REG-BlackRock Frontiers Investment Trust Plc: Half-year Financial Report
28/05/2026 07:02
BlackRock Frontiers Investment Trust plc
(LEI: 5493003K5E043LHLO706)
HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2026
Performance record
The Company’s financial statements are presented in US Dollars. The
Company’s shares are listed on the London Stock Exchange and quoted in
British Pound Sterling. The British Pound Sterling amounts for performance
returns shown below are presented for the convenience of Sterling denominated
investors. The Company does not hedge currency exposure and is therefore
susceptible (both positively and negatively) to movements in the US Dollar
(its reporting currency) relative to other currencies represented in the
portfolio.
As at As at % change
31 March 30 September
2026 2025
US Dollar
Net assets (US$’000) 1 385,723 446,738 -13.7
Net asset value per ordinary share (cents) 235.71 236.03 -0.1
Ordinary share price (cents) 2 223.52 226.17 -1.2
====== ======
British Pound Sterling
Net assets (£’000) 1,2 292,503 331,839 -11.9
Net asset value per ordinary share (pence) 2 178.74 175.32 +2.0
Ordinary share price (pence) 169.50 168.00 +0.9
Discount 3 5.2% 4.2%
====== ======
Performance (on a total return basis) For the six months ended For the Since
31 March 2026 year ended inception 4
% 30 September 2025 %
%
US Dollar
Net asset value per share (with dividends reinvested) 3 +2.4 +15.1 +174.6
Benchmark Index 5 +4.3 +10.6 +89.7
MSCI Frontier Markets Index +5.6 +36.2 +119.8
MSCI Emerging Markets Index +4.6 +17.3 +81.4
Ordinary share price (with dividends reinvested) 3 +1.4 +21.9 +159.3
====== ====== ======
British Pound Sterling
Net asset value per share (with dividends reinvested) 3 +4.6 +14.7 +223.6
Benchmark Index 5 +6.5 +10.2 +122.6
MSCI Frontier Markets Index +7.8 +35.7 +159.9
MSCI Emerging Markets Index +6.7 +16.9 +114.5
Ordinary share price (with dividends reinvested) 3 +3.6 +21.4 +205.0
====== ====== ======
1 The change in net assets reflects the cash exit tender
offer, dividends paid and portfolio valuation movements during the period.
² Based on an exchange rate of US$1.3187 to £1 at 31
March 2026 and US$1.3463 to £1 at 30 September 2025.
³ Alternative Performance Measures, see Glossary in the
half yearly report and financial statements.
4 Since date of incorporation on 15 October 2010.
5 Prior to 1 April 2018, the Benchmark Index was the MSCI
Frontier Markets Index. The performance returns of the Benchmark Index since
inception have been blended with effect from 1 April 2018 to reflect this
change.
Sources: BlackRock and LSEG Datastream.
Chair’s statement
Dear Shareholder,
I am pleased to present the Company’s Half Yearly Financial Report for the
six months to 31 March 2026.
Period highlights
- NAV total return of +2.4% compared to the Benchmark
Index return of +4.3% (in US Dollar terms with dividends reinvested);
- Share price total return of +1.4% (in US Dollar terms
with dividends reinvested) or +3.6% (in British Pound Sterling terms with
dividends reinvested);
- Declared interim dividend of 3.85 cents per share,
producing a yield of 4.6% (based on the share price as at 31 March 2026,
interim dividend for 2026 and final dividend for 2025); and
- Implementation of the five-yearly tender offer,
following which 86.3% of shareholders chose to remain invested, and subsequent
re-issuance of shares from Treasury at a premium to NAV.
Performance and market overview
For much of the period under review, Emerging and Frontier Markets were
supported by a more favourable global backdrop, with easing inflation and
expectations of lower policy rates contributing to improved investor
sentiment. From the start of the current financial year
and up to the end of February 2026, the Company’s NAV had performed
strongly, increasing by 16.6% and outperforming the Benchmark Index return of
13.4% over the same period. However, the outbreak of the conflict between the
US and Iran at the end of February led to a sharp sell-off across global
markets and the Company’s NAV saw a significant reversal in March, falling
by 12.1% in the month alone, compared to a fall of 6.7% in the Benchmark
Index. Although markets subsequently recovered, with performance largely
reversing at the index level by mid-April, the volatility experienced in March
resulted in the Company’s NAV underperforming the Benchmark Index for the
six months under review (increasing by +2.4%, compared to the Benchmark Index,
which returned +4.3%). Over the same period, the Company’s share price
increased by a marginally lower +1.4% (all calculations on a US Dollar basis
with dividends reinvested).
Against a backdrop of elevated geopolitical uncertainty, performance
dispersion has increased, highlighting the importance of active asset
management and a deep understanding of both company and country-specific
fundamentals. Over the period under review, strong returns were recorded in a
range of markets, including Oman, parts of Latin America and selected EMEA
countries, supported by improving macroeconomic conditions, falling inflation
and higher commodity prices. By contrast, most Gulf markets moderated amid
regional tensions, while performance across Asia was mixed, reflecting
divergent domestic policy settings, growth trajectories and geopolitical
risks.
We believe exposure to an opportunity set within uncorrelated markets offers
strong growth potential against an ever more challenging macroeconomic
backdrop globally and continues to represent a compelling investment
opportunity. The portfolio managers’ focus on strongly performing, cash
generative companies also provides shareholders with an attractive yield. As
at 22 May 2026, the Company’s yield is 4.0 %, the highest
in our AIC Global Emerging Markets peer group.
Our portfolio managers provide a detailed description of the key contributors
to and detractors from performance during the period, portfolio activity and
their views on the outlook for the second half of the financial year in their
report which follows.
Revenue return and dividends
The Company’s revenue return per share for the six months ended 31 March
2026 amounted to 1.66 cents (six months ended 31 March 2025: 1.90 cents), a
decrease of 12.6% over the prior year interim period. This decline is somewhat
distorted by timing, as the vast majority of dividend payments from portfolio
companies are made in the second half of the year.
Nevertheless, recognising the importance of yield to shareholders, and
reflecting the portfolio managers’ confidence in the broader outlook, the
Board is pleased to declare an interim dividend of 3.85 cents per share, an
increase of 5.5% compared to the 2025 interim dividend of 3.65 cents per
share. The interim dividend is payable on 26 June 2026 to shareholders on the
Company’s register on 5 June 2026. The shares will go ex-dividend on 4 June
2026.
During the period, the final dividend of 6.35 cents per share for the year
ended 30 September 2025, which was declared on 10 December 2025, was paid to
shareholders on 26 February 2026.
Share capital
For the period under review, the Company’s ordinary shares traded at an
average discount to NAV of -2.4%. Although this widened to -5.2% on a
cum-income basis as at 31 March 2026, it has since recovered to trade at a
premium of 1.7% as at 22 May 2026. By comparison, the weighted average
discount of the AIC Global Emerging Markets peer group during the period under
review was -4.0%.
The Directors believe that it is in shareholders’ interests that the
Company’s share price does not trade at a significant or volatile discount
or premium to its underlying NAV. Accordingly, they have the authority to buy
back shares in the market equivalent to 14.99% of the Company’s issued share
capital and also to issue new shares equivalent to 10% of the Company’s
issued share capital (excluding any shares held in treasury). The Directors,
in conjunction with the Company’s broker, monitor the relationship between
the share price and NAV closely and will consider the issue of ordinary shares
at a premium or repurchase at a discount to help balance demand and supply in
the market if they believe it is in shareholders’ interests to do so. In
determining the merits, the Directors review a range of factors, including the
ongoing attractiveness of the investment offering, the prevailing market
conditions and the discount level in absolute terms and relative to that of
the peer group.
The Board has devoted significant time and effort during the period under
review to enhance the Company’s marketing strategy and improve communication
in respect of the key features of the Company’s structure and investment
strategy, including the diversification it offers against a volatile market
backdrop. The Board believes that this has contributed
to increased demand for the Company’s shares and I am pleased to report that
since the period end, as at 22 May 2026 the Company has issued 750,000 shares
from Treasury at a premium to net asset value. The Company’s assets continue
to trade at a premium, currently 1.7% (compared to a weighted average discount
for the AIC Global Emerging Markets peer group of -3.7%).
During the period under review, the Board did not consider it necessary to buy
back any shares other than via the five-yearly return of capital discussed
below.
Periodic opportunity for the return of capital
When the Company was launched in late 2010, the Board made a commitment that
before the Company’s fifth AGM and at five yearly intervals thereafter, it
would formulate and submit to shareholders proposals to provide them with an
opportunity to realise the value of their ordinary shares at the applicable
NAV per ordinary share less costs. Accordingly, in December 2025 the Company
published a Shareholder Circular in which it was proposed that all
shareholders should have the opportunity to participate in a 100% Tender
Offer. The proposals were subsequently approved at the Company’s Annual
General Meeting held on 23 February 2026. The Tender Offer closed on 19
February 2026 and implementation of the Tender Offer was approved by
shareholders at a general meeting of the Company held on 23 February 2026.
It was pleasing to see that following the Tender Offer election period, the
vast majority of the Company’s shareholders chose to retain their investment
in the Company. 13.7% of the Company’s issued shares were tendered for total
consideration of US$70.3 million, which included a marginal offset from
250,000 tendered shares which were placed in the market for proceeds of $0.7
million as part of the transaction (more details can be found in note 10
below).
We continue to believe that Frontier Markets offer significant opportunity and
I would like to thank continuing shareholders for their vote of confidence in
both the mandate and the investment managers as we move forward to the next
chapter in the life of the Company. The Directors believe that shareholders
value the five yearly exit opportunity and therefore intend to continue
enabling them to realise Ordinary Shares at NAV less costs at five yearly
intervals. The next event will take place around the time of the Company’s
AGM in 2031.
Gearing
One of the advantages of the investment trust structure is that the Company
can use gearing with the objective of increasing portfolio returns over the
longer term. The Company generated leverage in the portfolio through its
contracts for difference (CFD) exposure during the period which also provided
more liquid exposure to certain Frontier Markets. As at 31 March 2026, net
gearing stood at 5.1%, compared to 10.6% at 30 September 2025; this reduction
reflected a tactical decision to manage risk during a period of heightened
geopolitical tension, and we expect to increase gearing again as conditions
normalise and attractive opportunities present themselves.
Board composition
As at 31 March 2026, the Board consisted of five independent non-executive
Directors. As part of its succession planning, the Board regularly considers
its composition to ensure that a suitable balance of skills, knowledge,
experience, independence and diversity is achieved to enable the Board to
discharge its duties most effectively. Stephen White stepped down as a
Director and Chair of the Audit and Management Engagement Committee at the
conclusion of the AGM in February 2026, following nine years of service on the
Board. We thank Stephen for his diligence and significant contribution to the
Company and wish him well for the future. Christopher Casey, appointed as a
non-executive Director of the Company on 1 October 2025, succeeded Stephen as
Chair of the Company’s Audit and Management Engagement Committee on his
retirement.
