BlackRock Latin American Investment Trust Plc - Half-year Report
LEI: UK9OG5Q0CYUDFGRX4151
Information disclosed in accordance with Article 5 Transparency Directive and DTR 4.2
Half Yearly Financial Report for the six months ended
Performance record
As at As at
30 June 31 December
2025
2024
Net assets (US$’000)1 158,734 115,962
Net asset value per ordinary share (US$ cents) 539.02 393.78
Ordinary share price (mid-market) (US$ cents)2 479.62 348.17
Ordinary share price (mid-market) (pence) 350.00 278.00
Discount3 11.0% 11.6%
========= =========
For the For the
six months year
ended
ended 31 December
30 June
2025 2024
Performance (with dividends reinvested)
Net asset value per share (US$ cents)3 +40.4% -35.7%
Ordinary share price (mid-market) (US$ cents)2,3 +41.7% -35.3%
Ordinary share price (mid-market) (pence)3 +29.4% -34.1%
MSCI EM Latin America Index (net return, on a US Dollar +29 .9% -26.4%
basis)4
========= =========
For the six For the six
months ended months ended Change
30 June 2025 30 June 2024 %
Revenue
Net profit on ordinary
activities after taxation 3,142 3,786 -17.0
(US$’000)
Revenue earnings per ordinary 10.67 12.86 -17.0
share (US$ cents)
--------------- --------------- ---------------
Dividends per ordinary share
(US$ cents)
Quarter to 31 March 5.55 7.39 -24.9
Quarter to 30 June 6.74 6.13 +10.0
--------------- --------------- ---------------
Total dividends payable/paid 12.29 13.52 -9.1
(US$ cents)
========= ========= =========
1 The change in net assets reflects the portfolio movements during the period and dividends paid.
2 Based on an exchange rate of
3 Alternative Performance Measures, see Glossary contained within the Half Yearly Financial 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 overview
Latin American markets were some of the strongest equity markets over the six months ending
Performance
Investment outperformance of the index was extremely strong with the Company’s net asset value per share (NAV calculations in US Dollar terms with dividends reinvested) rising by 40.4% compared to the benchmark which gained 29.9%. This strong return caught investors attention and the share price rose by 41.7% (all in US Dollar terms with income reinvested). The biggest contributor to performance was the portfolio overweight in domestic
Further information on investment performance is given in the Investment Manager’s Report below.
Gearing
The Board’s view is that 105% of NAV is the neutral level of gearing over the longer term and that gearing should be used actively in an approximate range of plus or minus 10% around this as measured at the time that gearing is instigated. The Board is pleased to note that the Investment Managers have used gearing actively throughout the period with a high at 108.0% of NAV in
Dividends declared in respect of the year to
Dividend Pay date
Quarter to 30 September 2024 6.26 cents 8 November 2024
Quarter to 31 December 2024 4.92 cents 7 February 2025
Quarter to 31 March 2025 5.55 cents 15 May 2025
Quarter to 30 June 2025 6.74 cents 12 August 2025
---------------
Total 23.47 cents
=========
Revenue returns and dividends
Revenue return for the six months ended
The Company has declared interim dividends totalling
Discount management and discount control mechanism
The Board remains committed to taking appropriate action to ensure that the Company’s shares do not trade at a significant discount to their prevailing NAV and have sought to reduce discount volatility by offering shareholders a discount control mechanism covering the four years to
(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
(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 for the period from
The cum-income discount of the Company’s ordinary shares over the calculation period has averaged 11.2%.
For the current six month period under review the cum-income discount has ranged from 5.2% to 16.0%, ending the period under review on a discount of 11.0% at
The making of any tender offer pursuant to the above will be conditional upon the Company having the required shareholder authority or such shareholder authority being obtained, the Company having sufficient distributable reserves to effect the repurchase and, having regard to its continuing financial requirements, sufficient cash reserves to settle the relevant transactions with shareholders, and the Company’s continuing compliance with the Listing Rules and all other applicable laws and regulations. The Company may require a minimum level of participation in any such tender offer to be met, failing which the tender offer may be declared void.
