BLACKROCK FRONTIERS INVESTMENT TRUST
PLC (LEI: 5493003K5E043LHLO706)
All information is at 31 July
2018 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 |
5.9 |
-5.3 |
9.4 |
50.7 |
63.3 |
96.3 |
Net asset value |
3.4 |
-4.9 |
5.8 |
46.9 |
59.4 |
93.0 |
Benchmark (NR)** |
4.8 |
-0.6 |
11.5 |
45.5 |
52.9 |
64.3 |
MSCI Frontiers Index
(NR) |
4.3 |
-4.7 |
3.8 |
35.4 |
42.3 |
53.9 |
MSCI Emerging Markets
Index (NR) |
2.9 |
-0.8 |
4.9 |
53.8 |
49.3 |
40.2 |
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
Share price |
5.2 |
-9.8 |
8.9 |
26.8 |
41.5 |
65.8 |
Net asset value |
2.7 |
-9.5 |
5.3 |
23.6 |
38.2 |
62.8 |
Benchmark (NR)** |
4.1 |
-5.4 |
11.0 |
22.3 |
32.3 |
39.3 |
MSCI Frontiers Index
(NR) |
3.7 |
-9.2 |
3.2 |
13.8 |
23.1 |
29.5 |
MSCI Emerging Markets
Index (NR) |
2.2 |
-5.5 |
4.4 |
29.3 |
29.2 |
17.9 |
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
Ordinary Shares |
|
US Dollar |
|
Net asset value -
capital only: |
188.57c |
Net asset value - cum
income: |
194.42c |
Sterling: |
|
Net asset value -
capital only: |
143.74p |
Net asset value - cum
income: |
148.21p |
Share price: |
153.50p |
Total assets (including
income): |
£294.4m |
Premium to cum-income
NAV: |
3.6% |
Gearing: |
nil |
Gearing range (as a %
of gross assets): |
0-20% |
Net yield*: |
3.4% |
Ordinary shares in
issue: |
198,641,108 |
Ongoing charges**: |
1.4% |
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 3.4%
and includes the 2017 final dividend of 4.20
cents per share declared on 4
December 2017 and paid to shareholders on 9 February 2018 and the 2018 interim dividend of
3.00 cents per share announced on
17 May 2018 and paid to shareholders
on 29 June 2018.
**Calculated as a percentage of average net assets and using
expenses, excluding performance fees and interest costs for the
year ended 30 September 2017.
Sector
Analysis |
Gross
market value as a % of net assets |
|
Country
Analysis |
Gross
market
value as a % of
net assets |
|
|
|
|
|
Financials |
35.6 |
|
Argentina |
11.3 |
Real Estate |
14.7 |
|
Indonesia |
8.2 |
Consumer
Discretionary |
13.0 |
|
Vietnam |
8.1 |
Materials |
11.0 |
|
Egypt |
7.2 |
Industrials |
9.6 |
|
Thailand |
6.9 |
Consumer Staples |
8.2 |
|
Kuwait |
6.8 |
Health Care |
7.7 |
|
Qatar |
6.7 |
Energy |
7.4 |
|
Saudi Arabia |
6.5 |
Telecommunication
Services |
5.5 |
|
Nigeria |
6.0 |
Information
Technology |
1.2 |
|
Romania |
5.6 |
|
----- |
|
Greece |
4.7 |
Total |
113.9 |
|
Poland |
4.7 |
|
----- |
|
United Arab
Emirates |
4.6 |
Short positions |
-5.1 |
|
Ukraine |
3.6 |
|
===== |
|
Kazakhstan |
3.3 |
|
|
|
Malaysia |
3.3 |
|
|
|
Hungary |
2.9 |
|
|
|
Kenya |
2.3 |
|
|
|
Philippines |
2.1 |
|
|
|
Turkey |
1.9 |
|
|
|
PAN-Africa |
1.8 |
|
|
|
Tanzania |
1.2 |
|
|
|
Estonia |
1.0 |
|
|
|
PAN-Asian |
1.0 |
|
|
|
Morocco |
0.9 |
|
|
|
Bangladesh |
0.7 |
|
|
|
Sri Lanka |
0.6 |
|
|
|
|
----- |
|
|
|
Total |
113.9 |
|
|
|
|
----- |
|
|
|
Short positions |
-5.1 |
|
|
|
|
===== |
*reflects gross market exposure from contracts for difference
(CFDs).
