REG-BlackRock Latin American Investment Trust Plc: Half-year Report
Thu 16:45
BlackRock Latin American Investment Trust plc
LEI: UK9OG5Q0CYUDFGRX4151
Information disclosed in accordance with Article 5 Transparency Directive and
DTR 4.2
Half Yearly Financial Report for the six months ended 30 June 2025
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
Discount(3) 11.0% 11.6%
========= =========
For the For the
six months year
ended ended
30 June 31 December
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 basis)(4) +29.9% -26.4%
========= =========
For the six For the six Change
months ended months ended %
30 June 2025 30 June 2024
Revenue
Net profit on ordinary activities after taxation (US$’000) 3,142 3,786 -17.0
Revenue earnings per ordinary share (US$ cents) 10.67 12.86 -17.0
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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
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Total dividends payable/paid (US$ cents) 12.29 13.52 -9.1
========= ========= =========
1 The change in net assets reflects the portfolio movements during the
period and dividends paid.
2 Based on an exchange rate of US$1.37 to £1 at 30 June 2025 and
US$1.25 to £1 at 31 December 2024.
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 June 2025, outperforming both developed and emerging markets.
The MSCI EM Latin America Index delivered a net return of +29.9%, compared to
the MSCI Emerging Markets EMEA Index net return of +15.3% and an increase in
the MSCI World Index net return of +9.5%. All performance figures are
calculated in US Dollar terms with dividends reinvested.
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
Brazil, with stock selection in real estate developers and Brazilian retailers
impacting positively. Mexico, the second largest country market exposure was
another market which bounced back in the first six months ended 30 June 2025,
supported by a 200 basis points (bps) reduction in interest rates by the
Mexican central bank year-to-date. At the same time the Mexican Peso has
appreciated against the US Dollar, further supporting equity returns.
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
February 2025. Average gearing for the six months ended 30 June 2025 was
105.3% of NAV (year to 31 December 2024 was 107.5% of NAV).
Dividends declared in respect of the year to 30 June 2025
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 30 June 2025 was 10.67 cents per share
(2024: 12.86 cents per share). The decrease of 17.0% 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. 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 23.47 cents per share in
respect of the twelve months to 30 June 2025 as detailed in the table on the
preceding page; this represented a yield of 4.9% (calculated based on the
Company’s share price of 479.62 cents per share, equivalent to the Sterling
price of 350.00 pence per share translated into cents at a rate of US$1.37
prevailing at 30 June 2025). As at 30 June 2025, a balance of US$4,629,000
remained in revenue reserves. 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 investment 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.
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 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 for the period from 1 January 2022 to 30 June 2025
was 8.4%, underperforming the annualised benchmark return of 9.7% over the
calculation period by 1.3% (equivalent to 130 basis points).
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 30 June 2025.
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
30 June 2025 and up to the date of publication of this report.
Portfolio management changes
As announced on 16 April 2025, Gordon Fraser was appointed as a co-manager of
the Company’s portfolio alongside Sam Vecht as lead co-manager. Gordon is a
Managing Director and senior investor on BlackRock’s Fundamental Equity
Global Emerging Markets Platform, with 18 years of experience investing in
Emerging Markets, and the Board are pleased to welcome him in his new role.
Christoph Brinkmann retired as co-manager on the same date and the Board thank
him for his commitment and contribution to the Company.
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. Mexico is a large manufacturing area for supplying the US
market and circa. 83% of Mexican exports go to the US accounting for circa.
28% of GDP though a large proportion falls under the United
States-Mexico-Canada Agreement. Since January 2025 there have been several
changes to export duties imposed by the US. It is difficult to know what the
end tariff rate will be and what effect this will have on Mexican
manufacturing. Random changes in tariff rates are difficult to manage but
companies in Latin America frequently go through unexpected and volatile
conditions and therefore have some practice in dealing with unusual external
factors.
Brazil exports circa. 12% of exports to the US accounting for circa. 1.9% of
GDP and therefore US exports, whilst important, aren’t dominant and Brazil
already exports to many other markets including China. Their current tariff of
50% appears to have been imposed as political punishment rather than as a
solution to a trade deficit. It is impossible to know how long it will
continue but the small size of exports to the US reduces its impact.
Investing in Latin America is a volatile business but the companies there are
more used to these conditions than companies in more economically mature
regions. Latin American economies are rich in many of the key resources the
world needs and as a result their stock markets offer excellent
diversification from the currently very tech driven US stock markets.