The Company has not bought back any shares during the six month period ended
Portfolio management changes
As announced on
Outlook
Equity markets in the Latin American region saw a very strong start to 2025 but despite that, they remain attractively valued on both an absolute and relative basis.
Investing in
Chair
Investment Manager’s report
Market Overview
It has been an eventful first half of 2025. Amidst widespread trade disruptions, we witnessed increased geopolitical tensions across several regions, including ongoing fighting between
Yet, amid these global headlines, the Latin American region has quietly outperformed. Often overlooked, the region has bounced back sharply from its late 2024 lows, rising +29.9% in the first six months of 2025. The region has outperformed both Emerging and Developed Markets alike, which saw their indices rise +15.3% and +9.5%, respectively, making
Nearly all countries in the region posted positive returns. Regional heavyweight
Performance review and positioning
The Company significantly outperformed its benchmark over the six-month period ending
Our
The biggest contributor to relative returns was Brazilian real estate developer, Cyrela, which rose as much as 82.1% over the period. The stock performed well after delivering strong fourth quarter results in 2024. Supermarket chain Assai also rebounded, returning 130.1%. A collection of Brazilian retailers, which we added to during the sell-off last year, has been another significant contributor to performance. Lojas Renner, Azzas 2154, and Alpargatas all contributed to performance after delivering strong first quarter earnings. XP, the Brazilian investment management platform, also did well on the back of decent results. Another stock that did well was financial technology and software solutions provider StoneCo, up 101.3%. The stock rose alongside the Brazilian market and following news of a potential acquisition of their subsidiary Linx, by Brazilian software company Totvs.
Our exposure to precious metal stocks has also supported returns, as prices have surged with investors turning to the commodities amid heightened geopolitical tensions and growing political uncertainty in
On the flipside, Argentinian IT services firm Globant was the worst performer during the period. The stock pulled back following a poor set of earnings and weaker than expected guidance, which in our view was due in part to management extrapolating one-off weaknesses in the first four months of the year to financial year 2025. While more aggressive peer dynamics are driving pricing pressure, we continue to see attractive risk reward for the name. An underweight to Brazilian bank
Brazilian iron ore producer Vale was another detractor. The stock fell on the back of a quarter one production miss due to heavy rainfall. We maintain conviction as we see the potential for higher dividend yields and share buybacks supporting the stock.
In terms of portfolio changes, we have taken advantage of the strong performance in
Elsewhere, we took profits and exited miner MAG Silver. The company is being acquired by Pan American Silver and our investment case has largely played out. We also sold out of
We have also reduced the portfolio’s exposure to
As such,
Outlook
Although Latin American equities have performed strongly year-to-date, valuations remain attractive. In several countries, inflation has come in below expectations, interest rate expectations are falling, and earnings across multiple sectors are surpassing estimates – supporting our continued positive stance on the region.
We see interesting bottom-up opportunities particularly in
A potential positive for the market is the growing focus on Brazil’s 2026 presidential election. Local investors are increasingly backing Tarcísio de Freitas, the Governor of São Paulo, whose fiscally disciplined administration contrasts with concerns around President Lula’s policies. Expectations of a political shift, combined with attractive valuations, could in our view continue to support the market going forward.
The select tariffs introduced by the US on
For
As we have communicated to shareholders before, we believe investing in
AND
11
Portfolio analysis as at
Geographical weighting (gross market exposure) vs MSCI EM Latin America Index
% of net assets MSCI EM Latin America Index
Brazil 60.0 60.9
Mexico 31.7 27.0
Multi-country 3.0 0.0
Argentina 2.0 0.0
Chile 1.8 6.3
Colombia 0.0 1.6
Peru 0.0 4.2
Sources: BlackRock and MSCI.
Sector allocation (gross market exposure) vs MSCI EM Latin America Index
% of net assets MSCI EM Latin America Index
Financials 23.5 35.1
Materials 17.8 15.9
Consumer Staples 14.5 13.8
Industrials 13.1 10.3
Consumer Discretionary 11.7 1.6
Health Care 6.2 0.8
Energy 5.6 9.2
Real Estate 4.1 1.2
Information Technology 2.0 0.7
Communication Services 0.0 3.8
Utilities 0.0 7.7
Sources: BlackRock and MSCI.
