UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06349
Name of Fund: BlackRock Latin America Fund, Inc.
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive
Officer, BlackRock Latin America Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 11/30/2008
Date of reporting period: 12/01/2007 - 05/31/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
BlackRock Latin America BLACKROCK
Fund, Inc.
SEMI-ANNUAL REPORT
MAY 31, 2008 | (UNAUDITED)
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
- --------------------------------------------------------------------------------
A Letter to Shareholders ................................................. 3
Semi-Annual Report:
Fund Summary ............................................................. 4
About Fund Performance ................................................... 6
Disclosure of Expenses ................................................... 6
Portfolio Summary ........................................................ 7
Financial Statements:
Consolidated Schedule of Investments ................................. 8
Consolidated Statement of Assets and Liabilities ..................... 11
Consolidated Statement of Operations ................................. 12
Consolidated Statements of Changes in Net Assets ..................... 13
Consolidated Financial Highlights ........................................ 14
Notes to Consolidated Financial Statements (Unaudited) ................... 18
Officers and Directors ................................................... 23
Additional Information ................................................... 24
Mutual Fund Family ....................................................... 26
2 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
A Letter to Shareholders
Dear Shareholder
For much of the reporting period, investors grappled with the repercussions of
the credit crisis that surfaced last summer, and with the effects of a weakening
economy and surging energy and food prices. These factors were offset by the
positive impact from robust export activity, strength in the non-financial
corporate sector and monetary and fiscal stimuli.
Amid the market turbulence, the Federal Reserve Board (the "Fed") initiated a
series of moves to restore liquidity and bolster financial market stability.
Since September 2007, the central bank slashed the target federal funds rate 325
basis points (3.25%), bringing the rate to 2.0% as of period-end. Also of
significance were its other policy decisions, which included extending use of
the discount window to broker-dealers and investment banks and backstopping the
rescue of ill-fated Bear Stearns. Notably, on April 30, the Fed dropped previous
references to downside growth risks and added more emphasis on inflationary
pressures, indicating the central bankers have likely concluded the current
cycle of monetary easing.
Nevertheless, the Fed's response to the financial crisis helped to ease credit
turmoil and investor anxiety. Since hitting a low point on March 17, following
the collapse of Bear Stearns, stocks appreciated 10% (through May 30). Most
international markets, which had outperformed U.S. stocks for some time, saw a
reversal in that trend, as the troubled credit situation and downward pressures
on growth fanned recession fears.
In fixed income markets, Treasury securities rallied (yields fell as prices
correspondingly rose), as a broad "flight-to-quality" theme persisted. The yield
on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level
in five years), fell to a low of 3.34% in March 2008 before rising to 4.06% by
May 31 as investors grew more risk tolerant and shifted out of Treasury issues
in favor of stocks and other high-quality fixed income sectors. Tax-exempt
issues underperformed throughout most of the reporting period, pressured by
problems among municipal bond insurers and the freeze in the market for auction
rate securities. However, the final two months saw a firmer tone in the
municipal market, as investors took advantage of unusually high yields.
On the whole, results for the major benchmark indexes generally reflected
heightened investor risk aversion:
Total Returns as of May 31, 2008 6-month 12-month
===========================================================================================================
U.S. equities (S&P 500 Index) (4.47%) (6.70%)
- -----------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) (1.87) (10.53)
- -----------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) (5.21) (2.53)
- -----------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Index) 1.49 6.89
- -----------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) 1.44 3.87
- -----------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) 1.81 (1.08)
- -----------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only.
You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
we invite you to visit www.blackrock.com/funds. As always, we thank you for
entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary
Portfolio Management Commentary
How did the Fund perform?
o Fund results underperformed that of the benchmark MSCI Emerging Markets
Latin America Index for the six-month period ended May 31, 2008.
What factors influenced performance?
o Stock selection in Brazil was the main detractor from Fund performance
during the semi-annual period. In particular, underweight positions in
energy giant Petroleo Brasileiro SA and steelmaker Gerdau SA and an
overweight position in beverage company Cia de Bebidas das Americas
hampered relative returns. In Mexico, an overweight position in
pan-regional wireless provider America Movil, SA de Cv also detracted from
results.
o Conversely, underweight positions in Peru and Mexico, as well as stock
selection in Colombia, enhanced comparative performance. The Fund's
overweight in Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA
and Mexican homebuilder Desarrolladora Homex, SA de Cv and an underweight
position in Mexican materials Cemex, SA de Cv proved most advantageous.
Describe recent portfolio activity.
o During the period, we increased the Fund's weighting in Brazil at the
expense of Mexico and Chile. We also initiated a position in Peru for the
first time in a number of quarters. The local economy has been booming
thanks to the strength in commodity prices, which led us to initiate a
position in Credicorp Ltd., the country's largest bank. On a sector basis,
we increased Fund exposure to financials, energy and industrials.
o We reduced the Fund's exposure to consumer sectors, primarily in Mexico,
given concerns about the economic slowdown in the United States, Mexico's
largest export partner. We also trimmed exposure to airlines, especially
in Chile.
Describe Fund positioning at period-end.
o At May 31, 2008, the Fund's major position remains an overweight in
Brazil, which represented close to 72% of assets. At the end of April,
Standard & Poor's upgraded Brazil's credit rating and Fitch followed suit
with an upgrade in May. Over time, this should encourage further
investments to flow into the Brazilian financial market. Inflation
expectations continue to rise in Brazil (as is the case with most of the
world), and the central bank's tightening cycle may last longer than
originally estimated. Our first-hand research in Brazil leads us to
believe that the country's economy should continue to perform well, even
if the SELIC rate (the central bank's overnight lending rate) ends the
year closer to 14% rather than the 13.5% - 14% we previously estimated.
o Our concerns regarding Mexican economic growth continue, however, higher
oil prices are undoubtedly helping to minimize the impact of the U.S.
slowdown on the Mexican economy. We have maintained an underweight in
Mexico at approximately 17.5% of assets, as we have not yet found an ideal
opportunity to increase our position.
o Finally, Chile remains an underweight, given high valuations and concerns
regarding the economy. Chile's gross domestic product is expected to see
its slowest growth in five years, while inflation should be at its
highest.
The views expressed reflect the opinions of BlackRock as of the date of this
report and are subject to change based on changes in market, economic or other
conditions. These views are not intended to be a forecast of future events and
are no guarantee of future results.
4 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional
and Investor A Shares compared to growth of an investment in the MSCI EM Latin
America Index. Values are from May 1998 to May 2008.
MSCI EM
Institutional Investor A Latin America
Shares(1,2) Shares(1,2) Index(3)
5/98 $10,000 $9,475 $10,000
5/99 $8,811 $8,333 $9,522
5/00 $10,807 $10,193 $10,668
5/01 $11,354 $10,689 $10,824
5/02 $10,475 $9,831 $9,901
5/03 $9,762 $9,139 $9,458
5/04 $13,318 $12,436 $12,895
5/05 $21,456 $19,990 $20,125
5/06 $33,834 $31,434 $30,582
5/07 $56,727 $52,588 $50,471
5/08 $77,894 $72,016 $72,829
1 Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
2 The Fund invests primarily in Latin American equity and debt securities.
3 This unmanaged market capitalization-weighted Index by Morgan Stanley
Capital International is comprised of a representative sampling of stocks
of large-, medium- and small-capitalization companies in Argentina,
Brazil, Chile and Mexico, which are freely purchasable by foreign
investors.
Performance Summary for the Period Ended May 31, 2008
Average Annual Total Returns 1
-------------------------------------------------------------
1 Year 5 Years 10 Years
------------------ ------------------ ------------------
6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
Total Returns charge charge charge charge charge charge
- -----------------------------------------------------------------------------------------------------------------------
Institutional ........................... 17.81% 37.31% -- 51.49% -- 22.79% --
Investor A .............................. 17.65 36.94 29.75% 51.11 49.49% 22.49 21.83%
Investor B .............................. 17.19 35.85 31.35 49.94 49.86 21.70 21.70
Investor C .............................. 17.20 35.87 34.87 49.95 49.95 21.52 21.52
MSCI EM Latin America Index ............. 20.08 44.30 -- 50.42 -- 21.96 --
- -----------------------------------------------------------------------------------------------------------------------
1 Assuming maximum sales charges. See "About Fund Performance" on page 6 for
a detailed description of share classes, including any related sales
charges and fees.
