BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
30 April
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
|
-3.1
|
2.6
|
14.5
|
35.7
|
32.6
|
143.0
|
Net
asset value
|
-2.2
|
4.6
|
14.2
|
43.9
|
47.7
|
169.2
|
Benchmark
(NR)**
|
-0.8
|
3.5
|
4.7
|
20.5
|
10.5
|
87.5
|
MSCI
Frontiers Index (NR)
|
-2.1
|
2.8
|
10.4
|
3.2
|
17.0
|
75.5
|
MSCI
Emerging Markets Index (NR)
|
1.3
|
9.7
|
10.3
|
-7.2
|
14.3
|
62.1
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
-4.0
|
0.9
|
14.1
|
22.8
|
27.5
|
96.1
|
Net
asset value
|
-3.1
|
2.9
|
13.7
|
30.2
|
42.0
|
116.9
|
Benchmark
(NR)**
|
-1.7
|
1.7
|
4.3
|
8.9
|
6.1
|
51.7
|
MSCI
Frontiers Index (NR)
|
-3.0
|
1.1
|
10.0
|
-6.7
|
12.4
|
40.9
|
MSCI
Emerging Markets Index (NR)
|
0.4
|
7.8
|
9.9
|
-16.1
|
9.8
|
30.1
|
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:
|
199.32c
|
Net
asset value - cum income:
|
203.35c
|
Sterling:
|
|
Net
asset value - capital only:
|
159.18p
|
Net
asset value - cum income:
|
162.40p
|
Share
price:
|
148.00p
|
Total
assets (including income):
|
£307.4m
|
Discount to
cum-income NAV:
|
8.9%
|
Gearing:
|
Nil
|
Gearing range (as
a % of gross assets):
|
0-20%
|
Net
yield*:
|
4.3%
|
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 4.3% and
includes the 2023 interim dividend of 3.10
cents per share, declared on 6 June
2023, and paid to shareholders on 7
July 2023 and the 2023 final dividend of 4.90 cents per share, declared on 30 November 2023, and paid to shareholders on
14 February 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
|
45.7
|
|
Saudi
Arabia
|
15.9
|
Industrials
|
14.5
|
|
Indonesia
|
14.3
|
Energy
|
11.2
|
|
Philippines
|
10.0
|
Materials
|
10.7
|
|
Kazakhstan
|
8.1
|
Consumer
Staples
|
8.6
|
|
Hungary
|
7.3
|
Real
Estate
|
8.2
|
|
United Arab
Emirates
|
7.1
|
Consumer
Discretionary
|
8.1
|
|
Greece
|
5.9
|
Communication
Services
|
7.9
|
|
Poland
|
5.7
|
Information
Technology
|
5.1
|
|
Chile
|
4.9
|
Health
Care
|
0.8
|
|
Thailand
|
4.7
|
|
-----
|
|
Qatar
|
4.1
|
|
120.8
|
|
Czech
Republic
|
4.0
|
|
-----
|
|
Argentina
|
3.1
|
Short
positions
|
-2.3
|
|
Kenya
|
2.9
|
|
=====
|
|
Vietnam
Multi-International
|
2.9
2.2
|
|
|
|
Georgia
|
2.2
|
|
|
|
Malaysia
|
2.2
|
|
|
|
Pakistan
|
2.2
|
|
|
|
Turkey
Colombia
Singapore
Romania
Cambodia
Nigeria
Bangladesh
Egypt
Total
|
2.1
2.1
2.1
1.5
1.1
0.8
0.8
0.6
-----
120.8
|
|
|
|
|
----
|
|
|
|
Short
positions
|
-2.3
|
|
|
|
|
=====
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
31.05
2023
%
|
30.06
2023
%
|
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
%
|
Long
|
112.9
|
116.9
|
113.0
|
113.3
|
114.9
|
118.8
|
113.1
|
116.6
|
119.5
|
121.4
|
120.4
|
120.8
|
Short
|
3.6
|
4.0
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
4.7
|
3.6
|
3.5
|
2.7
|
2.3
|
Gross
|
116.5
|
120.9
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
121.3
|
123.1
|
124.9
|
123.1
|
123.1
|
Net
|
109.3
|
112.9
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
111.9
|
115.9
|
117.9
|
117.7
|
118.5
|
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
|
4.6
|
Kaspi.Kz
JCS
|
Kazakhstan
|
3.6
|
Emaar
Properties
|
United Arab
Emirates
|
3.5
|
FPT
|
Vietnam
|
2.9
|
Wizz
Air Holdings
|
Hungary
|
2.8
|
Etihad
Etisalat
|
Saudi
Arabia
|
2.8
|
Vista
Oil & Gas
|
Argentina
|
2.8
|
Jeronimo
Martins
|
Poland
|
2.7
|
Saudi
Basic Industries Corporation
|
Saudi
Arabia
|
2.7
|
Commenting
on the markets, Sam Vecht,
Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The
Company’s NAV fell by 3.1 % in April, underperforming its benchmark
the MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (“Benchmark Index”) which returned -1.7%. For
reference, the MSCI Emerging Markets Index was up by 0.4% while the
MSCI Frontier Markets Index was down by 3.0% over the same period.
