Half-year Report

BLACKROCK FRONTIERS INVESTMENT TRUST PLC

LEI: 5493003K5E043LHLO706 - Article 5 Transparency Directive, DTR 4.2

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2021

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 31 March 2021	As at 30 September 2020
US Dollar
Net assets (US$’000)¹	322,288	305,984
Net asset value per ordinary share (cents)	170.23	126.85
Ordinary share price (mid market)² (cents)	172.46	120.62
British Pound Sterling
Net assets (£000)^1,2	233,593	236,683
Net asset value per ordinary share² (pence)	123.38	98.12
Ordinary share price (mid market) (pence)	125.00	93.30
Premium/(discount)⁴	1.3%	(4.9)%
	========	========

	Six months ended 31 March 2021	Year ended 30 September 2020	Since inception^3,5
Performance	%	%	%
US Dollar
Net asset value per share (with dividends reinvested)⁴	+37.7	-20.0	+61.4
Benchmark Index (NR)^5,6	+18.5	-15.6	+35.9
MSCI Frontier Markets Index (NR)^5,6	+12.1	-2.7	+41.3
MSCI Emerging Markets Index (NR)⁶	+22.4	+10.5	+51.4
Ordinary share price (with dividends reinvested)⁴	+46.7	-22.1	+60.7
	--------	--------	--------
British Pound Sterling
Net asset value per share (with dividends reinvested)⁴	+29.0	-23.8	+81.9
Benchmark Index (NR)^5,6	+11.0	-19.6	+52.3
MSCI Frontier Markets Index (NR)^5,6	+5.0	-7.3	+59.7
MSCI Emerging Markets Index (NR)⁶	+14.7	+5.4	+71.1
Ordinary share price (with dividends reinvested)⁴	+37.5	-25.8	+80.8
	========	========	========

¹ The change in net assets reflects tender offers held in the period, dividends paid and market movements.

² Based on an exchange rate of US$1.3797 to £1 at 31 March 2021 and US$1.2928 to £1 at 30 September 2020.

³ The Company was incorporated on 15 October 2010 and its shares were admitted to trading on the London Stock Exchange on 17 December 2010.

⁴ Alternative Performance Measures, see Glossary in the half yearly report and financial statements.

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

Dear Shareholder,

I am pleased to present the Company’s half-yearly financial report for the six months to 31 March 2021.

PERIOD HIGHLIGHTS

· NAV total return of 37.7% (in US Dollar terms with dividends reinvested);

· Share price total return of 46.7% (in US Dollar terms with dividends reinvested);

· Declared interim dividend of 2.75 cents per share;

· Yield of 4.1% (based on share price at 27 May 2021, interim dividend for 2021 and final dividend for 2020); and

· A total of 51.8m shares repurchased pursuant to Tender Offer.

PERFORMANCE AND OVERVIEW
During the six months to 31 March 2021, the Company achieved a NAV total return in US Dollars of 37.7%, significantly outperforming its Benchmark Index which returned 18.5%. The Company’s share price total return was 46.7% as the shares re-rated to a small premium. By comparison, the Company’s previous Benchmark Index, the MSCI Frontier Markets Index, returned 12.1% and the MSCI Emerging Markets Index returned 22.4%.

During the period under review, the Company outperformed its Benchmark Index by an impressive 19.2%. The strong relative and absolute performance can be attributed to a number of factors and demonstrates the benefits of exposure to differentiated markets which can deliver strong domestic growth. Following a challenging year in 2020, it is pleasing to see green shoots of recovery in many countries within our investment universe, in particular within South East Asia and Emerging Europe, areas to which our portfolio is well exposed. This market optimism is driven by many factors, not least vaccine progress and the promise of a return to some form of economic normality. Your investment managers provide a detailed description of the key contributors and detractors to performance during the period, portfolio activity and their views on the outlook for the second half of the year in their report which follows.

I am also pleased to be able to report that subsequent to the period end and, as at 27 May 2021, the net asset value per share of the Company has increased by 5.3% from 170.23 cents per share to 179.26 cents per share. The Company’s Benchmark Index has increased by 3.4%.

REVENUE RETURN AND DIVIDENDS
The Company’s revenue return per share for the six months ended 31 March 2021 amounted to 1.98 cents (2020: 1.77 cents). The Board recognises that many shareholders value the dividends paid by the Company, but is also cognisant that there may be a reduction over the course of the financial year in dividends received from the companies in the portfolio due to the impact of the COVID-19 pandemic.

However, one of the benefits of the closed-end structure is the ability to use revenue or capital reserves to smooth dividends. Based on discussions with the investment manager, the Board is confident that the current pressure on income within the portfolio does not represent a structural change and should prove short-lived. As a result, we have decided to utilise a small amount of reserves to enable us to maintain the dividend at the interim stage.

The Board is therefore pleased to declare an interim dividend of 2.75 cents per share (2020: 2.75 cents per share) payable on 25 June 2021 to shareholders on the Company’s register on 11 June 2021. The shares will go ex-dividend on 10 June 2021. The final dividend of 4.25 cents per share for the year ended 30 September 2020 was declared on 11 December 2020 and paid to shareholders on 12 February 2021.

SHARE CAPITAL
The Directors are keen to ensure that the Company’s share price does not trade at a significant discount or premium to the underlying NAV. Accordingly, the Directors monitor the share price and will consider the issue of ordinary shares at a premium or repurchase at a discount to help balance demand and supply in the market if it believes it is in shareholders’ interests to do so. For the period under review, the Company’s ordinary shares traded at an average discount to NAV of 3.1%, but were trading at a premium of 1.3% on a cum-income basis at 31 March 2021. The Directors currently have the authority to buy back shares in the market equivalent to 14.99% of the Company’s issued share capital and also to issue new shares equivalent to 10% of the Company’s issued share capital (excluding any shares held in treasury).

The Board believes that the issue of new shares by the Company, when demand cannot be met in the market, helps to regulate the share price premium to NAV, and that the economies of scale achieved through enlarging the Company are beneficial to shareholders. No new shares were issued or sold from treasury during the period or up to the date of this report. A total of 51,884,770 Ordinary shares were bought back in connection with the Company’s Tender Offer. Further details of this transaction can be found below and in note 10 to the financial statements.

PERIODIC OPPORTUNITY FOR THE RETURN OF CAPITAL
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 them with an opportunity to realise the value of their ordinary shares at the applicable NAV per ordinary share less costs. Accordingly, in January 2021 the Company published a shareholder Circular in which it was proposed that all shareholders should have the opportunity to participate in a 100% Tender Offer. The proposals were subsequently approved at the Company’s Annual General Meeting held on 2 February 2021. The Tender Offer closed on 19 February 2021 and implementation of the Tender Offer was approved by Shareholders at a general meeting of the Company held on 23 February 2021.

It was pleasing to see that following the Tender Offer election period, the majority of the Company’s shareholders chose to retain their investment in the Company, and 21.5% of the Company’s issued shares were tendered (of which 19% was by three shareholders).

