIM LLC are subsidiaries of BlackRock, Inc. which is a publicly
traded corporation on the New York Stock Exchange operating as an independent firm.
The Company contributes to a focused investment trust sales and marketing initiative operated by BIM (UK) on behalf of the
investment trusts under its management. In 2024, the Company’s contribution to the consortium element of the initiative,
which enables the trusts to achieve efficiencies by combining certain sales and marketing activities, represents a budget
of up to 0.025% per annum of its net assets (US$189.7 million) as at 31 December 2023 and this contribution is matched
by BIM (UK). In addition, a budget has been allocated for Company specific sales and marketing activity. Total fees paid or
payable for these services for the year ended 31 December 2024 amounted to US$103,000 (excluding VAT). The purpose of
the programme overall is to ensure effective communication with existing shareholders and to attract new shareholders to the
Company. This has the benefit of improving liquidity in the Company’s shares and helps sustain the stock market rating of the
Company.
Appointment of the manager
The Board has considered arrangements for the provision of investment management and other services to the Company on
an ongoing basis and a formal review is conducted annually. As part of the annual review, the Board considers the quality and
continuity of personnel assigned to handle the Company’s affairs, the investment process and the results achieved to date.
The Board considers the arrangements for the provision of investment management and other services to the Company on
an ongoing basis and a formal review is conducted annually. The Board believes that it is in shareholders’ interests as a whole
that BlackRock should continue as Investment Manager of the Company on the existing terms. The Board considers the
arrangements for the provision of investment management and other services to the Company on an ongoing basis and a
formal review is conducted annually.
As part of this review, the Board considered the quality and continuity of the personnel assigned to handle the Company’s
affairs, the investment process and the results achieved to date. The specialist nature of the Company’s investment remit
is, in the Board’s view, best served by the Latin American team at BlackRock, who have a proven track record in successfully
investing in the Latin American region.
The principal contents of the agreement with the Manager have been set out in the previous section. Having considered the
terms of this agreement, and those of other investment trust companies, the Board considers that the terms of the agreement
represent an appropriate balance between cost and incentivisation of the Manager.
Depositary and custodian
The Company has appointed The Bank of New York Mellon (International) Limited as its Depositary (the Depositary or BNY).
Their duties and responsibilities are outlined in the investment fund legislation (as contained in the FCA AIF Rulebook). The
main role of the Depositary under the AIFMD is to act as a central custodian with additional duties to monitor the operations
of the Company, including monitoring cash flows and ensuring the value of the Company’s shares is calculated appropriately
in accordance with the relevant regulations and guidance. The Depositary is also responsible for enquiring into the conduct
of the AIFM in each annual accounting period. The Depositary receives a fee payable at 0.0095% of the net assets of the
Company. The Company has appointed the Depositary in a tripartite agreement to which BFM as AIFM is also a signatory. The
Depositary is also liable for loss of financial instruments held in custody.
50
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Under the depositary agreement, custody services in respect of the Company’s assets have been delegated to BNY which
also receives a custody fee payable by the Company at rates depending on the number of trades effected and the location
of securities held. Custody fees of US$34,000 (2023: US$33,000) were paid to BNY. The depositary agreement is subject to
90 days’ notice of termination by any party.
Registrar
The Company has appointed Computershare Investor Services PLC as its Registrar (the Registrar). The principal duty of
the Registrar is the maintenance of the register of shareholders (including registering transfers). It also provides services in
relation to any corporate actions, dividend administration, shareholder documentation, the Common Reporting Standard and
the Foreign Account Tax Compliance Act.
The Registrar receives a fixed fee plus disbursements and VAT per annum. Fees in respect of corporate actions and other
services are negotiated on an arising basis.
Change of control
There are no agreements to which the Company is a party that might be affected by a change in control of the Company.
Exercise of voting rights in investee companies
The exercise of voting rights attached to the Company’s portfolio has been delegated to the Investment Manager, whose voting
policy is set out below. BlackRock’s approach to voting at shareholder meetings, engagement with companies and corporate
governance is framed within an investment context. BlackRock believes that sound corporate governance practices by
companies contribute to their long-term financial performance and thus to better risk-adjusted returns.
BlackRock’s proxy voting process is led by the BlackRock Investment Stewardship team (BIS), located in nine offices around
the world
#
.
During the year under review, the Investment Manager voted on 548 proposals at 56 general meetings on behalf of the
Company. At these meetings the Investment Manager voted in favour of most resolutions, as should be expected when
investing in well-run companies, but voted against 62 management resolutions and abstained from voting on 112 resolutions.
Most of the votes against were in respect of resolutions relating to the election or re-election of directors, changes to board
structure and governance and directors’ remuneration, which were deemed by the Investment Manager as not being in the
best interests of shareholders.
Continuation of the Company
As agreed by shareholders, an ordinary resolution for the continuation of the Company as an investment trust is proposed
biennially at the AGM. The last such resolution was put to shareholders at the 2024 AGM and hence the next resolution will
be put to shareholders at the AGM in 2026. If any such ordinary resolution is not passed, the Directors will convene a general
meeting within three months at which proposals for the liquidation or reconstruction of the Company will be put forward.
Principal risks
The key risks faced by the Company are set out in the Strategic Report on pages 40 to 45.
Going concern
As described in the viability statement on pages 45 and 46 of the Annual Report, the Directors have considered the financial
resources available to the Company, the nature and liquidity of the portfolio, the Company’s projected income and expenditure
and the fact that the Company’s ongoing charges represent a very small percentage of net assets (1.23% of average daily net
assets for the year ended 31 December 2024). In addition, the Board has considered the fact that the Company has access to
additional liquidity through a US$25 million bank overdraft facility, subject to a maximum restriction of 30% of net asset value
and the fact that the Company has a relatively liquid portfolio (as at 31 December 2024, 100% of the portfolio was capable
of being liquidated within three days). The Board has also reviewed the Company’s revenue and expense forecasts and is
comfortable that the Company’s business model remains viable and that the Company has sufficient resources to meet all
liabilities as they fall due for the period up to 31 March 2026 (being a period of at least 12 months from the date of approval
Directors’ Report
continued
#
As of 1 January 2025, BlackRock’s stewardship policies are developed and implemented by two independent, specialist teams,
BlackRock Investment Stewardship (BIS) and BlackRock Active Investment Stewardship (BAIS). While the two teams operate
independently, their general approach is grounded in widely recognized norms of corporate governance and shareholder rights and
responsibilities. BIS is responsible for stewardship activities in relation to clients’ assets managed by certain index equity portfolio
managers. Approximately 90% of BlackRock clients’ public equity assets under management are held in index strategies, as of 30
September 2024. BAIS partners with BlackRock’s active investment teams on company engagement and voting in relation to their
holdings.
Section 3: Governance
51
of these financial statements). Having taken these factors into account, the Directors are satisfied that the Company has
adequate resources to continue in operational existence for the foreseeable future, that it is able to meet its liabilities as they
fall due and that it is financially sound.
The Board has also considered the ongoing relevance of the Company’s investment objective, business model and investment
policy in the current environment of heightened global economic and political risks. The Board also notes that the Company’s
mandate to invest in the relatively volatile Latin American region is well-suited to the Company’s closed-end structure which
provides intraday liquidity to investors and the ability for the portfolio managers to invest over a longer-term time horizon than
many open ended peers. In the Board’s view this investment mandate also provides important diversification for investors in a
climate of heightened geo-political risk. The Company is the only investment trust with exposure to the Latin American region,
providing investors with the opportunity for exposure to the region.
The Board also remains mindful of the continuing uncertainty surrounding the potential duration of the Russia-Ukraine and
Middle East conflicts and the longer-term effects on the global economy.
As a result of their review, the Directors are satisfied that the Company has adequate resources to continue in operational
existence for the period to 31 March 2026, being a period of at least 12 months from the date of approval of these financial
statements. For this reason, they continue to adopt the going concern basis in preparing the financial statements. The
Company’s longer-term viability is considered in the viability statement on pages 45 and 46.
Directors
The Directors of the Company as at 31 December 2024 and their biographies are set out on pages 29 and 30. Details of
Directors’ interests in the ordinary shares of the Company are set out on page 58 of the Directors’ Remuneration Report. All of
the Directors in office at the date of this report held office throughout the year under review.
All appointments to the Board and re-elections of Directors are carried out in accordance with the Companies Act and the
Company’s Articles of Association. In accordance with best practice and developing Corporate Governance, Directors now
stand for re-election on an annual basis. Accordingly, Carolan Dobson, Craig Cleland, Laurie Meister and Nigel Webber will all
retire at the 2025 AGM and being eligible will offer themselves for re-election.
The Board has considered the time commitment of each Director to ensure that they have sufficient time to effectively
discharge their duties to the Company.
In respect of tenure, the Board adopts the view expressed in the AIC Code that long-serving Directors should not be prevented
from forming part of an independent majority. It does not consider that the length of a Director’s tenure, in isolation, reduces
his or her ability to act independently. The Board’s policy on tenure is that continuity and experience add significantly to the
strength of the Board and, as such, no formal limit on the overall length of service of any of the Company’s Directors has been
imposed, although the Board believes in the merits of an ongoing and progressive refreshment of its composition.
Having considered the Directors’ performance within the annual Board performance evaluation process, further details of
which are provided on pages 62 to 64, the Board believes that it continues to be effective and that the Directors bring extensive
knowledge and experience, suitably aligned to the activities of the Company, and demonstrate a range of valuable business,
financial and asset management skills, as set out in the table on the following page. Further details of their experience and
expertise can be found in their biographies on pages 29 and 30 and in the table above. Further details of the independence of
the Board and Board tenure is provided in the Corporate Governance Statement on page 63.
There were no contracts subsisting during the year under review or up to the date of this report in which a Director of the
Company is or was materially interested and which is or was significant in relation to the Company’s business. None of the
Directors are entitled to compensation for loss of office on the takeover of the Company. None of the Directors has a service
contract with the Company.
Directors’ indemnity
In addition to Directors’ and Officers’ liability insurance cover, the Company’s Articles of Association provide, subject to
the provisions of applicable UK legislation, an indemnity for Directors in respect of costs incurred in the defence of any
proceedings brought against them by third parties arising out of their positions as Directors, in which they are acquitted or
judgement is given in their favour. The Company has entered into Deeds of Indemnity with Directors individually which are
available for inspection at the registered office of the Company and will be available at the AGM.
The powers of the Directors are set out in the Corporate Governance Statement on pages 62 to 68.
52
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Conflicts of interest
The Board has put in place a framework for Directors to report conflicts of interests or potential conflicts of interest. All
Directors are required to notify the Company Secretary of any situations, or potential situations where they consider that they
have or may have a direct or indirect interest or duty that conflicted or possibly conflicted with the interests of the Company.
The Board has concluded that the framework worked effectively throughout the year.
All new situations or changes to previously reported situations are reviewed on an individual basis and reviewed at each
meeting. Directors are also reminded at each meeting that there remains a continuing obligation to notify the Company
Secretary of any new situations that may arise or any changes that may occur to a previously notified situation.
Directors’ Remuneration Report and Policy
The Directors’ Remuneration Report is set out on pages 56 to 59. An advisory ordinary resolution to approve this report will
be put to shareholders at the forthcoming AGM. The Company is also required to put the Directors’ Remuneration Policy to a
binding shareholder vote every three years. The Company’s Remuneration Policy was last put to shareholders at the AGM in
May 2023, therefore an ordinary resolution to approve the policy will next be put to shareholders at the AGM in 2026. Further
details are given on pages 56 to 61.
Notifiable interest in the Company’s voting rights
As at 31 December 2024, the following investors had declared a notifiable interest in the Company’s voting rights.
Number of
Ordinary
shares
% of issued
share
capital
City of London Management Limited
6,761,667
22.96%
Lazard Asset Management Ltd
2,543,323
8.64%
Transact
934,861
3.17%
Subsequent to the year end, and as at 26 March 2025, the following investors had declared a notifiable interest in the
Company’s voting rights.
Number of
Ordinary
shares
% of issued
share
capital
City of London Management Limited
6,473,921
21.98%
Lazard Asset Management Ltd
2,543,323
8.64%
Transact
934,861
3.17%
Share capital
Full details of the Company’s issued share capital are given in note 14 on page 95. Details of the voting rights in the
Company’s shares as at the date of this report are also given in note 17 to the Notice of Annual General Meeting on page 129.
The ordinary shares carry the right to receive dividends and have one voting right per ordinary share. There are no restrictions
on the voting rights of the ordinary shares or on the transfer of the ordinary shares. There are no shares which carry specific
rights with regard to the control of the Company.
Share issues and share repurchases
The Company has the authority to purchase ordinary shares in the market to be held in treasury or for cancellation and to
issue new shares or sell shares from treasury for cash. No ordinary shares were issued or sold under this authority during the
year.
The Directors consider that it is in the interests of shareholders as a whole that the price of the ordinary shares reflects, as
closely as possible, the NAV per share. The Directors will consider the issue at a premium or repurchase at a discount of
ordinary shares to address any supply/demand imbalance in the market. Any such transactions will enhance the net asset
value for continuing shareholders.
Directors’ Report
continued
Section 3: Governance
53
Although the Investment Manager initiates any buy backs, the policy and parameters are set by the Board and reviewed at
regular intervals. The Company intends to raise the cash needed to finance the purchase of shares either by selling securities
in the Company’s portfolio or by short-term borrowing.
The current authority to purchase ordinary shares in the market to be held in treasury or for cancellation was granted to
the Directors on 22 May 2024 and expires at the date of the 2025 AGM. The Directors are proposing that their authority to
purchase ordinary shares in the market to be held in treasury or for cancellation be renewed at the forthcoming AGM.
Treasury shares
At the AGM in 2024 the Company was authorised to purchase its own ordinary shares to be held in treasury for reissue or
cancellation at a future date. There was no change in the amount of ordinary shares held in treasury during the year.
Both the repurchase for cancellation and the use of treasury shares should assist in providing a discount management
mechanism and enhancing the NAV of the Company’s shares. This will provide the Directors with additional flexibility to
manage the Company’s investment portfolio.
The Board intends only to authorise the sale of shares from treasury at prices at or above the prevailing NAV per share (plus
costs of the relevant sale). This should result in a positive overall effect on existing shareholders.
The Company currently holds 2,181,662 ordinary shares in treasury and will seek the necessary authority to hold and reissue
treasury shares at the forthcoming AGM.
Streamlined Energy and Carbon Reporting (SECR) statement: greenhouse gas (GHG)
emissions and energy consumption disclosure
As an externally managed investment company, the Company has no greenhouse gas emissions to report from its operations,
nor does it have any responsibility for any other emissions producing sources under the Companies Act (Strategic Report and
Directors’ Reports) Regulations 2013. For the same reason, the Company considers itself to be a low energy user under the
SECR regulations and therefore is not required to disclose energy and carbon information.
Articles of Association
Any amendments to the Company’s Articles of Association must be made by special resolution.
Annual general meeting
AGM Arrangements
The following information to be discussed at the forthcoming AGM is important and requires your immediate attention.
If you are in any doubt about the action you should take, you should seek advice from your stockbroker, bank manager,
solicitor, accountant or other financial adviser, authorised under the Financial Services and Markets Act 2000 (as
amended).
If you have sold or transferred all of your ordinary shares in the Company, you should pass this document, together
with any other accompanying documents including the form of proxy, at once to the purchaser or transferee, or to
the stockbroker, bank or other agent through whom the sale or transfer was effected, for onward transmission to the
purchaser or transferee.
Resolutions for the re-election of Directors
The biographies of the Directors are set out on pages 29 and 30 and are incorporated into this report by reference. The skills
and experience each Director brings to the Board for the long-term sustainable success of the Company are set out below.
All the Directors in office at the date of this report held office throughout the year. All Directors will stand for re-election by
shareholders at the meeting in accordance with the requirements of the UK Code.
Resolution 4
relates to the re-election of Ms Dobson who was appointed on 1 January 2016. Ms Dobson has current and
detailed knowledge of investment management and investment trusts. She brings leadership skills and much in-depth
knowledge, expertise and experience of the sector to the Board, having served as a non-executive director on or chaired a
number of investment trust boards and also having headed up the investment trust business at Murray Johnstone and also
the UK Equity business at Abbey National Asset Managers.
54
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Resolution 5
relates to the re-election of Mr Cleland who was appointed on 1 January 2019. Mr Cleland is an asset
management executive working in the promotion and running of investment companies and regularly liaises with a number
of brokers, auditors and regulators, which contributes towards keeping his extensive industry knowledge up to date. He also
meets regularly with both institutional and retail investors in the sector to discuss industry issues. He has extensive knowledge
of investment trust technical and accounting issues, and was a member of the Association of Investment Companies’ (AIC)
Technical Committee for ten years during which time he helped to develop the AIC’s Statement of Recommended Practice
(SORP) for the industry. He brings this strong accounting and technical background and experience of the audit committee
remit (having also acted as the audit committee chairman of the Invesco Select Trust plc since 2016) to his role as the
Company’s Audit Committee Chairman and as Chairman of the Company’s Remuneration Committee.
Resolution 6
relates to the re-election of Mr Webber who was appointed on 1 April 2017. Mr Webber has many years of
experience in the investment and asset management business, and was previously Global Chief Investment Officer for HSBC
Private Banking Group; he brings in-depth knowledge, expertise and experience in investment matters (including experience
relating to the Latin American region) to his role on the Board. Mr Webber is also a qualified Chartered Accountant and brings
this skill set to his role as a member of the Company’s Audit Committee and Marketing Committee.
Resolution 7
relates to the re-election of Ms Meister who was appointed on 1 February 2020. She brings in-depth and
extensive financial markets experience to her role, with twenty eight of her thirty-two years in the sector dedicated to having
led and developed Latin American equity and capital markets businesses and other emerging markets. Ms Meister is also the
chair of the Marketing Committee which contributed to retail marketing.
Resolutions relating to the following items of special business will be proposed at the forthcoming AGM.
Ordinary Resolutions
Resolution 10 Authority to allot shares:
The Directors may only allot shares for cash if authorised to do so by shareholders in a general meeting. This resolution seeks
authority for the Directors to allot ordinary shares for cash up to an aggregate nominal amount of US$147,243.20 which is
equivalent to 1,472,432 ordinary shares of 10 cents each and represents 5% of the Company’s issued ordinary share capital
as at the date of the Notice of the Annual General Meeting (excluding shares held in treasury). This resolution will expire at the
conclusion of the next AGM of the Company to be held in 2026, unless renewed prior to that date at an earlier general meeting.
Special Resolutions
Resolution 11 Authority to disapply pre-emption rights:
By law, Directors require specific authority from shareholders before allotting new shares for cash or selling shares out of
treasury for cash, without first offering them to existing shareholders in proportion to their holdings. Resolution 11 empowers
the Directors to allot new shares for cash or to sell shares held by the Company in treasury, otherwise than to existing
shareholders on a pro-rata basis, up to an aggregate nominal amount of US$147,243.20 which is equivalent to 1,472,432
ordinary shares of 10 cents each and represents 5% of the Company’s issued ordinary share capital as at the date of the
Notice of Annual General Meeting (excluding shares held in treasury).
This resolution will expire at the conclusion of the next AGM of the Company to be held in 2026, unless renewed prior to that
date at an earlier general meeting.
Resolution 12 Authority to buy back shares:
The resolution to be proposed will seek to renew the authority granted to Directors enabling the Company to purchase its
own shares. The Directors believe that the ability to buy back shares has significant advantages for both the Company and its
shareholders. The buy back authority provides the Board with a mechanism to balance the supply of shares with prevailing
demand, with a view to bringing these into balance. The Board’s aim with share buy backs is to narrow the discount at which
the shares trade to NAV to ensure that the share price is a close as possible to NAV thus preserving shareholder value.
The Board’s intention is only to buy shares back at a discount to NAV, and hence any buy backs undertaken will enhance
shareholder value as the repurchase will result in a greater proportion of assets becoming attributable to fewer shares. In
addition, share buy backs may help to deter short-term investors who are seeking to exploit the discount and achieve instant
returns (rather than reflecting a long-term view of the prospects of the Company); hence the ability to operate a buy back
authority is in the long-term interests of shareholders. Whilst there have been no buy backs for the year to 31 December
2024 or in 2025 (up to the date of this report), this is a reflection of historic market conditions and should not be used as an
indication of the frequency and impact that any share buy backs would have on the future share rating of the Company.
Directors’ Report
continued
Section 3: Governance
55
The Board continues to monitor the market and, in conjunction with the Company’s broker, gives consideration to the
possibility of buying back shares as required. The Board believes that the buy back authority is an important mechanism
on the Company’s tool kit to manage the Company’s share rating in the interests of all shareholders, and recommends that
shareholders vote in favour of this resolution.
The Directors are seeking authority to purchase up to 4,414,351 ordinary shares (being 14.99% of the issued share capital,
excluding treasury shares, as at the date of this report). This authority, unless renewed at an earlier general meeting, will expire
at the conclusion of the next AGM of the Company to be held in 2026.
Recommendation
The Board considers that each of the resolutions is likely to promote the success of the Company and is in the best interests
of the Company and its shareholders as a whole. The Directors unanimously recommend that you vote in favour of these
resolutions as they intend to do in respect of their own beneficial holdings.
Corporate governance
Full details are given in the Corporate Governance Statement on pages 62 to 68. The Corporate Governance Statement forms
part of this Directors’ Report.
Audit information
As required by Section 418 of the Companies Act 2006, each of the Directors who held office at the date of approval of this
report confirms that, so far as they are aware, there is no relevant audit information of which the Company’s Auditor is unaware
and each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant
audit information and to establish that the Company’s Auditor is aware of that information.
Independent Auditor
The Auditor, Ernst & Young LLP, has indicated their willingness to continue in office and resolutions proposing their
reappointment and authorising the Audit Committee to determine their remuneration for the ensuing year will be submitted at
the Annual General Meeting.
The Directors’ Report was approved by the Board at its meeting on 28 March 2025.
By order of the Board
GRAHAM VENABLES
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
28 March 2025
56
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
The Board presents the Directors’ Remuneration Report for the year ended 31 December 2024 which has been prepared in
accordance with Sections 420 – 422 of the Companies Act 2006. The Remuneration Policy which is subject to a triennial
binding vote is set out on pages 60 and 61.
The law requires the Company’s Auditor to audit certain of the disclosures provided. Where disclosures have been audited,
they are indicated as such. The Auditor’s opinion is included in their report on pages 76 to 82.
Statement of the Chairman
A key driver of the remuneration policy is that fees payable to Directors should be sufficient to attract and retain individuals
with suitable knowledge and experience to promote the long-term success of the Company whilst also reflecting the time
commitment and responsibilities of the role. The basis for determining the level of any increase in the Directors’ remuneration
is set out in the Directors’ Remuneration Policy on pages 60 and 61.
The Board’s focus is on setting the strategy for the successful progression of the Company and monitoring performance
against the strategic objectives set. In order to do this effectively, Directors spend a substantial amount of time preparing
for the four scheduled Board meetings and three Audit Committee meetings held each year. At these meetings, the Directors
review the Company’s portfolio, monitor investment performance and review compliance with investment guidelines. The
Board also reviews and monitors the Company’s ongoing operating costs to ensure that these represent optimal value and
are in line with agreed budgets. In addition, the Board sets the marketing strategy of the Company and contributes to a sales
and marketing initiative operated by BlackRock; the Board has set key performance indicators to monitor progress and reviews
these on a regular basis to monitor and assess the effectiveness of this initiative.
