BlackRock Frontiers Investment Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, June 16
BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706)
All information is at 31 May 2025 and unaudited.
Performance at month end with net income reinvested.
| One | Three | One | Three | Five | Since |
Sterling: |
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Share price | 5.2 | 0.0 | 10.6 | 39.2 | 115.4 | 171.4 |
Net asset value | 1.6 | -3.2 | 6.8 | 28.6 | 102.6 | 181.1 |
Benchmark (NR)** | 0.4 | -2.0 | 5.0 | 0.5 | 36.6 | 90.1 |
MSCI Frontiers Index (NR) | 5.6 | 1.2 | 10.9 | 14.0 | 37.5 | 98.6 |
MSCI Emerging Markets Index (NR) | 3.3 | -0.7 | 6.7 | 8.7
| 29.0 | 71.1 |
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US Dollars: |
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Share price | 6.2 | 7.1 | 17.2 | 49.1 | 135.3 | 136.0 |
Net asset value | 2.6 | 3.6 | 13.1 | 37.8 | 121.3 | 144.1 |
Benchmark (NR)** | 1.4 | 5.0 | 11.2 | 7.5 | 49.0 | 65.7 |
MSCI Frontiers Index (NR) | 6.6 | 8.4 | 17.4 | 22.0 | 50.0 | 71.8 |
MSCI Emerging Markets Index (NR) | 4.3 | 6.3 | 13.0 | 16.3 | 40.7 | 47.9 |
Sources: BlackRock and Standard & Poor's Micropal
* 17 December 2010.
** The Company's benchmark changed from MSCI Frontier Markets Index to MSCI Emerging ex Selected Countries + Frontier Markets + Saudi Arabia Index (net total return, USD) effective 1/4/2018.
At month end |
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US Dollar |
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Net asset value - capital only: | 211.58c |
Net asset value - cum income: | 218.50c |
Sterling: |
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Net asset value - capital only: | 156.89p |
Net asset value - cum income: | 162.02p |
Share price: | 157.50p |
Total assets (including income): | £306.7m |
Discount to cum-income NAV: | 2.8% |
Gearing: | Nil |
Gearing range (as a % of gross assets): | 0-20% |
Net yield*: | 4.8% |
Ordinary shares in issue**: | 189,270,248 |
Ongoing charges***: | 1.41% |
Ongoing charges plus taxation and performance fee****: | 2.33% |
*The Company's yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 4.8% and includes the 2024 final dividend of 6.00 cents per share, declared on 5 December 2024 paid to shareholders on 14 February 2025 and the 2025 interim dividend of 3.65 cents per share, declared on 29 May 2025, payable to shareholders on 24 June 2025.
** Excluding 52,552,553 ordinary shares held in treasury.
***The Company's ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for Year ended 30 September 2024.
**** The Company's ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses and including performance fees but excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for Year ended 30 September 2024.
Sector | Gross market value as a % of net assets |
| Country | Gross market value as a % of net assets |
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Financials | 47.9 |
| Saudi Arabia | 13.9 |
Consumer Discretionary | 13.2 |
| Indonesia | 11.8 |
Real Estate | 12.7 |
| United Arab Emirates | 10.9 |
Industrials | 11.8 |
| Turkey | 9.6 |
Materials | 9.0 |
| Greece | 7.5 |
Information Technology | 7.2 |
| Poland | 7.2 |
Communication Services | 6.0 |
| Hungary | 6.6 |
Consumer Staples | 4.8 |
| Vietnam | 6.2 |
Health Care | 3.5 |
| Kazakhstan | 5.8 |
Energy | 1.8 |
| Georgia | 5.1 |
| ----- |
| Pakistan | 5.1 |
| 117.9 |
| Multi-International | 4.9 |
| ----- |
| Philippines | 4.2 |
Short Positions | -3.4 |
| Thailand | 4.0 |
| ----- |
| Kenya | 3.0 |
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| Bangladesh | 2.9 |
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| Malaysia | 2.9 |
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| Czech Republic | 2.5 |
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| Chile | 1.7 |
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| Egypt | 1.2 |
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| Cambodia | 0.9 |
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| ----- |
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| 117.9 |
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| ----- |
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| Short Positions | -3.4 ----
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*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
| 30.06 2024 % | 31.07 2024 % | 31.08 2024 % | 30.09 2024 % | 31.10 2024 % | 30.11 2024 % | 31.12 2024 % | 31.01 2025 % | 28.02 2025 % | 31.03 2025 % | 30.04 2025 % | 31.05 2025 % |
Long | 118.4 | 116.1 | 112.3 | 107.9 | 110.1 | 109.6 | 112.4 | 118.5 | 121.0 | 118.5 | 111.3 | 117.9 |
Short | 2.9 | 3.5 | 3.6 | 3.9 | 3.6 | 3.3 | 4.0 | 4.2 | 3.9 | 4.3 | 3.8 | 3.4 |