We continue to believe that frontier markets offer significant opportunity and I would like to thank continuing shareholders for their vote of confidence in both the mandate and the investment managers as we move forward to the next chapter in the life of the Company. The Directors believe that shareholders value the five yearly exit opportunity and therefore intend to continue to provide the opportunity to realise ordinary shares at NAV less costs at five yearly intervals. The next event will take place around the time of the Company’s AGM in 2026. Further information on the Tender Offer can be found in note 10 to the financial statements.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)
ESG issues can present both opportunities and risks to long-term investment performance. These ethical and sustainability issues are a key focus of the Board, and your Board is committed to a diligent oversight of the activities of the Investment Manager in these areas. The frontier markets in which the Company can invest are home to almost 3 billion of the world’s population and our portfolio includes investment in power, infrastructure, renewable energy, food and healthcare. 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 may aid the sustainability of long-term returns. Further information on the Board’s policy with regard to ESG and the Manager’s approach can be found in the Company’s Annual Report for the year ended 30 September 2020 at www.blackrock.com/uk/brfi.

OUTLOOK
Frontier markets will continue to be driven, to a significant extent, by local factors and by domestic investor flows and this aspect continues to offer significant diversification benefits in these challenging times. Our portfolio management team believe that a return to economic growth, and a lower fiscal burden assumed by emerging and frontier markets during the COVID-19 easing, should mean that many of our chosen markets recover relatively quickly in the forthcoming months, although volatility is likely to remain a factor and selectivity will be key.

The team’s focus on long term capital growth provides us with confidence that the holdings in the Company’s portfolio are well placed to prosper as economic activity resumes. In addition, they believe that there are significant value opportunities available in the markets in which we invest. Therefore, your Board believes that the Company’s frontier universe continues to represent a very compelling proposition for the medium to long-term investor.

AUDLEY TWISTON-DAVIES
Chairman
1 June 2021

INVESTMENT MANAGER’S REPORT

MARKET REVIEW
Much of 2020 was driven by shifts in investor sentiment, particularly surrounding COVID-19 containment, the easing of global lockdown measures, and development of a vaccine. Countries that were able to respond (and rebound) quickly dominated performance, while a lack of investor confidence caused many smaller markets to lag, despite material improvements in economic conditions.

The fourth quarter of 2020, however, saw a major upturn in market support driven by a well-received election result in the US and expectations of a more stable geopolitical environment, as well as greater vaccine optimism. With COVID-19 concerns abating, Southeast Asian economies such as Indonesia and the Philippines rebounded as improving domestic growth was acknowledged by the market. Elsewhere, Latin America surged as commodities rallied on an improving growth outlook and tight supply/demand dynamics, while parts of Emerging Europe also saw healthy gains on the back of strong local stimulus support.

The rotation into more cyclical areas of the market has persisted into 2021, however, performance has been split. Early in the year, smaller markets rallied strongly as global growth accelerated and the realisation that we would eventually emerge from COVID-19 was more widely acknowledged. At the same time, what started as price rises due to supply side constraints in the commodities sector, has been met now with strong demand, causing the majority of both soft and hard commodities to reach prices that we have not seen for multiple years. While growth is expected to accelerate, inflationary pressures have increased the likelihood of tighter monetary policy from the US, dampening the appetite for risk assets since March. We expect volatility to rise over the coming months as inflation outcomes are more appropriately priced and COVID-19 related headlines pass through, but our optimism for economic normalisation remains unchanged and we continue to believe frontier assets are very attractively valued in this context.

PORTFOLIO REVIEW
In the six months to 31 March 2021, the Company’s NAV has returned +37.7%¹ (on a US Dollar basis with dividends reinvested) versus its Benchmark Index which returned +18.5%². Over this time period, the MSCI Emerging Markets Index gained 22.4%² and the MSCI Frontier Markets Index returned +12.1%². Since inception the Company’s NAV returned +61.4%¹, compared to +35.9%² return of its Benchmark Index, +41.3%² return of the MSCI Frontier Markets Index and +51.4%² return of the MSCI Emerging Markets Index (all performance returns are in US Dollar terms with dividends reinvested).

The Company’s pro-recovery positioning paid off as we saw frontier market performance catch-up with the recovery seen in the rest of the world. Strong performance was seen across all regions in the portfolio.

In South East Asia, consumer-related names such as Aeon Thana Sinsap (+97%; Thailand, credit cards), Astra International (+28%; Indonesia, autos) and MR.DIY (+109%; Malaysia, home improvement), were among the top contributors as sequential sales growth reflected an improving domestic recovery.

Emerging Europe contributed across sectors. National Bank of Greece (+130%) was a standout performer having shown signs of improved balance sheet strength and a path to reducing non-performing loans. Ukrainian iron ore pellet producer, Ferrexpo, gained (+148%) over the period, supported by rising commodity prices on improving growth expectations. The decision to not hold Polish gaming stock, CD Projekt, greatly benefitted relative returns as their long-awaited title, Cyperpunk 2077, was released to mixed reviews. The Company also participated in the successful IPOs of Allegro (Poland’s largest e-commerce platform) and JSC Kaspi (a Kazakh fintech, offering integrated banking, marketplace and payments services to an increasingly digitalised consumer).

In Latin America, Sociedad Química y Minera de Chile, the lithium producer, performed well (+66%) as the demand for electric vehicles remained strong. Elsewhere, select airline and leisure exposures performed well as accelerated global vaccine deployment increased optimism for more normalised travel in the second half of 2021. Panama’s Copa Airlines (+59%) was a top performer in this area.

On the other hand, most detractors were stock-specific in nature. That said, exposure to Turkey more broadly weighed on returns. Positions here sold off sharply on the surprise replacement of the Head of the Central Bank. We had increased positions in Turkey in the fourth quarter of 2020 on signs of more orthodox monetary policy, which this announcement sent into reverse. Turkey is in a precarious funding position having used up reserves and deposits to support its currency while still requiring further US Dollars to finance imports and service its debt. We reduced this exposure significantly as a result, concerned about further currency devaluation and risks of capital controls.

Elsewhere, Egyptian tobacco stock Eastern Company underperformed, driven by the government’s proposal to allow other companies to enter the cigarette manufacturing industry in Egypt, effectively breaking the company’s monopoly. Off-benchmark positions in Filipino gaming stock, Bloomberry Resorts, and Saudi hospital operator, National Medical Care, were also among the period’s worst detractors.

Throughout the period we have taken profits as stocks have recovered, adding commodity-oriented sectors that can benefit from strong supply-demand dynamics. In response to concerns over rising rates in the near term, we also reduced exposure to “carry” countries, those with greater debt loads and interest obligations, that are more reliant on foreign capital investment, such as Indonesia and the Philippines. In addition to the Turkish trades described above, we exited our position in KAZ Minerals following a bid from the controlling shareholder to take the company private. We have increased exposure to property company Emaar Properties as the UAE real estate market is finally showing some signs of life. We also added to our positions in Saudi banks which are beneficiaries of strong domestic loan growth and rising US yields.

OUTLOOK
While during recent years, despite strong growth, frontier markets have been out of favour, we believe that in a post-COVID-19 world awash with record liquidity, investors will remember the considerable attractions of our investment universe.

Strong liquidity, high levels of disposable income and accelerating vaccine deployment continue to provide a foundation for economic normalisation globally. Additionally, robust growth and lower fiscal burden through the crises support the view that emerging markets will come out of COVID-19 stronger than expected, while rising rates should support the rotation from growth to value. While we remain optimistic that large scale stimulus will drive a global activity pick-up, inflationary pressures and the increased likelihood of tighter monetary policy from the US may weigh on emerging and frontier equities in the near term.

