Half-yearly Report

BlackRock Latin American Investment Trust plc

Half Yearly Financial Results Announcement for Period Ended 30 June 2015

PERFORMANCE RECORD

FINANCIAL HIGHLIGHTS

Attributable to ordinary shareholders	As at  30 June 2015  (unaudited)	As at  31 December 2014  (audited)	Change  %
US dollar
Net assets (US$’000)	246,003	276,423	-11.0
Net asset value per ordinary share	624.85c	702.12c	-11.0
– with income reinvested			-8.8
Ordinary share price (mid-market)â€	542.62c	624.50c	-13.1
– with income reinvested			-10.7
	--------	--------	--------
Sterling
Net assets (£’000)â€	156,411	177,274	-11.8
Net asset value per ordinary shareâ€	397.29p	450.28p	-11.8
– with income reinvested			-9.6
Ordinary share price (mid-market)	345.00p	400.50p	-13.9
– with income reinvested			-11.5
	=======	=======	====

	For the  six months  ended  30 June 2015  (unaudited)	For the  six months  ended  30 June 2014  (unaudited)	Change  %
Revenue
Net revenue after taxation (US$’000)	5,301	6,254	-15.3
Revenue return per ordinary share	13.46c	15.89c	-15.3
	--------	--------	--------
Dividend
Interim dividend per ordinary share	15.00c	15.00c	–
	=====	=====	=====
Source: BlackRock. † Based on an exchange rate of 1.5728 as at 30 June 2015 (31 December 2014: 1.5593).

CHAIRMAN’S STATEMENT
for the six months ended 30 June 2015

OVERVIEW AND PERFORMANCE

The first six months have proved challenging for equity investors. Globally, sentiment has been impacted by recurring concerns over whether Greece would reach an agreement with its international creditors, together with fears about Chinese growth and volatility in the Chinese stockmarket.

Within Latin America, Brazil’s lacklustre economic performance continued, with GDP falling in the first quarter of 2015. In addition, currency weakness, political tensions and the investigation into alleged corruption at Petrobrás have also weighed heavily on the region. Consequently, both Brazil’s equity and currency markets were ranked amongst the worst performers in the region during the period. Latterly, Brazil’s government has announced its intention to partner with China to help the country to ramp-up its infrastructure investment and boost economic growth.

More encouragingly, Mexico continues to show signs of improvement, with momentum in its economic reform process increasing and the continuing liberalization of its energy sector. Stronger retail sales, supported by falling unemployment rates and positive trade data all point to an acceleration in economic activity led by stronger manufacturing.

Against this background, the MSCI EM Latin America Index ended the period down by 6.2% in US dollar terms (7.0% in sterling terms). By comparison the Company’s net asset value (NAV) fell by 8.8% in US dollar terms (9.6% in sterling terms) and the share price fell by 10.7% in US dollar terms (11.5% in sterling terms). (All percentages calculated with income reinvested.) Relative performance in the region remains heavily influenced by the choice of whether or not to hold Petrobrás and Vale. Not holding the former, where our Manager continues to have concerns about the balance sheet and the impact of the ongoing corruption investigation, hurt performance in this period but this was partly offset by a lower than market weighting in the latter.

Since 30 June 2015 and up until the close of business on 14 August 2015, the Company’s NAV has decreased by 11.3% in sterling terms and by 11.9% in US dollar terms. The share price has decreased by 10.1% in sterling terms and by 10.8% in US dollar terms (all percentages calculated with income reinvested).

EARNINGS AND DIVIDENDS

The revenue return per share for the period amounted to 13.46 cents (2014: 15.89 cents). The Board is pleased to declare an interim dividend of 15.00 cents per share (2014: 15.00 cents per share), which will be paid on 7 October 2015 to shareholders on the register as at 4 September 2015 (ex-dividend date of 3 September 2015).

DISCOUNT CONTROL

On 23 August 2013 the Board introduced a new discount control policy which in their view is better suited to the longer term interests of the Company and its shareholders. If the bi-annual continuation vote is approved by shareholders on each occasion, and if (i) the Company has underperformed the benchmark index on a US dollar total return basis by more than 1% per annum over the previous two financial years and (ii) if the discount to the cum income NAV has on average exceeded 5% over the same two year period, with effect from the Annual General Meeting to take place in April 2016, the Board will implement a tender offer for 24.99% of the ordinary shares in issue (excluding treasury shares) and the tender price will be the cum income NAV (less 2% to cover the costs of the tender offer). Since 1 January 2014 and up until 13 August 2015 the Company’s NAV has outperformed the benchmark index on a US dollar total return basis by 2.2%.

The Directors continue to monitor the discount at which the ordinary shares trade to their prevailing NAV and in the eighteen months to 30 June 2015 the cum-income discount of the ordinary shares has averaged 10.6% and ranged from 6.4% to 14.1%.

OUTLOOK

Although the slowdown in demand for commodities has hit the region hard in recent years, there remain a number of reasons why optimism about the medium-term future is warranted. Whilst the political environment in Brazil is currently preventing the implementation of much needed structural change, it does now appear that the reform process in Mexico is beginning to bear fruit. Following weak currency and equity markets the valuations of some Brazilian companies now look reasonable, and, if inflation subsides, the prospect of falling real interest rates may well begin to provide a more supportive environment for Brazilian equities. Although Mexican shares are more fully valued, confidence in future earnings prospects is also accelerating. Elsewhere, our Manager continues to find attractive individual opportunities where the outlook is encouraging and where growth prospects are not wholly dependent on the regions’ overall economic performance.

Peter Burnell
Chairman
18 August 2015

INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT

The Chairman’s Statement and the Investment Manager’s Report 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:

-     Performance;

-     Income/dividend;

-     Market (including political risk);

-     Liquidity;

-     Financial;

-     Regulatory; and

-     Operational.

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 2014. A detailed explanation can be found on pages 7 and 8 of the Annual Report and Financial Statements which are available on the website at blackrock.co.uk/brla.

In the view of the Board, there have not been any changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties are equally applicable to the remaining six months of the financial year as they were to the six months under review.

GOING CONCERN

The Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. For this reason they continue to adopt the going concern basis in preparing the financial statements. 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.

RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE INVESTMENT MANAGER

BlackRock Fund Managers Limited (BFM) was appointed as the Company’s AIFM 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 3 and note 10. The related party transactions with the Directors are set out in note 11.

DIRECTORS' RESPONSIBILITY STATEMENT

The Disclosure and Transparency Rules (DTR) 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 and belief that:

-     the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with the Financial Reporting Council’s   
      Standard, FRS 104 ‘Interim Financial Reporting’; and

-     the interim management report, together with the Chairman’s Statement and the 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 and Transparency Rules.

The half yearly financial report has not been audited or reviewed by the Company’s Auditor.

The half yearly financial report was approved by the Board on 18 August 2015 and the above responsibility statement was signed on its behalf by the Chairman.

Peter Burnell
For and on behalf of the Board
18 August 2015

INVESTMENT MANAGER’S REPORT

PERFORMANCE AND MARKET OVERVIEW

During the first six months of 2015 the Company’s NAV per share declined by 8.8% and the share price fell by 10.7%, in US dollar terms (equivalent to a decrease of 9.6% and 11.5%, respectively, in sterling terms). These returns trailed the return from the MSCI Latin America Index over the same time period which posted a -6.2% return in US dollar terms (a fall of 7.0% in sterling terms). Performance during the period suffered as a result of stock selection in Brazil and Peru. The largest individual detractors from performance included a lack of exposure to Petrobrás, overweight positions in Brazilian education stocks Kroton Educacional and Ser, and an overweight position in Grana y Montero in Peru. Offsetting some of the negative contributions were our allocation decisions in Colombia, where we had an underweight position and in Mexico where we had an overweight position. At the stock level, the largest individual contributors to performance included an underweight position in Vale and overweight positions in Walmart de Mexico and Fibria Celulose in Brazil.

Earlier in the year Latin America was impacted by continued currency weakness, lower commodity prices, declining economic growth, the overhang created by the investigation into the alleged corruption at Petrobrás and political tension in Brazil. The Brazilian Real fell by almost 17% during the first quarter, with most of the impact occurring in March. In the commodities market, iron ore was the laggard falling by more than 23% in the early part of the year. However, Latin American equities started the second quarter strongly on the back of a significant rally in oil and iron ore prices. Despite weak economic growth indicators, this strong performance was bolstered by a de-risking in Brazil as political noise fell and Petrobrás released audited financial statements which removed the risk of a technical default. Much of the early gains in the second quarter were pared in May as there was profit taking in global energy stocks following their strong performance in April, growth forecasts were revised downwards across the region and fears of US policy normalisation resurfaced. Late in the period, Latin American equities advanced slightly, mostly as a result of strong performance from Brazil. Even with increasing political tension late in the period, Brazil’s continued commitment to an orthodox policy agenda via higher interest rates, as well as unexpectedly reducing the inflation target band from 2017 onwards, appeared to be well received by the market.

SIX MONTHS TO 30 JUNE 2015 PERFORMANCE FIGURES

Regions/indices	MSCI  country  % change	Local currency  (vs. USD) % change	Local indices % change  in USD
Argentina	+7.5	-6.8	+26.6 (Merval)
Brazil	-10.4	-14.4	-9.1 (Ibovespa)
Chile	-4.8	-5.1	-4.6 (IGPA)
Colombia	-18.4	-8.8	+19.3 (IGBC)
Mexico	-2.3	-6.3	-2.1 (IPC)
Peru	-6.3	-6.3	-9.7 (IGBVL)
MSCI Latin America	-7.7	CRB Index	-2.6
MSCI Emerging Asia	+3.9	Oil (WTI)	+11.6
MSCI Emerging Markets	+1.7	Gold	-1.0
MSCI World	+1.5	Copper	-9.6
S&P 500	+0.2	Corn	+4.3
MSCI Europe	+2.0	Soybeans	+3.6
Sources: MSCI, Bloomberg, UBS and BlackRock (all figures are in US dollar terms on a capital only basis).

During the first half of 2015, Brazil’s equity market was ranked among the worst performers in Latin America. Currency weakness, political tension and uncertainty, increasing macroeconomic headwinds and the investigation into alleged corruption at Petrobrás have all contributed to the weakness in Brazil’s equity market. The Brazilian Central Bank raised interest rates by 200 basis points during the first half of the year bringing the Selic rate to 13.75%, its highest level since December 2008. The door for further rate hikes remains open and this will be dependent on the Brazilian Central Bank’s economic and inflation outlook.

Mexico’s economy has been one of the better performers on a relative basis. With the reform agenda complete, the focus in Mexico has shifted to implementing the auctions for energy projects as well as improving the rate of growth for the domestic economy. Labour markets appear to be on the mend, real wages are increasingly competitive and remittances are surging. These are just some of the areas reflecting the positive outcomes of Mexico’s reforms and the impact they are starting to have on the domestic economy. While valuations in Mexico are at the top end of their historical range, for the first time in a few years Mexico's prospects justify the market valutions. In our opinion, we are at the beginning of a multi-year improvement in the Mexican economy.

In the Andean region, Chile posted the strongest market and local currency returns followed by Peru. Colombia was the laggard and has been negatively impacted by the price of oil. Peru continues to post the strongest economic growth in the region and in Latin America overall.

PORTFOLIO

In Brazil, we maintained over 50% of total investments in the country, with underweight positions in energy, specifically Petrobrás; metals & mining, including Vale, and utilities financing overweight positions in non-bank financials, pulp & paper and fuel distribution. We believe that these areas of the market should perform well despite the current environment. During the period we reduced our exposure to Brazilian banks given the increasing macro headwinds and the higher likelihood of either a reduction in/or elimination of IOC tax deductibility. We began to reduce the underweight position in Vale given attractive valuations and expectations of an improved pricing environment in the medium term. We reduced our exposure to the Brazilian education sector where ongoing uncertainties and budgetary constraints should continue to add pressure to the sector. We also reduced our holding in CBD, due to the announcement of weak first quarter results and fears that this weakness could continue to impact future quarters. Concerns regarding Cosan’s overall strategy led us to reduce our exposure to the stock. We added to our position in credit card acquirer Cielo, given the stock’s defensive characteristics and resilient earnings profile. We also added to high quality industrial Weg, which stands to benefit from currency weakness.

