Final Results

BlackRock Frontiers Investment Trust plc
(LEI: 5493003K5E043LHLO706)

Annual results announcement for the year ended 30 September 2022

PERFORMANCE RECORD

The Company’s financial statements are presented in US Dollars. The Company’s shares are listed on the London Stock Exchange and quoted in British Pound Sterling. The British Pound Sterling amounts for performance returns shown below are presented for convenience. The difference in performance returns measured in US Dollars and in British Pound Sterling reflects the change in the value of British Pound Sterling versus the US Dollar over the period.

	As at 30 September 2022	As at 30 September 2021
US Dollar
Net assets (US$’000)¹	302,656	352,778
Net asset value per ordinary share (cents)	159.86	186.33
Ordinary share price (mid-market)² (cents)	142.61	165.18
	----------------	----------------
British Pound Sterling
Net assets (£000)^1,2	271,124	261,627
Net asset value per ordinary share² (pence)	143.21	138.19
Ordinary share price (mid-market) (pence)	127.75	122.50
Discount³	10.8%	11.4%
	==========	==========

Performance	For the year ended 30 September 2022 %	For the year ended 30 September 2021 %	Since inception⁴ %
US Dollar
Net asset value per share (with dividends reinvested)³	-10.9	+53.0	+59.8
Benchmark Index (NR)^5,6	-7.3	+27.3	+35.3
MSCI Frontier Markets Index (NR)⁶	-25.2	+32.2	+24.7
MSCI Emerging Markets Index (NR)⁶	-28.1	+18.2	+5.1
Ordinary share price (with dividends reinvested)³	-10.0	+42.8	+40.6
	----------------	----------------	----------------
British Pound Sterling
Net asset value per share (with dividends reinvested)³	+7.7	+46.7	+122.6
Benchmark Index (NR)⁶	+12.0	+22.1	+87.5
MSCI Frontier Markets Index (NR)⁶	-9.6	+26.8	+74.2
MSCI Emerging Markets Index (NR)⁶	-13.2	+13.3	+46.7
Ordinary share price (with dividends reinvested)³	+8.7	+36.9	+95.6
	==========	==========	==========

¹ The change in net assets reflects dividends paid and portfolio movements during the year.

² Based on an exchange rate of US$1.1163 to £1 at 30 September 2022 and US$1.3484 to £1 at 30 September 2021.

³ Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended 30 September 2022.

⁴ The Company was incorporated on 15 October 2010 and its shares were admitted to trading on the London Stock Exchange on 17 December 2010.

⁵ With effect from 1 April 2018, the Benchmark Index changed to the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index. Prior to 1 April 2018, the Benchmark Index was the MSCI Frontier Markets Index. The performance returns of the Benchmark Index since inception have been blended to reflect this change.

⁶ Net return (NR) indices calculate the reinvestment of dividends net of withholding taxes.

Sources: BlackRock and Datastream.

CHAIRMAN’S STATEMENT

OVERVIEW
Over the year to 30 September 2022, your Company’s Net Asset Value per share decreased by -10.9%, compared to a decrease in the Benchmark Index of -7.3%, resulting in an underperformance of 3.6% (in US Dollar terms with dividends reinvested). As a result of the strong appreciation of the US Dollar, for Sterling based shareholders, the equivalent return for the year was +7.7%, with the benchmark returning +12.0% (in Sterling terms with dividends reinvested).

Since the financial year end, and up to close of business on 5 December 2022, the Company’s NAV has increased by 9.4% compared with an increase in the Benchmark Index of 5.2% over the same period (in US Dollar terms with dividends reinvested).

Our portfolio managers provide a detailed description of the key contributors and detractors to performance during the period, insight into the positioning of the portfolio and their views on the outlook for the forthcoming year in their report which follows.

REVENUE RETURN AND DIVIDENDS
The Company’s revenue return per share for the year amounted to 6.35 cents (2021: 7.09 cents). The Directors are recommending the payment of a final dividend of 4.25 cents per ordinary share (2021: 4.25 cents) in respect of the year ended 30 September 2022. Together with the interim dividend of 2.75 cents per share (2021: 2.75 cents), this represents a total of 7.00 cents per share (2021: 7.00 cents). This year’s dividend has been funded through current year revenue and has been supported by a small proportion of brought forward revenue reserves representing 9.4% of the total dividend. The Board continues to monitor closely the level of revenue generated by the Company's investment portfolio and will aim to maintain the dividend at 7.00 cents per share for the next financial year, through a combination of, primarily, dividend income supported by revenue reserves where deemed necessary.

Subject to shareholder approval, this dividend will be paid on 14 February 2023 to shareholders on the register at close of business on 6 January 2023. The ex-dividend date will be 5 January 2023. The Company does not have a policy of actively targeting income; nevertheless, this return represents an attractive yield of 4.5% (please see the Glossary in the Company’s Annual Report for the year ended 30 September 2022 for the inputs to the yield calculation).

SHARE CAPITAL
For the year under review, the Company’s ordinary shares have traded at an average discount to NAV of 9.2% and were trading at a discount of 10.4% on a cum-income basis at 5 December 2022, the latest practicable date prior to the issue of this report.

The Directors recognise the importance to investors of ensuring that the Company’s share price is as close to its underlying NAV as possible. Accordingly, the Directors monitor the share price closely and will consider the issue of shares at a premium or the repurchase at a discount to help balance demand and supply in the market. However, the Board has not seen fit to buy back any of its shares in recent years, and believes that the best way to encourage a narrowing of the discount at which the Company's shares trade is to deliver strong investment performance and to continue to communicate the unique attractiveness of our investment proposition to both existing and new shareholders.

As at 30 September 2022, the Company had 189,325,748 ordinary shares in issue, including 52,497,053 shares held in treasury. No shares were issued or bought back during the year under review or post year end from 1 October 2022 up to the date of this report.

The Directors have been granted the authority by shareholders to buy back up to 14.99% of the Company’s issued share capital (excluding any shares held in treasury) and also to issue or sell from treasury on a non-pre-emptive basis up to 10% of the Company’s issued share capital. Both authorities expire on the conclusion of the forthcoming Annual General Meeting (AGM) to be held on Tuesday, 7 February 2023, at which time resolutions will be put to shareholders seeking a renewal of these powers. Further information can be found in the Directors’ Report in the Company's Annual Report for the year ended 30 September 2022.

GEARING
One of the advantages of the investment trust structure is that the Company can use gearing with the objective of increasing portfolio returns over the long term. The Company utilised its ability to gear the portfolio through its CFD exposure during the year. As at the year-end, net gearing stood at 1.0%.

BOARD COMPOSITION
As at 30 September 2022 the Board consisted of six independent non-executive Directors. As part of its succession plan the Board regularly considers its composition to ensure that a suitable balance of skills, knowledge, experience, independence and diversity is achieved to enable the Board to effectively discharge its duties. As I mentioned in the Half-yearly Report, as part of the Board’s ongoing succession plan, we appointed two new Directors during the year, Lucy Taylor-Smith and Elisabeth Airey. They each bring a wealth of relevant experience and expertise and I am pleased to be able to say that both have contributed greatly during our meetings this year.

The Directors submit themselves for re-election annually and therefore all Directors will each stand for re-election at the forthcoming AGM.

SENIOR INDEPENDENT DIRECTOR
In accordance with the UK Corporate Governance Code, the Board has resolved to appoint Katrina Hart as Senior Independent Director, with effect from publication of the annual report. Further information on the role and responsibilities of the Senior Independent Director can be found in the Company's Annual Report for the year ended 30 September 2022.

DIRECTORS’ REMUNERATION
Having reviewed the Directors’ fees during the year the Board is seeking shareholder approval to increase the maximum limit on aggregate Directors’ fees payable in any one year from £200,000 to £250,000. This will ensure that there is sufficient headroom to accommodate the additional Directors appointed last year and any potential increase in the future as may be necessary. Please be assured that there is no intention to increase the fees paid up to the new maximum cap in the short term. The change in Directors’ fees over the last five years is set out in the Directors’ Remuneration Report. Further information on the rationale for the proposed increase in the maximum cap on Directors' remuneration can be found in the Directors’ Report in the Company's Annual Report for the year ended 30 September 2022 and a resolution approving this increase is included in the Notice of the AGM.

CORPORATE GOVERNANCE
The Board takes its governance responsibilities very seriously and follows best practice requirements as closely as possible. The UK Code of Corporate Governance (the UK Code) requires enhanced disclosure setting out how we, as Directors, have fulfilled our duties in taking into account the wider interests of stakeholders in promoting the success of the Company. As part of this reporting, and given the environmental, social and governance (ESG) issues that are faced by many companies within the Company’s Benchmark Index and the Company’s investment portfolio, we have provided a detailed report on these matters in the Strategic Report below. We have also provided more information on our Manager’s approach to shareholder engagement and voting activities.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
ESG issues can present both opportunities and risks to long-term investment performance. While the Company does not have an ESG investment objective or exclude investments based only on ESG criteria, these ethical and sustainability issues are a consideration of the Company, and your Board is committed to a diligent oversight of the activities of our Investment Manager in these areas. The frontier markets in which the Company can invest are home to over 3 billion of the world’s population and through our investments we bring much needed capital to markets largely overlooked by developed world investors.

We believe that the companies in which the portfolio is invested should operate within a healthy ecosystem of all their stakeholders whether these are shareholders, employees, customers, regulators or suppliers and that this can aid the sustainability of long-term returns.

ANNUAL GENERAL MEETING
I am pleased to report that it is the Board’s intention that this year’s AGM will be held in person at 12:30 p.m. on Tuesday, 7 February 2023 at the offices of BlackRock at 12 Throgmorton Avenue, London EC2N 2DL.

At present, UK Government restrictions on public gatherings are no longer in force in connection with COVID-19 and therefore we intend to hold the AGM in the normal way with physical attendance by shareholders. However, although unlikely, shareholders should be aware that it is possible that such restrictions could be reimposed if required prior to the date of the AGM and therefore we recommend that as well as physical attendance, shareholders also cast their votes by proxy to ensure that their votes are counted.

Shareholders who intend to attend the AGM should ensure that they have read the venue requirements for entry to the AGM. These requirements, along with further information on the business of this year’s AGM, can be found in the Directors’ Report.

The Board very much looks forward to meeting shareholders and answering any questions you may have on the day. We hope you can attend this year’s AGM.

SHAREHOLDER COMMUNICATION
We appreciate how important access to regular information is to our shareholders. To supplement our Company website, we now offer shareholders the ability to sign up to the Trust Matters newsletter which includes information on the Company as well as news, views and insights. Further information on how to sign up is included on the inside cover of in the Company's Annual Report for the year ended 30 September 2022.

OUTLOOK
Many of the developed markets are experiencing soaring inflation and the spectre of recession. As governments and central banks grapple with the challenges brought about by the COVID-19 pandemic and the effects of the Russia-Ukraine conflict, our diverse and uncorrelated investment universe looks ever more attractive.

Our Company provides shareholders with the opportunity to invest in countries that we consider to have superior growth prospects, favourable population demographics, relatively low levels of debt and more normal levels of inflation. In many cases, these markets continue to trade at a significant valuation discount relative to both the developed markets and their own history. The Company’s dividend yield also remains attractive and may become ever more valuable to shareholders seeking income against a backdrop of high inflation and increasing interest rates as central banks act to bring stability to the developed markets.

Success in these complex frontier markets requires in-depth research and analysis and, in particular, boots on the ground. I am therefore pleased to be able to report that our portfolio managers were able to resume travel this year following the removal of the COVID-19 restrictions and visited many countries, including Egypt, Kazakhstan, Saudi Arabia, Turkey, the United Arab Emirates (UAE) and Uzbekistan to name just a few. They met with the management of the companies in which we invest, as well as government officials, economists and other parties with local knowledge, a vital component of the research process.

We have long extolled the diversification benefits of the frontier markets. This relative economic stability and, in many cases, countries which are in the growth phase of their economic cycles, in our view further strengthens the investment case for exposing an investment portfolio to the frontier markets. We believe that, collectively, these factors and attributes provide the long-term shareholder with a compelling investment opportunity.

AUDLEY TWISTON-DAVIES
Chairman
7 December 2022

INVESTMENT MANAGER’S REPORT

MARKET REVIEW
The world today is a drastically different place from when we last wrote this report. If we gave you two year-on-year inflation figures of 8% and 3% at the start of 2022 and asked you to tag them as Vietnam vs Germany, you would likely laugh at a rather obvious question. Alas, the macro environment today has turned a lot of conventional wisdom and common knowledge on its head. We are seeing most of the developed world edge towards double digit inflation while many emerging and frontier markets generally have trundled along with much more mundane price increases. Whilst the inflation seen across the developed world is the highest in seven decades, the majority of frontier markets are just experiencing a normal economic cycle, a situation that is pretty remarkable.

To understand the impacts of the current high inflation environment, we should split frontier markets into three groups. Firstly, there are a number of countries across frontier markets where inflation remains muted. The meteoric rise in energy prices that we have seen across Europe has not been reflected globally. As you can see in the chart in the Company’s Annual Report for the year ended 30 September 2022, for many of the countries where we invest, energy prices have seen little change over the past year.

For energy exporting countries, the current boom in energy prices offers them the fiscal resources to support their domestic populations and protect them from the global increases in food and other commodity prices. Inflation in Saudi Arabia is currently at 2.9%, Indonesia at 5.9% and Vietnam at 3.9%. These countries are not currently seeing and are unlikely to see inflation outside their normal expected levels.

Secondly, there are a number of countries which are currently experiencing high inflation. However, in stark contrast to the western world, we have seen governments and central banks take dramatic action to try to bring price levels back under control across these countries. To put this in historical context, in Chile, the policy rate of 10.75% is the highest since 1996 (with the exception of a three month period in 1998). Interest rates in Hungary are at a 19-year high and in Colombia, at a 14-year high. Inflation levels are unprecedented, but so has been the stock market reaction to the extent where we now believe these levels present attractive yield opportunities and could start to drive flows into the region.

There is a third group of countries where inflation is currently very high, policy approaches are either unorthodox or significantly behind the curve and we remain concerned about their future economic trajectory. Luckily these are few and far between within the frontier market universe and we have no exposure to these countries.

The Company’s Benchmark Index is down 7.3% for the year ended 30 September 2022, faring significantly better than the MSCI Emerging Markets Index which is down 28.1% and the MSCI World Index which is down 20.0% over the same period (all in US Dollar terms). Under the hood, the drivers of various parts of the frontier market universe are unsurprisingly quite divergent.

Regionally, the Middle East has been the strongest performer, with Qatar, Saudi Arabia, the United Arab Emirates (UAE) and Kuwait all delivering positive returns. The region has been buoyed by elevated oil prices following Russia's incursion into Ukraine. The Gulf Cooperation Council region is currently on track to report the highest current account and fiscal account surpluses for nearly a decade.