Ten largest investments
Together, the ten largest investments represented 48.5% of the Company’s portfolio as at
1.
Vale (2024: 1st)
Sector: Materials
Market value – American depositary share (ADS):
Market value – ordinary shares:
Share of investments: 8.1% (2024: 9.2%)
is one of the world’s largest mining groups, with other business 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.
Grupo México (2024: 5th)
Sector: Materials
Market value – ordinary shares:
Share of investments: 5.9% (2024: 4.5%)
is a Mexican mining and transport conglomerate. The company engages in copper production, freight transportation and infrastructure businesses worldwide.
3.
Petrobrás (2024: 2nd)
Sector: Energy
Market value – American depositary receipt (ADR):
Market value – preference shares ADR:
Market value – ordinary shares:
Share of investments: 5.7% (2024: 7.6%)
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
4.
Walmart de México y Centroamérica (2024: 4th)
Sector: Consumer Staples
Market value – ordinary shares:
Share of investments: 4.8% (2024: 5.9%)
is also known as Walmex, it is the Mexican and Central American Walmart division.
5.
FEMSA (2024: 31st)
Sector: Consumer Staples
Market value – ordinary shares:
Market value – American depositary receipt (ADR):
Share of net assets: 4.4% (2024: 1.2%)
is a Mexican multinational company based in Monterrey. It operates Coca-Cola FEMSA, the world’s largest independent Coca-Cola bottler and owns the OXXO convenience store chain.
6.
Grupo Aeroportuario del Sureste (2024: 30th)
Sector: Industrials
Market value – ordinary shares:
Share of net assets: 4.3% (2024: 1.2%)
is a
7.
Grupo Financiero Banorte
(2024: 3rd)
Sector: Financials
Market value – ordinary shares:
Share of net assets: 4.0% (2024: 6.8%)
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.
8.
XP (2024: 8th)
Sector: Financials
Market value – ordinary shares:
Share of net assets: 4.0% (2024: 3.7%)
is a Brazilian investment management company that offers a range of financial products and services, including brokerage, asset management and wealth management solutions.
9.
B3 (2024: 6th)
Sector: Financials
Market value – ordinary shares:
Share of net assets: 3.7% (2024: 4.0%)
is a stock exchange located in
10.
Rede D’or Sao Luiz (2024: 7th)
Sector: Health Care
Market value – ordinary shares:
Share of net assets: 3.6% (2024: 3.8%)
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.
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
Portfolio of investments as at
Market
value % of
US$’000 investments
Brazil
Vale – ADS 10,991
} 8.1
Vale 1,651
Petrobrás – ADR 4,241
Petrobrás – preference shares ADR 3,220 } 5.7
Petrobrás 1,519
XP 6,256 4.0
B3 5,817 3.7
Rede D'or Sao Luiz 5,598 3.6
Nu Holdings 5,598 3.6
Lojas Renner 5,551 3.5
Rumo 5,193 3.3
Localiza Rent A Car 4,788 3.1
Itaú Unibanco – ADR 4,747 3.0
Hapvida Participacoes 4,278 2.7
StoneCo 3,678 2.4
Banco Bradesco – ADR 3,676 2.4
EZTEC Empreendimentos e Participacoes 3,633 2.3
Cyrela Brazil Realty 3,270 2.1
Alpargatas 3,175 2.0
Minerva Foods 3,052 2.0
Azza Consultancy Services 2,876 1.8
Sendas Distribuidora 2,464 1.6
--------------- ---------------
95,272 60.9
========= =========
Mexico
Grupo México 9,139 5.9
Walmart de México y Centroamérica 7,494 4.8
FEMSA 5,518
} 4.4
FEMSA – ADR 1,408
Grupo Aeroportuario del Sureste 6,735 4.3
Grupo Financiero Banorte 6,321 4.0
Corporación Inmobiliaria Vesta 4,297 2.8
PINFRA 4,061 2.6
Becle Sab De 3,172 2.0
Fibra Uno Administracion – REIT 2,230 1.4
--------------- ---------------
50,375 32.2
========= =========
Multi-Country
Ero Copper Corp 3,563 2.3
dLocal 1,218 0.8
--------------- ---------------
4,781 3.1
========= =========
Argentina
Globant 3,131 2.0
--------------- ---------------
3,131 2.0
========= =========
Chile
Sociedad Química Y Minera – ADR 2,855 1.8
--------------- ---------------
2,855 1.8
========= =========
Total investments 156,414 100.0
========= =========
All investments are in equity shares unless otherwise stated.
