BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706)
All information is at 31 October 2017 and unaudited.
Performance at month end with net income reinvested.
One month |
Three months |
One year |
Three years |
Five years |
Since Launch* |
|
Sterling: | ||||||
Share price | 4.9 | 7.8 | 19.1 | 39.5 | 129.9 | 93.4 |
Net asset value | 1.9 | 3.3 | 13.5 | 39.8 | 110.4 | 88.5 |
MSCI Frontiers Index (NR) | 2.3 | 6.3 | 17.2 | 22.5 | 87.9 | 57.7 |
MSCI Emerging Markets Index (NR) | 4.6 | 4.6 | 16.3 | 42.3 | 53.6 | 39.9 |
US Dollars: | ||||||
Share price | 3.8 | 8.5 | 29.5 | 15.9 | 89.8 | 65.2 |
Net asset value | 0.9 | 4.1 | 23.4 | 16.1 | 73.7 | 60.8 |
MSCI Frontiers Index (NR) | 1.2 | 7.1 | 27.5 | 1.7 | 54.9 | 34.3 |
MSCI Emerging Markets Index (NR) | 3.5 | 5.4 | 26.5 | 18.1 | 26.6 | 19.1 |
Sources: BlackRock and Standard & Poor’s Micropal
* 17 December 2010.
At month end Ordinary Shares |
|
US Dollar | |
Net asset value - capital only: | 193.94c |
Net asset value - cum income: | 198.76c |
Sterling: | |
Net asset value - capital only: | 146.04p |
Net asset value - cum income: | 149.67p |
Share price: | 156.25p |
Total assets (including income): | £269.3m |
Premium to cum-income NAV: | 4.4% |
Gearing: | nil |
Gearing range (as a % of gross assets): | 0-20% |
Net yield*: | 3.4% |
Ordinary shares in issue: | 179,918,108 |
Ongoing charges**: | 1.4% |
Ongoing charges plus taxation and performance fee: | 2.4% |
*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.6% and includes the 2016 final dividend of 4.00 cents per share declared on 22 November 2016 and paid to shareholders on 17 February 2017 and the 2017 interim dividend of 2.70 cents per share announced on 25 May 2017 and paid to shareholders on 30 June 2017.
**Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 September 2016.
Sector Analysis |
Gross assets(%)* | Country Analysis |
Gross assets(%)* |
|
Financials | 40.5 | Argentina | 21.3 | |
Consumer Staples | 13.9 | Kuwait | 14.6 | |
Energy | 12.5 | Vietnam | 8.8 | |
Health Care | 8.7 | Romania | 8.1 | |
Telecommunication Services | 8.6 | Kazakhstan | 7.9 | |
Materials | 6.5 | Egypt | 6.5 | |
Industrials | 6.1 | Morocco | 5.8 | |
Real Estate | 5.7 | Nigeria | 5.5 | |
Utilities | 4.4 | Ukraine | 5.0 | |
Consumer Discretionary | 3.5 | Sri Lanka | 4.8 | |
Information Technology | 3.0 | Colombia | 4.3 | |
----- | Bangladesh | 4.0 | ||
Total | 113.4 | Kenya | 3.4 | |
----- | Philippines | 2.5 | ||
Short positions | -2.5 | Slovenia | 2.0 | |
===== | Estonia | 1.9 | ||
PAN-Asian | 1.7 | |||
PAN-LATAM | 1.4 | |||
PAN-Middle East | 1.3 | |||
Tanzania | 1.3 | |||
Eurasia | 1.3 | |||
----- | ||||
Total | 113.4 | |||
----- | ||||
Short positions | -2.5 | |||
===== | ||||
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
30.11 2016 % |
31.12 2016 % |
31.01 2017 % |
28.02 2017 % |
31.03 2017 % |
30.04 2017 % |
31.05 2017 % |
30.06 2017 % |
31.07 2017 % |
31.082017 % |
30.09 2017 % |
31.10 2017 % |
|
Long | 102.3 | 108.4 | 115.0 | 115.8 | 112.1 | 108.9 | 105.0 | 103.9 | 106.6 | 107.9 | 107.7 | 113.4 |
Short | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 2.5 |
Gross | 102.3 | 108.4 | 115.0 | 115.8 | 112.1 | 108.9 | 105.0 | 103.9 | 106.6 | 107.9 | 107.7 | 115.9 |
Net | 102.3 | 108.4 | 115.0 | 115.8 | 112.1 | 108.9 | 105.0 | 103.9 | 106.6 | 107.9 | 107.7 | 110.9 |
Ten Largest Equity Investments
Company | Country of Risk | % of gross assets |
The National Bank of Kuwait | Kuwait | 4.1 |
Grupo Financiero Galicia | Argentina | 3.7 |
Irsa Inversiones GDR | Argentina | 3.2 |
Pampa Energia | Argentina | 3.0 |
Halyk Savings Bank | Kazakhstan | 3.0 |
Mobile Telecommunications | Kuwait | 2.8 |
Equity Group | Kenya | 2.7 |
MHP | Ukraine | 2.7 |
Grupo Supervielle ADR | Argentina | 2.7 |
Burgan Bank | Kuwait | 2.6 |
Commenting on the markets, Sam Vecht and Emily Fletcher, representing the Investment Manager noted:
In October, the Company’s NAV rose by +0.9%* on a US Dollar basis with net income reinvested. The MSCI Frontier benchmark rose +1.2%*** whilst the MSCI Emerging Markets Index returned 3.5%*** on a US Dollar basis over the same period.
Vietnam (+7.6%*) was the strongest performing country in frontier markets over the month, buoyed by the strong performance of Asian markets. Macroeconomic data shows that growth has been stronger than expected with GDP growth accelerating to 6.4% in Q3 and export growth 21% year-on-year. Our holding in Masan Group rose 8% as the company continued to execute its announced buyback of 101m shares, 9.5% of the company. We have reduced our holding as the stock has rallied more than 40% since the lows in July.
Argentina (+5.6%*) continued its strong run in October. President Macri’s Cambiemos party performed better than expected in midterm elections winning in 13 out of 24 electoral districts and obtaining 42% of the national vote. The Company benefited from a position in Real estate company, IRSA which rose 18.6% following the elections.
In Nigeria, our holdings in two banks rose notably with Zenith Bank up 8.4% and UBA up 10.6%. Both banks reported better than expected third quarter results during the month. Brent crude oil prices ended the month above $60/bbl for the first time since mid 2015 and this, together with the recent increases that we have seen in Central Bank foreign reserves, up more than $10bn in the last 12 months, has been supportive for the equity market.
The 30% rise in the oil price since the lows in June was broadly supportive of the 11% position in the energy sector within the portfolio. Our position in Ecopetrol was a notable performer in this regard, rising nearly 17% over the month.
However, the performance of the Kuwaiti market (-3.5%*) weighed on returns. As the best performing market in the middle east calendar year to date, this illiquid market suffered as investors withdrew money from the region on increased political tensions.
Frontier Markets continue to exhibit strong GDP growth and low government debt levels, and represent an opportunity to invest in companies with strong cash flow and high dividend yields, on some of the lowest valuations in the world.
*Source: BlackRock, as at end October 2017
** Source: BlackRock, Bloomberg, as at end October 2017
*** Source: BlackRock, MSCI, as at end October 2017
24 November 2017
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