Our view that emerging markets will overcome COVID-19 in the second half of 2021 remains unchanged. However, as new variants sweep through the emerging world at different paces, the recovery will not be uniform and tracking single country progress is paramount. We expect volatility to increase over the next few months and believe selectivity will be key in driving returns over this period. Valuations are yet to keep pace with strong earnings, and, combined with low ownership, we think investors should pay attention to the asset class now.

SAM VECHT AND EMILY FLETCHER
BlackRock Investment Management (UK) Limited
1 June 2021

¹ Source: BlackRock, as at 31 March 2021.

² Source: MSCI. With effect from 1 April 2018 the Benchmark index changed to MSCI Emerging Markets ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index. Prior to 1 April 2018, the Benchmark Index was MSCI Frontier Markets Index. The performance of the Benchmark Index has been blended to reflect this change.

INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT

The Chairman’s Statement and the Investment Manager’s Report give details of the important events which have occurred during the period and their impact on the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES
A detailed explanation of the risks relating to the Company can be divided into various areas as follows:

· Investment Performance Risk;

· Income/Dividend Risk;

· Legal and Regulatory Risk;

· Counterparty Risk;

· Operational Risk;

· Political Risk;

· Financial Risk; and

· Market Risk.

The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended 30 September 2020. A detailed explanation can be found in the Strategic Report on pages 41 to 44 and in note 18 on pages 102 to 115 of the Annual Report and Financial Statements which are available on the website maintained by BlackRock at: www.blackrock.com/uk/brfi.

The outbreak of COVID-19 has developed into a global pandemic and has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19 has adversely affected the economies of many nations across the entire global economy, individual issuers and capital markets, and could continue with extents that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 pandemic and its effects cannot be determined with certainty.

In the view of the Board, other than those noted above, there have not been any material changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties, as summarised, are equally applicable to the remaining six months of the financial year as they were to the six months under review.

GOING CONCERN
The Board is mindful of the uncertainty surrounding the potential duration of the COVID-19 pandemic and its impact on the global economy, the Company’s assets and the potential for the level of revenue derived from the portfolio to reduce versus the prior year. Nevertheless, the Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective and the Company’s projected income and expenditure, are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future and is financially sound. The Board believes that the Company and its key third party service providers have in place appropriate business continuity plans and will be able to maintain service levels through the COVID-19 pandemic.

Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are considered to be readily realisable and is able to meet all of its liabilities from its assets and income generated from them. Ongoing charges (excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items) were approximately 1.36% of average daily net assets for the year ended 30 September 2020.

RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE AIFM AND INVESTMENT MANAGER
BlackRock Fund Managers Limited (BFM) is the Company’s Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. 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)). Both BFM and BIM (UK) are regarded as related parties under the Listing Rules. Details of the management and performance fees payable are set out in note 4 and note 14. The related party transactions with the Directors are set out in note 13.

DIRECTORS’ RESPONSIBILITY STATEMENT
The Disclosure Guidance and Transparency Rules (DTR) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.

The Directors confirm to the best of their knowledge that:

· the condensed set of financial statements contained within the half yearly financial report has been prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting; and

· the interim management report, together with the Chairman’s Statement and Investment Manager’s Report, includes a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rules.

The half yearly financial report has been reviewed by the Company’s Auditors.

The half yearly financial report was approved by the Board on 1 June 2021 and the above responsibility statement was signed on its behalf by the Chairman.

AUDLEY TWISTON-DAVIES
For and on behalf of the Board
1 June 2021

TEN LARGEST INVESTMENTS^¹

1 MOBILE WORLD (2020: 3rd)

Consumer Discretionary (Vietnam)
Portfolio value: $11,518,000
Percentage of net assets: 3.6% (2020: 3.0%) ²

Vietnam’s largest retailer by revenue, operating over 4,000 stores nationwide within the mobile phone, consumer electronics and grocery retail chains. The business has expanded regionally with mobile phone and consumer electronics stores now open in Cambodia.

2 NATIONAL COMMERCIAL BANK (2020: n/a)
Financials (Saudi Arabia)
Portfolio value: $11,223,000
Percentage of net assets: 3.5% (2020: n/a)²

Known as Saudi National Bank (SNB) following the merger with Samba Financial Group, effective 1 April 2021. SNB is the largest financial institution in Saudi Arabia offering personal banking, commercial banking and investment services.

3 CP ALL (2020: 7th)
Consumer Staples (Thailand)
Portfolio value: $11,211,000
Percentage of net assets: 3.5% (2020: 2.6%)

Initially established to operate convenience stores in Thailand under the “7-Eleven” trademark, the company has expanded to include bill payment and collection services, manufacturing and sale of convenience store food and bakery products and membership-based wholesale services through the Makro brand.

4 FPT (2020: 15th)
Information Technology (Vietnam)
Portfolio value: $10,852,000
Percentage of net assets: 3.4% (2020: 2.3%)²

Vietnam’s largest information technology services company, with a focus on information and communications technologies.

5 JSC Kaspi (2020: n/a)
Financials (Kazakhstan)
Portfolio value: $10,018,000
Percentage of net assets: 3.1% (2020: n/a)

A Kazakh fintech company, offering consumers integrated banking, marketplace and payments services.

6 EMAAR PROPERTIES (2020: 37th)
Real Estate (United Arab Emirates)
Portfolio value: $9,717,000
Percentage of net assets: 3.0% (2020: 1.7%)

An Emirati real estate development company with proven competencies in properties, shopping malls, retail and hospitality and leisure.

7 BANK RAKYAT (2020: 27th)
Financials (Indonesia)
Portfolio value: $9,671,000
Percentage of net assets: 3.0% (2020: 1.9%)

One of Indonesia’s largest banks, focusing on lending to micro, small and medium-size enterprises.

8 PTT EXPLORATION & PRODUCTION (2020: 1st)
Energy (Thailand)
Portfolio value: $9,111,000
Percentage of net assets: 2.8% (2020: 3.2%)

A Thai petroleum exploration and production company focusing on natural gas, crude oil and condensate. The company has operations across Asia Pacific, the Americas, the Middle East and Africa.

9 YANBU NATIONAL PETROCHEMICAL (2020: 38th)
Materials (Saudi Arabia)
Portfolio value: $8,706,000
Percentage of net assets: 2.7% (2020: 1.7%)²

A Saudi Arabian company focused on the manufacture of various ethylene, polyethylene, and butene products.

10 GENTING (2020: 53rd)
Consumer Discretionary (Malaysia)
Portfolio value: $7,997,000
Percentage of net assets: 2.5% (2020: 1.1%)

A Malaysian hospitality group, developing, operating, and marketing casinos and integrated resorts across the world. The company has operations in the Americas, Australia, Malaysia, the Philippines, Singapore, and the UK.

¹ All percentages reflect the gross market exposure of the holding as a percentage of net assets. Percentages in brackets represent the value of the holding as at 30 September 2020. Together, the ten largest investments represent 31.1% of net assets (30 September 2020: 27.6%).

² Exposure gained via contracts for difference only.

