N-Q 1 d487761dnq.htm BLACKROCK LATIN AMERICA FUND, INC. BLACKROCK LATIN AMERICA FUND, INC.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

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: John M. Perlowski, Chief Executive Officer, BlackRock Latin America Fund, Inc., 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code:  (800) 441-7762

Date of fiscal year end: 10/31/2018

Date of reporting period: 07/31/2018

Item 1 – Schedule of Investments

 

Schedule of Investments  (unaudited) 

July 31, 2018

   

BlackRock Latin America Fund, Inc.

(Percentages shown are based on Net Assets)

 

    
Security		   Shares     Value  

Common Stocks — 99.2%

 

Argentina — 3.0%        

Corp. America Airports SA(a)(b)

     89,000     $ 991,460  

Globant SA(b)

     16,282       902,674  

Grupo Financiero Galicia SA - ADR

     18,000       641,340  

Grupo Supervielle SA - ADR

     40,000       540,400  

Loma Negra Cia Industrial Argentina SA - ADR(b)

     70,000       786,800  

Pampa Energia SA - ADR(b)

     13,000       547,950  

Telecom Argentina SA - ADR

     26,000       521,820  
   

 

 

  
      4,932,444  
Brazil — 65.1%        

AMBEV SA - ADR

     466,000       2,395,240  

Azul SA - ADR(a)(b)

     106,461       2,038,728  

B2W Cia Digital(b)

     216,000       1,620,014  

B3 SA - Brasil Bolsa Balcao

     829,000       5,254,552  

Banco Bradesco SA - ADR

     1,683,000       13,598,640  

Banco do Brasil SA

     334,000       2,892,122  

BR Malls Participacoes SA(b)

     662,000       1,754,962  

Cia de Saneamento do Parana

     53,000       628,663  

Cosan SA

     216,000       2,121,845  

Eneva SA(b)

     226,000       752,671  

Fleury SA

     260,000       1,896,678  

Gerdau SA - ADR

     405,000       1,782,000  

Gerdau SA, Preference Shares

     405,000       1,799,856  

Iguatemi Empresa de Shopping Centers SA

     167,000       1,497,674  

Iochpe-Maxion SA

     245,000       1,504,609  

Itau Unibanco Holding SA, Preference Shares - ADR

     1,129,000       13,536,710  

Klabin SA

     122,275       658,075  

Linx SA

     162,000       801,519  

Localiza Rent a Car SA

     383,000       2,423,534  

Lojas Americanas SA, Preference Shares

     608,000       2,938,513  

Lojas Renner SA

     481,000       3,957,392  

Magazine Luiza SA

     35,000       1,233,341  

MRV Engenharia e Participacoes SA

     456,000       1,604,924  

Petroleo Brasileiro SA - ADR(a)

     1,139,000       12,468,930  

Rumo SA(b)

     859,000       3,398,649  

Suzano Papel e Celulose SA

     334,000       3,964,431  

TIM Participacoes SA

     353,000       1,166,227  

TIM Participacoes SA - ADR(a)

     69,000       1,132,980  

Vale SA - ADR

     1,055,000       15,466,300  

WEG SA

     277,000       1,366,070  
   

 

 

  
      107,655,849  
Chile — 1.6%        

SACI Falabella

     290,000       2,696,851  
   

 

 

  
Colombia — 1.6%        

Bancolombia SA - ADR

     58,000       2,662,780  
   

 

 

  
Mexico — 25.6%        

Alsea SAB de CV

     580,000       2,000,682  
    
Security		   Shares     Value  
Mexico (continued)        

America Movil SAB de CV, Series L - ADR

     550,000     $ 9,410,500  

Arca Continental SAB de CV

     500,000       3,319,070  

Cemex SAB de CV - ADR(a)(b)

     640,000       4,768,000  

Corp. Inmobiliaria Vesta SAB de CV

     900,000       1,425,977  

Fomento Economico Mexicano SAB de CV - ADR

     70,000       6,869,800  

Grupo Financiero Banorte SAB de CV, Series O

     1,100,000       7,670,239  

PLA Administradora Industrial S de RL de CV(b)

     365,000       566,954  

Wal-Mart de Mexico SAB de CV

     2,125,000       6,205,886  
   

 

 

  
      42,237,108  
United Kingdom — 2.3%        

Antofagasta PLC

     290,000       3,808,596  
   

 

 

  

Total Common Stocks — 99.2%
(Cost — $133,960,668)

 

     163,993,628  
   

 

 

  

Corporate Bonds — 0.1%

 

Brazil — 0.1%        

Hypera SA, 11.30%, 10/15/18(c)

     BRL        137       1,927  

Klabin SA:

    

7.25%, 06/15/20

     22       119,920  

1.00%, 06/15/22

     14       73,797  

Lupatech SA, 6.50%, 04/15/19(b)(d)

