Final Results

BlackRock Latin American Investment Trust plc

(Legal Entity Identifier: UK9OG5Q0CYUDFGRX4151)

Information disclosed in accordance with Article 5 Transparency Directive, DTR 4.1

Annual Results Announcement for the year ended 31 December 2024

Performance record

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 contained within the annual report.

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.

Chair’s Statement

Market OverviewHistorically 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.

PerformanceOver 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 below.

GearingThe 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 dividendsTotal 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.

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

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 InvestmentAs 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 contained within the annual report.

Discount management and new discount control mechanismThe 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%.

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 MeetingThe 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.

OutlookThe 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 DOBSONChair28 March 2025

Investment Manager’s Report

Market overviewFollowing 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 Dollar 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.

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 positioningThe 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 America 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 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 abovementioned 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.

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.

Outlook2024 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 BRINKMANNBLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED28 March 2025

Portfolio

Ten largest investments as at 31 December 2024

Together, the ten largest investments represented 52.0% of the Company’s portfolio as at 31 December 2024 (2023: 55.3%).

1 Vale (2023: 1st)Sector: MaterialsMarket value – American depositary share (ADS): US$9,687,000Market value – ordinary shares: US$1,512,000Share of investments: 9.2% (2023: 9.6%)

is one of the world’s largest mining groups, with other businesses 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: EnergyMarket value – American depositary receipt (ADR): US$4,357,000Market value – preference shares ADR: US$3,295,000Market value – ordinary shares: US$1,547,000Share 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: FinancialsMarket value – ordinary shares: US$8,284,000Share 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 StaplesMarket value – ordinary shares: US$7,176,000Share 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: MaterialsMarket value – ordinary shares: US$5,449,000Share 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.

6 B3 (2023: 5th)Sector: FinancialsMarket value – ordinary shares: US$4,847,000Share 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 CareMarket value – ordinary shares: US$4,642,000Share 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: FinancialsMarket value – ordinary shares: US$4,542,000Share 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: IndustrialsMarket value – ordinary shares: US$3,954,000Share 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 DiscretionaryMarket value – ordinary shares: US$3,905,000Share 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.

Portfolio of investments as at 31 December 2024

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 analysis as at 31 December 2024

Geographical weighting (gross market exposure) vs MSCI EM Latin America Index

Source: Blackrock and MSCI.

Sector and geographical allocations

Source: BlackRock.

Governance

Strategic Report

The Directors present the Strategic Report of the Company for the year ended 31 December 2024.

ObjectiveThe 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 policyStrategyThe 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 modelThe 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 contained within the annual report.

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 policyAs 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.

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 contained within the annual report). 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 processAn 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 controlThe 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 contained within the annual report.

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.

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.

Section 172 Statement: promoting the success of BlackRock Latin American Investment Trust plcThe 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.

StakeholdersShareholdersContinued 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 ManagerThe 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 providersIn 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 companiesPortfolio 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.

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 EngagementInvestment mandate and objectiveIssueThe 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.

EngagementThe 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 within the annual report.

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.

ImpactThe portfolio activities undertaken by the Manager, can be found in the Investment Manager’s Report above.

Dividend targetIssueA 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.

EngagementThe 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.

ImpactSince 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 managementIssueThe 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.

EngagementThe 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 contained within the annual report.

The Board monitors the tender trigger targets described on pages 32 and 33 of the annual report, on a regular basis in conjunction with the Manager. The Manager provides regular performance updates and detailed performance attribution.

ImpactThe 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%.

1 Alternative Performance Measures, see Glossary contained within the annual report.

Service levels of third party providersIssueThe 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.

EngagementThe 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.

ImpactAll 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 compositionIssueThe 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.

EngagementThe 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 within the annual report). 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 within the annual report if they wish to raise any issues.

ImpactAs 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 contained within the annual report. 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.

ShareholdersIssueContinued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy.

EngagementThe 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 within the annual report.

ImpactThe 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.

PerformanceDetails of the Company’s performance are set out in the Chair’s Statement above.