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

	%
Saudi Arabia	16.8
Indonesia	10.8
Thailand	8.8
Vietnam	8.5
Greece	8.0
Egypt	6.2
Kazakhstan	5.9
Chile	5.3
Philippines	5.1
Malaysia	5.1
United Arab Emirates	4.4
Poland	3.3
Pakistan	2.4
Hungary	2.2
Romania	2.1
Peru	1.7
Kuwait	1.6
Ukraine	1.6
Qatar	1.6
Colombia	1.6
Pan-Emerging Europe	1.5
Panama	1.5
Kenya	1.2
Turkey	1.0
Nigeria	0.5
Pan Africa	0.4

COUNTRY ALLOCATION RELATIVE TO THE BENCHMARK INDEX (%) ¹

	%
Greece	7.2
Vietnam	6.3
Egypt	5.6
Kazakhstan	5.4
Pakistan	2.3
Ukraine	1.6
Indonesia	1.5
Romania	1.5
Pan-Emerging Europe	1.5
Panama	1.5
Chile	0.8
Kenya	0.6
Hungary	0.6
Colombia	0.4
Pan Africa	0.4
Philippines	0.2
Nigeria	0.1
Peru	0.1
United Arab Emirates	0.0
Other	-0.1
Tunisia	-0.1
Sri Lanka	-0.1
Mauritius	-0.1
Lithuania	-0.1
Jordan	-0.1
Bangladesh	-0.1
Oman	-0.2
Croatia	-0.2
Slovenia	-0.3
Bahrain	-0.5
Czech Republic	-0.8
Morocco	-0.9
Argentina	-0.9
Turkey	-1.2
Poland	-1.5
Kuwait	-2.3
Qatar	-3.6
Saudi Arabia	-4.4
Malaysia	-5.4
Thailand	-5.6

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

Sources: BlackRock and Datastream.

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

	%
Financials	37.0
Materials	15.2
Industrials	12.9
Consumer Discretionary	12.8
Energy	9.0
Consumer Staples	8.1
Real Estate	4.3
Information Technology	3.4
Health Care	3.1
Utilities	2.0
Communication Services	1.3

SECTOR ALLOCATION RELATIVE TO THE BENCHMARK INDEX (%) ¹

	%
Consumer Discretionary	8.3
Industrials	7.4
Materials	3.0
Information Technology	2.4
Energy	1.2
Consumer Staples	0.5
Real Estate	0.0
Health Care	-0.3
Financials	-2.0
Utilities	-2.8
Communication Services	-8.6

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

Sources: BlackRock and Datastream.

INVESTMENTS AS AT 31 MARCH 2021

EQUITY PORTFOLIO

Company	Principal country of operation	Sector	Fair value¹ US$’000	Gross market exposure as a % of net assets³
Bank Rakyat	Indonesia	Financials	9,671	3.0
Indocement Tunggal Prakarsa	Indonesia	Materials	7,656	2.4
AKR Corporindo TBK	Indonesia	Energy	4,858	1.5
Mitra Adiperkasa	Indonesia	Consumer Discretionary	4,525	1.4
Pakuwon Jati	Indonesia	Real Estate	4,305	1.3
Bank Mandiri	Indonesia	Financials	3,820	1.2
			--------------	--------------
			34,835	10.8
			========	========
CP All	Thailand	Consumer Staples	11,211	3.5
PTT Exploration & Production	Thailand	Energy	9,111	2.8
Aeon Thana Sinsap	Thailand	Financials	4,494	1.4
			--------------	--------------
			24,816	7.7
			========	========
Eastern Company	Egypt	Consumer Staples	6,308	2.0
EFG Hermes Holdings	Egypt	Financials	6,127	1.9
Orascom Construction	Egypt	Industrials	4,430	1.4
Integrated Diagnostics	Egypt	Health Care	2,493	0.8
			--------------	--------------
			19,358	6.1
			========	========
JSC Kaspi	Kazakhstan	Financials	10,018	3.1
Kazatomprom	Kazakhstan	Energy	4,886	1.5
Halyk Savings Bank	Kazakhstan	Financials	4,057	1.3
			--------------	--------------
			18,961	5.9
			========	========
Terna Energy	Greece	Utilities	5,155	1.6
Hellenic Telecom Organisation	Greece	Communication Services	4,132	1.3
Eurobank Ergasias Services & Holdings	Greece	Financials	3,656	1.2
National Bank of Greece	Greece	Financials	2,956	0.9
Titan Cement International	Greece	Materials	2,678	0.8
			--------------	--------------
			18,577	5.8
			========	========
Empresas CMPC	Chile	Materials	7,599	2.4
Sociedad Química y Minera de Chile ADR	Chile	Materials	4,918	1.5
Sociedad Química y Minera Chile Rights 20/04/2021	Chile	Materials	54	0.0
Banco Santander Chile	Chile	Financials	4,422	1.4
			--------------	--------------
			16,993	5.3
			========	========
LT Group	Philippines	Industrials	7,518	2.3
Bloomberry Resorts	Philippines	Consumer Discretionary	4,974	1.5
International Container Terminal Services	Philippines	Industrials	4,329	1.3
			--------------	--------------
			16,821	5.1
			========	========
Emaar Properties	United Arab Emirates	Real Estate	9,717	3.0
Air Arabia	United Arab Emirates	Industrials	4,611	1.4
			--------------	--------------
			14,328	4.4
			========	========
Genting	Malaysia	Consumer Discretionary	7,997	2.5
RHB Bank	Malaysia	Financials	3,121	1.0
Westports Holdings	Malaysia	Industrials	2,905	0.9
			--------------	--------------
			14,023	4.4
			========	========
KRUK	Poland	Financials	4,834	1.5
LPP	Poland	Consumer Discretionary	3,196	1.0
			--------------	--------------
			8,030	2.5
			========	========
Banca Transilvania	Romania	Financials	6,690	2.1
			--------------	--------------
			6,690	2.1
			========	========
Credicorp	Peru	Financials	5,481	1.7
			--------------	--------------
			5,481	1.7
			========	========
Bancolombia	Colombia	Financials	5,285	1.6
			--------------	--------------
			5,285	1.6
			========	========
Industries Qatar	Qatar	Industrials	5,186	1.6
			--------------	--------------
			5,186	1.6
			========	========
Ferrexpo	Ukraine	Materials	5,184	1.6
			--------------	--------------
			5,184	1.6
			========	========
Erste Group Bank	Pan-Emerging Europe	Financials	4,954	1.5
			--------------	--------------
			4,954	1.5
			========	========
Copa Airlines	Panama	Industrials	4,902	1.5
			--------------	--------------
			4,902	1.5
			========	========
Equity Group	Kenya	Financials	3,480	1.1
			--------------	--------------
			3,480	1.1
			========	========
Tupras	Turkey	Energy	3,195	1.0
			--------------	--------------
			3,195	1.0
			========	========
Guaranty Trust Bank	Nigeria	Financials	1,643	0.5
			--------------	--------------
			1,643	0.5
			========	========
Hub Power	Pakistan	Utilities	1,408	0.4
			--------------	--------------
			1,408	0.4
			========	========
Vivo Energy	Pan Africa	Consumer Discretionary	1,286	0.4
			--------------	--------------
			1,286	0.4
			========	========
Equity investments			235,436	73.0
			========	========
BlackRock’s Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund (Cash Fund)			86,057	26.7
			--------------	--------------
Total equity investments (including Cash Fund)			321,493	99.7
			========	========

