THIS ANNOUNCEMENT IS A CORRECTION: The Ten Largest Holdings as
at 30 September
2021 in the announcement released on 18
October 2021 were incorrectly stated
and have now been updated. All other information remains
unchanged.
The information contained in this release was correct as at
30 September 2021.
Information on the Company’s up to date net asset values can be
found on the London Stock Exchange Website at
https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html.
BLACKROCK FRONTIERS INVESTMENT TRUST
PLC (LEI: 5493003K5E043LHLO706)
All information is at 30 September
2021 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 |
-1.6 |
1.7 |
36.9 |
0.7 |
16.9 |
80.0 |
Net asset value |
2.1 |
7.4 |
46.7 |
16.5 |
31.7 |
106.8 |
Benchmark (NR)** |
0.9 |
6.3 |
22.1 |
3.9 |
32.8 |
67.5 |
MSCI Frontiers Index
(NR) |
3.3 |
5.9 |
26.8 |
31.6 |
51.8 |
92.8 |
MSCI Emerging Markets
Index (NR) |
-2.0 |
-5.8 |
13.3 |
23.8 |
49.8 |
69.0 |
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
Share price |
-3.6 |
-0.8 |
42.8 |
4.2 |
21.4 |
56.3 |
Net asset value |
0.0 |
4.8 |
53.0 |
20.5 |
36.8 |
79.3 |
Benchmark (NR)** |
-1.1 |
3.7 |
27.3 |
7.4 |
37.9 |
46.0 |
MSCI Frontiers Index
(NR) |
1.2 |
3.4 |
32.2 |
36.1 |
57.6 |
66.7 |
MSCI Emerging Markets
Index (NR) |
-4.0 |
-8.1 |
18.2 |
28.0 |
55.5 |
46.1 |
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: |
181.23c |
Net asset value - cum
income: |
186.32c |
Sterling: |
|
Net asset value -
capital only: |
134.40p |
Net asset value - cum
income: |
138.17p |
Share price: |
122.50p |
Total assets (including
income): |
£261.6m |
Discount to cum-income
NAV: |
11.3% |
Gearing: |
nil |
Gearing range (as a %
of gross assets): |
0-20% |
Net yield*: |
3.4% |
Ordinary shares in
issue**: |
189,325,748 |
Ongoing
charges***: |
1.4% |
Ongoing charges plus
taxation and performance fee: |
1.4% |
*The Company’s yield based on dividends announced in the last 12
months as at the date of the release of this announcement is 3.4%
and includes the 2020 final dividend of 4.25
cents per share declared on 11
December 2020 which paid on 12
February 2021. Also included is the 2021 interim dividend of
2.75 cents per share, announced on
01 June 2021 and paid to shareholders
on 25 June 2021.
** Excluding 52,497,053 ordinary shares held in treasury.
***Calculated as a percentage of average net assets and using
expenses, excluding Performance fees and interest costs for the
year ended 30 September 2020.
Sector
Analysis |
Gross
market value as a % of net assets |
|
Country
Analysis |
Gross
market value as a % of net assets |
|
|
|
|
|
|
|
Financials |
36.3 |
|
Saudi Arabia |
18.2 |
|
Consumer
Discretionary |
15.5 |
|
Indonesia |
11.1 |
|
Industrials |
13.3 |
|
Vietnam |
9.5 |
|
Materials |
10.1 |
|
Thailand |
7.6 |
|
Energy |
9.8 |
|
Greece |
7.6 |
|
Consumer Staples |
6.8 |
|
Kazakhstan |
6.5 |
|
Information
Technology |
5.3 |
|
Hungary |
5.8 |
|
Real Estate |
4.3 |
|
Malaysia |
5.6 |
|
Health Care |
4.0 |
|
Egypt |
5.6 |
|
Communication
Services |
1.4 |
|
United Arab
Emirates |
5.1 |
|
Utilities |
1.3 |
|
Poland |
5.0 |
|
|
----- |
|
Philippines |
4.3 |
|
|
108.1 |
|
Chile |
2.8 |
|
|
----- |
|
Romania |
2.3 |
|
Short positions |
-0.4 |
|
Kenya |
2.1 |
|
|
===== |
|
Peru |
2.0 |
|
|
|
|
United States |
1.9 |
|
|
|
|
Panama |
1.5 |
|
|
|
|
Pakistan |
1.4 |
|
|
|
|
Ukraine |
1.2 |
|
|
|
|
Qatar |
0.6 |
|
|
|
|
Nigeria |
0.4 |
|
|
|
|
|
----- |
|
|
|
|
Total |
108.1 |
|
|
|
|
|
----- |
|
|
|
|
Short positions |
-0.4 |
|
|
|
|
|
===== |
|
*reflects gross market exposure from contracts for difference
(CFDs).