Past performance is not indicative of future results.
Expense Example
Actual Hypothetical 2
------------------------------------------------------ -----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
December 1, 2007 May 31, 2008 During the Period 1 December 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional .......... $1,000 $1,178.10 $ 6.66 $1,000 $1,018.78 $ 6.17
Investor A ............. $1,000 $1,176.50 $ 8.06 $1,000 $1,017.49 $ 7.47
Investor B ............. $1,000 $1,171.90 $12.42 $1,000 $1,013.46 $11.51
Investor C ............. $1,000 $1,172.00 $12.26 $1,000 $1,013.61 $11.36
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.23% for Institutional, 1.49% for Investor A, 2.30%
for Investor B and 2.27% for Investor C), multiplied by the average
account value over the period, multiplied by 182/366 (to reflect the
one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
See "Disclosure of Expenses" on page 6 for further information on how
expenses were calculated.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 5
About Fund Performance
o Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only
to eligible investors.
o Investor A Shares incur a maximum initial sales charge (front-end load) of
5.25% and a service fee of 0.25% per year (but no distribution fee).
o Investor B Shares are subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately eight years. (There is no initial sales charge
for automatic share conversions.) All returns for periods greater than
eight years reflect this conversion.
o Investor C Shares are subject to a distribution fee of 0.75% per year and
a service fee of 0.25% per year. In addition, Investor C Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
Performance information reflects past performance and does not guarantee future
results. Current performance may be lower or higher than the performance data
quoted. Refer to www.blackrock.com/funds to obtain performance data current to
the most recent month-end. Performance results do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. The Fund may charge a 2% redemption fee for sales or exchanges of
shares within 30 days of purchase or exchange. Performance data does not reflect
this potential fee. Figures shown in the performance tables on page 5 assume
reinvestment of all dividends and capital gain distributions, if any, at net
asset value on the ex-dividend date. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. Dividends paid to each class of shares will vary
because of the different levels of service, distribution and transfer agency
fees applicable to each class, which are deducted from the income available to
be paid to shareholders.
Disclosure of Expenses
Shareholders of this Fund may incur the following charges: (a) expenses related
to transactions, including sales charges and redemption fees; and (b) operating
expenses including advisory fees, distribution fees including 12b-1 fees and
other Fund expenses. The expense example on page 5 (which is based on a
hypothetical investment of $1,000 invested on December 1, 2007 and held through
May 31, 2008) is intended to assist shareholders both in calculating expenses
based on an investment in the Fund and in comparing these expenses with similar
costs of investing in other mutual funds.
The table provides information about actual account values and actual expenses.
In order to estimate the expenses a shareholder paid during the period covered
by this report, shareholders can divide their account value by $1,000 and then
multiply the result by the number corresponding to their share class under the
heading entitled "Expenses Paid During the Period."
The table also provides information about hypothetical account values and
hypothetical expenses based on the Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses. In order to assist shareholders
in comparing the ongoing expenses of investing in this Fund and other funds,
compare the 5% hypothetical example with the 5% hypothetical examples that
appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the hypothetical table is useful in
comparing ongoing expenses only, and will not help shareholders determine the
relative total expenses of owning different funds. If these transactional
expenses were included, shareholder expenses would have been higher.
6 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Portfolio Summary
As of May 31, 2008
Ten Largest Holdings Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
Petroleo Brasileiro SA .................................................. 18%
Companhia Vale do Rio Doce (Preference 'A' Shares) ...................... 9
America Movil, SA de CV ................................................. 9
Usinas Siderurgicas de Minas Gerais SA
(Preference 'A' Shares) ............................................... 6
Banco Bradesco SA ....................................................... 6
Banco Itau Holding Financeira SA ........................................ 4
Tenaris SA .............................................................. 4
Uniao de Bancos Brasileiros SA .......................................... 4
Bradespar SA (Preference Shares) ........................................ 3
Cia de Bebidas das Americas (Preference Shares) ......................... 2
- --------------------------------------------------------------------------------
Five Largest Industries* Percent of
(Equity Investments) Net Assets
- --------------------------------------------------------------------------------
Metals & Mining ......................................................... 26%
Oil & Gas ............................................................... 19
Banks ................................................................... 17
Wireless Telecommunication Services ..................................... 9
Beverages ............................................................... 4
- --------------------------------------------------------------------------------
For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease.
Percent of
Geographic Allocation Long-Term Investments
- --------------------------------------------------------------------------------
Brazil .................................................................. 73%
Mexico .................................................................. 18
Argentina ............................................................... 5
Chile ................................................................... 2
Bermuda ................................................................. 1
Colombia ................................................................ 1
- --------------------------------------------------------------------------------
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 7
Consolidated Schedule of Investments May 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Argentina -- 4.9%
Metals & Mining -- 4.9%
Tenaris SA (a) 620,000 $ 38,006,000
Ternium SA (a)(b) 245,000 10,875,550
- -------------------------------------------------------------------------------
Total Common Stocks in Argentina 48,881,550
===============================================================================
Brazil -- 71.6%
Air Freight & Logistics -- 0.2%
Log-In Logistica Intermodal SA 347,000 2,493,962
- -------------------------------------------------------------------------------
Apparel, Accessories & Luxury Goods -- 0.0%
Empresa Nacional de Comercio Credito e
Participacoes SA (Preference Shares) (c) 12,284 301,945
- -------------------------------------------------------------------------------
Banks -- 14.1%
Banco ABC Brasil SA (Preference Shares) 349,000 2,049,155
Banco Bradesco SA (a)(b) 2,500,000 60,025,000
Banco Industrial e Comercial SA
(Preference Shares) 590,000 3,805,165
Banco Itau Holding Financeira SA (a)(b) 1,240,000 38,080,400
Uniao de Bancos Brasileiros SA (a) 230,000 36,080,100
-------------
140,039,820
- -------------------------------------------------------------------------------
Beverages -- 2.6%
Cia de Bebidas das Americas (a) 25,000 1,606,500
Cia de Bebidas das Americas (Preference
Shares) (a) 348,000 23,897,160
-------------
25,503,660
- -------------------------------------------------------------------------------
Car Rental -- 0.3%
Localiza Rent A Car SA 232,000 3,066,708
- -------------------------------------------------------------------------------
Diversified Consumer Services -- 1.4%
Anhanguera Educacional Participacoes SA 393,000 6,982,908
Hypermarcas SA (c) 475,000 6,421,918
-------------
13,404,826
- -------------------------------------------------------------------------------
Diversified Financial Services -- 1.7%
BM&F Bovespa SA Bo Red Prf Npv (d) 27,700 292,130
Bolsa de Mercadorias e Futuros 352,000 3,992,868
Bovespa Holding SA 413,000 6,799,963
Redecard SA 265,000 5,702,429
-------------
16,787,390
- -------------------------------------------------------------------------------
Diversified Telecommunication Services -- 0.2%
Tele Norte Leste Participacoes SA 70,000 2,233,630
- -------------------------------------------------------------------------------
Electric Utilities -- 2.2%
Cia Energetica de Minas Gerais (a)(b) 461,458 10,908,867
Cia Energetica de Sao Paulo (Preference
Shares) (c) 72,000 1,363,418
EDP -- Energias do Brasil SA 139,000 2,709,069
Equatorial Energia SA 108,000 1,108,220
Terna Participacoes SA 114,000 2,172,764
Tractebel Energia SA 269,000 3,952,721
-------------
22,215,059
- -------------------------------------------------------------------------------
Food Products -- 0.4%
Aqucar Guarani SA (c) 315,000 1,975,407
M Dias Branco SA 125,000 1,959,729
-------------
3,935,136
- -------------------------------------------------------------------------------
Health Care Providers & Services -- 0.9%
Diagnosticos da America SA 264,000 7,060,559
Profarma Distribuidora de Produtos
Farmaceuticos SA 98,000 1,611,743
-------------
8,672,302
- -------------------------------------------------------------------------------
Industrial Materials -- 0.2%
Marcopolo SA (Preference Shares) 450,000 2,127,575
- -------------------------------------------------------------------------------
