BLACKROCK FRONTIERS INVESTMENT TRUST
PLC (LEI: 5493003K5E043LHLO706)
All information is at 30 April
2020 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 |
6.0 |
-24.0 |
-33.6 |
-32.1 |
-5.4 |
21.6 |
Net asset value |
10.6 |
-21.4 |
-27.3 |
-23.6 |
-4.5 |
32.5 |
Benchmark (NR)** |
8.2 |
-16.2 |
-22.0 |
-5.6 |
8.0 |
32.4 |
MSCI Frontiers Index
(NR) |
4.9 |
-18.1 |
-10.7 |
-5.1 |
8.5 |
33.9 |
MSCI Emerging Markets
Index (NR) |
7.3 |
-8.6 |
-9.0 |
4.3 |
21.2 |
29.0 |
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
Share price |
7.8 |
-27.2 |
-35.8 |
-33.7 |
-22.2 |
-1.2 |
Net asset value |
12.5 |
-24.8 |
-29.7 |
-25.4 |
-21.5 |
7.5 |
Benchmark (NR)** |
10.0 |
-19.8 |
-24.5 |
-7.9 |
-11.4 |
7.9 |
MSCI Frontiers Index
(NR) |
6.7 |
-21.6 |
-13.6 |
-7.5 |
-11.0 |
8.3 |
MSCI Emerging Markets
Index (NR) |
9.2 |
-12.5 |
-12.0 |
1.7 |
-0.5 |
4.3 |
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: |
116.46c |
Net asset value - cum
income: |
118.78c |
Sterling: |
|
Net asset value -
capital only: |
92.33p |
Net asset value - cum
income: |
94.17p |
Share price: |
88.20p |
Total assets (including
income): |
£227.7m |
Discount to cum-income
NAV: |
6.3% |
Gearing: |
nil |
Gearing range (as a %
of gross assets): |
0-20% |
Net yield*: |
6.8% |
Ordinary shares in
issue: |
241,822,801 |
Ongoing charges**: |
1.4% |
Ongoing charges plus
taxation and performance fee: |
1.4% |
*The Company’s yield based on dividends announced in the last 12
months as at the date of the release of this announcement is 6.8%
and includes the 2019 final dividend of 4.75
cents per share declared on 06
December 2019 with a pay date of 07
February 2020. Also included is the 2019 interim dividend of
3.00 cents per share announced on
30 May 2019 and paid to shareholders
on 28 June 2019.
**Calculated as a percentage of average net assets and using
expenses, excluding performance fees and interest costs for the
year ended 30 September 2019.
Sector
Analysis |
Gross
market value as a % of net assets* |
|
Country
Analysis |
Gross
market value as a % of net assets* |
|
|
|
|
|
|
|
Financials |
26.1 |
|
Indonesia |
13.7 |
|
Consumer
Discretionary |
15.0 |
|
Thailand |
11.1 |
|
Consumer Staples |
14.7 |
|
Vietnam |
9.6 |
|
Industrials |
14.3 |
|
Egypt |
9.2 |
|
Real Estate |
10.9 |
|
Philippines |
9.0 |
|
Energy |
7.4 |
|
Saudi Arabia |
7.6 |
|
Communication
Services |
5.8 |
|
Kazakhstan |
5.2 |
|
Materials |
5.7 |
|
United Arab
Emirates |
4.8 |
|
Information
Technology |
2.1 |
|
Pakistan |
4.7 |
|
Health Care |
2.0 |
|
Malaysia |
4.5 |
|
Utilities |
1.9 |
|
Chile |
3.8 |
|
|
----- |
|
Qatar |
3.7 |
|
|
105.9 |
|
Poland |
3.0 |
|
|
----- |
|
Greece |
2.7 |
|
Short positions |
-2.6 |
|
Romania |
2.2 |
|
|
===== |
|
Ukraine |
2.1 |
|
|
|
|
PAN-Africa |
1.9 |
|
|
|
|
Hungary |
1.8 |
|
|
|
|
Peru |
1.6 |
|
|
|
|
Kenya |
1.5 |
|
|
|
|
Pan-Emerging
Europe |
1.3 |
|
|
|
|
Colombia |
0.5 |
|
|
|
|
Nigeria |
0.4 |
|
|
|
|
|
----- |
|
|
|
|
Total |
105.9 |
|
|
|
|
|
----- |
|
|
|
|
Short positions |
-2.6 |
|
|
|
|
|
===== |
|
*reflects gross market exposure from contracts for difference
(CFDs).
