BLACKROCK FRONTIERS INVESTMENT TRUST
PLC (LEI: 5493003K5E043LHLO706)
All information is at 30 June
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 |
7.7 |
18.4 |
-26.2 |
-26.2 |
9.1 |
35.7 |
Net asset value |
4.6 |
21.2 |
-23.9 |
-20.6 |
10.4 |
45.1 |
Benchmark (NR)** |
3.2 |
17.3 |
-18.3 |
-1.9 |
24.4 |
43.6 |
MSCI Frontiers Index
(NR) |
1.7 |
15.1 |
-8.5 |
-0.4 |
26.4 |
46.9 |
MSCI Emerging Markets
Index (NR) |
7.4 |
18.5 |
-0.5 |
11.2 |
46.6 |
42.4 |
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
Share price |
7.7 |
18.0 |
-28.3 |
-29.7 |
-14.2 |
8.0 |
Net asset value |
4.5 |
20.7 |
-26.1 |
-24.3 |
-13.1 |
15.3 |
Benchmark (NR)** |
3.1 |
16.9 |
-20.7 |
-6.7 |
-2.2 |
14.7 |
MSCI Frontiers Index
(NR) |
1.7 |
14.7 |
-11.2 |
-5.2 |
-0.7 |
16.4 |
MSCI Emerging Markets
Index (NR) |
7.4 |
18.1 |
-3.4 |
5.8 |
15.1 |
12.8 |
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: |
123.96c |
Net asset value - cum
income: |
124.78c |
Sterling: |
|
Net asset value -
capital only: |
100.32p |
Net asset value - cum
income: |
100.99p |
Share price: |
96.30p |
Total assets (including
income): |
£244.2m |
Discount to cum-income
NAV: |
4.6% |
Gearing: |
nil |
Gearing range (as a %
of gross assets): |
0-20% |
Net yield*: |
6.0% |
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 6.0%
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 2020 interim dividend of
2.75 cents per share announced on
28 May 2020 and due to be paid to
shareholders on 26 June 2020.
**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 |
28.8 |
|
Indonesia |
12.8 |
|
Consumer
Discretionary |
16.7 |
|
Saudi Arabia |
11.0 |
|
Industrials |
14.5 |
|
Philippines |
10.0 |
|
Consumer Staples |
11.9 |
|
Vietnam |
8.9 |
|
Energy |
9.1 |
|
Thailand |
8.8 |
|
Real Estate |
7.2 |
|
Egypt |
8.2 |
|
Communication
Services |
6.2 |
|
Kazakhstan |
6.1 |
|
Materials |
5.9 |
|
Chile |
5.4 |
|
Utilities |
4.8 |
|
Malaysia |
4.7 |
|
Health Care |
2.6 |
|
Pakistan |
3.9 |
|
Information
Technology |
2.1 |
|
Greece |
3.7 |
|
|
----- |
|
Qatar |
3.7 |
|
|
109.8 |
|
Romania |
3.7 |
|
|
----- |
|
United Arab
Emirates |
3.5 |
|
Short positions |
-1.5 |
|
Poland |
3.0 |
|
|
===== |
|
Czech Republic |
2.0 |
|
|
|
|
Peru |
1.9 |
|
|
|
|
PAN-Africa |
1.8 |
|
|
|
|
Pan-Emerging
Europe |
1.8 |
|
|
|
|
Ukraine |
1.7 |
|
|
|
|
Hungary |
1.6 |
|
|
|
|
Kenya |
1.3 |
|
|
|
|
Nigeria |
0.3 |
|
|
|
|
|
----- |
|
|
|
|
Total |
109.8 |
|
|
|
|
|
----- |
|
|
|
|
Short positions |
-1.5 |
|
|
|
|
|
===== |
|
*reflects gross market exposure from contracts for difference
(CFDs).