Insurance -- 1.6%
Amil Participacoes SA 640,000 5,213,649
Porto Seguro SA 350,000 4,131,571
Tempo Participacoes SA (c) 1,435,000 6,484,630
-------------
15,829,850
- -------------------------------------------------------------------------------
Machinery -- 1.0%
Lupatech SA (c) 95,000 3,717,645
Metalfrio Solutions SA 235,000 3,162,711
Weg SA 255,000 3,339,379
-------------
10,219,735
- -------------------------------------------------------------------------------
Media -- 1.0%
NET Serviqos de Comunicacao SA
(Preference Shares) (c) 681,000 9,822,478
- -------------------------------------------------------------------------------
Metals & Mining -- 19.3%
Bradespar SA (Preference Shares) 955,000 28,652,936
Companhia Vale do Rio Doce (Preference 'A'
Shares) (a) 2,770,000 91,216,100
Gerdau SA (a)(b) 100,000 4,996,000
Usinas Siderurgicas de Minas Gerais SA 90,000 4,897,018
Usinas Siderurgicas de Minas Gerais SA
(Preference 'A' Shares) 1,155,000 62,134,952
-------------
191,897,006
- -------------------------------------------------------------------------------
Multiline Retail -- 0.7%
Lojas Renner SA 300,000 7,470,028
- -------------------------------------------------------------------------------
Oil & Gas -- 18.5%
Petroleo Brasileiro SA (a) 3,017,000 182,347,480
Ultrapar Participacoes SA 57,000 2,277,897
-------------
184,625,377
- -------------------------------------------------------------------------------
Paper -- 0.4%
Suzano Papel e Celulose SA (Preference Shares) 188,000 3,467,568
- -------------------------------------------------------------------------------
Public Thoroughfares -- 0.4%
Cia de Concessoes Rodoviarias 200,000 4,022,133
- -------------------------------------------------------------------------------
Real Estate -- 2.7%
Agra Empreendimentos Imobiliarios SA (c) 486,000 2,330,649
Cyrela Brazil Realty SA 465,000 7,799,078
LPS Brasil Consultoria de Imoveis SA 98,000 1,945,539
Mrv Engenharia e Participacoes SA 348,000 8,239,459
PDG Realty SA Empreendimentos
e Participacoes 290,000 4,794,405
Rodobens Negocios Imobiliarios SA 118,000 1,762,927
-------------
26,872,057
- -------------------------------------------------------------------------------
Software -- 0.5%
Datasul 180,000 2,333,969
Totvs SA 65,000 2,337,442
-------------
4,671,411
- -------------------------------------------------------------------------------
Transportation -- 0.4%
All America Latina Logistica SA 254,600 3,792,781
- -------------------------------------------------------------------------------
Transportation Infrastructure -- 0.2%
Tegma Gestao Logistica 175,000 2,221,795
- -------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements.
8 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Consolidated Schedule of Investments (continued)
(Percentages shown are based on Net Assets)
Common Stocks Shares Value
===============================================================================
Brazil (concluded)
Water -- 0.2%
Companhia de Saneamento de Minas Gerais 110,000 $ 2,022,133
- -------------------------------------------------------------------------------
Wireline Telecommunications -- 0.5%
GVT Holding SA (c) 193,000 4,607,556
- -------------------------------------------------------------------------------
Total Common Stocks in Brazil 712,323,921
===============================================================================
Chile -- 2.4%
Banks -- 0.7%
Banco Santander Chile SA (a) 128,000 6,656,000
- -------------------------------------------------------------------------------
Electric Utilities -- 0.6%
Empresa Nacional de Electricidad SA (a) 126,000 6,419,700
- -------------------------------------------------------------------------------
Food & Staples Retailing -- 0.6%
Centros Comerciales Sudamericanos SA 1,570,000 6,110,730
- -------------------------------------------------------------------------------
Multiline Retail -- 0.4%
La Polar SA 715,000 3,936,258
- -------------------------------------------------------------------------------
Paper -- 0.1%
Masisa SA (Preference Shares) (a)(c) 108,000 1,080,000
- -------------------------------------------------------------------------------
Total Common Stocks in Chile 24,202,688
===============================================================================
Colombia -- 0.5%
Oil, Gas & Consumable Fuels -- 0.5%
Ecopetrol SA 3,250,178 5,228,268
- -------------------------------------------------------------------------------
Total Common Stocks in Colombia 5,228,268
===============================================================================
Mexico -- 17.4%
Airports -- 0.2%
Grupo Aeroportuario del Pacifico, SA de CV (a) 41,700 1,475,346
- -------------------------------------------------------------------------------
Banks -- 1.6%
Grupo Financiero Banorte, SA de CV 'O' 3,240,000 15,729,527
- -------------------------------------------------------------------------------
Beverages -- 1.1%
Fomento Economico Mexicano, SA de CV (a) 243,000 11,433,150
- -------------------------------------------------------------------------------
Broadcasting & Cable TV -- 0.4%
Grupo Televisa, SA (a) 166,000 4,349,200
- -------------------------------------------------------------------------------
Building -- Home Builders -- 1.9%
Corporacion GEO, SA de CV Series B (c) 1,112,000 4,348,995
Desarrolladora Homex, SA de CV (a)(b)(c) 208,000 14,497,600
-------------
18,846,595
- -------------------------------------------------------------------------------
Construction & Engineering -- 0.3%
Empresas ICA Sociedad Controladora,
SA de CV (c) 413,000 2,773,424
- -------------------------------------------------------------------------------
Construction Materials -- 0.1%
Cemex, SA de CV (a)(c) 37,100 1,055,124
- -------------------------------------------------------------------------------
Hotels, Restaurants & Leisure -- 0.2%
Alsea SA (c) 1,370,000 1,793,531
- -------------------------------------------------------------------------------
Media -- 0.1%
Megacable Holdings, SAB de CV (c) 433,000 1,384,633
- -------------------------------------------------------------------------------
Metals & Mining -- 1.5%
Grupo Mexico, SA de CV 1,945,000 14,569,077
- -------------------------------------------------------------------------------
Multiline Retail -- 1.5%
Controladora Comercial Mexicana, SA de CV 526,000 1,635,643
Wal-Mart de Mexico, SA de CV 2,965,000 13,107,290
-------------
14,742,933
- -------------------------------------------------------------------------------
Wireless Telecommunication Services -- 8.5%
America Movil, SA de CV (a) 1,420,000 84,873,400
- -------------------------------------------------------------------------------
Total Common Stocks in Mexico 173,025,940
===============================================================================
Panama -- 0.3%
Airlines -- 0.3%
Copa Holdings SA Class A 82,000 2,744,540
- -------------------------------------------------------------------------------
Total Common Stocks in Panama 2,744,540
===============================================================================
Peru -- 1.0%
Banks -- 0.6%
Credicorp Ltd. 74,000 6,176,040
- -------------------------------------------------------------------------------
Metals & Mining -- 0.4%
Cia de Minas Buenaventura SA (a) 60,500 3,980,900
- -------------------------------------------------------------------------------
Total Common Stocks in Peru 10,156,940
- -------------------------------------------------------------------------------
Total Common Stocks -- 98.1% 976,563,847
===============================================================================
===============================================================================
Mutual Funds
===============================================================================
United Kingdom -- 0.5%
BlackRock Latin American Investment
Trust Plc (e) 355,000 4,535,775
- -------------------------------------------------------------------------------
Total Mutual Funds -- 0.5% 4,535,775
- -------------------------------------------------------------------------------
Total Long-Term Investments
(Cost -- $630,505,969) -- 98.6% 981,099,622
===============================================================================
===============================================================================
Beneficial
Interest
Short-Term Securities (000)
===============================================================================
BlackRock Liquidity Series, LLC
Cash Sweep Series, 2.63% (e)(f) $ 4,937 4,937,458
BlackRock Liquidity Series, LLC
Money Market Series, 2.70% (e)(f)(g) 101,837 101,837,380
- -------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $106,774,838) -- 10.7% 106,774,838
- -------------------------------------------------------------------------------
Total Investments Before Options Written
(Cost -- $737,280,807*) -- 109.3% 1,087,874,460
===============================================================================
===============================================================================
Options Written Contracts
===============================================================================
Call Options Written
Cia de Bebidas das Americas (Preference
Shares), expiring July 2008 at $80 300 (16,893)
- -------------------------------------------------------------------------------
Total Options Written
(Premium Received -- $68,873) -- 0.0% (16,893)
===============================================================================
Total Investments -- 109.3% 1,087,857,567
Liabilities in Excess of Other Assets -- (9.3%) (92,226,235)
-------------
Net Assets -- 100.0% $ 995,631,332
=============
See Notes to Consolidated Financial Statements.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 9
Consolidated Schedule of Investments (concluded)
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 740,246,944
=============
Gross unrealized appreciation .......................... $ 350,395,476
Gross unrealized depreciation .......................... (2,767,960)
-------------
Net unrealized appreciation ............................ $ 347,627,516
=============
(a) Depositary receipts.
