BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
31 January
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
|
3.6
|
10.1
|
10.8
|
37.0
|
33.1
|
136.8
|
Net
asset value
|
-0.4
|
6.2
|
11.9
|
46.2
|
45.5
|
157.3
|
Benchmark
(NR)**
|
-0.8
|
4.2
|
-0.8
|
21.5
|
8.3
|
81.2
|
MSCI
Frontiers Index (NR)
|
1.1
|
6.2
|
4.3
|
6.8
|
17.3
|
70.7
|
MSCI
Emerging Markets Index (NR)
|
-4.5
|
2.0
|
-6.2
|
-14.7
|
8.5
|
47.8
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
3.5
|
15.6
|
14.6
|
27.1
|
28.9
|
94.4
|
Net
asset value
|
-0.5
|
11.5
|
15.8
|
35.6
|
40.9
|
110.8
|
Benchmark
(NR)**
|
-0.9
|
9.4
|
2.6
|
12.6
|
4.8
|
49.2
|
MSCI
Frontiers Index (NR)
|
1.0
|
11.5
|
7.9
|
-0.9
|
13.6
|
39.4
|
MSCI
Emerging Markets Index (NR)
|
-4.6
|
7.0
|
-2.9
|
-20.9
|
5.1
|
20.7
|
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:
|
196.15c
|
Net
asset value - cum income:
|
197.64c
|
Sterling:
|
|
Net
asset value - capital only:
|
154.04p
|
Net
asset value - cum income:
|
155.21p
|
Share
price:
|
144.25p
|
Total
assets (including income):
|
£293.8m
|
Discount to
cum-income NAV:
|
7.1%
|
Gearing:
|
Nil
|
Gearing range (as
a % of gross assets):
|
0-20%
|
Net
yield*:
|
4.4%
|
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 4.4% 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 payable 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
|
45.4
|
|
Saudi
Arabia
|
17.4
|
Energy
|
14.0
|
|
Indonesia
|
13.8
|
Materials
|
11.5
|
|
United Arab
Emirates
|
8.6
|
Consumer
Staples
|
10.4
|
|
Philippines
|
8.2
|
Industrials
|
10.1
|
|
Poland
|
7.6
|
Consumer
Discretionary
|
8.8
|
|
Kazakhstan
|
7.5
|
Real
Estate
|
7.4
|
|
Hungary
|
7.1
|
Communication
Services
|
5.7
|
|
Vietnam
|
5.7
|
Information
Technology
|
5.6
|
|
Thailand
|
5.6
|
Health
Care
|
0.6
|
|
Chile
|
4.5
|
|
-----
|
|
Colombia
|
4.3
|
|
119.5
|
|
Qatar
|
4.0
|
|
-----
|
|
Czech
Republic
|
4.0
|
Short
positions
|
-3.6
|
|
Greece
|
3.4
|
|
=====
|
|
Multi-International
|
2.7
|
|
|
|
Turkey
|
2.7
|
|
|
|
Argentina
|
2.2
|
|
|
|
Georgia
|
2.1
|
|
|
|
Peru
|
1.8
|
|
|
|
Malaysia
|
1.5
|
|
|
|
Romania
Ukraine
Cambodia
Bangladesh
Kenya
Kuwait
Oman
Total
|
1.3
1.0
0.7
0.5
0.5
0.5
0.3
-----
119.5
|
|
|
|
|
-----
|
|
|
|
Short
positions
|
-3.6
|
|
|
|
|
=====
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
28.02
2023
%
|
31.03
2023
%
|
30.04
2023
%
|
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
%
|
Long
|
111.9
|
106.3
|
108.5
|
112.9
|
116.9
|
113.0
|
113.3
|
114.9
|
118.8
|
113.1
|
116.6
|
119.5
|
Short
|
3.9
|
3.9
|
3.8
|
3.6
|
4.0
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
4.7
|
3.6
|
Gross
|
115.8
|
110.2
|
112.3
|
116.5
|
120.9
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
121.3
|
123.1
|
Net
|
108.0
|
102.4
|
104.7
|
109.3
|
112.9
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
111.9
|
115.9
|
Ten Largest Investments
Company
|
Country of Risk
|
Gross market value as a % of net
assets
|
|
|
|
Saudi
National Bank
|
Saudi
Arabia
|
5.1
|
Bank
Central Asia
|
Indonesia
|
4.3
|
Emaar
Properties
|
United Arab
Emirates
|
3.3
|
Abdullah Al
Othaim Markets
|
Saudi
Arabia
|
3.3
|
Ayala
Land
|
Philippines
|
3.3
|
FPT
|
Vietnam
|
2.8
|
Epam
Systems
|
Multi-International
|
2.7
|
Eldorado
Gold
|
Turkey
|
2.7
|
Advanced Info
Service
|
Thailand
|
2.7
|
Wizz
Air Holdings
|
Hungary
|
2.6
|
Commenting
on the markets, Sam Vecht,
Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The
Company’s NAV fell by 0.5% in January, outperforming its benchmark
the MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (“Benchmark Index”) which returned -0.9%. For
reference, the MSCI Emerging Markets Index was down -4.6% while the
MSCI Frontier Markets Index was up 1.0% over the same period. All
performance figures are on a US Dollar basis with net income
reinvested.
