BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
31 May 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
|
1.0
|
-2.6
|
15.5
|
42.6
|
40.5
|
145.4
|
Net
asset value
|
-2.2
|
-3.7
|
11.2
|
40.0
|
43.9
|
163.3
|
Benchmark
(NR)**
|
-3.4
|
-3.9
|
2.9
|
17.3
|
7.0
|
81.1
|
MSCI
Frontiers Index (NR)
|
2.0
|
4.2
|
11.8
|
4.0
|
13.0
|
79.1
|
MSCI
Emerging Markets Index (NR)
|
-1.1
|
2.8
|
9.4
|
-7.1
|
17.9
|
60.3
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
2.7
|
-2.0
|
18.6
|
28.1
|
42.0
|
101.4
|
Net
asset value
|
-0.5
|
-3.1
|
14.2
|
25.8
|
45.4
|
115.8
|
Benchmark
(NR)**
|
-1.8
|
-3.3
|
5.7
|
5.0
|
8.0
|
49.0
|
MSCI
Frontiers Index (NR)
|
3.8
|
4.8
|
14.9
|
-6.9
|
14.1
|
46.2
|
MSCI
Emerging Markets Index (NR)
|
0.6
|
3.5
|
12.4
|
-16.6
|
19.0
|
30.9
|
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:
|
194.42c
|
Net
asset value - cum income:
|
202.26c
|
Sterling:
|
|
Net
asset value - capital only:
|
152.70p
|
Net
asset value - cum income:
|
158.86p
|
Share
price:
|
149.50p
|
Total
assets (including income):
|
£300.8m
|
Discount to
cum-income NAV:
|
5.9%
|
Gearing:
|
Nil
|
Gearing range (as
a % of gross assets):
|
0-20%
|
Net
yield*:
|
4.4%
|
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 4.4%, and
includes the 2023 final dividend of 4.90
cents per share, declared on 30
November 2023, and paid to shareholders on 14 February 2024, and the 2024 interim dividend
of 3.50 cents per share, declared on
31 May 2024, and to be paid to
shareholders on 02 July
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
|
45.4
|
|
Saudi
Arabia
|
15.6
|
Industrials
|
12.7
|
|
Indonesia
|
12.7
|
Energy
|
11.9
|
|
Kazakhstan
|
8.3
|
Materials
|
10.0
|
|
Philippines
|
8.2
|
Consumer
Staples
|
9.1
|
|
United Arab
Emirates
|
7.8
|
Real
Estate
|
8.5
|
|
Hungary
|
7.3
|
Communication
Services
|
7.1
|
|
Greece
|
6.1
|
Consumer
Discretionary
|
6.8
|
|
Poland
|
6.1
|
Information
Technology
|
4.9
|
|
Turkey
|
4.9
|
Health
Care
|
0.9
|
|
Qatar
|
4.7
|
Utilities
|
0.8
|
|
Kenya
|
3.9
|
|
-----
|
|
Thailand
|
3.9
|
|
118.1
|
|
Argentina
|
3.5
|
|
-----
|
|
Czech
Republic
|
3.5
|
Short
positions
|
-2.4
|
|
Pakistan
|
3.1
|
|
|
|
Vietnam
|
3.1
|
|
|
|
Malaysia
|
2.4
|
|
|
|
Singapore
|
2.3
|
|
|
|
Colombia
|
2.3
|
|
|
|
Chile
Multi-International
Georgia
Egypt
Cambodia
Bangladesh
Romania
Nigeria
|
1.8
1.7
1.3
1.1
1.1
0.7
0.5
0.2
-----
118.1
|
|
|
|
|
----
|
|
|
|
Short
positions
|
-2.4
|
|
|
|
|
=====
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
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
%
|
30.04
2024
%
|
31.05
2024
%
|
Long
|
116.9
|
113.0
|
113.3
|
114.9
|
118.8
|
113.1
|
116.6
|
119.5
|
121.4
|
120.4
|
120.8
|
118.1
|
Short
|
4.0
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
4.7
|
3.6
|
3.5
|
2.7
|
2.3
|
2.4
|
Gross
|
120.9
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
121.3
|
123.1
|
124.9
|
123.1
|
123.1
|
120.5
|
Net
|
112.9
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
111.9
|
115.9
|
117.9
|
117.7
|
118.5
|
115.7
|
Ten Largest Investments
Company
|
Country of Risk
|
Gross market value as a % of net
assets
|
|
|
|
Bank
Central Asia
|
Indonesia
|
4.4
|
Emaar
Properties
|
United Arab
Emirates
|
4.2
|
Saudi
National Bank
|
Saudi
Arabia
|
4.2
|
Kaspi.Kz
JCS
|
Kazakhstan
|
3.9
|
FPT
|
Vietnam
|
3.1
|
Wizz
Air Holdings
|
Hungary
|
2.9
|
Jeronimo
Martins
|
Poland
|
2.9
|
Athens
International Airport
|
Greece
|
2.6
|
Vista
Oil & Gas
|
Argentina
|
2.5
|
CP
All
|
Thailand
|
2.5
|
Commenting
on the markets, Sam Vecht,
Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The
