All information is at 31 May 2013 and unaudited. 
Performance at month end with net income reinvested 
                              One      Three      Six      One   Since 
                            month     months   months     year  launch*
Share price                      2.8%      10.0%    36.3%    43.3%   14.8%
Net asset value                  8.2%       8.6%    29.5%    38.2%   17.3%
MSCI Frontiers Index (NR)        7.8%       9.7%    27.0%    31.6%    8.9%
MSCI EM Markets (NR)             0.0%      -3.4%     7.1%    15.8%   -0.7%
US Dollars:
Net asset value                  5.4%       8.5%    22.5%    36.2%   14.1%
MSCI Frontiers Index (NR)        5.0%       9.5%    20.1%    29.6%    5.9%
MSCI EM Markets (NR)            -2.6%      -3.5%     1.3%    14.1%   -3.5% 
Sources: BlackRock and Standard & Poor's Micropal
* 17 December 2010. 
At month end
US Dollar:
Net asset value - capital only:               160.66c
Net asset value - cum income:                 165.78c
Net asset value - capital only:               105.97p
Net asset value - cum income:                 109.35p
Share price:                                  109.00p
Total assets (including income):              £103.6m
Discount to cum-income NAV:                      0.3%
Gearing:                                          nil
Gearing range (as a % of gross assets):         0-20%
Net yield*:                                      4.8%
Ordinary shares in issue:                  94,766,267 
*Yield calculations are based on dividends announced in the last 12 months as
at the date of the release of this announcement, including the 2012 final
dividend per share of 2.60 cents per share announced on 30 November 2012,the
2013 interim dividend of 2.00 cents per share and the special interim dividend
of 3.40 cents per share announced on 30 May 2013,payable to shareholders on 5
July 2013. The interim and special dividends announced on 30 May 2013 that
total 5.40 cents per share are the total dividends for the financial year
ending 30 September 2013. The special dividend represents the final dividend
which is normally paid in March each year.  Therefore, a more accurate
indication of the projected yield for the financial year to 30 September 2013
would be 3.3% (based on the current ex-dividend share price as at the date of
release of this announcement of 105.50 pence). The Board does not currently
anticipate any further distributions for the current financial year. 
Sector Analysis   Gross assets(%)*         Country Analysis  Gross assets(%)* 
Financials              32.1               Nigeria                    12.5
Consumer Staples        15.0               United Arab Emirates       12.4
Energy                  13.6               Qatar                      12.1
Telecommunication       13.2               Saudi Arabia               11.1
Industrials             10.0               Kazakhstan                  6.9
Healthcare               6.0               Iraq                        6.2
Consumer Discretionary   4.7               Vietnam                     5.8
Materials                2.9               Bangladesh                  4.6
Utilities                1.5               Ukraine                     4.2
Technology               0.8               Sri Lanka                   2.7 
                   -----               Pan Africa                  2.4
Total                   99.8               Croatia                     2.4 
                   -----               Panama                      2.3
Short positions         -1.1               Kuwait                      2.2 

                       =====               Kenya                       2.2
                                           Cambodia                    1.9
                                           Argentina                   1.6
                                           Pakistan                    1.4
                                           Turkmenistan                1.4
                                           Algeria                     1.4
                                           Other                       2.1
                                           Short positions            -1.1

*reflects gross market exposure from contracts for difference (CFDs)