     2,128       —    
   

 

 

  

Total Corporate Bonds — 0.1%
(Cost — $1,395,864)

 

     195,644  
   

 

 

  

Warrants — 0.0%

 

Brazil — 0.0%        

Iochpe-Maxion SA (Expires 06/03/19), 0.00%(b)

     10       24,874  

Klabin SA (Expires 06/15/20), 0.00%(c)

     22       —    
   

 

 

  

Total Warrants — 0.0%
(Cost — $—)

 

     24,874  
   

 

 

  

Total Long-Term Investments — 99.3%
(Cost — $135,356,532)

 

     164,214,146  
   

 

 

  
 

 

 

     1  

Schedule of Investments  (unaudited) (continued)

July 31, 2018

   

BlackRock Latin America Fund, Inc.

(Percentages shown are based on Net Assets)

 

    
Security		   Shares     Value  

Short-Term Securities — 5.4%

    

BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.79%(e)(f)

     1,267,342     $ 1,267,342  

SL Liquidity Series, LLC, Money Market Series, 1.86%(e)(f)(g)(h)

     7,604,126       7,605,647  
   

 

 

  

Total Short-Term Securities — 5.4%
(Cost — $8,871,834)

       8,872,989  
   

 

 

  
           

Value

  

Total Investments — 104.7%
(Cost — $144,228,366)

       173,087,135  

Liabilities in Excess of Other Assets — (4.7)%

       (7,742,140 ) 
   

 

 

  

Net Assets — 100.0%

     $ 165,344,995  
   

 

 

  
 
(a) 

Security, or a portion of the security, is on loan.

(b) 

Non-income producing security.

(c) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d) 

Issuer filed for bankruptcy and/or is in default.

(e) 

Annualized 7-day yield as of period end.

(f) 

Security was purchased with the cash collateral from loaned securities.

(g) 

All or a portion of security was purchased with the cash collateral from loaned securities.

(h) 

During the period ended July 31, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

 

Affiliate   

Shares

Held at

10/31/17

     

Net

Activity

     

Shares

Held at
07/31/18

      Value at
07/31/18		     
Income		      Net Realized
Gain (Loss)(a)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      —        1,267,342        1,267,342      $ 1,267,342      $ 19,243 (b)      $ —      $ —  

SL Liquidity Series, LLC, Money Market Series

      —        7,604,126        7,604,126        7,605,647        5,251        334        1,155  
           

 

 

     

 

 

     

 

 

     

 

 

  
   $ 8,872,989      $ 24,494      $ 334      $ 1,155  
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Includes net capital gain distributions, if applicable.

 
  (b) 

Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

Portfolio Abbreviations
ADR   American Depositary Receipts
BRL   Brazilian Real

 

 

2   

Schedule of Investments  (unaudited) (continued)

July 31, 2018

   

BlackRock Latin America Fund, Inc.

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access

  •  

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or 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)

 

  •  

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following tables summarize the Fund’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

 

Investments:

 

Common Stocks:

 

Argentina

   $ 4,932,444        $ —        $ —        $ 4,932,444  

Brazil

     107,655,849          —          —          107,655,849  

Chile

     2,696,851          —          —          2,696,851  

Colombia

     2,662,780          —          —          2,662,780  

Mexico

     42,237,108          —          —          42,237,108  

United Kingdom

     —          3,808,596          —          3,808,596  

Corporate Bonds

     —          193,717          1,927          195,644  

Warrants

     24,874          —          —          24,874  

Short-Term Securities

      1,267,342          —          —          1,267,342  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 161,477,248        $ 4,002,313        $ 1,927        $ 165,481,488  
  

 

 

       

 

 

       

 

 

       

 

 

  

Investments Valued at NAV(a)

 

        7,605,647  
  

 

 

       

 

 

       

 

 

       

 

 

  

Total

    $ 161,477,248        $ 4,002,313        $ 1,927        $ 173,087,135  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

(a) 

As of July 31, 2018, certain of the Fund’s Investments were fair valued using net asset value (“NAV”) per share and have been excluded from the fair value hierarchy.

During the period ended July 31, 2018, there were no transfers between levels.

 

 

     3  

Item 2 – Controls and Procedures

 

2(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.
2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

              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/ John M. Perlowski                    
     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Latin America Fund, Inc.
  Date: September 20, 2018
  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/ John M. Perlowski                    
     John M. Perlowski
     Chief Executive Officer (principal executive officer) of
     BlackRock Latin America Fund, Inc.
  Date: September 20, 2018
  By:    /s/ Neal J. Andrews                        
     Neal J. Andrews
     Chief Financial Officer (principal financial officer) of
     BlackRock Latin America Fund, Inc.
  Date: September 20, 2018