All performance figures are on a US Dollar basis with net income
reinvested.
Emerging markets
(+0.4%) significantly outperformed developed markets in April,
which ended the month down -3.7%. EMEA finished the month flat
(+0.2%). Latin America (-3.5%)
lagged all other regions on Fed re-pricing.
While
stock selection did well in April, our country allocation
detracted. It was a tough month for Indonesia (-8.5%) as banking sector data
released during the month showed some signs of asset quality
deterioration. In addition, data released for Q1 showed that there
had been somewhat of a hiatus in economic activity over the
elections which took place in February. New President Prabowo
Subianto with vice Presidential running mate Gibran Rakabuming
swept the election on promises of continuing previous President
Jokowi’s policies. Given Gibran is Jokowi’s son, we believe the
expectations for policy continuity are fair. We were also hurt by
overweight positions in both Kenya
(-8.1%) and Philippines (-5.8%)
which fell on as the US continued to print higher than expected CPI
data pushing out further expectations for a cut in
rates.
Fears
around this peaked mid-April and we have seen a substantial
reversal of these concerns since then and continue to have
confidence in our current positioning.
At
the other extreme, Turkey
(+14.1%), a market where we currently have little exposure,
outperformed as markets responded the comments indicating continued
monetary orthodoxy. Foreign inflows were c$500m in the month, some of the strongest levels
in the past several years. Pakistan (+7.5%) continued to benefit from
policy changes they have enacted in order to reach an agreement
with the IMF which was finalised at the end of
March.
Nagacorp
(+20.5%), the Cambodian integrated gambling resort operator, was
the best performing stock over the month as company reported
continuing strong results and we continued to see increased
incidence of Chinese travellers enjoying foreign travel. Elsewhere
in Asia, Vietnamese IT services
provider FPT Corp (+5.0%) also did well. The stock rose following
news of a co-investment with NVIDIA in an AI factory in
Vietnam. Argentinian energy
company Vista Energy (+4.3%) rose after reporting strong results
showing further significant production growth. The Polish
supermarket chain Jeronimo Martins
(4.1%) was another contributor, reversing losses from March, after
delivering a beat on Q1 net income numbers.
On
the flipside, IT services company EPAM (-14.8%) detracted amid
weaker full year guidance for revenues. Philippine's based property
developer Ayala Land (-13.3%) was
another detractor on concerns that higher rates globally would
curtail Philippine property demand.
Actually post
month end we saw the company report a presale result up 20% year on
year and the highest level since Q4 19, beating
expectations.
Indonesian
retailer Mitra Adiperkasa (-15.6%) fell as the company reported
weak results, particularly in the Food and Beverage segment where
they have been hurt by the domestic boycott of Starbucks which has
followed the conflict in the Middle
East.
Over
the course of April, we made a few changes to the portfolio. We
initiated a holding in tech conglomerate Sea Ltd as we have a
positive view on the company's ability to deliver earnings
upgrades.
We
took advantage of recent weakness and added to our holding in
Indonesian property developer Ciputra another developer reporting
very strong demand and record pre-sales numbers. We also rotated
our financials exposure in Indonesia by exiting Bank Rakyat and buying
Bank Mandiri due to concerns that the future credit cost in the
microfinance book for Rakyat will be significantly higher than
historically as the structure of the book has changed. Elsewhere,
we locked in some profits by trimming our exposure to Colombian
bank Bancolombia.
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 frontier and smaller
emerging markets. With inflation falling across many countries
within our universe, rate cuts have started to materialise in some
areas of our universe. 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 versus
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 April 2024
2MSCI as at
30 April 2024
10 June 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.