(b) Security, or a portion of security, is on loan.
(c) Non-income producing security.
(d) Security is fair valued.
(e) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
----------------------------------------------------------------------------------
Interest/
Purchase Sales Realized Dividend
Affiliate Cost Cost Loss Income
----------------------------------------------------------------------------------
BlackRock Liquidity Series,
LLC Cash Sweep Series $1,882,388* -- -- $ 82,181
BlackRock Liquidity Series,
LLC Money Market Series -- $44,170,020** -- $274,772
BlackRock Latin American
Investment Trust Plc -- $ 32,890 $(17,782) $ 24,850
----------------------------------------------------------------------------------
* Represents net purchase cost.
** Represents net sales cost.
(f) Represents the current yield as of report date.
(g) Security was purchased with cash proceeds from securities loans.
o Forward foreign currency contracts as of May 31, 2008 were as follows:
--------------------------------------------------------------------------
Currency Settlement Unrealized
Currency Purchased Sold Date Appreciation
--------------------------------------------------------------------------
BRL 15,935,153 $9,722,485 6/03/08 $64,920
--------------------------------------------------------------------------
o For Fund compliance purposes, the Fund's industry classifications refer to
any one or more of the industry sub-classifications used by one or more
widely recognized market indexes or ratings group indexes, and/or as
defined by Fund management. This definition may not apply for purposes of
this report, which may combine industry sub-classifications for reporting
ease.
o Currency Abbreviation:
BRL Brazilian Real
o Effective December 1, 2007, the Fund adopted Financial Accounting
Standards Board Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair
value, establishes a framework for measuring fair values and requires
additional disclosures about the use of fair value measurements. Various
inputs are used in determining the fair value of investments, which are as
follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumptions used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of May 31, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in Other Financial
Valuation Inputs Securities Instruments*
--------------------------------------------------------------------------
Level 1 ......................... $ 980,807,492 --
Level 2 ......................... 106,774,838 $(16,893)
Level 3 ......................... 292,130 --
--------------------------------------------------------------------------
Total $1,087,874,460 $(16,893)
======================================
* Other financial instruments are written options.
The following is a reconciliation of investments for unobservable inputs
(Level 3) were used in determining fair value:
--------------------------------------------------------------------------
Investments in
Securities
--------------------------------------------------------------------------
Balance, as of November 30, 2007 .......................... --
Accrued discounts/premiums ................................ --
Realized gain (loss) ...................................... --
Change in unrealized appreciation (depreciation) .......... $ 11,018
Net purchases (sales) ..................................... 281,112
Net transfers in/out of Level 3 ........................... --
--------------------------------------------------------------------------
Balance, as of May 31, 2008 $292,130
===========
See Notes to Consolidated Financial Statements.
10 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Consolidated Statement of Assets and Liabilities
May 31, 2008 (Unaudited)
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated (including securities loaned of $96,855,415) (cost -- $628,170,749) ....... $ 976,563,847
Investments at value -- affiliated (cost -- $109,110,058) ...................................................... 111,310,613
Foreign currency at value (cost -- $2,627,194) ................................................................. 2,580,880
Cash on deposit for foreign currency ........................................................................... 15,494
Unrealized appreciation forward foreign currency contracts ..................................................... 64,920
Investments sold receivable .................................................................................... 50,321,123
Capital shares sold receivable ................................................................................. 8,755,722
Dividends receivable ........................................................................................... 1,423,128
Securities lending receivable .................................................................................. 55,017
Prepaid expenses ............................................................................................... 44,603
---------------
Total assets ................................................................................................... 1,151,135,347
---------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Collateral on securities loaned at value ....................................................................... 101,837,380
Bank overdraft ................................................................................................. 179,999
Options written at value (premium received -- $68,873) ......................................................... 16,893
Investments purchased payable .................................................................................. 50,478,851
Capital shares redeemed payable ................................................................................ 1,603,196
Investment advisory fees payable ............................................................................... 760,246
Distribution fees payable ...................................................................................... 305,174
Other affiliates payable ....................................................................................... 145,417
Other accrued expenses payable ................................................................................. 163,565
Officer's and Directors' fees payable .......................................................................... 9,715
Other liabilities payable ...................................................................................... 3,579
---------------
Total liabilities .............................................................................................. 155,504,015
---------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets ..................................................................................................... $ 995,631,332
===============
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares, $0.10 par value .......................................................................... $ 221,776
Investor A Shares, $0.10 par value ............................................................................. 731,706
Investor B Shares, $0.10 par value ............................................................................. 51,311
Investor C Shares, $0.10 par value ............................................................................. 312,608
Paid-in capital in excess of par ............................................................................... 638,156,836
Distributions in excess of net investment income ............................................................... (101,790)
Accumulated net realized gain .................................................................................. 5,911,771
Net unrealized appreciation/depreciation ....................................................................... 350,347,114
---------------
Net Assets ..................................................................................................... $ 995,631,332
===============
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional -- Based on net assets of $172,290,076 and 2,217,758 shares outstanding .......................... $ 77.69
===============
Investor A -- Based on net assets of $562,037,005 and 7,317,056 shares outstanding ............................. $ 76.81
===============
Investor B -- Based on net assets of $37,451,755 and 513,107 shares outstanding ................................ $ 72.99
===============
Investor C -- Based on net assets of $223,852,496 and 3,126,076 shares outstanding ............................. $ 71.61
===============
See Notes to Consolidated Financial Statements.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 11
Consolidated Statement of Operations
Six Months Ended May 31, 2008 (Unaudited)
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends (net of $808,423 foreign withholding tax and including $24,850 from affiliates) ........................ $ 8,132,655
Interest from affiliates ......................................................................................... 82,181
Securities lending ............................................................................................... 274,772
-------------
Total income ..................................................................................................... 8,489,608
-------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory .............................................................................................. 3,828,982
Service -- Investor A ............................................................................................ 536,252
Service and distribution -- Investor B ........................................................................... 151,397
Service and distribution -- Investor C ........................................................................... 850,902
Custodian ........................................................................................................ 253,795
Transfer agent -- Institutional .................................................................................. 55,340
Transfer agent -- Investor A ..................................................................................... 216,115
Transfer agent -- Investor B ..................................................................................... 25,638
Transfer agent -- Investor C ..................................................................................... 120,698
Accounting services .............................................................................................. 137,904
Printing ......................................................................................................... 51,050
Professional ..................................................................................................... 44,952
Registration ..................................................................................................... 43,062
Officer and Directors ............................................................................................ 10,890
Miscellaneous .................................................................................................... 17,636
-------------
Total expenses ................................................................................................... 6,344,613
-------------
Net investment income ............................................................................................ 2,144,995
-------------
===================================================================================================================================
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments (including $17,782 from affiliates) .............................................................. 6,827,974
Foreign currency ............................................................................................. (197,317)
-------------
6,630,657
-------------
Net change in unrealized appreciation/depreciation on:
Investments .................................................................................................. 124,071,436
Foreign currency ............................................................................................. (296,343)
Options ...................................................................................................... 51,980
-------------
123,827,073
-------------
Total realized and unrealized gain ............................................................................... 130,457,730
-------------
Net Increase in Net Assets Resulting from Operations ............................................................. $ 132,602,725
=============
See Notes to Consolidated Financial Statements.