Directors are also responsible for establishing and maintaining the Company’s control systems to manage risk effectively,
and a register of these controls and the risks facing the Company are reviewed at each Audit Committee meeting, along with
control reports from external auditors. Directors also receive an annual update from BlackRock’s internal audit department.
As well as this usual business, Directors also spend additional time as and when required in ad hoc meetings to address other
issues as they arise, including the Board’s response to emerging risks. Investment trusts are subject to a large number of
regulatory and disclosure requirements, including the requirements of the UK Code, UKLA Listing Rules, and Investment Trust
Company tax regulations. The regulatory requirements have increased significantly in recent years, with the implementation
of AIFMD, GDPR, Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard requiring considerable
additional time to be spent by the Board to ensure that new depositary and management agreements comply with best
industry practice.
There are more new regulatory obligations that will become applicable to the Company over the next few years, and the
Directors will need to devote time to ensuring that the Company is compliant with these new requirements, resulting in a
further increase in workload for Directors. The Board will continue to be mindful of this in setting remuneration levels.
The Board’s remuneration was last reviewed in November 2024. Following this review it was agreed to increase the level of
Directors’ fees by 1.7% with effect from 1 January 2025. Directors’ fees were last increased on 1 January 2024. Directors’
fees are set out in the policy table on page 61. No discretionary fees have been paid to Directors during the year or since
inception and the payment of such fees is expected to be a rare occurrence, only necessary in exceptional circumstances. Any
discretionary fees paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by an
explanation of the work undertaken and why it was deemed necessary to pay such additional remuneration.
Remuneration Committee
The Remuneration Committee is responsible for Directors’ remuneration and for setting the Company’s remuneration policy.
The Committee is wholly comprised of independent Directors. The names of the members of the Remuneration Committee are
set out on page 28.
Implementation of the Remuneration Policy in the year 2024
The Directors intend that the Remuneration Policy will be implemented as set out on pages 60 and 61. The Directors’
Remuneration Policy on page 60 and the policy table on page 61 form part of this report. The Directors do not receive any
performance related remuneration or incentives. Discretionary payments are permitted under the policy; however such
discretionary payments would only be considered in exceptional circumstances.
Directors’ Remuneration Report
Section 3: Governance
57
Remuneration/service contracts
The maximum remuneration of the Directors is determined within the limits of the Company’s Articles and currently amounts
in aggregate to £250,000. None of the Directors are entitled to receive from the Company:
•
performance related remuneration;
•
any benefits in kind except reasonable travel expenses in the course of travel to attend meetings and duties undertaken on
behalf of the Company;
•
share options;
•
rewards through a long-term incentive scheme;
•
a pension or other retirement benefit; and
•
compensation for loss of office.
All of the Directors are non-executive. None of the Directors has a service contract with the Company and the terms of their
appointment are detailed in a letter of appointment. New directors are appointed for an initial term of three years and it is
expected that they will serve two further three year terms. The continuation of an appointment is contingent on satisfactory
performance evaluation and re-election at each Annual General Meeting (AGM). A director may resign by notice in writing to
the Board at any time, there is no notice period. The letters of appointment are available for inspection at the registered office
of the Company.
Remuneration implementation report
A single figure for total remuneration of each Director is set out in the table below for the year ended 31 December 2024. The
information in the table below has been audited.
Year ended 31 December 2024
Year ended 31 December 2023
Directors
Fees
Taxable
benefits
1
Total
Fees
Taxable
benefits
1
Total
£
£
£
£
£
£
Carolan Dobson (Chair)
52,800
4,805
57,605
50,200
3,310
53,510
Craig Cleland
(Audit Committee Chairman and Remuneration
Committee Chairman)
40,600
2,705
43,305
38,600
1,015
39,615
Laurie Meister
36,100
176
36,276
34,300
–
34,300
Nigel Webber
36,100
164
36,264
34,300
–
34,300
Mahrukh Doctor
2
–
–
–
9,050
3,034
12,084
Total
165,600
7,850
173,450
166,450
7,359
173,809
1
Taxable benefits relates to travel and subsistence costs which have been grossed up to include PAYE and NI contributions.
2
Mahrukh Doctor retired as a Director on 31 March 2023.
No discretionary payments were made in the year to 31 December 2024 (2023: £nil).
The amounts paid by the Company to the Directors were for services as non-executive Directors. As at 31 December 2024, fees
of £14,000 (2023: £13,000) were outstanding to Directors in respect of their annual fees.
Relative importance of spend on pay
As the Company has no employees, the table above also comprises the total remuneration costs and benefits paid by the
Company. To enable shareholders to assess the relative importance of spend on pay, this has been shown in the table
below compared to the Company’s net loss on ordinary activities after taxation, total operating expenditure and dividend
distributions.
58
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
2024
US$’000
2023
US$’000
Change
US$’000
Directors’ total remuneration
210
222
-12
Total dividends paid and payable
7,273
8,488
-1,215
Net profit/(loss) on ordinary activities after taxation
(65,561)
53,405
-118,966
Total operating expenditure
1,927
2,101
-174
Five year change comparison
Over the last five years, Directors’ pay has increased as set out in the table below:
2024
2023
2022
2021
2020
Carolan Dobson
5.2%
5.0%
0.0%
0.0%
1.7%
Craig Cleland
1
5.2%
5.2%
0.0%
0.0%
4.9%
Laurie Meister
2
5.2%
5.2%
0.0%
0.0%
N/a
Nigel Webber
5.2%
5.2%
0.0%
0.0%
1.9%
1
Mr Cleland was appointed Director on 1 January 2019 and Chairman of the Audit Committee on 31 March 2019. The increase of
4.9% in 2020 reflects the fact that he received an increase related to his appointment as Audit Committee Chairman in March 2019.
2
Ms Meister was appointed on 1 February 2020. For the purposes of the calculations in the above table her salary has been
annualised for the year to 31 December 2020.
As previously noted, the Company does not have any employees and hence no comparisons are given in respect of the
comparison between Directors’ and employees’ pay increases.
Shareholdings
The interests of the Directors in the ordinary shares of the Company are set out in the table below. The Company does not
have a share option scheme, therefore none of the Directors has an interest in any share options in the Company. There is no
requirement for Directors to hold shares in the Company.
Ordinary shares
28 March
2025
31 December
2024
31 December
2023
Carolan Dobson
6,842
6,842
4,792
Nigel Webber
5,000
5,000
5,000
Craig Cleland
12,000
12,000
12,000
Laurie Meister
2,915
2,915
2,915
The information in the table above has been audited.
All the holdings of the Directors are beneficial. No other changes to these holdings have been notified up to the date of this
report.
Retirement of Directors
Further details are given in the Directors’ Report on page 51 and in the Corporate Governance Statement on page 63.
Performance
The graph on the following page compares the Company’s NAV and share price total returns with the total return on an
equivalent investment in the MSCI EM Latin America Index (Net Return). This index is deemed to be the most appropriate as
the Company has a Latin American objective.
Directors’ Remuneration Report
continued
Section 3: Governance
59
Performance from 31 December 2014 to 31 December 2024
60
80
100
120
140
160
Net Asset Value (total return)
Share price (total return)
MSCI EM Latin America Index (net total return basis)
Sources: BlackRock Investment Management (UK) Limited and LSEG Datastream.
Performance figures are calculated in US Dollar terms, rebased to 100, with dividends reinvested.
Dec 14
Dec 15
Dec 16
Dec 17
Dec 18
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
%
By order of the Board
CRAIG CLELAND
Chairman
Remuneration Committee
28 March 2025
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BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Consideration of shareholders’ views
An ordinary resolution to approve the remuneration report is put to members at each AGM. The Company is committed
to ongoing shareholder dialogue and takes an active interest in voting outcomes. Shareholders have the opportunity to
express their views and ask questions in respect of the remuneration policy at the AGM. To date, no shareholders have
commented in respect of the remuneration policy. In the event that there was a substantial vote against any resolution
proposed at the Company’s AGM, the reasons for any such vote would be sought and appropriate action taken. Should the
votes be against resolutions in relation to the directors’ remuneration, further details will be provided in future Directors’
Remuneration Reports. In accordance with the Companies Act 2006, the Company is required to seek shareholder approval of
its remuneration policy on a triennial basis. An ordinary resolution for the approval of the remuneration policy was approved
by shareholders at the AGM held on 22 May 2023, with 99.47% of votes cast (including votes cast at the Chair’s discretion)
in favour and 0.53% votes cast against. The remuneration policy will next be put to a binding shareholder vote at the AGM in
2026.
The Directors’ Remuneration Report was last approved by shareholders at the AGM held on 22 May 2024, with 99.49% of
votes cast (including votes cast at the Chair’s discretion) in favour and 0.51% of votes cast against.
Any discretionary fees paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by an
explanation of the work undertaken.
Directors’ Remuneration Policy
In setting the appropriate level of Directors’ fees, a number of factors are considered, including the workload of the Directors,
their responsibilities, any change in these responsibilities and additional legal duties (for example as a result of new legislation
being implemented), the relationship with their suppliers and service providers and the size and complexity of the Company.
The time commitment required, the level of skills and appropriate experience required and the need for Directors to maintain
on an ongoing basis an appropriate level of knowledge of regulatory and compliance requirements in an industry environment
of increasing complexity are also taken into account. The Board also considers the average rate of inflation during the period
since the last fee increase and reviews the level of remuneration in comparison with other investment trusts of a similar size
and/or mandate, as well as taking account of any data published by the Association of Investment Companies to ensure
that fees are in line with industry practice. This comparison, together with consideration of any alteration in non-executive
Directors’ responsibilities, is used to review whether any change in remuneration is necessary. The review is performed on
an annual basis. The Board is cognisant of the need to avoid any potential conflicts of interest and has therefore agreed a
mechanism by which no Director is present when his or her own pay is being considered.
The Company has no employees and consequently no consideration is required to be given to employment conditions
elsewhere in setting this policy and there has been no employee consultation.
No element of the Directors’ remuneration is performance related or subject to recovery or withholding (except for tax).
Directors cannot be awarded any share options or long-term performance incentives. None of the Directors has a service
contract with the Company or receives any non-cash benefits (except as described in the policy table), pension entitlements or
compensation for loss of office.
The remuneration policy would be applied when agreeing the remuneration package of any new Director. The terms of
Directors’ appointment are detailed in a letter sent to them when they join the Board. These letters are available for inspection
at the registered office of the Company. Directors’ appointments do not have a fixed duration, but they can be terminated by
the Company in writing at any time without obligation to pay compensation. On termination of the appointment, Directors
shall only be entitled to accrued fees as at the date of termination together with reimbursement of any expenses properly
incurred prior to that date. No payments for loss of office are made. Directors are subject to annual re-election.
Directors’ Remuneration Policy
Section 3: Governance
61
Remuneration policy table
Purpose and link to
strategy
Fees payable to Directors should be sufficient to attract and retain individuals of high calibre who
possess knowledge and experience suitably aligned to the activities of the Company. Those chairing
the Board and key committees should be paid higher fees than other Directors in recognition of
their more demanding roles. Fees should reflect the time spent by Directors on the Company’s
affairs and the responsibilities borne by the Directors.
Description
Current levels of fixed annual fee (effective from 1 January 2025):
Chair – £53,700
Audit Committee Chairman – £41,300
Directors – £36,800
All reasonable expenses to be reimbursed
Maximum and
minimum levels
Remuneration consists of a fixed fee each year, set in accordance with the stated policies and any
increase granted must be in line with the stated policies. The Company’s Articles of Association set
a limit of £250,000 in respect of the total remuneration that may be paid to Directors in any
financial year. In addition, the Directors propose a limit of £50,000 in relation to the maximum
that may be paid in respect of taxable benefits. These ceilings have been set at a level to provide
flexibility in respect of the recruitment of additional Board members and inflation.
Policy on share
ownership
Directors are not required to own shares in the Company.
Operation
Fixed fee element
The Board reviews the quantum of Directors’ pay each year to ensure that this is in line with
the level of Directors’ remuneration for other investment trusts of a similar size. When making
recommendations for any changes in pay, the Board will consider wider factors such as the
average rate of inflation over the period since the previous review, and the level and any change
in complexity of the Directors’ responsibilities (including additional time commitments as a result
of increased regulatory or corporate governance requirements). Directors are not eligible to be
compensated for loss of office, nor are they eligible for bonuses, pension benefits, share options or
other incentives or benefits. Directors do not have service contracts but are appointed under letters
of appointment
Discretionary payments
The Company’s Articles authorise the payment of discretionary fees to Directors for any additional
work undertaken on behalf of the Company which is outside of their normal duties. Any such extra
work undertaken is subject to the prior approval of the Chair or, in the case of the Chair undertaking
the extra work, subject to the prior approval of the Chairman of the Audit Committee. The level of
discretionary fees shall be determined by the Directors and will be subject to a maximum of £25,000
per annum per Director. Any discretionary fees paid will be disclosed in the Directors’ remuneration
implementation report within the Annual Report.
Taxable benefits
Some expenses incurred by Directors are required to be treated as taxable benefits. Taxable benefits
include (but are not limited to) travel expenses incurred by the Directors in the course of travel
to attend Board and Committee meetings which are held at the Company’s registered offices in
London, and which are reimbursed by the Company and therefore treated as a benefit in kind
and are subject to tax and national insurance. The Company’s policy in respect of this element of
remuneration is that all reasonable costs of this nature will be reimbursed as they are incurred,
including the tax and national insurance costs incurred by the Director on such expenses
62
BlackRock Latin American Investment Trust plc
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Annual Report and Financial Statements 31 December 2024
Chair’s introduction
Governance is the process by which the Board seeks to look after shareholders’ interests and protect and enhance shareholder
value. Shareholders hold the Directors responsible for the stewardship of the Company, delegating authority and responsibility
to the Directors to manage the Company on their behalf and holding them accountable for its performance.
The Board is ultimately responsible for framing and executing the Company’s strategy and for closely monitoring risks.
We aim to run the Company in a manner which is responsible and consistent with our belief in honesty, transparency and
accountability. In our view, good governance means managing the business well and engaging effectively with investors. We
consider the practice of good governance to be an integral part of the way we manage the Company and we are committed to
maintaining high standards of financial reporting, transparency and business integrity.
As a UK-listed investment trust company our principal reporting obligation is driven by the UK Corporate Governance Code
(the UK Code) issued by the Financial Reporting Council in July 2018. However, as listed investment trust companies differ in
many ways from other listed companies, the Association of Investment Companies has drawn up its own set of guidelines, the
AIC Code of Corporate Governance (the AIC Code) issued in February 2019, which addresses the governance issues relevant to
investment companies and meets the approval of the Financial Reporting Council.
Both the UK Code and the AIC Code apply to accounting periods beginning on or after 1 January 2019. The Board has
determined that it has complied with the recommendations of the AIC Code.
This report, which forms part of the Directors’ Report, explains how the Board deals with its responsibility, authority and
accountability.
Compliance
The Board has made the appropriate disclosures in this report to ensure that the Company meets its continuing obligations.
It should be noted that, as an investment trust, most of the Company’s day-to-day responsibilities are delegated to third party
service providers, the Company has no employees and the Directors are all non-executives, therefore not all of the provisions
are directly applicable to the Company.
The Board considers that the Company has complied with the recommendations of the AIC Code and the provisions contained
within the UK Code throughout this accounting period, except for the provisions relating to:
•
the role of the chief executive; and
•
executive directors’ remuneration.
For the reasons set out in the AIC Code of Corporate Governance, and as explained in the UK Code, the Board considers that
these provisions are not relevant to the position of the Company, being an externally managed investment company with no
executive employees. In view of BlackRock having an internal audit function, it does not consider it necessary for the Company
to have its own internal audit function. The Board receives regular reports from BlackRock’s internal audit function. In addition,
BlackRock’s internal audit department provides an annual presentation to the Audit Committee Chairmen of the BlackRock
investment trusts on the results of testing performed in relation to BlackRock’s internal control processes.
The UK Code is available from the Financial Reporting Council’s website at frc.org.uk. The AIC Code is available from the
Association of Investment Companies at
theaic.co.uk
.
Information on how the Company has applied the principles of the AIC Code and the UK Code is set out below.
The Board
Board composition
The Board currently consists of four non-executive Directors.
In accordance with best practice and developing corporate governance, all of the Directors have agreed to submit themselves
to annual re-election. Therefore, all Directors will retire and stand for re-election and for election.
Corporate Governance Statement
Section 3: Governance
63
The Directors’ biographies, on pages 29 and 30, demonstrate a breadth of investment knowledge, business and financial skills
which enables them to provide effective strategic leadership and proper governance of the Company. Details of the Chair’s
other significant time commitments can also be found on page 29.
Each Director has signed a letter of appointment to formalise in writing the terms of their appointment as Directors. Copies of
these letters are available on request from the Company’s registered office.
Board independence and tenure
The Board regularly reviews the independence of its members and considers all of the Directors to be independent. The
Board is of the view that length of service will not necessarily compromise the independence or contribution of directors of
an investment trust company, where continuity and experience can add significantly to the strength of the Board. Whilst the
Board recognises the benefits of diversity and regular refreshment, it does not believe that length of tenure should be the
predominant factor in determining an individual’s independence. The Board believes that the overarching objective should
be to establish and maintain a board which has a range of tenure, skills and experience such that it can effectively discharge
its duties and retain the benefits of corporate memory, while also benefiting from regular board refreshment, which inevitably
brings new ideas and perspectives. The Board’s independence has been considered, and all current Directors are deemed to
be wholly independent. A number of factors were taken into account when making this assertion, including length of tenure,
the individual contribution of each Director, their other directorships and interests, and their ongoing commitment and
enthusiasm to promote the long-term success of this Company, its shareholders and wider stakeholders.
Diversity
The Board’s policy is to take diversity into account during the recruitment and appointment process. The Board recognises
the benefits of diverse backgrounds and skill sets, and in particular of having a range of experienced Directors who, both
individually and collectively possess a suitable balance of skills, knowledge, experience, backgrounds, ethnicity, gender,
independence and other characteristics to enable it to fulfil its obligations. It will therefore endeavour to comply with best
practice and applicable regulation in respect of diversity and will seek to consider characteristics such as age, ethnicity,
gender, disability, and educational and professional background in the recruitment process. All Board appointments use
the services of an external consultant. Going forward any consultant will be instructed to provide a list of candidates with
representation across gender and ethnicity as well as professional background and other characteristics. As at the date of
this report, the Board consists of two men and two women, and is also inclusive of other protected characteristics covered in
legislation. The Board has disclosed, amongst other data, the ethnicity of the Board. The disclosure can be found on page 47,
and the Board is pleased to note it is compliant with the recommendations of both the BEIS sponsored FTSE Women Leaders
Review (which set new targets for FTSE 350 companies designed to achieve boards with 40% female representation and at
least one woman in the role of Chair or Senior Independent Director the end of 2025). Since the retirement from the Board of
Professor Doctor on 31 March 2023, the Board will consider the Parker Review recommendation to have at least one director
from an ethnically diverse back ground by 2025 during the recruitment process of any new director with a view to comply with
this recommendation.
The Company does not have any employees, therefore there are no disclosures to be made in that respect.
Directors’ appointment, retirement and rotation
The rules concerning the appointment, retirement and rotation of Directors are set out on page 51 of the Directors’ Report and
page 63 of the Corporate Governance Statement.
The Board believes that it has a good balance of skills and experience. The Board recognises the value of progressive
refreshing of, and succession planning for, company boards.
All Directors are subject to annual re-election. Each Director’s appointment has been reviewed by the Board prior to
submission for re-election. Following the formal evaluation the Chair is pleased to confirm that each of the Directors standing
for re-election or election continues to be effective and to demonstrate commitment to the role (including time for Board and
Committee meetings and any other duties).
The Board accordingly recommends the re-election of the Chair and each of the Directors to stand for re-election at the
forthcoming AGM.
64
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Annual Report and Financial Statements 31 December 2024
The Board is cognisant of the concept of ‘overboarding’ and has considered the time commitment required by the Directors’
other roles, taking into account their nature and complexity.
Directors’ recruitment
The Nomination Committee, which comprises all the Directors, reviews Board structure, size and composition, the balance of
knowledge, experience and skills range and to consider succession planning and tenure policy. Appointments of new Directors
are made on a formalised basis, with the Committee agreeing the selection criteria and the method of selection, recruitment
and appointment. Board diversity, including gender, is taken into account in establishing the criteria. The services of an
external search consultant may be used to identify suitable candidates and assist with the selection process.
Directors’ induction and training
When a new Director is appointed to the Board, he or she is provided with all relevant information regarding the Company
and their duties and responsibilities as a Director. In addition, a new Director will also spend some time with the portfolio
managers, the Company Secretary and other key employees of the Manager whereby he or she will become familiar with the
workings and processes of the Company.
The Company’s policy is to encourage Directors to keep up to date and attend training courses on matters which are directly
relevant to their involvement with the Company. The Directors also receive regular briefings from, amongst others, the Auditor,
representatives of the Manager and the Company Secretary regarding any proposed developments or changes in laws or
regulations that could affect them or the Company.
Directors’ liability insurance
The Company has maintained appropriate Directors’ Liability Insurance cover throughout the year.
The Board’s responsibilities
The Board is responsible for the effective stewardship of the Company’s affairs. A formal schedule of matters reserved for the
decision of the Board has been adopted. Investment policy and strategy are determined by the Board. It is also responsible
for gearing policy, dividend policy, public documents such as the Annual Reports and Financial Statements, the terms of the
discount control mechanism, buy back policy, and corporate governance matters. In order to enable them to discharge their
responsibilities, the Board has full and timely access to relevant information.
The Board meets on a quarterly basis to review investment performance, financial reports and other reports of a strategic
nature. Board or Board committee meetings are also held on an ad hoc basis to consider particular issues as they arise. Key
representatives of the Manager and/or Investment Manager attend each meeting and between each meeting there is regular
contact with the Manager and the Investment Manager.
In total the Board met formally on four occasions during the year. The full attendance record is set out on pages 29 and 30.
The Board has established a procedure whereby Directors, wishing to do so in the furtherance of their duties, may take
independent professional advice at the Company’s expense.
The Board has direct access to company secretarial advice and services of the Manager, through a nominated representative,
who is responsible to the Board for ensuring that the Board and Committee procedures are followed, and that the Company
complies with applicable rules and regulations.
Performance evaluation
In order to review the effectiveness of the Board, the Committees and the individual Directors, the Board carries out an annual
appraisal process. This encompasses both quantitative and qualitative measures of performance in respect of the Board and
its Committees, implemented by way of the completion of an evaluation survey and a subsequent review of the findings. The
appraisal of the Chair follows the same process and is carried out by the Board as a whole under the leadership of the Audit
Committee Chairman in the absence of the Chair. The appraisal process is considered by the Board to be constructive in terms
of identifying areas for improving the functioning and performance of the Board and the Committees and the contribution
of individual Directors, as well as building on and developing individual and collective strengths. There were no significant
actions arising from the evaluation process and it was agreed that the Board as a whole and its Committees were functioning
effectively.
Corporate Governance Statement
continued
Section 3: Governance
65
Delegation of responsibilities
The Board has delegated the following areas of responsibility:
Management and administration
The management of the investment portfolio and the administration of the Company have been contractually delegated to
BFM, as the Company’s AIFM, and BFM (with the permission of the Company) has delegated certain investment management
and other ancillary services to BIM (UK) (the Investment Manager). The contractual arrangements with the Manager are
summarised on page 49.