In contrast, Eastern Europe has had a challenging year. While the year started with optimism about a post COVID-19 recovery and disbursement of EU Recovery funds, Russia’s invasion of Ukraine marked a drastic turn of events for the region. In addition to the tragic loss of life, it has also led to a significant disruption to exports, higher energy prices and import bills, and cast a large cloud of uncertainty over geopolitical stability for the entire continent.

In Southeast Asia, the story is more nuanced. On the one hand, Indonesia and Malaysia have benefited hugely from commodity price strength as well as the accelerating tourism recovery. On the other hand, in Thailand and the Philippines we are concerned that the current high inflation will cause their respective central banks to raise interest rates substantially whilst economic recovery remains relatively weak.

In Latin America, performance has been strong, albeit volatile, given the commodity-heavy nature of the region. Chile has been in the news for constitutional reform for most of this year. It culminated in early September 2022 with voters overwhelmingly rejecting the new changes. We believe this is a positive outcome for the market but expect political noise to continue.

NOTES FROM THE ROAD
One of our highlights of the past year was our ability to get back out on the road and meet the management of the companies in which we invest, as well as government officials, economists and other parties with local knowledge. This element of on-the-ground research has always been a core component of our investment process and we are glad to have resumed it.

Earlier in the year, we visited Egypt, Kazakhstan, Saudi Arabia, Turkey, the UAE and Uzbekistan. As some of the earliest international investors to be returning to these countries, we were able to arrange fantastic schedules, meeting contacts across the political and economic spectrum, as well as several of new investment opportunities, including companies that had recently listed.

We travelled to Southeast Asia over the summer. In Indonesia, we see clear activity recovery and a pass-through of higher commodity prices into domestic recovery as well as external accounts. In addition, long-term structural improvements in tax and labour market legislation bolster our positive outlook towards the country. We are also seeing an improvement in foreign direct investment after a long period of underinvestment. In Malaysia, one of the key themes is supply chain recalibration away from China. There is a nascent, but interesting, start-up ecosystem emerging in the country.

On the tourism front, Malaysia has significant room for recovery, particularly if and when China’s borders re-open given China made up 12% of all tourist arrivals in 2019. For Thailand, the outlook has been marred to some degree by inflation, currency weakness, and unorthodox monetary policy. 28% of Thailand’s tourists came from mainland China in 2019 and the lack of recovery has weighed on the country’s economy.

We also travelled to the Middle East, namely Qatar and Kuwait. They continue to be relatively attractive in the current environment of oil price tightness. In August, we travelled far south to Colombia, Peru and Argentina. While we have not had exposure to Argentina for the last few years, we are excited by the work that Argentina is currently undertaking to increase its pipeline capacity for oil exports, seeing a significant increase in export earnings as a game changer for the country.

Most recently, we visited Poland and Hungary. We prefer Hungary on a relative basis. The extent of corrective actions taken by the central bank over the past nine months is unprecedented, with policy rates now a very punchy 18%. We will be watching closely how inflation fares (currently hovering close to 20%) and how they close the fiscal gap. In Poland, valuations are looking very attractive, with the market currently trading at similar levels to where it was in 2003.

PORTFOLIO PERFORMANCE
For the year ended 30 September 2022, the Company’s NAV returned -10.9%, compared with a Benchmark Index return of -7.3% in US Dollar terms. In British Pound Sterling terms, the Company’s NAV was up 7.7%, relative to a Benchmark Index return of 12.0%. The underperformance relative to our benchmark was due largely to our overweight positions at the outset in Kazakhstan and other east European countries which were affected by the unexpected onset of war in Ukraine and which offset generally good stock selection elsewhere.

The Company had a strong year in the UAE. Real estate developer, Emaar Properties (+45%), was the top performer as property transaction values hit a nine-year high in September 2022 due to rising demand. The company has been able to sell down historic inventories and generate significant cash flows as the market has boomed. As we have noted before, this is a reflection of a longer-term rebranding of Dubai and the UAE as an expatriate hub, be it for finance professionals or for crypto enthusiasts. Fertiglobe (+117%), the UAE’s biggest nitrogen fertilizer and ammonia producer and distributor, has been an outstanding performer since its IPO in October 2021. UAE airline, Air Arabia (+62%), was another stand-out performer as the country was one of the first to fully reopen its borders post COVID-19.

Elsewhere, Greek utility Terna Energy (+26%) benefited as the transition to renewable energy continued. Qatar Gas Transport Company (+37%) was another strong performer, as the tight energy environment meant that the company was able to raise rental pricing for its fleet. Saudi Arabian banks had a very strong year, and the Company benefited from positions including Riyad Bank (+20%) and Saudi British Bank (+20%). These banks have seen substantial increases in earnings due to strong loan growth and rising margins. Saudi grocery store operator Abdullah Al Othaim Markets (+12%) also did well as the Saudi domestic landscape evolves from mom-and-pop stores to a more premium supermarket ecosystem.

Indonesian clothing retailer, Mitra Adiperkasa (+27%) benefited from a strong recovery as the economy reopened post COVID-19 and the company has continued to take market share. Auto retailer, Astra International (+16%) benefited from the same trends, showing strong recovery through the year. September 2022 retail unit sales volumes were up 31% year-on-year and the company has also achieved an increase in market share from 51% to 56%.

While we have no direct exposure to Russia in the Trust, we did see a significant impact to our portfolio in the aftermath of the Ukraine invasion. Our positioning in Eastern Europe saw some outsized losses. Hungarian bank OTP (-67%) hurt returns, falling as 15% of its business was in Russia and Ukraine. Eastern Europe has seen significant pressure on inflation as gas prices have risen and inflation in Hungary hit 20% in September. Given the actions that we have seen from the government and central bank in looking to rein in spending and liquidity over the past few months, we believe there is value here. Polish clothing retailer LPP (-47%) also suffered, given Russia represented around 30% of revenues and had been expected to represent approximately half of the expansion plan for 2022. We also had some exposure to Ukraine via iron ore producer Ferrexpo (-70%). Interestingly the company has been able to continue exporting product albeit at a lower rate through the year. Hungarian budget airline, Wizz Air Holdings (-68%), was among the worst performers as the stock was impacted by recessionary fears and rising fuel costs with OPEC+ recently agreeing to cut production from August 2022 levels by two million barrels, representing around 2% of global oil supply.

INVESTMENT ACTIVITY
We have continued increasing our exposure to Southeast Asia on expectations of a pickup in economic activity as border controls are relaxed and mobility improves. Within the region, Indonesia is one of our most preferred countries over the medium to long term, with steady GDP growth expectations of 5+% over the next decade, and structural market reform which should boost potential GDP. Tactically, it has benefited from the huge boom in coal and palm oil prices over the past year and continues to report an impressive current account surplus. We have exposure via a range of stocks – auto-conglomerate Astra International, retailer Mitra Adiperkasa, and cement producer Indocement Tunggal Prakarsa.

However, Thailand is one part of the region where we find ourselves more bearish – we exited convenience store chain CP ALL, oil and gas giants PTT Global Chemical and Thai Oil, and Kasikornbank, concerned about the macro environment as noted above.

In the Middle East we initiated an investment in Qatar Gas Transport Company, which we think will benefit from expansion of Qatar’s north fields in a bid to increase domestic gas production. We also bought Qatar National Bank early in the year, expecting a re-acceleration of loan growth. The stock has been a relative laggard in Qatar and compared to other financials in the region. In Saudi Arabia, we added to domestics, such as grocery operator Abdullah Al Othaim Markets and participated in the IPO of pharmacy chain Al Nahdi Medical.

We have moved some capital into Latin America, namely Colombia and Chile. We initiated a position in Colombian oil exporter Ecopetrol where free cash flow yields look quite attractive under a higher-for-longer oil price regime. In Chile, we bought Banco Santander Chile on a macro view that interest rates are likely near peak. We also have a sizeable position in regional carrier Copa Airlines which continues to benefit from the tourism rebound.

In Eastern Europe, despite the macro challenges, we have added where we see compelling risk/reward. Greece started the year as our top pick given the tourist revival we saw over summer 2022. We have trimmed exposure somewhat through the year given strong performance of Terna Energy and National Bank of Greece. Positions have been rotated into Poland and Hungary. With the Polish stock market currently trading at the lowest level since 2003, we believe that a lot is discounted in the price.

OUTLOOK

We believe that frontier and smaller emerging markets are very well-positioned as global inflation starts to peak out. We have started seeing early lead indicators of this with circa 30%+ decreases in memory chip (DRAM) pricing and shipping freight rates. That said, many countries in the developed world have seen more than two years of excess money creation which is only just starting to drain from the system. That adjustment period still has some ways to go. In contrast, countries in our investment universe have shown commendable fiscal and monetary discipline which creates relative opportunity.

Broadly speaking, our portfolio is positioned in three key areas:

1) Post-pandemic reopening

2) Energy price beneficiaries

3) Macro recovery opportunities

Through a country lens, we continue to like the Middle East, Indonesia, Malaysia, Kazakhstan and Chile. We also see stock specific opportunities in parts of Eastern Europe. Overall, we find significant value in currencies and equity markets across our investment universe. We are optimistic over the long-term in the under-researched frontier markets, which should allow for compelling alpha opportunities.

SAM VECHT and EMILY FLETCHER
BlackRock Investment Management (UK) Limited

7 December 2022

TEN LARGEST INVESTMENTS¹ AS AT 30 SEPTEMBER 2022

1 + Emaar Properties (2021: 7th)
Real Estate (United Arab Emirates)
Portfolio value: $14,158,000
Percentage of net assets: 4.7% (2021: 3.1%)

Emaar Properties is a real estate development company located in the United Arab Emirates. It operates internationally providing both development and property management services. It is diversified across several property types, including commercial and residential, as well as malls and hospitality.

2 - Saudi National Bank² (2021: 1st)
Financials (Saudi Arabia)
Portfolio value: $14,017,000
Percentage of net assets: 4.6% (2021: 4.8%)

Saudi National Bank is the largest financial institution in Saudi Arabia, created following the merger of National Commercial Bank and Samba Financial Group in April 2021. It provides a range of financial services from personal banking, corporate banking to brokerage and investment banking in Saudi Arabia. It also has an international presence in the Middle East, South Asia and Turkey.

3 - Bank Rakyat (2021: 2nd)
Financials (Indonesia)
Portfolio value: $13,856,000
Percentage of net assets: 4.6% (2021: 3.8%)

Bank Rakyat is one of the largest banks in Indonesia. It specialises in small scale and microfinance style borrowing from and lending to its approximately 30 million retail clients through over 4,000 branches, units and rural service posts.

4 + JSC Kaspi (2021: 5th)
Financials (Kazakhstan)
Portfolio value: $10,335,000
Percentage of net assets: 3.4% (2021: 3.4%)

JSC Kaspi is the largest payments, marketplace and fintech ecosystem in Kazakhstan. The company has seen strong growth particularly in its marketplace and payments business. The company began as a bank but expanded into peer-to-peer payments and online marketplaces, particularly proving vital for businesses during the lockdowns of 2020. The company is working on expanding into other markets in Central Asia.

5 + Abdullah Al Othaim Markets² (2021: n/a)
Consumer Staples (Saudi Arabia)
Portfolio value: $9,783,000
Percentage of net assets: 3.2% (2021: nil%)

Abdullah Al Othaim Markets is a large retailer in Saudi Arabia, operating supermarkets, hypermarkets, convenience stores, and wholesale outlets. They also have a small presence in Egypt. The company is looking to disrupt the current landscape which is largely dominated by mom-and-pop stores.

6 + Qatar Gas Transport Company (2021: n/a)
Energy (Qatar)
Portfolio value: $9,367,000
Percentage of net assets: 3.1% (2021: nil%)

Qatar Gas Transport Company, also known as Nakilat, is a shipping and maritime company based in Qatar, holding the world’s largest liquefied natural gas (LNG) shipping fleet comprised of 69 LNG carriers. In addition to its core shipping activities, Nakilat also provides ship repair and offshore fabrication services.

7 + PKO Bank Polski (2021: n/a)
Financials (Poland)
Portfolio value: $9,254,000
Percentage of net assets: 3.1% (2021: nil%)

PKO Bank Polski is Poland’s largest bank founded in 1919. It is primarily focused on retail banking, operating over 1,100 branches in Poland and abroad.

8 + Saudi Telecom² (2021: n/a)
Communication Services (Saudi Arabia)
Portfolio value: $9,209,000
Percentage of net assets: 3.0% (2021: nil%)

Saudi Telecom is a telecommunications operator in Saudi Arabia, offering landline and fixed infrastructure, mobile and data services, broadband and cloud computing.

9 + Genting (2021: 18th)
Consumer Discretionary (Malaysia)
Portfolio value: $8,919,000
Percentage of net assets: 2.9% (2021: 2.2%)

Genting is a multinational resort and hotel operator with integrated resorts and entertainment facilities in Malaysia but also abroad, including the UK, the US and the Bahamas.

10 - Saudi British Bank² (2021: 6th)
Financials (Saudi Arabia)
Portfolio value: $7,945,000
Percentage of portfolio: 2.6% (2021: 3.2%)

Saudi British Bank is an associate of HSBC Group and the leading international bank in Saudi Arabia. The company has been an active partner in supporting Saudi Arabia’s economic growth and social development by offering an array of corporate, institutional, retail banking and wealth management services since 1978.

¹ Gross market exposure as a % of net assets.

² Exposure gained via contracts for difference only.

The Company’s ten largest investments represented 35.2% of the Company’s portfolio as at 30 September 2022 (30 September 2021: 34.1%).

Percentages in brackets represent the portfolio holding as at 30 September 2021.

Symbols indicate the change in the relative ranking of the position in the portfolio compared to its ranking as at 30 September 2021.