In Mexico, our exposure was a little over 37% of total investments. We initiated a position in Grupo Mexico, given attractive valuations and advances in the proposed listing of the company’s logistics assets. We also participated in the IPO of Grupo GICSA, an attractive play in Mexico’s real estate market. We reduced our exposure in Alfa, given the company’s large investment in Pacific Rubiales, which was negatively impacted by the volatility in the oil price. During the period, we also added to our holdings in banks, with the purchase of Gentera and to real estate, via Vesta.

Elsewhere in the region, we added to our copper exposure via Southern Copper and Antofagasta, given their status as low cost producers and expectations that copper should be one of the first commodities to see a price recovery, due to a lower amount of new production coming on line in the foreseeable future. We also initiated a position in Endesa in Chile, based on attractive valuation and improving hydrology.

OUTLOOK

We enter the second half of 2015 with overweight positions in Mexico and Peru and underweight positions in Brazil, Chile and Colombia.

Overall, the Company remains defensively positioned. Uncertainties regarding the timing and strength of an eventual economic rebound in Brazil and President Rousseff’s low popularity leave us with an underweight position in the region’s largest market. Within Brazil, we favour insurance and fuel distributors and prefer staples over discretionary given the challenging macro environment.

In Mexico we have maintained an overweight position, given the market’s overall defensive characteristics as well as the gradual improving sentiment in the domestic economy. While valuations in Mexico remain high, we are seeing for the first time in a few years the ability of Mexican companies to grow into their multiples, which should mean that they are able to deliver on earnings growth. We prefer the Fibras (similar to real estate investment trusts)/property stocks, construction materials via Cemex and beverages through Femsa. Overall, we believe that the Mexican economy is at the beginning of a multi-year improvement.

Chile and Colombia remain as large underweight positions given the issues with copper and oil prices as well as the negative impacts of fiscal reform still being felt in the local economies. Peru remains an overweight position given attractive valuation levels and expectations of a faster economic recovery vis-à-vis its Andean neighbours. The bulk of our exposure to Peru is through its leading bank Credicorp, which we believe is one of the best ways to participate in the country’s recovery.

The main risk in Brazil is the potential inability of the current administration to execute on reforms. If this happens we would need to reposition the portfolio fairly quickly, but this is not currently our base case. In addition, an unlikely expedient resolution to the investigation into the alleged corruption at Petrobrás as well as its balance sheet issues would necessitate a change in our zero-weight to the stock. In Mexico, the main risk would be the failure of the energy project auctions and a failure for the economic recovery to gather strength.

Will Landers
BlackRock Investment Management (UK) Limited
18 August 2015

GEOGRAPHICAL AND SECTOR ALLOCATIONS
as at 30 June 2015

GEOGRAPHICAL WEIGHTING VS MSCI EM LATIN AMERICA INDEX
 

	Company	MSCI EM Latin America Index
	%	%
Brazil	50.4	52.9
Mexico	37.4	31.6
Peru	7.0	2.8
Chile	3.8	8.6
Colombia	1.4	4.1

Sources: BlackRock and MSCI.

SECTOR ALLOCATION VS MSCI EM LATIN AMERICA INDEX
 

	Company	MSCI EM Latin America Index
	%	%
Financials	32.8	28.7
Consumer Staples	21.8	20.8
Materials	17.3	13.1
Consumer Discretionary	7.2	7.3
Industrials	5.7	5.9
Telecommunication Services	5.5	7.8
Information Technology	2.9	2.5
Energy	2.9	8.1
Utilities	2.6	5.4
Health Care	1.3	0.4

Sources: BlackRock and MSCI.

TEN LARGEST INVESTMENTS
as at 30 June 2015

Itaú Unibanco: 7.2% (2014: 9.4%) is Brazil’s largest private sector bank. We have reduced exposure to Brazilian banks given the macroeconomic headwinds. We continue to prefer private sector banks over government controlled banks.

Banco Bradesco: 6.0% (2014: 7.2%) is Brazil’s second largest private sector bank. While we continue to believe that private banks in Brazil should perform well during this current economic downturn, we have reduced exposure to banks in Brazil due to falling economic activity.

AmBev: 5.5% (2014: 5.3%) is Brazil’s leading beverages company with operations throughout the Americas. The company is well positioned to continue to benefit from its defensive stance as the region’s largest consumer staples producer, while maintaining a strong focus on preserving operating cost discipline throughout its operations, a perennial AmBev management strength.

Cemex SAB: 4.8% (2014: 4.7%) is a Mexican based global cement company that stands to benefit from improving business trends across the world, especially in the US. The company has successfully remodelled its debt profile and is focused on improving operating efficiencies across its plants.

Femsa: 4.7% (2014: 4.3%) is the Mexican holding company that provides an investment vehicle to Mexico’s domestic retail market via its controlling interest in Coca-Cola’s largest independent bottler, Coca-Cola Femsa, with operations throughout Latin America, Mexico’s fastest growing retailing chain, Oxxo, which has over 10,000 convenience stores throughout Mexico and a 12% stake in global brewer Heineken.

BB Seguridade Participaçóes: 4.6% (2014: 4.9%) is the insurance division of Banco do Brasil and has the exclusive rights to sell insurance products throughout the entire Banco do Brasil branch network, which is one of the largest in Brazil.

América Móvil: 3.9% (2014: 4.0%) is Latin America’s leading provider of integrated telecommunications services, with a leading presence in wireless telephony throughout the region as well as in wireline in Mexico and Brazil.

BRF: 3.8% (2014: 4.2%) is Brazil’s largest food producer, with leadership positions in poultry, pork, beef and processed meats. The company is well positioned to benefit from its leadership in the domestic processed foods market as well as in the export market for both in natura as well as processed products.

Credicorp: 3.7% (2014: 4.0%) is Peru’s leading financial institution. It offers a full range of financial services including commercial banking, corporate finance, brokerage and asset management. The company should continue to benefit from being the leader in one of the fastest growing economies in the region.

