BLACKROCK FRONTIERS INVESTMENT TRUST
PLC
All information is at 31 December
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 |
-1.3 |
0.8 |
31.4 |
24.6 |
110.4 |
55.2 |
Net asset value |
2.6 |
3.0 |
28.6 |
31.1 |
101.3 |
61.7 |
MSCI Frontiers Index
(NR) |
3.9 |
5.6 |
22.5 |
25.8 |
61.7 |
34.1 |
MSCI Emerging Markets
Index (NR) |
1.3 |
0.7 |
32.6 |
24.0 |
34.0 |
13.6 |
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
Share price |
-2.4 |
-4.1 |
10.2 |
-6.9 |
67.7 |
23.4 |
Net asset value |
1.5 |
-2.0 |
7.8 |
-2.0 |
60.3 |
28.4 |
MSCI Frontiers Index
(NR) |
2.7 |
0.5 |
2.7 |
-6.2 |
28.6 |
6.3 |
MSCI Emerging Markets
Index (NR) |
0.2 |
-4.2 |
11.2 |
-7.5 |
6.5 |
-9.9 |
Sources: BlackRock and Standard & Poor’s Micropal
* 17 December 2010.
At
month end
Ordinary Shares |
|
US Dollar |
|
Net asset value -
capital only: |
159.99c |
Net asset value - cum
income: |
164.74c |
Sterling: |
|
Net asset value -
capital only: |
129.48p |
Net asset value - cum
income: |
133.32p |
Share price: |
130.00p |
Total assets (including
income): |
£219.1m |
Discount to cum-income
NAV: |
2.5% |
Gearing: |
nil |
Gearing range (as a %
of gross assets): |
0-20% |
Net yield*: |
4.1% |
Ordinary shares in
issue: |
164,333,108 |
Ongoing charges**: |
1.4% |
Ongoing charges plus
taxation and performance fee: |
2.4% |
*The Company’s yield based on dividends announced in the last 12
months as at the date of the release of this announcement is 4.1%
and includes the 2016 final dividend of 4.00
cents per share declared on 22
November 2016, payable to shareholders on 17 February 2017 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 2016.
The following relates specifically to the ordinary share
portfolio.
Sector
Analysis |
Gross
assets(%)* |
|
Country
Analysis |
Gross
assets(%)* |
|
|
|
|
|
Financials |
37.9 |
|
Argentina |
15.0 |
Consumer Staples |
15.4 |
|
Romania |
10.9 |
Telecommunication
Services |
15.1 |
|
Bangladesh |
9.0 |
Health Care |
7.8 |
|
Pakistan |
8.9 |
Energy |
7.5 |
|
Kazakhstan |
8.1 |
Materials |
6.2 |
|
Vietnam |
7.6 |
Information
Technology |
5.9 |
|
Sri Lanka |
6.7 |
Utilities |
5.9 |
|
Kuwait |
6.6 |
Industrials |
3.3 |
|
Morocco |
6.2 |
Real Estate |
2.0 |
|
Ukraine |
6.0 |
Consumer
Discretionary |
1.4 |
|
Kenya |
5.5 |
|
----- |
|
Egypt |
3.7 |
Total |
108.4 |
|
Nigeria |
3.4 |
|
----- |
|
Colombia |
2.1 |
Short positions |
0.0 |
|
Estonia |
2.0 |
|
===== |
|
Caribbean |
1.9 |
|
|
|
Slovenia |
1.8 |
|
|
|
Turkey |
1.8 |
|
|
|
Philippines |
1.2 |
|
|
|
|
----- |
|
|
|
Total |
108.4 |
|
|
|
|
----- |
|
|
|
Short positions |
0.0 |
|
|
|
|
===== |
*reflects gross market exposure from contracts for difference
(CFDs).
Market Exposure
|
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
% |
31.10
2016
% |
30.11
2016
% |
31.12
2016
% |
Long |
102.5 |
102.2 |
108.1 |
109.2 |
108.8 |
110.5 |
103.4 |
105.7 |
104.0 |
106.4 |
102.3 |
108.4 |
Short |
1.4 |
1.1 |
1.2 |
1.3 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Gross |
103.9 |
103.3 |
109.3 |
110.5 |
108.8 |
110.5 |
103.4 |
105.7 |
104.0 |
106.4 |
102.3 |
108.4 |
Net |
101.1 |
101.1 |
106.9 |
107.9 |
108.8 |
110.5 |
103.4 |
105.7 |
104.0 |
106.4 |
102.3 |
108.4 |
Ten Largest Equity Investments
Company |
Country of Risk |
% of gross
assets |
|
|
|
MCB Bank |
Pakistan |
5.2 |
Mobile Telecommunications |
Kuwait |
4.5 |
Grupo Financiero Galicia |
Argentina |
4.1 |
Maroc Telecom |
Morocco |
3.8 |
Banco Macro |
Argentina |
3.7 |
Square Pharmaceuticals |
Bangladesh |
3.5 |
BRD Groupe Societe Generale |
Romania |
3.3 |
Halyk Savings Bank |
Kazakhstan |
3.2 |
Pampa Energia |
Argentina |
3.2 |
Luxoft |
Ukraine |
3.0 |
Commenting on the markets, Sam
Vecht and Emily Fletcher,
representing the Investment Manager noted:
In December, the Company’s NAV rose by 1.5% lagging the MSCI
Frontier benchmark by -1.2%. The Company ended the year up 7.8%
outperforming its benchmark by 5.1%. The MSCI Emerging Markets
Index returned 0.2% and 11.2% over the same periods (all
performance figures are on a US Dollar basis with net income
reinvested).
Performance drivers from the previous month carried over into
December, with contribution being spread out across countries,
sectors, and names. Off-benchmark Egyptian positioning was among
the larger contributors. Cleopatra Hospital performed well gaining
36% during the month amid increasing confidence over their ability
to pass-through pricing impacts from November’s devaluation of the
Egyptian Pound. Similarly, gold miner, Centamin, rose by 19% as
currency depreciation lowered cash costs. An underweight to
Argentina benefited the fund as
the market struggled amid weak economic activity, the unexpected
resignation of Finance Minister Prat-Gay, and the subsequent split
of the Finance Ministry into two separate arms. We used this
weakness to add to our positions in the country. Our decision to
not hold Vietnamese consumer staple, Vietnam Dairy, was the largest
individual contributor to relative performance for the period. The
stock fell by 9% due to a combination of uncertainty surrounding
how the country’s export-focused economy will be impacted by trade
shocks due to President-Elect Trump’s potentially protectionist
policies, as well as a missed target for the firm’s secondary
offering amid highly restrictive investment caps.
On the other hand our short oil positioning, specifically
through longstanding underweights to the Middle East region detracted on a relative
basis, as announcements for further production cuts by both OPEC
and non-OPEC members caused oil prices to rally up to $55 per barrel. Specifically, the decision to
hold a substantial underweight in Kuwait and Oman, were among the largest detractors.
Similarly, although our Pakistani positions MCB Bank and DG Khan
Cement were among the month’s strongest performers, gaining 10% and
17% respectively, our underweight and more specifically, our
decision to limit exposure to the country’s energy names hurt the
Trust’s performance in aggregate. Broad selection within
Morocco also weighed on returns,
while a position in Caribbean
wholesale market operator, Pricesmart, was the largest individual
detractor.
Despite the year-end volatility stemming from US elections,
Frontier Markets continue to exhibit strong GDP growth and low
government debt levels, and represent an opportunity to invest in
companies with strong cash flow and high dividend yields, on some
of the lowest valuations in the world.
19 January 2017
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.