BRFI presentation coming up witth Kepler on November 4th
Sadly I can't make it, but they are good speakers and it should be insightful |
Yes I have had a look and most have outperformed this one the last few years |
If you want Frontier markets then range is very limited but there are are more for emerging markets |
I agree looking at it it has a had a rough 2/3 years. Currently trading on a discount to NAV and has under performed the sector, however the sector they are in could have a good 5 - 10 years after this COVID scare.
Question is are the better alternatives out there? |
I am watching it in order to do a long term sale. Performance is always going to be better tomorrow but tomorrow never comes. It also has stumbled a few times NMC health and buying into Argentine before it went into decline. Yes we have Covid and investment is a long term endeavour but my patience is running thin! |
Anybody else keeping an eye on this fund with a view to a long term buy? |
Latest Kepler research update on BRFI |
NAV nicely higher again. |
Approx 2 pence dividend available on next week's X,
coupled with the current % discount near a 12 month high.
Added further today. |
Added on the NAV discount widening. |
Tender offer as predicted above.. Northern Bear tendered at 70p which I thought undervalued the company at the time but is now 47p. No price indicated as it depends on take up but says NAV which is close to the current price.. I think BRFi is undervalued too but.... After research I won't be selling because EM's have further to go and yield is decnt here. |
The unaudited net asset values for BlackRock Frontiers Investment Trust PLC at
close of business on 5 February 2021 were:
121.76p Capital only Sterling (pence)
122.58p Including current year income Sterling (pence) XD |
 Kepler end of year view
The dramatic snap-back in the performance of BlackRock Frontiers since the news of a breakthrough on a vaccine for Coronavirus began to filter through underlines what could be an interesting entry point for investors seeking exposure to emerging markets, and puts the trust back on the front foot after a difficult year.
As we discuss in our detailed note on the trust, BRFI invests in ‘true’ emerging markets – ignoring the eight largest emerging economies which make up almost 90% of the average IA Global Emerging Markets fund according to Morningstar data - and investing instead in the smaller emerging markets and frontier markets, which includes countries like Indonesia, Vietnam and the Philippines.
Valuations in these countries have suffered during the flight to safety and liquidity which has accompanied the pandemic, and they have missed out on the waterfall of money which has poured into big tech and ecommerce, neither of which features heavily here.
Even as they begin to rebound valuations in smaller developing countries remain very low and we believe have the potential for room to run, particularly if the current obsession with tech and ecommerce begins to lose its sheen and growth focussed investors begin to seek pastures new.
Ordinarily, economic growth in these countries and stock market performance tends to be more endogenously driven and so less correlated to global peers. The exception is during global crises such as this one, the scale of which has seen all boats falling with the tide.
However, despite their apparent economic fragility compared to richer countries, many of the smaller developing nations have been more resilient to the pandemic. Populations in these countries are, on average, younger than those in the developed world or in the larger and better known ‘emerging’ countries which make up the bulk of most emerging market portfolios, making them more resilient to the worst effects of COVID which we now know are most potent among the elderly.
This has spared them the worst impacts of the pandemic from a public health perspective and, importantly, their inability to conjure up vast quantities of cash via debt issuance has – for once – been a blessing in disguise, meaning they have not embarked upon the immense debt spree which has been seen in Europe and the United States, and for which we will be paying for until our children are old and grey.
This combination of factors means that in our view the countries in BRFI’s portfolio are particularly sensitive to any global economic rebound whilst also, because they remain at relatively low valuations, equipped with some insulation against the downside should the recovery stumble.
A weaker dollar environment, which is possible especially if a Biden administration manages to implement a large fiscal stimulus, should also benefit BRFI’s universe. We think the rise in the net exposure in recent months and elimination of the short book shows how positive the managers are on the current opportunity.
Against this backdrop the current discount (-1.5%) – even though it has tightened in recent weeks – may well prove attractive as a potential entry point for some investors - given that for most of the last five years BRFI has traded on a premium to NAV. |
The unaudited net asset values for BlackRock Frontiers Investment Trust PLC at
close of business on 30 November 2020 were:
114.14p Capital only Sterling (pence)
116.35p Including current year income Sterling (pence) |
Thanks not an unreasonable one. |
From a competitor site to ADVFN that is like BSE but not B... ;-)
Recent sells at 109.8p, recent buys at 111.1p |
New to this one, what's the spread like on this one please. |
Last week's rise is still ongoing today... looking a bit overbought but let's hope it continues |
About 6%? I think I'd rather tuck these away for the long term |
Tender offer early in the New Year?.
Still available on a nice NAV discount. |
Thanks Spangle93 very interesting I was beginning to give up hope on this one but I will hold a bit longer! The principles all are sound but the results over the last few years even ignoring Covid have been poor. Maybe a new American president will help |
True, though that might mean this would be a good time to be buying here?
Can't find yesterday's presentation uploaded, but this is a recent one containing some of the same material |
Hasn't apparently generated any interest though. I guess investors' attention is elsewhere. |
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