The Manager, operating under guidelines determined by the Board, has direct responsibility for the decisions relating to the
day-to-day running of the Company and is accountable to the Board for the investment, financial and operating performance
of the Company.
The Investment Manager has delegated the portfolio valuation and fund accounting services to The Bank of New York Mellon
(International) Limited.
The review of the Manager’s performance is an ongoing duty and responsibility of the Board which is carried out at every
Board meeting. In addition, a formal review is undertaken annually, details of which are set out on page 49 of the Directors’
Report.
The assets of the Company have been entrusted to the Depositary for safekeeping. The Depositary is The Bank of New York
Mellon (International) Limited. The address at which the business is conducted is given on page 113. The agreement with the
previous Depositary, BNY Mellon Trust & Depositary (UK) Limited, was transferred via a Deed of Novation dated 1 November
2017.
The Board has delegated the exercise of voting rights attaching to the securities held in the portfolio to the Investment
Manager. Details of the Investment Manager’s approach to voting at shareholder meetings are set out on page 50.
Committees of the Board
The Board has appointed a number of committees as set out below and on page 28. Copies of the terms of reference of each
committee are available on request from the Company’s registered office and are also available on the BlackRock website at
www.blackrock.com/uk/brla
.
Audit Committee
The Audit Committee, which is currently chaired by Mr Cleland, comprises the whole Board with the exception of Ms Dobson,
who is not a member of the Committee but who may attend by invitation.
Further details are provided in the Report of the Audit Committee on pages 69 to 72.
Nomination Committee
The Nomination Committee is currently chaired by Ms Dobson, and consists of the Chair of the Committee, Mr Webber, Mr
Cleland and Ms Meister. Further details are provided on page 28.
Management Engagement Committee
The Management Engagement Committee is currently chaired by Ms Dobson, and consists of the Chair of the Committee, Mr
Webber, Mr Cleland and Ms Meister. Further details are provided on page 28.
Remuneration Committee
The Remuneration Committee is currently chaired by Mr Cleland and consists of the Chairman of the Committee, Ms Dobson,
Mr Webber and Ms Meister. Further details are provided on page 28.
Marketing Committee
The Marketing Committee is currently chaired by Ms Meister, and consists of the Chair of the Committee and Mr Webber.
Further details are provided on page 28.
66
BlackRock Latin American Investment Trust plc
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Annual Report and Financial Statements 31 December 2024
Internal controls
The Board is responsible for the internal controls of the Company and for reviewing their effectiveness, for ensuring that
financial information published or used within the business is reliable, and for regularly monitoring compliance with
regulations governing the operation of investment trusts.
The Board reviews the effectiveness of the internal control systems to identify, evaluate and manage the Company’s significant
risks. As part of that process the Audit Committee receives reports from the Manager setting out the internal controls which
are in place and identifying any significant failings or weaknesses. If any matter is categorised by the Board as significant,
procedures exist to ensure that necessary action is taken to remedy the failing. The Board is not aware of any significant
failings or weaknesses arising in the year under review.
Control of the risks identified, covering financial, operational, compliance and risk management, is embedded in the
operations of the Company. There is a monitoring and reporting process to review these controls, which has been in place
throughout the year under review and up to the date of this report, carried out by the Manager’s corporate audit departments.
This accords with the Financial Reporting Council’s ‘Internal Control: Revised Guidance for Directors on the UK Corporate
Governance Code’.
The Company’s risk register sets out the risks relevant to the Company and describes, where relevant, the internal controls
that are in place at the AIFM, the Investment Manager and other third party service providers to mitigate these risks. The Audit
Committee (the Committee) formally reviews this register on a semi-annual basis and BFM as the Company’s AIFM reports on
any significant issues that have been identified in the period. In addition, BlackRock’s internal audit department report to the
Committee on a semi-annual basis on the results of testing performed in relation to BlackRock’s internal control processes.
The Depositary also reviews the control processes in place at the custodian, the Fund Accountant and the AIFM and reports
formally to the Committee twice yearly. Both the AIFM and the Depositary will escalate issues and report to the Committee
outside of these meetings on an ad hoc basis to the extent that this is required. The Committee also receives Service
Organisation Control (SOC 1) reports respectively from BlackRock and The Bank of New York Mellon (International) Limited
(BNY) on the internal controls of their respective operations (and in the case of BNY, in respect of asset servicing and custody
services, centrally managed information technology services and fund administration and securities data management
operations) together with the opinion of their reporting accountants.
The Board recognises that these control systems can only be designed to manage rather than to eliminate the risk of failure
to achieve business objectives, and to provide reasonable, but not absolute, assurance against material misstatement or loss,
and relies on the operating controls established by the Manager, the Fund Accountant and the Custodian.
The Manager prepares revenue forecasts and management accounts which allow the Board to assess the Company’s activities
and review its performance. The Board and the Investment Manager have agreed clearly defined investment criteria, specified
levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations,
are submitted to the Board at each meeting.
The Company does not have its own internal audit function as all administration is delegated to the Manager and other third
party service providers. The Board monitors the controls in place through the Manager’s internal audit department and feels
that there is currently no need for the Company to have its own internal audit function, although this matter is kept under
review.
Financial reporting
The Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements is set out on page 73,
the Independent Auditor’s Report on pages 76 to 82, and the Statement of Going Concern on pages 50 and 51.
Socially responsible investment
Investment trusts do not employ staff and accordingly have no direct impact on social matters but can be significant
investors in the economies of the regions in which they invest. The Company invests predominantly in securities quoted in
Latin America. While the Company has not adopted an ESG investment strategy or exclusionary screens, the Board believes
that, to meet its investment objectives, it is important to invest in companies whose boards act responsibly in respect of
environmental, ethical and social issues. The Investment Manager’s evaluation procedures and financial analysis of the
companies within the portfolio take into account environmental policies and other business issues.
Corporate Governance Statement
continued
Section 3: Governance
67
The Company’s investment process is ESG integrated. The Investment Manager defines ESG integration as the practice of
explicitly incorporating material ESG information into investment decisions to help enhance risk-adjusted returns. Details on
ESG integration can be found on pages 22 to 24.
Adherence to the UK Stewardship Code
BlackRock has been a signatory to the revised 2020 UK Stewardship Code (the Code) since 2021. As mandated by signatory
status to the Code, every year BlackRock Investment Stewardship submits a report on its investment stewardship activities
to the Financial Reporting Council, which oversees the Code. The Financial Reporting Council then assesses the report
against the Code’s 12 Principles and reporting expectations. Based on this annual submission, BlackRock’s signatory status
to the Code was first granted in September 2021, renewed in October 2022, August 2023, and again most recently in July
2024. BlackRock’s most recent submission to the Financial Reporting Council is available here:
https://www.blackrock.com/
corporate/literature/publication/annual-stewardship-report
-2023.pdf
.
BlackRock’s statement of adherence to the UK Stewardship Code is available here:
https://www.blackrock.com/corporate/
literature/publication/statement-of-adherence-uk-stewardship-code.pdf
.
Bribery prevention policy
The provision of bribes of any nature to third parties in order to gain a commercial advantage is prohibited and is a criminal
offence. The Board has a zero tolerance policy towards bribery and a commitment to carry out business fairly, honestly and
openly. The Board takes its responsibility to prevent bribery very seriously and the Manager has anti-bribery policies and
procedures in place which are high level, proportionate and risk based. The Company’s service providers have been contacted
in respect of their anti-bribery policies and, where necessary, contractual changes are made to existing agreements in respect
of anti-bribery provisions.
Criminal Finances Act 2017
The Company has a commitment to zero tolerance towards the criminal facilitation of tax evasion.
Communication with shareholders
Communication with shareholders is given a high priority.
All shareholders have the opportunity to attend and vote at the AGM. The Notice of Annual General Meeting is sent out at least
20 working days in advance of the meeting and sets out the business of the meeting and any item not of an entirely routine
nature is explained in the Directors’ Report on pages 54 and 55, separate resolutions are proposed for substantive issues.
In addition, the Manager will review the Company’s portfolio and performance at the AGM, where all the Directors and
representatives of the Manager will be available to answer shareholders’ queries. Proxy voting figures will be announced to the
shareholders at the AGM and will be made available on the Company’s website at
www.blackrock.com/uk/brla
shortly after the
meeting. In accordance with provision 4 of the UK Corporate Governance Code, when, in the opinion of the Board, a significant
proportion of votes have been cast against a resolution at any general meeting, the Board will explain, when announcing the
results of voting, what actions it intends to take to understand the reasons behind the vote result.
The Board discusses with the Manager at each Board meeting any feedback from meetings with shareholders, and it also
receives reports from its corporate broker. A regular dialogue has been maintained with the Company’s institutional investors
and private client asset managers both directly through the Board and through the Manager. The Chair and other Directors
also meet with shareholders periodically, without the Manager being present to ensure that the Manager is not used as the
sole conduit for shareholder communication with the Board. The dialogue with shareholders provides a two way forum for
canvassing the views of shareholders and for enabling the Board to become aware of any issues of concern, including those
relating to performance, strategy and corporate governance.
Shareholders wishing to communicate with the Chair, the Chairman of the Audit Committee or other members of the Board
may do so by writing to the Company Secretary at the registered office address on page 113 or by sending an email to
cosec@blackrock.com
. The Company Secretary has no authority to respond to enquiries addressed to the Board and all
communication, other than junk mail, is redirected to the Chair.
There is a section within this report entitled Shareholder Information, on pages 108 to 110, which provides an overview of
useful information available to shareholders.
68
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Annual Report and Financial Statements 31 December 2024
The Company’s Annual Report and Financial Statements are also published on
www.blackrock.com/uk/brla
, which is the
website maintained by the Company’s Manager. The work undertaken by the Auditor does not involve consideration of the
maintenance and integrity of the website and, accordingly, the Auditor accepts no responsibility for any changes that have
occurred to the financial statements since they were initially presented on the website. Visitors to the website need to be aware
that legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ
from legislation in their jurisdiction.
Packaged Retail & Insurance-Based Investment Products (PRIIPs) Regulation (‘The
Regulation’)
The PRIIPs KID in respect of the Company can be found at:
www.blackrock.com/uk/brla
. This disclosure of charges is under
review.
Disclosure guidance and transparency rules
Other information required to be disclosed pursuant to the Disclosure Guidance and Transparency Rules has been placed
in the Directors’ Report on pages 48 to 55 because it is information which refers to events that have taken place during the
course of the year.
For and on behalf of the Board
CAROLAN DOBSON
Chair
28 March 2025
Corporate Governance Statement
continued
Section 3: Governance
69
As Chairman of the Company’s Audit Committee I am pleased to present the Committee’s report for the year ended
31 December 2024.
Composition
The Audit Committee comprises all the Directors, with the exception of Ms Dobson, the Chair of the Company. However, Ms
Dobson is invited to and still attends the meetings. The Committee members as a whole have competence relevant to the
investment trust sector and at least one member of the Committee has competence in accounting and/or auditing.
The biographies of the Directors may be found on pages 29 and 30.
Performance evaluation
Details of the evaluation of the Audit Committee are set out in the Corporate Governance Statement on page 64.
Role and responsibilities
The Company has established a separately chaired Audit Committee whose duties include considering and recommending
to the Board for approval the contents of the half yearly and annual financial statements, and providing an opinion as to
whether the Annual Report and Financial Statements, taken as a whole, are fair, balanced and understandable and provide the
information necessary for shareholders to assess the Company’s performance, business model and strategy. The Committee
also reviews the external Auditor’s report on the Annual Report and Financial Statements and is responsible for reviewing
and forming an opinion on the effectiveness of the external audit process and audit quality. Other duties include reviewing
the appropriateness of the Company’s accounting policies and ensuring the adequacy of the internal control systems and
standards. The terms of reference detailing the scope and duties of the Audit Committee are available on the website at
www.blackrock.com/uk/brla
.
The Audit Committee meets at least three times a year with the two planned meetings being held prior to the Board meetings
to approve the half yearly and annual results. The Audit Committee receives information from the Investment Manager’s
internal audit and compliance departments.
Responsibilities and review of the external audit
During the year, the principal activities of the Audit Committee included:
•
considering and recommending to the Board for approval the contents of the half yearly and annual financial statements
and on an annual basis reviewing the external Auditor’s report on the annual financial statements;
•
reviewing the scope, execution, results, cost effectiveness, independence and objectivity of the external Auditor;
•
reviewing and recommending to the Board for approval the audit and non-audit fees payable to the external Auditor and the
terms of their engagement;
•
reviewing and approving the external Auditor’s plan for the financial year, with a focus on the identification of areas of audit
risk, and consideration of the appropriateness of the level of audit materiality adopted;
•
reviewing the role of the Board, the Manager and other third party service providers in an effective audit process;
•
reviewing the efficacy of the external audit process and making a recommendation to the Board with respect to the
reappointment of the Auditor;
•
considering the quality of the formal audit report to shareholders;
•
reviewing the appropriateness of the Company’s accounting policies; and
•
ensuring the adequacy of the internal control systems and standards.
Whistleblowing policy
The Committee has also reviewed and accepted the ‘whistleblowing’ policy that has been put in place by the Manager under
which its staff, in confidence, can raise concerns about possible improprieties in matters of financial reporting or other
matters, insofar as they affect the Company.
Report of the Audit Committee
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Annual Report and Financial Statements 31 December 2024
Internal audit
The Company does not have its own internal audit function, as all the administration is delegated to the Manager and other
third party service providers. The Board considers that it is sufficient to rely on the internal audit department of BlackRock. The
requirement for an internal audit function is kept under review.
Non-audit services
The Company’s policy on non-audit services is set out in full in the Audit Committee’s terms of reference which are available
on the Company’s website at
www.blackrock.com/uk/brla
. There were no non-audit services provided by the Auditor to the
Company in the year to 31 December 2024 (2023: no non-audit services).
Significant issues considered regarding the Annual Report and Financial Statements
During the year, the Audit Committee considered a number of significant issues and areas of key audit risk in respect of the
Annual Report and Financial Statements. The Audit Committee reviewed the external audit plan and concluded that the
appropriate areas of audit risk relevant to the Company had been identified by the Auditor. The Committee also discussed
the audit and procedures and plan with the Auditor and that suitable control procedures had been put in place to obtain
reasonable assurance that the financial statements as a whole would be free of material misstatements. The table below sets
out the key areas of risk identified and also explains how these were addressed.
Significant issue
The accuracy of the valuation of the investment portfolio
How the issue was addressed
Listed investments are valued using stock exchange prices provided by third party pricing vendors. Unquoted or illiquid
investments, if any, are valued by the Directors based on recommendations from BlackRock’s Pricing Committee. The Board
reviews detailed portfolio valuations at each of its Board meetings and receives confirmation from the Manager that the
pricing basis is appropriate, in line with relevant accounting standards as adopted by the Company and that the carrying
values are materially correct. The Board also relies on the Manager’s and Fund Accountant’s controls which are documented in
a semi-annual internal controls report which is reviewed by the Audit Committee.
Significant issue
The risk of misappropriation of assets and unsecured ownership of investments
How the issue was addressed
The Depositary is responsible for financial restitution for the loss of financial instruments held in custody. The Depositary
reports to the Committee twice a year. The Committee reviews reports from its service providers on key controls over the assets
of the Company and will take action to address any significant issues that are identified in these reports, which may include
direct discussions with representatives of the relevant service providers to obtain more detailed information surrounding any
matters of concern and gaining assurance that appropriate remediation action has been taken. Any significant issues are
reported by the Manager to the Committee. The Manager has put in place procedures to ensure that investments can only be
made to the extent that the appropriate contractual and legal arrangements are in place to protect the Company’s assets.
Significant issue
The risk that income is overstated, incomplete or inaccurate through failure to recognise proper income entitlements or to
apply the appropriate accounting treatment for recognition of income
How the issue was addressed
The Board reviews income forecasts, including special dividends, and receives explanations from the Manager for any
variations or significant movements from previous forecasts and prior year figures. The Committee also reviews the facts
and circumstances of all special dividends to determine the revenue/capital treatment. The Directors also review a detailed
schedule of dividends received from portfolio holdings at each meeting which sets out current and historic dividend rates,
and the amounts accrued. Any significant movements or unusual items are discussed with the Manager. The Committee also
Report of the Audit Committee
continued
Section 3: Governance
71
reviews SOC 1 Reports from its service providers, including the Company’s Fund Accountant and Custodian, The Bank of New
York Mellon (International) Limited. These reports include information on the control processes in place to ensure the accurate
recording of income, and any exceptions are highlighted to the Committee and will be investigated further to ensure that
appropriate remediation action has been taken where relevant.
As the provision of portfolio valuation, fund accounting and administration services is delegated to the Manager, which sub-
delegates fund accounting to The Bank of New York Mellon (International) Limited (‘BNY’), and the provision of depositary
services is contracted to BNY, the Audit Committee has also reviewed the Service Organisation Control Reports prepared by
BlackRock, the Custodian and the Fund Accountant to ensure that the relevant control procedures are in place to cover these
areas of risk as identified above and are adequate and appropriate, and have been designated as operating effectively by the
reporting Auditor.
Auditor and audit tenure
The Committee is mindful of the regulations on mandatory auditor rotation which require the appointment of a new auditor
every ten years, although this can be extended in certain circumstances. Ernst & Young LLP was selected as the Company’s
Independent Auditor after a formal tender process carried out in 2020. The Committee will continue to review the Auditor’s
appointment each year to ensure that the Company is receiving an optimal level of service. The appointment of the Auditor is
reviewed each year and the audit partner rotates at least every five years. Mr Matthew Price has acted as the Company’s audit
partner since 2020 and this will be Mr Price’s final year as audit partner.
The legislation also prohibits certain non-audit consulting services and caps the amount of additional fees auditors can
charge their clients. No fees were paid to the Auditor in respect of non-audit services during the year (2023: US$nil). The
Company’s policy on non-audit services is set out in full in the Audit Committee’s terms of reference which are available on the
Company’s website at
www.blackrock.com/uk/brla
.
The Auditor has indicated its willingness to continue in office. Resolutions proposing its reappointment and authorising the
Audit and Management Engagement Committee to determine its remuneration for the ensuing year will be proposed at the
AGM.
Assessment of the effectiveness of the external audit process
To assess the effectiveness of the external audit, members of the Audit Committee work closely with BIM (UK) and BFM to
obtain a good understanding of the progress and efficiency of the audit. The Audit Committee has adopted a framework in its
review of the effectiveness of the external audit process and audit quality. This includes a review of the following areas:
•
the quality of the audit engagement partner and the audit team;
•
the expertise of the audit firm and the resources available to it;
•
identification of areas of audit risk;
•
planning, scope and execution of the audit;
•
consideration of the appropriateness of the level of audit materiality adopted;
•
the role of the Audit Committee, the Manager and third party service providers in an effective audit process;
•
communications by the Auditor with the Audit Committee;
•
how the Auditor supports the work of the Audit Committee and how the audit contributes added value;
•
a review of independence and objectivity of the audit firm; and
•
the quality of the formal audit report to shareholders.
Feedback in relation to the audit process and the effectiveness of the Manager in performing its role is also sought from
relevant involved parties, notably the audit partner and team. The external Auditor is invited to attend the Audit Committee
meetings at which the semi-annual and annual report and financial statements are considered and at which they have the
opportunity to meet with the Audit Committee without representatives of the Manager being present. The effectiveness of the
external audit process is assessed principally in relation to the timely identification and resolution of any process errors or
72
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Annual Report and Financial Statements 31 December 2024
control breaches that might impact the Company’s net asset value and accounting records. It is also assessed by reference to
how successfully any issues in respect of areas of accounting judgement are identified and resolved, the quality and timeliness
of papers analysing these judgements, the views of the independent Auditor and the booking of any audit adjustments arising,
and the timely provision of draft public documents for review by the Auditor and the Committee.
To form a conclusion with regard to the independence of the external Auditor, the following factors are considered. The
Committee considers whether the skills and experience of the Auditor make them a suitable supplier of the non-audit services
and whether there are safeguards in place to ensure that there is no threat to its objectivity and independence in the conduct
of the audit resulting from the provision of such services. On an ongoing basis, Ernst & Young LLP reviews the independence
of its relationship with the Company and reports to the Committee, providing details of any other relationships with the
Manager. As part of this review, the Audit Committee also receives information about policies and processes for maintaining
independence and monitoring compliance with relevant requirements from the Company’s Auditor. This will include
information on the rotation of audit partners and staff, the level of fees that the Company pays, details of any relationships
between the audit firm and its staff and the Company as well as an overall confirmation from the Auditor of its independence
and objectivity.
As a result of their review, the Committee has concluded that Ernst & Young LLP is independent of the Company and therefore
it has made a recommendation to the Board that Ernst & Young LLP be reappointed.
Conclusions in respect of the Annual Report and Financial Statements
The production and the audit of the Company’s Annual Report and Financial Statements is a comprehensive process requiring
input from a number of different contributors. One of the key governance requirements of the Company’s Annual Report and
Financial Statements is that they are fair, balanced and understandable. The Board has requested that the Audit Committee
advise on whether it considers that the Annual Report and Financial Statements fulfil these requirements, and the Audit
Committee has given consideration to the following:
•
the comprehensive control framework over the production of the Annual Report and Financial Statements, including the
verification processes in place to deal with the factual content;
•
the comprehensive reviews that are undertaken at different levels in the production process of the Annual Report and
Financial Statements, by the Manager, the third party service providers responsible for accounting services, the Depositary
and the Audit Committee that aim to ensure consistency and overall balance;
•
the controls that are in place at the Manager and other third party service providers to ensure the completeness and
accuracy of the Company’s financial records and the security of the Company’s assets; and
•
the existence of satisfactory Service Organisation Control (SOC 1) reports that have been reviewed and reported on by
external Auditor to verify the effectiveness of the internal controls of the Manager, Custodian and Fund Accountant.
In addition to the work outlined above, the Audit Committee has reviewed the Annual Report and Financial Statements and is
satisfied that, taken as a whole, they are fair, balanced and understandable. In reaching this conclusion, the Audit Committee
has assumed that readers of the Annual Report and Financial Statements would have a reasonable level of knowledge of the
investment trust industry. The Audit Committee has reported on these findings to the Board who affirm the Audit Committee’s
conclusion in the Statement of Directors’ Responsibilities on page 73.
CRAIG CLELAND
Chairman
Audit Committee
28 March 2025
Report of the Audit Committee
continued
Section 3: Governance
73
The Directors are responsible for preparing the Annual Report and Financial Statements in accordance with applicable United
Kingdom law and regulations. Company law requires the Directors to prepare financial statements for each financial year.
Under these laws the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting
Standard FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and
fair view of the state of affairs of the Company as at the end of each financial year and of the profit or loss of the Company for
that year.
In preparing those financial statements, the Directors are required to:
•
select suitable accounting policies in accordance with Section 10 of FRS 102 and then apply them consistently;
•
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;
•
make judgements and accounting estimates that are reasonable and prudent;
•
provide additional disclosures when compliance with the specific requirements in FRS 102 is insufficient to enable users
to understand the impact of particular transactions, other events and conditions on the Company’s financial position and
financial performance;
•
state whether applicable UK Accounting Standards, including FRS 102, have been followed, subject to any material
departures disclosed and explained in the financial statements; and
•
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to
ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the
assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are also responsible for preparing the Strategic Report, Directors’ Report, the Directors’ Remuneration Report
and the Corporate Governance Statement in accordance with the Companies Act 2006 and applicable regulations, including
the requirements of the Listing Rules and the Disclosure Guidance and Transparency Rules.