Emerging markets
had a tough start to the year, with many of our markets down in
January. In Latin America, all
markets except Colombia (+1.9%)
posted negative returns. Chile was
the weakest market within the region as metals prices declined and
the pace of interest rate cuts was slower than expected. In
Asia, the Philippines (+1.0%) was the only equity
market in our universe to finish the month in positive territory.
On the other hand, a selection of markets in EMEA were bright spots
over the month where performance was led by Turkey (+10.3%). Egypt (+19.7%) and Greece (+5.9%) were also up, the latter helped
by positive earnings revisions.
Several stock
picks did well in January. Indonesian bank Bank Syariah (+30.7%)
was the top performing stock, having delivered strong profit growth
in the last quarter of 2023. MBC Group (129.6%), the Saudi
state-owned media conglomerate, was another contributor as the
shares jumped following the company's IPO earlier in the
month. Portfolio
performance was also supported by our holding in Bloomberry Resorts
(11.8%), a Philippines based
resort and casino operator. The company's share price increased in
anticipation of a new resort opening. Argentina exposure through energy company
Vista (+11.0%) also helped performance.
On
the flipside, Chilean lithium producer SQM (-30.1%) was the largest
detractor. Lithium prices continue to struggle due to oversupply,
but we believe that they have reached cash cost support levels,
which should lead to supply curtailments. In addition, SQM faced
disruptions in its operations due to roadblocks caused by local
community protests, which have now been resolved. Hungarian
low-cost carrier Wizz Air (-10.1%) also detracted, pulling back
some of its more recent gains. Astra International (-11.5%), the
Indonesian conglomerate, also weighed on portfolio performance in
January.
Over
the course of January, we made some changes to the portfolio. We
rotated some of our Indonesian exposure by exiting food industry
company Indofoods and initiated a position in Ciputra, an
Indonesian property developer with broad based exposure to the
country. We reduced our underweight to Saudi Arabia by topping up our holding in
grocery operator Al Othaim as the name has lagged the broader Saudi
market. We exited our holding in Malaysia Airports as the size of the
anticipated tariff hike and the recovery in passengers may
disappoint the market.
We
believe global markets are starting to feel the impact of higher
interest rates, noting slowing credit growth in particular as
evidence that a demand slowdown is ongoing in developed markets.
When combined with a Chinese economy which is struggling to find
its footing we find it difficult to see where a meaningful pick up
in global growth will come from. In contrast we see better
fundamentals in frontier and smaller emerging markets. Monetary
tightening across much of our universe was ahead of that in
developed markets, particularly in Latin
America and Eastern Europe.
With inflation falling across many countries within our universe,
rate cuts have started to materialize. This is a good set up for
domestically oriented economies to see a cyclical pick up. Our
investment universe, in absolute and relative terms, remains
under-researched and we believe this should enable compelling alpha
opportunities.
Sources:
1BlackRock as at
31 January 2024
2MSCI as at
31 January 2024
23 February 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.