The Board is compliant with the recommendations of the Parker Review on ethnic
diversity and the FTSE Women Leaders Review and, at the date of this report,
we have a 60:40 female to male gender ratio. In accordance with the Listing
Rules, we have also disclosed the ethnicity of the Board and our policy on
matters of diversity in our annual report.
The Board has recently engaged Stogdale St James to undertake its first
externally facilitated Board evaluation. Whilst this is not a governance
requirement, this exercise will provide an independent and objective
assessment of the Board’s effectiveness, complementing the Board’s
internal evaluation process and bringing additional insight into Board
dynamics, decision - making, processes and culture, helping
to identify areas of strength as well as opportunities for further
enhancement. It will support continuous improvement, reinforce good governance
practice and help ensure the Board remains effective, appropriately skilled
and well positioned to oversee the long - term success of
the Company. The review will be completed in advance of the year end and
relevant findings and conclusions will be set out in the Company’s annual
report.
Outlook
Subsequent to the end of the period and as at 22 May 2026, the NAV per share
of the Company of 250.25 cents has increased by 6.2%. For comparison, the
Company’s Benchmark Index has increased by 3.6%.
Looking ahead, frontier and smaller emerging markets continue to offer a
distinctive and attractive opportunity set for long-term investors, supported
by favourable structural trends, ongoing economic reform and attractive
valuations in many markets. While global growth remains uneven and multiple
geopolitical risks persist, a number of the economies in which your Company
invests are benefiting from improving macro stability, easing inflationary
pressures and strengthening external balances, which in turn are supporting
corporate earnings and investor confidence.
The asset class remains characterised by low levels of analyst coverage and
limited foreign investor participation, creating inefficiencies that our
skilled, active managers are well placed to exploit. In a number of the
markets, reform momentum, demographic tailwinds and rising domestic
consumption continue to underpin structural growth prospects, while selective
exposure to energy and commodity exporters may offer resilience in markets
that are likely to remain unpredictable for some time.
The Company’s longer term performance is indicative of the investment
opportunities offered by the Frontier Markets universe; since launch in 2010,
the Company’s NAV per share increase of 174.6% has outperformed its
Benchmark Index (which increased by 89.7%) as well as the MSCI Frontier
Markets Index (+119.8%) and the MSCI Emerging Markets Index (+81.4%).
Frontier Markets are inherently volatile and can be sensitive to shifts in
global risk appetite, currency movements and local political developments.
Against this backdrop, the portfolio managers’ skill at identifying and
exposing the portfolio to exciting and uncorrelated ideas through disciplined
stock selection, careful country allocation and a focus on balance sheet
strength is, we believe, a key competitive advantage and provides shareholders
with unique diversification benefits. An uncertain global outlook reinforces
the importance of our portfolio managers’ selective, fundamentally driven
approach, seeking to capture long-term opportunities while actively managing
near-term risks.
In addition, your Company’s closed-end structure avoids our portfolio
managers needing to sell investments at the wrong price to manage redemptions
when sentiment is weak. We therefore believe long-term shareholders will
continue to benefit from a combination of uncorrelated capital growth and a
reliable income stream. Thank you for your ongoing support.
Katrina Hart
Chair
27 May 2026
Investment Manager’s report
Market Review
The majority of the six months to 31 March 2026 was characterised by an
improving global backdrop, with easing inflation and expectations for lower
policy rates supporting a constructive environment for Emerging and Frontier
Markets. During the final month of the period, the conflict between the US and
Iran caused a significant market sell-off, although as of mid-May this has
entirely reversed at the global index level across Emerging and Frontier
Markets. Oil prices, however, have not given up their gains and remain more
than 40% above their pre-conflict levels in early February.
Against this backdrop, performance dispersion across Frontier Markets
increased - reinforcing the value of selectivity and country-specific
fundamentals, areas where we believe our approach is well placed to generate
alpha.
In terms of performance, a variety of different markets did well, with
particularly strong contributions from markets where we were meaningfully
overweight. In EMEA, Hungary (+24.0%) was a standout performer, supported by
easing inflation and renewed investor confidence in the near-term
macro-outlook. A more accommodative policy backdrop, relatively attractive
real interest rates and a firmer currency also helped support capital inflows,
while resilient banking sector profitability contributed to a broader market
re-rating. Risk sentiment has strengthened further post March, following the
recent Hungarian election which displaced Viktor Orbán after 16 years of
rule. Portfolio overweight Kazakhstan (+16.3%) also delivered strong
performance as mining stocks rose on the back of strong metal prices over the
first half of the period.
Latin American markets also performed well. Chile (+22.8%) benefited from
improved terms of trade as rising copper prices strengthened external balances
and supported domestic demand, linked in part to the global investment in
artificial intelligence (AI) infrastructure. Lower interest rates further
reinforced the positive backdrop. Colombia (+43.4%) and Peru (+36.1%) also
posted strong gains on similar dynamics. While the portfolio had some exposure
to the region via Chile, index performance over the period was boosted by a
strong rally across Latin American markets; in hindsight, greater allocation
in the portfolio, particularly to domestic commodity linked names, would have
been beneficial to returns.
Elsewhere, Kenya (+9.5%) posted positive returns as easing inflation and
interest rates, improving asset quality and strong domestic investor
participation supported a re-rating of the banking sector, with the portfolio
maintaining a long exposure to the market over the period. Similarly, Egypt
(+8.3%) was up as macro-economic stabilisation gained traction, supported by
progress under the IMF programme, easing inflation and improved confidence
around external financing. Oman (+61.0%) was the best performing market in the
index, delivering strong returns on speculation that the country could push
for MSCI Emerging Market index inclusion. By contrast, other markets in the
Gulf slowed over the period, with the UAE (-4.1%) and Qatar (-5.2%) giving
back some earlier gains amid heightened geopolitical tensions in the region
and a more cautious regional backdrop following the conflict between the US
and Iran.
Across Asia, performance was mixed. Among the larger ASEAN markets, Thailand
(+21.1%) was the top performer, supported by easing monetary policy, subdued
inflation and improving domestic sentiment, particularly in consumption linked
sectors, despite a still challenging growth outlook. Indonesia (-17.0%) was
the weakest performer, as policy uncertainty, slowing domestic consumption and
concerns around global trade fragmentation weighed on sentiment, alongside
softer commodity exports and pressure on bank margins. Bangladesh (-4.3%) also
underperformed, as growth slowed sharply amid political disruption, a tighter
policy mix and weak investment, with macro financial challenges and delayed
reforms continuing to weigh on confidence despite early signs of external
stabilisation. Pakistan (-9.4%) also lagged, as improving macro conditions
supported by IMF assistance were offset by renewed regional geopolitical
risks, leaving the recovery more fragile.
Portfolio Review
In the six months to 31 March 2026, the Company’s NAV returned +2.4% (on a
US Dollar basis with dividends reinvested), underperforming its Benchmark
Index (MSCI Frontier + Emerging ex Selected Countries Index), which returned
+4.3%. Over the same period, the MSCI Emerging Markets Index returned +4.6%
and the MSCI Frontier Markets Index returned +5.6%. Since inception, the
Company’s NAV has returned +174.6%, outperforming its Benchmark Index, which
has returned +89.7%. For reference, the MSCI Frontier Markets Index and the
MSCI Emerging Markets Index have returned +119.8% and +81.4%, respectively
(all percentages in US Dollar terms with dividends reinvested).
Stocks which contributed to performance were from a diverse set of markets.
Kazakhstan-based Kazatomprom (+46.6%)
was the best performing stock over the period, on the back of rising uranium
prices in early 2026. Halyk Savings Bank
(+24.5%) in Kazakhstan also surged post reporting strong 2025 results, with
its share price reaching an all-time high. Despite this, the valuation of the
bank remains below 4 times price-earnings multiple on our estimates. Saudi
fintech Rasan (+29.0%) also
contributed as insurance penetration continued to grow across the country.
Elsewhere, Argentina’s state-controlled oil and gas company
YPF Sociedad Anonima (+18.0%) rose sharply in March
after a US appeals court overturned a US$16 billion nationalisation ruling,
easing sovereign debt concerns and improving investor sentiment. Kenyan banks
Kenya Commercial Bank (+18.2%) and
Equity Group (+18.0%) also rallied as
easing policy rates, improving asset quality and robust domestic investor
participation supported a re-rating of the banking sector.
OTP Bank (+22.1%) also rose following analyst upgrades in
the latter part of 2025.
On the flipside, Pakistan based conglomerate Lucky Cement
(-24.4%) detracted as it fell on the Iranian conflict amid
profit taking and broad based market selling reflecting concerns related to
higher oil prices. This came after a very strong period of performance, with
the stock having been a significant contributor last year. Saudi Arabia’s
digital investment platform Derayah Financial
(-29.8%) also fell amid profit-taking after earlier gains in the Saudi
market, though we remain constructive on its long-term growth potential.
Philippines-based online gaming company Digiplus
Interactive Corp. (-37.2%) declined sharply in December
last year following changes in the regulatory environment over the previous
summer. Egyptian financial services firm EFG Holding
(-23.3%) and Bank of the Philippine
Islands (-18.8%) also detracted from performance.
We made some changes to the portfolio over the six-month period. We initiated
a position in electronic payments network Fawry for
Banking Technology and Electronic Payments in Egypt in
October last year to capture structural tailwinds from digital banking growth,
but subsequently de-risked the position following geopolitical escalations
that disrupted global payments. We continue to hold the stock, as we see
longer-term upside from the ongoing formalisation of payments, supported by
potential licensing opportunities and backing from state linked banks. We also
participated in the IPO of Optasia ,
an African digital microlender, reflecting confidence in its ability to
sustain strong loan growth. In Saudi Arabia, we added to oil and drilling
company ADES Holdings following its
merger with Shelf Drilling, as we expect cost of debt synergies and an
improving cash generation profile.
Elsewhere, we rotated from Bank of Georgia
into TBC Bank Group , where we
are excited by its potential for growth in Uzbekistan, and topped up
Halyk Savings Bank which has an attractive
dividend yield and strong 2025 results. In Poland, we selectively added to
banks on weakness given compelling valuations, before later trimming
PKO Bank Polski , exiting
LPP after strong performance and selling the low-cost
carrier Wizz Air amid ongoing cost
pressures and operational challenges. In January, we
re-initiated YPF Sociedad Anonima in
Argentina, where the shift towards shale offers attractive value at current
oil prices, which have since risen following Middle East tensions, with
further upside should prices remain elevated.