The Directors have delegated responsibility to the Manager for the maintenance and integrity of the Company’s corporate and
financial information included on the Investment Manager’s website.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
Each of the Directors, whose names are listed on pages 29 and 30, confirm to the best of their knowledge that:
•
the Financial Statements, prepared in accordance with applicable accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company; and
•
the Annual Report and Financial Statements include a fair review of the development and performance of the business and
the position of the Company, together with a description of the principal risks and uncertainties that it faces.
The 2018 UK Corporate Governance Code also requires Directors to ensure that the Annual Report and Financial Statements
are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit
Committee advise on whether it considers that the Annual Report and Financial Statements fulfil these requirements. The
process by which the Committee has reached these conclusions is set out in the Audit Committee’s report on pages 69 to 72.
As a result, the Board has concluded that the Annual Report and Financial Statements for the year ended 31 December 2024,
taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the
Company’s position, performance, business model and strategy.
For and on behalf of the Board
CAROLAN DOBSON
Chair
28 March 2025
Statement of Directors’ Responsibilities
in respect of the Annual Report and
Financial Statements
76
BlackRock Latin American Investment Trust plc
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Annual Report and Financial Statements 31 December 2024
Opinion
We have audited the financial statements of BlackRock
Latin American Investment Trust plc for the year ended 31
December 2024 which comprise the Income Statement,
the Statement of Changes in Equity, the Balance Sheet,
the Statement of Cash Flows and the related notes 1 to 20,
including a summary of significant accounting policies.
The financial reporting framework that has been applied
in their preparation is applicable law and United Kingdom
Accounting Standards including FRS 102 “The Financial
Reporting Standard applicable in the UK and Republic of
Ireland” (United Kingdom Generally Accepted Accounting
Practice).
In our opinion, the financial statements:
•
give a true and fair view of the Company’s affairs as at
31 December 2024 and of its loss for the year then ended;
• have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements
of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the Company in accordance with the
ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical
Standard as applied to public interest entities, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
The non-audit services prohibited by the FRC’s Ethical
Standard were not provided to the Company and we remain
independent of Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded
that the Directors’ use of the going concern basis of
accounting in the preparation of the financial statements is
appropriate. Our evaluation of the Directors’ assessment of
the Company’s ability to continue to adopt the going concern
basis of accounting included:
• Confirmation of our understanding of the Company’s
going concern assessment process and engagement with
the Directors and the Company Secretary to determine if
all key factors were considered in their assessment.
•
Inspection of the Directors’ assessment of going concern,
including the revenue forecast, for the period to 31
March
2026. In preparing the revenue forecast, the Company has
concluded that it is able to continue to meet its liabilities as
they fall due.
• Review of the factors and assumptions, including the
impact of geo-political and other significant events
that could give rise to market volatility, as applied to the
revenue forecast and the Directors’ liquidity assessment of
the investments. We considered the appropriateness of the
methods used to be able to make an assessment for the
Company.
• Consideration of the mitigating factors included in the
revenue forecasts that are within control of the Company.
We reviewed the Company’s assessment of the liquidity
of investments held and evaluated the Company’s
ability to sell those investments to cover working capital
requirements should revenue decline significantly.
• In relation to the Company’s overdraft facility, our
inspection of the Directors’ assessment of the risk of
breaching the debt covenants as a result of a reduction
in the value of the investment portfolio. We recalculated
the Company’s compliance with debt covenants and
performed reverse stress testing in order to identify what
factors would lead to the Company breaching the financial
covenants.
• Review of the Company’s going concern disclosures
included in the Annual Report in order to assess that the
disclosures were appropriate and in conformity with the
reporting standards.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt
on the Company’s ability to continue as a going concern for
a period to 31
March
2026, which is at least twelve months
from the date the financial statements were authorised for
issue.
In relation to the Company’s reporting on how they have
applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to
the Directors’ statement in the financial statements about
whether the Directors considered it appropriate to adopt the
going concern basis of accounting.
Independent Auditors’ Report
to the members of BlackRock Latin American Investment Trust plc
Section 4: Financial statements
77
Our responsibilities and the responsibilities of the Directors
with respect to going concern are described in the relevant
sections of this report. However, because not all future
events or conditions can be predicted, this statement is not a
guarantee as to the Company’s ability to continue as a going
concern.
Overview
Key audit
matters
• Risk of incomplete or inaccurate revenue
recognition, including the classification
of special dividends as revenue or capital
items in the Income Statement.
• Risk of incorrect valuation or ownership of
the investment portfolio.
Materiality
•
Overall materiality of $1.16m (2023:
$1.90m) which represents 1% (2023: 1%)
of the Company’s shareholders’ funds.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality
and our allocation of performance materiality determine
our audit scope for the Company. This enables us to form an
opinion on the financial statements. We take into account
size, risk profile, the organisation of the Company and
effectiveness of controls, the potential impact of climate
change and changes in the business environment when
assessing the level of work to be performed. All audit work
was performed directly by the audit engagement team.
Climate change
The Company has determined that the impact of climate
change could affect the Company’s investments and the
overall investment process. This is explained on page 41 in
the principal and emerging risks section, which form part
of the “Other information,” rather than the audited financial
statements. Our procedures on these disclosures therefore
consisted solely of considering whether they are materially
consistent with the financial statements or our knowledge
obtained in the course of the audit or otherwise appear to be
materially misstated.
Our audit effort in considering climate change was focused
on the adequacy of the Company’s disclosures in the
financial statements as set out in note 2a on page 87 and
concluded that there was no further material impact of
climate change to be taken into account as the investments
are valued based on market pricing as required by FRS 102.
We also challenged the Directors’ considerations of climate
change in their assessment of viability and associated
disclosures.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the
financial statements of the current period and include the
most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These
matters included those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit;
and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the
financial statements as a whole, and in our opinion thereon,
and we do not provide a separate opinion on these matters.
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Annual Report and Financial Statements 31 December 2024
Risk
Our response to the risk
Key observations communicated
to the Audit Committee
Risk of incomplete or inaccurate
revenue recognition, including the
classification of special dividends as
revenue or capital items in the Income
Statement
Refer to the Report of the Audit
Committee (pages 70 and 71);
Accounting policies (pages 87 and 88);
and Note 3 of the Financial Statements
(page 90).
There is a risk of incomplete or
inaccurate recognition of revenue
through the failure to recognise proper
income entitlements or to apply an
appropriate accounting treatment.
The total investment income for the
year to 31 December 2024 was $8.43m
(2023: $10.92m), consisting primarily
of dividend income from overseas listed
investments.
During the year, the Company received
six special dividends amounting to
$0.17m, all of which were classified as
revenue (2023: $0.16m classified as
revenue).
In addition to the above, the Directors
may, in certain circumstances, exercise
judgement in determining whether
income receivable in the form of
special dividends should be classified
as ‘revenue’ or ‘capital’ in the Income
Statement.
We performed the following
procedures:
We obtained an understanding of
the Manager’s and Administrator’s
processes and controls surrounding
revenue recognition and classification
of special dividends by performing
walkthrough procedures to evaluate the
design and implementation of controls.
For all dividend income recognised
by the Company, we recalculated the
investment income by multiplying
the investment holdings at the
ex-dividend date, traced from the
accounting records, by the dividend
per share/coupon rate, as agreed to an
independent data vendor. We agreed
all distributions received to bank
statements and, where applicable, we
also agreed the exchange rates to an
external source.
For all dividends accrued at the year
end, we confirmed that the Company
held the relevant investments as at
the ex-dividend date and reviewed the
investee company announcements to
assess whether the obligation arose
prior to 31 December 2024. We agreed
the dividend rate to the corresponding
announcements made by the investee
company, recalculated the amount
receivable and, where applicable, agreed
the subsequent cash receipts to post-
year end bank statements.
To test the completeness of recorded
investment income, we tested that
expected dividends payments for each
investee company held during the
year had been recorded as income
with reference to investee company
announcements obtained from an
independent data vendor.
For all investments held during the year,
we compared the type of dividends paid
with reference to an external data source
to identify those which were ‘special’.
We confirmed six special dividends,
amounting to $0.17m, were received
during the year. We tested all special
dividends received, by recalculating
the amount received and assessing
the appropriateness of classification
as revenue by reviewing the underlying
rationale of the distribution.
The results of our procedures identified
no material misstatement in relation
to the risk of incomplete or inaccurate
revenue recognition, including the
classification of special dividends as
revenue or capital items in the Income
Statement.
Independent Auditors’ Report
continued
Section 4: Financial statements
79
Risk
Our response to the risk
Key observations communicated
to the Audit Committee
Risk of incorrect valuation or
ownership of the investment portfolio
Refer to the Report of the Audit
Committee (page 70); Accounting
policies (pages 88 and 89); and Note 10
of the Financial Statements (page 94).
The valuation of the investment portfolio
as at 31 December 2024 was $121.56m
(2023: $190.88m), consisting of listed
equity and fixed income investments.
The valuation of the instruments held
in the investment portfolio is the key
driver of the Company’s net asset value
and total return. Inappropriate asset
pricing, including incorrect application
of exchange rates, or failure to maintain
proper legal title of the instruments held
by the Company could have a significant
impact on the portfolio valuation and,
therefore, the return generated for
shareholders.
The fair value of listed investments
is determined using quoted market
bid prices at close of business on the
reporting date.
We performed the following
procedures:
We obtained an understanding of The
Bank of New York Mellon (International)
Limited’s (‘BNYM’) process surrounding
investment title and pricing by
performing our walkthrough procedures.
For all listed investments in the
portfolio, we compared the market
prices and exchange rates applied to
an independent pricing vendor and
recalculated the investment valuations
as at year end.
We inspected the stale pricing reports
produced by BNYM to identify prices
that have not changed within one day
and verified whether the listed price
is a valid fair value. We corroborated
the accuracy of stale pricing report
by performing our liquidity testing
procedures on the investment portfolio
and confirmed that there were no
investments with stale prices at the year
end.
We compared the Company’s
investment holdings at 31 December
2024 to independent confirmations
received directly from the Company’s
Custodian and Depositary, testing
any reconciling items to supporting
information.
The results of our procedures identified
no material misstatement in relation
to the risk of incorrect valuation or
ownership of the investment portfolio.
Our application of materiality
We apply the concept of materiality in planning and
performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that,
individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users
of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Company to be $1.16m
(2023: $1.90m), which is 1% (2023: 1%) of Company’s
shareholders’ funds. We believe that shareholders’ funds
provides us with a basis of materiality aligned to the key
measure of the Company’s performance.
Performance materiality
The application of materiality at the individual account or
balance level. It is set at an amount to reduce to an appropriately
low level the probability that the aggregate of uncorrected and
undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our
assessment of the Company’s overall control environment,
our judgement was that performance materiality was 75%
(2023: 75%) of our planning materiality, namely $0.87m
(2023: $1.42m). We have set performance materiality at
this percentage due to our past experience of the audit that
indicates a lower risk of misstatements, both corrected and
uncorrected.
Given the importance of the distinction between revenue
and capital for the Company we have also applied a separate
testing threshold of $0.37m (2023: $0.49m) for the revenue
column of the Income Statement, being the greater of 5% of
the net revenue profit on ordinary activities before taxation
and our reporting threshold.
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Annual Report and Financial Statements 31 December 2024
Reporting threshold
An amount below which identified misstatements are
considered as being clearly trivial.
We agreed with the Audit Committee that we would report to
them all uncorrected audit differences in excess of $0.06m
(2023: $0.09m), which is set at 5% of planning materiality,
as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in
light of other relevant qualitative considerations in forming
our opinion.
Other information
The other information comprises the information included
in the annual report set out on pages 1 to 73 and 108 to
130, other than the financial statements and our auditor’s
report thereon. The Directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not cover
the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements,
we are required to determine whether this gives rise to
a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the Directors’ remuneration report
to be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
• the information given in the strategic report and the
Directors’ report for the financial year for which the
financial statements are prepared is consistent with the
financial statements; and
•
the strategic report and Directors’ reports have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
Company and its environment obtained in the course of the
audit, we have not identified material misstatements in the
strategic report or Directors’ report.
We have nothing to report in respect of the following matters
in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
•
adequate accounting records have not been kept, or
returns adequate for our audit have not been received from
branches not visited by us; or
•
the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and returns; or
•
certain disclosures of Directors’ remuneration specified by
law are not made; or
•
we have not received all the information and explanations
we require for our audit.
Corporate Governance Statement
We have reviewed the Directors’ statement in relation to
going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Company’s
compliance with the provisions of the UK Corporate
Governance Code specified for our review by the UK Listing
Rules.
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent
with the financial statements or our knowledge obtained
during the audit:
•
Directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified on pages 50 and 51 and
page 87;
•
Directors’ explanation as to its assessment of the
Company’s prospects, the period this assessment covers
and why the period is appropriate on pages 45 and 46;
•
Director’s statement on whether it has a reasonable
expectation that the group will be able to continue in
operation and meets its liabilities on page 46, pages 50
and 51 and page 87;
•
Directors’ statement on fair, balanced and understandable
on pages 72 and 73;
•
Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks on pages
40 and 41;
Independent Auditors’ Report
continued
Section 4: Financial statements
81
•
The section of the annual report that describes the review
of effectiveness of risk management and internal control
systems on pages 40 to 45; and
•
The section describing the work of the audit committee on
pages 69 to 72.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities
statement in respect of Annual Report and Financial
Statements set out on page 73, the Directors are responsible
for the preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such
internal control as the Directors determine is necessary to
enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are
responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate
the Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial
statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
Explanation as to what extent the audit was considered
capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect
irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent to
which our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention
and detection of fraud rests with both those charged with
governance of the Company and management.
• We obtained an understanding of the legal and
regulatory frameworks that are applicable to the
Company and determined that the most significant are
FRS 102, the Companies Act 2006, the Listing Rules,
the UK Corporate Governance Code, the Association of
Investment Companies’ Code of Corporate Governance
and Statement of Recommended Practice, section 1158
of the Corporation Tax Act 2010 and The Companies
(Miscellaneous Reporting) Regulations 2018.
• We understood how the Company is complying with those
frameworks through discussions with the Audit Committee
and Company Secretary, review of Board and committee
meeting minutes and review of papers provided to the
Audit Committee.
• We assessed the susceptibility of the Company’s financial
statements to material misstatement, including how fraud
might occur by considering the key risks impacting the
financial statements. We identified a fraud risk with respect
to incomplete or inaccurate revenue recognition through
incorrect classification of special dividends as revenue or
capital items in the Income Statement. Further detail of
our approach is set out in the section on key audit matters
above.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws
and regulations. Our procedures involved review of the
reporting to the Directors with respect to the application
of the documented policies and procedures and review of
the financial statements to ensure compliance with the
reporting requirements of the Company.
A further description of our responsibilities for the audit
of the financial statements is located on the Financial
Reporting Council’s website at
https://www.frc.org.uk/
auditorsresponsibilities
. This description forms part of our
auditor’s report.
Other matters we are required to address
Following the recommendation from the audit committee, we
were appointed by the Company on 29 June 2020 to audit
the financial statements for the year ending 31 December
2020 and subsequent financial periods.
The period of total uninterrupted engagement including
previous renewals and reappointments is five years, covering
the years ended 31 December 2020 to 31 December 2024.
The audit opinion is consistent with the additional report to
the audit committee.
82
BlackRock Latin American Investment Trust plc
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Annual Report and Financial Statements 31 December 2024
Use of our report
This report is made solely to the Company’s members,
as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken
so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone
other than the Company and the Company’s members as a
body, for our audit work, for this report, or for the opinions we
have formed.
MATTHEW PRICE
(Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP,
Statutory Auditor
London
28 March 2025
Independent Auditors’ Report
continued
Section 4: Financial statements
83
Income Statement
for the year ended 31 December 2024
2024
2023
Revenue
Capital
Total
Revenue
Capital
Total
Notes
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
(Losses)/gains on investments held at fair value through
profit or loss
10
–
(71,060)
(71,060)
–
45,717
45,717
Gains on foreign exchange
–
22
22
–
22
22
Income from investments held at fair value through profit
or loss
3
8,598
–
8,598
10,915
–
10,915
Other income
3
23
–
23
49
–
49
Total income/(loss)
8,621
(71,038)
(62,417)
10,964
45,739
56,703
Expenses
Investment management fee
4
(291)
(873)
(1,164)
(339)
(1,019)
(1,358)
Other operating expenses
5
(745)
(18)
(763)
(724)
(19)
(743)
Total operating expenses
(1,036)
(891)
(1,927)
(1,063)
(1,038)
(2,101)
Net profit/(loss) on ordinary activities before finance
costs and taxation
7,585
(71,929)
(64,344)
9,901
44,701
54,602
Finance costs
6
(174)
(522)
(696)
(88)
(263)
(351)
Net profit/(loss) on ordinary activities before taxation
7,411
(72,451)
(65,040)
9,813
44,438
54,251
Taxation charge
7
(521)
–
(521)
(846)
–
(846)
Net profit/(loss) on ordinary activities after taxation
6,890
(72,451)
(65,561)
8,967
44,438
53,405
Earnings/(loss) per ordinary share (US$ cents)
9
23.40
(246.02)
(222.62)
30.45
150.90
181.35
The total columns of this statement represent the Company’s profit and loss account. The supplementary revenue and capital
accounts are both prepared under guidance published by the Association of Investment Companies (AIC). All items in the
above statement derive from continuing operations. No operations were acquired or discontinued during the year. All income
is attributable to the equity holders of the Company.
The net profit/(loss) for the year disclosed above represents the Company’s total comprehensive income/(loss).
The notes on pages 87 to 105 form part of these financial statements.
84
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Statement of Changes in Equity
for the year ended 31 December 2024
The notes on pages 87 to 105 form part of these financial statements.
Called
up share
capital
Share
premium
account
Capital
redemption
reserve
Non-
distributable
reserve
Capital
reserves
Revenue
reserve
Total
Note
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
For the year ended 31 December 2024
At 31 December 2023
3,163
11,719
5,824
4,356
158,781
5,876
189,719
Total comprehensive (loss)/income
Net (loss)/profit for the year
–
–
–
–
(72,451)
6,890
(65,561)
Transactions with owners, recorded
directly to equity:
Dividends paid
1
8
–
–
–
–
–
(8,196)
(8,196)
At 31 December 2024
3,163
11,719
5,824
4,356
86,330
4,570
115,962
For the year ended 31 December 2023
At 31 December 2022
3,163
11,719
5,824
4,356
114,343
8,706
148,111
Total comprehensive income:
Net profit for the year
–
–
–
–
44,438
8,967
53,405
Transactions with owners, recorded
directly to equity:
Dividends paid
2
8
–
–
–
–
–
(11,797)
(11,797)
At 31 December 2023
3,163
11,719
5,824
4,356
158,781
5,876
189,719
1
Quarterly dividend of 8.05 cents per share for the year ended 31 December 2023, declared on 2 January 2024 and paid on
9 February 2024; quarterly dividend of 7.39 cents per share for the year ended 31 December 2024, declared on 2 April 2024 and
paid on 16 May 2024; quarterly dividend of 6.13 cents per share for the year ended 31 December 2024, declared on 1 July 2024 and
paid on 13 August 2024; quarterly dividend of 6.26 cents per share, declared on 1 October 2024 and paid on 8 November 2024.
2
Quarterly dividend of 6.29 cents per share for the year ended 31 December 2022, declared on 3 January 2023 and paid on
8 February 2023; special dividend of 13.00 cents per share for the year ended 31 December 2022, declared on 3 January 2023 and
paid on 8 February 2023; quarterly dividend of 6.21 cents per share for the year ended 31 December 2023, declared on 3 April 2023
and paid on 16 May 2023; quarterly dividend of 7.54 cents per share for the year ended 31 December 2023, declared on 3 July 2023
and paid on 11 August 2023; quarterly dividend of 7.02 cents per share, declared on 2 October 2023 and paid on 9 November 2023.
For information on the Company’s distributable reserves please refer to note 15 on page 96.
Section 4: Financial statements
85
2024
2023
Notes
US$’000
US$’000
Fixed assets
Investments held at fair value through profit or loss
10
121,561
190,875
Current assets
Debtors
11
1,320
2,135
Cash and cash equivalents – cash at bank
638
274
Total current assets
1,958
2,409
Creditors – amounts falling due within one year
Cash and cash equivalents – bank overdraft
16
(6,769)
(2,658)
Other creditors
12
(764)
(883)
Total current liabilities
(7,533)
(3,541)
Net current liabilities
(5,575)
(1,132)
Total assets less current liabilities
115,986
189,743
Creditors – amounts falling due after more than one year
Non-equity redeemable shares
13
(24)
(24)
(24)
(24)
Net assets
115,962
189,719
Capital and reserves
Called up share capital
14
3,163
3,163
Share premium account
15
11,719
11,719
Capital redemption reserve
15
5,824
5,824
Non-distributable reserve
15
4,356
4,356
Capital reserves
15
86,330
158,781
Revenue reserve
15
4,570
5,876
Total shareholders’ funds
9
115,962
189,719
Net asset value per ordinary share (US$ cents)
9
393.78
644.24
The financial statements on pages 83 to 105 were approved and authorised for issue by the Board of Directors on 28
March
2025 and signed on its behalf by Carolan Dobson, Chair.
BlackRock Latin American Investment Trust plc
Registered in England, No. 02479975
Balance Sheet
as at 31 December 2024
The notes on pages 87 to 105 form part of these financial statements.
86
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Statement of Cash Flows
for the year ended 31 December 2024
2024
2023
US$’000
US$’000
Operating activities
Net (loss)/profit on ordinary activities before taxation
1
(65,040)
54,251
Add back finance costs
696
351
Losses/(gains) on investments held at fair value through profit or loss
71,060
(45,717)
Gains on foreign exchange
(22)
(22)
Sale of investments held at fair value through profit or loss
114,906
114,570
Purchase of investments held at fair value through profit or loss
(116,652)
(101,634)
Decrease/(increase) in debtors
815
(569)
Decrease in other creditors
(119)
(71)
Taxation on investment income
(521)
(846)
Net cash generated from operating activities
5,123
20,313
Financing activities
Interest paid
(696)
(351)
Dividends paid
(8,196)
(11,797)
Net cash used in financing activities
(8,892)
(12,148)
(Decrease)/increase in cash and cash equivalents
(3,769)
8,165
Cash and cash equivalents at the start of the year
(2,384)
(10,571)
Effect of foreign exchange rate changes
22
22
Cash and cash equivalents at end of the year
(6,131)
(2,384)
Comprised of:
Cash at bank
638
274
Bank overdraft
(6,769)
(2,658)
Total
(6,131)
(2,384)
1
Dividends and interest received in cash during the year amounted to US$8,754,000 and US$23,000 (2023: US$9,671,000 and
US$49,000).
The notes on pages 87 to 105 form part of these financial statements.
Section 4: Financial statements
87
1. Principal activity
The Company was incorporated on 12 March 1990 and its principal activity is that of an investment trust company within the
meaning of Section 1158 of the Corporation Tax Act 2010.
2. Accounting policies
The principal accounting policies adopted by the Company are set out below.
(a) Basis of preparation
The financial statements have been prepared on a going concern basis in accordance with The Financial Reporting Standard
applicable in the UK and Republic of Ireland (FRS 102) and the revised Statement of Recommended Practice – Financial
Statements of Investment Trust Companies and Venture Capital Trusts (SORP), issued by the Association of Investment
Companies (AIC) in October 2019 and updated in July 2022, and the provisions of the Companies Act 2006.
