BLACKROCK FRONTIERS
INVESTMENT TRUST PLC |
|
All information is at
30 September 2016 and unaudited. |
|
Performance of
ordinary share portfolio at month end with net income
reinvested. |
|
|
One month
% |
Three months
% |
One year
% |
Three
years
% |
Five years
% |
Since
Launch*
% |
Sterling: |
|
|
|
|
|
|
Share
price |
3.2 |
10.7 |
30.0 |
28.7 |
105.3 |
54.0 |
Net asset
value |
2.9 |
7.3 |
27.3 |
35.3 |
96.3 |
57.0 |
MSCI
Frontiers Index (NR) |
3.4 |
5.6 |
17.7 |
24.0 |
50.5 |
27.0 |
MSCI
Emerging Markets Index (NR) |
2.1 |
12.2 |
36.2 |
22.6 |
39.2 |
12.8 |
|
|
|
|
|
|
|
US
Dollars: |
|
|
|
|
|
|
Share
price |
2.4 |
7.6 |
11.6 |
3.3 |
71.6 |
28.7 |
Net asset
value |
2.0 |
4.3 |
9.2 |
8.7 |
64.0 |
31.1 |
MSCI
Frontiers Index (NR) |
2.6 |
2.6 |
0.9 |
-0.5 |
25.5 |
5.8 |
MSCI
Emerging Markets Index (NR) |
1.3 |
9.0 |
16.8 |
-1.7 |
16.1 |
-6.0 |
|
|
|
|
|
|
|
Sources:
BlackRock and Standard & Poor’s Micropal
* 17 December 2010. |
|
|
At month end
Ordinary Shares |
|
US
Dollar |
|
Net asset
value - capital only: |
164.44c |
Net asset
value - cum income: |
168.18c |
Sterling: |
|
Net asset
value - capital only: |
126.58p |
Net asset
value - cum income: |
129.46p |
Share
price: |
129.00p |
Total
assets (including income): |
£212.8m |
Discount
to cum-income NAV: |
0.4% |
Gearing: |
nil |
Gearing
range (as a % of gross assets): |
0-20% |
Net
yield*: |
4.0% |
Ordinary
shares in issue: |
164,333,108 |
Ongoing
charges**: |
1.5% |
Ongoing
charges plus taxation and performance fee: |
1.6% |
|
*The
Company’s yield based on dividends announced in the last 12 months
as at the date of the release of this announcement is 4.0% and
includes the 2015 final dividend of 4.15 cents per share declared
on 18 December 2015, paid to shareholders on 19 February 2016 and
the 2016 interim dividend of 2.60 cents per share announced on 16
May 2016 and paid to shareholders on 1 July 2016.
**Calculated as a percentage of average net assets and using
expenses, excluding performance fees and interest costs for the
year ended 30 September 2015. |
|
The following
relates specifically to the ordinary share portfolio. |
|
|
|
|
|
Sector
Analysis |
Gross assets(%)* |
|
Country
Analysis |
Gross assets(%)* |
|
|
|
|
|
Financials |
35.1 |
|
Argentina |
13.8 |
Consumer
Staples |
17.8 |
|
Pakistan |
11.8 |
Telecommunication |
11.2 |
|
Romania |
11.2 |
Utilities |
7.9 |
|
Bangladesh |
9.2 |
Energy |
6.7 |
|
Kazakhstan |
9.2 |
Health
Care |
6.3 |
|
Vietnam |
7.3 |
Materials |
5.3 |
|
Sri
Lanka |
6.9 |
Information
Technology |
5.3 |
|
Morocco |
5.7 |
Industrials |
5.1 |
|
Ukraine |
5.6 |
Real
Estate |
2.0 |
|
Kenya |
5.5 |
Consumer
Discretionary |
1.3 |
|
Kuwait |
3.8 |
|
----- |
|
Nigeria |
3.2 |
Total |
104.0 |
|
Eurasia |
2.3 |
|
----- |
|
Estonia |
2.1 |
Short
positions |
0.0 |
|
Slovenia |
2.1 |
|
===== |
|
Caribbean |
1.9 |
|
|
|
Philippines |
1.4 |
|
|
|
Egypt |
0.8 |
|
|
|
Saudi
Arabia |
0.2 |
|
|
|
|
----- |
|
|
|
Total |
104.0 |
|
|
|
|
----- |
|
|
|
Short
positions |
0.0 |
|
|
|
|
===== |
*reflects gross market
exposure from contracts for difference (CFDs).