CAROLAN DOBSON
Chair
11 September 2025
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 Russia and Ukraine. Naturally,
these events have contributed to increased volatility for risk assets.
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 Latin America the best
performing region year-to-date.
Nearly all countries in the region posted positive returns. Regional
heavyweight Brazil (+29.2%) had a strong six months. Whilst the market
struggled in 2024, the country has strongly rebounded helped by flows into the
local equity market and growing expectations that interest rates have peaked.
The economy has held up well despite the high real rates, largely underpinned
by household savings, strong domestic consumption and a resilient labour
market. A weaker US Dollar, led by a higher risk premium in the US, has also
supported the Brazilian Real (BRL).
Mexico (+30.9%) was another market that bounced back in the first six months
of 2025, supported by a 200 basis points (bps) reduction in interest rates by
the central bank year-to-date. Following the most recent 50bps cut in late
June, the target rate now sits at 8.0%. At the same time, the Mexican Peso has
appreciated against the US Dollar, further supporting equity returns.
Performance review and positioning
The Company significantly outperformed its benchmark over the six-month period
ending 30 June 2025, returning +40.4%. Over the same time horizon, the
Company’s benchmark, the MSCI EM Latin America Index, returned +29.9% on a
net basis (all figures in US Dollar terms). This marks the Company’s
strongest half- yearly performance in over five years, delivering a +10.5%
excess return relative to its benchmark.
Our Brazil positioning was by far the strongest contributor to performance in
the first half of the year. While Brazil suffered a tough year in 2024, driven
primarily by fiscal concerns and currency weakness, the adjustments we made
throughout last year have positioned us well to capture the upside so far in
2025.
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 the United States.
To that end, G Mining Ventures, a Canadian based gold mining firm with
significant operations in Brazil, and MAG Silver, the Mexican silver miner,
were both significant contributors to returns, up 55.9% and 58.7%,
respectively. Off-benchmark exposure to Uruguayan fintech firm dLocal also did
well, rising 52.5%.
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 Itau also weighed on returns. As a high-beta
stock, the name was helped by the strong performance of the Brazilian equity
market. Overweight in Becle, a Mexican producer and supplier of alcoholic
beverages most famously known for their high-end tequila brand Jose Cuervo,
was another detractor. Their fourth quarter 2024 earnings were weak on the
back of disappointing sales volumes in the US, but we have seen some recovery
since, with the first quarter of 2025 earnings coming in ahead of
expectations.
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 Brazil year-to-date to take profits on some of our domestic
exposed names including Azzas 2154, Rede D’or and Lojas Renner. We sold out
of Brazilian electric utility company Energisa and increased our exposure to
the Brazilian transportation sector through buying Localiza. The stock is
trading at attractive valuations and is strongly positioned relative to peers.
We also added to our holding in Brazilian logistics company, Rumo, taking
advantage of the share price weakness following their first quarter earnings
release. We think the initial share price weakness, which was due to
higher-than-expected quarter one capex numbers, was an overreaction as the
full year guidance was maintained. Outside of this sector, we initiated a
position in Brazilian beef producer, Minerva. We believe the recent placing
will support the company’s deleveraging efforts and help facilitate an
operational turnaround.
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 Mexican airport operator Grupo Aeroportuario del
Pacífico (GAPB), rotating into ASUR, another airport operator. Within Mexican
financials, we reduced our overweight to Banorte, taking advantage of its
strong performance year-to-date.
We have also reduced the portfolio’s exposure to Chile, primarily through
exiting CCU, a Chilean brewer, on the back of strong performance. Whilst the
market has begun to price in the elections taking place in November this year,
the macro backdrop remains subdued, so we prefer to maintain an underweight to
this country – not least because we see greater upside in both Brazil and
Mexico.
As such, Mexico was the largest portfolio overweight at the end of the period.
The largest portfolio underweight remains Chile.
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 Mexico and Brazil.
Whilst we have recently taken some profits on our domestic Brazil exposure, we
remain positive on the country on a 12-18 month view and believe there is
still room for significant upside. We favour companies with lower leverage and
stronger earnings outlook. Given cheap valuations, we also see the potential
for share buybacks supporting the market in 2025.
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 Brazil and Mexico have not altered
our long-term outlook on these markets. Over the past decade, Brazil’s
exports to the US have declined, while trade with other partners, most
significantly China, has increased, limiting the impact of any such tariffs.