We initiated Bank of the Philippine Islands
, where a shift toward faster growing consumer lending supports
structurally higher net interest margins, offsetting pressure from rate cuts.
We exited Ayala on concerns around
persistent oversupply in Philippine real estate and structurally low return
prospects. We also exited Frontken , a
Malaysia-based company specialising in providing services to the semiconductor
industry, after a strong run and ahead of potential dilution from warrant
expiry. Elsewhere, we trimmed BRAC Bank
, OTP Bank ,
Kazatomprom , and reduced exposure to
Lucky Cement in Pakistan to lock in gains following strong
performance in the last quarter of 2025.
From the Road
In a period marked by heightened geopolitical uncertainty and increased
dispersion across Emerging and Frontier Markets, on the ground engagement
remains a critical part of our investment process. Travelling and meeting
companies directly allows us to gauge local sentiment, policy dynamics and how
businesses are adapting to a shifting global environment. Over the past six
months, we visited a number of countries across our investment universe, with
these trips providing valuable insights that help inform our investment
decisions and support long-term alpha generation.
From our trip to Saudi Arabia, we saw increasing centralisation of economic
activity in Riyadh, with fewer businesses thriving outside the capital. Whilst
the country’s transformation remains significant, both from a social and
financial perspective, the aforementioned trends underpin our expectation of a
slowdown in ‘mega projects’ over the coming years. Housing dynamics are
distorted by a five-year rent freeze, luxury-focused builds and declining
rents in some areas. In our view, opportunities persist in entertainment,
select developers and data centre plays, which could benefit from AI-driven
government spending. Risks remain in hospitals and cement amid overcapacity
and weak demand. We see pockets of opportunity in this market on a stock
specific basis. More recently, elevated Middle East tensions and higher oil
prices could provide an additional near-term tailwind for Saudi Arabia, given
its status as a major energy exporter and its access to Red Sea export routes.
A recent trip to Egypt left us with a constructive outlook on the country.
Tourism continues to strengthen, aided by capacity additions, while
remittances remain robust and the current account deficit has moderated
somewhat. We also observed early signs of a pickup in credit growth,
particularly in the underpenetrated financial sector. Although real interest
rates remain elevated, scope for easing as inflation moderates should further
support domestic demand and financial activity. That said, Egypt remains more
exposed to a sustained period of higher oil prices, given its reliance on
energy imports, which could place some strain on the current account if
elevated prices persist.
Our trip to Peru also left us more constructive on the economic outlook, with
a supportive macro backdrop and improving domestic growth drivers. Inflation
is largely under control, which has allowed the central bank to keep interest
rates at 4.25%. On the real economy side, the mining cycle in Peru is showing
early signs of re-acceleration. The government has flagged eight mining
projects scheduled to move into execution in 2026 (around US$7.6bn of
investment), which should support jobs, domestic demand and downstream
services. Peru’s payments ecosystem continues to formalise, with digital
wallets (notably Quick Response (QR) based and instant transfers) now
accounting for over half of cashless transactions in recent research by
BlackRock Investment Stewardship, supporting a longer run tailwind for deeper
financial penetration.
Outlook
Recent market conditions have reinforced our view that accelerating
geopolitical polarisation is reshaping global investment flows, increasing
competition among the world’s largest economies while creating new
opportunities across a range of sectors, industries and geographies within our
investment universe. Whilst this environment is likely to generate periods of
volatility, we believe it also rewards patience and discipline, particularly
in markets outside the core of global portfolios, where staying invested
through the cycle is often key to capturing long-term value.
We continue to believe that frontier and smaller emerging markets, which
remain underrepresented in global indices, offer attractive alpha potential.
In an environment characterised by elevated uncertainty and episodic risk off
moves, this creates an opportunity not only to enhance returns but also to
diversify risk and reduce overall portfolio volatility.
Looking ahead, we expect frontier and smaller emerging markets to continue
operating on distinct and asynchronous cycles, shaped primarily by domestic
policy choices, local liquidity conditions and internal demand dynamics rather
than global growth alone.
Whilst geopolitical developments, particularly in the Middle East, remain an
important consideration, we continue to view global energy markets as
structurally well supplied, suggesting that geopolitical developments are more
likely to result in short lived price volatility rather than a sustained
re-rating.
In summary, we remain constructive on the outlook for frontier and smaller
emerging markets. With inflation easing across many of our core markets and US
bond yields relatively stable, we believe the conditions are in place for a
cyclical recovery in domestically driven economies and for continued
generation of high conviction, alpha driven opportunities.
Sam Vecht and Emily Fletcher
BlackRock Investment Management (UK) Limited
27 May 2026
Ten largest investments 1
as at 31 March 2026
Together, the Company’s ten largest investments represented 39.7% of the
Company’s portfolio as at 31 March 2026 (30 September 2025: 37.4%)
1 SC Kaspi (2025: 34th)
Financials (Kazakhstan)
Portfolio value: US$19,080,000
Percentage of net assets: 4.9% (2025: 1.8%)
JSC Kaspi provides payments, marketplace, and fintech solutions for consumers
and merchants in Kazakhstan, Azerbaijan, and Ukraine.
2 Commercial International Bank
2 (2025: 3
2nd)
Financials (Egypt)
Portfolio value: US$17,102,000
Percentage of net assets: 4.4% (2025: 1.9%)
Commercial International Bank provides retail, corporate, and investment
banking services in Egypt. It is one of the largest banks in the Egyptian
private sector.
3 Bank Pekao (2025: n/a)
Financials (Poland)
Portfolio value: US$16,799,000
Percentage of net assets: 4.3% (2025: n/a)
Bank Pekao provides banking products and services to retail and corporate
clients in Poland. It operates through Retail Banking and Private Banking;
Enterprise Banking; and Corporate and Investment Banking segments.
4 Halyk Savings Bank (2025:
27th)
Financials (Kazakhstan)
Portfolio value: US$16,640,000
Percentage of net assets: 4.3% (2025: 2.0%)
Halyk Savings Bank is a commercial savings bank in Kazakhstan that also has
branches in Kyrgyzstan, Georgia, Russia, Tajikistan and Uzbekistan.
5 Etihad Etisalat
2 (2025: 6th)
Communication Services (Saudi Arabia)
Portfolio value: US$15,832,000
Percentage of net assets: 4.1% (2025: 3.7%)
Etihad Etisalat is also known as Mobily and is a Saudi Arabia-based
telecommunications operator. The company manages, installs, and operates
telephone networks, terminals and telecommunication unit systems. It also
sells and maintains mobile phones and telecommunication units in Saudi Arabia.
6 TBC Bank Group
2 (2025: 31st)
Financials (Georgia)
Portfolio value: US$14,919,000
Percentage of net assets: 3.9% (2025: 1.9%)
TBC Bank Group operates across retail, corporate and MSME segments, providing
banking, leasing, insurance, brokerage, and card processing services to
corporate and individual customers in Georgia, Azerbaijan, and Uzbekistan.
7 OTP Bank (2025: 4th)
Financials (Hungary)
Portfolio value: US$13,802,000
Percentage of net assets: 3.6% (2025: 3.9%)
OTP Bank is a leading financial institution in Hungary, providing a wide range
of retail, private, and commercial banking services. The bank offers savings
and current accounts, personal and corporate loans, credit and debit cards and
investment products. OTP Bank is known for its innovative digital banking
solutions and extensive network of branches and ATMs across Hungary.
8 Bank Mandiri (2025: 3rd)
Financials (Indonesia)
Portfolio value: US$13,635,000
Percentage of net assets: 3.5% (2025: 3.9%)
Bank Mandiri is one of the largest banks in Indonesia, offering a wide range
of financial services including retail, corporate, and investment banking.
9 YPF Sociedad Anónima
(2025: n/a )
Energy (Argentina)
Portfolio value: US$13,287,000
Percentage of net assets: 3.4% (2025: n/a)
YPF Sociedad Anónima engages in oil and gas upstream and downstream
activities in South America and Argentina. It is involved in the exploration
and exploitation of hydrocarbon fields and production of crude oil and natural
gas, refined products, crude oil and agribusiness industry.
10 Equity Group (2025:
21st)
Financials (Kenya)
Portfolio value: US$12,798,000
Percentage of net assets: 3.3% (2025: 2.3%)
Equity Group is the largest financial services conglomerate in East and
Central Africa headquartered in Nairobi, Kenya, offering retail banking,
insurance, and investment services to over 15 million customers. It is the
largest bank in the region by assets and operates subsidiaries in Kenya,
Uganda, Tanzania, Rwanda, South Sudan, and the Democratic Republic of Congo.
1 Gross market exposure as a % of net assets.
2 Exposure gained via contracts for difference (CFDs)
only.
The market value shown is the gross exposure to the shares through equity
investments and long derivative positions. For equity investments, the market
value is the fair value of the shares. For long derivative positions, it is
the market value of the underlying shares to which the portfolio is exposed
via the contract.
Percentages in brackets represent the portfolio holding as at 30 September
2025.
Portfolio analysis
Country allocation: Absolute weights (Gross market exposure as a % of net
assets) 1
31 March 2026
Saudi Arabia 14.40%
United Arab Emirates 12.10%
Kazakhstan 11.30%
Egypt 8.50%
Indonesia 7.40%
Poland 7.30%
Thailand 5.20%
Kenya 4.80%
Greece 4.40%
Vietnam 4.40%
Philippines 4.20%
Pakistan 3.90%
Georgia 3.90%
Bangladesh 3.70%
Hungary 3.60%
Argentina 3.40%
Turkey 2.50%
Global 1.50%
Chile 1.30%
Nigeria 0.50%
30 September 2025
Saudi Arabia 16.00%
United Arab Emirates 11.30%
Turkey 10.60%
Poland 9.50%
Indonesia 6.90%
Greece 6.80%
Kazakhstan 6.10%
Thailand 6.00%
Pakistan 5.90%
Hungary 5.60%
Vietnam 4.60%
Kenya 4.20%
Georgia 4.10%
Bangladesh 3.80%
Philippines 3.40%
Global 2.70%
Malaysia 2.30%
Egypt 1.90%
Chile 1.40%
Czech Republic 0.90%
Country allocation relative to the Benchmark Index (%)
1
as at 31 March 2026
Kazakhstan 10.4%
Egypt 8.0%
Kenya 4.3%
Georgia 3.9%
Bangladesh 3.5%
Argentina 3.4%
United Arab Emirates 3.3%
Pakistan 3.3%
Philippines 1.8%
Global 1.5%
Hungary 1.4%
Indonesia 1.4%
Greece 1.1%
Vietnam 0.8%
Nigeria 0.5%
Sri Lanka -0.1%
Mauritius -0.1%
Lithuania -0.1%
Estonia -0.1%
Tunisia -0.2%
Bahrain -0.2%
Jordan -0.3%
Poland -0.3%
Croatia -0.4%
Turkey -0.6%
Other -0.8%
Slovenia -0.8%
Oman -0.8%
Czech Republic -0.9%
Colombia -1.2%
Morocco -1.4%
Romania -1.6%
Chile -2.3%
Thailand -2.4%
Peru -2.9%
Qatar -4.0%
Kuwait -4.4%
Saudi Arabia -6.2%
Malaysia -8.2%
Sector allocation: Absolute weights (Gross market exposure as a % of net
assets) 1
31 March 2026
Financials 52.70%
Energy 10.80%
Communication Services 10.00%
Consumer Discretionary 7.70%
Real Estate 7.30%
Industrials 4.70%
Materials 4.70%
Consumer Staples 4.10%
Information Technology 2.30%
Health Care 2.20%
Utilities 1.80%
30 September 2025
Financials 49.90%
Real Estate 11.00%
Consumer Discretionary 10.50%
Industrials 8.60%
Materials 8.10%
Communication Services 8.00%
Information Technology 4.90%
Consumer Staples 4.30%
Health Care 4.30%
Energy 3.50%
Utilities 0.90%
Sector allocation relative to the Benchmark Index (%)
1
as at 31 March 2026
Financials 5.9%
Consumer Discretionary 4.6%
Communication Services 2.8%
Real Estate 2.4%
Energy 1.6%
Consumer Staples 0.2%
Information Technology 0.0%
Health Care -0.2%
Industrials -1.4%
Utilities -3.2%
Materials -4.4%
1 Includes exposure gained through equity positions and
long and short CFD positions.