PORTFOLIO ANALYSIS AS AT 30 SEPTEMBER 2022

COUNTRY ALLOCATION: ABSOLUTE WEIGHTS (GROSS MARKET EXPOSURE AS A % OF NET ASSETS)¹

	%
Saudi Arabia	26.1
Indonesia	13.2
Malaysia	8.4
Kazakhstan	7.3
Vietnam	7.0
United Arab Emirates	6.7
Thailand	6.7
Chile	5.7
Qatar	4.6
Greece	4.3
Hungary	3.7
Poland	3.1
Romania	2.2
Philippines	2.0
Panama	1.9
Egypt	1.8
Kuwait	1.5
Peru	1.5
Colombia	1.4
Kenya	0.9
Multi-International	0.9
Ukraine	0.4

COUNTRY ALLOCATION RELATIVE TO THE BENCHMARK INDEX (%)¹

	%
Kazakhstan	6.8
Vietnam	4.7
Greece	2.9
Hungary	2.9
Chile	2.6
Panama	1.9
Romania	1.8
Egypt	1.4
Indonesia	1.4
Multi-International	0.9
Colombia	0.6
Saudi Arabia	0.6
Kenya	0.5
Ukraine	0.4
Poland	0.3
Malaysia	0.3
Peru	0.2
Lithuania	-0.1
Pakistan	-0.1
Estonia	-0.1
Croatia	-0.1
Jordan	-0.1
Mauritius	-0.2
Oman	-0.2
Slovenia	-0.2
Bangladesh	-0.3
Nigeria	-0.4
Other	-0.6
Morocco	-0.7
United Arab Emirates	-0.7
Bahrain	-0.8
Czech Republic	-0.8
Philippines	-1.7
Turkey	-2.0
Qatar	-2.1
Kuwait	-3.2
Thailand	-4.6

SECTOR ALLOCATION: ABSOLUTE WEIGHTS (GROSS MARKET EXPOSURE AS A % OF NET ASSETS)¹

	%
Financials	41.7
Materials	14.0
Consumer Discretionary	10.3
Industrials	9.4
Consumer Staples	8.5
Energy	7.9
Information Technology	4.9
Real Estate	4.7
Communication Services	4.5
Utilities	4.1
Health Care	1.3

SECTOR ALLOCATION RELATIVE TO THE BENCHMARK INDEX (%)¹

	%
Consumer Discretionary	6.4
Industrials	4.4
Information Technology	4.1
Consumer Staples	2.6
Materials	2.2
Real Estate	0.9
Energy	0.8
Utilities	-0.2
Health Care	-1.7
Financials	-3.1
Communication Services	-5.2

¹ Includes exposure gained through equity positions and long and short CFD positions.

Sources: BlackRock and Datastream.

INVESTMENTS AS AT 30 SEPTEMBER 2022

EQUITY PORTFOLIO

Company	Principal country of operation	Sector	Fair value¹ US$’000	Gross market exposure as a % of net assets³
Bank Rakyat	Indonesia	Financials	13,856	4.6
Astra International	Indonesia	Consumer Discretionary	7,850	2.6
Indocement Tunggal Prakarsa	Indonesia	Materials	7,713	2.5
Bank Mandiri	Indonesia	Financials	6,027	2.0
Mitra Adiperkasa	Indonesia	Consumer Discretionary	4,499	1.5
			----------------	----------------
			39,945	13.2
			==========	==========
Genting	Malaysia	Consumer Discretionary	8,919	2.9
RHB Bank	Malaysia	Financials	7,642	2.5
Frontken Corp	Malaysia	Industrials	4,573	1.5
Malayan Banking	Malaysia	Financials	4,450	1.5
			----------------	----------------
			25,584	8.4
			==========	==========
JSC Kaspi	Kazakhstan	Financials	10,335	3.4
Kazatomprom	Kazakhstan	Energy	6,824	2.2
Halyk Savings Bank	Kazakhstan	Financials	5,078	1.7
			----------------	----------------
			22,237	7.3
			==========	==========
Emaar Properties	United Arab Emirates	Real Estate	14,158	4.7
Air Arabia	United Arab Emirates	Industrials	6,105	2.0
			----------------	----------------
			20,263	6.7
			==========	==========
Banco Santander Chile	Chile	Financials	6,429	2.1
Albemarle	Chile	Materials	6,056	2.0
Empresas CMPC	Chile	Materials	4,758	1.6
			----------------	----------------
			17,243	5.7
			==========	==========
PTT Global Chemical	Thailand	Materials	5,611	1.9
Airports of Thailand	Thailand	Industrials	5,573	1.8
Bangkok Dusit Medical Services	Thailand	Health Care	5,079	1.7
			----------------	----------------
			16,263	5.4
			==========	==========
Qatar Gas Transport Company	Qatar	Energy	9,367	3.1
Qatar National Bank	Qatar	Financials	4,576	1.5
			----------------	----------------
			13,943	4.6
			==========	==========
OTP Bank	Hungary	Financials	4,045	1.3
MOL Group	Hungary	Energy	3,627	1.2
Wizz Air Holdings	Hungary	Industrials	2,971	1.0
			----------------	----------------
			10,643	3.5
			==========	==========
National Bank of Greece	Greece	Financials	4,694	1.6
Terna Energy	Greece	Utilities	4,025	1.3
Titan Cement International	Greece	Materials	1,516	0.5
			----------------	----------------
			10,235	3.4
			==========	==========
PKO Bank Polski	Poland	Financials	9,254	3.1
			----------------	----------------
			9,254	3.1
			==========	==========
BRD – Groupe Société Générale	Romania	Financials	6,564	2.2
			----------------	----------------
			6,564	2.2
			==========	==========
Jollibee Foods	Philippines	Consumer Discretionary	2,944	1.0
LT Group	Philippines	Industrials	2,921	1.0
			----------------	----------------
			5,865	2.0
			==========	==========
Copa Airlines	Panama	Industrials	5,742	1.9
			----------------	----------------
			5,742	1.9
			==========	==========
Eastern Company	Egypt	Consumer Staples	4,483	1.5
EFG Hermes Holdings	Egypt	Financials	859	0.3
			----------------	----------------
			5,342	1.8
			==========	==========
Credicorp	Peru	Financials	4,680	1.5
			----------------	----------------
			4,680	1.5
			==========	==========
Mobile Telecommunications	Kuwait	Communication Services	4,655	1.5
			----------------	----------------
			4,655	1.5
			==========	==========
Ecopetrol	Colombia	Energy	4,196	1.4
			----------------	----------------
			4,196	1.4
			==========	==========
Equity Group	Kenya	Financials	2,946	0.9
			----------------	----------------
			2,946	0.9
			==========	==========
Ferrexpo	Ukraine	Materials	930	0.3
			----------------	----------------
			930	0.3
			==========	==========
Equity investments			226,530	74.8
			==========	==========
BlackRock’s Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund (Cash Fund)			71,415	23.6
			----------------	----------------
Total equity investments (including Cash Fund)			297,945	98.4
			==========	==========

CFD portfolio

Company	Principal country of operation	Sector	Fair value¹ US$’000	Gross Market exposure² US$’000	Gross market exposure as a % of net assets³
Long positions
Saudi National Bank	Saudi Arabia	Financials		14,017	4.6
Abdullah Al Othaim Markets	Saudi Arabia	Consumer Staples		9,783	3.2
Saudi Telecom	Saudi Arabia	Communication Services		9,209	3.0
Saudi British Bank	Saudi Arabia	Financials		7,945	2.6
Yanbu National Petrochemical	Saudi Arabia	Materials		7,650	2.6
Elm Company	Saudi Arabia	Information Technology		6,890	2.3
Riyad Bank	Saudi Arabia	Financials		5,581	1.8
Leejam Sports	Saudi Arabia	Consumer Discretionary		4,768	1.6
Al Nahdi Medical	Saudi Arabia	Consumer Staples		4,255	1.4
				----------------	----------------
				70,098	23.1
				==========	==========
FPT	Vietnam	Information Technology		7,933	2.6
Vietnam Dairy Products	Vietnam	Consumer Staples		7,072	2.4
Vietnam Technological & Commercial	Vietnam	Financials		3,919	1.3
Mobile World	Vietnam	Consumer Discretionary		2,209	0.7
				----------------	----------------
				21,133	7.0
				==========	==========
Titan Cement International	Greece	Materials		1,735	0.6
National Bank of Greece	Greece	Financials		925	0.3
				----------------	----------------
				2,660	0.9
				==========	==========
Wizz Air Holdings	Hungary	Industrials		531	0.2
				----------------	----------------
				531	0.2
				==========	==========
Ferrexpo	Ukraine	Materials		357	0.1
				----------------	----------------
				357	0.1
				==========	==========
Total long CFD positions			(4,267)	94,779	31.3
			==========	==========	==========
Total short CFD positions			409	(15,624)	(5.2)
			==========	==========	==========
Total CFD portfolio			(3,858)	79,155	26.1
			==========	==========	==========

FAIR VALUE AND GROSS MARKET EXPOSURE OF INVESTMENTS AS AT 30 SEPTEMBER 2022

Portfolio	Fair value¹	Gross market exposure³	Gross market exposure as a % of net assets³
	US$’000	US$’000	2022	2021
Equity investments	226,530	226,530	74.8	73.1
Total long CFD positions	(4,267)	94,779	31.3	35.0
Total short CFD positions	409	(15,624)	(5.2)	(0.4)
Forward currency positions	–	–	0.0	4.6
	------------------	------------------	------------------	------------------
Total gross exposure	222,672	305,685	100.9	112.3
	==========	==========	==========	==========
Cash Fund	71,415	71,415	23.6	27.3
	------------------	------------------	------------------	------------------
Total investments and derivatives	294,087	377,100	124.5	139.6
	==========	==========	==========	==========
Cash and cash equivalents^1,2	4,901	(78,112)	(25.7)	(35.9)
Other net current assets/(liabilities)	3,687	3,687	1.2	(3.7)
Non-current liabilities	(19)	(19)	0.0	0.0
	------------------	------------------	------------------	------------------
Net assets	302,656	302,656	100.0	100.0
	==========	==========	==========	==========

The Company was geared through the use of long and short CFD positions and gross and net gearing as at 30 September 2022 was 11.3% and 1.0% respectively (30 September 2021: 8.5% and 7.6%). Gross and net gearing are Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended 30 September 2022.

¹ Fair value is determined as follows:

– Listed investments are valued at bid prices where available, otherwise at latest market traded quoted prices.

– The sum of the fair value column for the CFD contracts totalling US$(3,858,000) represents the net fair valuation of all the CFD contracts, which is determined based on the difference between the notional transaction price and market value of the underlying shares in the contract (in effect the unrealised gains/(losses) on the exposed long and short CFD positions). The cost of purchasing the securities held through long CFD positions directly in the market would have amounted to US$99,046,000 at the time of purchase, and subsequent movement in market prices have resulted in unrealised losses on the long CFD positions of US$4,267,000 resulting in the value of the total long CFD market exposure to the underlying securities decreasing to US$94,779,000 as at 30 September 2022. If the long positions had been closed on 30 September 2022 this would have resulted in a loss of US$4,267,000 for the Company. The notional price of selling the securities to which exposure was gained via the short CFD positions would have been US$16,033,000 at the time of entering into the contract, and subsequent movement in market prices have resulted in unrealised gains on the short CFD positions of US$409,000 resulting in the value of the total short CFD market exposure of these investments decreasing to US$15,624,000 at 30 September 2022. If the short positions had been closed on 30 September 2022 this would have resulted in a gain of US$409,000 for the Company.

² The gross market exposure column for cash and cash equivalents has been adjusted to assume the Company purchased/sold direct holdings rather than exposure being gained through long and short CFDs and forward currency positions.

³ Market exposure in the case of equity investments is the same as fair value. In the case of long and short CFDs it is the market value of the underlying shares to which the portfolio is exposed via the contract. Market exposure in the case of forward currency positions is the value of the receivable portion of the forward currency contracts.

STRATEGIC REPORT

The Directors present the Strategic Report of the Company for the year ended 30 September 2022.

PRINCIPAL ACTIVITY
The Company carries on business as an investment trust and its principal activity is portfolio investment.

INVESTMENT OBJECTIVE
The Company’s investment objective is to achieve long-term capital growth by investing in companies domiciled or listed in or exercising the predominant part of their economic activity in, less developed countries. These countries (the “Frontiers Universe”) are any country which is neither part of the MSCI World Index of developed markets, nor one of the eight largest countries by market capitalisation in the MSCI Emerging Markets Index: being Brazil, China, India, South Korea, Mexico, Russia, South Africa and Taiwan (the “Selected Countries”).

STRATEGY, BUSINESS MODEL AND INVESTMENT POLICY
Strategy
To achieve its objective, the Company invests globally in the securities of companies domiciled or listed in or exercising the predominant part of their economic activity in, the Frontiers Universe.

BUSINESS MODEL
The Company’s business model follows that of an externally managed investment trust; therefore the Company does not have any employees and outsources its activities to third-party service providers, including BlackRock Fund Managers Ltd (BlackRock or BFM) (‘the Manager’) which is the principal service provider.

The management of the investment portfolio and the administration of the Company have been contractually delegated to the Manager. The Manager has delegated certain investment management and other ancillary services to BlackRock Investment Management (UK) Limited (BIM (UK)) (‘the Investment Manager’). The contractual arrangements with, and assessment of, the Manager are summarised in the Company’s Annual Report for the year ended 30 September 2022. The Investment Manager, operating under guidelines determined by the Board, has direct responsibility for the decisions relating to the day-to-day running of the Company and is accountable to the Board for the investment, financial and operating performance of the Company. Other service providers include the Depositary and the Fund Accountant, The Bank of New York Mellon (International) Limited (BNYM), and the Registrar, Computershare Investor Services PLC (Computershare). Details of the contractual terms with third-party service providers are set out in the Directors’ Report in the Company's Annual Report for the year ended 30 September 2022.

INVESTMENT POLICY
The Company will seek to maximise total return and will invest globally in the securities of companies domiciled or listed in or exercising the predominant part of their economic activity in, the Frontiers Universe. Performance is measured against the Company’s Benchmark Index, which is a composite of the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index (net total return, USD). The Investment Manager is not constrained by the geographical weightings of the Benchmark Index and the Company’s portfolio may frequently be overweight or underweight any particular country relative to the Benchmark Index. The Company will exit any investment as soon as reasonably practicable following the relevant company ceasing to be domiciled or listed in or exercising the predominant part of its economic activity in, the Frontiers Universe.

In order to achieve the Company’s investment objective, the Investment Manager selects investments through a process of fundamental and geopolitical analysis, seeking long-term appreciation from mispriced value or growth. The Investment Manager employs both a top-down and bottom-up approach to investing. It is expected that the Company will have exposure to between 35 to 65 holdings.

Where possible, investment will generally be made directly in the stock markets of the Frontiers Universe. Where the Investment Manager determines it appropriate, investment may be made through collective investment schemes, although such investments are not likely to be significant. Investment in other closed-ended investment funds admitted to the Official List will not exceed more than 10%, in aggregate, of the value of the Gross Assets (calculated at the time of any relevant investment). It is intended that the Company will generally be invested in equity investments; however, the Investment Manager may invest in equity-related investments, such as derivatives or convertibles, and, to a lesser extent, in bonds or other fixed-income securities, including high risk debt securities. These securities may be below investment grade.