China has become Brazil’s main trading partner, benefitting Brazil’s
export sector, with purchases reaching about US$94 billion last year, driven
largely by demand for iron ore, soybeans and beef. The relationship has also
expanded through Chinese investment, including funding to upgrade the Port of
Santos and finance major rail projects aimed at improving Brazil’s export
infrastructure and facilitating greater agricultural trade.
For Mexico, the vast majority of bilateral trade falls under the United
States-Mexico-Canada Agreement (USMCA), likely limiting the impact for now. We
also do not believe that threats that some investors worry about are likely to
materialise. This is based on two primary observations: first, the US is
heavily dependent on Mexico due to their interlinked supply chains, and
second, Mexico’s President, Claudia Sheinbaum, has proven to be a pragmatic
and skilled negotiator.
As we have communicated to shareholders before, we believe investing in Latin
America requires patience and the discipline to maintain, or even add to,
positions when others are heading for the exit. While 2024 was a challenging
year for the portfolio, we made selective changes and chose not to
significantly reduce exposure, particularly within Brazil, as we remained
confident in a better outlook for 2025. It is important to re-iterate that,
whilst volatility will occur from time to time, staying invested through the
cycle is often key to capturing the long-term value that the region can offer.
SAM VECHT
AND GORDON FRASER
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
11 September 2025
Portfolio analysis as at 30 June 2025
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 30 June 2025 (31 December 2024: 52.0%).
1. Vale (2024: 1st)
Sector: Materials
Market value – American depositary share (ADS): US$10,991,000
Market value – ordinary shares: US$1,651,000
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: US$9,139,000
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): US$4,241,000
Market value – preference shares ADR: US$3,220,000
Market value – ordinary shares: US$1,519,000
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 Africa, North and
South America, Europe and Asia, with a majority of production based in Brazil.
4. Walmart de México y Centroamérica (2024: 4th)
Sector: Consumer Staples
Market value – ordinary shares: US$7,494,000
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: US$5,518,000
Market value – American depositary receipt (ADR): US$1,408,000
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: US$6,735,000
Share of net assets: 4.3% (2024: 1.2%)
is a Mexican airport operator managing airports in southeastern Mexico,
Colombia and Puerto Rico. It provides both aeronautical services like
passenger handling and non-aeronautical services such as retail and parking.
7. Grupo Financiero Banorte (2024: 3rd)
Sector: Financials
Market value – ordinary shares: US$6,321,000
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: US$6,256,000
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: US$5,817,000
Share of net assets: 3.7% (2024: 4.0%)
is a stock exchange located in Brazil, providing trading services in an
exchange and OTC environment. B3’s scope of activities include 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.
10. Rede D’or Sao Luiz (2024: 7th)
Sector: Health Care
Market value – ordinary shares: US$5,598,000
Share of net assets: 3.6% (2024: 3.8%)
is a Brazilian hospital chain. The company offers medical and hospital care
services in various areas, including women’s healthcare, oncology,
dermatology, gastroenterology, neurology, psychology, urology and reproductive
medicine.
All percentages reflect the value of the holding as a percentage of total
investments. For this purpose, where more than one class of securities is
held, these have been aggregated.
The percentages in brackets represent the value of the holding as at 31
December 2024.
Portfolio of investments as at 30 June 2025
Market
value % of
US$’000 investments
Brazil
Vale – ADS 10,991 } 8.1
Vale 1,651
Petrobrás – ADR 4,241 } 5.7
Petrobrás – preference shares ADR 3,220
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 30 June 2025 was 36 (31 December 2024:
39). At 30 June 2025, the Company did not hold any equity interests comprising
more than 3% of any company’s share capital (31 December 2024: none).
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 31
December 2024. A detailed explanation can be found on pages 40 to 45 and in
note 16 on pages 97 to 104 of the Annual Report and Financial Statements which
are available on the website maintained by BlackRock at
www.blackrock.com/uk/brla.