Sources: BlackRock and LSEG Datastream.
Investments
as at 31 March 2026
Equity portfolio by country of exposure
Company Principal country of operation Sector Fair value 1 US$’000 Gross market exposure as a % of net assets 2
Emaar Properties United Arab Emirates Real Estate 11,444 3.0
Dana Gas United Arab Emirates Energy 8,783 2.3
Emirate Integrated United Arab Emirates Communication Services 8,727 2.3
Air Arabia United Arab Emirates Industrials 8,212 2.1
Emaar Development United Arab Emirates Real Estate 6,638 1.7
Aldar Properties United Arab Emirates Real Estate 2,508 0.7
---------- ----------
46,312 12.1
---------- ----------
JSC Kaspi Kazakhstan Financials 19,080 4.9
Halyk Savings Bank Kazakhstan Financials 16,640 4.3
Kazatomprom Kazakhstan Energy 8,120 2.1
---------- ----------
43,840 11.3
---------- ----------
Bank Mandiri Indonesia Financials 13,635 3.5
Perusahaan Gas Negara Indonesia Utilities 7,028 1.8
Mitra Adiperkasa Indonesia Consumer Discretionary 4,842 1.3
Ciputra Development Indonesia Real Estate 3,190 0.8
---------- ----------
28,695 7.4
---------- ----------
Bank Pekao Poland Financials 16,799 4.3
PKO Bank Polski Poland Financials 7,200 1.9
---------- ----------
23,999 6.2
---------- ----------
CP All Thailand Consumer Staples 10,592 2.8
True Corporation Thailand Communication Services 4,994 1.3
AMATA Corporation Thailand Real Estate 4,434 1.1
---------- ----------
20,020 5.2
---------- ----------
Fawry for Banking Technology and Electronic Payments Egypt Financials 6,903 1.8
EFG Holding Egypt Financials 4,752 1.2
GB Auto Egypt Consumer Discretionary 4,283 1.1
Commercial International Bank Egypt Financials 3,890 1.0
---------- ----------
19,828 5.1
---------- ----------
Equity Group Kenya Financials 12,798 3.3
Kenya Commercial Bank Kenya Financials 5,736 1.5
---------- ----------
18,534 4.8
---------- ----------
Athens International Airport* Greece Industrials 9,965 2.6
Hellenic Telecommunications Organisation* Greece Communication Services 6,821 1.8
---------- ----------
16,786 4.4
---------- ----------
DigiPlus Interactive Corp Philippines Consumer Discretionary 8,151 2.1
Bank of the Philippine Islands Philippines Financials 7,943 2.1
---------- ----------
16,094 4.2
---------- ----------
MCB Bank Pakistan Financials 7,509 2.0
Lucky Cement Pakistan Materials 7,503 1.9
---------- ----------
15,012 3.9
---------- ----------
BRAC Bank Bangladesh Financials 8,107 2.1
Square Pharmaceuticals Bangladesh Health Care 6,276 1.6
---------- ----------
14,383 3.7
---------- ----------
OTP Bank Hungary Financials 13,802 3.6
---------- ----------
13,802 3.6
---------- ----------
YPF Sociedad Anónima Argentina Energy 13,287 3.4
---------- ----------
13,287 3.4
---------- ----------
Yanbu National Petrochemical Company Saudi Arabia Materials 8,455 2.2
---------- ----------
8,455 2.2
---------- ----------
Akbank Turkey Financials 2,599 0.7
MLP Saglik Hizmetleri AS Turkey Health Care 2,352 0.6
Eldorado Gold Turkey Materials 2,122 0.6
---------- ----------
7,073 1.9
---------- ----------
Optasia Global Financials 5,862 1.5
---------- ----------
5,862 1.5
---------- ----------
Cervecerias Uni-Spon Chile Consumer Staples 3,085 0.8
Cervecerias Unidas Chile Consumer Staples 2,082 0.5
---------- ----------
5,167 1.3
---------- ----------
Mobile World Investment Corporation Vietnam Consumer Discretionary – 0.0
– 0.0
---------- ----------
Equity investments 317,149 82.2
---------- ----------
BlackRock’s Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund (Cash Fund) # 56,190 14.6
---------- ----------
Total equity investments (including Cash Fund) 373,339 96.8
====== ======
* Euro currency exposure.
See notes on page 19 of the half yearly report and financial statements.
CFD portfolio by country of exposure
Company Principal country of Sector Fair value 1 Gross market exposure 2 Gross market exposure as a % of net assets 2
operation US$’000 US$’000
Long positions
Etihad Etisalat Saudi Arabia Communication Services 15,832 4.1
Al Rajhi Bank Saudi Arabia Financials 11,874 3.1
ADES Holdings Saudi Arabia Energy 11,651 3.0
Derayah Financial Saudi Arabia Financials 7,672 2.0
------------ ------------
47,029 12.2
------------ ------------
Mobile World Investment Corporation Vietnam Consumer Discretionary 12,478 3.2
FPT Vietnam Information Technology 4,727 1.2
------------ ------------
17,205 4.4
------------ ------------
TBC Bank Group Georgia Financials 14,919 3.9
------------ ------------
14,919 3.9
------------ ------------
Commercial International Bank Egypt Financials 13,212 3.4
------------ ------------
13,212 3.4
------------ ------------
Akbank Turkey Financials 2,140 0.6
------------ ------------
2,140 0.6
------------ ------------
Total long CFD positions 2,429 94,505 24.5
------------ ------------ ------------
Total short CFD positions (1,264) (6,189) (1.6)
------------ ------------ ------------
Total CFD portfolio 1,165 88,316 22.9
======= ======= =======
See notes on page 19 of the half yearly report and financial statements.
Fair value and gross market exposure of investments
as at 31 March 2026
Fair value 1 Gross market exposure 2,3 Gross market exposure as
a % of net assets 3
Portfolio US$’000 US$’000 31 March 2026 31 March 2025 30 September 2025
Long equity investment positions (excluding BlackRock’s Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund) 317,149 317,149 82.2 95.9 89.8
Long CFD positions 2,429 94,505 24.5 22.7 22.5
Short CFD positions (1,264) (6,189) (1.6) (4.3) (1.7)
------------ ------------ ------------ ------------ ------------
Subtotal of long and short investment positions 318,314 405,465 105.1 114.3 110.6
------------ ------------ ------------ ------------ ------------
Cash Fund 56,190 56,190 14.6 5.2 11.9
------------ ------------ ------------ ------------ ------------
Total investment and derivatives 374,504 461,655 119.7 119.5 122.5
------------ ------------ ------------ ------------ ------------
Cash and cash equivalents including bank overdraft 2,270 (84,881) (22.0) (18.1) (19.7)
Other net current liabilities 8,968 8,968 2.3 (1.4) (2.8)
Non-current liabilities (19) (19) 0.0 0.0 0.0
------------ ------------ ------------ ------------ ------------
Net assets 385,723 385,723 100.0 100.0 100.0
======= ======= ======= ======= =======
The nature of the Company’s portfolio and the fact the Company gains
significant exposure to a number of markets through long and short CFDs means
that the Company will aim to hold a level of cash (or an equivalent holding in
a Cash Fund) on its balance sheet, representing the difference between the
notional cost of purchasing or selling the investments directly and the lower
initial cost of making a collateral payment on the long or short CFD contract.
The Company was geared through the use of long and short CFD positions and
gross and net gearing as at 31 March 2026 was 8.3% and 5.1%, respectively (31
March 2025: 22.8% and 14.3% respectively; 30 September 2025: 13.9% and 10.6%,
respectively). Gross and net gearing are Alternative Performance Measures, see
Glossary in the half yearly report and financial statements.
1 Fair value is determined as follows:
Long equity investment positions are valued at
bid prices where available, otherwise at latest market traded quoted prices.
The exposure to securities held through long CFD
positions directly in the market would have amounted to US$92,076,000 at the
time of purchase, and subsequent movements in market prices have resulted in
unrealised gains on the long CFD positions of US$2,429,000, resulting in the
value of the total long CFD market exposure to the underlying securities
increasing to US$94,505,000 as at 31 March 2026. If the long positions had
been closed on 31 March 2026, this would have resulted in a gain of
US$2,429,000 for the Company.
The notional exposure of selling the securities
via the short CFD positions would have been US$4,925,000 at the time of
entering into the contracts, and subsequent movements in market prices have
resulted in unrealised losses on the short CFD positions of US$1,264,000,
resulting in the value of the total short CFD market exposure of these
investments increasing to US$6,189,000 at 31 March 2026. If the short
positions had been closed on 31 March 2026, this would have resulted in a loss
of US$1,264,000 for the Company.
2 Gross market exposure for equity investments is the
same as fair value; bid prices are used where available and, if unavailable,
latest market traded quoted prices are used. For both long and short CFD
positions, the gross market exposure is the market value of the underlying
shares to which the portfolio is exposed via the contract.
3 The gross market exposure column for cash and cash
equivalents has been adjusted to assume the Company traded direct holdings
rather than gaining exposure through long and short CFDs.