12 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Consolidated Statements of Changes in Net Assets
Six Months
Ended
May 31, Year Ended
2008 November 30,
Increase (Decrease) in Net Assets: (Unaudited) 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income .......................................................................... $ 2,144,995 $ 4,002,197
Net realized gain .............................................................................. 6,630,657 138,490,749
Net change in unrealized appreciation/depreciation ............................................. 123,827,073 78,178,634
-------------------------------
Net increase in net assets resulting from operations ........................................... 132,602,725 220,671,580
-------------------------------
===================================================================================================================================
Dividends and Distributions to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional .............................................................................. (1,310,858) (2,731,394)
Investor A ................................................................................. (3,704,656) (2,328,020)
Investor B ................................................................................. (115,826) (59,260)
Investor C ................................................................................. (814,364) (351,727)
Net realized gain:
Institutional .............................................................................. (18,913,410) --
Investor A ................................................................................. (64,111,958) --
Investor B ................................................................................. (4,862,076) --
Investor C ................................................................................. (26,310,140) --
-------------------------------
Decrease in net assets resulting from dividends and distributions to shareholders .............. (120,143,288) (5,470,401)
-------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from capital share transactions ............................. 225,088,005 95,810,271
-------------------------------
===================================================================================================================================
Redemption Fee
- -----------------------------------------------------------------------------------------------------------------------------------
Redemption fee ................................................................................. 135,757 144,491
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ................................................................... 237,683,199 311,155,941
Beginning of period ............................................................................ 757,948,133 446,792,192
-------------------------------
End of period .................................................................................. $ 995,631,332 $ 757,948,133
===============================
End of period undistributed (distributions in excess of) net investment income ................. $ (101,790) $ 3,698,919
===============================
See Notes to Consolidated Financial Statements.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 13
Consolidated Financial Highlights
Institutional
------------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2008 --------------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 78.57 $ 50.67 $ 37.27 $ 22.64 $ 15.83 $ 10.23
------------------------------------------------------------------------------------------
Net investment income 1 ............... 0.34 0.50 0.65 0.57 0.33 0.22
Net realized and unrealized gain ...... 11.04 28.10 13.32 14.42 6.79 5.44
------------------------------------------------------------------------------------------
Net increase from investment operations 11.38 28.60 13.97 14.99 7.12 5.66
------------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............. (0.80) (0.72) (0.58) (0.41) (0.31) (0.06)
Net realized gain ................. (11.47) -- -- -- -- --
------------------------------------------------------------------------------------------
Total dividends and distributions ..... (12.27) (0.72) (0.58) (0.41) (0.31) (0.06)
------------------------------------------------------------------------------------------
Redemption fee ........................ 0.01 0.02 0.01 0.05 -- 2 --
------------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 77.69 $ 78.57 $ 50.67 $ 37.27 $ 22.64 $ 15.83
==========================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............. 17.81% 4 57.20% 5 38.12% 67.55% 45.73% 55.61%
==========================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ........................ 1.23% 6 1.26% 1.31% 1.43% 1.60% 1.81%
==========================================================================================
Net investment income ................. 0.99% 6 0.87% 1.49% 1.98% 1.81% 1.78%
==========================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ....... $ 172,290 $ 128,094 $ 191,085 $ 135,279 $ 47,921 $ 27,811
==========================================================================================
Portfolio turnover .................... 29% 72% 48% 47% 57% 58%
==========================================================================================
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Total investment returns exclude the effects of any sales charges.
4 Aggregate total investment return.
5 Total investment return consisted of a payment by BlackRock Advisors, LLC
in order to resolve a regulatory compliance issue relating to an
investment, which increased the return by 0.02%.
6 Annualized.
See Notes to Consolidated Financial Statements.
14 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Consolidated Financial Highlights (continued)
Investor A
------------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2008 --------------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 77.78 $ 50.17 $ 36.93 $ 22.45 $ 15.71 $ 10.15
------------------------------------------------------------------------------------------
Net investment income 1 ............... 0.24 0.60 0.53 0.51 0.29 0.19
Net realized and unrealized gain ...... 10.91 27.60 13.21 14.29 6.72 5.40
------------------------------------------------------------------------------------------
Net increase from investment operations 11.15 28.20 13.74 14.80 7.01 5.59
------------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............. (0.66) (0.61) (0.51) (0.37) (0.27) (0.03)
Net realized gain ................. (11.47) -- -- -- -- --
------------------------------------------------------------------------------------------
Total dividends and distributions ..... (12.13) (0.61) (0.51) (0.37) (0.27) (0.03)
------------------------------------------------------------------------------------------
Redemption fee ........................ 0.01 0.02 0.01 0.05 -- 2 --
------------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 76.81 $ 77.78 $ 50.17 $ 36.93 $ 22.45 $ 15.71
==========================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............. 17.65% 4 56.85% 5 37.77% 67.10% 45.35% 55.23%
==========================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ........................ 1.49% 6 1.51% 1.57% 1.68% 1.85% 2.07%
==========================================================================================
Net investment income ................. 0.71% 6 0.92% 1.23% 1.81% 1.60% 1.52%
==========================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ....... $ 562,037 $ 433,844 $ 191,187 $ 139,062 $ 81,969 $ 62,145
==========================================================================================
Portfolio turnover .................... 29% 72% 48% 47% 57% 58%
==========================================================================================
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Total investment returns exclude the effects of any sales charges.
4 Aggregate total investment return.
5 Total investment return consisted of a payment by BlackRock Advisors, LLC
in order to resolve a regulatory compliance issue relating to an
investment, which increased the return by 0.02%.
6 Annualized.
See Notes to Consolidated Financial Statements.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 15
Consolidated Financial Highlights (continued)
Investor B
------------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2008 --------------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 74.38 $ 48.00 $ 35.33 $ 21.45 $ 15.01 $ 9.75
------------------------------------------------------------------------------------------
Net investment income (loss) 1 ........ (0.03) 0.05 0.20 0.29 0.15 0.08
Net realized and unrealized gain ...... 10.37 26.52 12.68 13.70 6.43 5.18
------------------------------------------------------------------------------------------
Net increase from investment operations 10.34 26.57 12.88 13.99 6.58 5.26
------------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............. (0.27) (0.21) (0.22) (0.16) (0.14) --
Net realized gain ................. (11.47) -- -- -- -- --
------------------------------------------------------------------------------------------
Total dividends and distributions ..... (11.74) (0.21) (0.22) (0.16) (0.14) --
------------------------------------------------------------------------------------------
Redemption fee ........................ 0.01 0.02 0.01 0.05 -- 2 --
------------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 72.99 $ 74.38 $ 48.00 $ 35.33 $ 21.45 $ 15.01
==========================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............. 17.19% 4 55.61% 5 36.72% 65.91% 44.16% 53.95%
==========================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ........................ 2.30% 6 2.32% 2.34% 2.46% 2.64% 2.89%
==========================================================================================
Net investment income (loss) .......... (0.09%) 6 0.09% 0.48% 1.10% 0.86% 0.75%
==========================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ....... $ 37,452 $ 31,268 $ 13,911 $ 12,144 $ 11,497 $ 15,129
==========================================================================================
Portfolio turnover .................... 29% 72% 48% 47% 57% 58%
==========================================================================================
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Total investment returns exclude the effects of any sales charges.
4 Aggregate total investment return.
5 Total investment return consisted of a payment by BlackRock Advisors, LLC
in order to resolve a regulatory compliance issue relating to an
investment, which increased the return by 0.02%.
6 Annualized.
See Notes to Consolidated Financial Statements.
