BlackRock Frontiers Investment Trust Plc Portfolio Update
19 Gennaio 2024 - 1:51PM
UK Regulatory
TIDMBRFI
BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706)
All information is at 31 December 2023 and unaudited.
Performance at month end with net income reinvested.
One Three One Three Five Since
month months year years years Launch*
% % % % % %
Sterling:
Share price 2.1 -0.7 15.7 33.4 30.7 128.6
Net asset value 4.3 1.4 15.9 46.1 48.0 158.2
Benchmark (NR)** 3.7 1.4 0.4 21.1 13.6 82.7
MSCI Frontiers Index (NR) 2.3 -0.5 5.3 5.6 17.7 68.8
MSCI Emerging Markets Index (NR) 3.2 3.3 3.6 -8.3 19.7 54.8
US Dollars:
Share price 2.9 3.7 22.8 24.5 31.0 87.9
Net asset value 5.1 5.9 23.0 36.4 48.3 111.9
Benchmark (NR)** 4.5 6.0 6.4 12.9 13.7 50.6
MSCI Frontiers Index (NR) 3.0 4.0 11.6 -1.6 17.8 38.0
MSCI Emerging Markets Index (NR) 3.9 7.9 9.8 -14.5 19.8 25.6
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: 197.52c
Net asset value - cum income: 203.47c
Sterling:
Net asset value - capital only: 154.94p
Net asset value - cum income: 159.60p
Share price: 143.00p
Total assets (including income): £302.2m
Discount to cum-income NAV: 10.4%
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 Gross Country Gross
market value as a
Analysis market Analysis
% of net assets
value
as a %
of
net
assets
Financials 41.0 Saudi Arabia
15.2
Energy 14.1 Indonesia
13.8
Industrials 12.6 United Arab Emirates
8.6
Materials 11.8 Philippines
7.5
Consumer 9.7 Hungary
7.1
Staples
Consumer 8.5 Thailand
6.7
Discretionary
Real Estate 6.6 Kazakhstan
6.6
Communication 6.3 Poland
5.9
Services
Information 5.6 Vietnam
5.6
Technology
Health Care 0.4 Chile
5.3
----- Colombia
4.1
116.6 Qatar
3.8
----- Malaysia
3.3
Short -4.7 Greece
3.1
positions
===== Multi-International
2.8
Turkey
2.8
Czech Republic
2.5
Georgia
2.1
Argentina
1.9
Peru
1.8
Romania
1.4
KuwaitUkraineOmanCambodiaKenyaBangladeshTotal
1.11.01.00.80.40.4116.6
-----
Short positions
-4.7
=====
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
31.01 2023 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
% % % % %
% % % % % %
%
Long 112.4 111.9 106.3 108.5 112.9
116.9 113.0 113.3 114.9 118.8 113.1
116.6
Short 5.1 3.9 3.9 3.8 3.6
4.0 3.0 3.0 3.0 3.1 4.6
4.7
Gross 117.5 115.8 110.2 112.3 116.5
120.9 116.0 116.3 117.9 121.9 118.0
121.3
Net 107.3 108.0 102.4 104.7 109.3
112.9 110.0 110.3 111.9 115.7 108.8
111.9
Ten Largest Investments
Company Country of Risk Gross market value as a % of net assets
Saudi Saudi Arabia 4.7
National
Bank
Bank Indonesia 4.2
Central
Asia
Emaar United Arab Emirates 3.4
Properties
Ayala Land Philippines 3.2
Epam Multi-International 2.8
Systems
Wizz Air Hungary 2.8
Holdings
FPT Vietnam 2.8
Eldorado Turkey 2.8
Gold
Advanced Thailand 2.7
Info
Service
CP All Thailand 2.7
Commenting on the markets, Sam Vecht, Emily Fletcher and Sudaif Niaz,
representing the Investment Manager noted:
The Company's NAV rose by 5.1% in December, outperforming its benchmark the MSCI
Emerging ex Selected Countries + Frontier Markets + Saudi Arabia Index
("Benchmark Index") which returned 4.5%. For reference, the MSCI Emerging
Markets Index was up 3.9% while the MSCI Frontier Markets Index was up 3.0% over
the same period. All performance figures are on a US Dollar basis with net
income reinvested.
December was another strong month for many of our markets. Latin America was the
best performing region, with Peru (+24.5%) and Colombia (+13.5%) performing best
while Poland (+8.2%) led in EMEA. Market reaction was upbeat to the return of
Donald Tusk as PM since a pro-EU coalition government under Tusk (a former
president of the European Council) is expected to unblock EU funding earmarked
for Poland. Qatar and Saudi Arabia were other notable outperformers in the
region. In Asia, Thailand was the best performing market, up by 5.9%.
Several stock picks did well in December. Hungarian low-cost carrier Wizz Air
(+18.2%) was the top performing stock for a second consecutive month, rebounding
from previous lows. IT services company EPAM (+15.2%) also continued its strong
run. Portfolio performance was further supported by our positioning in Latin
America through our holding in Chilean natural resources company SQM (+20.6%)
and Colombian bank Bancolombia (+13.9%). The former performed well in
anticipation of and the announcement of the partnership with Codelco, which has
extended their lease in the Atacama until 2060. On the other hand, the Kazakh
payments and e-commerce company Kaspi (-9.8%) pulled back some of its gains
after reaching an all-time high at the end of November.
Over the course of December, we made few changes to the portfolio. We initiated
a position in Polish clothing manufacturer LPP as we are optimistic about the
company's ability to expand in Southern Europe and based on our view that
declining rates will be supportive for consumption. We also topped up our
holding in Hungarian oil and gas company MOL, a high yielding stock. We trimmed
our positions in polish bank PKO and National Bank of Greece, on the back of
strong performance. We exited our holding in Philippines based conglomerate LT
Group, as we see downside risk to the company's tobacco business volumes.
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 imminent 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:
[1]BlackRock as at 31 December 2023
[2]MSCI as at 31 December 2023
19 January 2024
ENDS
Latest information is available by typing
www.blackrock.com/uk/brfi (https://clicktime.symantec.com/38FDgnvAp9QvqKp56MgT4k7
7Vc?u=http%3A%2F%2Fwww.blackrock.com%2Fuk%2Fbrfi) 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.
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
https://mb.cision.com/Main/22403/3912421/2551425.pdf Release
END
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