Interim management report and responsibility statement
The Chair’s Statement and the Investment Manager’s Report above give
details of the important events which occurred during the period and their
impact on the financial statements.
Principal risks and uncertainties
A detailed explanation of the risks relating to the Company can be divided
into various areas as follows:
- Investment Performance Risk;
- Income/Dividend Risk;
- Legal and Regulatory Risk;
- Counterparty Risk;
- Operational Risk;
- Political Risk;
- Financial Risk; and
- Market Risk.
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Financial Statements for the year ended 30
September 2025. A detailed explanation can be found in the Strategic Report on
pages 36 to 48 and in note 17 on pages 106
to 117 of the Annual Report and Financial Statements,
which are available on the Company’s website at:
www.blackrock.com/uk/brfi .
In the view of the Board, developments in the global macroeconomic and
geopolitical environment since the year end have continued to influence the
nature and assessment of the Company’s principal risks. The Board remains
mindful of heightened geopolitical and political uncertainty arising from
ongoing international conflicts, including military conflict in the Middle
East, disruption to the Strait of Hormuz and key global shipping routes, and
the continuation of the war in Ukraine, as well as evolving global trade
policy and its impact on key markets in which the Company invests. In light of
these developments, the Board continues to monitor geopolitical risk as a
standalone principal risk, recognising its potential to exacerbate market
volatility, disrupt economic activity and impact investor confidence. The
Company has no exposure to Russia, Ukraine, Iran or Israel. The Board and the
Investment Manager continue to monitor investment performance in line with the
Company’s investment objectives.
In the view of the Board, other than those noted above, there have not been
any material changes to the fundamental nature of these risks since the
previous report and these principal risks and uncertainties, as summarised,
are equally applicable to the remaining six months of the financial year as
they were to the six months under review.
Going concern
The Directors, having considered the nature and liquidity of the portfolio,
the Company’s investment objective and the Company’s projected income and
expenditure, are satisfied that the Company has adequate resources to continue
in operational existence for the period to 31 May 2027, being a period of at
least twelve months from the date of approval of the financial statements, and
therefore consider the going concern assumption to be appropriate.
When the Company was launched in late 2010, the Board made a commitment that
before the Company’s fifth AGM and at five yearly intervals thereafter, it
would formulate and submit to shareholders proposals to provide them with an
opportunity to realise the value of their ordinary shares at the prevailing
NAV per ordinary share less applicable costs. The most recent exit event
occurred in February 2026, at which time the Company received elections to
tender representing 13.7% of the shares in issue, with the vast majority of
shareholders choosing to retain their investment. The next such exit
opportunity is not expected until 2031. The Board has considered the
Company’s projected performance, its discount, the make up of the share
register, and the unique and attractive nature of its offering.
Based on the above, the Board is satisfied that it is appropriate to continue
to adopt the going concern basis in preparing the financial statements. The
Company has a portfolio of investments which are considered to be readily
realisable and is able to meet all of its liabilities from its assets and
income generated from them. Ongoing charges (excluding performance fees,
finance costs, direct transaction costs, custody transaction charges, VAT
recovered, taxation, prior year expenses written back and certain
non-recurring items) were approximately 1.42% of average daily net assets for
the year ended 30 September 2025.
Related party disclosures and transactions with the AIFM and Investment
Manager
BlackRock Fund Managers Limited (BFM) is the Company’s Alternative
Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM has (with the
Company’s consent) delegated certain portfolio and risk management services,
and other ancillary services to BlackRock Investment Management (UK) Limited
(BIM (UK)). Both BFM and BIM (UK) are regarded as related parties under the
Listing Rules. Details of the management and performance fees payable are set
out in note 4 and note 14 below. The related party transactions with the
Directors are set out in note 13 below.
Directors’ Responsibility Statement
The Disclosure Guidance and Transparency Rules (DTR) of the UK Listing
Authority require the Directors to confirm their responsibilities in relation
to the preparation and publication of the Interim Management Report and
Financial Statements.
The Directors confirm to the best of their knowledge that:
- the condensed set of financial statements contained
within the Half Yearly Financial Report has been prepared in accordance with
the UK-adopted International Accounting Standard 34 – Interim Financial
Reporting; and
- the Interim Management Report, together with the
Chair’s Statement and Investment Manager’s Report, includes a fair review
of the information required by 4.2.7R and 4.2.8R of the Financial Conduct
Authority (FCA) Disclosure Guidance and Transparency Rules.
The Half Yearly Financial Report has been reviewed by the Company’s
Auditors.
The Half Yearly Financial Report was approved by the Board on 27 May 2026 and
the above Responsibility Statement was signed on its behalf by the Chair.
Katrina Hart
For and on behalf of the Board
27 May 2026
Statement of comprehensive income
for the six months ended 31 March 2026
Six months ended 31 March 2026 (unaudited) Six months ended Year ended 30 September 2025 (audited)
31 March 2025 (unaudited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
Notes US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Income from investments held at fair value through profit or loss 3 3,922 63 3,985 4,937 – 4,937 19,995 305 20,300
Net income from derivatives 3 1,087 – 1,087 146 – 146 4,041 – 4,041
Other income 3 87 – 87 67 – 67 131 – 131
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total income 5,096 63 5,159 5,150 – 5,150 24,167 305 24,472
Net profit on investments held at fair value through profit or loss – 25,054 25,054 – 5,292 5,292 – 49,852 49,852
Net loss on foreign exchange - (25) (25) – (172) (172) – (93) (93)
Net loss from derivatives – (4,624) (4,624) – (4,296) (4,296) – (1,577) (1,577)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total income and net profit on investments 5,096 20,468 25,564 5,150 824 5,974 24,167 48,487 72,654
Expenses
Investment management and performance fees 4 (501) (3,031) (3,532) (439) (3,382) (3,821) (904) (9,598) (10,502)
Other operating expenses 5 (896) (37) (933) (556) (49) (605) (1,317) (71) (1,388)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Total operating expenses (1,397) (3,068) (4,465) (995) (3,431) (4,426) (2,221) (9,669) (11,890)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net profit/(loss) before finance costs and taxation 3,699 17,400 21,099 4,155 (2,607) 1,548 21,946 38,818 60,764
Finance costs 6 (14) (58) (72) (5) (21) (26) (12) (50) (62)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Net profit/(loss) before taxation 3,685 17,342 21,027 4,150 (2,628) 1,522 21,934 38,768 60,702
Taxation (charge)/credit 7 (624) 192 (432) (559) (43) (602) (2,729) 894 (1,835)
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Profit/(loss) for the period/year 3,061 17,534 20,595 3,591 (2,671) 920 19,205 39,662 58,867
--------- --------- --------- --------- --------- --------- --------- --------- ---------
Earnings/(loss) per ordinary share (cents) 9 1.66 9.51 11.17 1.90 (1.41) 0.49 10.15 20.95 31.10
====== ====== ====== ====== ====== ====== ====== ====== ======
The total columns of this statement represent the Company’s Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards (IAS). The supplementary revenue and capital accounts are
both prepared under guidance published by the Association of Investment
Companies (AIC). All items in the above statement derive from continuing
operations. No operations were acquired or discontinued during the period. All
income is attributable to the equity holders of the Company.
The Company does not have any other comprehensive income (31 March 2025:
US$nil; 30 September 2025: US$nil). The net profit/(loss) for the period
disclosed above represents the Company’s total comprehensive income.
Statement of changes in equity
for the six months ended 31 March 2026
Called up share capital Capital redemption reserve Special reserve Capital reserves Revenue reserve Total
Note US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
For the six months ended 31 March 2026 (unaudited)
At 30 September 2025 2,418 5,798 308,697 115,479 14,346 446,738
Total comprehensive income:
Net profit for the period – – – 17,534 3,061 20,595
Transactions with owners, recorded directly to equity:
Ordinary shares reissued from treasury – – 675 – – 675
Ordinary shares repurchased into treasury – – (69,878) – – (69,878)
Share repurchase costs – – (388) – – (388)
Dividends paid 1 8 – – – – (12,019) (12,019)
---------- ---------- ---------- ---------- ---------- ----------
At 31 March 2026 2,418 5,798 239,106 133,013 5,388 385,723
====== ====== ====== ====== ====== ======
For the six months ended 31 March 2025 (unaudited)
At 30 September 2024 2,418 5,798 308,804 75,817 13,406 406,243
Total comprehensive (loss)/income:
Net (loss)/profit for the period – – – (2,671) 3,591 920
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (106) – – (106)
Share repurchase costs – – (1) – – (1)
Dividends paid 2 8 – – – – (11,356) (11,356)
---------- ---------- ---------- ---------- ---------- ----------
At 31 March 2025 2,418 5,798 308,697 73,146 5,641 395,700
====== ====== ====== ====== ====== ======
For the year ended 30 September 2025 (audited)
At 30 September 2024 2,418 5,798 308,804 75,817 13,406 406,243
Total comprehensive income:
Net profit for the year – – – 39,662 19,205 58,867
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (106) – – (106)
Share repurchase costs – – (1) – – (1)
Dividends paid 3 8 – – – – (18,265) (18,265)
---------- ---------- ---------- ---------- ---------- ----------
At 30 September 2025 2,418 5,798 308,697 115,479 14,346 446,738
====== ====== ====== ====== ====== ======
1 Final dividend of 6.35 cents per share for the year
ended 30 September 2025, declared on 10 December 2025 and paid on 26 February
2026.
2 Final dividend of 6.00 cents per share for the year
ended 30 September 2024, declared on 5 December 2024 and paid on 14 February
2025.
3 Final dividend of 6.00 cents per share for the year
ended 30 September 2024, declared on 5 December 2024 and paid on 14 February
2025 and an interim dividend of 3.65 cents per share for the year ended 30
September 2025, declared on 29 May 2025 and paid on 24 June 2025.
For information on the Company’s distributable reserves, please refer to
note 11 below.