16 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Consolidated Financial Highlights (concluded)
Investor C
------------------------------------------------------------------------------------------
Six Months
Ended
May 31, Year Ended November 30,
2008 --------------------------------------------------------------------------
(Unaudited) 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .. $ 73.28 $ 47.40 $ 35.07 $ 21.38 $ 15.00 $ 9.74
------------------------------------------------------------------------------------------
Net investment income (loss) 1 ........ (0.02) 0.11 0.17 0.25 0.14 0.08
Net realized and unrealized gain ...... 10.17 26.08 12.56 13.64 6.41 5.18
------------------------------------------------------------------------------------------
Net increase from investment operations 10.15 26.19 12.73 13.89 6.55 5.26
------------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............. (0.36) (0.33) (0.41) (0.25) (0.17) --
Net realized gain ................. (11.47) -- -- -- -- --
------------------------------------------------------------------------------------------
Total dividends and distributions ..... (11.83) (0.33) (0.41) (0.25) (0.17) --
------------------------------------------------------------------------------------------
Redemption fee ........................ 0.01 0.02 0.01 0.05 -- 2 --
------------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 71.61 $ 73.28 $ 47.40 $ 35.07 $ 21.38 $ 15.00
==========================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .............. 17.20% 4 55.62% 5 36.75% 65.90% 44.15% 54.00%
==========================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ........................ 2.27% 6 2.29% 2.34% 2.45% 2.63% 2.88%
==========================================================================================
Net investment income (loss) .......... (0.05%) 6 0.17% 0.42% 0.94% 0.80% 0.71%
==========================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ....... $ 223,852 $ 164,742 $ 50,609 $ 25,071 $ 6,655 $ 4,074
==========================================================================================
Portfolio turnover .................... 29% 72% 48% 47% 57% 58%
==========================================================================================
1 Based on average shares outstanding.
2 Amount is less than $0.01 per share.
3 Total investment returns exclude the effects of any sales charges.
4 Aggregate total investment return.
5 Total investment return consisted of a payment by BlackRock Advisors, LLC
in order to resolve a regulatory compliance issue relating to an
investment, which increased the return by 0.02%.
6 Annualized.
See Notes to Consolidated Financial Statements.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 17
Notes to Consolidated Financial Statements (Unaudited)
1. Significant Accounting Policies:
BlackRock Latin America Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company. The Fund's financial statements are
prepared in conformity with accounting principles generally accepted in the
United States of America, which may require the use of management accruals and
estimates. Actual results may differ from these estimates. The Fund offers
multiple classes of shares. Institutional Shares are sold without a sales charge
and only to certain eligible investors. Investor A Shares are generally sold
with a front-end sales charge. Investor B and Investor C Shares may be subject
to a contingent deferred sales charge. All classes of shares have identical
voting, dividend, liquidation and other rights and the same terms and
conditions, except that Investor A, Investor B and Investor C Shares bear
certain expenses related to the shareholder servicing of such shares, and
Investor B and Investor C Shares also bear certain expenses related to the
distribution of such shares. Each class has exclusive voting rights with respect
to matters relating to its shareholder servicing and distribution expenditures
(except that Investor B shareholders may vote on material changes to the
Investor A distribution plan).
The following is a summary of significant accounting policies followed by the
Fund:
Valuation of Investments: Equity investments traded on a recognized securities
exchange or the NASDAQ Global Market System are valued at the last reported sale
price that day or the NASDAQ official closing price, if applicable. Equity
investments traded on a recognized securities exchange for which there were no
sales on that day are valued at the last available bid price. Investments in
open-end investment companies are valued at net asset value each business day.
Exchange-traded options are valued at the mean between the last bid and ask
prices at the close of the options market in which the options trade.
Over-the-counter ("OTC") options are valued by an independent pricing service
using a mathematical model which incorporates a number of market data factors.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board of Directors (the "Board") as reflecting fair value ("Fair Value Assets").
When determining the price for Fair Value Assets, the investment advisor and/or
sub-advisor seeks to determine the price that the Fund might reasonably expect
to receive from the current sale of that asset in an arm's-length transaction.
Fair value determinations shall be based upon all available factors that the
investment advisor and/or subadvisor deems relevant. The pricing of all Fair
Value Assets is subsequently reported to the Board or a committee thereof.
Generally, trading in foreign securities is substantially completed each day at
various times prior to the close of business on the New York Stock Exchange
("NYSE"). The values of such securities used in computing the net assets of the
Fund are determined as of such times. Foreign currency exchange rates will be
determined as of the close of business on the NYSE. Occasionally, events
affecting the values of such securities and such exchange rates may occur
between the times at which they are determined and the close of business on the
NYSE that may not be reflected in the computation of the Fund's net assets. If
events (for example, a company announcement, market volatility or a natural
disaster) occur during such periods that are expected to materially affect the
value of such securities, those securities may be valued at their fair value as
determined in good faith by the Board or by the investment advisor using a
pricing service and/or procedures approved by the Board.
Foreign Currency Transactions: Foreign currency amounts are translated into
United States dollars on the following basis: (i) market value of investment
securities, assets and liabilities at the current rate of exchange; and (ii)
purchases and sales of investment securities, income and expenses at the rates
of exchange prevailing on the respective dates of such transactions.
The Fund reports foreign currency related transactions as components of realized
gains for financial reporting purposes, whereas such components are treated as
ordinary income for federal income tax purposes.
Derivative Financial Instruments: The Fund may engage in various portfolio
investment strategies to increase the return of the Fund and to hedge, or
protect, its exposure to interest rate movements and movements in the securities
markets. Losses may arise if the value of the contract decreases due to an
unfavorable change in the price of the underlying security, or if the
counterparty does not perform under the contract.
o Forward foreign currency contracts -- The Fund may enter into forward
foreign currency contracts as a hedge against either specific transactions
or portfolio positions. Forward currency contracts, when used by the Fund,
help to manage the overall exposure to the foreign currency backing some
of the investments held by the Fund. The contract is marked-to-market
daily and the change in market value is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value at the
time it was opened and the value at the time it was closed.
18 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Notes to Consolidated Financial Statements (continued)
o Options -- The Fund may purchase and write call and put options. When the
Fund writes an option, an amount equal to the premium received by the Fund
is reflected as an asset and an equivalent liability. The amount of the
liability is subsequently marked-to-market to reflect the current market
value of the option written. When a security is purchased or sold through
an exercise of an option, the related premium paid (or received) is added
to (or deducted from) the basis of the security acquired or deducted from
(or added to) the proceeds of the security sold. When an option expires
(or the Fund enters into a closing transaction), the Fund realizes a gain
or loss on the option to the extent of the premiums received or paid (or
gain or loss to the extent the cost of the closing transaction exceeds the
premium received or paid).
A call option gives the purchaser of the option the right (but not the
obligation) to buy, and obligates the seller to sell (when the option is
exercised), the underlying position at the exercise price at any time or
at a specified time during the option period. A put option gives the
holder the right to sell and obligates the writer to buy the underlying
position at the exercise price at any time or at a specified time during
the option period.
Investment Transactions and Investment Income: Investment transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Dividends from foreign securities where the ex-dividend date may have passed are
subsequently recorded when the Fund has determined the ex-dividend date.
Interest income is recognized on the accrual basis. Income and realized and
unrealized gains and losses are allocated daily to each class based on its
relative net assets.
Dividends and Distributions: Dividends and distributions of capital gains are
recorded on the ex-dividend dates.
Securities Lending: The Fund may lend securities to financial institutions that
provide cash or securities issued or guaranteed by the U.S. government as
collateral, which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The market value of
the loaned securities is determined at the close of business of the Fund and any
additional required collateral is delivered to the Fund on the next business
day. The Fund typically receives the income on the loaned securities but does
not receive the income on the collateral. Where the Fund receives cash
collateral, it may invest such collateral and retain the amount earned on such
investment, net of any amount rebated to the borrower. The Fund may receive a
flat fee for its loans. Loans of securities are terminable at any time and the
borrower, after notice, is required to return borrowed securities within the
standard time period for settlement of securities transactions. The Fund may pay
reasonable lending agent, administrative and custodial fees in connection with
its loans. In the event that the borrower defaults on its obligation to return
borrowed securities because of insolvency or for any other reason, the Fund
could experience delays and costs in gaining access to the collateral. The Fund
also could suffer a loss where the value of the collateral falls below the
market value of the borrowed securities, in the event of borrower default or in
the event of losses on investments made with cash collateral.
