BLACKROCK FRONTIERS INVESTMENT TRUST PLC: Interim Management Statement
BLACKROCK FRONTIERS INVESTMENT TRUST PLC: Interim Management Statement BLACKROCK FRONTIERS INVESTMENT TRUST PLC
Interim Management Statement - period from 1 October 2012 to 31 January 2013
To the members of the BlackRock Frontiers Investment Trust plc
This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure & Transparency Rules. It should not be relied on by any other party for any other reason.
This interim management statement relates to the period from 1 October 2012 to 31 January 2013, and contains information that covers this period, and up to the date of publication of this interim management statement.
The Company's investment objective is to achieve long term capital growth from investment in companies operating in Frontier Markets or whose stocks are listed on the stock markets of such countries.
Share price, NAV and share rating
As at As at As at 30 As at 31
31 January 31 December 30 November 31 October
2013 2012 2012 2012 Sterling
Share Price 94.25p 82.50p 81.38p 81.25p Net Asset Value per share 95.34p 87.78p 85.89p 84.92p Discount to cum income NAV 1.1% 6.0% 5.3% 4.3% US Dollar Share Price 149.44c 134.11c 130.42c 130.91c Net Asset Value per share 151.17c 142.69c 137.65c 136.82c Discount to cum income NAV 1.1% 6.0% 5.3% 4.3%
Month Month Month Month
ended ended ended ended Launch to
31 January 31 December 30 November 31 October 31 January
2013 2012 2012 2012 2013**
% % % %
% Sterling Share price performance* 16.2 1.4 0.2 0.6 (0.7) NAV performance* 10.5 2.2 1.1 1.3 2.3 MSCI Frontiers Index (NR)* 10.2 0.6 2.2 (0.5) (4.9) MSCI EM Markets (NR)* 3.9 3.4 1.8 (0.4) (0.4) US Dollar NAV performance* 7.8 3.7 0.6 1.1 4.1 MSCI Frontiers Index (NR)* 7.5 2.1 1.7 (0.7) (3.3) MSCI EM Markets Index (NR)* 1.4 4.9 1.3 (0.6) 1.3
*Net asset value returns are calculated on cum-income NAVs and based on the assumption that dividends are reinvested on the ex-dividend date. Share price performance is calculated using closing mid-prices and based on the assumption that dividends are reinvested on the ex-dividend date. Benchmark indices are calculated on a net return (NR) basis with net income reinvested. When calculated on a net return basis, dividends are treated as reinvested after the deduction of withholding taxes, using (for international indices) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties.
**The Company launched on 17 December 2010.
Sources: BlackRock and Standard & Poor's Micropal
Ten Largest Equity Investments at 31 January 2013 (in alphabetical order)
Company Country of Risk Sector
FBN Holdings Nigeria Financials First Gulf Bank United Arab Emirates Financials Halyk Savings Bank Kazakhstan Financials Hrvatski Telekomunikacije Croatia Telecommunications Kazmunaigas Exploration Kazakhstan Energy MHP Ukraine Consumer Staples Orascom Telecommunications Algeria Telecommunications Petrovietnam Fertilizers
& Chemicals Vietnam Materials Qatar Electricity & Water Qatar Utilities Zenith Bank Nigeria Financials
Financial position as at 31 January 2013
Gross Assets (£m) £90.4m Ordinary Shares in Issue 94,766,267 Actual Gearing 0% Discount to cum-income NAV 1.1% Average discount (based on cum inc 2.5% NAV) over the period since launch to 31 January 2013
31.01 31.12 30.11 31.10 2013 2012 2012 2012
% % % % Long 105.1 103.4 102.0 101.0 Short 3.5 5.2 4.9 4.2 Gross 108.6 108.6 106.9 105.2 Net 101.6 98.2 97.1 96.8
Portfolio Analysis as at 31 January 2013
Sector Analysis Gross assets(%)* Country Analysis Gross assets(%)*
Financials 30.5 Nigeria 15.8 Consumer Staples 15.7 Qatar 11.1 Telecommunication 14.3 United Arab Emirates 11.0 Industrials 11.8 Kazakhstan 9.1 Energy 10.1 Saudi Arabia 9.0 Materials 7.1 Vietnam 6.1 Healthcare 6.5 Ukraine 5.0 Consumer Discretionary 5.6 Bangladesh 4.9 Utilities 2.8 Iraq 4.7 Technology 0.7 Panama 4.3
------ Argentina 3.0 Total 105.1 Croatia 2.9
------ Algeria 2.8 Short positions 3.5 Pan Africa 2.3
==== Cambodia 2.1
Sri Lanka 1.9
Republic of Congo 1.0
Short positions - 3.5
*reflects gross market exposure from contracts for difference (CFDs)
Material Events & Transactions
The Company announced its annual results for the year ended 30 September 2012 on 30 November 2012. The Company also announced the payment of a final dividend of 2.60 cents, payable on 8 March 2013 to shareholders on the register at 1 February 2013.
The BlackRock Frontiers Investment Trust NAV increased by 2.3% over the period since launch and the share price fell by 0.7%. For the four months since the date of the annual report to 31 January 2013, the Company's NAV rose by 15.7% and the share price rose by 18.8% (all performance figures calculated in sterling terms with net income reinvested). Over the period since launch the Company's shares have traded at an average discount of 2.5%, and at 31 January 2013 were trading at a discount to the cum-income NAV of 1.1%.
Net Asset Value
The Company announces its NAV on a daily basis, which can be accessed via the London Stock Exchange Website, or via http://blackrock.co.uk/brfi under the News tab.
The unaudited net asset values for BlackRock Frontiers Investment Trust plc at close of business on 14 February 2013 were:
Capital only Sterling (pence) 99.02p Including current year income Sterling (pence) 99.11p Capital only US dollar (cents) 153.74c Including current year income US dollar (cents) 153.87c
At 31 January 2013, the Company was fully invested, with positions in 55 stocks and 3 short positions across 25 markets.
The Board is not aware of any other material events or transactions occurring between 1 October 2012 and the date of publication of this interim management statement which would have a material impact on the financial position of the Company. Latest information is available by typing www.blackrock.co.uk/its on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).
Contact details: Sarah Beynsberger BlackRock Investment Management (UK) Limited, Company Secretary Tel: 020 7743 2639
15 February 2013
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