Grupo Televisa: 3.7% (2014: 3.0%) is Mexico’s leading television broadcasting operator and leading provider of satellite and cable television (giving the company leadership in high speed internet access). Grupo Televisa is also a significant shareholder and main content provider to Univisión, the leading Spanish-language broadcaster in the United States.

All percentages reflect the value of the holding as a percentage of total investments. Percentages in brackets represent the value of the holding at 31 December 2014. Together, the ten largest investments represents 47.9% of total investments (ten largest Investments at 31 December 2014: 51.6%).

INVESTMENTS
30 June 2015

Country of operation	Market  value  US$’000	%  of  investments
Brazil
Itaú Unibanco	17,504	7.2
Banco Bradesco	14,786	6.0
AmBev	13,398	5.5
BB Seguridade Participaçóes	11,293	4.6
BB Seguridade Participaçóes – options	(60)
BRF	9,196	3.8
BRF – option	(3)
Cielo	7,309	2.9
Cielo – options	(110)
Ultrapar Participaçóes	6,364	2.6
Ultrapar Participaçóes – options	(5)
Fibria Celulose	5,906	2.4
Fibria Celulose – options	(14)
Vale	4,441	1.8
Telefonica Brasil – preference shares	3,994	1.6
Klabin	1,778	1.6
Klabin 8% 08/01/19 convertible bondâ€	1,408
Klabin 2.5% 15/06/22 convertible bondâ€	316
Klabin 7.25% 15/06/20 convertible bondâ€	316
Klabin warrants	–
Klabin – options	(5)
Weg	3,065	1.2
Weg – options	(35)
CCR	2,453	1.2
CCR warrants*	576
CCR – option	(3)
Raia Drogasil	2,503	1.0
Raia Drogasil – options	(67)
Hypermarcas	1,384	1.0
Hypermarcas 3% fixed rate debenture 15/10/15â€	408
Hypermarcas warrants*	401
Hypermarcas 11.3% 15/10/18 convertible bondâ€	180
Hypermarcas – options	(8)
Qualicorp	1,863	0.8
TAESA	1,795	0.7
TAESA – options	(3)
Kroton Educacional	1,718	0.7
Arezzo Industria e Comercio	1,702	0.7
Minerva	1,434	0.6
Minerva – options	(31)
OdontoPrev	937	0.6
OdontoPrev warrants*	416
OdontoPrev – option	–
Iguatemi Empresa	1,203	0.5
CBD warrants*	707	0.4
CBD – preference shares	354
Cosan Logistica	906	0.4
Lojas Renner	800	0.3
Lojas Renner – option	(18)
Cosan	740	0.3
Lupatech 6.5% 15/04/18 convertible bondâ€	25	–
	--------	--------
	123,217	50.4
	--------	--------
Mexico
Cemex SAB	11,666	4.8
Cemex SAB – option	(2)
Femsa	11,402	4.7
América Móvil	9,479	3.9
América Móvil – option	(7)
Grupo Televisa	9,009	3.7
Grupo Televisa – options	(29)
Walmart de Mexico	8,660	3.5
Walmart de Mexico – options	(30)
Grupo Financiero Banorte	8,105	3.3
Grupo Financiero Banorte – options	(19)
Grupo Mexico	5,849	2.4
Grupo Mexico – options	(14)
Alfa	3,357	1.4
Administradora Industrial	3,372	1.4
Administradora Industrial – options	(16)
Gentera SAB	3,361	1.4
Gentera SAB – options	(14)
Fibra Uno Administracion	3,230	1.3
Corporacion Inmobiliaria Vesta	3,048	1.2
Infraestructura Energetica	2,398	1.0
Infraestructura Energetica – option	–
Concentradora Fibra Hotelera	1,764	0.7
Arca Continental	1,337	0.5
Arca Continental – option	–
Grupo Sanborns	1,229	0.5
Grupo Sanborns – options	(4)
Grupo GICSA	1,215	0.5
Alsea	1,070	0.4
Alsea – options	(5)
Controladora Vuela Compania de Aviacion	1,054	0.4
Grupo Aeroportuario del Pacifico	994	0.4
Grupo Aeroportuario del Pacifico – options	(2)
	--------	--------
	91,457	37.4
	--------	--------
Peru
Credicorp	9,031	3.7
Southern Copper	4,022	1.6
Southern Copper – option	(2)
Minas Buenaventura	2,769	1.1
Grana y Montero	1,349	0.6
	--------	--------
	17,169	7.0
	--------	--------
Chile
Corpbanca	2,496	1.0
Antofagasta	2,330	1.0
S.A.C.I. Falabella	2,296	0.9
Empresa Nacional de Electricidad	2,250	0.9
	--------	--------
	9,372	3.8
	--------	--------
Colombia
Grupo Nutresa	1,921	0.8
Cemex Latam	1,428	0.6
	--------	--------
	3,349	1.4
	--------	--------
Total investments	244,564	100.0
	--------	--------
Represented as follows:
Investments held at fair value through profit and loss	245,070	100.2
Derivative financial instruments: written call options	(506)	(0.2)
	--------	--------
Total	244,564	100.0
	======	=====

† Unquoted securities.

* Outperformance warrants held are linked to the underlying listed securities which have available quoted prices, however, the warrants are not listed in their own right. The valuation of outperformance warrants has been derived from the quoted prices of underlying securities.

The negative valuations of US$506,000 (31 December 2014: US$249,000) in respect of options held represent the notional cost of repurchasing the contracts at market prices as at 30 June 2015.

The total number of investments (excluding call options and outperformance warrants) held as at 30 June 2015 was 62 (31 December 2014: 62). As at 30 June 2015, the Company did not hold any equity interests comprising more than 3% of any company’s share capital.

All investments are in equity shares unless otherwise stated.

