REG-BlackRock Frontiers Investment Trust Plc: Portfolio Update
Today 16:45
BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706)
All information is at 31 May 2025 and unaudited.
Performance at month end with net income reinvested.
One Three One Three Five Since
month months year years years Launch*
% % % % % %
Sterling:
Share price 5.2 0.0 10.6 39.2 115.4 171.4
Net asset value 1.6 -3.2 6.8 28.6 102.6 181.1
Benchmark (NR)** 0.4 -2.0 5.0 0.5 36.6 90.1
MSCI Frontiers Index (NR) 5.6 1.2 10.9 14.0 37.5 98.6
MSCI Emerging Markets Index (NR) 3.3 -0.7 6.7 8.7 29.0 71.1
US Dollars:
Share price 6.2 7.1 17.2 49.1 135.3 136.0
Net asset value 2.6 3.6 13.1 37.8 121.3 144.1
Benchmark (NR)** 1.4 5.0 11.2 7.5 49.0 65.7
MSCI Frontiers Index (NR) 6.6 8.4 17.4 22.0 50.0 71.8
MSCI Emerging Markets Index (NR) 4.3 6.3 13.0 16.3 40.7 47.9
Sources: BlackRock and Standard & Poor’s Micropal
* 17 December 2010.
** The Company’s benchmark changed from MSCI Frontier Markets Index to MSCI
Emerging ex Selected Countries + Frontier Markets + Saudi Arabia Index (net
total return, USD) effective 1/4/2018.
At month end
US Dollar
Net asset value - capital only: 211.58c
Net asset value - cum income: 218.50c
Sterling:
Net asset value - capital only: 156.89p
Net asset value - cum income: 162.02p
Share price: 157.50p
Total assets (including income): £306.7m
Discount to cum-income NAV: 2.8%
Gearing: Nil
Gearing range (as a % of gross assets): 0-20%
Net yield*: 4.8%
Ordinary shares in issue**: 189,270,248
Ongoing charges***: 1.41%
Ongoing charges plus taxation and performance fee****: 2.33%
*The Company’s yield based on dividends announced in the last 12 months as
at the date of the release of this announcement is 4.8% and includes the 2024
final dividend of 6.00 cents per share, declared on 5 December 2024 paid to
shareholders on 14 February 2025 and the 2025 interim dividend of 3.65 cents
per share, declared on 29 May 2025, payable to shareholders on 24 June 2025.
** Excluding 52,552,553 ordinary shares held in treasury.
***The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating expenses
excluding performance fees, finance costs, direct transaction costs, custody
transaction charges, VAT recovered, taxation and certain non-recurring items
for Year ended 30 September 2024.
**** The Company’s ongoing charges are calculated as a percentage of average
daily net assets and using the management fee and all other operating expenses
and including performance fees but excluding finance costs, direct transaction
costs, custody transaction charges, VAT recovered, taxation and certain
non-recurring items for Year ended 30 September 2024.
Sector Gross market value as a % of net assets Country Gross market value as a % of net assets
Analysis Analysis
Financials 47.9 Saudi Arabia 13.9
Consumer Discretionary 13.2 Indonesia 11.8
Real Estate 12.7 United Arab Emirates 10.9
Industrials 11.8 Turkey 9.6
Materials 9.0 Greece 7.5
Information Technology 7.2 Poland 7.2
Communication Services 6.0 Hungary 6.6
Consumer Staples 4.8 Vietnam 6.2
Health Care 3.5 Kazakhstan 5.8
Energy 1.8 Georgia 5.1
----- Pakistan 5.1
117.9 Multi-International 4.9
----- Philippines 4.2
Short Positions -3.4 Thailand 4.0
----- Kenya 3.0
Bangladesh 2.9
Malaysia 2.9
Czech Republic 2.5
Chile 1.7
Egypt 1.2
Cambodia 0.9
-----
117.9
-----
Short Positions -3.4 ----
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
30.06 2024 % 31.07 2024 % 31.08 2024 % 30.09 2024 % 31.10 2024 % 30.11 2024 % 31.12 2024 % 31.01 2025 % 28.02 2025 % 31.03 2025 % 30.04 2025 % 31.05 2025 %
Long 118.4 116.1 112.3 107.9 110.1 109.6 112.4 118.5 121.0 118.5 111.3 117.9
Short 2.9 3.5 3.6 3.9 3.6 3.3 4.0 4.2 3.9 4.3 3.8 3.4
Gross 121.3 119.6 115.9 111.8 113.7 112.9 116.4 122.7 124.9 122.8 115.1 121.3
Net 115.5 112.6 108.7 104.0 106.5 106.3 108.4 114.3 117.1 114.2 107.5 114.5
Ten Largest Investments
Company Country of Risk Gross market value as a % of net assets
Bank Mandiri Indonesia 5.3
Emaar Properties United Arab Emirates 5.2
Al Rajhi Bank Saudi Arabia 5.0
OTP Bank Hungary 4.1
PZU Poland 4.1
FPT Vietnam 4.1
Etihad Etisalat Saudi Arabia 3.5
Eldorado Gold Turkey 3.4
Akbank Turkey 3.4
LPP Poland 3.2
Commenting on the markets, Sam Vecht and Emily Fletcher, representing the
Investment Manager noted:
The Company’s NAV rose by 2.6% in May, outperforming its benchmark, the MSCI
Frontier + Emerging Markets ex Selected Countries Index (“Benchmark
Index”), which returned +1.4%. For reference, the MSCI Emerging Markets
Index returned +4.3% while the MSCI Frontier Markets Index returned +6.6% over
the same period. All performance figures are on a US Dollar basis with net
income reinvested.