CFD PORTFOLIO

Company	Principal country of operation	Sector	Fair value¹ US$’000	Gross market exposure³ US$’000	Gross market exposure as a % of net assets³
Long positions
National Commercial Bank	Saudi Arabia	Financials		11,223	3.5
Yanbu National Petrochemical	Saudi Arabia	Materials		8,706	2.7
United International Transport	Saudi Arabia	Industrials		7,600	2.4
Saudi British Bank	Saudi Arabia	Financials		7,191	2.2
Sahara International Petrochemical	Saudi Arabia	Materials		7,103	2.2
Leejam Sports	Saudi Arabia	Consumer Discretionary		5,080	1.6
National Medical Care	Saudi Arabia	Health Care		5,012	1.6
Saudi Arabian Mining Company	Saudi Arabia	Materials		1,960	0.6
				--------------	--------------
				53,875	16.8
				========	========
Mobile World	Vietnam	Consumer Discretionary		11,518	3.6
FPT	Vietnam	Information Technology		10,852	3.4
Quang Ngai Sugar	Vietnam	Consumer Staples		4,924	1.5
				--------------	--------------
				27,294	8.5
				========	========
MOL Group	Hungary	Energy		7,163	2.2
				--------------	--------------
				7,163	2.2
				========	========
National Bank of Greece	Greece	Financials		3,810	1.2
Titan Cement International	Greece	Materials		3,256	1.0
				--------------	--------------
				7,066	2.2
				========	========
MCB Bank	Pakistan	Financials		6,426	2.0
				--------------	--------------
				6,426	2.0
				========	========
LPP	Poland	Consumer Discretionary		2,706	0.8
				--------------	--------------
				2,706	0.8
				========	========
Orascom Construction	Egypt	Industrials		419	0.1
				--------------	--------------
				419	0.1
				========	========
Equity Group	Kenya	Financials		288	0.1
				--------------	--------------
				288	0.1
				========	========
Mitra Adiperkasa	Indonesia	Consumer Discretionary		112	0.0
				--------------	--------------
				112	0.0
			========	========	========
Total long CFD positions			1,923	105,349	32.7
			========	========	========
Total short CFD positions			531	(10,924)	(3.4)
			========	========	========
Total CFD portfolio			2,454	94,425	29.3
			========	========	========

FAIR VALUE AND GROSS MARKET EXPOSURE OF INVESTMENTS
as at 31 March 2021

	Fair value¹	Gross market exposure³	Gross market exposure as a % of net assets³
Portfolio	US$’000	US$’000	31 March 2021	31 March 2020	30 September 2020
Equity investments	235,436	235,436	73.0	77.4	78.6
Total long CFD positions	1,923	105,349	32.7	29.0	29.2
Total short CFD positions	531	(10,924)	(3.4)	(2.5)	0.0
Forward currency positions	202	17,363	5.4	6.3	0.0
	--------------	--------------	--------------	--------------	--------------
Total gross exposure	238,092	347,224	107.7	110.2	107.8
	========	========	========	========	========
Cash Fund	86,057	86,057	26.7	21.9	21.1
	--------------	--------------	--------------	--------------	--------------
Total investments	324,149	433,281	134.4	132.1	128.9
	========	========	========	========	========
Cash and cash equivalents (net of bank overdraft)^1,2	841	(108,291)	(33.6)	(36.1)	(28.7)
Other net current liabilities	(2,683)	(2,683)	(0.8)	4.0	(0.2)
Non current liabilities	(19)	(19)	0.0	0.0	0.0
	--------------	--------------	--------------	--------------	--------------
Net assets	322,288	322,288	100.0	100.0	100.0
	========	========	========	========	========

The Company was geared through the use of long and short CFD positions and gross and net gearing as at 31 March 2021 was 9.1% and 2.3% respectively (31 March 2020: 8.9% and 3.9%; 30 September 2020: 7.8% and 7.8% respectively as the Company did not have any short positions at that date). Gross and net gearing are Alternative Performance Measures, see Glossary in the half yearly report and financial statements.

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$2,454,000 represents the fair valuation of all the CFD contracts, which is determined based on the difference between the notional transaction price and value of the underlying shares in the contract (in effect the unrealised gains/(losses) on the exposed positions). The cost of purchasing the securities held through long CFD positions directly in the market would have amounted to US$103,426,000 at the time of purchase, and subsequent market movement in prices have resulted in unrealised gains on the long CFD positions of US$1,923,000 resulting in the value of the total market exposure to the underlying securities increasing to US$105,349,000 as at 31 March 2021. The notional price of selling the securities to which exposure was gained via the short CFD positions would have been US$11,455,000 at the time of entering into the contract, and subsequent market movement in prices have resulted in unrealised gains on the short CFD positions of US$531,000 resulting in the value of the market exposure of these investments decreasing to US$10,924,000 at 31 March 2021. If the short positions had been closed on 31 March 2021 this would have resulted in a gain of US$531,000 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 CFDs.

³ Market exposure in the case of equity investments is the same as fair value. In the case of 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. The notional value of the forward currency positions was US$17,161,000 at the time of purchase, and subsequent market movement in prices have resulted in unrealised gains on these positions of US$202,000 resulting in the value of forward currency positions increasing to US$17,363,000 as at 31 March 2021.

INDEPENDENT REVIEW REPORT TO THE MEMBERS OF BLACKROCK FRONTIERS INVESTMENT TRUST PLC

INTRODUCTION
We have been engaged by BlackRock Frontiers Investment Trust plc (the ‘Company’) to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2021 which comprises the Statement of Comprehensive Income, the Statement of Changes in Equity, the Statement of Financial Position, the Cash Flow Statement and the related notes 1 to 17. We have read the other information contained in the half yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

DIRECTORS’ RESPONSIBILITIES
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

As disclosed in note 2, the annual financial statements of the Company are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, “Interim Financial Reporting”, as adopted by the European Union.

OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

SCOPE OF REVIEW
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 March 2021 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

ERNST & YOUNG LLP
LONDON
1 June 2021

NOTES:

1. The maintenance and integrity of the BlackRock Frontiers Investment Trust plc website is the responsibility of BlackRock; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 MARCH 2021