Substantially, all of the assets of the Company consist of securities that are readily realisable and, accordingly, the Directors
are satisfied that the Company has adequate resources to continue in operational existence for the period to 31 March 2026,
being a period of at least 12 months from the date of approval of these financial statements, and therefore consider the going
concern assumption to be appropriate. The Directors have reviewed compliance with the covenants associated with the bank
overdraft, income and expense projections and the liquidity of the investment portfolio in making their assessment.
The Directors have considered the impact of climate change on the value of the investments included in the Financial
Statements and have concluded that there was no further impact of climate change to be considered as the investments are
valued based on market pricing as required by FRS 102.
None of the Company’s other assets and liabilities were considered to be potentially impacted by climate change.
The principal accounting policies adopted by the Company are set out below. Unless specified otherwise, the policies
have been applied consistently throughout the year and are consistent with those applied in the preceding year. All of the
Company’s operations are of a continuing nature.
The Company’s financial statements are presented in US Dollars, which is the functional and presentation currency of the
Company. The US Dollar is the functional currency because it is the currency in which the bulk of the Company’s assets
(notably portfolio investments, cash at bank, bank overdrafts and amounts due to and from brokers) are denominated. All
values are rounded to the nearest thousand US Dollars (US$’000) except where otherwise indicated.
(b) Presentation of Income Statement
In order to reflect the activities of an investment trust company and in accordance with guidance issued by the AIC,
supplementary information which analyses the Income Statement between items of a revenue and a capital nature has been
presented alongside the Income Statement.
(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business being investment business.
(d) Income
Dividends receivable on equity shares are treated as revenue for the year on an ex-dividend basis. Where no ex-dividend
date is available, dividends receivable on or before the year end are treated as revenue for the year. Provisions are made for
dividends not expected to be received.
Special dividends are recognised on an ex-dividend basis and treated as capital or revenue depending on the facts or
circumstances of each particular dividend.
Dividends are accounted for in accordance with Section 29 of FRS 102 on the basis of income actually receivable, without
adjustment for tax credits attaching to the dividend. Dividends from overseas companies continue to be shown gross of
withholding tax.
Deposit interest receivable is accounted for using the effective interest method in accordance with Section 11 of FRS 102.
Notes to the Financial Statements
for the year ended 31 December 2024
88
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
2. Accounting policies
continued
Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the cash
equivalent of the dividend is recognised as revenue. Any excess in the value of the shares received over the amount of the cash
dividend is recognised in capital.
Fixed returns on non-equity securities are recognised on a time apportionment basis. The return on a fixed interest security is
recognised on a time apportionment basis so as to reflect the effective yield on the debt security. Amounts amortised during
the year are recognised in the Income Statement. Interest income is accounted for on an accruals basis.
(e) Expenses
All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the
revenue account of the Income Statement, except as follows:
•
expenses which are incidental to the acquisition or disposal of an investment are treated as capital. Details of transaction
costs on the purchases and sales of investments are disclosed in note 10 on page 94;
•
expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments
can be demonstrated; and
•
the investment management fee and finance costs have been allocated 75% to the capital account and 25% to the revenue
account of the Income Statement in line with the Board’s expected long-term split of returns, in the form of capital gains and
income respectively, from the investment portfolio.
(f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the
taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because it excludes items
of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or
deductible. The Company’s liability for current tax is calculated using tax rates that were applicable at the balance sheet date.
The current tax effect of different items of expenditure is allocated between capital and revenue on the marginal basis using
the Company’s effective rate of corporation tax for the accounting period.
Deferred taxation is recognised in respect of all timing differences at the financial reporting date, where transactions or events
that result in an obligation to pay more taxation in the future or right to less taxation in the future have occurred at the balance
sheet date. Deferred taxation is measured on a non-discounted basis, at the average tax rates that are expected to apply
in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted
or substantively enacted by the balance sheet date. This is subject to deferred taxation assets only being recognised if it is
considered more likely than not that there will be suitable profits from which the future reversal of the timing differences can
be deducted.
(g) Investments held at fair value through profit or loss
The Company’s investments are classified as held at fair value through profit or loss in accordance with Sections 11 and 12 of
FRS 102 and are managed and evaluated on a fair value basis in accordance with its investment strategy.
All investments are classified upon initial recognition as held at fair value through profit or loss. Purchases of investments are
recognised on a trade date basis. Sales are recognised at the trade date of the disposal and the proceeds are measured at fair
value, which is regarded as the proceeds of the sale less any transaction costs.
The fair value of the financial investments is based on their quoted bid price at the balance sheet date on the exchange on which
the investment is quoted, without deduction for the estimated future selling costs.
Unquoted investments are valued by the Directors at fair value using International Private Equity and Venture Capital Valuation
Guidelines. This policy applies to all current and non-current asset investments of the Company. These guidelines are aligned
with FRS 102 and, where this does not align, FRS 102 prevails.
Notes to the Financial Statements
continued
Section 4: Financial statements
89
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised
in the Income Statement as ‘Gains or losses on investments held at fair value through profit or loss’. Also included within this
heading are transaction costs in relation to the purchase or sale of investments.
The fair value hierarchy consists of the following three levels:
Level 1 – Quoted market prices for identical instruments in active markets.
Level 2 – Valuation techniques using observable inputs.
Level 3 – Valuation techniques using significant unobservable inputs.
(h) Debtors
Debtors include sales for future settlement, other debtors and prepayments and accrued income in the ordinary course of
business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-
current assets.
(i) Creditors
Creditors include purchases for future settlement, interest payable, share buy back costs and accruals in the ordinary course
of business. Creditors are classified as creditors – amounts falling due within one year if payment is due within one year or less.
If not, they are presented as creditors – amounts falling due after more than one year.
(j) Dividends payable
Under Section 32 of FRS 102, final dividends should not be accrued in the financial statements unless they have been
approved by shareholders before the balance sheet date. Dividends payable to equity shareholders are recognised in the
Statement of Changes in Equity when they have been approved by shareholders and have become a liability of the Company.
Interim dividends are only recognised in the financial statements in the period in which they are paid. Dividends are financed
through a combination of available net income in each financial year and revenue and capital reserves.
(k) Cash and cash equivalents
Cash comprises cash in hand and demand deposits. Cash equivalents include bank overdrafts repayable on demand and short-
term, highly liquid investments, that are readily convertible to known amounts of cash and that are subject to an insignificant risk
of changes in value.
(l) Foreign currency translation
In accordance with Section 30 of FRS 102, the Company is required to determine a functional currency being the currency in
which the Company predominately operates. The functional and reporting currency is US Dollars, reflecting the primary economic
environment in which the Company operates. Transactions in foreign currencies are translated into US Dollars at the rates of
exchange ruling on the date of the transaction. Foreign currency monetary assets and liabilities held at fair value are translated into
US Dollars at the rates of exchange ruling at the balance sheet date. Non-monetary assets held at fair value are translated into US
Dollars at the rates of exchange ruling when the fair value was determined. Profits and losses thereon are recognised in the capital
account of the Income Statement and taken to the capital reserve.
(m) Share repurchases, share reissues and new share issues
Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased
and capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006. The
full cost of the repurchase is charged to the capital reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is charged to the capital redemption reserve. Where
treasury shares are subsequently re-issued:
•
amounts received to the extent of the repurchase price are credited to the capital redemption reserve; and
•
any surplus received in excess of the repurchase price is taken to the share premium account.
Where new shares are issued, the par value is taken to called up share capital and amounts received to the extent of any
surplus received in excess of the par value are taken to the share premium account.
Share issue costs are charged to the share premium account. Costs on share reissues are charged to the capital reserve.
90
BlackRock Latin American Investment Trust plc
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Annual Report and Financial Statements 31 December 2024
2. Accounting policies
continued
(n) Bank borrowings
Bank overdrafts are recorded as the proceeds received. Finance charges are accounted for in the Income Statement using the
Effective Interest Method and are added to the carrying amount of the instruments to the extent that they are not settled in the
period in which they arise.
(o) Critical accounting estimates and judgements
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions
will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. The Directors do not believe that any accounting judgements or estimates have a significant risk of causing a
material adjustment to the carrying amount of assets and liabilities within the next financial year.
3. Income
2024
2023
US$’000
US$’000
Investment income:
Overseas dividends
8,132
10,339
Overseas REIT
1
distributions
300
416
Overseas special dividends
166
160
Total investment income
8,598
10,915
Other income:
Deposit interest
23
47
Interest from Cash Fund
–
2
Total other income
23
49
Total income
8,621
10,964
1
Real Estate Investment Trust.
Dividends and interest received in cash during the year amounted to US$8,754,000 and US$23,000 (2023: US$9,671,000 and
US$49,000).
No special dividends have been recognised in capital in 2024 (2023: US$nil).
4. Investment management fee
2024
2023
Revenue
Capital
Total
Revenue
Capital
Total
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
Investment management fee
291
873
1,164
339
1,019
1,358
Total
291
873
1,164
339
1,019
1,358
Under the terms of the investment management agreement, BFM is entitled to a fee of 0.80% per annum based on the
Company’s daily Net Asset Value (NAV). The fee is levied quarterly.
The investment management fee is allocated 25% to the revenue account and 75% to the capital account of the Income
Statement. There is no additional fee for company secretarial and administration services.
Notes to the Financial Statements
continued
Section 4: Financial statements
91
5. Other operating expenses
2024
2023
US$’000
US$’000
Allocated to revenue:
Custody fees
34
33
Depositary fees
1
15
16
Auditor’s remuneration
2
60
58
Registrar’s fees
40
40
Directors’ emoluments
3
210
222
Marketing fees
103
104
Postage and printing fees
96
65
AIC fees
–
2
Broker fees
44
45
Employer NI contributions
22
27
FCA fee
13
10
Write back of prior year expenses
4
(14)
(6)
Other administration costs
122
108
Total revenue expenses
745
724
Allocated to capital:
Custody transaction charges
5
18
19
Total
763
743
The Company’s ongoing charges
6
, calculated as a percentage of average daily net assets and
using the management fee and all other operating expenses, excluding finance costs, direct
transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items were:
1.23%
1.28%
1
All expenses, other than depositary fees, are paid in Sterling and are therefore subject to exchange rate fluctuations.
2
No non-audit services were provided by the Company’s Auditor.
3
Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report on pages 56 to 59. The Company
has no employees.
4
Relates to prior year accruals for Auditors’ remuneration, Registrar’s fees, postage and printing fees and other administration costs
written back during the year ended 31 December 2024 (2023: AIC fees and other administration costs).
5
For the year ended 31 December 2024, expenses of US$18,000 (2023: US$19,000) were charged to the capital account of the
Income Statement. These relate to transaction costs charged by the Custodian on sale and purchase trades
6
Alternative Performance Measures, see Glossary on pages 118 to 123.
6. Finance costs
2024
2023
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Interest on bank overdraft
174
522
696
88
263
351
Total
174
522
696
88
263
351
Finance costs for the Company are charged 25% to the revenue account and 75% to the capital account of the Income
Statement.
92
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
7. Taxation
(a) Analysis of charge/(credit) in year
2024
2023
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Current taxation:
Corporation tax
489
(178)
311
583
(583)
–
Double taxation relief
(489)
178
(311)
(583)
583
–
–
–
–
–
–
–
Overseas tax
521
–
521
846
–
846
Total taxation charge (note 7(b))
521
–
521
846
–
846
(b) Factors affecting total taxation charge for the year
The taxation assessed for the year is higher (2023: lower) than the standard rate of corporation tax of 25.00% (2023: blended
rate of 23.52% based on a rate of 19.00% up to 31 March 2023 and a rate of 25.00% from 1 April 2023). The differences are
explained below:
2024
2023
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Profit/(loss) on ordinary activities before taxation
7,411
(72,451)
(65,040)
9,813
44,438
54,251
Profit/(loss) on ordinary activities multiplied by
standard rate of 25.00% (2023: blended rate of
23.52%)
1,853
(18,113)
(16,260)
2,308
10,452
12,760
Effects of:
Capital losses/(gains) not taxable
–
17,765
17,765
–
(10,753)
(10,753)
Exchange gains not taxable
–
(5)
(5)
–
(5)
(5)
Relief for overseas tax
(489)
178
(311)
(583)
441
(142)
Income not subject to corporation tax
(1,364)
–
(1,364)
(1,725)
–
(1,725)
Overseas tax suffered
521
–
521
846
–
846
Tax losses not utilised/(utilised)
–
171
171
–
(139)
(139)
Disallowed expenses
–
4
4
–
4
4
Total taxation charge for the year
(note 7(a))
521
–
521
846
–
846
At 31 December 2024, the Company had net surplus management expenses of US$868,000 (2023: US$nil) and a non-trade
loan relationship deficit of US$2,600,000 (2023: US$1,883,000).
A deferred tax asset has not been recognised in respect of these losses because the Company is not expected to generate
taxable income in a future period in excess of the deductible expenses of that future period. Accordingly, it is unlikely that
the Company will be able to reduce future tax liabilities through the use of existing surplus management expenses or loan
relationship deficits. The estimated value of this unrecognised deferred tax asset at 31 December 2024 is US$867,000 (2023:
US$471,000) based on the corporation tax rate in effect from 1 April 2023 of 25%, as enacted by the Finance Act 2021.
Notes to the Financial Statements
continued
Section 4: Financial statements
93
8. Dividends
2024
2023
Dividends paid on equity shares:
Record date
Payment date
US$’000
US$’000
Year to 31 December 2022 - dividend of 13.00
cents
13 January 2023
8 February 2023
–
3,828
Quarter to 31 December 2023 - dividend of 8.05
cents
11 January 2024
9 February 2024
2,371
1,852
Quarter to 31 March 2024 – dividend of
7.39 cents
11 April 2024
16 May 2024
2,176
1,829
Quarter to 30 June 2024 – dividend of 6.13 cents
11 July 2024
13 August 2024
1,805
2,221
Quarter to 30 September 2024 – dividend of
6.26 cents
10 October 2024
8 November 2024
1,844
2,067
Accounted for in the financial statements
8,196
11,797
The Company’s dividend policy is to pay regular quarterly dividends equivalent to 1.25% of the Company’s US Dollar NAV
on the last working day of March, June, September and December each year, with the dividends being paid in May, August,
November and February each year, respectively. For the year ending 31 December 2024, the quarterly dividends were
calculated based on the Company’s cum-income US Dollar NAV at the last working day of the quarter.
The Company’s cum-income US Dollar NAV at 31 December 2024 as issued to the market was 393.75 cents per share, and the
Directors have declared a fourth quarterly interim dividend of 4.92 cents per share. The fourth quarterly interim dividend was
paid on 7 February 2025 to holders of ordinary shares on the register at the close of business on 10 January 2025.
The total dividends payable in respect of the year which form the basis of determining retained income for the purpose of
Section 1158 of the Corporation Tax Act 2010 and Section 833 of the Companies Act 2006, and the amount proposed for the
year ended 31 December 2024, meet the relevant requirements as set out in this legislation.
2024
2023
Dividends paid or declared on equity shares:
US$’000
US$’000
Quarter to 31 March 2024 - dividend of 7.39 cents (2023: 6.21 cents)
2,176
1,829
Quarter to 30 June 2024 - dividend of 6.13 cents (2023: 7.54 cents)
1,805
2,221
Quarter to 30 September 2024 - dividend of 6.26 cents (2023: 7.02 cents)
1,843
2,067
Quarter to 31 December 2024 - dividend of 4.92 cents
1
(2023: 8.05 cents)
1,449
2,371
Total
7,273
8,488
1
Based on 29,448,641 ordinary shares in issue at 10 January 2025.
All dividends paid or payable are distributed from the Company’s distributable reserves.
94
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
9. (Loss)/earnings and net asset value per ordinary share
Revenue, capital (loss)/earnings and net asset value per ordinary share are shown below and have been calculated using the
following:
2024
2023
Net revenue profit attributable to ordinary shareholders (US$’000)
6,890
8,967
Net capital (loss)/profit attributable to ordinary shareholders (US$’000)
(72,451)
44,438
Total (loss)/profit attributable to ordinary shareholders (US$’000)
(65,561)
53,405
Total shareholders’ funds (US$’000)
115,962
189,719
Earnings per share
The weighted average number of ordinary shares in issue during the year on which the earnings
per ordinary share was calculated was:
29,448,641
29,448,641
The actual number of ordinary shares in issue at the year end on which the net asset value was
calculated was:
29,448,641
29,448,641
Calculated on weighted average number of ordinary shares:
Revenue earnings per share (US$ cents) – basic and diluted
23.40
30.45
Capital (loss)/earnings per share (US$ cents) - basic and diluted
(246.02)
150.90
Total (loss)/earnings per share (US$ cents) - basic and diluted
(222.62)
181.35
As at
31 December
2024
As at
31 December
2023
Net asset value per ordinary share (US$ cents)
393.78
644.24
Ordinary share price (US$ cents)
1
348.17
569.84
1
Based on an exchange rate of US$1.25 to £1 at 31 December 2024 and US$1.27 to £1 at 31 December 2023.
There are no dilutive securities at the year end.
10. Investments held at fair value through profit or loss
2024
2023
US$’000
US$’000
Overseas listed equity investments
121,561
190,875
Valuation of investments at 31 December
121,561
190,875
Opening book cost of equity and fixed income investments
162,237
157,988
Investment holding gains
28,638
161
Opening fair value
190,875
158,149
Analysis of transactions made during the year:
Purchases at cost
116,652
101,573
Sales proceeds received
(114,906)
(114,564)
(Losses)/gains on investments
(71,060)
45,717
Closing fair value
121,561
190,875
Closing book cost of equity investments
170,862
162,237
Closing investment holding (losses)/gains
(49,301)
28,638
Closing valuation
121,561
190,875
The Company received US$114,906,000 (2023: US$114,564,000) from investments sold in the year. The book cost of these
investments when they were purchased was US$108,027,000 (2023: US$97,324,000). These investments have been revalued over
time and until they were sold any unrealised gains/losses were included in the fair value of investments.
Transaction costs of US$101,000 were incurred on the acquisition of investments (2023: US$97,000). Costs relating to the disposal
of investments during the year amounted to US$97,000 (2023: US$125,000). All transaction costs have been included within
capital reserves.
Notes to the Financial Statements
continued
Section 4: Financial statements
95
11. Debtors
2024
2023
US$’000
US$’000
Prepayments and accrued income
1,320
2,135
Total
1,320
2,135
12. Creditors – amounts falling due within one year
2024
2023
US$’000
US$’000
Other payables
764
883
Total
764
883
13. Creditors – amounts falling due after more than one year
2024
2023
US$’000
US$’000
Non-equity redeemable shares
24
24
Total
24
24
The redeemable shares of £1 each carry the right to receive a fixed dividend at the rate of 0.1% per annum on the nominal
amount thereof. They are capable of being redeemed by the Company at any time and confer no rights to receive notice of,
attend or vote at general meetings except where the rights of holders are to be varied or abrogated. On a winding up, the
capital paid up on such shares ranks pari passu with, and in proportion to, any amounts of capital paid to the holders of
ordinary shares, but does not confer any further right to participate in the surplus assets of the Company.
14. Share capital
Ordinary
shares
in issue
number
Treasury
shares
number
Total
shares
number
Nominal
value
US$’000
Allotted, called up and fully paid share capital
comprised:
Ordinary shares of 10 cents each
At 31 December 2022
29,448,641
2,181,662
31,630,303
3,163
At 31 December 2023
29,448,641
2,181,662
31,630,303
3,163
At 31 December 2024
29,448,641
2,181,662
31,630,303
3,163
During the period to 31 December 2024, no ordinary shares were repurchased (2023: none) and no ordinary share
s were issued
(2023: none).
The ordinary shares give shareholders voting rights, the entitlement to all of the capital growth in the Company’s assets and to all
income from the Company that is resolved to be distributed.
96
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
15. Reserves
Distributable reserves
Share
premium
account
Capital
redemption
reserve
Non-
distributable
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation of
investments
held
Revenue
reserve
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
At 31 December 2023
11,719
5,824
4,356
130,143
28,638
5,876
Movement during the year:
Total comprehensive income/(loss):
Net profit/(loss) for the year
–
–
–
5,488
(77,939)
6,890
Transactions with owners, recorded
directly to equity:
Dividends paid during the year
–
–
–
–
–
(8,196)
At 31 December 2024
11,719
5,824
4,356
135,631
(49,301)
4,570
Distributable reserves
Share
premium
account
Capital
redemption
reserve
Non-
distributable
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation of
investments
held
Revenue
reserve
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
At 31 December 2022
11,719
5,824
4,356
114,178
165
8,706
Movement during the year:
Total comprehensive income:
Net profit for the year
–
–
–
15,965
28,473
8,967
Transactions with owners, recorded
directly to equity:
Dividends paid during the year
–
–
–
–
–
(11,797)
At 31 December 2023
11,719
5,824
4,356
130,143
28,638
5,876
The share premium account, capital redemption reserve and non-distributable reserve are not distributable reserves under
the Companies Act 2006. In accordance with ICAEW Technical Release 02/17BL on Guidance on Realised and Distributable
Profits under the Companies Act 2006, the capital reserve may be used as distributable reserves for all purposes and, in
particular, the repurchase by the Company of its ordinary shares and for payments such as dividends. In accordance with the
Company’s Articles of Association, capital reserves and the revenue reserve may be distributed by way of dividend. There was
a loss of US$49,301,000 on the capital reserve arising on the revaluation of investments (2023: gain of US$28,638,000). The
gains on revaluation of investments are subject to fair value movements and may not be readily realisable at short notice, as
such any gains are not entirely distributable. The investments are subject to financial risks, as such capital reserves (arising on
investments sold) and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these
investments.
Notes to the Financial Statements
continued
Section 4: Financial statements
97
16. Financial risk management
The Company’s investment activities expose it to various types of risks which are associated with the financial instruments
and markets in which it invests. The following information is not intended to be a comprehensive summary of all risks and
shareholders should refer to the Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be
found at
www.blackrock.com/uk/brla
for a more detailed discussion of the risks inherent in investing in the Company.
Risk management framework
The following information refers to the risk management framework of the Alternative Investment Fund Manager (AIFM),
however, as disclosed in the Corporate Governance Statement on pages 62 to 68 and in the Statement of Directors’
Responsibilities on page 73, it is the ultimate responsibility of the Board to ensure that the Company’s risks are appropriately
monitored, and to the extent that elements of this are delegated to third party service providers, the Board is responsible for
ensuring that the relevant parties are discharging their duties in accordance with the terms of relevant agreements and taking
appropriate action to the extent issues are identified.
The Directors of the AIFM review quarterly investment performance reports and receive semi-annual presentations in person
from the Investment Manager covering the Company’s performance and risk profile during the year. The AIFM has delegated
the day-to-day administration of the investment programme to the Investment Manager. The Investment Manager is also
responsible for ensuring that the Company is managed within the terms of its investment guidelines and limits set out in the
Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be found at
www.blackrock.com/uk/brla
.
