Share Name Share Symbol Market Type Share ISIN Share Description
Blackrock Frontiers Investment Trust Plc LSE:BRFI London Ordinary Share GB00B3SXM832 ORD USD0.01
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.20 -1.45% 81.80 81.80 84.00 85.80 81.80 84.40 529,950 16:26:40
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 19.4 17.5 6.7 12.4 197

BlackRock Frontiers Portfolio Update

21/02/2020 10:35am

UK Regulatory (RNS & others)


 
TIDMBRFI 
 
BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706) 
 
All information is at 31 January 2020 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                           -11.7     -6.4   -10.1     -8.8     31.1      59.9 
 
Net asset value                        -4.5     -5.1    -4.7     -0.4     27.5      68.5 
 
Benchmark (NR)**                       -3.7     -2.9    -5.7     13.2     31.9      57.9 
 
MSCI Frontiers Index (NR)               0.4      3.8    12.3     16.3     35.6      63.4 
 
MSCI Emerging Markets Index (NR)       -4.2      0.4     3.6     19.8     41.9      41.1 
 
US Dollars: 
 
Share price                           -12.2     -4.6   -10.0     -4.3     15.3      35.8 
 
Net asset value                        -5.0     -3.4    -4.5      4.4     12.1      42.9 
 
Benchmark (NR)**                       -4.2     -1.1    -5.5     18.6     15.8      34.6 
 
MSCI Frontiers Index (NR)              -0.1      5.7    12.6     21.9     19.0      38.1 
 
MSCI Emerging Markets Index (NR)       -4.7      2.3     3.8     25.5     25.0      19.3 
 
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:                                                157.31c 
 
Net asset value - cum income:                                                  157.93c 
 
Sterling: 
 
Net asset value - capital only:                                                119.34p 
 
Net asset value - cum income:                                                  119.80p 
 
Share price:                                                                   116.00p 
 
Total assets (including income):                                               GBP289.7m 
 
Discount to cum-income NAV:                                                       3.2% 
 
Gearing:                                                                           nil 
 
Gearing range (as a % of gross assets):                                          0-20% 
 
Net yield*:                                                                       5.2% 
 
Ordinary shares in issue:                                                  241,822,801 
 
Ongoing charges**:                                                                1.4% 
 
Ongoing charges plus taxation and performance fee:                                1.4% 
 
*The Company's yield based on dividends announced in the last 12 months as at 
the date of the release of this announcement is 5.2% and includes the 2019 
final dividend of 4.75 cents per share declared on 06 December 2019 with a pay 
date of 07 February 2020. Also included is the 2019 interim dividend of 3.00 
cents per share announced on 30 May 2019 and paid to shareholders on 28 June 
2019. 
 
**Calculated as a percentage of average net assets and using expenses, 
excluding performance fees and interest costs for the year ended 30 September 
2019. 
 
Sector                          Gross market    Country                Gross market value as 
Analysis                     value as a % of    Analysis                  a % of net assets* 
                                 net assets* 
 
Financials                              29.9    Indonesia                               15.5 
 
Consumer Staples                        16.0    Thailand                                12.5 
 
Consumer Discretionary                  15.2    Egypt                                    9.9 
 
Materials                               12.5    Saudi Arabia                             9.5 
 
Real Estate                             12.0    Vietnam                                  9.3 
 
Industrials                             10.3    Philippines                              7.1 
 
Energy                                   7.9    United Arab Emirates                     6.5 
 
Communication Services                   3.6    Malaysia                                 4.9 
 
Health Care                              2.0    Pakistan                                 4.9 
 
Utilities                                1.8    Kazakhstan                               4.7 
 
Information Technology                   1.8    Turkey                                   4.0 
 
                                       -----    Ukraine                                  2.7 
 
                                       113.0    Greece                                   2.5 
 
Short positions                        -----    Nigeria                                  2.5 
 
                                        -1.1    Romania                                  2.4 
 
                                       =====    PAN-Africa                               2.3 
 
                                                Pan-Emerging Europe                      2.3 
 
                                                Qatar                                    2.2 
 
                                                Chile                                    2.0 
 
                                                Poland                                   2.0 
 
                                                Kenya                                    1.6 
 
                                                Colombia                                 1.4 
 
                                                Argentina                                0.3 
 
                                                                                       ----- 
 
                                                Total                                  113.0 
 
                                                                                       ----- 
 
                                                Short positions                         -1.1 
 
                                                                                       ===== 
 
 
*reflects gross market exposure from contracts for difference (CFDs). 
 