The total number of investments held at
Interim Management Report and Responsibility Statement
The Chair’s Statement and the Investment Manager’s Report above give details of the events which have occurred during the period and their impact on the financial statements.
Principal risks and uncertainties
The principal risks faced by the Company can be divided into various areas as follows:
-- Counterparty
-- Investment performance
-- Income/dividend
-- Legal and regulatory compliance
-- Operational
-- Market
-- Financial
-- Marketing
The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended
The Board and the Investment Manager continue to monitor investment performance in line with the Company’s investment objectives, and the operations of the Company and the publication of net asset values are continuing.
In the view of the Board, there have not been any changes to the fundamental nature of the principal risks and uncertainties since the previous report and these are equally applicable to the remaining six months of the financial year as they were to the six months under review.
Going concern
The Board is mindful of the risk that unforeseen or unprecedented events including (but not limited to) heightened geopolitical tensions such as the wars in
Related party disclosure and transactions with the Manager
The related party transactions with the Directors are set out in note 12 to the financial statements.
Directors’ responsibility statement
The Disclosure Guidance and Transparency Rules of the
The Directors confirm to the best of their knowledge that:
-- the condensed set of financial statements contained within the Half
Yearly Financial Report has been prepared in accordance with the
applicable UK Accounting Standard FRS 104 ‘Interim Financial Reporting’;
and
-- the Interim Management Report, together with the Chair’s Statement and
Investment Manager’s Report, include a fair review of the information
required by 4.2.7R and 4.2.8R of the FCA’s Disclosure Guidance and
Transparency Rules.
The Half Yearly Financial Report has not been audited or reviewed by the Company’s Auditors.
The Half Yearly Financial Report was approved by the Board on
FOR AND ON BEHALF OF THE BOARD
Income statement for the six months ended
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Gains/
(losses)
from
investments
held at – 43,172 43,172 – (44,039) (44,039) – (71,060) (71,060)
fair value
through
profit or
loss
Gains on
foreign – 88 88 – 46 46 – 22 22
exchange
Income from
investments
held at
fair value 3 3,943 70 4,013 4,674 – 4,674 8,598 – 8,598
through
profit or
loss
Other 3 37 – 37 13 – 13 23 – 23
income
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Total
income/ 3,980 43,330 47,310 4,687 (43,993) (39,306) 8,621 (71,038) (62,417)
(loss)
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment
management 4 (144) (431) (575) (158) (476) (634) (291) (873) (1,164)
fee
Other
operating 5 (393) (8) (401) (395) (4) (399) (745) (18) (763)
expenses
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Total
operating (537) (439) (976) (553) (480) (1,033) (1,036) (891) (1,927)
expenses
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/
(loss) on
ordinary
activities 3,443 42,891 46,334 4,134 (44,473) (40,339) 7,585 (71,929) (64,344)
before
finance
costs and
taxation
Finance (57) (171) (228) (83) (248) (331) (174) (522) (696)
costs
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Net profit/
(loss) on
ordinary 3,386 42,720 46,106 4,051 (44,721) (40,670) 7,411 (72,451) (65,040)
activities
before
taxation
Taxation (244) (7) (251) (265) – (265) (521) – (521)
charge
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Net profit/
(loss) on
ordinary 3,142 42,713 45,855 3,786 (44,721) (40,935) 6,890 (72,451) (65,561)
activities
after
taxation
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings/
(loss) per
ordinary 8 10.67 145.04 155.71 12.86 (151.86) (139.00) 23.40 (246.02) (222.62)
share (US$
cents)
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss account. The supplementary revenue and capital accounts are both prepared under guidance published by the
The net profit/(loss) on ordinary activities for the period disclosed above represents the Company’s total comprehensive income/(loss).