Market Exposure

    30.06  31.07 31.08 30.09  31.10  30.11  31.12  31.01  28.02 31.03 30.04 
     2012   2012  2012  2012   2012   2012   2012   2013   2013  2013  2013 
        %      %     %     %      %      %      %      %      %     %     %  
Long     97.2  101.9  96.5  99.1  101.0  102.0  103.4  105.1  104.1  99.5  99.2 
Short     2.6    2.6   2.5   2.6    4.2    4.9    5.2    3.5    1.2   1.2   1.2 
Gross    99.8  104.5  99.0 101.7  105.2  106.9  108.6  108.6  105.3 100.7 100.4 
Net      94.6   99.3  94.0  96.5   96.8   97.1   98.2  101.6  102.9  98.3  98.0 
Ten Largest Equity Investments 
Company                              Country of Risk          % of gross assets 
Zenith Bank                          Nigeria                       3.7%
Halyk Savings Bank                   Kazakhstan                    2.9%
Etihad Etisalat                      Saudi Arabia                  2.9%
Qatar National Bank                  Qatar                         2.7%
Doha Bank                            Qatar                         2.7%
MHP                                  Ukraine                       2.4%
Kazmunaigas Exploration              Kazakhstan                    2.3%
Air Arabia                           UAE                           2.2%
Qatar Gas Transportation             Qatar                         2.2%
Hatton National Bank                 Sri Lanka                     2.1% 
Commenting on the markets, Sam Vecht, representing the Investment Manager
Market overview 
In May, Frontier Markets returned 5.0% (in US dollar terms with income
reinvested), outperforming mainstream Emerging Markets which returned -2.6%.
Calendar year to date, Frontier Markets have risen by 17%, outperforming
Emerging Markets by 20%. 
The sell-off in mainstream Emerging Markets has been driven by falls in bond
prices on the back of rhetoric from the US Federal Reserve suggesting that
improvements in the US economy could eventually lead to a tapering of the
current quantitative easing program.  Emerging Markets, especially those which
have been beneficiaries of the 'carry-trade', were impacted, with many bonds,
currencies and equities across the developing world posting losses. 
To date, Frontier Markets have been less affected by the speculation over QE,
showing again their lower volatility and lower correlation to Developed
Markets.  Due to the lack of western institutional fund managers following this
asset class, Frontier investors have instead focused on local issues. For
example, investors in the best performing Frontier Market in May, Pakistan,
were cheered by the return to power of Nawaz Sharif, in a decisive election
victory. The strong mandate gives Sharif the opportunity to tackle structural
economic and political problems, beginning with a likely call for IMF
Nigeria continued its strong run, rising by 13% in May. Economic data remains
stable, reserves are approaching $50bn, and inflation has been below target for
four consecutive months. It is expected that inflation will remain in single
digits for the remainder of 2013. Corporate profitability is also improving,
especially in the financial sector, prompting domestic investors to return to
the market, accounting for over 60% of total equity market transactions. 
Serbia was the weakest performing market in May. Despite a rate cut which was
larger than market expectations, investors are looking for further action to
breathe life into a stagnating economy.    
Portfolio overview 
The Company returned 5.4% in May, outperforming the MSCI Frontier Market Index
by 0.4% (all calculations on a US dollar basis with net income reinvested). 
The largest individual contributor to relative performance over the month was
United Arab Emirates property developer, Sorouh Real Estate. The share price
continues to be buoyed by sentiment surrounding a deal to merge with fellow
developer, Aldar Properties, which is due to be completed in June. Beyond the
synergies of the merger, the shares have also been boosted by increasing
liquidity in the Emirati financial sector being invested in the equity market. 
With the stock having risen more than 100% year to date, the Company has fully
exited this position.  
UAE airline, Air Arabia performed well after strong financial results for the
first quarter of 2013. Profits were up 20% as the Sharjah-based budget airline
carried a record 1.4 million passengers in the first quarter.  
Detracting from performance over the month was Croatian Telecom, Hrvatski Tel,
which released financial results for the first quarter of 2013 which were below
Portfolio Activity 
The Company is invested in 55 stocks in across 21 markets, including one short
We initiated a new position in Pakistan energy company, Hub Power. Post
elections, we think that there is an increased likelihood that the government
will be able to solve the debt issues in the power sector.  
We sold a position in MercadoLibre, an Argentinean e-commerce company after the
stock rose by more than 50% year to date.     
Market Outlook 
Frontier Markets have outperformed significantly in 2013 such that the best
performing markets year to date globally are all Frontier Markets.  We have
been vociferous in our preference for Frontier Markets over mainstream Emerging
Markets since the launch of the Company in December 2010 and whilst this has
proven to be a correct view to date, we believe that strong performance should
always give rise to caution.  As a result, mindful of the turbulence in
Emerging Markets, we have somewhat reduced the net exposure of the portfolio,
especially in the African markets where we have seen most activity from
international investors.  With around 140 countries in our Frontier Market
universe, we see ample opportunity to invest where others are not.   
The recently announced MSCI decision to upgrade Qatar and United Arab Emirates
from Frontier Markets to Emerging Markets, with effect from May 2014, reflects
a growing realisation of how far these economies and financial markets have
developed in recent years.  Whilst we welcome the move, it is unlikely to have
any near-term significant impact on how we manage our portfolios. We have been
broadly positive on both of these countries for the last two years as the
combination of economic restructuring post financial crisis, strong earnings
growth, depressed valuations, and high dividend yields offer an attractive
Over the next 12 months, we anticipate strong flows into both the UAE and Qatar
equity markets. This is likely to extend valuations to levels in excess of
target prices and the Company will realise profits in those positions. We will
aim to exit our positions in those markets by May 2014, so that the Company
remains a pure Frontiers portfolio. 
Morocco will move from the Emerging Markets Index to the Frontier benchmark in
November 2013.   We have extensive investment experience in Moroccan equities
and believe that the market is looking increasingly attractive having
underperformed in recent years. The point at which many others are selling is
often a good time to be buying. 
We continue to believe that Frontier Markets with their strong GDP growth,
positive demographic profile, low debt burden and relatively low correlation to
developed markets are a great place to invest for those who have both a long
term horizon and wish to see capital and income growth. 
20 June 2013 
Latest information is available by typing 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 the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement. 
-0- Jun/20/2013 15:25 GMT
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