Market Exposure 
 
 
        28.02  31.03  30.04  31.05  30.06  31.07  31.08  30.09  31.10  30.11  31.12  31.01 
         2019   2019   2019   2019   2019   2019   2019   2019   2019   2019   2019   2020 
            %      %      %      %      %      %      %      %      %      %      %      % 
 
Long    112.9  113.1  116.0  111.0  114.1  117.0  111.5  110.1  108.0  107.8  108.0  113.0 
 
Short     6.7    6.6    6.6    8.8    8.1    5.1    4.2    4.1    2.2    1.7    1.0    1.1 
 
Gross   119.6  119.7  122.6  119.8  122.2  122.1  115.7  114.2  110.2  109.5  109.0  114.1 
 
Net     106.2  106.5  109.4  102.2  106.0  111.9  107.3  106.0  105.8  106.1  107.0  111.9 
 
Ten Largest Investments 
 
Company                                 Country of Risk        Gross market value as a 
                                                                       % of net assets 
 
Astra International                     Indonesia                                  4.2 
 
Bank Mandiri                            Indonesia                                  3.7 
 
United International Transport          Saudi Arabia                               3.5 
 
Charoen Pokphand Food                   Thailand                                   3.0 
 
Vincom Retail                           Vietnam                                    2.9 
 
Eastern Tobacco                         Egypt                                      2.9 
 
Bank of the Philippine Islands          Philippines                                2.8 
 
Yanbu National Petrochemical            Saudi Arabia                               2.8 
 
Halyk Savings Bank                      Kazakhstan                                 2.7 
 
MCB Bank                                Pakistan                                   2.7 
 
 
Commenting on the markets, Sam Vecht and Emily Fletcher, representing the 
Investment Manager noted: 
 
 
The Company's NAV returned -5.0%1 versus its benchmark the MSCI Emerging ex 
Selected Countries + Frontier Markets + Saudi Arabia Index ("Benchmark Index"), 
which returned -4.2% in January2. For reference, the MSCI Emerging Markets 
Index ended the month -4.7% and MSCI Frontier Markets Index -0.1%2 over the 
same period (all performance figures are on a US Dollar basis with net income 
reinvested). 
 
Our holdings in Nigeria were the top contributors to returns in January driven 
by strong performance from the banks (Zenith Bank +11% and United Bank for 
Africa +11%). The bank dividend yields currently compare very favourably to 
interest rates that domestic savers can access.  Our position in Kazakh 
financial Halyk Savings Bank (+9.0%) was an additional contributor. Our 
holdings in Pakistan also contributed positively, driven by holdings in MCB 
Bank (+2.8%) and HUB Power(+4.5%). Pakistan has seen a substantial narrowing of 
its trade deficit over the last year, reducing pressure on its currency. 
 
The largest detractor from returns this month were our holdings in the 
Philippines driven by holdings in tobacco (LT Group -18.5%) and tourism 
(Bloombery Resorts -20.4%). While the Philippines market has been a weak 
performer, we remain overweight. We continue to see strong underlying 
fundamentals such as healthy loan growth which should help banks earnings, 
while the central bank still has room to further cut rates in our view. Our 
holding in Vietnam mall operator Vincom Retail (-12.0%) was an additional 
detractor as Coronavirus fears hit the region. We reduced our exposure to the 
market given the risk of a slowdown in activity in Vietnam if the virus 
spreads. Ukraine protein company MHP also detracted (-13.4%) after a case of 
bird flu was detected in the country. 
 
The highest conviction country positions in the Company are Egypt, Vietnam and 
Pakistan; while we remain underweight Saudi Arabia, Malaysia and Kuwait. We 
made a few changes to the portfolio in January. We are tracking the Coronavirus 
outbreak closely, paying attention to the impact on consumption as well as the 
impact of supply chain disruption on production and the effect these are likely 
to have on China's H1 GDP.  We don't foresee market volatility resulting from 
the outbreak disrupting the medium-term positive set up for emerging and 
frontier equities and we are using market movement to add to our high 
conviction positions. Elsewhere, we have been trimming Nigerian exposure into 
strength and are increasingly concerned about Turkey given signs of 
intervention in the currency market, as policymakers try to fight what we 
believe is an inevitable currency devaluation. 
 
We still see significant value in the smaller emerging and frontier markets and 
believe a number of these countries are set up for a strong year in 2020. We 
see the markets are well supported by the lower rate environment and improved 
local and global liquidity. Emerging market equities have lagged with the 
earnings yield not following the decline in bond yields. The asset class should 
also get some help from foreign exchange rates and we note that many emerging 
market currencies look to have broken out in recent weeks. We also note that 
many stocks in our universe are trading at extremely low valuations, which we 
view as an opportunity to invest in a wide subset of countries which exhibit 
good growth and have low government debt levels. We continue to look for 
companies with strong cash flow and high dividend yields, trading on some of 
the lowest valuations in the world. 
 
Sources: 
 
1BlackRock as at 31 January 2020 
 
2MSCI as at 31 January 2020 
 
21 February 2020 
 
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. 
 
 
 
END 
 

(END) Dow Jones Newswires

February 21, 2020 05:35 ET (10:35 GMT)

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