Market Exposure
|
31.08
2017
% |
30.09
2017
% |
31.10
2017
% |
30.11
2017
% |
31.12
2017
% |
31.01
2018
% |
28.02
2018
% |
31.03
2018
% |
30.04
2018
% |
31.05
2018
% |
30.06
2018
% |
31.07
2018
% |
Long |
107.9 |
107.7 |
113.4 |
111.0 |
113.3 |
110.2 |
102.1 |
97.0 |
113.2 |
119.5 |
116.2 |
113.9 |
Short |
0.0 |
0.0 |
2.5 |
3.8 |
3.8 |
3.0 |
3.0 |
2.9 |
3.8 |
4.2 |
4.7 |
5.1 |
Gross |
107.9 |
107.7 |
115.9 |
114.8 |
117.1 |
113.2 |
105.1 |
99.9 |
117.0 |
123.7 |
120.9 |
119.0 |
Net |
107.9 |
107.7 |
110.9 |
107.2 |
109.5 |
107.2 |
99.1 |
94.1 |
109.4 |
115.3 |
111.5 |
108.8 |
Ten Largest Investments
Company |
Country of Risk |
Gross market value
as a
% of net assets |
|
|
|
Astra International |
Indonesia |
4.3 |
Banco Macro |
Argentina |
3.7 |
Industries of Qatar |
Qatar |
3.6 |
MHP |
Ukraine |
3.3 |
Halyk Savings Bank |
Kazakhstan |
3.1 |
YPF |
Argentina |
3.1 |
Ooredoo |
Qatar |
3.1 |
Emaar Properties |
United Arab Emirates |
3.1 |
Land & Houses Public Company
Limited |
Thailand |
3.0 |
Chemical Works of Gedeon
Richter |
Hungary |
2.9 |
Commenting on the markets, Sam
Vecht and Emily Fletcher,
representing the Investment Manager noted:
In July the Company’s NAV rose by 2.7%* versus its benchmark, the
MSCI New Frontier benchmark, which rose by 4.1%**. For reference,
its previous benchmark, the MSCI Frontiers Index, rose by 3.7%**,
and the MSCI Emerging Markets Index rose by 2.2%**, over the same
period (all performance figures are on a US Dollar basis with net
income reinvested).
Emerging and Frontier Market equities rebounded in July after a
tough second quarter which saw many Emerging and Frontier Markets
come under pressure from tightening global liquidity as a result of
rising US interest rates and a strong dollar, coupled with fears
about increased disruption to global trade. There was
some reprieve from these trends in July which benefited the asset
class and saw a sharp rebound in some markets that had sold off
sharply, such as Argentina.
Our overweight to Argentina was
the largest contributor to performance in July as the market
rebounded up +14% over the month, led by a 5.5% appreciation in the
Argentine Peso. Our holdings in Energy company YPF (+22%), and
financials Banco Macro (+16%) and Grupo
Supervielle (+27%) all contributed strongly to returns. Our
stock selection in Indonesia was
additive to returns, driven by our holding in coal miner Indo
Tambangraya Megah (+26%). Our underweight to Turkey was another strong contributor as the
market continued to sell off in July post a disappointing election
outcome and policy stasis.
Detracting from performance in July were our holdings in
Nigeria, with all three of our
holdings, financials Zenith Bank (-8%) and United Bank (-9%) and
beverage company Nigerian breweries (-8%), detracting from
returns. The market sold off as the latest economic
indicators suggested the pace of economic expansion may slow.
Egypt also detracted driven by our
holdings in tobacco company Eastern Tobacco (-9%) and healthcare
company Integrated Diagnostics (-8%). Meat producer MHP (-6%)
in Ukraine was an additional
detractor.
The portfolio’s largest country weights are in Argentina where we expect a continued recovery
in the currency and market sentiment, Nigeria which has benefited from a pickup in
economic activity and Egypt where
the fiscal situation has improved markedly. We remain
cautious on Malaysia where
valuations in aggregate look expensive, Saudi Arabia where activity looks weak and
Turkey given currency weakness and
poor management of monetary policy. In aggregate the wide
subset of countries that make up our investible universe continue
to exhibit strong GDP growth, have 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.
Sources:
*BlackRock as at 31 July 2018
**MSCI as at 31 July 2018
16 August 2018
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 Kazakhstan