Statement of changes in equity for the six months ended
Called Share Capital Non-
up share premium redemption distributable Capital Revenue
capital account reserve reserve reserves reserve Total
Note US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
For the six
months ended
30 June 2025
(unaudited)
At 31 December 3,163 11,719 5,824 4,356 86,330 4,570 115,962
2024
Total
comprehensive
income:
Net profit for – – – – 42,713 3,142 45,855
the period
Transactions
with owners,
recorded
directly to
equity:
Dividends 6 – – – – – (3,083) (3,083)
paid1
-------------- -------------- -------------- -------------- -------------- -------------- --------------
At 30 June 3,163 11,719 5,824 4,356 129,043 4,629 158,734
2025
========= ========= ========= ========= ========= ========= =========
For the six
months ended
30 June 2024
(unaudited)
At 31 December 3,163 11,719 5,824 4,356 158,781 5,876 189,719
2023
Total
comprehensive
(loss)/income:
Net
(loss)/profit – – – – (44,721) 3,786 (40,935)
for the period
Transactions
with owners,
recorded
directly to
equity:
Dividends 6 – – – – – (4,547) (4,547)
paid2
-------------- -------------- -------------- -------------- -------------- -------------- --------------
At 30 June 3,163 11,719 5,824 4,356 114,060 5,115 144,237
2024
========= ========= ========= ========= ========= ========= =========
For the year
ended 31
December 2024
(audited)
At 31 December 3,163 11,719 5,824 4,356 158,781 5,876 189,719
2023
Total
comprehensive
(loss)/income:
Net
(loss)/profit – – – – (72,451) 6,890 (65,561)
for the year
Transactions
with owners,
recorded
directly to
equity:
Dividends 6 – – – – – (8,196) (8,196)
paid3
-------------- -------------- -------------- -------------- -------------- -------------- --------------
At 31 December 3,163 11,719 5,824 4,356 86,330 4,570 115,962
2024
========= ========= ========= ========= ========= ========= =========
1 Quarterly dividend of
2 Quarterly dividend of
3 Quarterly dividend of
For information on the Company’s distributable reserves, please refer to note 10 below.
Balance sheet as at
As at As at As at
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Notes US$’000 US$’000 US$’000
Fixed assets
Investments held at fair 156,414 160,817 121,561
value through profit or loss
-------------- -------------- --------------
Current assets
Debtors 781 1,336 1,320
Cash and cash equivalents 2,363 1,886 638
-------------- -------------- --------------
Total current assets 3,144 3,222 1,958
========= ========= =========
Creditors – amounts falling
due within one year
Cash and cash equivalents – – (18,560) (6,769)
bank overdraft
Other creditors (800) (1,218) (764)
-------------- -------------- --------------
Total current liabilities (800) (19,778) (7,533)
========= ========= =========
Net current assets/ 2,344 (16,556) (5,575)
(liabilities)
-------------- -------------- --------------
Total assets less current 158,758 144,261 115,986
liabilities
========= ========= =========
Creditors – amounts falling
due after more than one year
Non-equity redeemable shares 7 (24) (24) (24)
-------------- -------------- --------------
(24) (24) (24)
========= ========= =========
Net assets 158,734 144,237 115,962
========= ========= =========
Capital and reserves
Called up share capital 9 3,163 3,163 3,163
Share premium account 10 11,719 11,719 11,719
Capital redemption reserve 10 5,824 5,824 5,824
Non-distributable reserve 10 4,356 4,356 4,356
Capital reserves 10 129,043 114,060 86,330
Revenue reserve 10 4,629 5,115 4,570
-------------- -------------- --------------
Total shareholders’ funds 8 158,734 144,237 115,962
========= ========= =========
Net asset value per ordinary 8 539.02 489.79 393.78
share (US$ cents)
========= ========= =========
Statement of cash flows for the six months ended
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Operating activities
Net profit/(loss) on ordinary 46,106 (40,670) (65,040)
activities before taxation
Add back finance costs 228 331 696
(Gains)/losses on investments held
at fair value through profit or (43,172) 44,039 71,060
loss