Statement of financial position
as at 31 March 2026
31 March 31 March 30 September
2026 2025 (unaudited) 2025 (audited)
(unaudited)
Notes US$’000 US$’000 US$’000
Non current assets
Investments held at fair value through profit or loss 12 373,339 400,153 454,153
Current assets
Current taxation asset 397 713 734
Other receivables 15,124 2,492 3,837
Derivative financial assets held at fair value through profit or loss – contracts for difference 12 2,429 1,244 5,872
Cash and cash equivalents – cash at bank 2,271 1,591 745
Cash collateral pledged with brokers 6,589 3,952 940
----------- ----------- -----------
Total current assets 26,810 9,992 12,128
----------- ----------- -----------
Total assets 400,149 410,145 466,281
====== ====== ======
Current liabilities
Other payables (13,142) (11,941) (14,400)
Derivative financial liabilities held at fair value through profit or loss – contracts for difference 12 (1,264) (1,765) (1,509)
Cash and cash equivalents – bank overdraft (1) – –
Liability for cash collateral received – (720) (3,615)
----------- ----------- -----------
Total current liabilities (14,407) (14,426) (19,524)
----------- ----------- -----------
Total assets less current liabilities 385,742 395,719 446,757
----------- ----------- -----------
Non current liabilities
Management shares of £1.00 each (one quarter paid up) (19) (19) (19)
----------- ----------- -----------
Net assets 385,723 395,700 446,738
====== ====== ======
Equity attributable to equity holders
Called up share capital 10 2,418 2,418 2,418
Capital redemption reserve 5,798 5,798 5,798
Special reserve 239,106 308,697 308,697
Capital reserves 133,013 73,146 115,479
Revenue reserve 5,388 5,641 14,346
----------- ----------- -----------
Total equity 385,723 395,700 446,738
====== ====== ======
Net asset value per ordinary share (cents) 9 235.71 209.07 236.03
====== ====== ======
Cash flow statement
for the six months ended 31 March 2026
For the six months ended 31 March For the six months ended 31 March For the year ended 30 September
2026 (unaudited) 2025 (unaudited) 2025 (audited)
US$’000 US$’000 US$’000
Operating activities
Net profit before taxation 1 21,027 1,522 60,702
Changes in working capital items:
Decrease/(increase) in other receivables (excluding amounts due from brokers) 1,481 195 (696)
(Decrease)/increase in other payables (excluding amounts due to brokers) (6,148) 227 5,069
(Increase)/decrease in amounts due from brokers (12,768) 1,247 793
Increase/(decrease) in amounts due to brokers 4,890 (953) (3,336)
(Increase)/decrease in cash collateral pledged with brokers (5,649) (2,647) 365
(Decrease)/increase in cash collateral received from brokers (3,615) (2,180) 715
Other adjustments:
Finance costs 72 26 62
Net profit on investments held at fair value through profit or loss (25,054) (5,292) (49,852)
Net loss from derivatives 4,624 4,296 1,577
Net financing costs on derivatives (1,805) (1,683) (3,527)
Net loss on foreign exchange 25 172 93
Sales of investments held at fair value through profit or loss 285,641 85,480 192,884
Purchases of investments held at fair value through profit or loss (176,645) (115,853) (200,348)
Sales of Cash Fund 2 146,127 97,433 175,042
Purchases of Cash Fund 2 (149,255) (49,594) (159,571)
Amounts paid for losses on closure of derivatives (26,304) (15,621) (32,784)
Amounts received on profit on closure of derivatives 26,683 14,705 31,566
Taxation paid (95) (512) (1,766)
----------- ----------- -----------
Net cash inflow from operating activities 83,232 10,968 16,988
====== ====== ======
Financing activities
Interest paid (72) (26) (62)
Shares reissued from treasury 675 – –
Ordinary shares repurchased into treasury (69,878) (106) (106)
Share repurchases costs (388) (1) (1)
Dividends paid (12,019) (11,356) (18,265)
----------- ----------- -----------
Net cash outflow from financing activities (81,682) (11,489) (18,434)
====== ====== ======
Increase/(decrease) in cash and cash equivalents 1,550 (521) (1,446)
Effect of foreign exchange rate changes (25) (172) (93)
Change in cash and cash equivalents 1,525 (693) (1,539)
Cash and cash equivalents at the start of the period/year 745 2,284 2,284
----------- ----------- -----------
Cash and cash equivalents at end of the period/year 2,270 1,591 745
Comprised of:
Cash at bank 2,271 1,591 745
Bank overdraft (1) – –
----------- ----------- -----------
2,270 1,591 745
====== ====== ======
1 Dividends and interest received in cash during the
period amounted to US$4,010,000 and US$1,160,000 (31 March 2025: US$3,683,000
and US$1,195,000; 30 September 2025: US$15,653,000 and US$2,059,000).
2 Cash Fund represents investment in the BlackRock
Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund.
Notes to the financial statements
for the six months ended 31 March 2026
1. Principal activity
The principal activity of the Company is that of an investment trust company
within the meaning of Section 1158 of the Corporation Tax Act 2010.
2. Basis of preparation
The half yearly financial statements for the period ended 31 March 2026 have
been prepared in accordance with the Disclosure Guidance and Transparency
Rules sourcebook of the Financial Conduct Authority and with the UK–adopted
International Accounting Standard 34 (IAS 34), Interim Financial Reporting.
The half yearly financial statements should be read in conjunction with the
Company’s Annual Report and Financial Statements for the year ended 30
September 2025, which have been prepared in accordance with UK–adopted
International Accounting Standards (IAS).
Insofar as the Statement of Recommended Practice (SORP) for investment trust
companies and venture capital trusts, issued by the Association of Investment
Companies (AIC) in October 2019 and updated in July 2022, is compatible with
UK–adopted IAS, the financial statements have been prepared in accordance
with the guidance set out in the SORP.
The Directors, having considered the nature and liquidity of the portfolio,
the Company’s investment objective and the Company’s projected income and
expenditure, are satisfied that the Company has adequate resources to continue
in operational existence for the period to 31 May 2027 being a period of at
least twelve months from the date of approval of the financial statements, and
therefore consider the going concern assumption to be appropriate.
3. Income
Six months ended Six months ended Year ended
31 March 2026 (unaudited) 31 March 2025 (unaudited) 30 September 2025 (audited)
US$’000 US$’000 US$’000
Investment income:
UK dividends – – 462
Overseas dividends 2,897 3,690 17,607
Overseas special dividends – 283 85
Interest from Cash Fund 1,025 964 1,841
-------- -------- --------
Total investment income 3,922 4,937 19,995
-------- -------- --------
Net income from contracts for difference 1,087 146 4,041
-------- -------- --------
Total income from derivatives 1,087 146 4,041
-------- -------- --------
Other income:
Interest received on cash collateral 22 30 69
Deposit interest 65 37 62
-------- -------- --------
Total other income 87 67 131
-------- -------- --------
Total 5,096 5,150 24,167
===== ===== =====
Dividends and interest received in cash during the period amounted to
US$4,010,000 and US$1,160,000 respectively (six months ended 31 March 2025:
US$3,683,000 and US$1,195,000; year ended 30 September 2025: US$15,653,000 and
US$2,059,000).
Special dividends from equity investments of US$63,000 have been recognised in
capital for the six months ended 31 March 2026 (six months ended 31 March
2025: US$nil; year ended 30 September 2025: US$305,000).
No special dividends from long contracts for difference have been recognised
in capital for the six months ended 31 March 2026 and included within net
income from contracts for difference in the capital account in the Statement
of Comprehensive Income (six months ended 31 March 2025: US$nil; year ended 30
September 2025: US$nil).
4. Investment management fee and performance fees
Six months ended 31 March 2026 (unaudited) Six months ended 31 March 2025 (unaudited) Year ended 30 September 2025 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Investment management fee 501 2,002 2,503 439 1,755 2,194 904 3,618 4,522
Performance fee – 1,029 1,029 – 1,627 1,627 – 5,980 5,980
------ ------ ------ ------ ------ ------ ------ ------ ------
Total 501 3,031 3,532 439 3,382 3,821 904 9,598 10,502
==== ==== ==== ==== ==== ==== ==== ==== ====
The investment management fee is levied quarterly on a tiered basis: 1.10% per
annum of the Company’s daily net asset value (NAV) up to and including
US$650 million and 1.0% per annum of the Company’s daily NAV above US$650
million.
In addition, the Manager is entitled to receive a performance fee at a rate of
10% of any increase in the NAV at the end of a performance period over and
above what would have been generated had the NAV since launch performed in
line with the Benchmark Index, which, since 1 April 2018, is a composite of
the MSCI Frontier + Emerging ex Selected Countries Index. Prior to 1 April
2018, the Benchmark Index was the MSCI Frontier Markets Index.
For the purposes of the calculation of the performance fee, the performance of
the NAV total return (including the reinvestment of dividends and before the
deduction of performance fees) since launch has been measured against the
performance of the Benchmark Index (net total return including reinvestment of
dividends net of withholding taxes) on a blended basis.
During the six months ended 31 March 2026, the Company completed a tender
offer to shareholders. The Company’s NAV had outperformed the Benchmark
Index on the tender offer date and, therefore, a crystallised performance fee
of US$1,029,000 was accrued on the tender pool. For the six months ended 31
March 2026, the Company’s NAV underperformed the Benchmark Index by 1.9%
(six months ended 31 March 2025: outperformed by 2.8%; year ended 30 September
2025: outperformed by 4.5%) resulting in a cumulative outperformance since
launch of 84.9% (31 March 2025: 73.1%; 30 September 2025: 86.2%); therefore,
no performance fee has been accrued for on the continuing pool (six months
ended 31 March 2025: US$1,627,000; year ended 30 September 2025:
US$5,980,000). Any accrued performance fee is included within other payables
in the Statement of Financial Position. Any final performance fee for the
continuing pool for the full year ended 30 September 2026 will not crystallise
and fall due until the calculation date of 30 September 2026.
The performance fee payable in any year is capped at 2.5% of the net assets of
the Company if there is an increase in the NAV per share, or 1.0% of the net
assets of the Company if there is a decrease in the NAV per share, at the end
of the relevant performance period. Any outperformance in excess of the cap
for a period may be carried forward for the next two performance periods,
subject to the then applicable annual cap. The performance fee is also subject
to a high watermark such that any performance fee is only payable to the
extent that the cumulative outperformance of the NAV relative to the Benchmark
Index is greater than what would have been achieved had the NAV increased in
line with the Benchmark Index since the last date in relation to which a
performance fee had been paid. This mechanism requires the Manager to catch up
any cumulative underperformance against the Benchmark Index since launch
before a performance fee can be earned.
The investment management fee is allocated 20% to the revenue account and 80%
to the capital account and the performance fee is wholly allocated to the
capital account of the Statement of Comprehensive Income. There is no
additional fee for company secretarial and administration services.
5. Other operating expenses
Six months ended Six months ended Year ended
31 March 2026 (unaudited) 31 March 2025 (unaudited) 30 September 2025 (audited)
US$’000 US$’000 US$’000
Allocated to revenue:
Custody fee 1 195 175 411
Auditor’s remuneration:
– audit services 47 30 65
– other assurance services 2 5 5 9
Registrar’s fee 34 16 42
Directors’ emoluments 3 131 102 257
Broker fees 25 34 61
Depositary fees 4 17 18 42
Marketing fees 238 31 157
Marketing fees - under accrual for prior periods 5 92 – –
AIC fees 17 15 29
FCA fees 15 14 29
Printing and postage fees 32 27 67
Employer NI contributions 15 9 24
Stock exchange listings 12 10 20
Legal and professional fees 10 9 20
Director search fees 3 – 29
Write back of prior year expenses 5 – (1) (1)
Other administrative costs 8 62 56
------ ------ ------
Total revenue expenses 896 556 1,317
=== === ===
Allocated to capital:
Custody transaction charges 6 37 49 71
------ ------ ------
Total capital expenses 37 49 71
------ ------ ------
Total 933 605 1,388
=== === ===
1 For the six months ended 31 March 2026, no fees were
payable in relation to investing in new markets (six months ended 31 March
2025: US$nil; year ended 30 September 2025: US$nil).