INCOME STATEMENT
for the six months ended 30 June 2015

	Notes	Revenue US$’000 Six  months  ended  30.06.15  (unaudited)	Revenue US$’000 Six  months  ended  30.06.14  (unaudited)	Revenue US$’000 Year  ended  31.12.14  (audited)	Capital US$’000 Six  months  ended  30.06.15  (unaudited)	Capital US$’000 Six  months  ended  30.06.14  (unaudited)	Capital US$’000 Year  ended  31.12.14  (audited)	Total US$’000 Six  months  ended  30.06.15  (unaudited)	Total US$’000 Six  months  ended  30.06.14  (unaudited)	Total US$’000 Year  ended  31.12.14  (audited)
(Losses)/gains on investments held at fair value through profit or loss		–	–	–	(28,532)	23,868	(38,031)	(28,532)	23,868	(38,031)
(Losses)/gains on foreign exchange		–	–	–	(637)	(653)	149	(637)	(653)	149
Income from investments held at fair value through profit or loss	2	4,887	6,561	10,435	–	–	–	4,887	6,561	10,435
Other income	2	1,671	1,796	5,335	–	–	–	1,671	1,796	5,335
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Total income		6,558	8,357	15,770	(29,169)	23,215	(37,882)	(22,611)	31,572	(22,112)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Expenses
Investment management and performance fees	3	(257)	(343)	(658)	(773)	(1,028)	(1,975)	(1,030)	(1,371)	(2,633)
Other operating expenses	4	(489)	(620)	(1,051)	(27)	(33)	(41)	(516)	(653)	(1,092)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Total operating expenses		(746)	(963)	(1,709)	(800)	(1,061)	(2,016)	(1,546)	(2,024)	(3,725)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit/(loss) on ordinary activities before finance costs and taxation		5,812	7,394	14,061	(29,969)	22,154	(39,898)	(24,157)	29,548	(25,837)
Finance costs		(2)	(16)	(26)	(6)	(48)	(77)	(8)	(64)	(103)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit/(loss) on ordinary activities before taxation		5,810	7,378	14,035	(29,975)	22,106	(39,975)	(24,165)	29,484	(25,940)
Taxation		(509)	(1,124)	(1,651)	159	219	479	(350)	(905)	(1,172)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Net profit/(loss) on ordinary activities after taxation		5,301	6,254	12,384	(29,816)	22,325	(39,496)	(24,515)	28,579	(27,112)
		--------	--------	--------	--------	--------	--------	--------	--------	--------
Earnings/(loss) per ordinary share (US$ cents)	8	13.46	15.89	31.46	(75.73)	56.70	(100.32)	(62.27)	72.59	(68.86)
		=====	====	====	====	====	=====	====	====	=====

The total column of this statement represents the Company’s Profit and Loss account. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations and no operations were acquired or discontinued during the period. All income is attributable to the equity holders of BlackRock Latin American Investment Trust plc.

The Company does not have any other recognised gains or losses. The net profit/(loss) for the period disclosed above represents the Company’s total comprehensive income.

STATEMENT OF CHANGES IN EQUITY
for the six months ended 30 June 2015

	Called up  share  capital  US$’000	Share  premium  account  US$’000	Capital  redemption  reserve  US$’000	Non-  distributable  reserve  US$’000	Capital  reserves  US$’000	Revenue  reserve  US$’000	Total  US$’000
For the six months ended 30 June 2015 (unaudited)
At 31 December 2014	4,144	11,719	4,843	4,356	236,187	15,174	276,423
Total comprehensive income:
(Loss)/profit for the period	–	–	–	–	(29,816)	5,301	(24,515)
Transaction with owners, recorded directly to equity:
Dividends paid(1)	–	–	–	–	–	(5,905)	(5,905)
	--------	--------	--------	--------	--------	--------	--------
At 30 June 2015	4,144	11,719	4,843	4,356	206,371	14,570	246,003
	--------	--------	--------	--------	--------	--------	--------
For the six months ended 30 June 2014 (unaudited)
At 31 December 2013	4,144	11,719	4,843	4,356	275,683	14,600	315,345
Total comprehensive income:
Profit for the period	–	–	–	–	22,325	6,254	28,579
Transaction with owners, recorded directly to equity:
Dividends paid(2)	–	–	–	–	–	(5,905)	(5,905)
	--------	--------	--------	--------	--------	--------	--------
At 30 June 2014	4,144	11,719	4,843	4,356	298,008	14,949	338,019
	--------	--------	--------	--------	--------	--------	--------
For the year ended 31 December 2014 (audited)
At 31 December 2013	4,144	11,719	4,843	4,356	275,683	14,600	315,345
Total comprehensive income:
(Loss)/profit for the period	–	–	–	–	(39,496)	12,384	(27,112)
Transaction with owners, recorded directly to equity:
Dividends paid(3)	–	–	–	–	–	(11,810)	(11,810)
	--------	--------	--------	--------	--------	--------	--------
At 31 December 2014	4,144	11,719	4,843	4,356	236,187	15,174	276,423
	=====	=====	=====	=====	======	=====	======
1.   Final dividend in respect of the year ended 31 December 2014 of 15.00 cents per share declared on 27 February       2015 and paid on 6 May 2015. 2.   Second interim dividend in respect of the year ended 31 December 2013 of 15.00 cents per share declared on 25       February 2014 and paid on 2 May 2014. 3.   Second interim dividend paid in respect of the year ended 31 December 2013 of 15.00 cents per share declared on       25 February 2014 and paid on 2 May 2014 and interim dividend for the year ended 31 December 2014 of 15.00        cents per share declared on 20 August 2014 and paid on 3 October 2014. The transaction costs incurred on the acquisition and disposal of investments are included within the capital reserves and amounted to US$170,000 for the six months ended 30 June 2015 (period ended 30 June 2014 US$519,000; year ended 31 December 2014 US$685,000).