Gains on foreign exchange (88) (46) (22)
Sales of investments held at fair 49,916 47,126 114,906
value through profit or loss
Purchase of investments held at (41,597) (61,107) (116,652)
fair value through profit or loss
Decrease in other debtors 539 799 815
Increase/(decrease) in other 36 335 (119)
creditors
Taxation on investment income (251) (265) (521)
-------------- -------------- --------------
Net cash generated/(used in) from 11,717 (9,458) 5,123
operating activities
========= ========= =========
Financing activities
Interest paid (228) (331) (696)
Dividends paid (3,083) (4,547) (8,196)
-------------- -------------- --------------
Net cash used in financing (3,311) (4,878) (8,892)
activities
========= ========= =========
Increase/(decrease) in cash and 8,406 (14,336) (3,769)
cash equivalents
Cash and cash equivalents at the (6,131) (2,384) (2,384)
beginning of the period/year
Effect of foreign exchange rate 88 46 22
changes
-------------- -------------- --------------
Cash and cash equivalents at the 2,363 (16,674) (6,131)
end of the period/year
========= ========= =========
Comprised of:
Cash at bank 2,363 1,886 638
Bank overdraft – (18,560) (6,769)
-------------- -------------- --------------
2,363 (16,674) (6,131)
========= ========= =========
1 Dividends and interest received in cash during the period amounted to
Notes to the financial statements for the six months ended
1.
Principal activity
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.
2.
Basis of preparation
The financial statements of the Company are prepared on a going concern basis in accordance with Financial Reporting Standard 104 Interim Financial Reporting (FRS 104) applicable in the
The accounting policies and estimation techniques applied for the condensed set of financial statements are as set out in the Company’s Annual Report and Financial Statements for the year ended
3. Income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Investment income:
Overseas dividends 3,825 4,464 8,132
Overseas REIT1 distributions 10 198 300
Overseas special dividends 108 12 166
-------------- -------------- --------------
Total investment income 3,943 4,674 8,598
========= ========= =========
Other income:
Deposit interest 37 13 23
-------------- -------------- --------------
Total other income 37 13 23
========= ========= =========
Total income 3,980 4,687 8,621
========= ========= =========
1 Real Estate Investment Trust.
Dividends and interest received in cash during the period amounted to
Special dividends of
4. Investment management fee
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Investment
management 144 431 575 158 476 634 291 873 1,164
fee
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Total 144 431 575 158 476 634 291 873 1,164
========= ========= ========= ========= ========= ========= ========= ========= =========
Under the terms of the investment management agreement, BFM is entitled to a fee of 0.80% per annum based on the Company’s daily Net Asset Value (NAV). The fee is levied quarterly.
The investment management fee is allocated 25% to the revenue account and 75% to the capital account of the Income Statement. There is no additional fee for company secretarial and administration services.
At
5. Other operating expenses
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Allocated to revenue:
Custody fee 14 17 34
Depositary fees1 5 8 15
Auditors’ remuneration2 28 30 60
Registrar’s fees 20 20 40
Directors’ emoluments 122 102 210
Marketing fees 54 41 103
Postage and printing fees 37 65 96
Broker fees 24 21 44
Employer NI contributions 12 11 22
FCA fees 6 5 13
Write back of prior year expenses3 (3) – (14)
Other administration costs 74 75 122
-------------- -------------- --------------
Total revenue expenses 393 395 745
========= ========= =========
Allocated to capital:
Custody transaction charges4 8 4 18
-------------- -------------- --------------
Total 401 399 763
========= ========= =========
1 All expenses, other than depositary fees, are paid in Sterling and are therefore subject to exchange rate fluctuations.