Gross | 121.3 | 119.6 | 115.9 | 111.8 | 113.7 | 112.9 | 116.4 | 122.7 | 124.9 | 122.8 | 115.1 | 121.3 |
Net | 115.5 | 112.6 | 108.7 | 104.0 | 106.5 | 106.3 | 108.4 | 114.3 | 117.1 | 114.2 | 107.5 | 114.5 |
Ten Largest Investments
Company | Country of Risk | Gross market value as a % of net assets |
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Bank Mandiri | Indonesia | 5.3 |
Emaar Properties | United Arab Emirates | 5.2 |
Al Rajhi Bank | Saudi Arabia | 5.0 |
OTP Bank | Hungary | 4.1 |
PZU | Poland | 4.1 |
FPT | Vietnam | 4.1 |
Etihad Etisalat | Saudi Arabia | 3.5 |
Eldorado Gold | Turkey | 3.4 |
Akbank | Turkey | 3.4 |
LPP | Poland | 3.2 |
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Commenting on the markets, Sam Vecht and Emily Fletcher, representing the Investment Manager noted:
The Company's NAV rose by 2.6% in May, outperforming its benchmark, the MSCI Frontier + Emerging Markets ex Selected Countries Index ("Benchmark Index"), which returned +1.4%. For reference, the MSCI Emerging Markets Index returned +4.3% while the MSCI Frontier Markets Index returned +6.6% over the same period. All performance figures are on a US Dollar basis with net income reinvested.
Global equity markets maintained their upward momentum in May, supported by resilient economic data and hopes that US interest rates may be nearing a peak. Returns in our universe were led by gains in the Asian markets. Within EM Asia, Vietnam surged +11.5%, bouncing back strongly from recent weakness on hopes of a trade agreement and tariff resolution with the US. Indonesia also rallied, up +9.0%, bouncing off oversold levels. Meanwhile, Emerging European markets saw significant strength, powered by resilience in banking stocks, especially in Greece (+12.6%) and the Czech Republic (+7.0%).
A diverse set of holdings contributed to May performance. DigiPlus, an online gaming company in the Philippines surged by 32.3% in May, re-rating upwards, buoyed by investor enthusiasm as it continued to show growth in users. Bank Mandiri in Indonesia rose by 10.5%, after reporting Q1 results inline with expectations. Bank of Georgia climbed by 12.4% as the bank reported a significant increase in net interest income and pretax profit for Q1 2025, reflecting its ability to continue to expand profitably not only within Georgia, but also Armenia following the recent acquisition. Athens International Airport shares increased by 9.7%, as they brought forward a capital investment plan to accommodate growing passenger numbers. The structure of the spending will allow them to increase their regulatory asset base, driving future returns.
Not all holdings fared as well. Kaspi, online Kazakh financial platform, declined by 9.2% despite reporting a 21% year-over-year increase in revenue and a 16% rise in net income for Q1 2025 as results slightly missed expectations and analysts were concerned that full year results could be hit by increased regulations. Chilean beverages company, Compania Cervecerias Unidas fell by 11.2% as the company faced pricing pressure in key export markets and rising input costs tied to global commodity price volatility, despite reporting a Q1 profit of $60 million. Polish clothing retailer, LPP, slipped by 5.9% after the company issued a cautious outlook, citing weak foot traffic across retail locations and inflation driven margin pressures, even as it reiterated plans to double its annual revenue by 2027 through the rapid expansion of its budget brand Sinsay.
We made a few tactical adjustments in May, increasing our position in Turkiye Is Bankasi, reflecting our view that liquidity conditions in Turkey are gradually improving and using the recent sell off in the market on political concerns to add on weakness. We also added to Lucky Cement (Pakistan), as we believe that the economic adjustment program in the country remains on track which should provide support to market multiples.
Looking ahead, we remain constructive on the outlook for smaller emerging and frontier markets. As inflation trends lower in many of our target countries, we expect central banks to resume rate cuts-especially once US bond yields stabilise. This backdrop sets the stage for a cyclical recovery in domestically driven economies. Valuations across our investment universe remain attractive, both in absolute and relative terms. Many of these markets are still under-researched, and we believe this creates fertile ground for finding high-conviction, alpha-generating opportunities.
Sources:
1BlackRock as at 31 May 2025
2MSCI as at 31 May 2025
16 June 2025
ENDS
Latest information is available by typing www.blackrock.com/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.
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