Due to national and/or international regulation, excessive operational risk, prohibitive costs and/or the time period involved in establishing trading and custody accounts in certain countries in the Frontiers Universe, the Company may be unable to invest (whether directly or through nominees) in companies in certain countries in the Frontiers Universe or, in the opinion of the Company and/or the Investment Manager, it may not be advisable to do so. In such circumstances, or in countries where acceptable custodial and other arrangements are not in place to safeguard the Company’s investments, the Company intends to gain economic exposure to companies in such countries by investing indirectly through derivatives. Derivatives are financial instruments linked to the performance of another asset or security, such as promissory notes, contracts for difference, futures or traded options. Save as provided below, there is no restriction on the Company investing in derivatives in such circumstances or for efficient portfolio management purposes.

The Company may be geared through borrowings and/or by entering into derivative transactions (taking both long and short positions) that have the effect of gearing the Company’s portfolio to enhance performance. The Company may also use borrowings for the settlement of transactions, to facilitate share repurchases (where applicable) and to meet on-going expenses.

The respective limits on gearing (whether through the use of derivatives, borrowings or a combination of both) are set out below:

· Maximum gearing through the use of derivatives or borrowings to gain exposure to long positions in securities: 140% of net assets

· Maximum exposure to short positions (for shorting purposes the Company may use indices or individual stocks): 10% of net assets

· Maximum gross exposure (total long exposure plus total short exposure): 150% of net assets

· Maximum net exposure (total long exposure minus total short exposure): 130% of net assets

In normal circumstances, the Company will typically have net exposure of between 95% and 120% of net assets.

When investing via derivatives, the Company will seek to mitigate and/or spread its counterparty risk exposure by collateralisation and/or contracting with a potential range of counterparty banks, as appropriate, each of which shall, at the time of entering into such derivatives, have a Standard & Poor’s credit rating of at least A- on its long-term senior unsecured debt.

The Company may invest up to 5% of its Gross Assets (at the time of such investment) in unquoted securities. The Company will invest so as not to hold more than 15% of its Gross Assets in any one stock or derivative position at the time of investment (excluding cash management activities).

No material change will be made to the investment policy without the approval of shareholders by ordinary resolution.

A detailed analysis of the Company’s portfolio has been provided in the Company’s Annual Report for the year ended 30 September 2022.

INVESTMENT APPROACH AND PROCESS
Portfolio construction is a continuous process, with the Investment Manager analysing constantly the impact of new ideas and information on the portfolio as a whole. The approach is flexible, varying through market and economic cycles to create a portfolio appropriate to the focused and unconstrained strategy of the Company. The macro environment is factored into all portfolio decisions. In general, macro analysis is a more dominant factor in investment decision making when the outlook is negative. The macro process is comprised of three parts: political assessment, macroeconomic analysis and appraisal of the valuation of a country’s market, which can only take place with thorough analysis of stock specific opportunities.

The Investment Manager’s research team generates ideas from a diverse range of sources. When permitted, these include frequent travel to the markets in which the Company invests and regular conversations with contacts that allow the Frontiers team to assess the entire eco system around a company, namely competitors, suppliers, financiers, customers and regulators. The team leverages the internal research network sharing information between BlackRock’s investment teams using a proprietary research application and database and develops insights from macroeconomic analysis. The Board believes that BlackRock’s research platform is a significant competitive advantage, both in terms of information specific to emerging and frontier market equities and through its global insights across asset classes. Access to companies is extremely good given BlackRock’s market presence, which makes it possible to develop a detailed knowledge of a company and its management.

The research process focuses on cash flow and future earnings growth, as the investment team believes that this is ultimately the driver of share prices over time. The process is designed with the aim of identifying companies that can translate top line revenue growth to free cash flow and investing in these companies when the analysis suggests that the cash flow stream is undervalued. Financial models are developed focusing on company financials, particularly cash flow statements, rather than relying on third party research.

ESG INTEGRATION
The Manager defines Environmental, Social and Governance (ESG) integration as the practice of incorporating material ESG information and consideration of sustainability risks into investment decisions in order to enhance risk-adjusted returns. Inclusion of this statement does not imply that the Company has an ESG-aligned investment objective or constrain the Investment Manager’s investable universe and does not mean that an ESG or impact focused investment strategy or any exclusionary screens have been or will be adopted by the Company, but rather describes how ESG information is considered as part of the overall investment process.

In making investment decisions, the Manager assesses a variety of economic and financial indicators which include ESG considerations in combination with other information in the research phase of the investment process to make investment decisions appropriate to their client’s objectives. This may also include relevant third party insight, as well as internal engagement commentary and input from BlackRock Investment Stewardship (BIS) on governance issues. The portfolio managers conduct regular portfolio reviews with the BlackRock Risk and Quantitative Analysis (RQA) team. These reviews include discussion of the portfolio’s exposure to material ESG risks, as well as exposure to sustainability related business involvements, climate related metrics, traditional financial risks and other factors.

The portfolio managers’ approach to ESG integration is to broaden the total amount of information its investment professionals consider in order to improve investment analysis, seeking to meet or exceed economic return and financial risk targets. ESG factors can be useful and relevant indicators for investment purposes and can help portfolio managers with their decision making through identifying potentially negative events or corporate behaviour. The Portfolio Manager works closely with BIS to assess the governance quality of companies and investigate any potential issues, risks or opportunities.

The Manager’s research team monitors differing levels of risk throughout the process and believes that avoiding major downside events can generate significant outperformance over the long term. Inputs from the RQA team are an integral part of the investment process. The RQA team analyse market and portfolio risk factors including stress tests, correlations, factor returns, cross sectional volatility and attributions. The Manager’s evaluation procedures and financial analysis of the companies within the portfolio also take into account environmental, social and governance matters and other business issues.

The Company does not meet the criteria for Article 8 or 9 products under the EU Sustainable Finance Disclosure Regulation (“SFDR”) and the investments underlying this financial product do not take into account the EU criteria for environmentally sustainable economic activities.

Further information on the Manager’s approach to ESG and Socially Responsible Investing can be found in the Strategic Report in the Company’s Annual Report for the year ended 30 September 2022.

PERFORMANCE
Details of the Company’s performance for the year are given in the Chairman’s Statement above. The Investment Manager’s Report includes a review of the main developments during the period, together with information on investment activity within the Company’s portfolio.

RESULTS AND DIVIDENDS
The results for the Company are set out in the Statement of Comprehensive Income. The total loss for the year, after taxation, was US$36,869,000 (2021: profit of US$149,472,000) of which the revenue return amounted to US$12,013,000 (2021: US$14,904,000) and the capital loss amounted to US$48,882,000 (2021: profit of US$134,568,000).

The Directors are recommending the payment of a final dividend of 4.25 cents per ordinary share in respect of the year ended 30 September 2022 (2021: final dividend of 4.25 cents) as set out in the Chairman’s Statement.

KEY PERFORMANCE INDICATORS
The Directors consider a number of performance measures to assess the Company’s success in achieving its objectives. The key performance indicators (KPIs) used to measure the progress and performance of the Company over time and which are comparable to those reported by other investment trusts are set out below.

PERFORMANCE MEASURED AGAINST THE BENCHMARK INDEX
At each meeting the Board reviews the performance of the portfolio as well as the net asset value and share price for the Company and compares this to the return of the Company’s benchmark. The Board considers this to be an important key performance indicator and has determined that it should also be used to calculate whether a performance fee is payable to BlackRock. The Company’s absolute and relative performance is set out in the performance record table in the Company’s Annual Report for the year ended 30 September 2022.

SHARE RATING AND DISCOUNT
The Directors recognise the importance to investors that the Company’s share price should not trade at a significant discount or premium to NAV. Accordingly, the Directors monitor the share rating closely and will consider share repurchases in the market if the discount widens significantly, or the issue of shares to the market to meet demand to the extent that the Company’s shares are trading at a premium. In addition, in accordance with the Directors’ commitment at launch the Company will formulate and submit to shareholders proposals to provide them with an opportunity at each five year anniversary since launch, to realise the value of their ordinary shares at the prevailing NAV per share less applicable costs. Such an opportunity took place in the year ended 30 September 2021. The next opportunity will take place on or around the date of the Company’s AGM in February 2026.

For the year under review the Company’s shares traded at an average discount to the cum-income NAV of 9.2% and were trading at a discount of 10.4% on a cum-income basis at 5 December 2022. The Directors have the authority to buy back up to 14.99% of the Company’s issued share capital (excluding treasury shares). The Directors sought and received shareholder authority at the last AGM to issue up to 10% of the Company’s issued share capital (via the issue of new shares or sale of shares from treasury) on a non pre-emptive basis. Further information can be found in the Directors’ Report in the Company's Annual Report for the year ended 30 September 2022.

ONGOING CHARGES
The ongoing charges reflect those expenses which are likely to recur in the foreseeable future, whether charged to capital or revenue, and which relate to the operation of the investment company as a collective investment fund, excluding the costs of acquisition or disposal of investments, financing charges and gains or losses arising on investments and performance fees. The ongoing charges are based on actual costs incurred in the year as being the best estimate of future costs. The Board reviews the ongoing charges and monitors the expenses incurred by the Company.

KEY PERFORMANCE INDICATORS (SEE GLOSSARY IN THE COMPANY’S ANNUAL REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2022)
The table below sets out the key KPIs for the Company.

	Year ended 30 September 2022¹		Year ended 30 September 2021¹
	£%	US$%	£%	US$%
Net asset value total return²	+7.7	-10.9	+46.7	+53.0
Share price total return³	+8.7	-10.0	+36.9	+42.8
Benchmark Index return⁴	+12.0	-7.3	+22.1	+27.3
Discount to cum income NAV		10.8		11.4
Ongoing charges⁵		1.36		1.36
Ongoing charges including performance fees		1.36		2.44
	==========	==========	==========	==========

¹ Based on an exchange rate of US$1.1163 to £1 at 30 September 2022 and US$1.3484 to £1 at 30 September 2021.

² Calculated with dividends reinvested.

³ Calculated on a mid to mid basis with dividends reinvested.

⁴ The Benchmark Index is a composite of the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index. Benchmark Index return calculates the reinvestment of dividends net of withholding taxes.

⁵ Ongoing charges represent the management fee and all other operating expenses, excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, write back of prior year expenses and certain non-recurring items, as a % of average daily net assets.

The Board regularly reviews a number of indices and ratios to understand the impact on the Company’s relative performance of the various components such as asset allocation and stock selection. The Board also reviews the performance of the Company against a peer group of frontier market open and closed-ended funds.

PRINCIPAL RISKS
As required by the 2018 UK Code of Corporate Governance, the Board has in place a robust, ongoing process to identify, assess and monitor the principal and emerging risks of the Company, including those that they consider would threaten its business model, future performance, solvency or liquidity. Emerging risks are considered by the Board as they come into view and are incorporated into the Company’s risk register where applicable. Additionally, the Manager considers emerging risks in numerous forums and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance to the Company identified through the annual risk survey will be communicated to the Board.

A core element of this is the Company’s risk register, which identifies the risks facing the Company and assesses the likelihood and potential impact of each risk, and the quality of the controls operating to mitigate the risk. A residual risk rating is then calculated for each risk based on the outcome of this assessment. This approach allows the effect of any mitigating procedures to be reflected in the final assessment.

The risk register, its method of preparation and the operation of the key controls in BlackRock’s and other third-party service providers’ systems of internal control are reviewed on a regular basis by the Company’s Audit and Management Engagement Committee. In order to gain a more comprehensive understanding of BlackRock’s and other third party service providers’ risk management processes and how these apply to the Company’s business, the Audit and Management Engagement Committee periodically receives presentations from BlackRock’s Internal Audit and Risk & Quantitative Analysis teams, and reviews Service Organisation Control (SOC 1) reports from BlackRock and the Company’s Custodian and Fund Accountant, The Bank of New York Mellon (International) Limited (BNYM).

The current risk register includes a range of risks spread between performance risk, income/dividend risk, legal and regulatory risk, counterparty risk, operational risk, market risk, political risk and financial risk.

The principal risks and uncertainties faced by the Company during the year, together with the potential effects, controls and mitigating factors, are set out below.