BALANCE SHEET
as at 30 June 2015

	Notes	30 June 2015  US$’000  (unaudited)	30 June 2014  US$’000  (unaudited)	31 December 2014  US$’000  (audited)
Fixed assets
Investments held at fair value through profit or loss		245,070	346,383	274,576
		--------	--------	--------
Current assets
Other receivables		2,224	7,062	1,117
Cash and cash equivalents		3,392	2,097	4,104
Collateral pledged with brokers		989	3,215	677
		--------	--------	--------
		6,605	12,374	5,898
		--------	--------	--------
Current liabilities – amounts falling due within one year
Bank overdraft		(1,355)	(10,208)	(1,177)
Derivative financial instruments		(506)	(1,040)	(249)
Other payables		(3,560)	(9,186)	(2,372)
		--------	--------	--------
		(5,421)	(20,434)	(3,798)
		--------	--------	--------
Net current assets/(liabilities)		1,184	(8,060)	2,100
		--------	--------	--------
Total assets less current liabilities		246,254	338,323	276,676
		--------	--------	--------
Creditors – amounts falling due after more than one year
Deferred tax liability	6	(227)	(280)	(229)
Non equity redeemable shares	6	(24)	(24)	(24)
		--------	--------	--------
		(251)	(304)	(253)
		--------	--------	--------
Net assets		246,003	338,019	276,423
		--------	--------	--------
Capital and reserves
Called up share capital	7	4,144	4,144	4,144
Share premium account		11,719	11,719	11,719
Capital redemption reserve		4,843	4,843	4,843
Non-distributable reserve		4,356	4,356	4,356
Capital reserves		206,371	298,008	236,187
Revenue reserve		14,570	14,949	15,174
		--------	--------	--------
Total shareholders’ funds		246,003	338,019	276,423
		--------	--------	--------
Net asset value per ordinary share (US$ cents)	8	624.85	858.58	702.12
		======	======	======

CASH FLOW STATEMENT
for the six months ended 30 June 2015

	Six  months  ended  30 June 2015  US$’000  (unaudited)	Six  months  ended  30 June 2014  US$’000  (unaudited)	Year  ended  31 December 2014  US$’000  (audited)
Operating activities
(Loss)/profit before taxation	(24,165)	29,484	(25,940)
Add back interest paid	8	64	103
Losses/(gains) on investments held at fair value	28,532	(23,868)	38,031
Net movement on foreign exchange	637	653	(149)
Sales of investments held at fair value through profit or loss	47,835	89,474	199,499
Purchases of investments held at fair value through profit or loss	(47,638)	(87,147)	(186,028)
Decrease in other receivables	334	672	463
Net movement in collateral pledged with brokers	(312)	(1,691)	847
Increase/(decrease) in other payables	781	1,255	(692)
	--------	--------	--------
Net cash inflow from operating activities before interest and taxation	6,012	8,896	26,134
	--------	--------	--------
Interest paid	(8)	(64)	(102)
Taxation on investment income included within gross income	(352)	(447)	(1,506)
	--------	--------	--------
Net cash inflow from operating activities	5,652	8,385	24,526
	--------	--------	--------
Financing activities
Dividends paid	(5,905)	(5,905)	(11,810)
	--------	--------	--------
Net cash outflow from financing activities	(5,905)	(5,905)	(11,810)
	--------	--------	--------
Increase in cash and cash equivalents	(253)	2,480	12,716
	--------	--------	--------
Cash and cash equivalents at the start of the period	2,927	(9,938)	(9,938)
Effect of foreign exchange rate changes	(637)	(653)	149
	--------	--------	--------
Cash and cash equivalents at end of period	2,037	(8,111)	2,927
	--------	--------	--------
Comprised of:
Cash and cash equivalents	3,392	2,097	4,104
Bank overdraft	(1,355)	(10,208)	(1,177)
	--------	--------	--------
	2,037	(8,111)	2,927
	=====	=====	=====

NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 30 June 2015
 

1. Principal activity and basis of preparation

The Company conducts its business so as to qualify as an investment trust company within the meaning of sub-sections 1158-1165 of the Corporation Tax Act 2010.

This is the first year that the Company has presented its results and financial position under FRS 102, ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102), which forms part of the revised Generally Accepted Accounting Practice (New UK GAAP) issued by the Financial Reporting Council (FRC) in 2013. The last financial statements prepared under the previous UK GAAP were for the year ended 31 December 2014.

The condensed set of financial statements has been prepared on a going concern basis in accordance with FRS 102 and ‘Interim Financial Reporting’ (FRS 104) issued by the FRC in March 2015 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 November 2014.

As a result of the first time adoption of New UK GAAP and the revised SORP, comparative amounts and presentation formats have been amended where required. The changes to accounting policies relate to the change in the presentation of cash flows (see below) and fair value hierarchy of financial instruments (see note 9) and there were no adjustments to the Company’s income statement for the financial year ended 31 December 2014 and the total equity as at 1 January 2014 and 31 December 2014 between UK GAAP as previously reported and FRS 102 as a result of changes to accounting policies. There were no adjustments to the Company’s balance sheet at 1 January 2014 or 31 December 2014 on transition to FRS 102.

The Company’s cash flow statement reflects the presentation requirements of FRS 102, which are different to that prepared under FRS 1. In addition, the cash flow statement reconciles to cash and cash equivalents whereas under previous UK GAAP the cash flow statement reconciled to cash. Cash and cash equivalents are defined in FRS 102 as ‘cash on hand and demand deposits and short term highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value’ whereas cash is defined in FRS 1 as ‘cash in hand and deposits repayable on demand with any qualifying institution, less overdrafts from any qualifying institution repayable on demand’. The FRS 1 definition is more restrictive. Accordingly, cash collateral pledged with brokers is shown as a debtor and does not form part of cash and cash equivalents in the Cash Flow Statement. The comparative figures in the Cash Flow Statement have been updated to reclassify these amounts from cash and cash equivalents to debtors.

The accounting policies applied for the condensed set of financial statements with regard to measurement and classification are as set out in the Company’s Annual Report and Financial Statements for the year ended 31 December 2014. This reflects the Company’s application of Sections 11 and 12 of FRS 102, in relation to financial instruments, in full. References to prior, individual Financial Reporting Statements (FRS) should now be taken as reference to FRS 102.

