BLACKROCK FRONTIERS INVESTMENT TRUST PLC - Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 30 September 2016 and unaudited.
Performance of ordinary share portfolio at month end with net income reinvested.
							One month %			Three months %				One year %		Three years %						Five years %		Since  Launch* %
Sterling:
Share price							3.2			10.7				30.0		28.7						105.3		54.0
Net asset value							2.9			7.3				27.3		35.3						96.3		57.0
MSCI Frontiers Index (NR)							3.4			5.6				17.7		24.0						50.5		27.0
MSCI Emerging Markets Index (NR)							2.1			12.2				36.2		22.6						39.2		12.8
US Dollars:
Share price							2.4			7.6				11.6		3.3						71.6		28.7
Net asset value							2.0			4.3				9.2		8.7						64.0		31.1
MSCI Frontiers Index (NR)							2.6			2.6				0.9		-0.5						25.5		5.8
MSCI Emerging Markets Index (NR)							1.3			9.0				16.8		-1.7						16.1		-6.0
Sources: BlackRock and Standard & Poor’s Micropal * 17 December 2010.
At month end Ordinary Shares
US Dollar
Net asset value - capital only:																		164.44c
Net asset value - cum income:																		168.18c
Sterling:
Net asset value - capital only:																		126.58p
Net asset value - cum income:																		129.46p
Share price:																		129.00p
Total assets (including income):																		£212.8m
Discount to cum-income NAV:																		0.4%
Gearing:																		nil
Gearing range (as a % of gross assets):																		0-20%
Net yield*:																		4.0%
Ordinary shares in issue:																		164,333,108
Ongoing charges**:																		1.5%
Ongoing charges plus taxation and performance fee:																		1.6%
*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 4.0% and includes the 2015 final dividend of 4.15 cents per share declared on 18 December 2015, paid to shareholders on 19 February 2016 and the 2016 interim dividend of 2.60 cents per share announced on 16 May 2016 and paid to shareholders on 1 July 2016. **Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 September 2015.
The following relates specifically to the ordinary share portfolio.
Sector Analysis				Gross assets(%)*								Country Analysis								Gross assets(%)*
Financials				35.1								Argentina								13.8
Consumer Staples				17.8								Pakistan								11.8
Telecommunication				11.2								Romania								11.2
Utilities				7.9								Bangladesh								9.2
Energy				6.7								Kazakhstan								9.2
Health Care				6.3								Vietnam								7.3
Materials				5.3								Sri Lanka								6.9
Information Technology				5.3								Morocco								5.7
Industrials				5.1								Ukraine								5.6
Real Estate				2.0								Kenya								5.5
Consumer Discretionary				1.3								Kuwait								3.8
				-----								Nigeria								3.2
Total				104.0								Eurasia								2.3
				-----								Estonia								2.1
Short positions				0.0								Slovenia								2.1
				=====								Caribbean								1.9
												Philippines								1.4
												Egypt								0.8
												Saudi Arabia								0.2
																				-----
												Total								104.0
																				-----
												Short positions								0.0
																				=====
*reflects gross market exposure from contracts for difference (CFDs). Market Exposure
	31.10  2015     %	30.11  2015     %	31.12  2015     %		31.01  2016    %	29.02  2016     %		31.03  2016     %					30.04  2016     %		31.05  2016     %				30.06  2016     %		31.07  2016     %		31.08  2016     %		30.09  2016     %
Long	99.6	100.3	99.5		102.5	102.2		108.1					109.2		108.8				110.5		103.4		105.7		104.0
Short	1.2	1.7	1.7		1.4	1.1		1.2					1.3		0.0				0.0		0.0		0.0		0.0
Gross	100.8	102.0	101.2		103.9	103.3		109.3					110.5		108.8				110.5		103.4		105.7		104.0
Net	98.4	98.6	97.8		101.1	101.1		106.9					107.9		108.8				110.5		103.4		105.7		104.0
Ten Largest Equity Investments
Company									Country of Risk								% of gross assets
MCB Bank									Pakistan								4.8
Banco Macro									Argentina								4.0
KazMunaiGas Exploration Production									Kazakhstan								3.7
Halyk Savings Bank									Kazakhstan								3.4
Grupo Financiero Galicia									Argentina								3.4
Square Pharmaceuticals									Bangladesh								3.3
BRD Groupe Societe Generale									Romania								3.2
MHP									Ukraine								3.1
Electrica									Romania								3.1
S.N.G.N. Romgaz									Romania								2.9

Commenting on the markets, Sam Vecht, representing the Investment Manager noted:

In September, the Company’s NAV rose by 2.0% but underperformed the MSCI Frontier benchmark by 0.6% (on a US Dollar basis with net income reinvested). On a 12 month basis, the Company outperformed the benchmark by 8.3%, returning 9.2% against the benchmark’s 0.9%. The MSCI Emerging Markets Index rose by 1.3% and 16.8%, over the same periods.

September performance was broadly spread across countries, sectors, and names. Argentine utility, Pampa Energia, remained as one of the Company’s most fruitful investments, surging almost 30% over the period as they announced plans to double production capital expenditure to meet rising power demand and reduce reliance on imports. This follows strong performance on the back of their controlling stake acquisition of Petrobras Argentina in July, and was further supported by the Supreme Court’s ruling in favour of allowing electricity providers to raise prices, a key victory for President Macri in his fight to cut back on fiscally expensive subsidies. Pakistani tractor manufacturer, Millat, also benefitted the Company gaining 22% in September amid strong year-over-year volumes and the potential to grow exports. Kenyan financial, Equity Group, rebounded almost 12% over the month as the bank is likely to be a longer-term beneficiary of the last month’s legislation capping interest rates as the industry begins to consolidate.

On the other hand, off-benchmark positions in Sri Lanka such as Distilleries Company of Sri Lanka  and Hatton National Bank, marginally weighed on performance due in part to the Central Bank of Sri Lanka’s surprise announcement that it would leave interest rates unchanged at 8.5%, despite signs of slowing growth. Romanian positions also detracted as the market experienced a slight pull back in September. Broad positioning remain relatively unchanged at month end, however, we had exited our position in Saudi Basic Industries (SABIC) taking profits following strong performance. We initiated a position in Vietnamese IT & Telecommunications name, FPT, on the back of strong expected growth from their software outsourcing business.

20 October 2016

ENDS

Latest information is available by typing www.blackrock.co.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.

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