Market Exposure
|
31.05
2019
% |
30.06
2019
% |
31.07
2019
% |
31.08
2019
% |
30.09
2019
% |
31.10
2019
% |
30.11
2019
% |
31.12
2019
% |
31.01
2020
% |
29.02
2020
% |
31.03
2020
% |
30.04
2020
% |
Long |
111.0 |
114.1 |
117.0 |
111.5 |
110.1 |
108.0 |
107.8 |
108.0 |
113.0 |
107.1 |
106.4 |
105.9 |
Short |
8.8 |
8.1 |
5.1 |
4.2 |
4.1 |
2.2 |
1.7 |
1.0 |
1.1 |
3.8 |
2.5 |
2.6 |
Gross |
119.8 |
122.2 |
122.1 |
115.7 |
114.2 |
110.2 |
109.5 |
109.0 |
114.1 |
110.9 |
108.9 |
108.5 |
Net |
102.2 |
106.0 |
111.9 |
107.3 |
106.0 |
105.8 |
106.1 |
107.0 |
111.9 |
103.3 |
103.9 |
103.3 |
Ten Largest Investments
Company |
Country of Risk |
Gross market value
as a % of net assets |
|
|
|
Bank Mandiri |
Indonesia |
3.5 |
Astra International |
Indonesia |
3.4 |
United International Transport |
Saudi Arabia |
3.3 |
PTT Exploration & Production
Public |
Thailand |
3.1 |
MCB Bank |
Pakistan |
2.9 |
Eastern Tobacco |
Egypt |
2.9 |
Vincom Retail |
Vietnam |
2.9 |
LT Group |
Philippines |
2.8 |
Ooredoo |
Qatar |
2.7 |
Mobile World |
Vietnam |
2.4 |
Commenting on the markets, Sam
Vecht and Emily Fletcher,
representing the Investment Manager noted:
The Company’s NAV returned +12.5%1 versus its
benchmark the MSCI Emerging ex Selected Countries + Frontier
Markets + Saudi Arabia Index (“Benchmark Index”), which returned
+10.0% in April2. For reference, the MSCI Emerging
Markets Index ended the month +9.2% and the MSCI Frontier Markets
Index +6.7%2 over the same period (all performance
figures are on a US Dollar basis with net income reinvested).
April saw markets rebound in anticipation of some recovery in
economic activity post Covid-19 lockdowns across the world. Several
of our markets posted double digit positive returns over the month,
such as Pakistan (+18%),
Thailand, Chile and Vietnam all over 16%. The oil markets suffered
a from a breakdown in the Organisation of the Petroleum Exporting
Countries (‘OPEC’) supply agreements and oil futures prices turned
negative for the first time in history, driven by concerns on
limitations of storage capacity and the need to roll forward
short-term futures contracts underlying oil ETFs. However, there
has been a recovery in global oil prices since led by a renewed
agreement between OPEC.
The biggest contributors to performance in April were our
positions in Vietnam, Indonesia and Thailand. In Vietnam, the biggest contributor was Mobile
World which reported strong Q1 results showing a huge expansion of
sales in their supermarket format, driven by customers stocking for
Covid-19. Vincom Retail also rebounded strongly from the lows,
rising 22%. Our Indonesian positions rebounded this month,
particularly retailer Mitra Adiperkasa (+52.2%), real estate
developer Pakuwon Jati (+34.6%) and Unilever Indonesia (+25.2%). In
Thailand, our positions also saw a
strong rebound with AEON (+33.2%) and PTTEP (+25.2%). In
Pakistan our positions in MCB Bank
(13.5%) and Hub Power (27.8%) were the main contributors and we
retain a cautiously positive view post the large currency
adjustment as the country now grapples with Covid-19.
The largest detractor in April was our significant position in
the Philippines. Our holdings in
the tobacco conglomerate LT Group (-5.8%), Bank of the Philippines (-4.6%) and casino operator
Bloomberry Resorts (-5.8%) were the main detractors. We retain our
positive view on Philippines and
believe that it will be well positioned versus other countries as
the world normalises post Covid-19 and growth rebounds. The second
biggest detractor in April was our under-weight in Saudi Arabia, particularly the banks, where we
saw a decoupling of the equity market with the oil price; this
break-down was largely unexplained.
While smaller emerging and frontier markets are vulnerable to
health and economic fall-out from Covid-19, data thus far on
infection rate and fatalities gives some hope that the damage to
life and economy will not be as pervasive as originally feared. We
remain positive on prospects of select economies, where policy
makers have taken upfront, prudent measures to contain Covid-19.
Where the foreign exchange debt situation is relatively manageable,
countries will benefit from a lower oil price whose currencies are
not over-valued. More broadly, many of our markets look very
compelling at current valuation, trading at sub 8x trailing price
to earnings and in some cases close to Global Financial Crisis
levels. Despite the bounce, the portfolio is still around the
lowest valuation levels that we have seen in the last 10 years.
Sources:
1BlackRock as at 30 April
2020
2MSCI as at 30 April
2020
29 May 2020
ENDS
Latest information is available by typing
www.blackrock.co.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.