2. Income

	Six  months  ended  30 June 2015  US$’000  (unaudited)	Six  months  ended  30 June 2014  US$’000  (unaudited)	Year  ended  31 December 2014  US$’000  (audited)
Investment income:
Overseas dividends	3,060	5,956	9,562
REIT distributions	239	246	530
Special dividends	413	124	175
Stock dividends	1,337	–	–
Outperformance warrants	42	204	193
Reversal of over accrual of prior periods	(150)	–	–
Interest income	14	31	52
Amortisation of fixed interest investments	(68)	–	(77)
	--------	--------	--------
	4,887	6,561	10,435
	--------	--------	--------
Other income:
Option premium income	1,671	1,790	5,319
Deposit interest	–	6	16
	--------	--------	--------
Total	6,558	8,357	15,770
	=====	====	===+=

During the period, the Company received option premium income totalling US$1,798,000 (six months ended 30 June 2014: US$1,983,000; year ended 31 December 2014: US$5,311,000) for writing covered call options for the purposes of revenue generation, of which US$1,671,000 (six months ended 30 June 2014: US$1,790,000; year ended 31 December 2014: US$5,319,000) was taken to income. All derivative transactions were based on constituent stocks in the MSCI EM Latin America Index. At 30 June 2015, there were 62 open option positions with an associated liability of US$506,000 (six months ended 30 June 2014: 41 open option positions and associated liability of US$1,040,000; year ended 31 December 2014: 44 open option positions and associated liability of US$249,000).

The Company also participated in outperformance warrants contracts in 6 securities during the period (six months ended 30 June 2014: 3 securities; year ended 31 December 2014: 8 securities) which generated income of US$42,000 (six months ended 30 June 2014: US$204,000; year ended 31 December 2014: US$193,000). During the six months period ended 30 June 2015, over accrual of US$150,000 has been reversed.

3. Investment management and performance fees

The investment management fee has been calculated at 0.85% per annum of the NAV. The Manager is also entitled to a performance fee equal to 10% of any outperformance of the NAV per share against the benchmark, the MSCI EM Latin America Index (in US dollar terms on a total return basis) plus a hurdle of 1%. The performance fee is capped at 1% of NAV.

No performance fee was payable in respect of the six months ended 30 June 2015, six months ended 30 June 2014 or the year ended 31 December 2014.

The total fee currently payable to BlackRock in any twelve month period is limited to 4.99% of the NAV. However, as BlackRock is only entitled to a basic fee of 0.85% of the NAV and the performance fee is capped at 1.0% of the NAV, the amount paid to BlackRock by the Company in respect of fees in any twelve month period is expected to be substantially lower than 4.99% of the NAV.

	Six months ended 30 June 2015 (unaudited) Revenue  US$’000	Six months ended 30 June 2015 (unaudited) Capital  US$’000	Six months ended 30 June 2015 (unaudited) Total  US$’000	Six months ended 30 June 2014 (unaudited) Revenue  US$’000	Six months ended 30 June 2014 (unaudited) Capital  US$’000	Six months ended 30 June 2014 (unaudited) Total  US$’000	Year ended 31 December 2014 (audited) Revenue  US$’000	Year ended 31 December 2014 (audited) Capital  US$’000	Year ended 31 December 2014 (audited) Total  US$’000
Investment management fee	257	773	1,030	343	1,028	1,371	658	1,975	2,633
	=====	=====	=====	=====	=====	=====	=====	=====	=====

4. Operating expenses

	Six  months  ended  30 June 2015  US$’000  (unaudited)	Six  months  ended  30 June 2014  US$’000  (unaudited)	Year  ended  31 December 2014  US$’000  (audited)
Custody fee	34	55	104
Depositary fees	15	–	18
Audit fee	25	28	47
Registrar’s fees	24	26	53
Directors’ emoluments – fees for services to the Company	137	169	268
Marketing fees	99	127	256
Other administration costs	155	215	305
	--------	--------	--------
	489	620	1,051
	--------	--------	--------
Transaction charge – capital	27	33	41
	--------	--------	--------
	516	653	1,092
	====	====	====
A significant proportion of the Company’s operating expenses are paid in sterling and are therefore subject to exchange rate fluctuations.

5. Dividends

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.

The Board has declared an interim dividend of 15.00 cents (2014: 15.00 cents) payable on 7 October 2015 to shareholders on the register as at 4 September 2015. The total cost of this dividend, based on 39,369,620 ordinary shares in issue at 18 August 2015 is US$5,905,000 (30 June 2014: 39,369,620 shares and total cost of US$5,905,000).

6. Creditors – amount falling due after more than one year

	Six  months  ended  30 June 2015  US$’000  (unaudited)	Six  months  ended  30 June 2014  US$’000  (unaudited)	Year  ended  31 December 2014  US$’000  (audited)
Deferred tax liability	227	280	229
Non equity redeemable shares	24	24	24
	--------	--------	--------
	251	304	253
	=====	=====	=====

Non equity redeemable shares

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.

7. Called up share capital

	Ordinary  shares  number	Treasury  shares  number	Total  shares  number	Nominal  value  US$’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 10 cents each
	--------------	-------------	--------------	--------
At 1 January 2015	39,369,620	2,071,662	41,441,282	4,144
	--------------	-------------	--------------	--------
At 30 June 2015	39,369,620	2,071,662	41,441,282	4,144
	========	========	========	=====

There was no change in share capital in the period.

8. Earnings and net asset value per ordinary share

	30 June 2015 (unaudited)	30 June 2014  (unaudited)	31 December 2014  (audited)
Net revenue profit attributable to ordinary shareholders (US$’000)	5,301	6,254	12,384
	--------	--------	--------
Net capital (loss)/profit attributable to ordinary shareholders (US$’000)	(29,816)	22,325	(39,496)
	--------	--------	--------
Total (loss)/profit attributable to ordinary shareholders (US$’000)	(24,515)	28,579	(27,112)
	--------	--------	--------
Equity shareholders’ funds (US$’000)	246,003	338,019	276,423
	--------	--------	--------
The weighted average number of ordinary shares in issue during the period on which the basic return per ordinary share was calculated was:	39,369,620	39,369,620	39,369,620
	--------------	---------------	--------------
The actual number of ordinary shares in issue at the end of each period on which the undiluted net asset value was calculated was:	39,369,620	39,369,620	39,369,620
	--------------	---------------	--------------
Basic earnings per share
Revenue earnings per share	13.46	15.89	31.46
	--------	--------	--------
Capital earnings per share	(75.73)	56.70	(100.32)
	--------	--------	--------
Total earnings per share	(62.27)	72.59	(68.86)
	--------	--------	--------
Net asset value per share	624.85	858.58	702.12
	--------	--------	--------
Ordinary share price (mid-market)*	542.62	776.34	624.50
	=====	=====	=====
*   The Company’s share price is quoted in sterling and the above represents the US dollar equivalent.

