BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI:
5493003K5E043LHLO706)
All
information is at
30 November
2023 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
|
4.1
|
-3.1
|
11.4
|
43.7
|
25.0
|
123.8
|
Net
asset value
|
2.2
|
-2.5
|
8.3
|
48.1
|
38.3
|
147.5
|
Benchmark
(NR)**
|
1.3
|
-2.0
|
-5.8
|
19.0
|
9.0
|
76.1
|
MSCI
Frontiers Index (NR)
|
2.7
|
-2.8
|
0.4
|
6.5
|
11.9
|
65.0
|
MSCI
Emerging Markets Index (NR)
|
3.5
|
1.2
|
-2.0
|
-6.8
|
13.1
|
50.0
|
|
|
|
|
|
|
|
US
Dollars:
|
|
|
|
|
|
|
Share
price
|
8.6
|
-3.2
|
18.5
|
36.4
|
24.2
|
82.7
|
Net
asset value
|
6.6
|
-2.6
|
15.3
|
40.5
|
37.4
|
101.7
|
Benchmark
(NR)**
|
5.7
|
-2.1
|
0.1
|
12.8
|
8.2
|
44.1
|
MSCI
Frontiers Index (NR)
|
7.1
|
-2.9
|
6.7
|
1.0
|
11.0
|
33.9
|
MSCI
Emerging Markets Index (NR)
|
8.0
|
1.1
|
4.2
|
-11.6
|
12.3
|
21.8
|
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:
|
188.18c
|
Net
asset value - cum income:
|
193.68c
|
Sterling:
|
|
Net
asset value - capital only:
|
148.64p
|
Net
asset value - cum income:
|
152.99p
|
Share
price:
|
140.00p
|
Total
assets (including income):
|
£289.6m
|
Discount to
cum-income NAV:
|
8.5%
|
Gearing:
|
Nil
|
Gearing range (as
a % of gross assets):
|
0-20%
|
Net
yield*:
|
4.5%
|
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 4.5% 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 2023.
**
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
|
39.3
|
|
Indonesia
|
13.7
|
Energy
|
14.6
|
|
Saudi
Arabia
|
11.6
|
Industrials
|
13.5
|
|
United Arab
Emirates
|
8.7
|
Materials
|
12.2
|
|
Philippines
|
7.7
|
Consumer
Staples
|
9.8
|
|
Kazakhstan
|
7.1
|
Consumer
Discretionary
|
6.9
|
|
Thailand
|
6.3
|
Real
Estate
|
6.5
|
|
Hungary
|
6.2
|
Information
Technology
|
5.4
|
|
Vietnam
|
5.7
|
Communication
Services
|
4.8
|
|
Chile
|
5.2
|
Health
Care
|
0.4
|
|
Poland
|
4.8
|
|
-----
|
|
Malaysia
|
4.5
|
|
113.4
|
|
Colombia
|
4.2
|
|
-----
|
|
Greece
|
4.0
|
Short
positions
|
-4.6
|
|
Qatar
|
3.9
|
|
=====
|
|
Turkey
|
2.9
|
|
|
|
Multi-International
|
2.6
|
|
|
|
Argentina
|
2.5
|
|
|
|
Czech
Republic
|
2.1
|
|
|
|
Georgia
|
1.9
|
|
|
|
Peru
|
1.6
|
|
|
|
Romania
|
1.3
|
|
|
|
Kuwait
|
1.1
|
|
|
|
Cambodia
Oman
Ukraine
Kenya
Bangladesh
Total
|
1.0
1.0
0.9
0.5
0.4
113.4
|
|
|
|
|
-----
|
|
|
|
Short
positions
|
-4.6
|
|
|
|
|
=====
|
*reflects gross
market exposure from contracts for difference (CFDs).
Market
Exposure
|
31.12
2022
%
|
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
%
|
Long
|
110.7
|
112.4
|
111.9
|
106.3
|
108.5
|
112.9
|
116.9
|
113.0
|
113.3
|
114.9
|
118.8
|
113.1
|
Short
|
4.9
|
5.1
|
3.9
|
3.9
|
3.8
|
3.6
|
4.0
|
3.0
|
3.0
|
3.0
|
3.1
|
4.6
|
Gross
|
115.6
|
117.5
|
115.8
|
110.2
|
112.3
|
116.5
|
120.9
|
116.0
|
116.3
|
117.9
|
121.9
|
118.0
|
Net
|
105.8
|
107.3
|
108.0
|
102.4
|
104.7
|
109.3
|
112.9
|
110.0
|
110.3
|
111.9
|
115.7
|
108.8
|
Ten Largest Investments
Company
|
Country of Risk
|
Gross market value as a % of net
assets
|
|
|
|
Saudi
National Bank
|
Saudi
Arabia
|
4.4
|
Bank
Central Asia
|
Indonesia
|
4.2
|
Emaar
Properties
|
United Arab
Emirates
|
3.4
|
Ayala
Land
|
Philippines
|
3.1
|
Eldorado
Gold
|
Turkey
|
2.9
|
PKO
Bank Polski
|
Poland
|
2.9
|
FPT
|
Vietnam
|
2.8
|
National Bank of
Greece
|
Greece
|
2.8
|
JSC
Kaspi
|
Kazakhstan
|
2.8
|
Advanced Info
Service
|
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 6.6% in November, outperforming its benchmark
the MSCI Emerging ex Selected Countries + Frontier Markets + Saudi
Arabia Index (“Benchmark Index”) which returned 5.7%. For
reference, the MSCI Emerging Markets Index was up by 8.0% while the
MSCI Frontier Markets Index was up by 7.1% over the same period.
All performance figures are on a US Dollar basis with net income
reinvested.
November was a
strong month for many of our markets and emerging markets more
broadly, as all regions posted positive returns. Argentina was the best performing market,
surging +42.4% following Javier Milei’s unexpected victory, which
instilled cautious optimism in the market about the country’s
potential for economic reform. Eastern European markets also did
well with Greece up by 11.2%,
followed by Poland (+9.6%) and
Hungary (+8.4%).
Hungarian
low-cost carrier Wizz Air (+27.0%) was the top performing stock
over the month, after reporting an increase in passenger traffic
numbers. National Bank of Greece
(+22.3%) was another strong contributor as the final 20% stake held
by the state-controlled bank HFSF was sold down. Elsewhere, IT
services company EPAM (+18.7%) also contributed positively after
delivering better-than-expected 3Q results. Portfolio performance
was also supported by our positioning in ASEAN markets Philippines and Vietnam with both Ayala Land (+15.2%) and PetroVietnam Drilling
(+20.4%) up over the month. As for detractors, Nakilat Qatar Gas
Transport (-8.0%) was among the worst performers. Not owning
Saudi Arabia's Al Rajhi Bank also
detracted from relative returns as the bank has reached an
inflection point in margins after several quarters of
decline.
Over
the course of November, we made few changes to the portfolio. We
added to our holding in National Bank of Greece as we view the capital return potential
from the bank to be substantial and think this is underestimated by
the market. We shifted some of our financials exposures by exiting
Bangkok Bank in Thailand and
taking some profits in our holdings in Bank Central Asia and Bank
Mandiri, while initiating a new position in Bank Syariah. We
believe Bank Syariah has a long runway from low penetration of
Islamic banking in Indonesia. We
also exited our Saudi holdings in IT company ELM and outdoor
advertising company, Arabian Contracting Services, as our
investment theses have played out and both stocks have re-rated
substantially on upgraded earnings growth profiles.
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 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
30 November 2023
2MSCI as at
30 November 2023
18 December 2023
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.