		Six months ended 31 March 2021 (unaudited)			Six months ended 31 March 2020 (unaudited)			Year ended 30 September 2020 (audited)
	Notes	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’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	4,876	–	4,876	4,767	–	4,767	11,523	–	11,523
Net income from contracts for difference	3	1,026	–	1,026	1,075	–	1,075	4,057	–	4,057
Other income	3	–	–	–	51	–	51	51	–	51
		--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Total income		5,902	–	5,902	5,893	–	5,893	15,631	–	15,631
		========	========	========	========	========	========	========	========	========
Net profit/(loss) on investments held at fair value through profit or loss		–	86,237	86,237	–	(108,372)	(108,372)	–	(81,399)	(81,399)
Net (loss)/profit on foreign exchange		–	(112)	(112)	–	203	203	–	(101)	(101)
Net profit/(loss) from contracts for difference		–	27,813	27,813	–	(30,588)	(30,588)	–	(6,163)	(6,163)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Total		5,902	113,938	119,840	5,893	(138,757)	(132,864)	15,631	(87,663)	(72,032)
		========	========	========	========	========	========	========	========	========
Expenses
Investment management and performance fee	4	(400)	(2,878)	(3,278)	(418)	(1,671)	(2,089)	(748)	(2,990)	(3,738)
Other operating expenses	5	(441)	(20)	(461)	(533)	(49)	(582)	(865)	(77)	(942)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Total operating expenses		(841)	(2,898)	(3,739)	(951)	(1,720)	(2,671)	(1,613)	(3,067)	(4,680)
		========	========	========	========	========	========	========	========	========
Net profit/(loss) on ordinary activities before finance costs and taxation		5,061	111,040	116,101	4,942	(140,477)	(135,535)	14,018	(90,730)	(76,712)
Finance costs	6	(1)	(4)	(5)	(4)	(16)	(20)	(4)	(15)	(19)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Net profit/(loss) on ordinary activities before taxation		5,060	111,036	116,096	4,938	(140,493)	(135,555)	14,014	(90,745)	(76,731)
		========	========	========	========	========	========	========	========	========
Taxation	7	(485)	27	(458)	(664)	160	(504)	(1,814)	602	(1,212)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Profit/(loss) for the period		4,575	111,063	115,638	4,274	(140,333)	(136,059)	12,200	(90,143)	(77,943)
		========	========	========	========	========	========	========	========	========
Earnings/(loss) per ordinary share (cents)	9	1.98	48.09	50.07	1.77	(58.16)	(56.39)	5.05	(37.32)	(32.27)
		========	========	========	========	========	========	========	========	========

The total column of this statement represents the Company’s Statement of Comprehensive Income, prepared in accordance with International Accounting Standards (IFRS) as adopted by the European Union (EU). The supplementary revenue and capital columns 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 period. All income is attributable to the equity holders of the Company.

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

STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2021

	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 six months ended 31 March 2021 (unaudited)
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 period		–	–	–	–	111,063	4,575	115,638
Transactions with owners, recorded directly to equity:
Cancellation of share premium account¹		–	(165,984)	–	165,984	–	–	–
Tender offer	10	–	–	–	(88,713)	–	–	(88,713)
Tender offer costs		–	–	–	(369)	–	–	(369)
Dividends paid²	8	–	–	–	–	–	(10,252)	(10,252)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------
At 31 March 2021		2,418	–	5,798	306,942	2,546	4,584	322,288
		========	========	========	========	========	========	========
For the six months ended 31 March 2020 (unaudited)
At 30 September 2019		2,407	164,007	5,798	230,799	(18,374)	16,183	400,820
Total comprehensive income:
Net (loss)/profit for the period		–	–	–	–	(140,333)	4,274	(136,059)
Transactions with owners, recorded directly to equity:
Share issues		11	1,987	–	–	–	–	1,998
Share issue costs		–	(10)	–	–	–	–	(10)
Dividends paid³		–	–	–	–	–	(11,472)	(11,472)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------
At 31 March 2020		2,418	165,984	5,798	230,799	(158,707)	8,985	255,277
		========	========	========	========	========	========	========
For the year ended 30 September 2020 (audited)
At 30 September 2019		2,407	164,007	5,798	230,799	(18,374)	16,183	400,820
Total comprehensive income:
Net (loss)/profit for the year		–	–	–	–	(90,143)	12,200	(77,943)
Transactions with owners, recorded directly to equity:
Ordinary shares issued		11	1,987	–	–	–	–	1,998
Ordinary shares purchased into treasury		–	–	–	(754)	–	–	(754)
Share issue costs		–	(10)	–	–	–	–	(10)
Share purchase costs		–	–	–	(5)	–	–	(5)
Dividends paid⁴		–	–	–	–	–	(18,122)	(18,122)
		--------------	--------------	--------------	--------------	--------------	--------------	--------------
At 30 September 2020		2,418	165,984	5,798	230,040	(108,517)	10,261	305,984
		========	========	========	========	========	========	========

¹ Share premium account was cancelled pursuant to Court approval on 11 March 2021 and $166.0m was transferred to a special reserve. Please refer to note 11 for further details.

² 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.

³ Final dividend of 4.75 cents per share for the year ended 30 September 2019, declared on 6 December 2019 and paid on 7 February 2020.

⁴ Final dividend of 4.75 cents per share for the year ended 30 September 2019, declared on 6 December 2019 and paid on 7 February 2020 and interim dividend paid in respect of the year ended 30 September 2020 of 2.75 cents per share, declared on 28 May 2020 and paid on 26 June 2020.

The transaction costs incurred on the acquisition of investments amounted to US$138,000 for the six months ended 31 March 2021 (six months ended 31 March 2020: US$114,000; year ended 30 September 2020: US$286,000). Costs relating to the disposal of investments amounted to US$242,000 for the six months ended 31 March 2021 (six months ended 31 March 2020: US$334,000; year ended 30 September 2020: US$500,000). All transaction costs have been included within capital reserves.

For information on the Company’s distributable reserves, please refer to note 11.

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021

	Notes	31 March 2021 (unaudited) US$’000	31 March 2020 (unaudited) US$’000	30 September 2020 (audited) US$’000
Non current assets
Investments held at fair value through profit or loss	12	321,493	253,584	305,097
Current assets
Other receivables		4,338	4,919	4,077
Derivative financial assets held at fair value through profit or loss – contracts for difference		3,430	1,504	1,664
Derivative financial assets held at fair value through profit or loss – currency hedges		202	1,047	–
Cash and cash equivalents		1,275	2,248	1,678
Cash collateral held with brokers		80	24,340	488
		--------------	--------------	--------------
Total current assets		9,325	34,058	7,907
		========	========	========
Total assets		330,818	287,642	313,004
		========	========	========
Current liabilities
Other payables		(5,088)	(18,407)	(2,378)
Derivative financial liabilities held at fair value through profit or loss – contracts for difference		(976)	(12,741)	(1,674)
Derivative financial liabilities held at fair value through profit or loss – currency hedges		–	(13)	–
Cash collateral received		(2,013)	(940)	(2,740)
Bank overdraft		(434)	(245)	(209)
		--------------	--------------	--------------
Total current liabilities		(8,511)	(32,346)	(7,001)
		========	========	========
Total assets less current liabilities		322,307	255,296	306,003
		========	========	========
Non current liabilities

Management shares of £1.00 each (one quarter paid)		(19)	(19)	(19)
		--------------	--------------	--------------
Net assets		322,288	255,277	305,984
		========	========	========
Equity attributable to equity holders
Called up share capital	10	2,418	2,418	2,418
Share premium account		–	165,984	165,984
Capital redemption reserve		5,798	5,798	5,798
Special reserve		306,942	230,799	230,040
Capital reserves		2,546	(158,707)	(108,517)
Revenue reserve		4,584	8,985	10,261
		--------------	--------------	--------------
Total equity		322,288	255,277	305,984
		========	========	========
Net asset value per ordinary share (cents)	9	170.23	105.56	126.85
		========	========	========

CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2021

	31 March 2021 (unaudited) US$’000	31 March 2020 (unaudited) US$’000	30 September 2020 (audited) US$’000
Operating activities
Net profit/(loss) on ordinary activities before taxation	116,096	(135,555)	(76,731)
Add back finance costs	5	20	19
Net (profit)/loss on investments and contracts for difference held at fair value through profit or loss (including transaction costs)	(114,685)	136,781	86,049
Net loss/(gain) on foreign exchange	112	(203)	101
Sales of investments held at fair value through profit or loss	181,441	104,580	190,673
Purchases of investments held at fair value through profit or loss	(90,022)	(88,128)	(190,331)
Sales of Cash Funds¹	99,033	99,830	185,584
Purchases of Cash Funds¹	(120,637)	(84,655)	(178,840)
Amounts paid for losses on closure of contracts for difference	(10,166)	(39,006)	(56,588)
Amounts received on gains on closure of contracts for difference	35,974	23,157	54,305
(Increase)/decrease in other receivables	(964)	245	(480)
Increase/(decrease) in other payables	582	13,161	(941)
Decrease in amounts due from brokers	703	2,596	4,163
Increase/(decrease) in amounts due to brokers	1,796	35	(1,905)
Net cash collateral pledged	(319)	(27,070)	(1,418)
Taxation paid	(450)	(504)	(1,198)
	--------------	--------------	--------------
Net cash inflow from operating activities	98,499	5,284	12,462
	========	========	========
Financing activities
Interest paid	(5)	(20)	(19)
Cash proceeds from ordinary share issues	–	1,998	1,998
Ordinary shares purchased into treasury	–	–	(754)
Ordinary share issue costs paid	–	(10)	(10)
Ordinary share purchase costs paid	–	–	(5)
Tender offer	(88,713)	–	–
Tender costs paid	(45)	–	–
Dividends paid	(10,252)	(11,472)	(18,122)
	========	========	========
Net cash outflow from financing activities	(99,015)	(9,504)	(16,912)
	========	========	========
Decrease in cash and cash equivalents	(516)	(4,220)	(4,450)
Effect of foreign exchange rate changes	(112)	203	(101)
	========	========	========
Change in cash and cash equivalents	(628)	(4,017)	(4,551)
Cash and cash equivalents at the start of the period	1,469	6,020	6,020
	--------------	--------------	--------------
Cash and cash equivalents at the end of the period	841	2,003	1,469
	========	========	========
Comprised of:
Cash at bank	1,275	2,248	1,678
Bank overdraft	(434)	(245)	(209)
	--------------	--------------	--------------
	841	2,003	1,469
	========	========	========

¹ Cash Funds represents funds held on deposit with BlackRock Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund.

NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 MARCH 2021

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.

2. BASIS OF PREPARATION
The half yearly financial statements for the period ended 31 March 2021 have been prepared in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the Financial Conduct Authority and with International Accounting Standard 34 (IAS 34), ‘Interim Financial Reporting’, as adopted by the European Union (EU). The half yearly financial statements should be read in conjunction with the Company’s Annual Report and Financial Statements for the year ended 30 September 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU).

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, is compatible with IFRS, the financial statements have been prepared in accordance with guidance set out in the SORP.

Adoption of new and amended standards and interpretations:
Amendments to IFRS 3 - Definition of a business (effective 1 January 2020). This amendment revised the definition of a business. This standard did not have any impact on the Company.

Amendments to IAS 1 and IAS 8 - Definition of material (effective 1 January 2020). The amendments to IAS 1, ‘Presentation of Financial Statements’, and IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, and consequential amendments to other IFRSs require companies to:

(i) use a consistent definition of materiality throughout IFRSs and the Conceptual Framework for Financial Reporting;

(ii) clarify the explanation of the definition of material; and

(iii) incorporate some of the guidance of IAS 1 about immaterial information.

This standard did not have any impact on the Company.

Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest rate benchmark reform (effective 1 January 2020). These amendments provide certain reliefs in connection with the interest rate benchmark reform. These reliefs relate to hedge accounting and have the effect that the Inter Bank Offer Rate (IBOR) reform should not cause hedge accounting to terminate.

This standard did not have any significant impact on the Company.

IFRS standards that have yet to be adopted:
IFRS 17 - Insurance contracts (effective 1 January 2021). 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. The standard has not been endorsed by the EU. This standard is unlikely to have any impact on the Company as it has no insurance contracts.

3. INCOME

	Six months ended 31 March 2021 (unaudited) US$’000	Six months ended 31 March 2020 (unaudited) US$’000	Year ended 30 September 2020 (audited) US$’000
Investment income:
UK dividends	167	–	59
Overseas dividends	3,519	3,469	9,541
Overseas special dividends	1,121	627	1,253
Interest from Cash Funds	69	671	809
Less provision for doubtful debts	–	–	(139)
	--------------	--------------	--------------
Total investment income	4,876	4,767	11,523
	========	========	========
Net income from contracts for difference	1,026	1,075	4,057
Deposit interest	–	51	51
	--------------	--------------	--------------
Total income	5,902	5,893	15,631
	========	========	========

Dividends and interest received in cash in the six months ended 31 March 2021 amounted to US$4,015,000 and US$76,000 (six months ended 31 March 2020: US$3,655,000 and US$651,000; year ended 30 September 2020: US$12,566,000 and US$846,000) respectively.

No special dividends have been recognised in capital for the six months ended 31 March 2021 (six months ended 31 March 2020: US$nil; year ended 30 September 2020: US$nil).

4. INVESTMENT MANAGEMENT FEE

	Six months ended 31 March 2021 (unaudited)			Six months ended 31 March 2020 (unaudited)			Year ended 30 September 2020 (audited)
	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000
Investment management fee	400	1,600	2,000	418	1,671	2,089	748	2,990	3,738
Performance fee	–	1,278	1,278	–	–	–	–	–	–
	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Total	400	2,878	3,278	418	1,671	2,089	748	2,990	3,738
	========	========	========	========	========	========	========	========	========

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 indices on a blended basis.

For the six months ended 31 March 2021, the Company’s NAV outperformed the Benchmark Index on a US Dollar basis; therefore, a performance fee of US$1,278,000 has been accrued (six months ended 31 March 2020: US$nil; year ended 30 September 2020: US$nil). Any final performance fee for the year ending 30 September 2021 will not crystallise and fall due until the calculation date of 30 September 2021.

The performance fee payable in any year is capped at an amount equal to 2.5% or 1% 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 has been paid.

5. OTHER OPERATING EXPENSES

	Six months ended 31 March 2021 (unaudited) US$’000	Six months ended 31 March 2020 (unaudited) US$’000	Year ended 30 September 2020 (audited) US$’000
Allocated to revenue:
Custody fee	101	167	274
Auditor’s remuneration:
– audit services	40	22	50
– other assurance services¹	5	5	12
Registrar’s fee	18	18	39
Directors’ emoluments	114	109	212
Broker fees	19	20	39
Depositary fees²	18	14	29
Marketing fees	56	49	116
AIC fees	11	16	28
FCA fees	9	9	19
Printing and Postage fees	28	16	47
Employer NI Contributions	12	15	22
Stock exchange listings	7	7	14
Legal and professional fees	10	7	13
Write back of prior year expenses^{3, 4}	(50)	–	(99)
Other administrative costs	43	59	50
	--------------	--------------	--------------
	441	533	865
	========	========	========
Allocated to capital:
Custody transaction charges	20	49	77
	--------------	--------------	--------------
	461	582	942
	========	========	========

¹ Fees for non audit services relate to the following services provided by the Auditor:

£3,550 (US$5,000) (six months ended 31 March 2020: £4,000 (US$5,000); year ended 30 September 2020: £9,500 (US$12,000) relating to the review of the interim financial statements.
£10,000 (US$14,000) (excluding VAT) is payable in respect of the work on the Company’s tender offer. These fees are included within tender offer costs in the Company’s Statement of Changes in Equity (six months ended 31 March 2020 and year ended 30 September 2020: £nil (US$nil)).