2 Fees for other assurance services of £3,550 (US$5,000)
(six months ended 31 March 2025: £3,550 (US$5,000); year ended 30 September
2025: £7,100 (US$9,000)) relate to the review of the interim financial
statements.
3 For the six months ended 31 March 2026, Directors’
emoluments amounted to £99,000 (US$131,000) (six months ended 31 March 2025:
£79,000 (US$102,000); year ended 30 September 2025: £191,000
(US$257,000) . Further information on Directors’ emoluments can be
found in the Directors’ Remuneration Report on page 66 of the Company’s
Annual Report and Financial Statements for the year ended 30 September 2025.
The Company has no employees.
4 All expenses other than depositary fees are paid in
British Pound Sterling and are therefore subject to exchange rate
fluctuations.
5 No prior year expenses have been written back during
the six months ended 31 March 2026 (six months ended 31 March 2025: write back
of miscellaneous fees; year ended 30 September 2025: write back of
miscellaneous fees). Marketing expenses under accrued for prior years of
US$92,000 have been expensed in the current period (six months ended 31 March
2025: US$nil; year ended 30 September 2025: US$nil).
6 For the six months ended 31 March 2026, expenses of
£28,000 (US$37,000) (six months ended 31 March 2025: £38,000 (US$49,000);
year ended 30 September 2025: £53,000 (US$71,000)) were
charged to the capital account of the Statement of Comprehensive Income. These
relate to transaction costs charged by the custodian on sale and purchase
trades.
The transaction costs incurred on the acquisition of investments amounted to
US$274,000 for the six months ended 31 March 2026 (six months ended 31 March
2025: US$131,000; year ended 30 September 2025: US$279,000). Costs relating to
the disposal of investments amounted to US$357,000 for the six months ended 31
March 2026 (six months ended 31 March 2025: US$229,000; year ended 30
September 2025: US$428,000). All transaction costs have been included within
the net profit on investments in the Statement of Comprehensive Income.
6. Finance costs
Six months ended 31 March 2026 (unaudited) Six months ended 31 March 2025 (unaudited) Year ended 30 September 2025 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Interest paid on bank overdraft 3 11 14 – – – – – –
Interest paid on cash collateral 11 47 58 5 21 26 12 50 62
----- ----- ----- ----- ----- ----- ----- ----- -----
Total 14 58 72 5 21 26 12 50 62
=== === === === === === === === ===
7. Taxation
Analysis of charge/(credit) for the period
Six months ended 31 March 2026 (unaudited) Six months ended 31 March 2025 (unaudited) Year ended 30 September 2025 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Current taxation:
Corporation taxation 195 (195) – 43 (43) – 940 (940) –
Overseas taxation 429 3 432 516 – 516 1,789 46 1,835
Overseas capital gains taxation – – – – 86 86 – – –
----- ----- ----- ----- ----- ----- ----- ----- -----
Total taxation charge/(credit) 624 (192) 432 559 43 602 2,729 (894) 1,835
=== === === === === === === === ===
8. Dividends
The Board has declared an interim dividend of 3.85 cents per share for the
period ended 31 March 2026 which will be paid on 26 June 2026 to shareholders
on the register at 5 June 2026 (interim dividend for the six months ended 31
March 2025: 3.65 cents per share). The total cost of the dividend based on
164,391,520 ordinary shares in issue as at 22 May 2026 was US$6,329,000 (six
months ended 31 March 2025: US$6,909,000). This dividend has not been accrued
in the financial statements for the six months ended 31 March 2026 as, under
IAS, interim dividends are not recognised until paid. Dividends are debited
directly to reserves.
9. Earnings and net asset value per ordinary share
Revenue earnings, capital earnings/(loss) and net asset value per ordinary
share are shown below and have been calculated as follows:
Six months ended Six months ended Year ended
31 March 2026 (unaudited) 31 March 2025 (unaudited) 30 September 2025 (audited)
Net revenue profit attributable to ordinary shareholders (US$’000) 3,061 3,591 19,205
Net capital profit/(loss) attributable to ordinary shareholders (US$’000) 17,534 (2,671) 39,662
---------- ---------- ----------
Total profit attributable to ordinary shareholders (US$’000) 20,595 920 58,867
====== ====== ======
Equity shareholders’ funds (US$’000) 385,723 395,700 446,738
Weighted average number of ordinary shares in issue during the period, on which the earnings per ordinary share was calculated 184,341,646 189,288,710 189,279,453
Actual number of ordinary shares in issue at the period-end on which the net asset value per ordinary share was calculated 163,641,520 189,270,248 189,270,248
Earnings per share
Revenue earnings per share (cents) – basic and diluted 1.66 1.90 10.15
Capital earnings/(loss) per share (cents) – basic and diluted 9.51 (1.41) 20.95
---------- ---------- ----------
Total earnings per share (cents) – basic and diluted 11.17 0.49 31.10
====== ====== ======
As at As at As at
31 March 2026 (unaudited) 31 March 2025 (unaudited) 30 September 2025 (audited)
Net asset value per ordinary share (cents) 235.71 209.07 236.03
Ordinary share price (cents) 1 223.52 189.74 226.17
Net asset value per ordinary share (pence) 1 178.74 161.98 175.32
Ordinary share price (pence) 169.50 147.00 168.00
====== ====== ======
1 Based on an exchange rate of US$1.3187 to £1 at 31
March 2026 (31 March 2025: US$1.2908 to £1; 30 September 2025: US$1.3463 to
£1).
10. Called up share capital
Ordinary shares in issue Treasury shares Total shares Nominal
value
number number number US$’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 1 cent each:
At 30 September 2024 (audited) 189,325,748 52,497,053 241,822,801 2,418
Ordinary shares repurchased into treasury (55,500) 55,500 – –
----------------- ----------------- ----------------- -----------------
At 31 March 2025 (unaudited) 189,270,248 52,552,553 241,822,801 2,418
----------------- ----------------- ----------------- -----------------
At 30 September 2025 (audited) 189,270,248 52,552,553 241,822,801 2,418
----------------- ----------------- ----------------- -----------------
Ordinary shares repurchased into treasury 1 (25,878,728) 25,878,728 – –
Ordinary shares reissued from treasury 250,000 (250,000) – –
----------------- ----------------- ----------------- -----------------
At 31 March 2026 (unaudited) 163,641,520 78,181,281 241,822,801 2,418
========== ========== ========== ==========
1 A total of 25,878,728 ordinary shares of 1 cent each,
representing 13.7 per cent of the ordinary shares in issue (excluding ordinary
shares held in treasury), were validly tendered under the Tender Offer. Of the
above, 250,000 ordinary shares were reissued from treasury. After the close of
business on 23 February 2026, the Company’s assets and liabilities were
allocated into a continuing pool and a tender pool as outlined in the
Circular. Following realisation of all of the assets contained in the tender
pool and settlement of all liabilities to be borne by the tender pool, the
Company completed the repurchase of all ordinary shares tendered on 31 March
2026 for a total consideration of US$70,266,000 in accordance with the Tender
Offer. 25,878,728 ordinary shares tendered have been transferred into treasury
and 250,000 ordinary shares were reissued from treasury for total proceeds of
US$675,000 (six months ended 31 March 2025: US$nil; year ended 30 September
2025: US$nil). Further information in relation to the Tender Offer can be
found in the Chair’s Statement.
The Company has in issue 50,000 management shares which carry the right to a
fixed cumulative preferred dividend. Additional information is given in note
14 to the Annual Report and Financial Statements for the year ended 30
September 2025.
During the six months ended 31 March 2026, the Company repurchased no ordinary
shares other than through the Tender Offer (six months ended 31 March 2025:
55,500; year ended 30 September 2025: 55,500) for a total consideration of
US$nil (six months ended 31 March 2025: US$107,000; year ended 30 September
2024: US$107,000).
Since the period end and up to 22 May 2026, the Company has issued 750,000
shares from Treasury at a premium to net asset value.
11. Reserves
The capital redemption reserve of US$5,798,000 (31 March 2025: US$5,798,000;
30 September 2025: US$5,798,000) is not a distributable reserve under
the Companies Act 2006. In accordance with ICAEW Technical Release
02/17BL on Guidance on Realised and Distributable Profits under the Companies
Act 2006, the special reserve and capital reserve may be used as
distributable reserves for all purposes and, in particular, the repurchase by
the Company of its ordinary shares and for payments such as
dividends. In accordance with the Company’s Articles of Association, the
special reserve of US$239,106,000 (31 March 2025: US$308,697,000; 30 September
2025: US$308,697,000), capital reserve of US$133,013,000 (31 March 2025:
US$73,146,000; 30 September 2025: US$115,479,000) and revenue reserve of
US$5,388,000 (31 March 2025: US$5,641,000; 30 September 2025: US$14,346,000)
may be distributed by way of dividend. The gain on the capital reserve arising
on the revaluation of investments of US$39,190,000 (six months ended
31 March 2025: US$26,857,000; year ended 30 September 2025: US$71,781,000) is
subject to fair value movements and may not be readily realisable at short
notice, as such it may not be entirely distributable. The investments are
subject to financial risks, as such capital reserves (arising on investments
sold) and the revenue reserve may not be entirely distributable if a
loss occurred during the realisation of these investments.
At 31 March 2026, the Company’s distributable reserves, excluding capital
reserves on the revaluation of investments, amounted to US$338,317,000 (31
March 2025: US$360,627,000; 30 September 2025: US$366,741,000).
In June 2011, the Company cancelled its share premium account pursuant to
shareholders’ approval of a special resolution and Court approval on 17 June
2011. The share premium account, which totalled US$142,704,000 was transferred
to a special reserve.
In November 2013, the Company cancelled its share premium account pursuant to
shareholders’ approval of a special resolution and Court approval on 6
November 2013. The share premium account, which totalled US$88,326,000 was
transferred to a special reserve.
In March 2021, the Company cancelled its share premium account pursuant to
shareholders’ approval of a special resolution and Court approval on 11
March 2021. The share premium account, which totalled US$165,984,000 was
transferred to a special reserve.
12. Financial risks and valuation of financial instruments
The Company’s investment activities expose it to the various types of risk
which are associated with the financial instruments and markets in which it
invests. The risks are substantially consistent with those disclosed in the
previous annual financial statements.
Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices (other than
those arising from interest rate risk or currency risk), whether those changes
are caused by factors specific to the individual financial instrument or its
issuer, or factors affecting similar financial instruments traded in the
market. Local, regional or global events such as war, acts of terrorism, the
spread of infectious illness or other public health issues, recessions,
climate change or other events could have a significant impact on the Company
and the market price of its investments and could result in increased premiums
or discounts to the Company’s net asset value.
Valuation of financial instruments
Financial assets and financial liabilities are either carried in the Statement
of Financial Position at their fair value (investments and derivatives) or at
an amount which is a reasonable approximation of fair value (due from brokers,
dividends and interest receivable, due to brokers, accruals, cash at bank and
bank overdrafts). IFRS 13 requires the Company to classify fair value
measurements using a fair value hierarchy that reflects the significance of
inputs used in making the measurements. The valuation techniques used by the
Company are explained in the accounting policies note 2(g) as set out on page
93 of the Company’s Annual Report and Financial Statements for the year
ended 30 September 2025.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted
prices are readily available from an exchange, dealer, broker, industry group,
pricing service or regulatory agency and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. The
Company does not adjust the quoted price for these instruments.
Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar
instruments in markets that are considered less than active, or other
valuation techniques where all significant inputs are directly or indirectly
observable from market data.
Valuation techniques used for non–standardised financial instruments such as
options, currency swaps and other over–the–counter derivatives include the
use of comparable recent arm’s length transactions, reference to other
instruments that are substantially the same, discounted cash flow analysis,
option pricing models and other valuation techniques commonly used by market
participants making the maximum use of market inputs and relying as little as
possible on entity specific inputs.
As at the period end the CFDs were valued using the underlying equity bid
price and the inputs to the valuation were the exchange rates used to convert
the CFD valuation from the relevant local currency in which the underlying
equity was priced to US Dollars at the period end date. There have been no
changes to the valuation technique since the previous year or as at the date
of this report.
Contracts for difference and forward currency contracts have been classified
as Level 2 investments as their valuation has been based on market observable
inputs represented by the market prices of the underlying quoted securities to
which these contracts expose the Company.
Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes
inputs not based on market data and these inputs could have a significant
impact on the instrument’s valuation.
This category also includes instruments that are valued based on quoted prices
for similar instruments where significant entity determined adjustments or
assumptions are required to reflect differences between the instruments and
instruments for which there is no active market. The Investment Manager
considers observable data to be that market data that is readily available,
regularly distributed or updated, reliable and verifiable, not proprietary and
provided by independent sources that are actively involved in the relevant
market.
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement. If a fair value
measurement uses observable inputs that require significant adjustment based
on unobservable inputs, that measurement is a Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement
in its entirety requires judgement, considering factors specific to the asset
or liability including an assessment of the relevant risks including but not
limited to credit risk, market risk, liquidity risk, business risk and
sustainability risk. The determination of what constitutes ‘observable’
inputs requires significant judgement by the Investment Manager and these
risks are adequately captured in the assumptions and inputs used in
measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
For exchange listed equity investments, the quoted price is the bid price.
Substantially, all investments are valued based on unadjusted quoted market
prices. Where such quoted prices are readily available in an active market,
such prices are not required to be assessed or adjusted for any business
risks, including climate risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
The table below sets out fair value measurements using the IFRS 13 fair value
hierarchy.
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 31 March 2026 (unaudited)
US$’000 US$’000 US$’000 US$’000
Assets:
Equity investments 317,149 – – 317,149
Cash Fund 56,190 – – 56,190
Contracts for difference – 2,429 – 2,429
Liabilities:
Contracts for difference – (1,264) – (1,264)
----------- ----------- ----------- -----------
Total 373,339 1,165 – 374,504
======= ======= ======= =======
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 31 March 2025 (unaudited)
US$’000 US$’000 US$’000 US$’000
Assets:
Equity investments 379,465 – – 379,465
Cash Fund 20,688 – – 20,688
Contracts for difference – 1,244 – 1,244
Liabilities:
Contracts for difference – (1,765) – (1,765)
----------- ----------- ----------- -----------
400,153 (521) – 399,632
======= ======= ======= =======
Financial assets/(liabilities) at fair value through profit or loss Level 1 Level 2 Level 3 Total
at 30 September 2025 (audited)
US$’000 US$’000 US$’000 US$’000
Assets:
Equity investments 401,078 – – 401,078
Cash Fund 53,075 – – 53,075
Contracts for difference – 5,872 – 5,872
Liabilities:
Contracts for difference – (1,509) – (1,509)
----------- ----------- ----------- -----------
454,153 4,363 – 458,516
======= ======= ======= =======
There were no transfers between levels of financial assets and financial
liabilities during the six months ended 31 March 2026 (six months ended 31
March 2025: none; year ended 30 September 2025: none).
The Company held no Level 3 assets or liabilities during the six months ended
31 March 2026 (six months ended 31 March 2025: none; year ended 30 September
2025: none).
13. Related party disclosure
Directors’ emoluments
The Board currently consists of five non–executive Directors, all of whom
are considered by the Board to be independent of the Manager. None of the
Directors has a service contract with the Company. With effect from 1 October
2025, the Chair receives an annual fee of £48,510, the Audit and Management
Engagement Committee Chairman receives an annual fee of £40,530 and each of
the other Directors receives an annual fee of £35,280.
As at 31 March 2026, an amount of US$21,000 (£16,000) was outstanding in
respect of Directors’ fees (31 March 2025: US$20,000 (£15,000) ; 30
September 2025: US$20,000 (£15,000)).
At the period end, the Directors, including any connected persons, held
ordinary shares in the Company as set out below:
Six months Six months Year ended
ended ended 30 September
31 March 31 March 2025
2026 2025 (audited)
(unaudited) (unaudited)
Katrina Hart (Chair) 49,110 2 48,912 1 49,110 2
Stephen White 3 n/a 30,000 30,000
Elisabeth Airey 100,000 75,000 75,000
Lucy Taylor–Smith 30,852 4 30,852 4 30,852 4
Hatem Dowidar 60,000 25,000 40,000
Christopher Casey 5 14,500 nil nil
====== ====== ======
1 11,898 ordinary shares are held on behalf of Katrina
Hart’s dependents.
2 12,096 ordinary shares are held on behalf of Katrina
Hart’s dependents.
3 Retired with effect from 23 February 2026.
4 20,730 ordinary shares are held on behalf of Lucy
Taylor-Smith’s dependents.
5 Appointed with effect from 1 October 2025.
Since the period end and up to the date of this report there have been no
changes in Directors’ holdings.
The transactions with the Investment Manager and AIFM are stated in note 14.
Significant holdings
The following investors are:
a. funds managed by the BlackRock Group or are affiliates of BlackRock Inc.
(Related BlackRock Funds); or
b. investors (other than those listed in (a) above) who held more than 20% of
the voting shares in issue in the Company and are as a result, considered to
be related parties to the Company (Significant Investors).
Total % of shares held by Related BlackRock Funds Total % of shares held by Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc. Number of Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.
As at 31 March 2026 3.3 n/a n/a
As at 31 March 2025 5.0 n/a n/a
As at 30 September 2025 3.3 n/a n/a
===== ===== =====
14. Transactions with the Investment Manager and AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration
services to the Company under a contract which is terminable on six months’
notice. BFM has (with the Company’s consent) delegated certain portfolio and
risk management services, and other ancillary services, to BlackRock
Investment Management (UK) Limited (BIM (UK)). Further details of this
investment management contract are disclosed on page 52 of the Directors’
Report in the Company’s Annual Report and Financial Statements for the year
ended 30 September 2025.
The investment management fee due for the six months ended 31 March 2026
amounted to US$2,488,000 (six months ended 31 March 2025: US$2,194,000; year
ended 30 September 2025: US$4,522,000). The performance fee accrued for the
six months ended 31 March 2026 is US$1,029,000 (six months ended 31 March
2025: US$1,627,000; year ended 30 September 2025: US$5,980,000).
At the period end, US$3,725,000 was outstanding in respect of management fees
(31 March 2025: US$2,194,000; 30 September 2025: US$2,330,000) and
US$1,029,000 (31 March 2025: US$5,137,000; 30 September 2025: US$9,490,000)
was accrued in respect of performance fees on the tender pool and US$nil for
the continuing pool as at 31 March 2026 (31 March 2025: US$3,510,000; 30
September 2025: US$3,510,000). Any final performance fee on the continuing
pool for the full year ending 30 September 2026 will not crystallise and fall
due until the calculation date of 30 September 2026.
In addition to the above services, BIM (UK) has provided the Company with
marketing services. The total fees paid or payable for these services to 31
March 2026 amounted to US$345,000 excluding VAT (six months ended 31 March
2025: US$31,000; year ended 30 September 2025: US$157,000). Marketing fees of
US$321,000 excluding VAT (31 March 2025: US$97,000; 30 September 2025:
US$147,000) were outstanding as at 31 March 2026.
The Company has an investment in the BlackRock Institutional Cash Series plc
– US Dollar Liquid Environmentally Aware Fund of US$56,190,000 (31 March
2025: US$20,688,000; 30 September 2025: US$53,075,000) at 31 March 2026, which
is a fund managed by a company within the BlackRock Group. The Company’s
investment in the Cash Fund is held in a share class on which no management
fees are paid to BlackRock to avoid double dipping.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
15. Contingent liabilities
There were no contingent liabilities at 31 March 2026 (six months ended 31
March 2025: none; year ended 30 September 2025: none).
16. Publication of non statutory accounts
The financial information contained in this half yearly report does not
constitute statutory accounts as defined in Section 435 of the Companies Act
2006. The financial information for the six months ended 31 March 2026 and 31
March 2025 has not been audited.
The information for the year ended 30 September 2025 has been extracted from
the latest published audited financial statements which have been filed with
the Registrar of Companies, unless otherwise stated. The report of the
auditors on those accounts contained no qualifications or statement under
Sections 498(2) or 498 (3) of the Companies Act 2006.
17. Annual results
The Board expects to announce the annual results for the year ending 30
September 2026 in early December 2026.
Copies of the annual results announcement can be obtained from the Secretary
on 020 7743 3000 or at cosec@blackrock.com
. The Annual Report should be available by late December 2026 with the
Annual General Meeting being held in February 2027.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Sarah Beynsberger, Director, Investment Trusts, BlackRock Investment
Management (UK) Limited
Tel: 020 7743 3000
Press enquiries:
Lansons Communications
Email: BlackRockInvestmentTrusts@lansons.com
Tel: 020 7490 8828
27 May 2026
12 Throgmorton Avenue
London EC2N 2DL
END
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