The AIFM is responsible for monitoring investment performance, product risk monitoring and oversight and has the
responsibility for the monitoring and oversight of regulatory and operational risk for the Company. The Directors of the AIFM
have appointed a Risk Manager who has responsibility for the daily risk management process with assistance from key risk
management personnel of the Investment Manager, including members of the Risk and Quantitative Analysis Group (RQA)
which is a centralised group which performs an independent risk management function. RQA independently identifies,
measures and monitors investment risk, including climate-related risk, and tracks the actual risk management practices
being deployed across the Company. By breaking down the components of the process, RQA has the ability to determine if the
appropriate risk management processes are in place. This captures the risk management tools employed, how the levels of risk
are controlled, ensuring risk/return is considered in portfolio construction and reviewing outcomes.
The AIFM reports to the Audit Committee twice yearly on key risk metrics and risk management processes; in addition, the
Depositary monitors the performance of the AIFM and reports to the Audit Committee. Any significant issues are reported to
the Board as they arise.
Risk Exposures
The risk exposures of the Company are set out as follows:
(a) Market risk
Market risk arises mainly from uncertainty about future values of financial instruments influenced by other price, currency
and interest rate movements. It represents the potential loss the Company may suffer through holding market positions in
financial instruments in the face of market movements.
A key metric RQA uses to measure market risk is Value-at
-Risk (VaR) which encompasses price, currency and interest rate risk.
VaR is a statistical risk measure that estimates the potential portfolio loss from adverse market moves in an ordinary market
environment. VaR analysis reflects the interdependencies between risk variables (including other price risk, foreign currency
risk and interest rate risk), unlike a traditional sensitivity analysis.
The VaR calculations are based on a confidence level of 99% with a holding period of not greater than one day and a historical
observation period of not less than one year (250 days). A VaR number is defined at a specified probability and a specified
time horizon. A 99% one day VaR means that the expectation is that 99% of the time over a one day period the Company will
lose less than this number in percentage terms. Therefore, higher VaR numbers indicate higher risk. It is noted that the use
of VaR methodology has limitations, namely assumptions that risk factor returns are normally distributed and that the use of
historical market data as a basis for estimating future events does not encompass all possible scenarios, particularly those
that are of an extreme nature and that the use of a specified confidence level (e.g. 99%) does not take into account losses
that occur beyond this level. There is some probability that the loss could be greater than the VaR percentage amounts. These
limitations and the nature of the VaR measure mean that the Company can neither guarantee that losses will not exceed the
VaR amounts indicated, nor that losses in excess of the VaR amounts will not occur more frequently.
The one day VaR as of 31 December 2024 and 31 December 2023 (based on a 99% confidence level) was 3.63% and 2.52%,
respectively.
98
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
16. Financial risk management
continued
(i) Market risk arising from other price risk
Exposure to other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors
specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the
market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health
issues, recessions, climate change, or other events could have a significant impact on the Company and market prices of its
investments.
The Company is exposed to market price risk arising from its equity and fixed interest investments. The movements in the
prices of these investments result in movements in the performance of the Company. Other price risk sensitivity has been
covered by VaR analysis under the market risk section above.
The Company’s exposure to other changes in market prices at 31 December 2024 on its equity investments was
US$121,561,000 (2023: US$190,875,000).
Management of other price risk
By diversifying the portfolio, where this is appropriate and consistent with the Company’s objectives, the risk that a price
change of a particular investment will have a material impact on the NAV of the Company is reduced which is in line with the
investment objectives of the Company.
(ii) Market risk arising from foreign currency risk
Exposure to foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. Foreign currency sensitivity risk has been covered by the VaR analysis under the market
risk section.
The fair values of the Company’s monetary items which have foreign currency exposure at 31 December 2024 and
31 December 2023 are shown below. Where the Company’s equity and fixed income investments which are not monetary
items are denominated in a foreign currency, they have been included separately in the analysis so as to show the overall level
of exposure.
2024
Brazilian
Real
Mexican
Peso
Canadian
Dollar
Chilean
Peso
British
Pound
Sterling
US$’000
US$’000
US$’000
US$’000
US$’000
Debtors (due from brokers, prepayments and accrued
income)
244
–
–
–
16
Creditors (due to brokers and other payables)
–
–
–
–
(879)
Cash and cash equivalents - cash at bank
32
–
–
–
606
Cash and cash equivalents - bank overdraft
–
(2)
–
–
–
Total foreign currency exposure on net monetary items
276
(2)
–
–
(257)
Investments at fair value through profit or loss
41,010
35,472
2,299
1,223
–
Total net foreign currency exposure
41,286
35,470
2,299
1,223
(257)
Notes to the Financial Statements
continued
Section 4: Financial statements
99
2023
Brazilian
Real
Mexican
Peso
Chilean
Peso
Canadian
Dollar
British
Pound
Sterling
US$’000
US$’000
US$’000
US$’000
US$’000
Debtors (due from brokers, withholding tax receivable,
prepayments and accrued income)
428
–
–
–
39
Creditors (due to brokers and other payables)
–
–
–
–
(500)
Cash and cash equivalents – cash at bank
135
–
–
–
138
Total foreign currency exposure on net monetary items
563
–
–
–
(323)
Investments at fair value through profit or loss
59,306
26,865
4,246
1,733
–
Total net foreign currency exposure
59,869
26,865
4,246
1,733
(323)
Management of foreign currency risk
The Investment Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board of
the Company on a regular basis.
The Investment Manager measures the risk to the Company of the foreign currency exposure by considering the effect on the
Company’s net asset value and income of a movement in the exchange rate to which the Company’s assets, liabilities, income
and expenses are exposed.
Foreign currency borrowing facilities are available in the form of a multi-currency overdraft facility to limit the Company’s
exposure to anticipated future changes in exchange rates which might otherwise adversely affect the value of the portfolio of
investments.
The Company does not use financial instruments to mitigate the currency exposure in the period between the time that
income is included in the financial statements and its receipt. Derivative contracts are not used to hedge against exposure to
foreign currency risk.
Consequently, the Company is exposed to risks that the exchange rate of its reporting currencies relative to other currencies
may change in a manner which has an adverse effect on the value of the portion of the Company’s assets which are
denominated in currencies other than their own currencies.
(iii) Market risk arising from interest rate risk
Exposure to interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
The Company is exposed to interest rate risk specifically through its cash holdings, fixed interest investments and its borrowing
facilities for investment purposes. Interest rate movements may affect the level of income receivable from any cash at bank and
on deposits and the level of interest payable on variable rate borrowings. The effect of interest rate changes on the earnings of
the companies held within the portfolio may have a significant impact on the valuation of the Company’s investments. Interest
rate sensitivity risk has been covered by the VaR analysis under the market risk section.
100
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
16. Financial risk management
continued
Interest rate exposure
The exposure at 31 December 2024 and 31 December 2023 of financial assets and liabilities to interest rate risk is shown by
reference to:
•
floating interest rates – when the interest rate is due to be re-set; and
•
fixed interest rates – when the financial instrument is due for repayment.
2024
2023
Within
one year
More than
one year
Total
Within
one year
More than
one year
Total
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
Exposure to floating interest rates:
- Cash and cash equivalents – cash at bank
638
–
638
274
–
274
- Cash and cash equivalents –
bank overdraft
(6,769)
–
(6,769)
(2,658)
–
(2,658)
Total exposure to interest rates
(6,131)
–
(6,131)
(2,384)
–
(2,384)
Management of interest rate risk
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account
when making investment decisions and borrowings under the multi-currency overdraft facility.
The Company finances part of its activities through borrowings at levels approved and monitored by the Board of the Company.
The Company, generally, does not hold significant cash balances, with short-term borrowings being used when required.
Derivative contracts are not used to hedge against the exposure to interest rate risk.
Interest received on cash balances, or paid on the bank overdraft respectively, is approximately 4.94% and 6.12% per annum
(2023: 4.90% and 5.95% per annum).
The Company’s floating-rate financial liabilities are indexed to Secured Overnight Financing Rate (SOFR). As a result, the
Company’s IBOR exposures to non-derivative financial liabilities as at 31 December 2024 was a multi-currency overdraft indexed
to SOFR (see note 16(c)).
(b) Counterparty credit risk
Counterparty credit risk is the risk that the issuer of a financial instrument will fail to fulfil an obligation or commitment that it
has entered into with the Company.
The Company is exposed to counterparty credit risk from the parties with which it trades and will bear the risk of settlement
default. Counterparty credit risk to the Company arises from transactions to purchase or sell equity investments.
The major counterparties engaged with the Company are all widely recognised and regulated entities.
There were no past due or impaired assets as of 31 December 2024 (31 December 2023: nil).
Depositary
The Company’s Depositary is The Bank of New York Mellon (International) Limited (BNY or the Depositary) (S&P long-term
credit rating as at 31 December 2024: AA– (2023: AA–)). The Company’s listed investments are held on its behalf by The Bank
of New York Mellon (International) Limited (BNY) as the Company’s Custodian (as sub-delegated by the Depositary). All of the
equity, fixed interest assets and cash of the Company are held within the custodial network of the global custodian appointed
by the Depositary. Bankruptcy or insolvency of the Depositary/Custodian may cause the Company’s rights with respect to its
investments held by the Depositary/Custodian to be delayed or limited. The maximum exposure to this risk at 31 December
2024 is the total value of equity and fixed interest investments held with the Depositary/Custodian and cash and cash
equivalents in the Balance Sheet.
In accordance with the requirements of the depositary agreement, the Depositary will ensure that any agents it appoints to
assist in safekeeping the assets of the Company will segregate the assets of the Company. Thus in the event of insolvency or
bankruptcy of the Depositary, the Company’s non-cash assets are segregated and this reduces counterparty credit risk. The
Company will, however, be exposed to the counterparty credit risk of the Depositary in relation to the Company’s cash held
by the Depositary. In the event of the insolvency or bankruptcy of the Depositary, the Company will be treated as a general
creditor of the Depositary in relation to cash holdings of the Company.
Notes to the Financial Statements
continued
Section 4: Financial statements
101
Counterparties/Brokers
All transactions in listed securities are settled⁄paid for upon delivery using an approved broker. The risk of default is
considered minimal, as delivery of securities sold is only made once the broker has made payment. Payment is made on a
purchase once the securities have been delivered by the broker. The trade will fail if either party fails to meet its obligation.
Counterparty credit risk also arises on transactions with a broker in relation to transactions awaiting settlement. Risk relating
to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the
brokers used. The Company monitors the credit rating and financial position of the broker used to further mitigate this risk.
Cash held as security by the counterparty to financial derivative contracts is subject to the credit risk of the counterparty.
During the period there were no open derivative positions and therefore no cash held as security.
The following table details the total number of counterparties to which the Company is exposed, the maximum exposure to any
one counterparty, the collateral held by the Company against this exposure, the total exposure to all other counterparties and
the lowest long-term credit rating of any one counterparty (or its ultimate parent if unrated).
Total number of
counterparties
Maximum
exposure
to any one
counterparty
1
Collateral
held
1
Total exposure
to all other
counterparties
1
Lowest
credit rating
of any one
counterparty
2
US$’000
US$’000
US$’000
US$’000
31 December 2024
1
638
–
–
AA–
31 December 2023
1
274
–
–
AA-
1
Calculated on a net exposure basis.
2
Standard & Poor’s ratings.
Debtors
Amounts due from debtors are disclosed on the Balance Sheet as debtors.
The counterparties included in debtors are the same counterparties discussed previously under counterparty credit risk and
are subject to the same scrutiny by the BlackRock RQA Counterparty and Concentration Risk (RQA CCR) team. The Company
monitors the ageing of debtors to mitigate the risk of debtor balances becoming overdue.
In summary, the exposure to credit risk at 31 December 2024 and 31 December 2023 was as follows:
2024
2023
US$’000
US$’000
Debtors (amounts due from brokers, prepayments and accrued income)
1,320
2,135
Cash and cash equivalents – cash at bank
638
274
Total
1,958
2,409
Management of counterparty credit risk
Credit risk is monitored and managed by RQA CCR. The team is headed by BlackRock’s Chief Credit Officer who reports to the
Global Head of RQA. Credit authority resides with the Chief Credit Officer and selected team members to whom specific credit
authority has been delegated. As such, counterparty approvals may be granted by the Chief Credit Officer, or by identified RQA
Credit Risk Officers who have been formally delegated authority by the Chief Credit Officer.
The counterparty/credit risk is managed as follows:
•
transactions are only entered into with those counterparties approved by RQA CCR, with a formal review carried out for each
new counterparty and with counterparties selected by RQA CCR on the basis of a number of risk mitigation criteria designed
to reduce the risk to the Company of default;
•
the creditworthiness of financial institutions with whom cash is held is reviewed regularly by RQA CCR; and
•
RQA CCR reviews the credit standard of the Company’s brokers on a periodic basis and set limits on the amount that may be
due from any one broker.
102
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
16. Financial risk management
continued
The Board monitors the Company’s counterparty risk by reviewing:
•
the semi-annual report from the Depositary, which includes the results of periodic site visits to the Company’s Custodian
where controls are reviewed and tested;
•
the Custodian’s Service Organisation Control (SOC 1) reports which include a report by the Custodian’s auditors. This report
sets out any exceptions or issues noted as a result of the auditor’s review of the Custodian’s processes;
•
the Manager’s internal control reports which include a report by the Manager’s auditors. This report sets out any exceptions
or issues noted as a result of the auditor’s review of the Manager’s control processes; and
•
in addition, the Depositary and the Manager report any significant breaches or issues arising to the Board as soon as these
are identified.
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities.
At the year end, the Company has an uncommitted multi-currency overdraft facility for up to US$25 million from The Bank
of New York Mellon (International) Limited (BNY) which it utilises for short-term liquidity purposes. As at 31 December 2024,
US$6.8 million of this overdraft had been utilised (2023: US$2.7 million). Interest is payable at a rate per annum equal to the
Secured Overnight Financing Rate (SOFR) plus 0.97%.
The overdraft facility of 29 July 2010, as amended from time to time, between the Company and BNYM was renewed on
19 Septem
ber
2024, amending in particular the rate of interest applicable to each overdraft utilised.
Liquidity risk exposure
The undiscounted gross cash outflows of the financial liabilities as at 31 December 2024 and 31 December 2023, based on
the earliest date on which payment can be required, were as follows:
2024
2023
3 months
or less
More than
1 year
3 months
or less
More than
1 year
US$’000
US$’000
US$’000
US$’000
Current liabilities:
Cash and cash equivalents – bank overdraft
(6,769)
–
(2,658)
–
Other creditors
(764)
–
(883)
–
Total
(7,533)
–
(3,541)
–
Management of liquidity risk
Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet liquidity demands.
Asset disposals may also be required to meet liquidity needs. Liquidity risk is not significant as the majority of the Company’s
assets are investments in listed securities that are readily realisable.
The Company’s liquidity risk is managed on a daily basis by the Investment Manager in accordance with established policies
and procedures in place. The Investment Manager review daily forward-looking cash reports which project cash obligations.
These reports allow them to manage their obligations.
For the avoidance of doubt, none of the assets of the Company are subject to special liquidity arrangements.
(d) Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Balance Sheet at their fair value (investments) or at an amount
which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals,
cash at bank and bank overdrafts). Section 34 of FRS 102 requires the Company to classify fair value measurements using a fair
value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the
Company are explained in the accounting policies note to the Financial Statements on pages 88 and 89.
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value
measurement of the relevant asset.
Notes to the Financial Statements
continued
Section 4: Financial statements
103
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily available from an exchange, dealer,
broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market
transactions on an arm’s length basis. These include exchange traded derivatives. The Company does not adjust the quoted
price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less
than active, or other valuation techniques where significant inputs are directly or indirectly observable from market data.
Valuation techniques used for non-standardised financial instruments such as over-the-counter derivatives, include the use
of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted
cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the
maximum use of market inputs and relying as little as possible on entity specific inputs.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these
inputs could have a significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices for similar instruments where significant
entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments
for which there is no active market. The Investment Manager considers observable data to be that market data that is readily
available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that
are actively involved in the relevant market.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the
basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering
factors specific to the asset or liability including an assessment of the relevant risks including but not limited to credit risk,
market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs
requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and
inputs used in the measurement of Level 2 and 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below is an analysis of the Company’s financial instruments measured at fair value at the balance sheet date.
Financial assets at fair value through profit or loss as at
31 December 2024
Level 1
Level 2
Level 3
Total
US$’000
US$’000
US$’000
US$’000
Equity investments
121,561
–
–
121,561
Total
121,561
–
–
121,561
Financial assets at fair value through profit or loss as at
31 December 2023
Level 1
Level 2
Level 3
Total
US$’000
US$’000
US$’000
US$’000
Equity investments
190,875
–
–
190,875
Total
190,875
–
–
190,875
There were no transfers between levels for financial assets and financial liabilities during the year recorded at fair value as at
31 December 2024 and 31 December 2023. The Company did not hold any Level 3 securities throughout the financial year or
as at 31 December 2024 (2023: nil).
104
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
16. Financial risk management
continued
For exchange listed equity investments, the quoted price is the bid price. Substantially, all investments are valued based on
unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not
required to be assessed or adjusted for any price related risks, including climate risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
17. Capital management policies and procedures
The Company’s capital management objectives are:
–
to ensure it will be able to continue as a going concern; and
–
to secure long-term capital growth and an attractive total return primarily through investing in quoted securities in Latin
America.
Gearing will be selectively employed with the aim of enhancing returns. The Board view that 105% of the net asset value is
the neutral level of gearing over the longer term and that gearing should be used actively in an approximate range of plus or
minus 10% around this as measured at the time that gearing is instigated. These current parameters sit within the Company’s
gearing policy as set out in the investment policy on pages 31 and 32 which states that net borrowings are not expected to
exceed 25% of net assets under normal circumstances, and the Company’s Articles of Association which limit net borrowings
to 100% of capital and reserves.
The Company’s total capital as at 31 December 2024 was US$115,962,000 (2023: US$189,719,000) comprised of equity,
capital and reserves.
Under the terms of the overdraft facility agreement, the Company’s total indebtedness shall at no time exceed US$25 million
or 30% of the Company’s net asset value (whichever is the lowest) (2023: US$25 million or 30% of the Company’s net asset
value (whichever is the lowest)).
The Board with the assistance of the Investment Manager monitors and reviews the broad structure of the Company’s capital
on an ongoing basis. This review includes:
–
the planned level of gearing, which takes into account the Investment Manager’s view on the market; and
–
the need to buy back equity shares, either for cancellation or to be held in treasury, which takes account of the difference
between the NAV per share and the share price (i.e. the level of share price discount or premium).
The Company is subject to externally imposed capital requirements:
–
as a public company, the Company has a minimum share capital of £50,000; and
–
in order to be able to pay dividends out of profits available for distribution, the Company has to be able to meet one of the
two capital restrictions tests imposed on investment companies by law.
During the year, the Company complied with the externally imposed capital requirements to which it was subject.
18. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a
contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk
management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further
details of the investment management contract are disclosed in the Directors’ Report on page 49.
The investment management fee is levied quarterly, based on 0.80% per annum of the Company’s daily net asset value. The
investment management fee due for the year ended 31 December 2024 amounted to US$1,164,000 (2023: US$1,358,000),
as disclosed in note 4 to the Financial Statements on page 90. At the year end, an amount of US$233,000 was outstanding in
respect of these fees (2023: US$383,000).
In addition to the above services, BIM (UK) has provided the Company with marketing services. The total fees paid or payable
for these services for the year ended 31 December 2024 amounted to US$103,000 excluding VAT (2023: US$104,000).
Marketing fees of US$85,000 (2023: US$86,000) were outstanding at 31 December 2024.
Notes to the Financial Statements
continued
Section 4: Financial statements
105
During the year, the Manager pays the amounts due to the Directors. These fees are then reimbursed by the Company for
the amounts paid on its behalf. As at 31 December 2024, an amount of US$197,000 (2023: US$213,000) was payable to the
Manager in respect of Directors’ fees.
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
Delaware, USA.
19. Related party disclosure
Directors’ Emoluments
At the date of this report, the Board consists of four Non-executive Directors, all of whom are considered to be independent of
the Manager by the Board.
Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors
are set out in the Directors’ Remuneration Report on pages 56 to 59. At 31 December 2024, an amount of US$18,000 (2023:
US$17,000) was outstanding in respect of Directors’ fees.
Significant Holdings
The following investors are:
a.
funds managed by the BlackRock Group or are affiliates of BlackRock, Inc. (Related BlackRock Funds); or
b.
investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and
are as a result, considered to be related parties to the Company (Significant Investors).
Total % of shares held by
Related BlackRock Funds
Total % of shares held by
Significant Investors who are
not affiliates of BlackRock
Group or BlackRock, Inc.
Number of Significant Investors
who are not affiliates of
BlackRock Group or
BlackRock, Inc.
As at 31 December 2024
0.9
23.0
1
As at 31 December 2023
1.0
20.7
1
20. Contingent liabilities
There were no contingent liabilities at 31 December 2024 (2023: none).
108
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Financial calendar
The timing of the announcement and publication of the Company’s results may normally be expected in the months shown
below:
March/April
Annual results announced.
March/April
Annual Report and Financial Statements published.
May
Annual General Meeting.
September
Half yearly figures to 30 June announced and Half Yearly Financial Report published.
Dividend timetable
Period ending
Announcement date
Payment
date
First quarterly dividend
April
May
Second quarterly dividend
July
August
Third quarterly dividend
October
November
Fourth quarterly dividend
January
February
Payment of dividends
Cash dividends will be sent by cheque to the first-named shareholder at their registered address. The Board has arranged
for all shareholders to receive their dividends in Sterling unless they elect otherwise. Shareholders who wish to receive their
dividends in US Dollars should complete and return the enclosed Currency Election Form. Dividends may also be paid direct
into a shareholder’s bank account via BACSTEL-IP (Bankers’ Automated Clearing Service – Telecom Internet Protocol). This
may be arranged by contacting the Company’s registrar, Computershare Investor Services PLC on 0370 707 1112 or by
completing the Mandate Instructions section on the reverse of your dividend counterfoil and sending this to the Company’s
registrar, Computershare. Dividend confirmations will be sent to shareholders at their registered address, unless other
instructions have been given, to arrive on the payment date.
Ordinary share price
The Company’s mid-market ordinary share price is quoted daily in The Financial Times and The Times under ‘Investment
Companies’ and in The Daily Telegraph under ‘Investment Trusts’. The share price is also available on the BlackRock website at
www.blackrock.com/uk/brla
.
ISIN/SEDOL numbers
The ISIN/SEDOL numbers and mnemonic codes for the Company’s ordinary shares are:
Ordinary shares
ISIN
GB0005058408
SEDOL
0505840
Reuters code
BRLA.L
Bloomberg code
BRLA:LN
Ticker
BRLA/LON
Share dealing
Investors wishing to purchase more shares in the Company or sell all or part of their existing holding may do so through a
stockbroker. Most banks also offer this service. Alternatively, please go to
www.computershare.com/dealing/uk
for a range of
Dealing services made available by Computershare.
CREST
The Company’s shares may be held in CREST, an electronic system for uncertificated securities trading.
Private investors can continue to retain their share certificates and remain outside the CREST system. Private investors are
able to buy and sell their holdings in the same way as they did prior to the introduction of CREST, although there may be
differences in dealing charges.
Shareholder information
Section 5: Additional information
109
Electronic communications
We encourage you to play your part in reducing our impact on the environment and elect to be notified by email when your
shareholder communications become available online. This means you will receive timely, cost-effective and greener online
annual reports, half yearly financial reports and other relevant documentation.