2 No non-audit services are provided by the Company’s Auditor.
3 Relates to legal and professional fees and trustee fees written back during the six month period ended
4 For the six months ended
The direct transaction costs incurred on the acquisition of investments amounted to
6.
Dividend
The Company’s cum-income US Dollar NAV at
In accordance with FRS 102 Section 32 Events After the End of the Reporting Period, the final dividend payable on ordinary shares is recognised as a liability when approved by shareholders. Interim dividends are recognised only when paid.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Dividends on equity shares paid US$’000 US$’000 US$’000
during the period
Quarter to 31 December 2023 – – 2,371 2,371
dividend of 8.05 cents
Quarter to 31 March 2024 – dividend – 2,176 2,176
of 7.39 cents
Quarter to 30 June 2024 – dividend – – 1,805
of 6.13 cents
Quarter to 30 September 2024 – – – 1,844
dividend of 6.26 cents
Quarter to 31 December 2024 – 1,449 – –
dividend of 4.92 cents
Quarter to 31 March 2025 – dividend 1,634 – –
of 5.55 cents
-------------- -------------- --------------
Accounted for in the financial 3,083 4,547 8,196
statements
========= ========= =========
7. Creditors – amounts falling due after more than one year
As at As at As at
30 June 30 June 31 December
2025 2024
(unaudited) (unaudited) 2024
(audited)
US$’000 US$’000 US$’000
Non-equity redeemable shares 24 24 24
========= ========= =========
The redeemable shares of £1 each carry the right to receive a fixed dividend at the rate of 0.1% per annum on the nominal amount thereof. They are capable of being redeemed by the Company at any time and confer no rights to receive notice of, attend or vote at general meetings except where the rights of holders are to be varied or abrogated. On a winding up, the capital paid up on such shares ranks pari passu with, and in proportion to, any amounts of capital paid to the holders of ordinary shares, but does not confer any further right to participate in the surplus assets of the Company.
8.
Earnings and net asset value per ordinary share
Total revenue, capital earnings/(loss) and net asset value per ordinary share are shown below and have been calculated using the following:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable to 3,142 3,786 6,890
ordinary shareholders (US$’000)
Net capital profit/(loss)
attributable to ordinary 42,713 (44,721) (72,451)
shareholders (US$’000)
-------------- -------------- --------------
Total profit/(loss) attributable to 45,855 (40,935) (65,561)
ordinary shareholders (US$’000)
========= ========= =========
Total shareholders’ funds (US$’000) 158,734 144,237 115,962
========= ========= =========
Earnings per share
The weighted average number of
ordinary shares in issue during the 29,448,641 29,448,641 29,448,641
period on which the earnings per
ordinary share was calculated was:
The actual number of ordinary
shares in issue at the end of the
period on which the net asset value 29,448,641 29,448,641 29,448,641
per ordinary share was calculated
was:
Revenue earnings per share (US$ 10.67 12.86 23.40
cents ) – basic and diluted
Capital earnings/(loss) per share 145.04 (151.86) (246.02)
(US$ cents) – basic and diluted
-------------- -------------- --------------
Total earnings/(loss) per share 155.71 (139.00) (222.62)
(US$ cents) – basic and diluted
========= ========= =========
As at As at As at
30 June 30 June 31 December
2025 2024
(unaudited) (unaudited) 2024
(audited)
Net asset value per ordinary share (US$ 539.02 489.79 393.78
cents )
Ordinary share price (mid-market) (US$ 479.62 437.38 348.17
cents)1
========= ========= =========
1 Based on an exchange rate of
There were no dilutive securities at
9. Share capital
Ordinary Treasury Total Nominal
shares shares shares value
(unaudited) number number number US$’000
Allotted, called up
and fully paid share
capital comprised:
Ordinary shares of
10 cents each:
At 31 December 2023 29,448,641 2,181,662 31,630,303 3,163
(audited)
At 30 June 2024 29,448,641 2,181,662 31,630,303 3,163
(unaudited)
At 31 December 2024 29,448,641 2,181,662 31,630,303 3,163
(audited)
-------------- -------------- -------------- --------------
At 30 June 2025 29,448,641 2,181,662 31,630,303 3,163
(unaudited)
========= ========= ========= =========
During the six months ended
The ordinary shares give shareholders voting rights, the entitlement to all of the capital growth in the Company’s assets, and to all income from the Company that is resolved to be distributed.