Bank Overdraft: The Fund recorded a bank overdraft which resulted from a failed
trade that settled the next day.
Income Taxes: It is the Fund's policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required. Under the applicable
foreign tax laws, a withholding tax may be imposed on interest, dividends and
capital gains at various rates.
Effective May 30, 2008, the Fund implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48
prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including investment companies, before being
measured and recognized in the financial statements. The investment advisor has
evaluated the application of FIN 48 to the Fund, and has determined that the
adoption of FIN 48 does not have a material impact on the Fund's financial
statements. The Fund files U.S. federal and various state and local tax returns.
No income tax returns are currently under examination. The statute of
limitations on the Fund's U.S. federal tax returns remain open for the years
ended November 30, 2004 through November 30, 2006. The statutes of limitations
on the Fund's state and local tax returns may remain open for an additional year
depending upon the jurisdiction.
Recent Accounting Pronouncement: In March 2008, Statement of Financial
Accounting Standards No. 161, "Disclosures about Derivative Instruments and
Hedging Activities -- an amendment of FASB Statement No. 133" ("FAS 161"), was
issued and is effective for fiscal years beginning after November 15, 2008. FAS
161 is intended to improve financial reporting for derivative instruments by
requiring enhanced disclosure that enables investors to understand how and why
an entity uses derivatives, how derivatives are accounted for, and how
derivative instruments affect an entity's results of operations and financial
position. The impact on the Fund's financial statement disclosures, if any, is
currently being assessed.
Basis of Consolidation: The accompanying consolidated financial statements
include the accounts of Merrill Lynch Latin America Fund Chile Ltd., a wholly
owned subsidiary of the Fund, which primarily invests in Chilean securities.
Intercompany accounts and transactions have been eliminated.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 19
Notes to Consolidated Financial Statements (continued)
Other: Expenses directly related to the Fund or its classes are charged to that
Fund or class. Other operating expenses shared by several funds are pro-rated
among those funds on the basis of relative net assets or other appropriate
methods. Other expenses of the Fund are allocated daily to each class based on
its relative net assets.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Fund entered into an Investment Advisory Agreement with BlackRock Advisors,
LLC, (the "Advisor"), an indirect, wholly owned subsidiary of BlackRock, Inc. to
provide investment advisory and administration services. Merrill Lynch & Co.,
Inc. ("Merrill Lynch") and The PNC Financial Services Group, Inc. ("PNC") are
principal owners of BlackRock, Inc.
The Advisor is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operation of the Fund. For such services, the Fund
pays the Advisor a monthly fee at an annual rate of 1.0% of the average daily
net assets of the Fund.
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC ("BIM") and BlackRock Asset Management U.K. Limited,
both affiliates of the Advisor, under which the Advisor pays each sub-advisor
for services it provides, a monthly fee that is a percentage of the investment
advisory fee paid by the Fund to the Advisor.
For the year ended May 31, 2008, the Fund reimbursed the Advisor $6,717, for
certain accounting services, which is included in accounting services in the
Consolidated Statement of Operations.
The Fund has also entered into separate Distribution Agreements and Distribution
Plans with FAM Distributors, Inc. ("FAMD") and BlackRock Distributors, Inc. and
its affiliates ("BDI") (collectively, the "Distributor"). FAMD is a wholly owned
subsidiary of Merrill Lynch Group, Inc., and BDI is an affiliate of BlackRock,
Inc.
Pursuant to the Distribution Plans adopted by the Fund in accordance with Rule
12b-1 under the 1940 Act, the Fund pays the Distributor ongoing service and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
- --------------------------------------------------------------------------------
Service Distribution
Fee Fee
- --------------------------------------------------------------------------------
Investor A ...................................... 0.25% --
Investor B ...................................... 0.25% 0.75%
Investor C ...................................... 0.25% 0.75%
- --------------------------------------------------------------------------------
Pursuant to sub-agreements with each Distributor, broker-dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and each Distributor provide shareholder servicing
and distribution services to the Fund. The ongoing service fee and/or
distribution fee compensates the Distributor and each broker-dealer for
providing shareholder servicing and/or distribution related services to Investor
A, Investor B and Investor C shareholders.
For the six months ended May 31, 2008, the affiliates earned underwriting
discounts, direct commissions and dealer concessions on sales of the Fund's
Investor A Shares, which totaled $270,761. For the six months ended May 31,
2008, affiliates received contingent deferred sales charges of $17,828, $65,224
and $103,444 relating to transactions in Investor A, Investor B and Investor C
Shares, respectively. These amounts include payments to Hilliard Lyons, which
was considered an affiliate for a portion of the period.
Pursuant to written agreements, certain affiliates provide the Fund with
sub-accounting, recordkeeping, sub-transfer agency and other administrative
services with respect to sub-accounts they service. For these services, these
affiliates receive an annual fee per shareholder account which will vary
depending on share class. For the six months ended May 31, 2008, the Fund paid
$171,524 in return for these services.
PNC Global Investment Servicing (U.S.) Inc., formerly PFPC Inc., an indirect,
wholly owned subsidiary of PNC and an affiliate of the Advisor, serves as
transfer agent. Each class of the Fund bears the costs of transfer agent fees
associated with such respective classes. Transfer agency fees borne by each
class of the Fund are comprised of those fees charged for all shareholder
communications including mailing of shareholder reports, dividend and
distribution notices, and proxy materials for shareholders meetings, as well as
per account and per transaction fees related to servicing and maintenance of
shareholder accounts, including the issuing, redeeming and transferring of
shares of each class of the Fund, 12b-1 fee calculation, check writing,
anti-money laundering services, and customer identification services.
The Advisor maintains a call center, which is responsible for providing certain
shareholder services to the Fund, such as responding to shareholder inquiries
and processing transactions based upon instructions from shareholders with
respect to the subscription and redemption of Fund shares. For the six months
ended May 31, 2008 the following amounts have been accrued by the Fund to
reimburse the Advisor for costs incurred running the call center, which are a
component of the transfer agent fees in the accompanying Consolidated Statement
of Operations.
- --------------------------------------------------------------------------------
Call Center Fees
- --------------------------------------------------------------------------------
Institutional ................................................. $ 1,451
Investor A .................................................... $26,496
Investor B .................................................... $ 3,107
Investor C .................................................... $10,006
- --------------------------------------------------------------------------------
20 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Notes to Consolidated Financial Statements (continued)
The Fund has received an exemptive order from the Securities and Exchange
Commission permitting it to lend portfolio securities to MLPF&S or its
affiliates. As of May 31, 2008, the Fund loaned securities with a value of
$1,462,209 to MLPF&S or its affiliates. Pursuant to that order, the Fund has
retained BIM as the securities lending agent for a fee based on a share of the
returns on investment of cash collateral. BIM may, on behalf of the Fund, invest
cash collateral received by the Fund for such loans, among other things, in a
private investment company managed by the Advisor or in registered money market
funds advised by the Advisor or its affiliates. For the six months ended May 31,
2008, BIM received $68,471 in securities lending agent fees.
In addition, MLPF&S received $149,800 in commissions on the execution of
portfolio security transactions for the Fund for the six months ended May 31,
2008.
Certain officers and/or directors of the Fund are officers and/or directors of
BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended May 31, 2008 were $325,160,236 and $227,681,822, respectively.
