Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 31 January 2016 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							-1.6			-1.5				-10.7				-4.7					17.1		16.3
Net asset value							-2.6			-3.7				-6.8				-7.4					19.7		22.4
MSCI Frontiers Index (NR)							-3.2			-3.4				-6.7				-12.0					11.5		6.0
MSCI Emerging Markets Index (NR)							-2.8			-4.3				-8.6				-16.3					-16.4		-16.7
US Dollars:
Share price							-5.2			-9.4				-18.8				-9.9					5.0		6.2
Net asset value							-6.2			-11.6				-15.3				-12.4					7.3		11.6
MSCI Frontiers Index (NR)							-6.8			-11.2				-15.2				-16.9					-0.3		-3.5
MSCI Emerging Markets Index (NR)							-6.5			-12.1				-17.0				-20.6					-25.2		-24.3
Sources: BlackRock and Standard & Poor’s Micropal * 17 December 2010.
At month end
US Dollar
Net asset value - capital only:																			145.31c
Net asset value - cum income:																			145.58c
Sterling:
Net asset value - capital only:																			102.44p
Net asset value - cum income:																			102.63p
Share price:																			99.00p
Total assets (including income):																			£154.6m
Discount to cum-income NAV:																			3.5%
Gearing:																			Nil
Gearing range (as a % of gross assets):																			0-20%
Net yield*:																			4.4%
Ongoing charges**:																			1.5%
Ongoing charges plus taxation and performance fee:																			1.6%
Ordinary shares in issue***:																			150,621,621
*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 4.4% and includes the 2015 final dividend of 4.15 cents per share declared on 18 December 2015, payable to shareholders on 19 February 2016 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 2015. ***With effect from 29 February 2016, the Company also has in issue 15,000,001 C shares which carry the same voting rights per share as the Company’s ordinary shares. As announced on 4 March 2016, the C share portfolio became 85% invested on 3 March 2016 and C shares are expected to convert into ordinary shares in the near future; the last day for trading in the C Shares on the London Stock Exchange for normal settlement (in order to enable settlement prior to Conversion) is expected to be 7 March 2016.
Benchmark
Sector Analysis				Gross assets(%)*									Country Analysis								Gross assets(%)*
Financials				35.7									Argentina								14.1
Consumer Staples				21.3									Pakistan								11.2
Telecommunications				8.6									Bangladesh								11.1
Energy				8.0									Romania								8.0
Utilities				6.5									Sri Lanka								7.6
Health Care				6.0									Kazakhstan								7.4
Industrials				5.2									Morocco								5.9
Information Technology				3.1									Ukraine								5.9
Consumer Discretionary Materials				3.0 2.9									Kenya Kuwait								5.7 5.5
Technology				2.2									Vietnam								4.4
				-----									Eurasia								3.2
Total				102.5									Caribbean								3.2
				-----									Slovenia								2.4
Short positions				-1.4									Estonia								2.3
				=====									Other								4.6
																					-----
													Total								102.5
																					-----
													Short positions								-1.4
																					=====
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
	28.02  2015     %	31.03  2015     %	30.04  2015     %		31.05  2015     %	30.06  2015     %		31.07  2015     %				31.08  2015     %			30.09  2015     %		31.10  2015     %					30.11  2015     %		31.12  2015     %		31.01  2016     %
Long	102.0	106.4	105.9		105.8	101.5		102.9				103.1			101.8		99.6					100.3		99.3		102.5
Short	1.6	1.7	1.7		1.1	1.0		1.5				1.5			1.0		1.2					1.7		1.7		1.4
Gross	103.6	108.1	107.6		106.9	102.5		104.4				104.6			102.8		100.8					102.0		101.0		103.9
Net	100.4	104.7	104.2		104.7	100.5		101.4				101.6			100.8		98.4					98.6		97.6		101.1
Company									Country of Risk											% of gross assets
Grupo Financiero Galicia									Argentina											4.0
Hub Power									Pakistan											3.7
MHP									Ukraine											3.7
Square Pharmaceuticals									Bangladesh											3.6
MCB Bank									Pakistan											3.6
KazMunaiGas Exploration Production									Kazakhstan											3.4
Equity Group									Kenya											3.3
Coca Cola Icecek									Eurasia											3.2
Pricesmart									Caribbean											3.2
Banco Macro									Argentina											3.2
Commenting on the markets, Sam Vecht and Emily Fletcher, representing the Investment Manager noted: Portfolio Performance In January, the Company’s NAV fell by 6.2%, outperforming the benchmark by 0.6% (on a US dollar basis with net income reinvested).  Frontier Markets performed poorly in January.  Index performance was weighed down by oil exporters Kuwait and Nigeria (down by 8% and 17% respectively) which both fell as crude prices dropped to new lows.  The environment in Nigeria is looking ever more stressed as companies report ongoing difficulties in transacting sufficient currency volumes to continue normal operations.  Whilst we have substantial underweights in Nigeria and Kuwait, our performance was hurt by the impact of the lower oil price on holdings in Kazakhstan. Other detractors from relative performance included positions in Romania where our position in bank BRD fell 18%.  The stock was impacted by a draft law being debated in parliament which would allow borrowers to walk away from mortgage loans which were in negative equity with no recourse.  We expect that this law is unlikely to be passed in its current form.  Argentina enjoyed a strong month, rising by 3.6%.  Following the surprisingly smooth devaluation of the Peso last month, President Macri’s government are continuing to impress investors with increases in energy prices, a shift towards a credible calculation of CPI, resolution with hold out creditors and renewal of normal international relationships.  A number of stocks did well as a result including portfolio holdings Pampa Energy, which rose 9% and Banco Macro which rose 10% during the month. We also benefited from overweight positions in Bangladesh where the market also ended the month in positive territory, rising by 0.2%. Showing its lack of correlation to global markets, the stock market in Bangladesh showed remarkably low volatility in January.  Two of our holdings reported strong results: Square Pharmaceutical reported EBITDA growth of 34% year-on-year for the third quarter of 2016, driven by strong demand and good cost control. Confectionary company, Olympic Industries reported a growth in net profit of 56% for the first half driven by capacity expansions.  Portfolio Activity We added to a number of positions, taking the opportunity of the market sell off to increase the net exposure of the fund.  We also increased exposure to Argentina, both adding to current positions and initiating a position in Argentinian online retailer, MercardoLibre, as the price fell back to attractive levels.   We further reduced position in Nigeria over the month on the back of our strongly held views that the currency needs to devalue substantially from current levels.  7 March 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.