Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 30 June 2015 and unaudited.
Performance at month end with net income reinvested
							One		Three				Six				One				Three		Since
							month		months				months				year				years		Launch*
							%		%				%				%				%		%
Sterling:
Share price							-5.0		-2.1				1.8				-5.1				63.7		24.4
Net asset value							-4.3		-2.3				1.5				-2.6				62.1		31.4
MSCI Frontiers Index (NR)							-3.1		-5.7				-4.0				-6.4				43.7		16.2
MSCI Emerging Markets Index (NR)							-5.5		-5.0				2.1				3.1				11.3		-2.8
US Dollars:
Share price							-2.0		3.8				2.7				-12.6				64.4		25.9
Net asset value							-1.3		3.5				2.5				-10.3				62.8		32.8
MSCI Frontiers Index (NR)							-0.1		-0.0				-3.2				-13.9				44.1		17.2
MSCI Emerging Markets Index (NR)							-2.6		0.7				2.9				-5.1				11.6		-2.0
Sources: BlackRock and Standard & Poor’s Micropal * 17 December 2010.
At month end
US Dollar
Net asset value - capital only:																		175.51c
Net asset value - cum income:																		178.09c
Sterling:
Net asset value - capital only:																		111.59p
Net asset value - cum income:																		113.23p
Share price:																		109.00p
Total assets (including income):																		£170.5m
Discount to cum-income NAV:																		3.7%
Gearing:																		nil
Gearing range (as a % of gross assets):																		0-20%
Net yield*:																		3.8%
Ordinary shares in issue:																		150,621,621
Ongoing charges**:																		1.5%
Ongoing charges plus taxation and performance fee:																		1.5%
*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.8% and includes the 2014 final dividend of 4.00 cents per share declared on 1 December 2014, paid to shareholders on 20 February 2015 and the 2015 interim dividend of 2.40 cents per share announced on 18 May 2015 and paid to shareholders on 3 July 2015. **Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 September 2014.
Benchmark
Sector Analysis				Gross assets(%)*								Country Analysis							Gross assets(%)*
Financials				36.8								Kuwait							10.5
Consumer Staples				14.4								Pakistan							10.2
Telecommunications				13.7								Bangladesh							9.5
Energy				10.8								Sri Lanka							9.2
Consumer Discretionary				7.5								Vietnam							7.7
Industrials				5.7								Kazakhstan							7.6
Health Care				5.2								Nigeria							6.8
Utilities				2.9								Romania							6.1
Materials				2.9								Argentina							5.8
Information Technology				1.6								Ukraine							5.5
				-----								Morocco							4.5
Total				101.5								Saudi Arabia							3.3
				-----								Oman							2.7
Short positions				-1.0								Panama							2.2
				=====								Slovenia							2.1
												Other							7.8
																			-----
												Total							101.5
																			-----
												Short positions							-1.0
																			=====
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
	31.07  2014     %	31.08  2014     %	30.09  2014     %		31.10  2014     %	30.11  2014     %		31.12  2014     %			31.01  2015     %			28.02  2015     %		31.03  2015     %				30.04  2015     %		31.05  2015     %		30.06  2015     %
Long	100.8	98.7	100.0		99.9	97.9		98.6			101.1			102.0		106.4				105.9		105.8		101.5
Short	1.6	1.6	0.8		1.5	2.8		2.6			1.6			1.6		1.7				1.7		1.1		1.0
Gross	102.4	100.3	100.8		101.4	100.7		101.2			102.7			103.6		108.1				107.6		106.9		102.5
Net	99.2	97.1	99.2		98.4	95.1		96.0			99.5			100.4		104.7				104.2		104.7		100.5
Company						Country of Risk									% of gross assets
Kuwait Foods (Americana)						Kuwait									4.2
MHP						Ukraine									3.9
Halyk Savings Bank						Kazakhstan									3.9
BRD Societe Generale						Romania									3.8
United Bank for Africa						Nigeria									3.3
Mobile Telecommunications						Kuwait									3.2
Square Pharmaceuticals						Bangladesh									3.1
Telecom Argentina						Argentina									3.1
Agility						Kuwait									3.1
Hub Power						Pakistan									2.9
Commenting on the markets, Sam Vecht & Emily Fletcher, representing the Investment Manager noted:
Portfolio Performance
In June the BlackRock Frontiers Investment Trust plc’s NAV fell by 1.3%, underperforming the benchmark by 1.2% (on a US dollar basis with net income reinvested). In the calendar year to date, the Company’s NAV rose by 2.5% versus the benchmark which has fallen by 3.2%.
Positive contributors to relative performance included our overweight position in Pakistan. The market rose by 2.8% in June, driven by continued positive macroeconomic trends and increased investor interest. Sentiment was further improved after meeting conditions set by the IMF to unlock the latest round of financing. The government announced a market friendly budget which planned for ongoing fiscal consolidation. The Company’s holdings benefitting from this included Engro Foods which performed especially strongly, rising by 15% over the month, recovering from fears that the budget would put a tax on milk.
Stocks in Bangladesh also did well this month, with BAT Bangladesh and Square Pharmaceutical both rising over 6%. The favourable investment climate in Bangladesh was further endorsed by the OECD, which upgraded their view of the country. The change reflects the view that Bangladesh is no longer a country which is dependent on foreign aid.
Detracting over the month of June was Sri Lankan financial, Hatton National Bank, which fell by nearly 6%. The market was weak generally as concerns of political uncertainty before elections to parliament negatively impacted sentiment.
The Nigerian market was weak, falling by 3%.  We have been disappointed that the President has yet to appoint his government and continue to expect that, unless oil prices rise significantly, the country will see a significant economic slowdown. This may lead to further currency depreciation and would highlight that forward currency markets reflect expectations of a 20% devaluation in the next 12 months.
Portfolio Activity
We increased exposure to Vietnam in June. We are increasingly positive on the prospects for Vietnam driven by the ongoing commitment to reform the banking system and the proposed Trans Pacific Partnership trade deal. In addition, the announcement of a major reform of foreign ownership rules, with foreign ownership limits to be removed for many stocks, will further improve the investment environment.
We opened a new position in Bank of Georgia. Current valuations are attractive against a backdrop of an appreciating currency.
Having owned the stock since April 2013, we sold our position in Dragon Oil, an oil exploration and production company with assets in Turkmenistan. The share price rallied after the board of Dragon Oil recommended an improved offer from its parent company. Risks remain with regards to finalising the deal as the lack of agreement from minority shareholders may yet prevent its completion.
21 July 2015
ENDS
Latest information is available by typing www.blackrock.co.uk/brfi on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on BlackRock’s website (or any other website) is incorporated into, or forms part of, this announcement.