Principal Risk	Mitigation/Control
Investment Performance Risk The Board is responsible for: · setting the investment policy to fulfil the Company’s objectives; and · monitoring the performance of the Company’s Investment Manager and the strategy adopted. An inappropriate policy or strategy may lead to: · poor performance compared to the Company’s benchmark peer group or shareholder expectations; · a widening discount to NAV; · a reduction or permanent loss of capital; and · dissatisfied shareholders and reputational damage. The Board is also cognisant of the long-term risk to performance from inadequate attention to ESG issues and in particular the impact of climate change.	To manage this risk the Board: regularly reviews the Company’s investment mandate and long term strategy; has set, and regularly reviews, the investment guidelines and has put in place appropriate limits on levels of gearing and the use of derivatives; receives from the Investment Manager a regular explanation of stock selection decisions, portfolio gearing and any changes in gearing and the rationale for the composition of the investment portfolio; receives from the Investment Manager regular reporting on the portfolio’s exposure through derivatives, including the extent to which the portfolio is geared in this manner and the value of any short positions; monitors the maintenance of an adequate spread of investments in order to minimise the risks associated with particular countries or factors specific to particular sectors, based on the diversification requirements inherent in the Company’s investment policy; and regularly reviews detailed performance attribution analysis. ESG analysis is integrated into the Manager’s investment process, as set out on pages 35 and 36 of the Annual Report and Financial Statements. This is monitored by the Board.
Income/Dividend Risk The amount of dividends and future dividend growth will depend on the Company’s underlying portfolio. In addition, any change in the tax treatment of the dividends or interest received by the Company (including as a result of withholding taxes or exchange controls imposed by jurisdictions in which the Company invests) may reduce the level of dividends received by shareholders.	Although the Company does not have a policy of actively seeking income, the Board monitors this risk through the receipt of detailed income forecasts and considers the level of income at each meeting. The Company also has a revenue reserve and powers to pay dividends from capital which can be used to support the Company’s dividend if required.
Legal and Regulatory Risk The Company has been approved by HM Revenue & Customs as an investment trust, subject to continuing to meet the relevant eligibility conditions, and operates as an investment trust in accordance with Chapter 4 of Part 24 of the Corporation Tax Act 2010. As such, the Company is exempt from capital gains tax on the profits realised from the sale of its investments. Any breach of the relevant eligibility conditions could lead to the Company losing its investment trust status and being subject to corporation tax on capital gains realised within the Company’s portfolio. In such event the investment returns of the Company may be adversely affected. Any serious breach could result in the Company and/or the Directors being fined or the subject of criminal proceedings or the suspension of the Company’s shares which would in turn lead to a breach of the Corporation Tax Act 2010. Amongst other relevant laws and regulations, the Company is required to comply with the provisions of the Companies Act 2006, the Alternative Investment Fund Managers’ Directive, the Market Abuse Act, the UK Listing Rules and the Disclosure Guidance & Transparency Rules.	The Investment Manager monitors investment movements, the level of forecast income and expenditure and the amount of proposed dividends, if any, to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not breached, and the results are reported to the Board at each meeting. Following authorisation under the Alternative Investment Fund Managers’ Directive (AIFMD), the Company and its appointed Alternative Investment Fund Manager (AIFM) are subject to the risks that the requirements of this Directive are not correctly complied with. The Board and the AIFM also monitor changes in government policy and legislation which may have an impact on the Company. Compliance with the accounting standards applicable to quoted companies and those applicable to investment trusts are also regularly monitored to ensure compliance. The Company Secretary and the Company’s professional advisers monitor developments in relevant laws and regulations and provide regular reports to the Board in respect of the Company’s compliance.
Counterparty Risk The Company’s investment policy also permits the use of both exchange-traded and over-the-counter derivatives (including contracts for difference). The potential loss that the Company could incur if a counterparty is unable (or unwilling) to perform on its commitments.	Due diligence is undertaken before contracts are entered into and exposures are diversified across a number of counterparties. The Board reviews the controls put in place by the Investment Manager to monitor and to minimise counterparty exposure, which include intra-day monitoring of exposures to ensure that these are within set limits.
Operational Risk In common with most other investment trust companies, the Company has no employees. The Company therefore relies upon the services provided by third parties and is dependent on the control systems of BlackRock (the Investment Manager and AIFM), and of The Bank of New York Mellon (International) Limited (the Custodian, Depositary and Fund Accountant), which ensures safe custody of the Company’s assets and maintains the Company’s accounting records. The Company’s share register is maintained by the Registrar, Computershare. Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the Company’s performance. Disruption to the accounting, payment systems or custody records, as a result of a cyberattack or otherwise, could impact the monitoring and reporting of the Company’s financial position. The security of the Company’s assets, dealing procedures, accounting records and maintenance of regulatory and legal requirements, depend on the effective operation of these systems.	The Board reviews the overall performance of the Manager, Investment Manager and all other third-party service providers and compliance with the investment management agreement on a regular basis. The Fund Accountant’s and the Manager’s internal control processes are regularly tested and monitored throughout the year and are evidenced through their Service Organisation Control (SOC 1) reports, which are subject to review by an Independent Service Assurance Auditor. The SOC 1 reports provide assurance in respect of the effective operation of internal controls. The Company’s assets are subject to a strict liability regime and in the event of a loss of financial assets held in custody, the Depositary must return assets of an identical type or the corresponding amount, unless able to demonstrate that the loss was a result of an event beyond its reasonable control. The Board considers succession arrangements for key employees of the Manager and the Board also considers the business continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of its review of the Company’s risk register. The Board also receives regular reports from BlackRock’s internal audit function.
Political Risk Investments in the Frontiers Universe may include a higher element of risk compared to more developed markets due to greater political instability. Political and diplomatic events in the Frontiers Universe where the Company invests (for example, governmental instability, corruption, adverse changes in legislation or other diplomatic developments such as the outbreak of war or imposition of sanctions) could substantially and adversely affect the economies of such countries or the value of the Company’s investments in those countries.	The Investment Manager mitigates this risk by applying stringent controls over where investments are made and through close monitoring of political risks. The Investment Manager’s approach to filtering the investment universe takes account of the political background to regions and is backed up by rigorous stock specific research and risk analysis, individually and collectively, in constructing the portfolio. The management team has a wide network of business and political contacts which provides economic insights with public and private bodies. This enables the Investment Manager to assess potential investments in an informed and disciplined way, as well as being able to conduct regular monitoring of investments once made. However, given the nature of political risk, all investments will be exposed to a degree of risk and the Investment Manager will ensure that the portfolio remains diversified across countries to mitigate the risk.
Financial Risk The Company’s investment activities expose it to a variety of financial risks which include foreign currency risk, liquidity risk, currency risk and interest rate risk.	Details of these risks are disclosed in note 17 to the financial statements in the Company's Annual Report for the year ended 30 September 2022, together with a summary of the policies for managing these risks.
Market Risk Market risk arises from volatility in the prices of the Company’s investments. It represents the potential loss the Company might suffer through realising investments in the face of negative market movements. The securities markets of the Frontiers Universe are not as large as the more established securities markets and have substantially less trading volume, which may result in a lack of liquidity and higher price volatility. There are fewer attractive investment opportunities in frontier markets, and this may lead to a delay in investment and may affect the price at which such investments may be made and reduce potential investment returns for the Company. There is also exposure to currency, market and political risk due to the location of the operation of the businesses in which the Company may invest. As a consequence of this and other market factors the Company may invest in a concentrated portfolio of shares and this focus may result in higher risk when compared to a portfolio that has spread or diversified investments more broadly. Corruption also remains a significant issue across the Frontiers Universe and the effects of corruption could have a material adverse effect on the Company’s performance. Accounting, auditing and financial reporting standards and practices and disclosure requirements applicable to many companies in developing countries may be less rigorous than in developed markets. As a result, there may be less information available publicly to investors in these securities, and such information as is available is often less reliable. The Company may also gain exposure to the Frontiers Universe by investing indirectly through Participatory Notes (P-Notes) which presents additional risk to the Company as P-Notes are uncollateralised resulting in the Company being subject to full counterparty risk via the P-Note issuer. P-Notes also present liquidity issues as the Company, being a captive client of a P-Note issuer, may only be able to realise its investment through the P-Note issuer and this may have a negative impact on the liquidity of the P-Notes which does not correlate to the liquidity of the underlying security. The Portfolio Managers seek to understand the environmental, social and governance (ESG) risks and opportunities facing companies and industries in the portfolio. The Company does not exclude investment in stocks based on ESG criteria, but the Portfolio Managers consider ESG information when conducting research and due diligence on new investments and again when monitoring investments in the portfolio.	Market risk represents the risks of investment in a particular market, country or geographic region. Therefore, this is largely outside of the scope of the Board’s control. However, the Board carefully considers asset allocation, stock selection and levels of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the Investment Manager. Market risk is also mitigated through portfolio diversification across countries and regions. The Board monitors the implementation and results of the investment process with the Investment Manager regularly. The Investment Manager regularly reports to the Board on relative market risks associated with investment in such regions. Further information is provided under ‘Political Risk’. The Board recognises the benefits of a closed-end fund structure in extremely volatile markets such as those affected by the COVID-19 pandemic, and more recently the Russia-Ukraine conflict. Unlike open-ended counterparts, closed-end funds are not obliged to sell-down portfolio holdings at low valuations to meet liquidity requirements for redemptions. During times of elevated volatility and market stress, the ability of a closed-end fund structure to remain invested for the long term enables the Investment Manager to adhere to disciplined fundamental analysis from a bottom-up perspective and be ready to respond to dislocations in the market as opportunities present themselves. Companies operating in the sectors in which the Company invests may be impacted by new legislation governing climate change and environmental issues, which may have a negative impact on their valuation and share price.

VIABILITY STATEMENT
In accordance with the provisions of the UK Corporate Governance Code, the Directors have assessed the prospects of the Company over a longer period than the twelve months referred to by the ‘Going Concern’ guidelines. The Board is cognisant of the uncertainty surrounding the potential duration of the Russia-Ukraine conflict, its impact on the global economy, and the prospects for many of the Company’s portfolio holdings. Notwithstanding this crisis, and given the factors stated below, the Board expects the Company to continue to meet its liabilities as they fall due for the foreseeable future and has therefore conducted this review for a period of five years. This is generally the investment holding period investors consider while investing in the frontier market universe. The Board conducted this review for the period up to the AGM in 2028.

In determining this period, the Board took into account the Company’s investment objective to achieve long-term capital growth and the Company’s projected income and expenditure. The Directors believe that five years is an appropriate investment horizon to assess the viability of the Company. It is satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound.

When the Company was launched in late 2010, the Board made a commitment that before the Company’s fifth AGM and at five yearly intervals thereafter, it would formulate and submit to shareholders proposals to provide shareholders with an opportunity to realise the value of their ordinary shares at the applicable NAV per ordinary share less applicable costs. The Board put proposals to shareholders last year. The Company received elections to tender representing 21.5% of the Company, with the vast majority of shareholders choosing to retain their investment. The Board believes this is indicative of the ongoing attractiveness of the Company’s investment strategy and offering.

In making the longer-term viability assessment the Board has considered the following factors:

the Company’s principal risks as set out in the Company’s Annual Report for the year ended 30 September 2022;
the level of ongoing demand for the Company’s ordinary shares;
the impact of a significant fall in Frontier equity markets on the value of the Company’s investment portfolio;
the ongoing relevance of the Company’s investment objective, business model and investment policy in the current environment;
the operational resilience of the Company and its key service providers and their ability to continue to provide a good level of service for the foreseeable future; and
the effectiveness of business continuity plans in place for the Company and key service providers.

The Board has also considered a number of financial metrics, including:

the level of current and historic ongoing charges incurred by the Company;
the Company’s borrowings and its ability to meet its liabilities as they fall due;
the premium or discount to NAV;
the level of income generated by the Company;
future income forecasts; and
the liquidity of the Company’s portfolio.

The Company is an investment company with a relatively liquid equity portfolio (as at 30 September 2022, 81.5% of the equity portfolio was capable of being realised in less than 20 days in normal market conditions) and largely fixed overheads (excluding performance fees) which comprise a very small percentage of net assets (1.36%). In addition, any performance fees are capped at 1% of gross assets in years where the NAV per share has fallen or 2.5% of gross assets in years where the NAV per share has increased. Therefore, the Board has concluded that even in exceptionally stressed operating conditions, the Company would comfortably be able to meet its ongoing operating costs as they fall due.

However, investment companies may face other challenges, such as regulatory changes and the tax treatment of investment trusts, or a significant decrease in size due to substantial share buy-back activity or market falls, which may result in the Company no longer being of sufficient market capitalisation to represent viable investment propositions or no longer being able to continue in operation.

The Board has determined that the factors considered are applicable to the period up to the AGM in 2028 and beyond.

In addition, the Board’s assessment of the Company’s ability to operate in the foreseeable future is included in the Going Concern Statement which can be found in the Directors’ Report in the Company's Annual Report for the year ended 30 September 2022.

Based on the results of their analysis, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment.

SECTION 172 STATEMENT: PROMOTING THE SUCCESS OF THE BLACKROCK FRONTIERS INVESTMENT TRUST PLC
The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain more fully how they have discharged their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit of members as a whole. This enhanced disclosure covers how the Board has engaged with and understands the views of stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that it has had on the Board’s decisions.

As the Company is an externally managed investment company and does not have any employees or customers, the Board considers the main stakeholders in the Company to be the shareholders, key service providers (being the Manager and Investment Manager, the Custodian, Depositary, Registrar and Broker) and investee companies.

A summary of the principal areas of engagement undertaken by the Board with its key stakeholders in the year under review and how Directors have acted upon this to promote the long-term success of the Company is set out in the tables below.

STAKEHOLDERS

Shareholders	Manager and Investment Manager	Other key service providers	Investee companies
Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy. The Board is focused on fostering good working relationships with shareholders and on understanding the views of shareholders in order to incorporate them into the Board’s strategy and objectives in delivering long-term growth and income.	The Board’s main working relationship is with the Manager, who is responsible for the Company’s portfolio management (including asset allocation, stock and sector selection) and risk management, as well as ancillary functions such as administration, secretarial, accounting and marketing services. The Manager has sub-delegated portfolio management to the Investment Manager. Successful management of shareholders’ assets by the Investment Manager is critical for the Company to successfully deliver its investment strategy and meet its objective. The Company is also reliant on the Manager as AIFM to provide support in meeting relevant regulatory obligations under the AIFMD and other relevant legislation.	In order for the Company to function as an investment trust with a listing on the premium segment of the official list of the Financial Conduct Authority (FCA) and trade on the London Stock Exchange’s (LSE) main market for listed securities, the Board relies on a diverse range of advisors for support in meeting relevant obligations and safeguarding the Company’s assets. For this reason, the Board considers the Company’s Custodian, Depositary, Registrar and Broker to be stakeholders. The Board maintains regular contact with its key external providers and receives regular reporting from them through the Board and committee meetings, as well as outside of the regular meeting cycle.	Portfolio holdings are ultimately shareholders’ assets, and the Board recognises the importance of good stewardship and communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors the Manager’s stewardship arrangements and receives regular feedback from the Manager in respect of meetings with the management of portfolio companies.