Market Exposure |
|
31.10
2015
% |
30.11
2015
% |
31.12
2015
% |
31.01
2016 % |
29.02
2016
% |
31.03
2016
% |
30.04
2016
% |
31.05
2016
% |
30.06
2016
% |
31.07
2016
% |
31.08
2016
% |
30.09
2016
% |
Long |
99.6 |
100.3 |
99.5 |
102.5 |
102.2 |
108.1 |
109.2 |
108.8 |
110.5 |
103.4 |
105.7 |
104.0 |
Short |
1.2 |
1.7 |
1.7 |
1.4 |
1.1 |
1.2 |
1.3 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Gross |
100.8 |
102.0 |
101.2 |
103.9 |
103.3 |
109.3 |
110.5 |
108.8 |
110.5 |
103.4 |
105.7 |
104.0 |
Net |
98.4 |
98.6 |
97.8 |
101.1 |
101.1 |
106.9 |
107.9 |
108.8 |
110.5 |
103.4 |
105.7 |
104.0 |
Ten Largest Equity Investments |
Company |
Country of
Risk |
% of
gross assets |
|
|
|
MCB Bank |
Pakistan |
4.8 |
Banco Macro |
Argentina |
4.0 |
KazMunaiGas Exploration
Production |
Kazakhstan |
3.7 |
Halyk Savings Bank |
Kazakhstan |
3.4 |
Grupo Financiero
Galicia |
Argentina |
3.4 |
Square
Pharmaceuticals |
Bangladesh |
3.3 |
BRD Groupe Societe
Generale |
Romania |
3.2 |
MHP |
Ukraine |
3.1 |
Electrica |
Romania |
3.1 |
S.N.G.N.
Romgaz |
Romania |
2.9 |
Commenting on the markets, Sam
Vecht, representing the Investment Manager noted:
In September, the Company’s NAV rose by 2.0% but underperformed the
MSCI Frontier benchmark by 0.6% (on a US Dollar basis with net
income reinvested). On a 12 month basis, the Company outperformed
the benchmark by 8.3%, returning 9.2% against the benchmark’s 0.9%.
The MSCI Emerging Markets Index rose by 1.3% and 16.8%, over the
same periods.
September performance was broadly spread across countries,
sectors, and names. Argentine utility, Pampa Energia, remained as
one of the Company’s most fruitful investments, surging almost 30%
over the period as they announced plans to double production
capital expenditure to meet rising power demand and reduce reliance
on imports. This follows strong performance on the back of their
controlling stake acquisition of Petrobras Argentina in July, and
was further supported by the Supreme Court’s ruling in favour of
allowing electricity providers to raise prices, a key victory for
President Macri in his fight to cut back on fiscally expensive
subsidies. Pakistani tractor manufacturer, Millat, also benefitted
the Company gaining 22% in September amid strong year-over-year
volumes and the potential to grow exports. Kenyan financial, Equity
Group, rebounded almost 12% over the month as the bank is likely to
be a longer-term beneficiary of the last month’s legislation
capping interest rates as the industry begins to consolidate.
On the other hand, off-benchmark positions in Sri Lanka such as Distilleries Company of Sri
Lanka and Hatton National
Bank, marginally weighed on performance due in part to the
Central Bank of Sri Lanka’s surprise announcement that it would
leave interest rates unchanged at 8.5%, despite signs of slowing
growth. Romanian positions also detracted as the market experienced
a slight pull back in September. Broad positioning remain
relatively unchanged at month end, however, we had exited our
position in Saudi Basic Industries (SABIC) taking profits following
strong performance. We initiated a position in Vietnamese IT &
Telecommunications name, FPT, on the back of strong expected growth
from their software outsourcing business.
20 October 2016
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.