BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
29 February
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
|
6.4
|
12.6
|
17.1
|
48.6
|
39.6
|
152.0
|
Net
asset value
|
6.3
|
10.5
|
18.0
|
53.4
|
52.7
|
173.5
|
Benchmark
(NR)**
|
4.0
|
7.0
|
5.7
|
26.7
|
14.9
|
88.5
|
MSCI
Frontiers Index (NR)
|
0.7
|
4.2
|
5.9
|
9.4
|
18.6
|
71.9
|
MSCI
Emerging Markets Index (NR)
|
5.5
|
3.9
|
4.1
|
-9.1
|
15.5
|
55.8
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
5.7
|
12.5
|
22.3
|
34.5
|
32.8
|
105.5
|
Net
asset value
|
5.6
|
10.4
|
23.3
|
38.9
|
45.3
|
122.7
|
Benchmark
(NR)**
|
3.3
|
6.9
|
10.4
|
14.6
|
9.3
|
54.1
|
MSCI
Frontiers Index (NR)
|
0.1
|
4.1
|
10.7
|
-1.0
|
12.8
|
39.5
|
MSCI
Emerging Markets Index (NR)
|
4.8
|
3.8
|
8.7
|
-17.7
|
9.8
|
26.4
|
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:
|
206.83c
|
Net
asset value - cum income:
|
208.74c
|
Sterling:
|
|
Net
asset value - capital only:
|
163.50p
|
Net
asset value - cum income:
|
165.01p
|
Share
price:
|
153.50p
|
Total
assets (including income):
|
£312.4m
|
Discount to
cum-income NAV:
|
7.0%
|
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
|
42.9
|
|
Saudi
Arabia
|
18.4
|
Industrials
|
14.9
|
|
Indonesia
|
14.7
|
Energy
|
11.9
|
|
Philippines
|
10.3
|
Consumer
Staples
|
10.5
|
|
Kazakhstan
|
7.9
|
Materials
|
10.2
|
|
United Arab
Emirates
|
6.9
|
Consumer
Discretionary
|
9.6
|
|
Hungary
|
6.9
|
Real
Estate
|
8.4
|
|
Poland
|
6.2
|
Communication
Services
|
6.4
|
|
Greece
|
6.0
|
Information
Technology
|
5.8
|
|
Vietnam
|
5.9
|
Health
Care
|
0.8
|
|
Thailand
|
5.3
|
|
-----
|
|
Chile
|
4.6
|
|
121.4
|
|
Qatar
|
4.2
|
|
-----
|
|
Czech
Republic
|
3.9
|
Short
positions
|
-3.5
|
|
Multi-International
|
2.8
|
|
=====
|
|
Georgia
|
2.4
|
|
|
|
Argentina
|
2.3
|
|
|
|
Colombia
|
2.2
|
|
|
|
Malaysia
|
2.0
|
|
|
|
Peru
|
2.0
|
|
|
|
Turkey
Romania
Cambodia
Ukraine
Bangladesh
Kenya
Pakistan
Total
|
1.8
1.4
0.9
0.8
0.8
0.5
0.3
-----
121.4
|
|
|
|
|
----
|
|
|
|
Short
positions
|
-3.5
|
|
|
|
|
=====
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
31.03
2023
%
|
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
%
|
Long
|
106.3
|
108.5
|
112.9
|
116.9
|
113.0
|
113.3
|
114.9
|
118.8
|
113.1
|
116.6
|
119.5
|
121.4
|
Short
|
3.9
|
3.8
|
3.6
|
4.0
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
4.7
|
3.6
|
3.5
|
Gross
|
110.2
|
112.3
|
116.5
|
120.9
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
121.3
|
123.1
|
124.9
|
Net
|
102.4
|
104.7
|
109.3
|
112.9
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
111.9
|
115.9
|
117.9
|
Ten Largest Investments
Company
|
Country of Risk
|
Gross market value as a % of net
assets
|
|
|
|
Saudi
National Bank
|
Saudi
Arabia
|
5.0
|
Bank
Central Asia
|
Indonesia
|
4.7
|
JSC
Kaspi
|
Kazakhstan
|
3.4
|
Emaar
Properties
|
United Arab
Emirates
|
3.4
|
Ayala
Land
|
Philippines
|
3.2
|
FPT
|
Vietnam
|
3.0
|
Abdullah Al
Othaim Markets
|
Saudi
Arabia
|
3.0
|
Etihad
Etisalat
|
Saudi
Arabia
|
2.9
|
Epam
Systems
|
Multi-International
|
2.8
|
Wizz
Air Holdings
|
Hungary
|
2.6
|
Commenting
on the markets, Sam Vecht,
Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The
Company’s NAV rose by 5.6% in February, significantly outperforming
its benchmark the MSCI Emerging ex Selected Countries + Frontier
Markets + Saudi Arabia Index (“Benchmark Index”) which returned
3.3%. For reference, the MSCI Emerging Markets Index was up by 4.8%
while the MSCI Frontier Markets Index was up by 0.1% over the same
period. All performance figures are on a US Dollar basis with net
income reinvested.
Emerging markets
more broadly almost fully recovered from January weakness, gaining
4.6% in February and broke their four-month streak to marginally
outperform DM (+4.1%) by +0.5%. EMEA finished the month up by 1.6%,
with high degrees of dispersion across the region. Saudi Arabia (+6.6%) was a net winner with
very strong performance from the small and mid-cap space and
expectations that OPEC+ voluntary production cuts would extend into
2Q, supporting the oil price. Central
Europe continued to print robust returns with Poland (+6.3%) and Greece (+3.4%). Latin American markets lagged
the rest of emerging markets, finishing the month flat
(-0.5%).
February was a
strong month for the fund and several stock picks across a variety
of different markets did well. Both Nagacorp (36.4%) and Bank of
Georgia (+23.3%) were two very
strong perfromers. Cambodian integrated gambling resort operator
NagaCorp did well on expectation of improved outbound Chinese
travel. Bank of Georgia share
price rose following news of the company’s acquisition of Armenian
bank Ameriabank, which will allow Bank of Georgia to access the rapidly growing Armenian
market. Kazakhstan exposure also
did well through bank Halyk (+20.1%) and e-commerce company Kaspi
(+12.5%). The latter rallied after releasing full year numbers with
net profit up 60% year on year under-pinned by strong growth across
all business verticals, and an improvement in e-commerce
take-rate.
On
the flipside, the Fund’s Turkey
exposure through gold mine operator Eldorado Gold (-15.3%) was the
biggest detractor amid rate cut expectations being pushed out in
the US which negatively affected sentiment on gold price. Since
then gold has rallied which should support the stock. Advanced Info
Systems (-7.4%), the Thai telecom services provider saw its share
price correct on weak Q423 result. However, we maintain conviction
in the name as we see underlying operating
trends
support out
medium-term investment view. Ukrainian iron ore pellet producer
Ferrexpo (-17.5%) was another detractor as the dividend announced
in January was cancelled due to legal claims overhang.
Over
the course of February, we made some changes to the portfolio. We
rotated some of our bank exposure in Indonesia by exiting Bank Mandiri and adding
to Bank Central Asia given its relatively stronger funding
franchise. We also exited our holding in Colombian oil producer
Ecopetrol as our investment case had largely played out.
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
29 February 2024
2MSCI as at
29 February 2024
25 March 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.