The Investment Manager’s Report above 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 analysisA detailed analysis of the investments and the sector and geographical allocations is provided within the annual report.

Results and dividendsThe results for the Company are set out in the Income Statement below. 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 below.

Details of this policy are also set out in the Chair’s Statement above.

NAV, share price and index performanceAt 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 contained within the annual report and the Chair’s Statement and Investment Manager’s Report above.

Details of the Company’s discount controlThe 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 contained within the annual report.

Further details setting out how the discount or premium at which the Company’s shares trade is calculated are included in the Glossary contained within the annual report.

Ongoing chargesThe 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 contained within the annual report.

Composition of shareholder registerThe 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 indicatorsAt 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 contained within the annual report.

1 Calculated in US Dollar terms with dividends reinvested.

2 Alternative Performance Measures, see Glossary contained within the annual report.

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 risksThe Company is exposed to a variety of risks and uncertainties and the key risks are set out below. 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.

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:

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.

CounterpartyPrincipal RiskPotential loss that the Company could incur if a counterparty is unable (or unwilling) to perform on its commitments.

Mitigation/ControlDue 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 performancePrincipal RiskReturns achieved are reliant primarily upon the performance of the portfolio. The Board is responsible for:

An inappropriate investment strategy may lead to:

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/ControlTo manage this risk the Board:

ESG analysis is integrated in the Manager’s investment process, as set out within the annual report. This is monitored by the Board.

Income/dividendPrincipal RiskThe 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/ControlThe 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 compliancePrincipal RiskThe 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/ControlThe 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.

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.

OperationalPrincipal RiskIn 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/ControlDue 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.

MarketPrincipal RiskMarket 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.

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/ControlThe 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.

FinancialPrincipal RiskThe Company’s investment activities expose it to a variety of financial risks that include interest rate, currency and liquidity risk.

Mitigation/ControlDetails of these risks are disclosed in note 16 to the financial statements contained within the annual report, together with a summary of the policies for managing these risks.

MarketingPrincipal RiskMarketing 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/ControlThe 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 statementIn 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.

In choosing this period for its assessment of the viability of the Company the Directors have considered the following matters:

The Directors have also reviewed the assumptions and considerations underpinning the Company’s existing going concern assertion which are based on:

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 prospectsThe 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 issuesAs 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 within the annual report.

Modern Slavery ActAs 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.

Directors, gender representation and employeesThe 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 contained within the annual report.

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:

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, along with the Investment Manager’s Report above and portfolio analysis 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 BOARDGRAHAM VENABLESFOR AND ON BEHALF OFBLACKROCK INVESTMENT MANAGEMENT (UK) LIMITEDCompany Secretary28 March 2025

Transactions with the AIFM and the Investment Manager

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 contained within the annual report.

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 below. 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.

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.

Related Party Disclosure

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 contained within the annual report. At 31 December 2024, an amount of US$18,000 (2023: US$17,000) was outstanding in respect of Directors’ fees.

The Board currently consists of four non-executive Directors, all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. For the year ended 31 December 2024, the Chairman received an annual fee of £52,800, the Chairman of the Audit Committee received an annual fee of £40,600 and each other Director received an annual fee of £36,100. This excludes expenses paid to each of the Directors which are set out in the Directors' Remuneration Report contained within the annual report and financial statements. For the year ending 31 December 2025, the Chairman will receive an annual fee of £53,700, the Chairman of the Audit Committee will receive an annual fee of £41,300 and each other Director received an annual fee of £36,800. 

All current members of the Board hold ordinary shares in the Company. Carolan Dobson holds 6,842 ordinary shares, Nigel Webber holds 5,000 ordinary shares, Craig Cleland holds 12,000 ordinary shares and Laurie Meister holds 2,915 ordinary shares.

Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements

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:

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 within the annual report, confirm to the best of their knowledge that:

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 contained within the annual report. 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 BOARDCAROLAN DOBSONChair28 March 2025

Financial statements

Income Statement for the year ended 31 December 2024