BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
30 June
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
|
-2.0
|
-4.1
|
10.6
|
35.8
|
30.8
|
140.5
|
Net
asset value
|
2.4
|
-2.0
|
11.3
|
40.1
|
41.5
|
169.7
|
Benchmark
(NR)**
|
1.7
|
-2.6
|
5.0
|
16.9
|
4.8
|
84.2
|
MSCI
Frontiers Index (NR)
|
0.7
|
0.6
|
13.0
|
-0.9
|
12.3
|
80.4
|
MSCI
Emerging Markets Index (NR)
|
4.7
|
4.9
|
13.2
|
-6.5
|
17.3
|
67.8
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
-2.7
|
-4.0
|
10.0
|
24.4
|
30.0
|
95.9
|
Net
asset value
|
1.7
|
-1.9
|
10.7
|
28.3
|
40.6
|
119.4
|
Benchmark
(NR)**
|
1.0
|
-2.5
|
4.4
|
6.9
|
4.1
|
50.5
|
MSCI
Frontiers Index (NR)
|
0.0
|
0.6
|
12.3
|
-9.3
|
11.6
|
46.2
|
MSCI
Emerging Markets Index (NR)
|
3.9
|
5.0
|
12.5
|
-14.4
|
16.5
|
36.0
|
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:
|
197.80c
|
Net
asset value - cum income:
|
202.18c
|
Sterling:
|
|
Net
asset value - capital only:
|
156.48p
|
Net
asset value - cum income:
|
159.94p
|
Share
price:
|
143.75p
|
Total
assets (including income):
|
£302.8m
|
Discount to
cum-income NAV:
|
10.1%
|
Gearing:
|
Nil
|
Gearing range (as
a % of gross assets):
|
0-20%
|
Net
yield*:
|
4.6%
|
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 4.6%, 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 paid to shareholders
on 01 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
|
46.2
|
|
Saudi
Arabia
|
18.3
|
Industrials
|
12.7
|
|
Indonesia
|
13.1
|
Energy
|
11.3
|
|
United Arab
Emirates
|
8.7
|
Materials
|
10.2
|
|
Philippines
|
8.4
|
Real
Estate
|
9.6
|
|
Kazakhstan
|
8.4
|
Consumer
Staples
|
8.5
|
|
Hungary
|
7.3
|
Communication
Services
|
7.6
|
|
Greece
|
5.8
|
Consumer
Discretionary
|
6.3
|
|
Poland
|
5.7
|
Information
Technology
|
4.8
|
|
Qatar
|
5.1
|
Health
Care
|
1.0
|
|
Turkey
|
4.6
|
Utilities
|
0.2
|
|
Pakistan
|
3.9
|
|
-----
|
|
Thailand
|
3.8
|
|
118.4
|
|
Kenya
|
3.6
|
|
-----
|
|
Czech
Republic
|
3.0
|
Short
positions
|
-2.9
|
|
Vietnam
|
3.0
|
|
|
|
Malaysia
|
2.5
|
|
|
|
Singapore
|
2.4
|
|
|
|
Colombia
|
2.1
|
|
|
|
Multi-International
|
1.8
|
|
|
|
Chile
|
1.7
|
|
|
|
Georgia
|
1.4
|
|
|
|
Egypt
|
1.3
|
|
|
|
Cambodia
|
1.0
|
|
|
|
Romania
|
0.8
|
|
|
|
Bangladesh
|
0.7
|
|
|
|
|
-----
|
|
|
|
|
118.4
|
|
|
|
|
-----
|
|
|
|
Short
positions
|
-2.9
----
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
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
%
|
30.06
2024
%
|
Long
|
113.0
|
113.3
|
114.9
|
118.8
|
113.4
|
116.6
|
119.5
|
121.4
|
120.4
|
120.8
|
118.1
|
118.4
|
Short
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
4.7
|
3.6
|
3.5
|
2.7
|
2.3
|
2.4
|
2.9
|
Gross
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
121.3
|
123.1
|
124.9
|
123.1
|
123.1
|
120.5
|
121.3
|
Net
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
111.9
|
115.9
|
117.9
|
117.7
|
118.5
|
115.7
|
115.5
|
Ten Largest Investments
Company
|
Country of Risk
|
Gross market value as a % of net
assets
|
|
|
|
Bank
Central Asia
|
Indonesia
|
4.7
|
Saudi
National Bank
|
Saudi
Arabia
|
4.5
|
Emaar
Properties
|
United Arab
Emirates
|
4.4
|
Kaspi.Kz
JCS
|
Kazakhstan
|
4.0
|
FPT
|
Vietnam
|
3.0
|
Etihad
Etisalat
|
Saudi
Arabia
|
2.9
|
Wizz
Air Holdings
|
Hungary
|
2.8
|
Jeronimo
Martins
|
Poland
|
2.6
|
Ayala
Land
|
Philippines
|
2.6
|
OTP
Bank
|
Hungary
|
2.6
|
Commenting
on the markets, Sam Vecht,
Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The
Company’s NAV rose by 1.7% in June, outperforming its benchmark the
MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (“Benchmark Index”) which returned +1.0%. For
reference, the MSCI Emerging Markets Index was up by 3.9% while the
MSCI Frontier Markets Index was down by 0.02% over the same period.
All performance figures are on a US Dollar basis with net income
reinvested.
Emerging Markets
rose by 3.9% in June, outperforming Developed Markets (+2.0%).
Asia (+4.3%) was the best
performing region with strong flows into AI themes. Europe, the Middle
East and Africa (EEMA)
(+3.8%) underperformed against the broader index, with significant
performance dispersion across markets. Latin America continued to underperform in
June with a -6.1% month over month return.
Stock
selection was a significant contributor in June. The largest
Islamic bank in Indonesia Bank
Syariah (+18%) rebounded from sell-off as concerns on fiscal
trajectory of new government were mitigated with clarifications
from economic transition team. Middle-East exposure did well with LNG
transporter Qatar Gas Transport (+17.2), Saudi Arabian telecom
operator Etihad Etisalat (Mobily) (+13.7%) and Emirati property
developer Emaar Properties (+7.1%) main contributors. UAE property
market continued to see strong momentum in the real estate market.
Elsewhere, Vietnamese IT services provider FPT (+11.6%) was a
strong performer. Indonesian retailer Mitra Adiperkasa (+15.1%)
also helped performance, reversing some of the losses from
May.
On
the flipside, the Polish supermarket chain Jeronimo Martins (-12.5%) was the worst
performing stock over the month, reversing gains from the two
previous months. Philippines based
resort and casino operator Bloomberry Resorts (-10.4%) was another
detractor. The stock traded down despite meaningful earnings
improvement as the new property ramps up. Argentinian energy
company Vista Energy (-8.0%) also weighed on returns. The
Argentinian market fell more broadly on concerns around Milei's
ability to push through continued reforms.
We
made some changes to the portfolio in June. We initiated a position
in UAE property developer Aldar Properties as we are positive on
the company’s ability to deliver strong results on the back of
strong presales and improvement in its recurring income portfolio.
We have become incrementally negative on Argentina as Milei's ability to successfully
push through reforms comes into question and the monetary policies
implemented may not be sufficient to normalize the economic
backdrop. Therefore we exited both Vista Energy and oil company
YPF. We added to our position in Bloomberry Resorts to reflect
conviction on back of weakness in stock which seems unmerited
especially after our visit to their new property in
Manilla.
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 some frontier and
smaller emerging markets. With inflation falling across many
countries within our universe, rate cuts have started to
materialize in some countries. 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 relative 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
30 June 2024
2MSCI as at
30 June 2024
17 July 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.