10.
Reserves
The share premium account and capital redemption reserve of
As at
11.
Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The risks are substantially consistent with those disclosed in the previous annual financial statements with the exception of those outlined below.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, climate change or other events could have a significant impact on the Company and the market price of its investments and could result in increased premiums or discounts to the Company’s net asset value.
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Balance Sheet at their fair value (investments) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). Section 34 of FRS 102 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note on pages 88 and 89 of the Annual Report and Financial Statements for the year ended
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. These include exchange traded derivatives. The Company does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data.
Valuation techniques used for non-standardised financial instruments such as over-the-counter derivatives, include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.
The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and inputs used in measurement of Level 2 and Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below is an analysis of the Company’s financial instruments measured at fair value at the balance sheet date.
Financial assets at fair value through Level 1 Level 2 Level 3 Total profit or loss at 30 US$’000 US$’000 US$’000 US$’000June 2025 (unaudited) Equity investments 156,414 – – 156,414 -------------- -------------- -------------- -------------- Total 156,414 – – 156,414 ========= ========= ========= =========
Financial assets at fair value through Level 1 Level 2 Level 3 Total profit or loss at 30 US$’000 US$’000 US$’000 US$’000June 2024 (unaudited) Equity investments 160,817 – – 160,817 -------------- -------------- -------------- -------------- Total 160,817 – – 160,817 ========= ========= ========= =========
Financial assets at fair value through Level 1 Level 2 Level 3 Total profit or loss at 31 US$’000 US$’000 US$’000 US$’000December 2024 (audited) Equity investments 121,561 – – 121,561 -------------- -------------- -------------- -------------- Total 121,561 – – 121,561 ========= ========= ========= =========
There were no transfers between levels for financial assets and financial liabilities during the six months ended
For exchange listed equity investments the quoted price is the bid price. Substantially all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any business risks, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.
12.
Transactions with the Investment Manager and AIFM
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 six months ended
In addition to the above services, BIM (
During the period, 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
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
13.
Related party disclosure
Directors’ emoluments
At the date of this report, the Board consists of four non-executive Directors, all of whom are considered to be independent of the Manager by the Board. None of the Directors has a service contract with the Company. The Chair receives an annual fee of £53,700, the Chairman of the Audit Committee receives an annual fee of £41,300 and each of the other Directors receives an annual fee of £36,800.
At the period end members of the Board held ordinary shares in the Company as set out below:
As at As at As at
30 June 30 June 31 December
2025 2024
Ordinary Ordinary 2024
Ordinary
shares shares shares
Carolan Dobson (Chair) 6,842 6,842 6,842
Craig Cleland 12,000 12,000 12,000
Laurie Meister 2,915 2,915 2,915
Nigel Webber 5,000 5,000 5,000
Significant holdings
The following investors are:
a.
funds managed by the
b.
investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are as a result, considered to be related parties to the Company (
Total % of shares Number of
held Significant Investors
by Significant
Total % of shares Investors who are not
who are not affiliates
held by Related affiliates of BlackRock Group or
BlackRock Funds of BlackRock Group or
BlackRock, Inc.
BlackRock, Inc.
As at 30 June 2025 1.0 21.0 1
As at 30 June 2024 1.0 22.2 1
As at 31 December 0.9 23.0 1
2024
14.
Contingent liabilities
There were no contingent liabilities at
15.
Publication of non statutory accounts
The financial information contained in this Half Yearly Financial Report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended
The information for the year ended
16.
Annual results
The Board expects to announce the annual results for the year ending
For further information, please contact:
Sarah Beynsberger, Director,
Tel: 020 7743 3000
Press enquiries:
E-mail: BlackRockInvestmentTrusts@lansons.com or
EdH@lansons.com
END
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