Market Exposure
|
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
% |
31.05
2020
% |
30.06
2020
% |
Long |
117.0 |
111.5 |
110.1 |
108.0 |
107.8 |
108.0 |
113.0 |
107.1 |
106.4 |
105.9 |
109.6 |
109.8 |
Short |
5.1 |
4.2 |
4.1 |
2.2 |
1.7 |
1.0 |
1.1 |
3.8 |
2.5 |
2.6 |
2.5 |
1.5 |
Gross |
122.1 |
115.7 |
114.2 |
110.2 |
109.5 |
109.0 |
114.1 |
110.9 |
108.9 |
108.5 |
112.1 |
111.3 |
Net |
111.9 |
107.3 |
106.0 |
105.8 |
106.1 |
107.0 |
111.9 |
103.3 |
103.9 |
103.3 |
107.1 |
108.3 |
Ten Largest Investments
Company |
Country of Risk |
Gross market value
as a % of net assets |
|
|
|
PTT Exploration & Production
Public |
Thailand |
3.9 |
Bank Mandiri |
Indonesia |
3.6 |
Astra International |
Indonesia |
3.3 |
United International Transport |
Saudi Arabia |
3.1 |
Halyk Savings Bank |
Kazakhstan |
2.9 |
Eastern Tobacco |
Egypt |
2.8 |
Mitra Adiperkasa |
Indonesia |
2.8 |
MCB Bank |
Pakistan |
2.7 |
LT Group |
Philippines |
2.6 |
Vincom Retail |
Vietnam |
2.5 |
Commenting on the markets, Sam
Vecht and Emily Fletcher,
representing the Investment Manager noted:
The Company’s NAV returned +4.5% versus its benchmark the MSCI
Emerging ex Selected Countries + Frontier Markets + Saudi Arabia
Index (“Benchmark Index”), which returned +3.1% in June. For
reference, the MSCI Emerging Markets Index returned +7.4% and the
MSCI Frontier Markets Index returned +1.7% over the same period
(all performance figures are on a US Dollar basis with net income
reinvested).
Our universe of smaller emerging and frontier markets continued
their rebound in June, having been a laggard to Developed Markets
(DM) in the rally, have to date outperformed DM by 2.6%.
Supportive of global equities was optimism around peaking COVID-19
cases - particularly in Europe -
and signs that the world was past “peak lockdown” and that from
here on economies would gradually reopen and economic activity
would normalise. The bearish predictions of the rapid spread of
COVID-19 emerged. However, fatality rates in the emerging and
frontiers markets have not been broadly borne out.
The biggest contributors to performance in June were our
positions in the Philippines,
driven by our holdings across industrials, consumer and financials
stocks: International Container Terminals (+18.7%), Bloomberry
Resorts (+21.7%) and Bank of the
Philippines (+11.4%). Stock selection in Saudi Arabia contributed positively: our
holding in Saudi Arabia car rental
company, United International Transport (+13.4%) was a strong
performer, whilst the majority of the market (which we are
underweight) lagged the recovery. Our Indonesian positions
continued to contribute to performance as their strong rebound
extended into June, driven by our cyclical holdings in retailer
Mitra Adiperkasa (+10.0%) and real estate developer Pakuwon Jati
(+17.5%)
The largest detractor in June was our position in Vietnam, as the market gave back some of its
strong gains in April and May. The biggest stock contributors
in Vietnam were mall operator,
Vincom Retail (-9.6%), followed by retailer, Mobile World (-4.2%).
Our holding in Polish apparel retailer, LPP (-11.2%), was an
additional detractor as store closures and weak near-term sales
continued. Thai based consumer finance company, Aeon Thana
(-21.5%), detracted amid concerns of further non-performing loan
(NPL) formation and the need for provisioning.
In terms of recent portfolio changes, we have been taking
profits in positions that have worked well in Indonesia and Philippines, while maintaining conviction in
our overweight positions in these markets. We have also continued
to add capital in Eastern Europe.
Generally, these markets are very cheap and almost entirely
forgotten. We believe that the European Recovery Fund, as currently
envisaged would be a meaningful positive for these economies,
directing a very substantial infrastructure spend into the region.
Elsewhere, we have cut exposure to Dubai as we believe the anticipated pick up in
tourism remains delayed. We have reduced some pulp exposure in
Chile where we have concerns that
COVID-19 could have accelerated structural decline in the print
business.
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 the economy will not be as pervasive as originally feared.
We remain positive on the 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, that will benefit from lower oil prices and whose
currencies are not over-valued. More broadly, many of our markets
continue to look very compelling at current valuation, trading at
sub 9x 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 past 10
years.
Sources:
1BlackRock as at 30 June
2020
2MSCI as at 30 June
2020
24 July 2020
ENDS
Latest information is available by typing
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"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.