Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 31 May 2016 and unaudited.
Performance of ordinary share portfolio at month end with net income reinvested.
							One			Three				Six			One						Three		Since
							month			months				months			year						years		Launch*
							%			%				%			%						%		%
Sterling:
Share price							1.8			6.6				11.0			0.9						15.1		32.2
Net asset value							2.7			4.3				5.3			-3.2						13.3		32.9
MSCI Frontiers Index (NR)							1.7			2.4				6.3			-4.6						5.0		14.4
MSCI Emerging Markets Index (NR)							-3.1			4.9				3.5			-13.6						-10.5		-11.2
US Dollars:
Share price							1.2			11.4				7.4			-3.7						10.7		23.8
Net asset value							2.0			8.9				1.9			-7.5						9.0		24.3
MSCI Frontiers Index (NR)							1.0			6.9				2.8			-9.0						0.8		6.8
MSCI Emerging Markets Index (NR)							-3.7			9.6				0.0			-17.6						-14.1		-17.1
Sources: BlackRock and Standard & Poor’s Micropal * 17 December 2010.
At month end Ordinary Shares
US Dollar
Net asset value - capital only:																			158.01c
Net asset value - cum income:																			162.15c
Sterling:
Net asset value - capital only:																			108.56p
Net asset value - cum income:																			111.40p
Share price:																			112.50p
Total assets (including income):																			£183.1m
Premium to cum-income NAV:																			1.0%
Gearing:																			nil
Gearing range (as a % of gross assets):																			0-20%
Net yield*:																			4.1%
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. On 10 June 2016 a downward foreign exchange fair value adjustment of approximately 30.9% was made to the Company’s Nigerian assets.  This adjustment to the foreign exchange rate was derived from the non-deliverable forward market price.  At the close of business on 10 June 2016 Nigeria represented approximately 70bps (0.7%) of the Company’s net assets, substantially below the MSCI Frontier Index weighting of circa 1240 bps (12.4%).
The following relates specifically to the ordinary share portfolio.
Benchmark
Sector Analysis				Gross assets(%)*									Country Analysis								Gross assets(%)*
Financials				36.2									Argentina								14.1
Consumer Staples				18.5									Pakistan								13.4
Materials				11.9									Romania								10.3
Utilities				8.3									Bangladesh								9.4
Telecommunications				7.8									Kazakhstan								8.3
Energy				7.2									Sri Lanka								6.8
Health Care				6.0									Ukraine								6.0
Information Technology				4.8									Morocco								5.7
Consumer Discretionary				4.1									Kenya								5.6
Industrials				4.0									Kuwait								5.6
													Saudi Arabia								4.7
				-----									Vietnam								4.1
Total				108.8									Caribbean								2.8
				-----									Eurasia								2.5
Short positions				0.0									Estonia								2.4
				=====									Slovenia								2.1
													Other								5.0
																					-----
													Total								108.8
																					-----
													Short positions								0.0
																					=====
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
	30.06  2015     %	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     %
Long	101.5	102.9	103.1		101.8	99.6		100.3				99.5			102.5					102.2		108.1		109.2		108.8
Short	1.0	1.5	1.5		1.0	1.2		1.7				1.7			1.4					1.1		1.2		1.3		0.0
Gross	102.5	104.4	104.6		102.8	100.8		102.0				101.2			103.9					103.3		109.3		110.5		108.8
Net	100.5	101.4	101.6		100.8	98.4		98.6				97.8			101.1					101.1		106.9		107.9		108.8
Ten Largest Equity Investments
Company									Country of Risk									% of gross assets
KazMunaiGas Exploration Production									Kazakhstan									4.0
Grupo Financiero Galicia									Argentina									3.7
MCB									Pakistan									3.6
Square Pharmaceuticals									Bangladesh									3.3
Banco Macro									Argentina									3.3
Kuwait Food									Kuwait									3.3
MHP									Ukraine									3.2
Pampa Energia									Argentina									3.1
Equity Group									Kenya									3.1
S.N.G.N. Romgaz									Romania									3.1
Commenting on the markets, Sam Vecht and Emily Fletcher, representing the Investment Manager noted: Portfolio In May, the Company’s NAV rose by 2.0%, outperforming the Frontier benchmark by 1.0% (on a US Dollar basis with net income reinvested). The MSCI Emerging Markets Index declined by 3.7% over the same period. Kazakh names, Halyk Bank, KCell, and KazMunaiGas were all among the month’s largest individual contributors, rising by 37%, 41% and 12% respectively over the month.  Having substantially underperformed other Frontier Markets over the past year, the companies rallied off multi-year lows following the increase in the crude oil price (which is up by more than 80% from January lows).  Two Argentinian holdings showed notable performance during the month.  Utility, Pampa Energia, rose by 15% following the announcement that Petrobras had accepted an offer for their Argentinean subsidiary.  Investors were relieved that Pampa will not be paying a substantial premium for the assets and that they will be able to finance the deal through internal resources.  Given the expected synergies from the deal, we remain positive on the stock.  Technology company, Globant, was also a strong performer, rising by 13%.  The company reported Q1 results which were above analyst expectations and raised their guidance for the year on the back of continued strong demand from their key customers. We also benefited from our continued overweight positions in both Bangladesh and Pakistan which were among the strongest Frontier Markets during the month, rising by 9% and 3% respectively.   Conversely, the Company’s underweight exposure to Nigeria weighed on performance.  The Monetary Policy Committee announced on 24 May that they would look to move away from the rigid foreign exchange policy that they have held for the last year and introduce a flexible exchange rate.  The local market subsequently rallied, up by 16% over the month, however, to date, there have been no further details released on how the Central Bank will enact this new policy.  We remain of the view that the currency needs to be devalued very substantially before the market becomes interesting for investors.  Our position in Eurasian Coke bottler, Coca-Cola Icecek, was the largest detractor over the period, falling by 18%, after the company reported results which missed analyst expectations.  In addition, increased political concerns in Turkey, the country of listing for the stock, also hurt performance.  Portfolio Activity The Company participated in the IPO of Egyptian hospital, Cleopatra, as we believe that the company stands to benefit from structural drivers including an underpenetrated market and an aging population. During the month we trimmed some of our Pakistani exposure, taking profits, as the market rallied on speculation over a potential MSCI upgrade to emerging markets status, we remain overweight the market. 20 June 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.