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 Ukraine and the Middle East, their longer-term effects on the global
economy, high inflation and the current cost of living crisis could have a
significant impact on global markets. There will be a continuation vote at the
Company’s AGM in 2026, and the Board proposes to offer a tender for 24.99%
of the Company’s ordinary shares in issue (excluding treasury shares) at the
same AGM if certain performance and discount conditions are met (more details
of these conditions are set out in the Chair’s Statement above. The outcome
of these events are unknown at the present time. Notwithstanding these
uncertainties, the Directors are satisfied that the Company has adequate
resources to continue in operational existence for the foreseeable future and
is financially sound. The Company has a portfolio of investments which are
considered to be readily realisable and is able to meet all of its liabilities
from its assets and income generated from these assets. Ongoing charges
excluding finance costs, direct transaction costs, custody transaction
charges, VAT recovered, taxation and certain non-recurring items for the year
ended 31 December 2024 were approximately 1.23% of average daily net assets.
To the extent that the tender offer proceeds in 2026 and is fully subscribed,
the Company would retain a liquid portfolio with ongoing expenses and
liabilities still representing a very small percentage of net assets (with
ongoing charges representing 1.4% of NAV). In addition, the Company has a
US$25 million bank overdraft facility in place to meet liquidity
requirements, subject to a maximum restriction of 30% of net asset value.
Therefore, for the reasons set out above, the Directors continue to adopt the
going concern basis in preparing the financial statements.
Related party disclosure and transactions with the Manager
BlackRock Fund Managers Limited (BFM) was appointed as the Company’s AIFM
(Alternative Investment Fund Manager) with effect from 2 July 2014. 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)). Both BFM and BIM (UK) are regarded as related parties
under the Listing Rules. Details of the fees payable are set out in note 11 to
the financial statements.
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 UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Management Report and Financial
Statements.
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 11 September
2025 and the above responsibility statement was signed on its behalf by the
Chair.
CAROLAN DOBSON
FOR AND ON BEHALF OF THE BOARD
11 September 2025
Income statement for the six months ended 30 June 2025
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Notes 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
Gains/(losses) from investments held at fair value through profit or loss – 43,172 43,172 – (44,039) (44,039) – (71,060) (71,060)
Gains on foreign exchange – 88 88 – 46 46 – 22 22
Income from investments held at fair value through profit or loss 3 3,943 70 4,013 4,674 – 4,674 8,598 – 8,598
Other income 3 37 – 37 13 – 13 23 – 23
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Total income/(loss) 3,980 43,330 47,310 4,687 (43,993) (39,306) 8,621 (71,038) (62,417)
========= ========= ========= ========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (144) (431) (575) (158) (476) (634) (291) (873) (1,164)
Other operating expenses 5 (393) (8) (401) (395) (4) (399) (745) (18) (763)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Total operating expenses (537) (439) (976) (553) (480) (1,033) (1,036) (891) (1,927)
========= ========= ========= ========= ========= ========= ========= ========= =========
Net profit/(loss) on ordinary activities before finance costs and taxation 3,443 42,891 46,334 4,134 (44,473) (40,339) 7,585 (71,929) (64,344)
Finance costs (57) (171) (228) (83) (248) (331) (174) (522) (696)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Net profit/(loss) on ordinary activities before taxation 3,386 42,720 46,106 4,051 (44,721) (40,670) 7,411 (72,451) (65,040)
Taxation charge (244) (7) (251) (265) – (265) (521) – (521)
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
Net profit/(loss) on ordinary activities after taxation 3,142 42,713 45,855 3,786 (44,721) (40,935) 6,890 (72,451) (65,561)
========= ========= ========= ========= ========= ========= ========= ========= =========
Earnings/(loss) per ordinary share (US$ cents) 8 10.67 145.04 155.71 12.86 (151.86) (139.00) 23.40 (246.02) (222.62)
========= ========= ========= ========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss
account. The supplementary revenue and capital accounts are both prepared
under guidance published by the Association of Investment Companies (AIC). All
items in the above statement derive from continuing operations. No operations
were acquired or discontinued during the period. All income is attributable to
the equity holders of the Company.