Shareholders who opt for this service will receive an email from Computershare with a link to the relevant section of the
BlackRock website where the documents can be viewed and downloaded. Please submit your email address by visiting
investorcentre.co.uk/ecomms
. You will require your shareholder reference number which you will find on your share certificate
or tax voucher.
You will continue to receive a printed copy of these reports if you have elected to do so. Alternatively, if you have not submitted
your email address nor have elected to receive printed reports, we will write and let you know where you can view these reports
online.
Electronic proxy voting
Shareholders are able to submit their proxy votes electronically via Computershare’s internet site at
eproxyappointment.com
using a
unique identification PIN which will be provided with voting instructions and the Notice of Annual General Meeting.
CREST members who wish to appoint one or more proxies or give an instruction through the CREST electronic proxy appointment
service may do so by using the procedures described in the CREST manual. More details are set out in the notes on the Form of Proxy
and the Notice of Annual General Meeting. For shareholders who hold shares via platforms, information on how to vote can be
found here:
https://www.theaic.co.uk/availability-on-platforms
.
Nominee code
Where shares are held in a nominee company name, the Company undertakes:
•
to provide the nominee company with multiple copies of shareholder communications, so long as an indication of quantities
has been provided in advance; and
•
to allow investors holding shares through a nominee company to attend general meetings, provided the correct authority
from the nominee company is available.
Nominee companies are encouraged to provide the necessary authority to underlying shareholders to attend the Company’s
general meetings
Publication of NAV/portfolio analysis
The NAV per share of the Company is calculated daily, with details of the Company’s investments and performance being
published monthly.
The daily NAV and monthly information are released through the London Stock Exchange’s Regulatory News Service and are
available on the BlackRock website at
www.blackrock.com/uk/brla
. and through the Reuters News Service under the code
‘BLRKINDEX’, on page 8800 on Topic 3 (ICV terminals) and under “BLRK” on Bloomberg (monthly information only).
Online access
Other details about the Company are also available on the BlackRock website at
www.blackrock.com/uk/brla
and shareholders
can check details of their holdings on Computershare’s website at
investorcentre.co.uk
.
The financial statements and other literature are published on the BlackRock website. Visitors to the website need to be aware
that legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ
from legislation in their jurisdiction.
Shareholders can also manage their shareholding online by using Investor Centre, Computershare’s secure website, at
investorcentre.co.uk
.
110
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
To access Computershare’s website you will need your shareholder reference number (SRN) which can be found on
communications you have previously received from Computershare. Listed below are the most frequently used features of the
website.
•
Holding enquiry
– view balances, values, history, payments and reinvestments.
•
Payments enquiry
– view your dividends and other payment types.
•
Address change
– change your registered address.
•
Bank details update
– choose to receive your dividend payment directly into your bank account instead of by cheque.
•
Outstanding payments
– reissue payments using the online replacement service.
•
Downloadable forms
– including dividend mandates, stock transfer, dividend reinvestment and change of address forms.
Dividend tax allowance
The annual tax-free allowance on dividend income across an individual’s entire share portfolio is £500. Above this amount,
individuals will pay tax on their dividend income at a rate dependent on their income tax bracket and personal circumstances.
The Company provides registered shareholders with a confirmation of the dividends paid and this should be included with
any other dividend income received when calculating and reporting total dividend income received. It is the shareholder’s
responsibility to include all dividend income when calculating any tax liability.
If you have any tax queries please contact a financial adviser.
Individual savings accounts (ISAs)
ISAs are a tax-efficient method of investment and the Company’s shares are eligible investments for inclusion in an ISA. In
the 2024/2025 and 2025/2026 tax years, investors will be able to invest up to £20,000 in Individual Savings Accounts (ISAs)
either as cash or shares.
Shareholder enquiries
The Company’s registrar is Computershare Investor Services PLC. Certain details relating to your holding can be checked
through the Computershare Investor Centre website. As a security check, specific information will need to be input accurately
to gain access to your account including your shareholder reference number, available from your share certificate, dividend
confirmation or other electronic communications received from Computershare. The address of the Computershare website
is
investorcentre.co.uk
. Alternatively, please contact the Registrar on 0370 707 1112. Changes of name or address must be
notified in writing to the Registrar at:
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Certain details relating to your holding can also be checked through the Computershare investor centre website. As a
security check, specific information needs to be input accurately to gain access to an individual’s account. This includes your
shareholder reference number, available from either your share certificate, Form of Proxy or dividend confirmation or other
electronic communications previously received from Computershare.
The address of the Computershare website is
investorcentre.co.uk
. Alternatively, please contact 0370 707 1112.
General enquiries
Enquiries about the Company should be directed to:
The Secretary
BlackRock Latin American Investment Trust plc
12 Throgmorton Avenue
London EC2N 2DL
Telephone: 020 7743 3000
Email:
cosec@blackrock.com
Shareholder information
continued
Section 5: Additional information
111
By type of holder
Holdings
%
Shares
%
Individuals
339
60.00
580,182
1.97
Bank or Nominees
199
35.22
28,603,583
97.13
Investment Trust
5
0.88
89,184
0.30
Insurance Company
0
0.00
0
0.00
Other Company
14
2.48
33,960
0.12
Pension Trust
1
0.18
1
0.00
Other Corporate Body
7
1.24
141,731
0.48
Total
565
100.00
29,448,641
100.00
The above excludes Treasury Shares of 2,181,662.
By size of holding
Holdings
%
Shares
%
1 - 1,000
252
44.60
98,831
0.34
1,001 - 5,000
152
26.90
364,996
1.24
5,001- 10,000
38
6.73
261,661
0.89
10,001 - 100,000
82
14.51
693,841
2.36
100,001 - 500,000
25
4.42
4,855,497
16.49
500,001 - 1,000,000
8
1.42
6,267,994
21.28
1,000,001 - 999,999,999
8
1.42
16,905,821
57.41
Total
565
100.00
29,448,641
100.00
The above excludes Treasury Shares of 2,181,662
By style of owner
1
Retail 54.6 %
Mutual Funds 19.0%
Pensions 15.3%
Charities 6.4%
Insurance 3.4%
Fund of Funds 0.6%
ETF 0.4%
Inv Trusts 0.3%
Trading 0.2%
2023
2024
Retail 55.7%
Mutual Funds 19.3%
Pensions 13.9%
Charities 6.5%
Insurance 3.4%
Fund of Funds 0.5%
ETF 0.4%
Trading 0.4%
Inv Trusts 0.0%
1
Source: Richard Davies Investor Relations.
Analysis of ordinary shareholders
at 31 December 2024
112
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Year ended
31 December
Net assets
attributable
to ordinary
shareholders
US$’000
Net asset
value per
ordinary
share
– debt at
fair value
cents
Ordinary
share price
cents
1
Discount
%
Revenue
Return per
ordinary
share
cents
Dividends
per
ordinary
share
cents
Effective
gearing
2
%
Ongoing
charges
3
%
2015
180,943
459.6
408.2
(11.2)
24.10
21.00
(3.1)
1.12
2016
221,730
563.2
486.5
(13.6)
17.89
15.00
2.1
1.20
2017
279,590
710.2
622.3
(12.4)
13.03
13.00
7.8
1.11
2018
255,245
650.2
557.2
(14.3)
15.13
23.55
9.8
1.03
2019
287,444
732.2
643.2
(12.2)
18.10
34.89
6.2
1.13
2020
234,151
596.4
552.9
(7.3)
14.86
23.06
7.4
1.14
2021
194,838
496.3
461.2
(7.1)
26.10
27.56
8.9
1.14
2022
148,111
503.0
457.1
(9.1)
41.48
38.87
6.8
1.13
2023
189,719
644.2
569.8
(11.5)
30.45
28.82
0.6
1.28
2024
115,962
393.8
348.2
(11.6)
23.40
24.70
4.8
1.23
1
Share price converted from Sterling at the exchange rate prevailing on 31 December.
2
Effective gearing is redeemable shares, loans, convertible bonds at par value (from 15 September 2009 to 16 October 2013),
overdrafts less cash and fixed interest stocks as a percentage of net assets.
3
Alternative Performance Measure, see Glossary on pages 118 to 123.
Ten year record
Section 5: Additional information
113
Registered Office
(Registered in England, No. 2479975)
12 Throgmorton Avenue
London EC2N 2DL
Investment Manager and Secretary
BlackRock Investment Management (UK) Limited
1,2
12 Throgmorton Avenue
London EC2N 2DL
Telephone: 020 7743 3000
Email:
cosec@blackrock.com
Alternative Investment Fund Manager
BlackRock Fund Managers Limited
1
12 Throgmorton Avenue
London EC2N 2DL
Telephone: 020 7743 3000
Depositary
The Bank of New York Mellon (International) Limited
1
160 Queen Victoria Street
London EC4V 4LA
Custodian and Banker
The Bank of New York Mellon (International) Limited
1
160 Queen Victoria Street
London EC4V 4LA
Registrar
Computershare Investor Services PLC
1
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0370 707 1112
Independent Auditor
Ernst & Young LLP
Chartered Accountants and Statutory Auditors
25 Churchill Place
London E14 5EY
Stockbrokers
Cavendish Securities plc
1
One Bartholomew Close
London EC1A 7BL
Solicitors
Norton Rose Fulbright LLP
3 More London Riverside
London SE1 2AQ
Management and other service providers
1
Authorised and regulated by the Financial Conduct Authority.
2
BIM (UK) Limited has delegated certain of its responsibilities and functions, including its discretionary management of the
Company’s portfolio, to the US based equity income investments’ team who are employed by BlackRock Investment Management
LLC (BIM LLC), a limited liability company incorporated in Delaware which is regulated by the US Securities and Exchange
Commission. The registered address of BIM LLC is 100 Bellevue Parkway, Wilmington, Delaware 19809, USA.
114
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Remuneration related disclosures in accordance with Article 22(2) of the AIFMD, Article 107
of the AIFMD Regulations and Section XIII of the ESMA Guidelines on sound remuneration
policies under the AIFMD
The below disclosures are made in respect of the remuneration policies of the BlackRock group (“BlackRock”), as they apply
to BlackRock Fund Managers Limited (the “Manager”). The disclosures are made in accordance with the provisions in the
UK implementing the Alternative Investment Fund Managers Directive (the “AIFMD”), the European Commission Delegated
Regulation supplementing the AIFMD (the “Delegated Regulation”) and the “Guidelines on sound remuneration policies under
the AIFMD” issued by the European Securities and Markets Authority.
The BlackRock AIFM Remuneration Policy (the “AIFM Remuneration Policy”) will apply to the EEA entities within the BlackRock
group authorised as a manager of alternative investment funds in accordance with the AIFMD, and will ensure compliance
with the requirements of Annex II of the AIFMD and to UK entities within the BlackRock group authorised as a manager of a UK
alternative investment fund in accordance with the UK version of the Directive.
The Manager has adopted the AIFM Remuneration Policy, a summary of which is set out below.
Quantitative Remuneration Disclosure
The Manager is required under the AIFMD to make quantitative disclosures of remuneration. These disclosures are made
in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures.
As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which
quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation
to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in
that same year. BlackRock bases its proportionality approach on a combination of factors that it is entitled to take into account
based on relevant guidelines.
Remuneration information at an individual AIF level is not readily available. Disclosures are provided in relation to: (a) the staff
of the Manager; (b) staff who are senior management; (c) staff who have the ability to materially affect the risk profile of the
Company; and (d) staff of companies to which portfolio management and risk management has been formally delegated.
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their
responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only
the portion of remuneration for those individuals’ services attributable to the Manager is included in the aggregate figures
disclosed.
Members of staff and senior management of the Manager typically provide both AIFMD and non-AIFMD related services
in respect of multiple funds, clients and functions of the Manager and across the broader BlackRock group. Conversely,
members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related
services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Manager. Therefore,
the figures disclosed are a sum of individuals’ portion of remuneration attributable to the Manager according to an objective
apportionment methodology which acknowledges the multiple-service nature of the Manager and the broader BlackRock
group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of the total remuneration awarded to the Manager’s staff in respect of the Manager’s financial year ended
31 December 2024 is US$102.45 million. This figure is comprised of fixed remuneration of US$37.20 million and variable
remuneration of US$65.24 million. There were a total of 4,206 beneficiaries of the remuneration described above.
The amount of the aggregate remuneration awarded by the Manager in respect of the Manager’s financial year ending
31 December 2024, to its senior management was US$14.31 million, and to other members of its staff whose actions
potentially have a material impact on the risk profile of the Manager or its funds was US$16.36 million. These figures relate to
the entire Manager and not to the Company.
AIFMD report on remuneration
(unaudited)
Section 5: Additional information
115
Leverage
The Company may employ leverage and borrow cash in accordance with its stated investment policy or investment strategy.
Consistent with its investment objectives and policy, the Company may utilise a variety of exchange traded and over-the-
counter (OTC) derivative instruments such as options, futures and forward currency transactions as part of its investment
policy.
The use of derivatives may expose the Company to a higher degree of risk. In particular, derivative contracts can be highly
volatile, and the amount of initial margin is generally small relative to the size of the contract so that transactions may be
leveraged in terms of market exposure. A relatively small market movement may have a potentially larger impact on derivatives
than on standard underlying bonds or equities. Leveraged derivative positions can therefore increase the Company’s volatility.
The use of borrowings and leverage has attendant risks and can, in certain circumstances, substantially increase the adverse
impact to which the Company’s investment portfolio may be subject.
For the purposes of this disclosure, leverage is any method by which the Company’s exposure is increased, whether through
borrowing cash or securities, or leverage embedded in contracts for difference or by any other means. The AIFMD requires
that each leverage ratio be expressed as the ratio between a Company’s exposure and its NAV, and prescribes two required
methodologies, the gross methodology and the commitment methodology (as set out in AIFMD Level 2 Implementation
Guidance), for calculating such exposure.
Using the methodologies prescribed under the AIFMD, the leverage of the Company is disclosed in the table below:
Commitment
leverage as at
31 December
2024
Gross leverage
as at
31 December
2024
Commitment
leverage as at
31 December
2023
Gross leverage
as at
31 December
2023
Leverage ratio
1.09
1.05
1.01
1.00
Other risk disclosures
The financial risk disclosures relating to risk framework and liquidity risk are set out in note 16 of the Notes to the Financial
Statements on pages 97 to 104.
Pre investment disclosures
The AIFMD requires certain information to be made available to investors in AIFs before they invest and requires that material
changes to this information be disclosed in the annual report of each AIF. An Investor Disclosure Document, which sets out
information on the Company’s investment strategy and policies, leverage, risk, liquidity, administration, management, fees,
conflicts of interest and other shareholder information is available on the website at www.blackrock.com/uk/brla.
There have been no material changes (other than those reflected in these financial statements) to this information requiring
disclosure. Any information requiring immediate disclosure pursuant to the AIFMD will be disclosed to the London Stock
Exchange through a primary information provider.
GRAHAM VENABLES
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
28 March 2025
Other AIMFD disclosures
(unaudited)
116
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
The disclosures below are made in compliance with the requirements of Listing Rule 6.6.1.
6.6.1 (1) The Company has not capitalised any interest in the period under review.
6.6.1 (2) The Company has not published any unaudited financial information in a class 1 circular or prospectus or any profit
forecast or profit estimate.
6.6.1 (3) The Company does not have any long-term incentive schemes in operation.
6.6.1 (4) and (5) No Director of the Company has waived or agreed to waive any current or future emoluments from the
Company or any subsidiary undertaking.
6.6.1 (6), (7) and (8) The Company has not allotted any equity securities for cash in the period under review.
The Company is a stand-alone entity therefore Listing Rules 6.6.1 (7) and 6.6.1 (8) are not applicable.
6.6.1 (9) There were no contracts of significance subsisting during the period under review to which the Company is a party
and in which a Director of the Company is or was materially interested; or between the Company and a controlling shareholder.
6.6.1 (10) This provision is not applicable to the Company.
6.6.1 (11) and (12) There were no arrangements under which a shareholder has waived or agreed to waive any dividends or
future dividends.
6.6.1 (13) This provision is not applicable to the Company.
GRAHAM VENABLES
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
28 March 2025
Information to be disclosed in accordance
with Listing Rule 6.6.1
Section 5: Additional information
117
Depositary Report
118
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Alternative Performance Measure (APM)
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot
be directly derived from the financial statements. The Company’s APMs are set out below and are cross-referenced where
relevant to the financial inputs used to derive them as contained in other sections of the Annual Report.
American Depositary Receipt (ADR) and American Depositary Share (ADS)
ADRs and ADSs are certificates that represent shares in the relevant stock and are issued by a US bank. They are denominated
and pay dividends in US Dollars.
Annualised return with dividends reinvested*
The annualised total return of the Company and the benchmark is their average return earned each year over a given time
period, in this case over 48 months.
The inputs that have been used to calculate the annualised total return of the NAV and benchmark and outperformance of the
NAV over 48 months are shown in the following table.
Annualised NAV return with dividends reinvested
Page
31 December
2024
Closing NAV per share (cents)
94
393.78
(a)
Add back dividends (cents)
93
122.48
Effect of dividend reinvestment (cents)
(23.46)
Adjusted closing NAV (cents)
492.80
(a)
NAV per share as at 31 December 2020 (cents)
596.42
(b)
Cumulative NAV return over 48 months (c = ((a - b)/b)) (%)
(17.4)
(c)
Number of months in period
48
(d)
Annualised NAV return with dividends reinvested (e = ((1 + c) ^ (12/d))-1) (%)
(4.7)
(e)
Annualised benchmark return with dividends reinvested
31 December
2024
Closing benchmark
470.60
(f)
Opening benchmark as at 31 December 2020
481.16
(g)
Cumulative benchmark return over 48 months (h = ((f -g)/g)) (%)
(2.2)
(h)
Annualised benchmark return with dividends reinvested (j = ((1 + h) ^ (12/d))-1) (%)
(0.6)
(j)
Annualised NAV underperformance
31 December
2024
Annualised NAV return (%)
(4.7)
(e)
Annualised benchmark return (%)
(0.6)
(j)
NAV underperformance (k = e - j) (%)
(4.1)
(k)
Benchmark
The Company’s benchmark index, used for performance comparative purposes is the MSCI EM Latin America Index (Net
Return) with dividends reinvested.
Benchmark outperformance/underperformance is measured by comparing the Company’s net asset value (NAV) total return,
with the performance of the benchmark index with dividends reinvested.
As at 31 December 2024, the Company’s NAV return in US Dollar terms with dividends reinvested was -35.7% and the net
return of the benchmark index with dividends reinvested was -26.4%, therefore the Company’s underperformance of the
benchmark index was 9.3%.
Glossary
* Alternative Performance Measure.
Section 5: Additional information
119
Closed-end company
An investment trust works along the same lines as a unit trust, in that it pools money from investors which is then managed
on a collective basis. The main difference is that an investment trust is a company listed on the Stock Exchange and, in most
cases, trading takes place in shares which have already been issued, rather than through the creation or redemption of units.
As the number of shares which can be issued or cancelled at any one time is limited, and requires the approval of existing
shareholders, investment trusts are known as closed-end funds or companies. This means that investment trusts are not
subject to the same liquidity constraints as open ended funds and can therefore invest in less liquid investments.
Definition of Adjusted Capital and Reserves
As noted on page 32, the Company’s Articles limit borrowing to 100% of Adjusted Capital and Reserves. Adjusted Capital and
Reserves is defined for these purposes as follows:
A sum equal to the aggregate from time to time of:
(i)
the amount paid up (or credited as or deemed to be paid up) on the issued share capital of the Company; and
(ii) the amount standing to the credit of the capital and revenue reserves of the Company (including without limitation
any share premium account or capital redemption reserve) after adding thereto or deducting therefrom any balance
outstanding to the credit or debit of the profit and loss account of the Company;
based on a consolidation of the then latest audited balance sheet of the Company (or until there shall have been a first audited
balance sheet of the Company, such pro-forma balance sheet of the Company as shall have been included in a prospectus
delivered to the Registrar of Companies in accordance with the Companies Acts) after excluding reserves and any balances on
profit and loss account of companies other than members of the Company and after:
•
making such adjustments as may be appropriate in respect of any variation in the amount of the paid up share capital
or any such capital reserves subsequent to the relevant balance sheet date; and so that for the purpose of making such
adjustments, if any issue or proposed issue of shares by the Company for cash has been underwritten, then such shares
shall be deemed to have been issued and the amount (including the premium) of the subscription moneys payable
in respect thereof (not being moneys payable later than six months after the date of allotment) shall to the extent so
underwritten, be deemed to have been paid up on the date when the issue of such shares was underwritten (or, if such
underwriting was conditional, the date on which it became unconditional);
•
making such adjustments as may be appropriate in respect of any dividends or other distributions declared,
recommended, paid or made by the Company (otherwise than attributable directly or indirectly to the Company) out of
profits earned up to and including the date of the latest audited balance sheet of the Company or its subsidiaries (as the
case may be) to the extent that such distribution is not provided for in such balance sheet;
•
making such adjustments as may be appropriate in respect of any variation in the interests of the Company in its
subsidiaries (where relevant) since the date of the latest audited balance sheet of the Company;
•
if the calculation is required for the purposes of or in connection with a transaction under or in connection with which any
company is to become or cease to be a subsidiary, making such adjustments as would be appropriate if such transaction
had been carried into effect;
•
excluding minority interests in subsidiaries;
•
excluding any amount for goodwill or other intangible asset (not being an amount representing part of the cost of an
acquisition of shares or other property) incorporated as an asset in the audited balance sheet;
•
making such other adjustments (if any) as the Auditor considers appropriate.
* Alternative Performance Measure.
120
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Discount and premium*
Investment trust shares can frequently trade at a discount to NAV. This occurs when the share price (based on the mid-
market share price) is less than the NAV and investors may therefore buy shares at less than the value attributable to them
by reference to the underlying assets. The discount is the difference between the share price and the NAV, expressed as a
percentage of the NAV.
As at 31 December 2024, the share price was 348.17 cents (2023: 569.84 cents) and the audited NAV per share was
393.78 cents (2023: 644.24 cents), therefore giving a discount of 11.6% (2023: 11.5% ) (please see note 9 of the Financial
Statements for the audited inputs to the calculations).
The average discount over three years, calculated using the Company’s daily cum income NAV and share price was 11.3%.
A premium occurs when the share price (based on the mid-market share price) is more than the NAV and investors would
therefore be paying more than the value attributable to the shares by reference to the underlying assets. For example, if the
share price was 370 cents and the NAV was 365 cents, the premium would be 1.4%.
Discounts and premiums are mainly the consequence of supply and demand for the shares on the stock market.
Gearing and borrowings*
Investment companies can borrow to purchase additional investments. This is called ‘gearing’. It allows investment companies
to take advantage of a long-term view on a sector or to take advantage of a favourable situation or a particularly attractive
stock without having to sell existing investments.
Gearing works by magnifying a company’s performance. If a company ‘gears up’ and then markets rise and returns on the
investments outstrip the costs of borrowing, the overall returns to investors will be even greater. But if markets fall and the
performance of the assets in the portfolio is poor, then losses suffered by the investor will also be magnified.
The Company may achieve gearing through borrowings or the effect of gearing through an appropriate balance of equity
capital and borrowings.
Gearing is calculated in line with AIC guidelines and represents net gearing. This is defined as total assets of the Company less
current liabilities (excluding bank overdrafts), less any cash or cash equivalents held minus total shareholders’ funds, divided
by total shareholders’ funds. Cash and cash equivalents are defined by the AIC as net current assets or net current liabilities
(as relevant). To the extent that the Company has net current liabilities, the net current liabilities total is added back to the total
assets of the Company to calculate the numerator in this equation. The calculation and the various inputs are set out in the
following table.