AREA OF ENGAGEMENT

	Issue	Engagement	Impact
Responsible investing	The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to shareholders over the long term. However, the Board recognises that securities within the Company’s investment remit may involve significant additional risk due to the political volatility and environmental, social and governance concerns facing many of the countries in the Company’s investment universe. While the Company does not have an ESG investment objective or exclude investments based only on ESG criteria, these ethical and sustainability issues should be a consideration of our Manager’s research. More than ever, consideration of sustainable investment is a key part of the investment process and should be factored in when making investment decisions. The Board also have responsibility to shareholders to ensure that the Company’s portfolio of assets is invested in line with the stated investment objective and in a way that ensures an appropriate balance between spread of risk and portfolio returns.	The Board believes that responsible investment and sustainability are important to the longer-term delivery of growth in capital and income and has worked very closely with the Manager throughout the year to regularly review the Company’s performance, investment strategy to understand how ESG considerations are integrated into the investment process. The Manager’s approach to the consideration of ESG factors in respect of the Company’s portfolio, as well as its engagement with investee companies to encourage the adoption of sustainable business practices which support long-term value creation, are kept under review by the Board. The Manager reports to the Board in respect of its consideration of ESG factors and how these are integrated into the investment process; a summary of BlackRock’s approach to ESG and sustainability is set out in the Company’s Annual Report for the year ended 30 September 2022. The Investment Manager’s engagement and voting policy is detailed in the Company’s Annual Report for the year ended 30 September 2022 and on the BlackRock website.	The Board and the Manager believe there is a positive correlation between strong ESG practices and investment performance. Details regarding the Company’s NAV and share price performance can be found in the Chairman’s Statement. The portfolio activities undertaken by the Manager, can be found in the Investment Manager’s Report.
Discount Strategy	The Board believes that the Company’s unique investment offering, strong performance and an attractive dividend yield enhances demand for the Company’s shares, which should help to maintain the Company’s discount at as close to the underlying NAV as possible. The Company has also put in place a 5-yearly mechanism which provides shareholders with a periodic opportunity to exit at NAV less costs.	The Manager reports total return performance statistics to the Board on a regular basis, along with the portfolio yield and the impact of dividends paid on brought forward distributable reserves. The Board reviews the Company’s discount/premium to NAV on a regular basis and holds regular discussions with the Manager and the Company’s broker regarding the discount/premium level. The Board also seeks shareholder authority each year to buy back up to 14.99% of the Company’s issued share capital for cancellation or to be held in treasury for the potential re-issue. Buying back the Company’s shares can, in certain circumstances, help to narrow the discount and/ or reduce the volatility in the share rating.	The average discount for the year to 30 September 2022 was 9.2%. During the year the Company’s share price has traded at a maximum discount of 13.7% and a minimum discount of 3.5%.
Service levels of third party providers	The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of service: including the Manager in respect of investment performance and delivering on the Company’s investment mandate; the Custodian and Depositary in respect of their duties towards safeguarding the Company’s assets; the Registrar in its maintenance of the Company’s share register and dealing with investor queries and the Company’s Brokers in respect of the provision of advice and acting as a market maker for the Company’s shares.	The Manager reports to the Board on the Company’s performance on out a robust annual evaluation of the Manager’s performance, their commitment and available resources. The Board performs an annual review of the service levels of all third-party service providers and concludes on their suitability to continue in their role. The Board receives regular updates from the AIFM, Depositary, Registrar and Brokers on an ongoing basis. The Board has worked closely with the Manager to gain comfort that relevant business continuity plans are operating effectively for all of the Company’s service providers.	All performance evaluations were performed on a timely basis and the Board concluded that all third-party service providers, including the Manager, Custodian, Depositary and Fund Accountant were operating effectively and providing a good level of service. The Board has received updates in respect of business continuity planning from the Company’s Manager, Custodian, Depositary, Fund Accountant, Broker, Registrar and printer, and is confident that arrangements are in place to ensure that a good level of service will continue to be provided
Board composition	The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience and skills, and that it is compliant with best corporate governance practice under the UK Code, including guidance on tenure and the composition of the Board’s committees.	The Board recognises the benefits of diversity and regular refreshment but does not believe tenure alone should determine whether a Director remains independent. As it does each year, the Board, discharging the duties of a Nomination Committee, considers the composition of the Board to ensure that it is suitably aligned with the activities and needs of the Company. Following this review, and in accordance with corporate governance best practice, the Board has resolved to appoint Katrina Hart as Senior Independent Director. The Board will continue to keep the composition of the Board under regular review. If it is determined that a new appointment to the Board is required, it will agree the selection criteria, which will take into account the need to maintain a suitable balance of skills, knowledge, independence and diversity, including that of gender. All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions in respect of the 2022 evaluation process are given in the Company’s Annual Report for the year ended 30 September 2022). All Directors stand for re-election by shareholders annually. Shareholders may attend the AGM and raise any queries in respect of Board composition or individual Directors in person or may contact the Company Secretary or the Chairman using the details provided in the Company's Annual Report for the year ended 30 September 2022 if they wish to raise any issues.	The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board composition in 2022. Details for the proxy voting results in favour and against individual Directors’ re-election at the 2022 AGM are given on the Company’s website at www.blackrock.com/uk/ brfi.
Shareholders	Continued shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its long-term strategy	The Board is committed to maintaining open channels of communication and engaging with shareholders. The Company welcomes and encourages attendance and participation from shareholders at its Annual General Meetings. Shareholders therefore have the opportunity to meet the Directors and Investment Manager and to address questions to them directly. The Annual Report and Half-yearly Financial Report are available on the BlackRock website and are also circulated to shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly factsheets, the daily NAV and other information are also published on the website at www.blackrock.com/uk/brfi. The Board also works closely with the Manager to develop the Company’s marketing strategy, with the aim of ensuring effective communication with shareholders in respect of the investment mandate and objective. Unlike trading companies, one-to-one shareholder meetings usually take the form of a meeting with the Investment Manager as opposed to members of the Board. As well as attending regular investor meetings the Investment Manager holds regular discussions with wealth management desks and offices to build on the case for, and understanding of, long-term investment opportunities in frontier markets. The Manager also coordinates public relations activity, including meetings between the Investment Manager and relevant industry publications to set out their vision for the portfolio strategy and outlook for the region. The Manager releases monthly portfolio updates to the market to ensure that investors are kept up to date in respect of performance and other portfolio developments and maintains a website on behalf of the Company that contains relevant information in respect of the Company’s investment mandate and objective. If shareholders wish to raise issues or concerns with the Board, they are welcome to do so at any time. The Chairman is available to meet directly with shareholders periodically to understand their views on governance and the Company’s performance where they wish to do so. He may be contacted via the Company Secretary whose details are given in the Company's Annual Report for the year ended 30 September 2022.	The Board values any feedback and questions from shareholders ahead of and during Annual General Meetings in order to gain an understanding of their views and will take action when and as appropriate. Feedback and questions will also help the Company evolve its reporting, aiming to make reports more transparent and understandable. Feedback from all substantive meetings between the Investment Manager and shareholders is shared with the Board. The Directors also receive updates from the Company’s broker on any feedback from shareholders, as well as share trading activity, share price performance and an update from the Investment Manager.

THE BOARD’S APPROACH TO ESG CONSIDERATIONS
Environmental, social and governance (ESG) issues can present both opportunities and threats to long-term investment performance. The securities within the Company’s investment remit may involve significant additional risk due to the political volatility and ESG concerns facing many of the countries in the Company’s investment universe. While the Company does not have an ESG investment objective or exclude investments based only on ESG criteria, these ethical and sustainability issues are a consideration of the Board, and your Board is committed to a diligent oversight of the activities of the Manager in these areas. The Board believes effective engagement with management is, in most cases, the most effective way of driving meaningful positive change in the behaviour of investee company management. This is particularly true for the Company’s Manager given the extent of BlackRock’s shareholder engagement and BlackRock’s capacity to vote against management when they fall short of its expectations. As well as the influence afforded by its sheer scale, the Board believes that BlackRock is well placed as Manager to fulfil these requirements due to the integration of ESG into its investment processes, the emphasis it places on sustainability, its collaborative approach in its investment stewardship activities and its position in the industry as one of the largest suppliers of sustainable investment products in the global market. More information on BlackRock’s approach to sustainable investing is set out above.

FUTURE PROSPECTS
The Board’s main focus is on the achievement of capital growth and the future of the Company is dependent upon the success of the investment strategy. The outlook for the Company is discussed in both the Chairman’s Statement and in the Investment Manager’s Report.

SOCIAL, COMMUNITY AND HUMAN RIGHTS ISSUES
As an investment trust, the Company has no direct social or community responsibilities. However, the Company believes that it is in shareholders’ interests to consider environmental, social and governance factors and human rights issues when selecting and retaining investments. Details of the Company’s policy on socially responsible investment are set out in the Company's Annual Report for the year ended 30 September 2022 and the Manager’s approach is described in the Company’s Annual Report for the year ended 30 September 2022.

MODERN SLAVERY
As an investment vehicle the Company does not provide goods or services in the normal course of business and does not have customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking statement under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chain, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.

DIRECTORS, GENDER REPRESENTATION AND EMPLOYEES
The Directors of the Company on 30 September 2022 are set out in the Directors’ biographies section in the Company’s Annual Report for the year ended 30 September 2022. As at 7 December 2022, the Board consisted of three men and three women constituting 50% female Board representation. The Company does not have any employees.

By order of the Board

KEVIN MAYGER
For and on behalf of BlackRock Investment Management (UK) Limited
Company Secretary
7 December 2022

RELATED PARTY TRANSACTIONS

BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of the investment management contract are disclosed in the Directors’ Report in the Company’s Annual Report for the year ended 30 September 2022.

The investment management fee due for the year ended 30 September 2022 amounted to US$3,785,000 (2021: US$3,884,000). No performance fee is payable for the year (2021: US$3,815,000). At the year end, US$882,000 was outstanding in respect of management fees (2021: US$1,867,000) and US$nil (2021: US$3,815,000) was outstanding in respect of performance fees.

In addition to the above services, BIM (UK) has provided the Company with marketing services. The total fees paid or payable for these services for the year ended 30 September 2022 amounted to US$76,000 excluding VAT (2021: US$101,000). Marketing fees of US$53,000 excluding VAT (2021: US$64,000) were outstanding at the year end.

The Company has an investment in the BlackRock Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund of US$71,415,000 (2021: US$96,269,000) at the year end, which is a fund managed by a company within the BlackRock Group.

Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report in the Company’s Annual Report for the year ended 30 September 2022. At 30 September 2022, US$17,000 (£15,000) (2021: US$15,000 (£11,000)) was outstanding in respect of Directors’ fees.

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT AND FINANCIAL STATEMENTS

The Directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the financial statements in accordance with applicable United Kingdom law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors are required to prepare the financial statements under international accounting standards in conformity with UK-adopted international accounting standards (“IASs”). Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

present fairly the financial position, financial performance and cash flows of the Company;
select suitable accounting policies in accordance with IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors and then apply them consistently;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
make judgements and estimates that are reasonable and prudent;
state whether the financial statements have been prepared in accordance with IASs, subject to any material departures disclosed and explained in the financial statements;
provide additional disclosures when compliance with the specific requirements in IASs is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Company’s financial position and financial performance; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are also responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report, Corporate Governance Statement and the Report of the Audit and Management Engagement Committee in accordance with the Companies Act 2006 and applicable regulations, including the requirements of the Listing Rules and the Disclosure Guidance and Transparency Rules. The Directors have delegated responsibility to the Investment Manager and the AIFM for the maintenance and integrity of the Company’s corporate and financial information included on BlackRock’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the Directors, who were appointed as at the date of the Annual Report, confirms to the best of their knowledge that:

the financial statements, which have been prepared in accordance with IASs, give a true and fair view of the assets, liabilities, financial position and loss of the Company; and
the Strategic Report contained in the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The 2018 UK Corporate Governance Code also requires Directors to ensure that the Annual Report and Financial Statements are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit and Management Engagement Committee advise on whether it considers that the Annual Report and Financial Statements fulfil these requirements. The process by which the Committee has reached these conclusions is set out in the Audit and Management Engagement Committee’s report. As a result, the Board has concluded that the Annual Report and Financial Statements for the year ended 30 September 2022, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company’s position and performance, business model and strategy.

For and on behalf of the Board

AUDLEY TWISTON-DAVIES
Chairman
7 December 2022

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2022

		2022			2021
	Notes	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000
Income from investments held at fair value through profit or loss	3	12,369	74	12,443	10,973	–	10,973
Net income from contracts for difference	3	2,328	–	2,328	7,966	–	7,966
Other income	3	55	–	55	–	–	–
		---------------	---------------	---------------	---------------	---------------	---------------
Total income		14,752	74	14,826	18,939	–	18,939
		=========	=========	=========	=========	=========	=========
Net (loss)/profit on investments held at fair value through profit or loss		–	(41,473)	(41,473)	–	88,376	88,376
Net loss on foreign exchange		–	(205)	(205)	–	(1,399)	(1,399)
Net (loss)/profit from derivatives		–	(4,425)	(4,425)	–	53,428	53,428
		---------------	---------------	---------------	---------------	---------------	---------------
Total		14,752	(46,029)	(31,277)	18,939	140,405	159,344
		=========	=========	=========	=========	=========	=========
Expenses
Investment management and performance fees	4	(757)	(3,028)	(3,785)	(777)	(6,922)	(7,699)
Other operating expenses	5	(899)	(78)	(977)	(891)	(60)	(951)
		---------------	---------------	---------------	---------------	---------------	---------------
Total operating expenses		(1,656)	(3,106)	(4,762)	(1,668)	(6,982)	(8,650)
		=========	=========	=========	=========	=========	=========
Net profit/(loss) on ordinary activities before finance costs and taxation		13,096	(49,135)	(36,039)	17,271	133,423	150,694
Finance costs		(3)	(14)	(17)	(2)	(8)	(10)
		---------------	---------------	---------------	---------------	---------------	---------------
Net profit/(loss) on ordinary activities before taxation		13,093	(49,149)	(36,056)	17,269	133,415	150,684
Taxation (charge)/credit		(1,080)	267	(813)	(2,365)	1,153	(1,212)
		---------------	---------------	---------------	---------------	---------------	---------------
Profit/(loss) for the year		12,013	(48,882)	(36,869)	14,904	134,568	149,472
		=========	=========	=========	=========	=========	=========
Earnings/(loss) per ordinary share (cents)	7	6.35	(25.82)	(19.47)	7.09	64.06	71.15
		=========	=========	=========	=========	=========	=========

The total column of this statement represents the Company’s Statement of Comprehensive Income, prepared in accordance with UK-adopted International Accounting Standards (IASs). The supplementary revenue and capital accounts are both prepared under guidance published by the Association of Investment Companies (AIC). All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the year. All income is attributable to the equity holders of the Company.

The Company does not have any other comprehensive income. The net profit/(loss) for the year disclosed above represents the Company’s total comprehensive income/(loss).

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2022

	Notes	Called up share capital US$’000	Share premium account US$’000	Capital redemption reserve US$’000	Special reserve US$’000	Capital reserves US$’000	Revenue reserve US$’000	Total US$’000
For the year ended 30 September 2022
At 30 September 2021		2,418	–	5,798	308,804	26,051	9,707	352,778
Total comprehensive (loss)/income:
Net (loss)/profit for the year		–	–	–	–	(48,882)	12,013	(36,869)
Transactions with owners, recorded directly to equity:
Dividends paid¹	6	–	–	–	–	–	(13,253)	(13,253)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------
At 30 September 2022		2,418	–	5,798	308,804	(22,831)	8,467	302,656
		=========	=========	=========	=========	=========	=========	=========
For the year ended 30 September 2021
At 30 September 2020		2,418	165,984	5,798	230,040	(108,517)	10,261	305,984
Total comprehensive income:
Net profit for the year		–	–	–	–	134,568	14,904	149,472
Transactions with owners, recorded directly to equity:
Cancellation of share premium account²	9	–	(165,984)	–	165,984	–	–	–
Tender offer		–	–	–	(86,434)	–	–	(86,434)
Tender offer costs		–	–	–	(786)	–	–	(786)
Dividends paid³	6	–	–	–	–	–	(15,458)	(15,458)
		---------------	---------------	---------------	---------------	---------------	---------------	---------------
At 30 September 2021		2,418	–	5,798	308,804	26,051	9,707	352,778
		=========	=========	=========	=========	=========	=========	=========

¹ Final dividend of 4.25 cents per share for the year ended 30 September 2021, declared on 1 December 2021 and paid on 11 February 2022 and interim dividend paid in respect of the year ended 30 September 2022 of 2.75 cents per share, declared on 26 May 2022 and paid on 24 June 2022.

² Share premium account was cancelled pursuant to Court approval on 11 March 2021 and US$166.0m was transferred to the special reserve. Please refer to note 9.