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 30 June 2025
Note Called Share Capital Non- Capital Revenue Total
up share premium redemption distributable reserves reserve US$’000
capital account reserve reserve US$’000 US$’000
US$’000 US$’000 US$’000 US$’000
For the six months ended 30 June 2025 (unaudited)
At 31 December 2024 3,163 11,719 5,824 4,356 86,330 4,570 115,962
Total comprehensive income:
Net profit for the period – – – – 42,713 3,142 45,855
Transactions with owners, recorded directly to equity:
Dividends paid(1) 6 – – – – – (3,083) (3,083)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
At 30 June 2025 3,163 11,719 5,824 4,356 129,043 4,629 158,734
========= ========= ========= ========= ========= ========= =========
For the six months ended 30 June 2024 (unaudited)
At 31 December 2023 3,163 11,719 5,824 4,356 158,781 5,876 189,719
Total comprehensive (loss)/income:
Net (loss)/profit for the period – – – – (44,721) 3,786 (40,935)
Transactions with owners, recorded directly to equity:
Dividends paid(2) 6 – – – – – (4,547) (4,547)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
At 30 June 2024 3,163 11,719 5,824 4,356 114,060 5,115 144,237
========= ========= ========= ========= ========= ========= =========
For the year ended 31 December 2024 (audited)
At 31 December 2023 3,163 11,719 5,824 4,356 158,781 5,876 189,719
Total comprehensive (loss)/income:
Net (loss)/profit for the year – – – – (72,451) 6,890 (65,561)
Transactions with owners, recorded directly to equity:
Dividends paid(3) 6 – – – – – (8,196) (8,196)
-------------- -------------- -------------- -------------- -------------- -------------- --------------
At 31 December 2024 3,163 11,719 5,824 4,356 86,330 4,570 115,962
========= ========= ========= ========= ========= ========= =========
1 Quarterly dividend of 4.92 cents per share for the year ended 31
December 2024, declared on 2 January 2025 and paid on 7 February 2025; and
quarterly dividend of 5.55 cents per share for the year ending 31 December
2025, declared on 1 April 2025 and paid on 15 May 2025.
2 Quarterly dividend of 8.05 cents per share for the year ended 31
December 2023, declared on 2 January 2024 and paid on 9 February 2024; and
quarterly dividend of 7.39 cents per share for the year ending 31 December
2024, declared on 2 April 2024 and paid on 16 May 2024.
3 Quarterly dividend of 8.05 cents per share for the year ended 31
December 2023, declared on 2 January 2024 and paid on 9 February 2024;
quarterly dividend of 7.39 cents per share for the year ended 31 December
2024, declared on 2 April 2024 and paid on 16 May 2024; quarterly dividend of
6.13 cents per share for the year ended 31 December 2024, declared on 1 July
2024 and paid on 13 August 2024; quarterly dividend of 6.26 cents per share,
declared on 1 October 2024 and paid on 8 November 2024.
For information on the Company’s distributable reserves, please refer to
note 10 below.
Balance sheet as at 30 June 2025
Notes As at As at As at
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Fixed assets
Investments held at fair value through profit or loss 156,414 160,817 121,561
-------------- -------------- --------------
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 – bank overdraft – (18,560) (6,769)
Other creditors (800) (1,218) (764)
-------------- -------------- --------------
Total current liabilities (800) (19,778) (7,533)
========= ========= =========
Net current assets/(liabilities) 2,344 (16,556) (5,575)
-------------- -------------- --------------
Total assets less current liabilities 158,758 144,261 115,986
========= ========= =========
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 share (US$ cents) 8 539.02 489.79 393.78
========= ========= =========
Statement of cash flows for the six months ended 30 June 2025
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 activities before taxation 46,106 (40,670) (65,040)
Add back finance costs 228 331 696
(Gains)/losses on investments held at fair value through profit or loss (43,172) 44,039 71,060
Gains on foreign exchange (88) (46) (22)
Sales of investments held at fair value through profit or loss 49,916 47,126 114,906
Purchase of investments held at fair value through profit or loss (41,597) (61,107) (116,652)
Decrease in other debtors 539 799 815
Increase/(decrease) in other creditors 36 335 (119)
Taxation on investment income (251) (265) (521)
-------------- -------------- --------------
Net cash generated/(used in) from operating activities 11,717 (9,458) 5,123
========= ========= =========
Financing activities
Interest paid (228) (331) (696)
Dividends paid (3,083) (4,547) (8,196)
-------------- -------------- --------------
Net cash used in financing activities (3,311) (4,878) (8,892)
========= ========= =========
Increase/(decrease) in cash and cash equivalents 8,406 (14,336) (3,769)
Cash and cash equivalents at the beginning of the period/year (6,131) (2,384) (2,384)
Effect of foreign exchange rate changes 88 46 22
-------------- -------------- --------------
Cash and cash equivalents at the end of the period/year 2,363 (16,674) (6,131)
========= ========= =========
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
US$4,305,000 and US$37,000 (six months ended 30 June 2024: US$5,267,000 and
US$13,000; 31 December 2024: US$8,754,000 and US$23,000).