Company’s NAV fell by 0.5 % in May, outperforming its benchmark the
MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (“Benchmark Index”) which returned -1.8%. For
reference, the MSCI Emerging Markets Index was up 0.6% while the
MSCI Frontier Markets Index was up 3.8% over the same period. All
performance figures are on a US Dollar basis with net income
reinvested.
Emerging Markets
posted flattish returns (+0.6%) in May, significantly
underperforming Developed Markets (+4.5%). EMEA (-2.4%)
underperformed against the broader index, with significant
performance dispersion across markets. Egypt and Czech were the best performing EMEA
markets in May up by 11.5% and 8.5%, respectively. Saudi Arabia (-7.4%) was the biggest laggard,
mainly on oil price decline and news of government further selling
down stake in Saudi Aramco. In Latin
America, Argentina,
Colombia and Peru all posted positive returns as rate cuts
in Colombia and Peru were well received.
Several stock
picks did well in May. The Polish supermarket chain Jeronimo Martins (+11.0%) was the best
performing stock over the month, extending its strong run from
April. Turkey exposure also added
to performance through our holdings in gold mine operator Eldorado
Gold (+13.3%) and Turkish commercial bank Türkiye İş Bankası
(Isbank) (+12.5%). The former was supported by an increase in gold
prices, as the commodity continues to rally despite a more hawkish
Federal Reserve. Türkiye İş Bankası performed well on the back of
investor confidence that Turkey
will continue on its path of monetary orthodoxy. E-commerce company
Kaspi (+9.0%) was another strong performer as it continues to find
new pockets to expand its user base.
On
the flipside, Bank of Georgia
(-30.0%) was the worst performer. The stock detracted after the
passing of the Georgian Foreign Agents bill, which requires media
and non-governmental organisations with over 20% foreign funding to
register as foreign agents, undergo strict audits or incur fines.
We reduced our exposure to the name over the month and we are
monitoring the situation closely. IT services company EPAM (-24.4%)
was another detractor, as the weaker full year guidance continued
to weigh on the stock. Indonesian retailer Mitra Adiperkasa
(-19.3%) also detracted on concerns around earnings
growth.
Over
the course of May, we made some changes to the portfolio. We
initiated a position in
Isbank in
Turkey as we believe the bank will
benefit once disinflation starts coming through in the country. We
exited Chilean lithium producer SQM
given
concerns of over-supply in the lithium market. We also reduced our
exposure to the Philippines by
exiting fast food restaurant chain Jollibee as we are cautious on
their international growth ambitions.
As
higher global rates continue to feed through into the real economy,
we expect some moderation of demand in developed markets. We note
slowing credit growth in particular in the US. In contrast, we
continue to see improving activity levels in frontier and smaller
emerging markets. With inflation falling across many countries
within our universe, rate cuts have started to materialize in some
areas of our universe. This is a good set up for domestically
oriented economies to see a cyclical pick up. We remain positive on
the outlook for small emerging and frontier markets versus
developed markets, and we find significant value in currencies and
equity markets across our investment opportunity set. 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 May 2024
2MSCI as at
31 May 2024
27 June 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.