³ Final dividend of 4.25 cents per share for the year ended 30 September 2020, declared on 11 December 2020 and paid on 12 February 2021 and interim dividend paid in respect of the year ended 30 September 2021 of 2.75 cents per share, declared on 1 June 2021 and paid on 25 June 2021.

For information on the Company’s distributable reserves please refer to note 9.

STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2022

	Notes	2022 US$’000	2021 US$’000
Non current assets
Investments held at fair value through profit or loss		297,945	354,075
Current assets
Current tax asset		446	418
Other receivables		1,345	3,878
Derivative financial assets held at fair value through profit or loss – contracts for difference		755	7,725
Derivative financial assets held at fair value through profit or loss – forward currency contracts		–	346
Cash and cash equivalents		4,901	5,717
Cash collateral pledged with brokers		7,404	330
		---------------	---------------
Total current assets		14,851	18,414
		=========	=========
Total assets		312,796	372,489
		=========	=========
Current liabilities
Other payables		(4,858)	(11,597)
Derivative financial liabilities held at fair value through profit or loss - contracts for difference		(4,613)	(1,908)
Liability for cash collateral received		(650)	(6,187)
		---------------	---------------
Total current liabilities		(10,121)	(19,692)
		=========	=========
Total assets less current liabilities		302,675	352,797
		=========	=========
Non current liabilities
Management shares of £1.00 each (one quarter paid)		(19)	(19)
		---------------	---------------
Net assets		302,656	352,778
		=========	=========
Equity attributable to equity holders
Called up share capital	8	2,418	2,418
Capital redemption reserve	9	5,798	5,798
Special reserve	9	308,804	308,804
Capital reserves	9	(22,831)	26,051
Revenue reserve	9	8,467	9,707
		---------------	---------------
Total equity		302,656	352,778
		=========	=========
Net asset value per ordinary share (cents)	7	159.86	186.33
		=========	=========

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2022

	2022 US$’000	2021 US$’000
Operating activities
Net (loss)/profit on ordinary activities before taxation	(36,056)	150,684
Add back finance costs	17	10
Net loss/(profit) on investments held at fair value through profit or loss (including transaction costs)	41,473	(88,376)
Net loss/(profit) from derivatives (including transaction costs)	4,425	(53,428)
Financing costs on derivatives	(1,450)	(929)
Net loss on foreign exchange	205	1,399
Sales of investments held at fair value through profit or loss	193,129	253,543
Purchases of investments held at fair value through profit or loss	(203,288)	(182,331)
Sales of Cash Fund¹	214,616	176,807
Purchases of Cash Fund¹	(189,800)	(208,621)
Amounts paid for losses on closure of derivatives	(62,302)	(22,372)
Amounts received on profit on closure of derivatives	69,002	70,902
Decrease/(increase) in other receivables	862	(661)
(Decrease)/increase in other payables	(4,680)	3,780
Decrease in amounts due from brokers	2,017	437
(Decrease)/increase in amounts due to brokers	(2,059)	5,452
Net cash collateral (pledged)/received	(12,611)	3,605
Taxation paid	(841)	(1,566)
	---------------	---------------
Net cash inflow from operating activities	12,659	108,335
	=========	=========
Financing activities
Interest paid	(17)	(10)
Tender offer	–	(86,434)
Tender costs paid	–	(786)
Dividends paid	(13,253)	(15,458)
	---------------	---------------
Net cash outflow from financing activities	(13,270)	(102,688)
	=========	=========
(Decrease)/increase in cash and cash equivalents	(611)	5,647
Effect of foreign exchange rate changes	(205)	(1,399)
	---------------	---------------
Change in cash and cash equivalents	(816)	4,248
Cash and cash equivalents at the start of the year	5,717	1,469
	---------------	---------------
Cash and cash equivalents at the end of the year	4,901	5,717
	=========	=========
Comprised of:
Cash at bank	4,901	5,717
	---------------	---------------
	4,901	5,717
	=========	=========

¹ Cash Fund represents investment in the BlackRock Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. PRINCIPAL ACTIVITY
The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010. The Company was incorporated on 15 October 2010, and this is the twelfth Annual Report.

2. ACCOUNTING POLICIES
The principal accounting policies adopted by the Company have been applied consistently, other than where new policies have been adopted and are set out below.

(a) Basis of preparation
On 31 December 2020, International Financial Reporting Standards (IAS) as adopted by the European Union at that date was brought into UK law and became UK-adopted International Accounting Standards, with future changes being subject to endorsement by the UK Endorsement Board. The Company transitioned to UK-adopted International Accounting Standards in its financial statements with effect from 1 October 2021. There was no impact or changes in accounting policies from the transition.

The financial statements have been prepared under the historic cost convention modified by the revaluation of certain financial assets and financial liabilities held at fair value through profit or loss and in accordance with UK-adopted International Accounting Standards (IASs). All of the Company’s operations are of a continuing nature.

Insofar as the Statement of Recommended Practice (SORP) for investment trust companies and venture capital trusts, issued by the Association of Investment Companies (AIC) in October 2019 and updated in July 2022, is compatible with UK-adopted International Accounting Standards, the financial statements have been prepared in accordance with the guidance set out in the SORP.

Substantially, all of the assets of the Company consist of securities that are readily realisable and, accordingly, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future, for the period to 30 September 2024, being a period of at least twelve months from the date of approval of the financial statements, and therefore consider the going concern assumption to be appropriate. The Directors have reviewed the income and expense projections and the liquidity of the investment portfolio in making their assessment.

The Directors have considered the impact of climate change on the value of the investments included in the Financial Statements and have concluded that:

· there was no further impact of climate change to be considered as the investments are valued based on market pricing as required by IFRS 13; and

· the risk is adequately captured in the assumptions and inputs used in measurement of Level 3 assets, if any, as noted in note 17 of the Company's Annual Report for the year ended 30 September 2022.

None of the Company’s other assets and liabilities were considered to be potentially impacted by climate change.

The Company’s financial statements are presented in US Dollars, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates. All values are rounded to the nearest thousand dollars (US$’000) except where otherwise indicated.

Relevant International Accounting Standards that have yet to be adopted:
IFRS 17 – Insurance contracts (effective 1 January 2023). This standard replaces IFRS 4, which currently permits a wide range of accounting practices in accounting for insurance contracts. IFRS 17 will fundamentally change the accounting by all entities that issue insurance contracts and investment contracts with discretionary participation features.

This standard is unlikely to have any impact on the Company as it has no insurance contracts.

IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction (effective 1 January 2023). The International Accounting Standards Board (IASB) has amended IAS 12 Income Taxes to require companies to recognise deferred tax on particular transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. According to the amended guidance, a temporary difference that arises on initial recognition of an asset or liability is not subject to the initial recognition exemption if that transaction gave rise to equal amounts of taxable and deductible temporary differences. These amendments might have a significant impact on the preparation of financial statements by companies that have substantial balances of right-of-use assets, lease liabilities, decommissioning, restoration and similar liabilities. The impact for those affected would be the recognition of additional deferred tax assets and liabilities.

The amendment of this standard is unlikely to have any significant impact on the Company.

None of the standards that have been issued but are not yet effective are expected to have a material impact on the Company.

(b) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and a capital nature has been presented alongside the Statement of Comprehensive Income.

(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business being investment business.

(d) Income
Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Where no ex-dividend date is available, dividends receivable on or before the year end are treated as revenue for the year. Provision is made for any dividends and interest income not expected to be received. Special dividends, if any, are treated as a capital or a revenue receipt depending on the facts or circumstances of each particular case. The return on a debt security is recognised on a time apportionment basis so as to reflect the effective yield on the debt security. Interest income and deposit interest are accounted for on an accruals basis.

Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the cash equivalent of the dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital.

(e) Expenses
All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the revenue account of the Statement of Comprehensive Income, except as follows:

· expenses which are incidental to the acquisition or sale of an investment are charged to the capital account of the Statement of Comprehensive Income. Details of transaction costs on the purchases and sales of investments are disclosed within note 10 to the financial statements in the Company's Annual Report for the year ended 30 September 2022;

· expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated;

· the investment management fee and finance costs have been allocated 80% to the capital account and 20% to the revenue account of the Statement of Comprehensive Income in line with the Board’s expected long term split of returns, in the form of capital gains and income, respectively, from the investment portfolio; and

· performance fees are allocated 100% to the capital account of the Statement of Comprehensive Income as fees are generated in connection with enhancing the value of the investment portfolio.

(f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were applicable at the balance sheet date.

Where expenses are allocated between capital and revenue accounts, any tax relief in respect of the expenses is allocated between capital and revenue returns on the marginal basis using the Company’s effective rate of corporation tax for the accounting period.

Deferred taxation is recognised in respect of all temporary differences that have originated but not reversed at the financial reporting date, where transactions or events that result in an obligation to pay more taxation in the future or right to pay less taxation in the future have occurred at the financial reporting date. This is subject to deferred taxation assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the temporary differences can be deducted. Deferred taxation assets and liabilities are measured at the rates applicable to the legal jurisdictions in which they arise.

(g) Investments held at fair value through profit or loss
In accordance with IFRS 9, the Company classifies its investments at initial recognition as held at fair value through profit or loss and are managed and evaluated on a fair value basis in accordance with its investment strategy and business model.

All investments are measured initially and subsequently at fair value through profit or loss. Purchases of investments are recognised on a trade date basis. Sales of investments are recognised at the trade date of the disposal.

The fair value of the financial investments is based on their quoted bid price at the financial reporting date, without deduction for the estimated future selling costs. This policy applies to all current and non-current asset investments held by the Company. The fair value of the P-Notes are, when held, based on the quoted bid price of the underlying equity to which they relate.

Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as “Net profit/(loss) on investments held at fair value through profit or loss”. Also included within the heading are transaction costs in relation to the purchase or sale of investments.

For all financial instruments not traded in an active market, the fair value is determined by using various valuation techniques. Valuation techniques include market approach (i.e., using recent arm’s length market transactions adjusted as necessary and reference to the current market value of another instrument that is substantially the same) and the income approach (i.e., discounted cash flow analysis and option pricing models making as much use of available and supportable market data where possible). See note 2(o) below.

(h) Derivatives
The Company can hold long and short positions in contracts for difference (CFDs) which are held at fair value based on the bid prices of the underlying securities in respect of long positions, and the offer prices of the underlying securities in respect of short positions.

Profits and losses on derivative transactions are recognised in the Statement of Comprehensive Income. They are shown in the capital account of the Statement of Comprehensive Income if they are of a capital nature and are shown in the revenue account of the Statement of Comprehensive Income if they are of a revenue nature. To the extent that any profits or losses are of a mixed revenue and capital nature, they are apportioned between revenue and capital accordingly.

(i) Other receivables and other payables
Other receivables and other payables do not carry any interest and are short term in nature and are accordingly stated on an amortised cost basis.

(j) Dividends payable
Under IASs, final dividends should not be accrued in the financial statements unless they have been approved by shareholders before the financial reporting date. Interim dividends should not be recognised in the financial statements unless they have been paid.

Dividends payable to equity shareholders are recognised in the Statement of Changes in Equity.

(k) Foreign currency translation
Transactions involving foreign currencies are converted at the rate ruling at the date of the transaction. Foreign currency monetary assets and liabilities and non-monetary assets held at fair value are translated into US Dollars at the rate ruling on the financial reporting date. Foreign exchange differences arising on translation are recognised in the Statement of Comprehensive Income as a revenue or capital item depending on the income or expense to which they relate. For investment transactions and investments held at the year end, denominated in a foreign currency, the resulting gains or losses are included in the profit/(loss) on investments held at fair value through profit or loss in the Statement of Comprehensive Income.

(l) Cash and cash equivalents
Cash comprises cash in hand, bank overdrafts and on demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.

The Company’s investment in the Cash Fund is managed as part of the Company’s investment policy and, accordingly, this investment along with purchases and sales of this investment has been classified in the Statement of Financial Position as an investment and not as a cash equivalent as defined under IAS 7.

(m) Bank borrowings
Bank overdrafts and loans are recorded as the proceeds received. Finance charges, including any premium payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Statement of Comprehensive Income using the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

(n) Share repurchases/tendered and share reissues
Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased and the capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006. The full cost of the repurchase is charged to the special reserve.

Shares repurchased/tendered and held in treasury – the full cost of the repurchase is charged to the special reserve.

Where treasury shares are subsequently re-issued:

· amounts received to the extent of the repurchase/tender price are credited to the special reserve and capital reserves based on a weighted average basis of amounts utilised from these reserves on repurchases; and

· any surplus received in excess of the repurchase/tender price is taken to the share premium account.

Where new shares are issued, amounts received to the extent of any surplus received in excess of the par value are taken to the share premium account.

Share issue costs are charged to the share premium account. Costs on share reissues are charged to the special reserve and capital reserves.

(o) Critical accounting estimates and judgements
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Directors do not believe that any accounting judgements or estimates have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

3. INCOME

	2022 US$’000	2021 US$’000
Investment income:
UK dividends	–	166
Overseas dividends	10,327	9,344
Overseas special dividends	1,329	1,340
Interest from Cash Fund	713	123
	---------------	---------------
Total investment income	12,369	10,973
	=========	=========
Net income from contracts for difference	2,328	7,966
Deposit interest	55	–
	---------------	---------------
Total income	14,752	18,939
	=========	=========

Dividends and interest received in cash during the year amounted to US$13,766,000 and US$591,000 (2021: US$11,549,000 and US$129,000).

Special dividends of US$74,000 have been recognised in capital (2021: US$nil).

4. INVESTMENT MANAGEMENT AND PERFORMANCE FEES

	2022			2021
	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000
Investment management fee	757	3,028	3,785	777	3,107	3,884
Performance fee	–	–	–	–	3,815	3,815
	---------------	---------------	---------------	---------------	---------------	---------------
Total	757	3,028	3,785	777	6,922	7,699
	=========	=========	=========	=========	=========	=========

An investment management fee equivalent to 1.10% per annum of the Company’s gross assets (defined as the aggregate net assets of the long equity and CFD portfolios of the Company) is payable to the Manager. In addition, the Manager is entitled to receive a performance fee at a rate of 10% of any increase in the NAV at the end of a performance period over and above what would have been achieved had the NAV since launch increased in line with the Benchmark Index, which, since 1 April 2018, is a composite of the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index.

For the purposes of the calculation of the performance fee, the performance of the Net Asset Value total return was measured against the performance of the Benchmark Index on a blended basis.