Market Exposure
|
31.10
2020
% |
30.11
2020
% |
31.12
2020
% |
31.01
2021
% |
28.02
2021
% |
31.03
2021
% |
30.04
2021
% |
31.05
2021
% |
30.06
2021
% |
31.07
2021
% |
31.08
2021
% |
30.09
2021
% |
Long |
106.9 |
107.3 |
107.9 |
110.5 |
114.0 |
105.7 |
108.5 |
105.3 |
106.8 |
107.1 |
104.2 |
108.1 |
Short |
0.0 |
0.0 |
1.1 |
1.1 |
4.5 |
3.4 |
2.5 |
2.3 |
4.6 |
2.3 |
0.6 |
0.4 |
Gross |
106.9 |
107.3 |
109.0 |
111.6 |
118.5 |
109.1 |
111.0 |
107.6 |
111.4 |
109.4 |
104.8 |
108.5 |
Net |
106.9 |
107.3 |
106.8 |
109.4 |
109.5 |
102.3 |
106.0 |
103.0 |
102.2 |
104.8 |
103.6 |
107.7 |
Ten Largest Investments
Company |
Country of Risk |
Gross market value
as a % of net assets |
|
|
|
National Commercial Bank |
Saudi Arabia |
4.8 |
Bank Rakyat |
Indonesia |
3.8 |
Mobile World |
Vietnam |
3.8 |
FPT |
Vietnam |
3.5 |
Kaspi |
Kazakhstan |
3.4 |
Saudi British Bank |
Saudi Arabia |
3.2 |
Emaar Properties |
United Arab Emirates |
3.1 |
OTP Bank |
Hungary |
3.0 |
MOL Group |
Hungary |
2.8 |
CP All |
Thailand |
2.7 |
Commenting on the markets, Sam
Vecht and Emily Fletcher,
representing the Investment Manager noted:
The Company’s NAV returned 0.0% versus its benchmark the MSCI
Emerging ex Selected Countries + Frontier Markets + Saudi Arabia
Index (“Benchmark Index”), which returned -1.1% in September. For
reference, the MSCI Emerging Markets Index ended the month -4.0%
and the MSCI Frontier Markets Index +1.2% over the same period.
Over the twelve months ended 30 September
2021, the Company returned +53.0%, while its Benchmark Index
returned +27.3%. For reference, the MSCI Emerging Markets Index
ended the period +18.2% while MSCI Frontier Markets was up 32.2%
over this period (all performance figures are on a US Dollar basis
with net income reinvested).
September saw our benchmark extend its YTD outperformance over
Emerging Markets. Given the delay in vaccination rollout,
many frontier and emerging countries are now just starting to see
the acceleration in economic activity which more developed
countries have been enjoying through 2021. Continued high commodity
prices are driving exports and helping to support trade balances in
countries such as Chile,
Saudi Arabia and Indonesia. Emerging markets have been hurt by
a substantial negative contribution from China (-17% YTD), where increased government
regulations in the internet, education and financial sectors
coupled with a slowdown in economic activity have weighed on
sentiment.
While more muted than August, many countries in the universe
finished September well, led by Indonesia (+3.4%), Colombia (+3.2%) and Saudi Arabia (+2.8%) which benefited from
rising oil prices. Turkey
(-12.4%), Argentina (-12.1%),
Egypt (-7.7%) and Thailand (-7.1%) were the worst
performers.
In terms of contributors to performance over the month, the
largest driver was our stock selection in Vietnam, especially electronics retailer
Mobile World (+15.2%). We participated in the IPO of Arabian
Internet and Communication Services, the technology solutions arm
of Saudi Telecom which was additive with the stock up strongly
after the IPO (+29.9%). Kazakh uranium producer Kazatomprom
(+25.7%) was an additional contributor. An underweight position in
Thailand also helped returns.
Primary detractors from performance in August were our holdings
in Greece, particular in
financials National Bank of Greece
(-7.3%) and Eurobank (-1.5%). While our holdings in
Greece hurt returns this month, we
remain confident in our holdings there. Our position in
Ukraine via metals player Ferrexpo
(-16.0%) hurt returns as the stock continued to come under pressure
from a normalization in iron ore prices. Elsewhere our holdings in
Chile through pulp and paper
company CMPC (-12.4%) and retailer Falabella (-11.0%) were
additional detractors amid volatility leading into the November
presidential election.
We made a few changes to the portfolio in September. We
initiated a position in Arabian Internet and Communication Services
as part of its IPO. We see substantial upside for the stock to
re-rate compared to peers trading on higher multiples. We upped our
holdings in Indonesia given the
underperformance of the region and our expectations of a COVID
reopening rally as we have seen elsewhere. We added financial
Rakyat which is being weighed down by concerns over its rights
issue and asset quality. In our view their return on assets is high
and we believe they can generate sufficient profitability to grow
out of these problems and return to generating a higher ROE.
Elsewhere in Asia we moved around
our Thai holdings, swapping out Energy company PTT which had
rallied with oil and into hospital operator BDMS which we think
could benefit from the re-opening of tourism to the country. We
trimmed a number of our holdings on strength including Saudi mining
company Maaden, Kazakh Uranium producer Nak Kazatromprom and port
management company International Container Terminal based in
the Philippines. We also sold down
Turkish airline Pegasus on macro policy concerns.
Overall, for countries that have stable macro environments and
have made timely progress in vaccination rollouts, we believe the
global macro recovery provides a favourable backdrop to recover
lost economic productivity. Valuations in a lot of the frontier end
emerging markets remain attractive relative to their own history
and also relative to the more evolved markets. We believe our
opportunity set is a compelling universe to generate alpha.
Sources:
1BlackRock as at 30 September
2021
2MSCI as at 30 September
2021
22 October 2021
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.