Transactions in call options written for the six months ended May 31, 2008 were
as follows:
- --------------------------------------------------------------------------------
Premiums
Contracts Received
- --------------------------------------------------------------------------------
Outstanding call options written,
beginning of period ................................. -- $ --
Options written ....................................... 300 68,873
-----------------------
Outstanding call options written,
end of period ....................................... 300 $68,873
=======================
4. Capital Share Transactions:
There are 100,000,000 shares authorized for all classes. Transactions in capital
shares for each class were as follows:
Six Months Ended Year Ended
May 31, 2008 November 30, 2007
------------------------------- -------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 653,166 $ 44,710,828 1,272,272 $ 80,829,282
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 271,040 17,370,005 49,381 2,575,234
------------------------------- -------------------------------
Total issued ............................................... 924,206 62,080,833 1,321,653 83,404,516
Shares redeemed ............................................ (336,808) (22,043,670) (3,462,518) (194,175,665)
------------------------------- -------------------------------
Net increase (decrease) .................................... 587,398 $ 40,037,163 (2,140,865) $(110,771,149)
=============================== ===============================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 2,242,817 $ 154,352,365 2,993,773 $ 202,297,775
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 876,621 55,609,272 37,370 1,933,536
------------------------------- -------------------------------
Total issued ............................................... 3,119,438 209,961,637 3,031,143 204,231,311
Shares redeemed ............................................ (1,380,331) (87,770,806) (1,263,895) (82,271,703)
------------------------------- -------------------------------
Net increase ............................................... 1,739,107 $ 122,190,831 1,767,248 $ 121,959,608
=============================== ===============================
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 21
Notes to Consolidated Financial Statements (concluded)
Six Months Ended Year Ended
May 31, 2008 November 30, 2007
------------------------------- -------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 122,986 $ 8,143,735 293,436 $ 18,680,821
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 71,416 4,320,594 1,015 50,584
------------------------------- -------------------------------
Total issued ............................................... 194,402 12,464,329 294,451 18,731,405
Shares redeemed ............................................ (101,655) (6,317,954) (163,918) (9,848,033)
------------------------------- -------------------------------
Net increase ............................................... 92,747 $ 6,146,375 130,533 $ 8,883,372
=============================== ===============================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ................................................ 975,481 $ 62,254,792 1,680,824 $ 106,157,297
Shares issued to shareholders in reinvestment of dividends
and distributions ........................................ 416,367 24,710,586 6,346 311,628
------------------------------- -------------------------------
Total issued ............................................... 1,391,848 86,965,378 1,687,170 106,468,925
Shares redeemed ............................................ (513,844) (30,251,742) (506,882) (30,730,485)
------------------------------- -------------------------------
Net increase ............................................... 878,004 $ 56,713,636 1,180,288 $ 75,738,440
=============================== ===============================
There is a 2% redemption fee on shares redeemed or exchanged which have been
held 30 days or less. The redemption fees are collected and retained by the Fund
for the benefit of the remaining shareholders. The redemption fees are recorded
as a credit to paid in capital.
5. Short-Term Borrowings:
The Fund, along with certain other funds managed by the Advisor and its
affiliates, is a party to a $500,000,000 credit agreement with a group of
lenders. The Fund may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. The Fund may
borrow up to the maximum amount allowable under the Fund's current Prospectus
and Statement of Additional Information, subject to various other legal,
regulatory or contractual limits. On November 21, 2007, the credit agreement was
renewed for one year under substantially the same terms. The Fund pays a
commitment fee of 0.06% per annum based on the Fund's pro rata share of the
unused portion of the credit agreement, which is included in miscellaneous in
the Consolidated Statement of Operations. Amounts borrowed under the credit
agreement bear interest at a rate equal to, at the fund's election, the federal
funds rate plus 0.35% or a base rate as defined in the credit agreement. The
Fund did not borrow under the credit agreement during the six months ended May
31, 2008.
6. Commitment:
At May 31, 2008, the Fund had entered into foreign exchange contracts, under
which it had agreed to purchase and sell various foreign currencies with
approximate values of $19,308,000 and $978,000, respectively.
7. Geographic Concentration Risk:
The Fund invests from time to time a substantial amount of its assets in issuers
located in a single country or a limited number of countries. When the Fund
concentrates its investments in this manner, it assumes the risk that economic,
political and social conditions in those countries may have a significant impact
on its investment performance. Please see the Consolidated Schedule of
Investments for concentrations in specific countries.
22 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Officers and Directors
David O. Beim, Director
Richard S. Davis, Director
Ronald W. Forbes, Co-Chairman of the Board and Director
Henry Gabbay, Director
Dr. Matina Horner, Director
Rodney D. Johnson, Co-Chairman of the Board and Director
Herbert I. London, Director
Cynthia A. Montgomery, Director
Joseph P. Platt, Jr., Director
Robert C. Robb, Jr., Director
Toby Rosenblatt, Director
Kenneth L. Urish, Chairman of the Audit Committee and Director
Frederick W. Winter, Director
Donald C. Burke, Fund President and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Fund
Howard Surloff, Secretary
Custodian
Brown Brothers Harriman & Co.
Boston, MA 02109
Transfer Agent
PNC Global Investment Servicing (U.S.) Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Sidley Austin LLP
New York, NY 10019
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 23
Additional Information
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Fund's website or shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Fund's electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at http://www.blackrock.com/edelivery
2) Click on the applicable link and follow the steps to sign up
3) Log into your account
The Fund will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined with
those for other members of your household, please contact the Fund at (800)
441-7762.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available (1) without
charge, upon request, by calling toll-free (800) 441-7762; (2) at
www.blackrock.com; and (3) on the Securities and Exchange Commission's (the
"SEC") website at http://www.sec.gov.
24 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
Additional Information (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Record
Information about how the Fund votes proxies relating to securities held in the
Fund's portfolio during the most recent 12-month period ended June 30 is
available upon request and without charge (1) at www.blackrock.com or by calling
(800) 441-7762 and (2) on the SEC's website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Fund files its complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q
are available on the SEC's website at http://www.sec.gov and may also be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling (800) SEC-0330. The Fund's Forms N-Q may also be obtained upon request
and without charge by calling (800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM to 6:00 PM EST to get information about your
account balances, recent transactions and share prices. You can also reach us on
the Web at www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long as
their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008 25
A World-Class Mutual Fund Family
BlackRock offers a diverse lineup of open-end mutual funds crossing all
investment styles and managed by experts in equity, fixed income and tax-exempt
investing.
Equity Funds
BlackRock All-Cap Global Resources Portfolio
BlackRock Asset Allocation Portfolio+
BlackRock Aurora Portfolio
BlackRock Balanced Capital Fund+
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Growth Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity Fund
BlackRock Global Emerging Markets Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio
BlackRock Global Science & Technology Opportunities Portfolio
BlackRock Global SmallCap Fund
BlackRock Health Sciences Opportunities Portfolio*
BlackRock Healthcare Fund
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio
BlackRock International Value Fund
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Commodity Strategies Fund
BlackRock Emerging Market Debt Portfolio
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Income Portfolio
BlackRock Income Builder Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Long Duration Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Strategic Income Portfolio
BlackRock Total Return Fund
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on investments
in the fund.
+ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should consider
the investment objectives, risks, charges and expenses of the funds under
consideration carefully before investing. Each fund's prospectus contains this
and other information and is available at www.blackrock.com or by calling (800)
882-0052 or from your financial advisor. The prospectus should be read carefully
before investing.
26 BLACKROCK LATIN AMERICA FUND, INC. MAY 31, 2008
This report is not authorized for use as an offer of sale or a solicitation of
an offer to buy shares of the Fund unless accompanied or preceded by the Fund's
current prospectus. Past performance results shown in this report should not be
considered a representation of future performance. Investment returns and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change.
Investing in emerging market securities involves a number of risk factors and
special considerations, including restrictions on foreign investments and on
repatriation of capital invested in emerging markets, currency fluctuations, and
potential price volatility and less liquidity of securities traded in emerging
markets. In addition, there may be less publicly available information about the
issuers of securities, and such issuers may not be subject to accounting,
auditing and financial reporting standards and requirements comparable to those
to which U.S. companies are subject. Therefore, the Fund is designed as a
long-term investment for investors capable of assuming the risks of investing in
emerging markets. The Fund should be considered as a vehicle for diversification
and not as a complete investment program. Please refer to the prospectus for
details.
BlackRock Latin America Fund, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
BLACKROCK
#16140-5/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the board of directors recommended by shareholders when
a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations which include biographical
information and set forth the qualifications of the proposed nominee
to the registrant's Secretary. There have been no material changes
to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Latin America Fund, Inc.
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Latin America Fund, Inc.
Date: July 18, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-----------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Latin America Fund, Inc.
Date: July 18, 2008
By: /s/ Neal J. Andrews
-----------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Latin America Fund, Inc.
Date: July 18, 2008