For the year ended 30 September 2022, the Company’s NAV underperformed the Benchmark Index by 3.6% (2021: outperformed the Benchmark Index by 25.7%) on a US Dollar basis, and as a result, a performance fee of US$nil (2021: US$3,815,000) has been accrued at 30 September 2022. The performance fee payable in any year is capped at an amount equal to 2.5% or 1.0% of the gross assets if there is any increase or decrease in the NAV per share at the end of the relevant performance period, respectively. Any capped excess outperformance for a period may be carried forward to the next two performance periods, subject to the then applicable annual cap. The performance fee is also subject to a high watermark such that any performance fee is only payable to the extent that the cumulative relative outperformance of the NAV is greater than what would have been achieved had the NAV increased in line with the Benchmark Index since the last date in relation to which a performance fee had been paid.

There is no additional fee for company secretarial and administration services.

5. OTHER OPERATING EXPENSES

	2022 US$’000	2021 US$’000
Allocated to revenue:
Custody fee	274	212
Auditor’s remuneration:
– audit services¹	52	72
– other assurance services²	7	9
Registrar’s fee	38	45
Directors’ emoluments³	196	183
Broker fees	36	40
Depositary fees⁴	29	32
Marketing fees	76	101
AIC fees	22	19
FCA fees	16	17
Printing and postage fees	35	57
Employer NI contributions	22	17
Stock exchange listings	12	12
Legal and professional fees	18	18
Write back of prior year expenses⁵	(6)	(4)
Other administrative costs	72	61
	---------------	---------------
	899	891
	=========	=========
Allocated to capital:
Custody transaction charges⁶	78	60
	---------------	---------------
	977	951
	=========	=========
The Company’s ongoing charges⁷, 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, prior year expenses written back and certain non-recurring items, were:	1.36%	1.36%
	---------------	---------------
The Company’s ongoing charges⁷, 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, prior year expenses written back and certain non-recurring items, were:	1.36%	2.44%
	=========	=========

¹ For the year ended 30 September 2021, fees for audit services excluded £10,000 (US$14,000) (excluding VAT) paid in respect of the additional audit work on the Company’s tender offer. These fees are included within tender offer costs on the Statement of Changes in Equity.

² Fees for other assurance services of £6,500 (US$7,000) (2021: £6,500 (US$9,000)) relate to the review of the interim financial statements.

³ Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report. The Company has no employees.

⁴ All expenses other than depositary fees are paid in British Pound Sterling and are therefore subject to exchange rate fluctuations.

⁵ Relates to Directors’ expenses and miscellaneous fees written back during the year (2021: Directors’ search fees, legal fees, Directors’ expenses and AIC fees).

⁶ For the year ended 30 September 2022, expenses of £70,000 (US$78,000) (2021: £45,000 (US$60,000)) were charged to the capital account of the Statement of Comprehensive Income. These relate to transaction costs charged by the custodian on sale and purchase trades.

⁷ Alternative Performance Measures, see Glossary in the Company’s Annual Report for the year ended 30 September 2022.

No fees were payable in 2022 or 2021 in relation to investing in new markets.

6. DIVIDENDS

Dividends paid on equity shares	Record date	Payment date	2022 US$’000	2021 US$’000
2021 final of 4.25 cents (2020: 4.25 cents) per ordinary share	6 January 2022	11 February 2022	8,046	10,251
2022 interim of 2.75 cents (2021: 2.75 cents) per ordinary share	1 June 2022	24 June 2022	5,207	5,207
			---------------	---------------
			13,253	15,458
			=========	=========

The total dividends payable in respect of the year ended 30 September 2022 which form the basis of Section 1158 of the Corporation Tax Act 2010 and Section 833 of the Companies Act 2006, and the amounts proposed, meet the relevant requirements as set out in this legislation.

Dividends paid, proposed or declared on equity shares	2022 US$’000	2021 US$’000
Interim dividend of 2.75 cents per ordinary share (2021: 2.75 cents)	5,207	5,207
Final proposed dividend of 4.25 cents per ordinary share (2021: 4.25 cents)¹	8,046	8,046
	---------------	---------------
	13,253	13,253
	=========	=========

¹ Based on 189,325,748 ordinary shares in issue on 7 December 2022.

7. EARNINGS AND NET ASSET VALUE PER ORDINARY SHARE
Total revenue, capital (loss)/earnings and net asset value per ordinary share are shown below and have been calculated using the following:

	Year ended 30 September 2022	Year ended 30 September 2021
Net revenue profit attributable to ordinary shareholders (US$’000)	12,013	14,904
Net capital (loss)/profit attributable to ordinary shareholders (US$’000)	(48,882)	134,568
	---------------	---------------
Total (loss)/profit attributable to ordinary shareholders (US$’000)	(36,869)	149,472
	=========	=========
Total shareholders’ funds (US$’000)	302,656	352,778
	=========	=========
The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was:	189,325,748	210,079,656
The actual number of ordinary shares in issue at the year end on which the net asset value per ordinary share was calculated was:	189,325,748	189,325,748
Earnings per ordinary share
Revenue earnings per share (cents) – basic and diluted	6.35	7.09
Capital (loss)/earnings per share (cents) – basic and diluted	(25.82)	64.06
	---------------	---------------
Total (loss)/earnings per share (cents) – basic and diluted	(19.47)	71.15
	=========	=========

	As at 30 September 2022	As at 30 September 2021
Net asset value per ordinary share (cents)	159.86	186.33
Ordinary share price (cents)¹	142.61	165.18
Net asset value per ordinary share (pence)²	143.21	138.19
Ordinary share price (pence)	127.75	122.50
	=========	=========

¹ The Company’s share price is quoted in British Pound Sterling and the above represents the US Dollar equivalent based on an exchange rate of US$1.1163 to £1 as at 30 September 2022 (30 September 2021: US$1.3484 to £1).

² Based on an exchange rate of US$1.1163 to £1 at 30 September 2022 and US$1.3484 to £1 at 30 September 2021.

8. CALLED UP SHARE CAPITAL

	Ordinary shares in issue number	Treasury shares number	Total shares number	Nominal value US$’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 1 cent each:
At 30 September 2021	189,325,748	52,497,053	241,822,801	2,418
	-------------------	-------------------	-------------------	-------------------
At 30 September 2022	189,325,748	52,497,053	241,822,801	2,418
	============	============	============	============

During the year, the Company did not issue any ordinary shares (2021: nil). Additionally, during the year, there was no tender offer and no shares were transferred into treasury (2021: 51,884,770 shares for a total gross consideration of US$87,220,000).

Since 30 September 2022 and up to the date of this report, no ordinary shares have been issued or bought back.

9. RESERVES
For the year ended 30 September 2022

			Distributable reserves
	Share premium account US$’000	Capital redemption reserve US$’000	Special reserve US$’000	Capital reserve arising on investments sold US$’000	Capital reserve arising on revaluation of investments held US$’000	Revenue reserve US$’000
At 30 September 2021	–	5,798	308,804	12,959	13,092	9,707
Movement during the year:
Total comprehensive (loss)/income:
Net (loss)/profit for the year	–	–	–	8,789	(57,671)	12,013
Transactions with owners, recorded directly to equity:
Dividends paid	–	–	–	–	–	(13,253)
	---------------	---------------	---------------	---------------	---------------	---------------
At 30 September 2022	–	5,798	308,804	21,748	(44,579)	8,467
	=========	=========	=========	=========	=========	=========

For the year ended 30 September 2021

			Distributable reserves
	Share premium account US$’000	Capital redemption reserve US$’000	Special reserve US$’000	Capital reserve arising on investments sold US$’000	Capital reserve arising on revaluation of investments held US$’000	Revenue reserve US$’000
At 30 September 2020	165,984	5,798	230,040	(56,612)	(51,905)	10,261
Movement during the year:
Total comprehensive income:
Net profit for the year	–	–	–	69,571	64,997	14,904
Transactions with owners, recorded directly to equity:
Cancellation of share premium account	(165,984)	–	165,984	–	–	–
Tender offer	–	–	(86,434)	–	–	–
Tender offer costs	–	–	(786)	–	–	–
Dividends paid	–	–	–	–	–	(15,458)
	---------------	---------------	---------------	---------------	---------------	---------------
At 30 September 2021	–	5,798	308,804	12,959	13,092	9,707
	=========	=========	=========	=========	=========	=========

The share premium account and capital redemption reserve are not distributable reserves under the Companies Act 2006. In accordance with ICAEW Technical Release 02/17BL on Guidance on Realised and Distributable Profits under the Companies Act 2006, the special reserve and capital reserves may be used as distributable reserves for all purposes and, in particular, the repurchase by the Company of its ordinary shares and for payments as dividends. In accordance with the Company’s Articles of Association, the special reserve, capital reserves and the revenue reserve may be distributed by way of dividend. For the year ended 30 September 2022, the loss on capital reserve arising on the revaluation of investments was £44,579,000. For the year ended 30 September 2021, this was a gain of £13,092,000 which was subject to fair value movements. The investments are subject to financial risks, as such capital reserves (arising on investments sold) and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these investments.

The Company’s share premium account was cancelled in the prior period pursuant to shareholders’ approval of a special resolution at the Company’s Annual General Meeting on 2 February 2021 and Court approval on 11 March 2021. The share premium account which totalled US$165,984,000 was transferred to a special reserve.

10. VALUATION OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are either carried in the Statement of Financial Position at their fair value (investments and derivatives) or at an amount which is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals, cash at bank and bank overdrafts). IFRS 13 requires the Company to classify fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements. The valuation techniques used by the Company are explained in the accounting policies note 2(g) to the Financial Statements.

Categorisation within the hierarchy has been determined on the basis of the lowest level of input that is significant to the fair value measurement of the relevant asset.

The fair value hierarchy has the following levels:

Level 1 – Quoted market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The Company does not adjust the quoted price for these instruments.

Level 2 – Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Valuation techniques used for non-standardised financial instruments such as options, currency swaps and other over-the-counter derivatives include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.

As at the year end the CFDs were valued using the underlying equity bid price and the inputs to the valuation were the exchange rates used to convert the CFD valuation from the relevant local currency in which the underlying equity was priced to US Dollars at the year end date. There have been no changes to the valuation technique since the previous year or as at the date of this report.

Level 3 – Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.

This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement.

Assessing the significance of a particular input to the fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager.

Contracts for difference and forward currency contracts have all been classified as Level 2 investments as their valuation has been based on market observable inputs represented by the market prices of the underlying quoted securities and exchange rates to which these contracts expose the Company.

Fair values of financial assets and financial liabilities
The table below sets out fair value measurements using IFRS 13 fair value hierarchy.

Financial assets/(liabilities) at fair value through profit or loss at 30 September 2022	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	226,530	–	–	226,530
Cash Fund	71,415	–	–	71,415
Contracts for difference (fair value)	–	755	–	755
Liabilities:
Contracts for difference (fair value)	–	(4,613)	–	(4,613)
	---------------	---------------	---------------	---------------
	297,945	(3,858)	–	294,087
	=========	=========	=========	=========

Financial assets/(liabilities) at fair value through profit or loss at 30 September 2021	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	257,806	–	–	257,806
Cash Fund	96,269	–	–	96,269
Contracts for difference (fair value)	–	7,725	–	7,725
Forward currency contracts (fair value)	–	346	–	346
Liabilities:
Contracts for difference (fair value)	–	(1,908)	–	(1,908)
	---------------	---------------	---------------	---------------
	354,075	6,163	–	360,238
	=========	=========	=========	=========

There were no transfers between levels of financial assets and financial liabilities during the year recorded at fair value as at 30 September 2022. The Company held no Level 3 assets or liabilities during the year ended 30 September 2022. The Company held one Level 3 long CFD security during the year ended 30 September 2021 which was disposed of prior to 30 September 2021.

A reconciliation of fair value measurement in Level 3 is set out below.

Level 3 Financial assets at fair value through profit or loss at 30 September	2022 US$’000	2021 US$’000
Opening fair value	–	3
Disposal of contract for difference (fair value)¹	–	(3)
	---------------	---------------
Closing fair value	–	–
	=========	=========

¹ During the year the Company disposed of a contract for difference in Kuwait Food (Americana).

For exchange listed equity investments, the quoted price is the bid price. Substantially, all investments are valued based on unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not required to be assessed or adjusted for any business risks, including climate change risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.

11. RELATED PARTY DISCLOSURE
Directors’ emoluments
At the date of this report, the Board consists of six non-executive Directors, all of whom are considered to be independent of the Manager by the Board.

Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the Directors are set out in the Directors’ Remuneration Report in the Company's Annual Report for the year ended 30 September 2022. At 30 September 2022, US$17,000 (£15,000) (2021: US$15,000 (£11,000)) was outstanding in respect of Directors’ fees.

Significant holdings
The following investors are:

a. funds managed by the BlackRock Group or are affiliates of BlackRock Inc. (“Related BlackRock Funds”); or

b. investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and are as a result, considered to be related parties to the Company (“Significant Investors”).

As at 30 September 2022

Total % of shares held by Related BlackRock Funds	Total % of shares held by Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.	Number of Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.
8.4	n/a	n/a

As at 30 September 2021

Total % of shares held by Related BlackRock Funds	Total % of shares held by Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.	Number of Significant Investors who are not affiliates of BlackRock Group or BlackRock, Inc.
8.4	n/a	n/a

12. TRANSACTIONS WITH INVESTMENT MANAGER AND AIFM
BlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of the investment management contract are disclosed in the Directors’ Report in the Company's Annual Report for the year ended 30 September 2022.

The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in Delaware, USA.

13. CONTINGENT LIABILITIES
There were no contingent liabilities at 30 September 2022 (2021: nil).

14. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information contained in this announcement does not constitute statutory accounts as defined in the Companies Act 2006. The 2022 Annual Report and Financial Statements will be filed with the Registrar of Companies shortly.

The report of the Auditor for the year ended 30 September 2022 contains no qualification or statement under Section 498(2) or (3) of the Companies Act 2006.

The comparative figures are extracts from the audited financial statements of BlackRock Frontiers Investment Trust plc for the year ended 30 September 2021, which have been filed with the Registrar of Companies. The report of the Auditor on those financial statements contained no qualification or statement under Section 498 of the Companies Act.

This announcement was approved by the Board of Directors on 7 December 2022.

15. ANNUAL REPORT
Copies of the annual report will be sent to members shortly and will be available from the registered office, c/o The Company Secretary, BlackRock Frontiers Investment Trust plc, 12 Throgmorton Avenue, London EC2N 2DL.

16. ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at 12 Throgmorton Avenue, London EC2N 2DL on Tuesday, 7 February 2023 at 12:30 p.m.

The Annual Report will also be available on the BlackRock website at blackrock.com/uk/brfi. 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.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Melissa Gallagher, Managing Director, Investment Trusts, BlackRock Investment Management (UK) Limited
Tel: 020 7743 3000

Press enquiries:
Lansons Communications

Email: BlackRockInvestmentTrusts@lansons.com

Tel: 020 7490 8828

7 December 2022

12 Throgmorton Avenue
London EC2N 2DL

END

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Blackrock Frontiers Investment Trust (BRFI)

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