Notes to the financial statements for the six months ended 30 June 2025
1. Principal activity
The principal activity of the Company is that of an investment trust company
within the meaning of Section 1158 of the Corporation Tax Act 2010.
2. Basis of preparation
The financial statements of the Company are prepared on a going concern basis
in accordance with Financial Reporting Standard 104 Interim Financial
Reporting (FRS 104) applicable in the United Kingdom and Republic of Ireland
and the revised Statement of Recommended Practice – ‘Financial Statements
of Investment Trust Companies and Venture Capital Trusts’ (SORP), issued by
the Association of Investment Companies (AIC) in October 2019 and updated in
July 2022, and the provisions of the Companies Act 2006.
The accounting policies and estimation techniques applied for the condensed
set of financial statements are as set out in the Company’s Annual Report
and Financial Statements for the year ended 31 December 2024.
3. Income
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Investment income:
Overseas dividends 3,825 4,464 8,132
Overseas REIT(1) 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
US$4,305,000 and US$37,000 (six months ended 30 June 2024: US$5,267,000 and
US$13,000; year ended 31 December 2024: US$8,754,000 and US$23,000).
Special dividends of US$70,000 have been recognised in capital in the period
(six months ended 30 June 2024: US$nil; year ended 31 December 2024: US$nil).
4. Investment management fee
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Investment management fee 144 431 575 158 476 634 291 873 1,164
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- --------------
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 30 June 2025, the Company had net surplus management expenses of US$988,000
(30 June 2024: US$nil; 31 December 2024: US$868,000) and a non-trade loan
relationship deficit of US$2,797,000 (30 June 2024: US$2,131,000; 31 December
2024: US$2,600,000). A deferred tax asset was not recognised in the period
ended 30 June 2025 or in the year ended 31 December 2024 as it was unlikely
that there would be sufficient future taxable profits to utilise these
expenses.
5. Other operating expenses
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Allocated to revenue:
Custody fee 14 17 34
Depositary fees(1) 5 8 15
Auditors’ remuneration(2) 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 expenses(3) (3) – (14)
Other administration costs 74 75 122
-------------- -------------- --------------
Total revenue expenses 393 395 745
========= ========= =========
Allocated to capital:
Custody transaction charges(4) 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 30 June 2025 (six months ended 30 June 2024:
none; year ended 31 December 2024: prior year accruals for Auditors’
remuneration, Registrar’s fees, postage and printing fees and other
administration costs).
4 For the six months ended 30 June 2025, expenses of US$8,000 (six
months ended 30 June 2024: US$4,000; year ended 31 December 2024: US$18,000)
were charged to the capital account of the Income Statement. These relate to
transaction costs charged by the custodian on sale and purchase trades.
The direct transaction costs incurred on the acquisition of investments
amounted to US$30,000 for the six months ended 30 June 2025 (six months ended
30 June 2024: US$54,000; year ended 31 December 2024: US$101,000). Costs
relating to the disposal of investments amounted to US$46,000 for the six
months ended 30 June 2025 (six months ended 30 June 2024: US$41,000; year
ended 31 December 2024: US$97,000). All transaction costs have been included
within the capital reserves.
6. Dividend
The Company’s cum-income US Dollar NAV at 31 March 2025 was 444.25 cents per
share, and the Directors declared a first quarterly interim dividend of 5.55
cents per share. The dividend was paid on 15 May 2025 to holders of ordinary
shares on the register at the close of business on 11 April 2025.
In accordance with FRS 102 Section 32 Events After the End of the Reporting
Period, the final dividend payable on ordinary shares is recognised as a
liability when approved by shareholders. Interim dividends are recognised only
when paid.
Dividends on equity shares paid during the period Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Quarter to 31 December 2023 – dividend of 8.05 cents – 2,371 2,371
Quarter to 31 March 2024 – dividend of 7.39 cents – 2,176 2,176
Quarter to 30 June 2024 – dividend of 6.13 cents – – 1,805
Quarter to 30 September 2024 – dividend of 6.26 cents – – 1,844
Quarter to 31 December 2024 – dividend of 4.92 cents 1,449 – –
Quarter to 31 March 2025 – dividend of 5.55 cents 1,634 – –
-------------- -------------- --------------
Accounted for in the financial statements 3,083 4,547 8,196
========= ========= =========
7. Creditors – amounts falling due after more than one year
As at As at As at
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
US$’000 US$’000 US$’000
Non-equity redeemable shares 24 24 24
========= ========= =========
The redeemable shares of £1 each carry the right to receive a fixed dividend
at the rate of 0.1% per annum on the nominal amount thereof. They are capable
of being redeemed by the Company at any time and confer no rights to receive
notice of, attend or vote at general meetings except where the rights of
holders are to be varied or abrogated. On a winding up, the capital paid up on
such shares ranks pari passu with, and in proportion to, any amounts of
capital paid to the holders of ordinary shares, but does not confer any
further right to participate in the surplus assets of the Company.