Basic and diluted earnings per share and net asset value per share are the same as the Company does not have any dilutive securities outstanding.

9. Valuation of financial instruments

The Company’s investments and derivative financial instruments, as disclosed in the Company’s Balance Sheet, are valued at fair value.

In accordance with FRS 102 the fair value as at the reporting date has been estimated using the following fair value hierarchy:

Level (a) Quoted prices for identical instruments in active markets

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly 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.

Level (b) Prices of a recent transaction for identical instruments

When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place.

Level (c) Valuation techniques that use:

(i)   Observable market data; or

(ii)  Non-observable data

When the market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate, the fair value is estimated by using an alternative valuation technique. Such valuation techniques will, where possible, maximise the use of observable market data inputs as opposed to non-observable entity determined data inputs.

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 analysis of the valuation basis for the financial instruments based on the hierarchy as at 30 June 2015 is set out below. 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 in its entirety.

Financial assets at fair value through profit or loss as at 30 June 2015	Level  (a) US$’000	Level  (b)  US$’000	Level  (c) (i)  US$’000	Level  (c) (ii)  US$’000	Total  US$’000
Equity investments	242,417	–	–	–	242,417
Derivative instruments – call options	–	–	(506)	–	(506)
Fixed interest investments	588	–	657	1,408	2,653
	--------	--------	--------	--------	--------
Total	243,005	–	151	1,408	244,564
	======	=====	=====	=====	======

Financial assets at fair value through profit or loss as at 30 June 2014	Level  (a) US$’000	Level  (b)  US$’000	Level  (c) (i)  US$’000	Level  (c) (ii)  US$’000	Total  US$’000
Equity investments	343,477	–	–	–	343,477
Derivative instruments – call options	–	–	(1,040)	–	(1,040)
Fixed interest investments	875	–	46	1,985	2,906
	--------	--------	--------	--------	--------
Total	344,352	–	(994)	1,985	345,343
	======	=====	=====	=====	======

Financial assets at fair value through profit or loss as at 31 December 2014	Level  (a) US$’000	Level  (b)  US$’000	Level  (c) (i)  US$’000	Level  (c) (ii)  US$’000	Total  US$’000
Equity investments	271,633	–	–	–	271,633
Derivative instruments – call options	–	–	(249)	–	(249)
Fixed interest investments	706	–	591	1,646	2,943
	--------	--------	--------	--------	--------
Total	272,339	–	342	1,646	274,327
	========	========	========	========	========

For exchange listed equity investments the quoted price is the bid price. Written options have been valued based on market observable inputs represented by the underlying quoted securities to which these contracts expose the Company.

For fixed interest investments, for those denominated in level (c) (i), valuation is based on evaluated prices from third party pricing vendors which are based on a variety of sources including broker quotes and benchmarks.

The unquoted fixed asset investments, as shown in level (c) (ii) have been valued based on the Directors’ best estimate based on latest information in line with the principles of the International Private and Venture Capital Valuation Guidelines.

10. Transaction with the AIFM and the Investment Manager

BlackRock Investment Management (UK) Limited (BIM (UK)) provided management and administration services to the Company until 2 July 2014. BlackRock Fund Managers Limited (BFM) was appointed as the Company’s Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BIM (UK) continues to act as the Company’s Investment Manager under a delegation agreement with BFM. Details of the fees payable in relation to these services are set out in note 3.

The investment management fee for the six months ended 30 June 2015 amounted to US$1,030,000 (six months ended 30 June 2014: US$1,371,000; year ended 31 December 2014: US$2,633,000). No performance fee was payable for the six months ended 30 June 2015 or the six months ended 30 June 2014 or the year ended 31 December 2014.

At the period end, a total amount of US$1,036,000 was outstanding in respect of these fees (six months ended 30 June 2014: US$2,048,000; year ended 31 December 2014: US$598,000).

In addition to the above services, with effect from 1 November 2013, BlackRock has provided the Company with marketing services. The total fees paid or payable for these services for the period ended 30 June 2015 amounted to US$99,000 excluding VAT (six months ended 30 June 2014: US$127,000; year ended 31 December 2014: US$256,000). As at 30 June 2015 US$355,000 (30 June 2014: US$165,000; 31 December 2014: US$256,000) was outstanding in respect of these fees.

11. Related party disclosure

The Board consists of five non-executive Directors, all of whom are considered to be independent by the Board. None of the Directors has a service contract with the Company. With effect from 1 January 2015, the Chairman receives an annual fee of £45,000 (US$70,772), the Chairman of the Audit Committee/Senior Independent Director receives an annual fee of £34,000 (US$53,472) and each of the other Directors receives an annual fee of £30,000 (US$47,181).

At the period end members of the Board held ordinary shares in the Company as set out below:

	Ordinary shares
Peter Burnell (Chairman)	3,000
Mahrukh Doctor	650
Antonio Monteiro de Castro	47,000
Michael St Aldwyn	1,470
Laurence Whitehead	15,203

12. Contingent liabilities

There were no contingent liabilities at 30 June 2015, 30 June 2014 or 31 December 2014.

13. 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 2015 and 30 June 2014 has not been audited or reviewed.

The information for the year ended 31 December 2014 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies, unless otherwise stated. The report of the Auditor on those financial statements contained no qualification or statement under sections 498(2) or (3) of the Companies Act 2006.

14. Annual results

The Board expects to announce the annual results for the year ending 31 December 2015 as prepared under New UK GAAP in March 2016. Copies of the results announcement can be obtained from the Secretary on 020 7743 3000. The Annual Report and Financial Statements should be available by early March 2016, with the Annual General Meeting being held in April 2016.

For further information, please contact:

Simon White, Managing Director, Investment Trusts, BlackRock Investment Management (UK) Limited
Tel: [phone]

Peter Burnell – Chairman
Tel: [phone]

Emma Phillips, Media & Communication, BlackRock Investment Management (UK) Limited
Tel: [phone]

Ali Boyle, Media & Communication, BlackRock Investment Management (UK) Limited
Tel: [phone]

Henrietta Guthrie, Lansons Communications
Tel: [phone]

18 August 2015
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.co.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.