BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
31 March
2024 and
unaudited.
Performance at
month end with net income reinvested.
|
One
month
%
|
Three
months
%
|
One
year
%
|
Three
years
%
|
Five
years
%
|
Since
Launch*
%
|
Sterling:
|
|
|
|
|
|
|
Share
price
|
-0.5
|
9.7
|
18.6
|
38.7
|
43.1
|
150.8
|
Net
asset value
|
0.6
|
6.6
|
19.7
|
51.4
|
52.1
|
175.2
|
Benchmark
(NR)**
|
0.3
|
3.4
|
6.8
|
24.1
|
13.3
|
89.0
|
MSCI
Frontiers Index (NR)
|
4.3
|
6.2
|
11.5
|
12.3
|
19.7
|
79.3
|
MSCI
Emerging Markets Index (NR)
|
2.6
|
3.3
|
5.9
|
-6.5
|
15.1
|
59.9
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
-0.6
|
8.7
|
21.2
|
27.1
|
38.8
|
104.2
|
Net
asset value
|
0.5
|
5.6
|
22.3
|
38.7
|
47.5
|
123.8
|
Benchmark
(NR)**
|
0.1
|
2.5
|
9.1
|
13.6
|
9.8
|
54.3
|
MSCI
Frontiers Index (NR)
|
4.2
|
5.3
|
14.0
|
2.8
|
16.0
|
45.3
|
MSCI
Emerging Markets Index (NR)
|
2.5
|
2.4
|
8.2
|
-14.4
|
11.6
|
29.6
|
Sources:
BlackRock and Standard & Poor’s Micropal
*
17 December 2010.
**
The Company’s benchmark changed from MSCI Frontier Markets Index to
MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (net total return, USD) effective 1/4/2018.
At month
end
|
|
US
Dollar
|
|
Net
asset value - capital only:
|
206.48c
|
Net
asset value - cum income:
|
209.77c
|
Sterling:
|
|
Net
asset value - capital only:
|
163.45p
|
Net
asset value - cum income:
|
166.06p
|
Share
price:
|
152.75p
|
Total
assets (including income):
|
£314.4m
|
Discount to
cum-income NAV:
|
8.0%
|
Gearing:
|
Nil
|
Gearing range (as
a % of gross assets):
|
0-20%
|
Net
yield*:
|
4.1%
|
Ordinary shares
in issue**:
|
189,325,748
|
Ongoing
charges***:
|
1.38%
|
Ongoing charges
plus taxation and performance fee****:
|
3.78%
|
*The
Company’s yield based on dividends announced in the last 12 months
as at the date of the release of this announcement is 4.1% and
includes the 2023 interim dividend of 3.10
cents per share, declared on 6 June
2023, and paid to shareholders on 7
July 2023 and the 2023 final dividend of 4.90 cents per share, declared on 30 November 2023, and paid to shareholders on
14 February 2024.
**
Excluding 52,497,053 ordinary shares held in treasury.
***The Company’s
ongoing charges are calculated as a percentage of average daily net
assets and using the management fee and all other operating
expenses excluding performance fees, finance costs, direct
transaction costs, custody transaction charges, VAT recovered,
taxation and certain non-recurring items for Year ended
30 September 2023.
****
The Company’s ongoing charges are calculated as a percentage of
average daily net assets and using the management fee and all other
operating expenses and including performance fees but excluding
finance costs, direct transaction costs, custody transaction
charges, VAT recovered, taxation and certain non-recurring items
for Year ended 30 September
2023.
Sector
Analysis
|
Gross market value as a % of net
assets
|
|
Country
Analysis
|
Gross market value as a % of net
assets
|
|
|
|
|
|
Financials
|
44.7
|
|
Saudi
Arabia
|
17.7
|
Industrials
|
15.0
|
|
Indonesia
|
14.3
|
Energy
|
12.1
|
|
Philippines
|
10.1
|
Materials
|
10.0
|
|
Kazakhstan
|
8.0
|
Consumer
Staples
|
9.3
|
|
United Arab
Emirates
|
6.9
|
Real
Estate
|
8.2
|
|
Hungary
|
6.8
|
Consumer
Discretionary
|
8.1
|
|
Greece
|
5.9
|
Communication
Services
|
6.5
|
|
Vietnam
|
5.2
|
Information
Technology
|
5.8
|
|
Poland
|
4.8
|
Health
Care
|
0.7
|
|
Chile
|
4.8
|
|
-----
|
|
Thailand
|
4.6
|
|
120.4
|
|
Qatar
|
4.0
|
|
-----
|
|
Czech
Republic
|
3.9
|
Short
positions
|
-2.7
|
|
Georgia
|
2.6
|
|
=====
|
|
Argentina
|
2.6
|
|
|
|
Multi-International
|
2.5
|
|
|
|
Kenya
|
2.5
|
|
|
|
Colombia
|
2.3
|
|
|
|
Malaysia
|
2.1
|
|
|
|
Turkey
Pakistan
Romania
Nigeria
Cambodia
Bangladesh
Egypt
Total
|
2.1
1.8
1.5
1.3
0.9
0.7
0.5
-----
120.4
|
|
|
|
|
----
|
|
|
|
Short
positions
|
-2.7
|
|
|
|
|
=====
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
30.04
2023
%
|
31.05
2023
%
|
30.06
2023
%
|
31.07
2023
%
|
31.08
2023
%
|
30.09
2023
%
|
31.10
2023
%
|
30.11
2023
%
|
31.12
2023
%
|
31.01
2024
%
|
29.02
2024
%
|
31.03
2024
%
|
Long
|
108.5
|
112.9
|
116.9
|
113.0
|
113.3
|
114.9
|
118.8
|
113.1
|
116.6
|
119.5
|
121.4
|
120.4
|
Short
|
3.8
|
3.6
|
4.0
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
4.7
|
3.6
|
3.5
|
2.7
|
Gross
|
112.3
|
116.5
|
120.9
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
121.3
|
123.1
|
124.9
|
123.1
|
Net
|
104.7
|
109.3
|
112.9
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
111.9
|
115.9
|
117.9
|
117.7
|
Ten Largest Investments
Company
|
Country of Risk
|
Gross market value as a % of net
assets
|
|
|
|
Saudi
National Bank
|
Saudi
Arabia
|
4.8
|
Bank
Central Asia
|
Indonesia