8. Earnings and net asset value per ordinary share
Total revenue, capital earnings/(loss) and net asset value per ordinary share
are shown below and have been calculated using the following:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Net revenue profit attributable to ordinary shareholders (US$’000) 3,142 3,786 6,890
Net capital profit/(loss) attributable to ordinary shareholders (US$’000) 42,713 (44,721) (72,451)
-------------- -------------- --------------
Total profit/(loss) attributable to ordinary shareholders (US$’000) 45,855 (40,935) (65,561)
========= ========= =========
Total shareholders’ funds (US$’000) 158,734 144,237 115,962
========= ========= =========
Earnings per share
The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was: 29,448,641 29,448,641 29,448,641
The actual number of ordinary shares in issue at the end of the period on which the net asset value per ordinary share was calculated was: 29,448,641 29,448,641 29,448,641
Revenue earnings per share (US$ cents) – basic and diluted 10.67 12.86 23.40
Capital earnings/(loss) per share (US$ cents) – basic and diluted 145.04 (151.86) (246.02)
-------------- -------------- --------------
Total earnings/(loss) per share (US$ cents) – basic and diluted 155.71 (139.00) (222.62)
========= ========= =========
As at As at As at
30 June 30 June 31 December
2025 2024 2024
(unaudited) (unaudited) (audited)
Net asset value per ordinary share (US$ cents) 539.02 489.79 393.78
Ordinary share price (mid-market) (US$ cents)(1) 479.62 437.38 348.17
========= ========= =========
1 Based on an exchange rate of US$1.37 to £1 (30 June 2024: US$1.26; 31
December 2024: US$1.25).
There were no dilutive securities at 30 June 2025 (30 June 2024: none; 31
December 2024: none).
9. Share capital
(unaudited) Ordinary Treasury Total Nominal
shares shares shares value
number number number US$’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 10 cents each:
At 31 December 2023 (audited) 29,448,641 2,181,662 31,630,303 3,163
At 30 June 2024 (unaudited) 29,448,641 2,181,662 31,630,303 3,163
At 31 December 2024 (audited) 29,448,641 2,181,662 31,630,303 3,163
-------------- -------------- -------------- --------------
At 30 June 2025 (unaudited) 29,448,641 2,181,662 31,630,303 3,163
========= ========= ========= =========
During the six months ended 30 June 2025, no ordinary shares were repurchased
(six months ended 30 June 2024: none; year ended 31 December 2024: none) and
no ordinary shares were issued (six months ended 30 June 2024: none; year
ended 31 December 2024: none).
The ordinary shares give shareholders voting rights, the entitlement to all of
the capital growth in the Company’s assets, and to all income from the
Company that is resolved to be distributed.
10. Reserves
The share premium account and capital redemption reserve of US$11,719,000 and
US$5,824,000 (30 June 2024: US$11,719,000 and US$5,824,000; 31 December 2024:
US$11,719,000 and US$5,824,000) are not distributable reserves under the
Companies Act 2006. In accordance with ICAEW Technical Release 02/17BL on
Guidance on Realised and Distributable Profits under the Companies Act 2006,
the capital reserve may be used as distributable reserves for all purposes
and, in particular, the repurchase by the Company of its ordinary shares and
for payments such as dividends. In accordance with the Company’s Articles of
Association, capital reserve and the revenue reserve may be distributed by way
of dividend. The loss on the capital reserve arising on the revaluation of
investments of US$5,594,000 (30 June 2024: loss of US$23,534,000; 31 December
2024: loss of US$49,301,000) is subject to fair value movements and may not be
readily realisable at short notice, as such it may not be entirely
distributable. The investments are subject to financial risks, as such capital
reserves (arising on investments sold) and the revenue reserve may not be
entirely distributable if a loss occurred during the realisation of these
investments.
