Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 30 June 2016 and unaudited.
Performance of ordinary share portfolio at month end with net income reinvested.
							One			Three				One		Three						Five		Since
							month			months				year		years						years		Launch*
							%			%				%		%						%		%
Sterling:
Share price							5.2			11.4				11.8		23.5						51.8		39.1
Net asset value							10.0			12.7				11.3		28.6						56.4		46.3
MSCI Frontiers Index (NR)							5.1			8.0				3.4		16.9						29.1		20.2
MSCI Emerging Markets Index (NR)							13.2			8.2				3.5		8.2						0.0		0.5
US Dollars:
Share price							-3.3			3.6				-4.9		9.0						26.7		19.7
Net asset value							1.0			4.8				-5.4		13.5						30.5		25.6
MSCI Frontiers Index (NR)							-3.5			0.5				-12.1		3.0						7.5		3.0
MSCI Emerging Markets Index (NR)							4.0			0.7				-12.1		-4.6						-0.2		-13.8
Sources: BlackRock and Standard & Poor’s Micropal * 17 December 2010.
At month end Ordinary Shares
US Dollar
Net asset value - capital only:																		159.27c
Net asset value - cum income:																		161.20c
Sterling:
Net asset value - capital only:																		119.15p
Net asset value - cum income:																		120.60p
Share price:																		116.50p
Total assets (including income):																		£198.2m
Premium to cum-income NAV:																		3.4%
Gearing:																		Nil
Gearing range (as a % of gross assets):																		0-20%
Net yield*:																		4.3%
Ordinary shares in issue:																		164,333,108
Ongoing charges**:																		1.5%
Ongoing charges plus taxation and performance fee:																		1.6%
*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 4.1% and includes the 2015 final dividend of 4.15 cents per share declared on 18 December 2015, paid to shareholders on 19 February 2016 and the 2016 interim dividend of 2.60 cents per share announced on 16 May 2016 and payable to shareholders on 1 July 2016. **Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 September 2015.
The following relates specifically to the ordinary share portfolio.
Benchmark
Sector Analysis				Gross assets(%)*									Country Analysis							Gross assets(%)*
Financials				39.6									Argentina							15.3
Consumer Staples				18.6									Pakistan							13.6
Materials				11.2									Romania							10.9
Utilities				8.6									Bangladesh							9.9
Telecommunication				8.1									Kazakhstan							8.0
Energy				7.1									Sri Lanka							6.5
Health Care				6.4									Ukraine							5.9
Information Technology				4.6									Kenya							5.7
Industrials				3.7									Morocco							5.5
Consumer Discretionary				2.6									Vietnam							5.0
				-----									Nigeria							4.3
Total				110.5									Kuwait							4.1
				-----									Saudi Arabia							3.7
Short positions				0.0									Eurasia							2.4
				=====									Estonia							2.2
													Egypt							2.2
													Caribbean							2.2
													Slovenia							2.0
													Oman							1.1
																				-----
													Total							110.5
																				-----
													Short positions							0.0
																				=====
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
	31.07  2015     %	31.08  2015     %	30.09  2015     %		31.10  2015     %	30.11  2015     %		31.12  2015     %				31.01  2016  %			29.02  2016     %				31.03  2016     %		30.04  2016     %		31.05  2016     %		30.06  2016     %
Long	102.9	103.1	101.8		99.6	100.3		99.5				102.5			102.2				108.1		109.2		108.8		110.5
Short	1.5	1.5	1.0		1.2	1.7		1.7				1.4			1.1				1.2		1.3		0.0		0.0
Gross	104.4	104.6	102.8		100.8	102.0		101.2				103.9			103.3				109.3		110.5		108.8		110.5
Net	101.4	101.6	100.8		98.4	98.6		97.8				101.1			101.1				106.9		107.9		108.8		110.5
Ten Largest Equity Investments
Company									Country of Risk								% of gross assets
Grupo Financiero Galicia									Argentina								4.1
Banco Macro									Argentina								3.9
MCB									Pakistan								3.8
KazMunaiGas Exploration Production									Kazakhstan								3.8
Square Pharmaceuticals									Bangladesh								3.5
S.N.G.N. Romgaz									Romania								3.3
MHP									Ukraine								3.2
Equity Group									Kenya								3.1
Pampa Energia									Argentina								3.1
Electrica									Romania								3.0
Commenting on the markets, Sam Vecht and Emily Fletcher, representing the Investment Manager noted: Portfolio In June, the Company’s NAV rose by 1.0% outperforming the MSCI Frontier benchmark which fell by 3.5%. The MSCI Emerging Markets Index rose by 4.0%(all on a US Dollar basis with net income reinvested). Argentina continued to contribute positively to performance amid declining interest rates, improved access to capital markets, and increased international investor confidence. Utility, Pampa Energia, as well as real estate development firm, IRSA, were both among the top individual contributors in June, both rising c. 14%. Our overweight positions in Pakistan also contributed as the market rallied following the MSCI announcement that the country will be upgraded to ‘Emerging Market’ status. The sparked increased interest in a market with one of the lowest Price-to-Earnings ratios in Asia. Our long standing underweight to Nigeria had broadly benefitted the Company significantly on a relative basis. The country officially lifted currency controls in mid-June which led to the subsequent c. 30% devaluation of the Naira. Although we appreciate the significant changes made thus far by the Nigerian government and central bank, investor sentiment might remain cautious as further currency devaluation seems possible. We remain underweight Nigeria however, following the devaluation we have reinitiated positions in higher quality, local franchises such as Zenith Bank and Nigerian Breweries. Conversely, the Company’s overweight to Kazakhstan weighed on performance during June, as oil corrected and the market sold off along with many others, post the surprise BREXIT vote. However, subsequent to the month end, KMG NC the controlling shareholder of portfolio holding Kaz Munai Gas EP, announced an increase to the tender price pertaining to the proposed change in the relationship agreement between the two companies, from $7.88 per GDR to $9 per GDR.  Kaz Munai Gas EP and Kazakh financial Halyk Bank rallied strongly following this more realistic valuation, more than recouping their June losses.   Outlook Despite the global ramifications of the ‘Leave’ vote in June’s UK referendum, Frontier Markets, given their lower correlations to the developed world, should show a degree of resiliency during this period of increased uncertainty. Broadly, Frontier Market economies remain relatively ‘closed-off’, having limited linkages to the rest of the world. We retain our preference for Frontier Markets that are experiencing improved macroeconomic conditions, better political governance, cash flow growth, and cheap valuations. Our preferred countries remain Argentina, Bangladesh, Pakistan, and Romania. 18 July 2016 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.