Net gearing calculation
Page
31 December
2024
US$’000
31 December
2023
US$’000
Net assets
85
115,962
189,719
(a)
Borrowings
85
6,769
2,658
(b)
Total assets (a + b)
122,731
192,377
(c)
Current assets
1
85
1,958
2,409
(d)
Current liabilities (excluding borrowings)
85
(764)
(883)
(e)
Net current assets (d + e)
1,194
1,526
(f)
Net gearing figure (g = (c - f)/a) (%)
104.8
100.6
(g)
1
Includes cash at bank.
The audited inputs for this calculation can be found in the Balance Sheet on page 85.
The Company’s average gearing for the year, based on month end gearing figures calculated in accordance with AIC guidelines
was 7.5%.
* Alternative Performance Measure.
Glossary
continued
Section 5: Additional information
121
Leverage
Leverage is defined in the AIFM Directive as ‘any method by which the AIFM increases the exposure of an AIF it manages
whether through borrowing of cash or securities, or leverage embedded in derivative positions or by any other means’.
Leverage is measured in terms of ‘exposure’ and is expressed as a ratio of net asset value:
Leverage ratio
=
Total assets
Net assets
The AIFMD sets out two methodologies for calculating exposure. These are the Gross Method and the Commitment Method.
The treatment of cash and cash equivalent balances in terms of calculating what constitutes an ‘exposure’ under AIFMD differs
for these two methods. The definitions for calculating the Gross Method exposures require that “the value of any cash and cash
equivalents which are highly liquid investments held in the base currency of the AIF, that are readily convertible to a known
amount of cash, are subject to an insignificant risk of change in value and provide a return no greater than the rate of a three-
month high quality government bond” should be excluded from exposure calculations.
NAV and share price return (with dividends reinvested)*
Performance statistics enable the investor to make performance comparisons between investment trusts with different
dividend policies. The performance measures the combined effect of any dividends paid, together with the rise or fall in the
share price or NAV. This is calculated by the movement in the share price or NAV plus the dividends paid by the Company
assuming these are reinvested in the Company at the prevailing NAV/share price (please see note 9 of the Financial
Statements for the audited inputs to the calculations).
NAV performance (US Dollar)
Page
31 December
2024
31 December
2023
Closing NAV per share (cents)
94
393.78
644.24
Add back quarterly dividends (cents)
93
27.83
40.06
Effect of dividend reinvestment (cents)
(7.56)
8.92
Adjusted closing NAV (cents)
414.05
693.22
(a)
Opening NAV per share (cents)
94
644.24
502.95
(b)
NAV total return
(c = ((a - b)/b)) (%)
(35.7)
37.8
(c)
Share price performance (US Dollar)
Page
31 December
2024
31 December
2023
Closing share price (cents)
1
94
348.17
569.84
Add back quarterly dividends (cents)
93
27.83
40.06
Effect of dividend reinvestment (cents)
(7.41)
8.36
Adjusted closing share price (cents)
368.59
618.26
(a)
Opening share price (cents)
1
94
569.84
457.10
(b)
Share price total return
(c = ((a - b)/b)) (%)
(35.3)
35.3
(c)
1
Based on an exchange rate of US$1.25 to £1 at 31 December 2024 and US$1.27 to £1 at 31 December 2023.
Share price performance (Sterling)
Page
31 December
2024
31 December
2023
Closing share price (pence)
94
278.00
447.00
Add back quarterly dividends (pence)
93
21.87
32.20
Effect of dividend reinvestment (pence)
(5.49)
5.63
Adjusted closing share price (pence)
294.38
484.83
(a)
Opening share price (pence)
94
447.00
380.00
(b)
Share price total return
(c = ((a - b)/b)) (%)
(34.1)
27.6
(c)
* Alternative Performance Measure.
122
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Net asset value per share (Cum income NAV)
This is the value of the Company’s assets attributable to one ordinary share. Cum income NAV includes all current year income,
less the value of any dividends paid in respect of the period together with the value of any dividends which have been declared
and marked ex dividend but not yet paid. It is calculated by dividing “total shareholders’ funds” by the total number of ordinary
shares in issue (excluding treasury shares).
For example, as at 31 December 2024 equity shareholders’ funds were worth US$115,962,000 (2023: US$189,719,000) and
there were 29,448,641 (2023: 29,448,641) ordinary shares in issue; the NAV was therefore 393.78 cents per share (2023:
644.24 cents) (please see note 9 of the Notes to the Financial Statements for the audited inputs to the calculations).
Equity shareholders’ funds are calculated by deducting from the Company’s total assets, its current and long-term liabilities
and any provision for liabilities and charges.
Net asset value per share (capital only NAV)*
The capital only NAV is a popular point of reference when comparing a range of investment trusts. This NAV focuses on the
value of the Company’s assets disregarding the current period revenue income, on the basis that most trusts will distribute
substantially all of their income in any financial period. It is also the measure adopted by the Association of Investment
Companies for preparation of statistical data. It is calculated by dividing “total shareholders’ funds” (excluding current period
revenue) by the total number of ordinary shares in issue (excluding treasury shares).
As at 31 December 2024, equity shareholders’ funds less the current year revenue return (after interim dividends paid from
current year revenue) amounted to US$114,896,000 (2023:
US$186,868,000) and there were 29,448,641 (2023: 29,448,641)
ordinary shares in issue (excluding treasury shares); therefore the capital only NAV was 390.16 cents per share
(2023: 634.56 cents).
Equity shareholders’ funds (excluding current period revenue) of US$114,896,000 (2023: US$186,868,000) are calculated by
deducting from the Company’s net assets US$115,962,000 (2023: US$189,719,000) its current period revenue US$6,890,000
(2023: US$8,967,000) and adding back the interim dividends paid from revenue US$5,824,000 (2023: US$6,116,000).
Ongoing charges ratio*
Ongoing charges (%)
=
Annualised ongoing charges
Average undiluted net asset value
in the period
Ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or
revenue, and which relate to the operation of the investment company as a collective fund.
As recommended by the AIC in its guidance, ongoing charges are the Company’s annualised revenue and capital expenses
(excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items) expressed as a percentage of the average daily net assets of the Company
during the year.
The inputs that have been used to calculate the ongoing charges percentage are set out in the following table.
Ongoing charges calculation
Page
31 December
2024
US$’000
31 December
2023
US$’000
Management fee
90
1,164
1,358
Other operating expenses
91
724
730
Total management fee and other operating expenses
1,888
2,088
(a)
Average daily net assets in the year
153,972
163,209
(b)
Ongoing charges (c = a/b) (%)
1.23
1.28
(c)
1
Excluding prior year expenses written back of US$14,000 (2023: US$6,000) and non-recurring expenses of US$35,000 (2023: US$nil).
Glossary
continued
Section 5: Additional information
123
Quoted securities and unquoted securities
Quoted securities are securities that trade on an exchange for which there is a publicly quoted price. Unquoted securities are
financial securities that do not trade on an exchange and for which there is not a publicly quoted price.
Revenue profit and revenue reserves
Revenue profit is the net revenue income earned after deduction of fees and expenses allocated to the revenue account and
taxation suffered by the Company. The revenue reserve is the undistributed income that the Company keeps as reserves.
Investment trusts do not have to distribute all the income they generate, after expenses. They may retain up to 15% of revenue
generated which will be held in a revenue reserve. This reserve can be used at a later date to supplement dividend payments to
shareholders.
Treasury shares
Treasury shares are shares that a company keeps in its own treasury which are not currently issued to the public. These
shares do not pay dividends, have no voting rights and are not included in a company’s total issued share capital amount for
calculating percentage ownership. Treasury stock may have come from a repurchase or buy back from shareholders, or it may
never have been issued to the public in the first place. Treasury shares may be reissued from treasury to the public to meet
demand for a company’s shares in certain circumstances.
Yield*
The yield is the amount of cash (in percentage terms) that is returned to the owners of the security, in the form of interest or
dividends received from it. Normally, it includes only the income physically produced by the portfolio and differs from the total
return calculation, which includes capital growth.
Page
31 December
2024
31 December
2023
Quarterly and special dividends paid/payable (cents)
1
93
24.70
28.82
(a)
Ordinary share price (cents)
2
94
348.17
569.84
(b)
Yield (c = a/b) (%)
7.1
5.1
(c)
1
Comprising dividends declared/paid for the 12 months to 31 December.
2
Based on an exchange rate of US$1.25 to £1 at 31 December 2024 and US$1.27 to £1 at 31 December 2023.
126
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Notice is hereby given that the Annual General Meeting of BlackRock Latin American Investment Trust plc will be held at
the offices of BlackRock, 12 Throgmorton Avenue, London EC2N 2DL on 22 May 2025 at 12.00 noon for the purpose of
considering and, if thought fit, passing the following resolutions (which will be proposed in the case of resolutions 1 to 10, as
ordinary resolutions and, in the case of resolutions 11 and 12, as special resolutions).
More information in respect of the contribution of each Director to support their re-election is given in the Directors’ Report on
pages 53 and 54.
Ordinary business
1.
To receive the report of the Directors and the financial statements for the year ended 31 December 2024, together with the
report of the Auditor thereon.
2.
To approve the Directors’ Remuneration Report for the year ended 31 December 2024 (excluding the Directors’
Remuneration Policy as set out on pages 60 and 61).
3.
To approve the Company’s dividend policy to pay quarterly interim dividends equal to 1.25% of the Company’s NAV at
close of business on the last business day of March, June, September and December.
4.
To re-elect Carolan Dobson as a Director.
5.
To re-elect Craig Cleland as a Director.
6.
To re-elect Nigel Webber as a Director.
7.
To re-elect Laurie Meister as a Director.
8.
To re-appoint Ernst & Young LLP as Auditor of the Company until the conclusion of the next AGM of the Company.
9.
To authorise the Audit Committee to determine the Auditor’s remuneration.
Special business
Ordinary resolutions
10.
That, in substitution for all existing authorities, the Directors of the Company be and they are hereby generally and
unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the Act), to exercise all the powers of the
Company to allot shares in the Company and to grant rights to subscribe for or to convert any security into shares in the
Company (securities) provided that, unless renewed prior to that time, such authority shall be limited to the allotment of
shares and grant of rights in respect of shares with an aggregate nominal amount of up to US$147,243.20, (representing
5% of the aggregate nominal amount of the issued share capital of the Company at the date of this notice, excluding any
treasury shares), provided that this authority shall expire at the conclusion of the next AGM of the Company to be held
in 2026 but so that the Company may, before such expiry, make any offer or agreement which would or might require
securities to be allotted pursuant to any such offer or agreement as if the authority hereby conferred had not expired.
Special resolutions
11.
That, in substitution for all existing authorities and subject to the passing of resolution 10, the Directors of the Company
be and are hereby empowered pursuant to Section 570 and 573 of the Companies Act 2006 (the Act) to allot and make
offers of agreement to allot equity securities (as defined in Section 560 of the Act), and to sell equity securities held by the
Company as treasury shares (as defined in Section 724 of the Act) for cash pursuant to the authority granted by resolution
10 above, as if Section 561(1) of the Act did not apply to any such allotments and sales of equity securities, provided that
this power:
Notice of Annual General Meeting
Section 6: Notice of annual general meeting
127
(a)
shall expire at the conclusion of the next AGM of the Company to be held in 2026, except that the Company may before
such expiry make offers or agreements which would or might require equity securities to be allotted or sold after such
expiry and notwithstanding such expiry, the Directors may allot and sell securities in pursuance of such offers or
agreements;
(b) shall be limited to the allotment of equity securities and/or the sale of equity securities held in treasury for cash up to an
aggregate nominal amount of US$147,243.20 (representing 5% of the aggregate nominal amount of the issued share
capital of the Company (excluding any treasury shares) at the date of this notice); and (c) shall be limited to the allotment
of equity securities and/or the sale of equity securities held in treasury, at a price of not less than the net asset value per
share as close as practicable to the allotment or sale.
12. That, in substitution for the Company’s existing authority to make market purchases of ordinary shares of 10 cents in the
Company (Shares), the Company be and it is hereby authorised in accordance with Section 701 of the Companies Act
2006 (the Act) to make market purchases of Shares (within the meaning of Section 693 of the Act) provided that:
(a)
the maximum number of shares hereby authorised to be purchased is 4,414,351 ordinary shares (being the
equivalent of 14.99% of the Company’s issued ordinary share capital, excluding treasury shares, at the date of this
notice);
(b)
the minimum price (exclusive of expenses) which may be paid for a Share shall be 10 cents;
(c)
the maximum price (exclusive of expenses) which may be paid for a Share shall be the higher of; (i) 5% above the
average of the market values of a Share for the five business days immediately preceding the date of purchase as
derived from the Daily Official List of the London Stock Exchange; and (ii) the higher of the price quoted for (a) the
last independent trade of, and (b) the highest current independent bid for, any number of Shares on the trading venue
where the purchase is carried out; and
(d)
unless renewed prior to such time, the authority hereby conferred shall expire at the conclusion of the next AGM of
the Company to be held in 2026 save that the Company may, prior to such expiry, enter into a contract to purchase
Shares which will or may be completed or executed wholly or partly after such expiry.
All Shares purchased pursuant to the above authority shall be either:
(i)
held, sold, transferred or otherwise dealt with as treasury shares in accordance with the provisions of the Act; or
(ii)
cancelled immediately upon completion of the purchase.
By order of the Board
GRAHAM VENABLES
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
28 March 2025
Registered Office:
12 Throgmorton Avenue
London EC2N 2DL
128
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
Notes:
1.
A member entitled to attend and vote at the meeting convened by the above Notice is also entitled to appoint one or more proxies
to exercise all or any of the rights of the member to attend, speak and vote instead of him/her. A proxy need not be a member of the
Company. If a member appoints more than one proxy to attend the meeting, each proxy must be appointed to exercise the rights
attached to a different share or shares held by the member.
2.
To appoint a proxy you may use the form of proxy enclosed with this Annual Report. To be valid, the form of proxy, together with
the power of attorney or other authority (if any) under which it is signed or a notarially certified or office copy of the same, must be
completed and returned to the office of the Company’s registrar in accordance with the instructions printed thereon as soon as
possible and in any event by not later than 12.00 noon on 20 May 2025
(being 48 hours before the time of the meeting excluding
Saturdays, Sundays and Bank Holidays). Alternatively, you can vote or appoint a proxy electronically by visiting eproxyappointment.
com. You will be asked to enter the Control Number, the Shareholder Reference Number and PIN which are printed on the form of
proxy. The latest time for the submission of proxy votes electronically is 12.00 noon on 20 May 2025 (being 48 hours before the
time of the meeting excluding Saturdays, Sundays and Bank Holidays).
3.
Proxymity Voting – if you are an institutional investor you may also be able to appoint a proxy electronically via the Proxymity
platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding
Proxymity, please go to
www.proxymity.io
. Your proxy must be lodged by 12.00 noon on 20 May 2025 in order to be considered
valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s associated terms and conditions.
It is important that you read these carefully as you will be bound by them and they will govern the electronic appointment of your
proxy.
4.
Completion of the form of proxy will not prevent you from attending the meeting and voting in person. If you have appointed a
proxy and attend the meeting in person, your proxy appointment will be automatically terminated.
5.
Any person receiving a copy of this Notice as a person nominated by a member to enjoy information rights under Section 146 of
the Companies Act 2006 (a Nominated Person) should note that the provisions in notes 1 to 3 above concerning the appointment
of a proxy or proxies to attend the meeting in place of a member, do not apply to a Nominated Person as only shareholders have
the right to appoint a proxy. However, a Nominated Person may have a right under an agreement between the Nominated Person
and the member by whom he or she was nominated to be appointed, or to have someone else appointed, as proxy for the meeting.
If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may have a right under such
agreement to give instructions to the member as to the exercise of voting rights at the meeting.
6.
Nominated Persons should also remember that their main point of contact in terms of their investment in the Company remains
the member who nominated the Nominated Person to enjoy the information rights (or perhaps the custodian or broker who
administers the investment on their behalf). Nominated Persons should continue to contact that member, custodian or broker
(and not the Company) regarding any changes or queries relating to the Nominated Person’s personal details and interest in the
Company (including any administrative matter). The only exception to this is where the Company expressly requests a response
from the Nominated Person.
7.
Only shareholders registered in the register of members of the Company by not later than close of business two business days
prior to the date fixed for the meeting shall be entitled to attend and vote at the meeting in respect of the number of shares
registered in their name at such time. If the meeting is adjourned, the time by which a person must be entered on the register of
members of the Company in order to have the right to attend and vote at the adjourned meeting is close of business two business
days prior to the date of adjournment. Changes to the register of members after the relevant times shall be disregarded in
determining the rights of any person to attend and vote at the meeting.
8.
In the case of joint holders, the vote of the senior holder who tenders a vote whether in person or by proxy shall be accepted to the
exclusion of the votes of the other joint holders and, for this purpose, seniority will be determined by the order in which the names
stand in the register of members of the Company in respect of the relevant joint holding.
9.
Shareholders who hold their shares electronically may submit their votes through CREST, by submitting the appropriate and
authenticated CREST message so as to be received by the Company’s registrar by 12.00 noon on 20 May 2025 (being 48 hours
before the time of the meeting excluding Saturdays, Sundays and Bank Holidays). Instructions on how to vote through CREST can
be found by accessing the following website:
euroclear.com/CREST
. Shareholders are advised that CREST and the internet are the
only methods by which completed proxies can be submitted electronically.
10. If you are a CREST system user (including a CREST personal member) you can appoint one or more proxies or give an instruction
to a proxy by having an appropriate CREST message transmitted. To appoint one or more proxies or to give an instruction to a
proxy (whether previously appointed or otherwise) via the CREST system, CREST messages must be received by Computershare
(ID number 3RA50) by 12.00 noon on 20 May 2025 (being 48 hours before the time of the meeting excluding Saturdays, Sundays
and Bank Holidays). For this purpose, the time of receipt will be taken to be the time (as determined by the timestamp generated
by the CREST system) from which Computershare is able to retrieve the message. CREST personal members or other CREST
sponsored members should contact their CREST sponsor for assistance with appointing proxies via CREST. For further information
on CREST procedures, limitations and system timings please refer to the CREST manual. The Company may treat as invalid a proxy
appointment sent by CREST in the circumstances set out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
Notice of Annual General Meeting
continued
Section 6: Notice of annual general meeting
129
11. If the Chair, as a result of any proxy appointments, is given discretion as to how the votes subject of those proxies are cast and the
voting rights in respect of those discretionary proxies, when added to the interest in the Company’s securities already held by the
Chair, result in the Chair holding such number of voting rights that he has a notifiable obligation under the Disclosure Guidance
and Transparency Rules, the Chair will make the necessary notifications to the Company and the Financial Conduct Authority. As a
result, any member holding 3% or more of the voting rights in the Company, who grants the Chair a discretionary proxy in respect
of some or all of those voting rights and so would otherwise have a notification obligation under the Disclosure Guidance and
Transparency Rules, need not make a separate notification to the Company and the Financial Conduct Authority.
12. Any question relevant to the business of the meeting may be asked at the meeting by anyone permitted to speak at the meeting.
A shareholder may alternatively submit a question in advance by a letter addressed to the Company Secretary at the Company’s
registered office. Under Section 319A of the Companies Act 2006, the Company must answer any question a shareholder asks
relating to the business being dealt with at the meeting, unless; (i) answering the question would interfere unduly with the
preparation for the meeting or involve the disclosure of confidential information; (ii) the answer had already been given on a
website in the form of an answer to a question; or (iii) it is undesirable in the interests of the Company or the good order of the
meeting that the question be answered.
13. Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of its
powers as a member provided that, if it is appointing more than one corporate representative, it does not do so in relation to the
same shares. It is therefore no longer necessary to nominate a designated corporate representative.
Under Section 527 of the Companies Act 2006 (the Act), members meeting the threshold requirements set out in that section have
the right to require the Company to publish on a website a statement setting out any matter relating to:
(i)
the audit of the Company’s financial statements (including the Auditor’s report and the conduct of the audit) that are to be
laid before the meeting; or
(ii)
any circumstance connected with an auditor of the Company ceasing to hold office since the previous meeting at which
annual reports and financial statements were laid in accordance with Section 437 of the Act.
14. The Company may not require the members requesting any such website publication to pay its expenses in complying with
Section 527 or 528 of the Act. Where the Company is required to place a statement on a website under Section 527 of the Act,
it must forward the statement to the Company’s Auditor not later than the time when it makes the statement available on that
website. The business which may be dealt with at the meeting includes any statement that the Company has been required under
Section 527 of the Act to publish on a website.
15. Under Section 338 and 338A of the Act, members meeting the threshold requirements in those sections have the right to require
the Company:
(i)
to give, to members of the Company entitled to receive notice of the meeting, notice of a resolution which may properly be
moved and is intended to be moved at the meeting, and/or
(ii)
to include in the business to be dealt with at the meeting any matter (other than a proposed resolution) which may be
properly included in the business.
A resolution may properly be moved or a matter may properly be included in the business unless:
(a)
(in the case of a resolution only) it would, if passed, be ineffective (whether by reason of inconsistency with any enactment or
the Company’s constitution or otherwise);
(b)
it is defamatory of any person; or
(c)
it is frivolous or vexatious.
Such a request may be in hard copy form or in electronic form, and must identify the resolution of which notice is to be given or the
matter to be included in the business, must be authorised by the person or persons making it, must be received by the Company
not later than 10 April 2025, being the date six clear weeks before the meeting and (in the case of a matter to be included in the
business only) must be accompanied by a statement setting out the grounds for the request.
16. Further information regarding the meeting which the Company is required by Section 311A of the Act to publish on a website in
advance of the meeting (including this Notice), can be accessed at
www.blackrock.com/uk/brla
.
17. As at the date of this report, the Company’s issued share capital comprised 29,448,641 ordinary shares of 10 cents each, excluding
shares held in treasury. Each ordinary share carries the right to one vote and therefore the total number of voting rights in the
Company at the date of this report is 29,448,641.
18. No service contracts exist between the Company and any of the Directors, who hold office in accordance with letters of
appointment and the Articles of Association.
Be ScamSmart
Investment scams are designed
to look like genuine investments
Spot the warning signs
Have you been:
•
contacted out of the blue
•
promised tempting returns and told the investment is safe
•
called repeatedly, or
•
told the offer is only available for a limited time?
If so, you might have been contacted by fraudsters.
Avoid investment fraud
Reject cold calls
Check the FCA Warning List
Get impartial advice
you hand over any money. Seek advice from someone
Report a scam
Find out more at
www.fca.org.uk/scamsmart
1
2
3
Remember: if it sounds too good to
be true, it probably is!
The FCA Warning List is a list of firms and individuals we
know are operating without our authorisation.
If you’ve received unsolicited contact about an investment
opportunity, chances are it’s a high risk investment or a
scam. You should treat the call with extreme caution.
The safest thing to do is to hang up.
If you suspect that you have been approached by
fraudsters please tell the FCA using the reporting form at
www.fca.org.uk/consumers
. You can also call the
FCA Consumer Helpline on
0800 111 6768
If you have lost money to investment fraud, you should
report it to Action Fraud on 0300 123 2040 or online at
www.actionfraud.police.uk
SGN001
Share fraud warning
130
BlackRock Latin American Investment Trust plc
l
Annual Report and Financial Statements 31 December 2024
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