As at 30 June 2025, distributable reserves (excluding capital reserves on the
revaluation of investments) amounted to US$139,266,000 (30 June 2024:
US$142,709,000; 31 December 2024: US$140,201,000).
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 31 December 2024.
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 profit or loss at 30 June 2025 (unaudited) Level 1 Level 2 Level 3 Total
US$’000 US$’000 US$’000 US$’000
Equity investments 156,414 – – 156,414
-------------- -------------- -------------- --------------
Total 156,414 – – 156,414
========= ========= ========= =========
Financial assets at fair value through profit or loss at 30 June 2024 (unaudited) Level 1 Level 2 Level 3 Total
US$’000 US$’000 US$’000 US$’000
Equity investments 160,817 – – 160,817
-------------- -------------- -------------- --------------
Total 160,817 – – 160,817
========= ========= ========= =========
Financial assets at fair value through profit or loss at 31 December 2024 (audited) Level 1 Level 2 Level 3 Total
US$’000 US$’000 US$’000 US$’000
Equity investments 121,561 – – 121,561
-------------- -------------- -------------- --------------
Total 121,561 – – 121,561
========= ========= ========= =========
There were no transfers between levels for financial assets and financial
liabilities during the six months ended 30 June 2025 (six months ended 30 June
2024: none; year ended 31 December 2024: none). The Company held no Level 3
securities as at 30 June 2025 (30 June 2024: none; 31 December 2024: none).
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
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 on page 49 of the Directors’
Report in the Company’s Annual Report and Financial Statements for the year
ended 31 December 2024.
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 30 June 2025 amounted to US$575,000 (six months ended 30
June 2024: US$634,000; year ended 31 December 2024: US$1,164,000) as disclosed
in note 4 to the financial statements). At the period end, an amount of
US$317,000 was outstanding in respect of these fees (30 June 2024: US$634,000;
31 December 2024: US$233,000).
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
period ended 30 June 2025 amounted to US$54,000 excluding VAT (six months
ended 30 June 2024: US$41,000; year ended 31 December 2024: US$103,000).
Marketing fees of US$138,000 (30 June 2024: US$128,000; 31 December 2024:
US$85,000) were outstanding at 30 June 2025.
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 30 June 2025, an amount of US$115,000 (30 June 2024: US$214,000; 31
December 2024: US$197,000) 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.
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 2024
Ordinary Ordinary 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 BlackRock Group or are affiliates of
BlackRock Inc., (Related BlackRock Funds); or
b. investors (other than those listed in (a) above) who held more
than 20% of the voting shares in issue in the Company and are as a result,
considered to be related parties to the Company (Significant Investors).
Total % of shares Total % of shares held Number of
held by Related by Significant Investors Significant Investors
BlackRock Funds who are not affiliates who are not affiliates
of BlackRock Group or 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 2024 0.9 23.0 1
14. Contingent liabilities
There were no contingent liabilities at 30 June 2025 (30 June 2024: none; 31
December 2024: none).
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 30 June 2025 and
30 June 2024 has not been audited or reviewed by the Company’s auditor.
The information for the year ended 31 December 2024 has been extracted from
the latest published audited financial statements, which have been filed with
the Registrar of Companies. The report of the auditor in those financial
statements contained no qualification or statement under Sections 498(2) or
(3) of the Companies Act 2006.
16. Annual results
The Board expects to announce the annual results for the year ending 31
December 2025 in March 2026. Copies of the results announcement can be
obtained from the Secretary on 020 7743 3000 or by email at
cosec@blackrock.com. The Annual Report and Financial Statements should be
available by mid-March 2026, with the Annual General Meeting being held in May
2026.
For further information, please contact:
Sarah Beynsberger, Director, BlackRock Investment Management (UK) Limited
Tel: 020 7743 3000
Press enquiries:
Ed Hooper, Lansons Communications – Tel: 020 7294 3620
E-mail: BlackRockInvestmentTrusts@lansons.com or EdH@lansons.com
11 September 2025
12 Throgmorton Avenue
London EC2N 2DL
END
The Half Yearly Financial Report will also be available on the BlackRock
Investment Management website at http://www.blackrock.com/uk/brla. Neither the
contents of the Manager’s website nor the contents of any website accessible
from hyperlinks on the Manager’s website (or any other website) is
incorporated into, or forms part of, this announcement.
Release (https://mb.cision.com/Main/22400/4229689/3663973.pdf)
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