Global equity markets maintained their upward momentum in May, supported by
resilient economic data and hopes that US interest rates may be nearing a
peak. Returns in our universe were led by gains in the Asian markets.
Within EM Asia, Vietnam surged +11.5%, bouncing back strongly from recent
weakness on hopes of a trade agreement and tariff resolution with the US.
Indonesia also rallied, up +9.0%, bouncing off oversold levels. Meanwhile,
Emerging European markets saw significant strength, powered by resilience in
banking stocks, especially in Greece (+12.6%) and the Czech Republic (+7.0%).
A diverse set of holdings contributed to May performance. DigiPlus, an online
gaming company in the Philippines surged by 32.3% in May, re-rating upwards,
buoyed by investor enthusiasm as it continued to show growth in users. Bank
Mandiri in Indonesia rose by 10.5%, after reporting Q1 results inline with
expectations. Bank of Georgia climbed by 12.4% as the bank reported a
significant increase in net interest income and pretax profit for Q1 2025,
reflecting its ability to continue to expand profitably not only within
Georgia, but also Armenia following the recent acquisition. Athens
International Airport shares increased by 9.7%, as they brought forward a
capital investment plan to accommodate growing passenger numbers. The
structure of the spending will allow them to increase their regulatory asset
base, driving future returns.
Not all holdings fared as well. Kaspi, online Kazakh financial platform,
declined by 9.2% despite reporting a 21% year-over-year increase in revenue
and a 16% rise in net income for Q1 2025 as results slightly missed
expectations and analysts were concerned that full year results could be hit
by increased regulations. Chilean beverages company, Compania Cervecerias
Unidas fell by 11.2% as the company faced pricing pressure in key export
markets and rising input costs tied to global commodity price volatility,
despite reporting a Q1 profit of $60 million. Polish clothing retailer, LPP,
slipped by 5.9% after the company issued a cautious outlook, citing weak foot
traffic across retail locations and inflation driven margin pressures, even as
it reiterated plans to double its annual revenue by 2027 through the rapid
expansion of its budget brand Sinsay.
We made a few tactical adjustments in May, increasing our position in Turkiye
Is Bankasi, reflecting our view that liquidity conditions in Turkey are
gradually improving and using the recent sell off in the market on political
concerns to add on weakness. We also added to Lucky Cement (Pakistan), as we
believe that the economic adjustment program in the country remains on track
which should provide support to market multiples.
Looking ahead, we remain constructive on the outlook for smaller emerging and
frontier markets. As inflation trends lower in many of our target countries,
we expect central banks to resume rate cuts—especially once US bond yields
stabilise. This backdrop sets the stage for a cyclical recovery in
domestically driven economies. Valuations across our investment universe
remain attractive, both in absolute and relative terms. Many of these markets
are still under-researched, and we believe this creates fertile ground for
finding high-conviction, alpha-generating opportunities.
Sources:
1BlackRock as at 31 May 2025
2MSCI as at 31 May 2025
16 June 2025
ENDS
Latest information is available by typing www.blackrock.com/uk/brfi on the
internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3
(ICV terminal). Neither the contents of the Manager’s website nor the
contents of any website accessible from hyperlinks on BlackRock’s website
(or any other website) is incorporated into, or forms part of, this
announcement.
Release (https://mb.cision.com/Main/22403/4164887/3507679.pdf)
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