|
4.7
|
Kaspi.Kz
JCS
|
Kazakhstan
|
3.8
|
Emaar
Properties
|
United Arab
Emirates
|
3.4
|
FPT
|
Vietnam
|
3.2
|
Abdullah Al
Othaim Markets
|
Saudi
Arabia
|
3.0
|
Ayala
Land
|
Philippines
|
2.9
|
Etihad
Etisalat
|
Saudi
Arabia
|
2.7
|
Wizz
Air Holdings
|
Hungary
|
2.6
|
Bank
Of Georgia
|
Georgia
|
2.6
|
Commenting
on the markets, Sam Vecht,
Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The
Company’s NAV rose by 0.5% in March, outperforming its benchmark
the MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (“Benchmark Index”) which returned 0.1%. For
reference, the MSCI Emerging Markets Index was up 2.5% while the
MSCI Frontier Markets Index was up 4.2% over the same period. All
performance figures are on a US Dollar basis with net income
reinvested.
Emerging markets
more broadly continued their strong run from February, gaining
+2.5% in March. Latin America
finished the month up by 1.1%, with Argentina outpacing the rest of the region,
climbing 12.7%. EMEA finished the month flat at +0.2%, with
Central Europe pulling back after
a strong February and Czech
Republic (+3.3%) leading the region. Egypt was the worst performing market across
EM, down -33.0% in USD terms on heels of currency devaluation that
we had been anticipating.
March
was yet another good month for the fund where several stocks picks
across a variety of different markets did well. Our Kazakhstan exposure continued to add to
performance with e-commerce company Kaspi (+24.3%) being the single
best performing stock over the period. Turkey exposure through gold mine operator
Eldorado Gold (+35.3%) also helped performance, reversing February
losses. In Asia, Vietnamese IT
services provider FPT Corp (+6.3%) and Philippines based port management company
International Container Terminal Services (ICTSI, +12.9%) both did
well. ICTSI delivered a slight beat on underlying revenues for 4Q
2023 and the free cash flow generation remains solid.
On
the flipside, Polish clothing manufacturer LPP (-13.9%) was the
largest detractor over the month following a short seller report
released by Hindenburg Research claiming the company has continued
its operations in Russia, despite
the company's communication with the market suggesting otherwise.
Another detractor over the month was Jeronimo Martins (-17.0%), a Polish supermarket
chain. The stock sold off on week food inflation prints in
Poland. Ukrainian iron ore pellet
producer Ferrexpo (-44.2%) continued to weigh on performance in
March. In addition to cancellation of the dividend announced in
January, the company communicated that they needed more time to
finalize FY results, following potential proceedings related to one
of their mining units in Ukraine.
Over
the course of March, we made some changes to the portfolio. We
locked in profits by exiting our holding in Peruvian bank
Credicorp, which has done very well. We added to our holding in
Philippines based resort and
casino operator Bloomberry Resorts. The stock sold off after having
paid $300mn to settle a decade long
dispute with casino management firm Global Gaming Philippines LLC.
This remains a high conviction stock as we are positive on the new
property outlook. Elsewhere, we also exited our holding in
Ferrexpo. The ongoing court proceedings in Ukraine will likely put the operating company
in creditor administration.
We
believe global markets are starting to feel the impact of higher
interest rates, noting slowing credit growth in particular as
evidence that a demand slowdown is imminent in developed markets.
When combined with a Chinese economy which is struggling to find
its footing we find it difficult to see where a meaningful pick up
in global growth will come from. In contrast we see better
fundamentals in frontier and smaller emerging markets. Monetary
tightening across much of our universe was ahead of that in
developed markets, particularly in Latin
America and Eastern Europe.
With inflation falling across many countries within our universe,
rate cuts have started to materialize. This is a good set up for
domestically oriented economies to see a cyclical pick up. Our
investment universe, in absolute and relative terms, remains
under-researched and we believe this should enable compelling alpha
opportunities.
Sources:
1BlackRock as at
31 March 2024
2MSCI as at
31 March 2024
16 April 2024
ENDS
Latest
information is available by typing www.blackrock.com/uk/brfi
on
the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800"
on Topic 3 (ICV terminal). Neither the contents of the Manager’s
website nor the contents of any website accessible from hyperlinks
on BlackRock’s website (or any other website) is incorporated into,
or forms part of, this announcement.