² All expenses other than depositary fees are paid in Sterling and are therefore subject to exchange rate fluctuations.

³ Relates to prior year accrual for directors’ expenses written back during the year ended 30 September 2020.

⁴ Relates to directors’ search fees, legal fees, directors’ expenses and AIC fees written back during the six months ended 31 March 2021.

Costs relating to implementation of the tender offer have been taken to capital and are debited to special reserves.

6. FINANCE COSTS

	Six months ended 31 March 2021 (unaudited)			Six months ended 31 March 2020 (unaudited)			Year ended 30 September 2020 (audited)
	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000
Interest payable – bank Overdraft	1	4	5	4	16	20	4	15	19
	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Total	1	4	5	4	16	20	4	15	19
	========	========	========	========	========	========	========	========	========

7. TAXATION
Analysis of charge/(credit) for the period:

	Six months ended 31 March 2021 (unaudited)			Six months ended 31 March 2020 (unaudited)			Year ended 30 September 2020 (audited)
	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000	Revenue US$’000	Capital US$’000	Total US$’000
Current tax:
Corporation tax	48	(48)	–	160	(160)	–	615	(615)	–
Overseas tax	437	–	437	504	–	504	1,199	–	1,199
Overseas tax on capital gains	–	21	21	–	–	–	–	13	13
	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------	--------------
Total taxation charge	485	(27)	458	664	(160)	504	1,814	(602)	1,212
	========	========	========	========	========	========	========	========	========

8. DIVIDENDS
The Board has declared an interim dividend of 2.75 cents per share for the period ended 31 March 2021 which will be paid on 25 June 2021 to shareholders on the register at 11 June 2021 (interim dividend for the six months ended 31 March 2020 and for the year ended 30 September 2020: 2.75 cents per share paid on 26 June 2020 to shareholders on the register at 5 June 2020). This dividend has not been accrued in the financial statements for the six months ended 31 March 2021 as, under IFRS, interim dividends are not recognised until paid. Dividends are debited directly to reserves.

9. EARNINGS AND NET ASSET VALUE PER ORDINARY SHARE
Total revenue, capital return and net asset value per ordinary share are shown below and have been calculated using the following:

	Six months ended 31 March 2021 (unaudited)	Six months ended 31 March 2020 (unaudited)	Year ended 30 September 2020 (audited)
Net revenue profit attributable to ordinary shareholders (US$’000)	4,575	4,274	12,200
Net capital profit/(loss) attributable to ordinary shareholders (US$’000)	111,063	(140,333)	(90,143)
	--------------	--------------	--------------
Total profit/(loss) attributable to ordinary shareholders (US$’000)	115,638	(136,059)	(77,943)
	========	========	========
Equity shareholders’ funds (US$'000)	322,288	255,277	305,984
	========	========	========
The weighted average number of ordinary shares in issue during the period on which the return per ordinary share was calculated was:	230,947,596	241,292,473	241,513,563
The actual number of ordinary shares in issue at the period end on which the net asset value per ordinary share was calculated was:	189,325,748	241,822,801	241,210,518
Return per ordinary share
Revenue earnings per share (cents)	1.98	1.77	5.05
Capital gain/(loss) per share (cents)	48.09	(58.16)	(37.32)
	--------------	--------------	--------------
Total gain/(loss) per share (cents)	50.07	(56.39)	(32.27)
	========	========	========

	As at 31 March 2021 (unaudited)	As at 31 March 2020 (unaudited)	As at 30 September 2020 (audited)
Net asset value per ordinary share (cents)	170.23	105.56	126.85
Ordinary share price (cents)¹	172.46	103.17	120.62
Net asset value per ordinary share (pence)	123.38	85.13	98.12
Ordinary share price (pence)	125.00	83.20	93.30
	========	========	========

¹ The Company’s share price is quoted in Sterling and the above represents the US Dollar equivalent, based on an exchange rate of US$1.3797 to £1 at 31 March 2021, US$1.2400 to £1 at 31 March 2020 and US$1.2928 to £1 at 30 September 2020.

10. 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 2020	241,210,518	612,283	241,822,801	2,418
Shares bought back into treasury pursuant to tender offer*	(51,884,770)	51,884,770	–	–
	-----------------	----------------	--------------	--------------
At 31 March 2021	189,325,748	52,497,053	241,822,801	2,418
	==========	========	========	========

The Company also has in issue 50,000 management shares which carry the right to a fixed cumulative preferred dividend. Additional information is given in note 15 to the Annual Report and Financial Statements for the year ended 30 September 2020.

During the six months ended 31 March 2021, the Company did not issue any ordinary shares (six months ended 31 March 2020 and year ended 30 September 2020: 1,150,000) for a total gross consideration of US$nil (six months ended 31 March 2020 and year ended 30 September 2020: US$1,998,000). Additionally, during the period there was a tender offer and 51,884,770 (six months ended 31 March 2020 and year ended 30 September 2020: nil) shares were transferred into treasury for a total consideration of US$89,082,000 (six months ended 31 March 2020 and year ended 30 September 2020: US$nil). Since 31 March 2021 and up to the date of this report, no ordinary shares have been issued or bought back.

* A total of 51,884,770 Ordinary Shares of 1 cent each, representing 21.51 per cent of the Ordinary Shares in issue (excluding Ordinary Shares held in treasury), were validly tendered under the Tender Offer. After the close of business on 23 February 2021, the Company’s assets and liabilities were allocated into a continuing pool and a tender pool as outlined in the Circular. Following realisation of all of the assets contained in the tender pool and settlement of all liabilities to be borne by the tender pool, the Company completed the repurchase of all Ordinary Shares tendered on 31 March 2021 in accordance with the Tender Offer. All of the 51,884,770 Ordinary Shares tendered have been transferred into and are being held in treasury until further notice. Further information in relation to the Tender Offer can be found in the Chairman’s Statement.

11. RESERVES
The share premium and capital redemption reserve are not distributable profits 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 reserve may be used as distributable profits 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, net capital returns may be distributed by way of dividend. The US$2,546,000 of capital reserve is made up of a loss on capital reserve arising on investments sold of (US$17,128,000) and a gain on capital reserve arising on revaluation of investments held of US$19,674,000. The capital reserve arising on the revaluation of investments of US$19,674,000 is subject to fair value movements and may not be readily realisable at short notice, as such it may not be entirely distributable.

The Company’s share premium account was cancelled 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. This action was taken, in part, to ensure that the Company had sufficient distributable reserves in the event that the distributable reserves proved insufficient to effect the tender.

12. VALUATION OF FINANCIAL INSTRUMENTS
Market risk arising from price risk
The outbreak of COVID-19 has developed into a global pandemic and has resulted in travel restrictions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, prolonged quarantines, cancellations, supply chain disruptions, and lower consumer demand, as well as general concern and uncertainty. The impact of COVID-19 has adversely affected the economies of many nations across the entire global economy, individual issuers and capital markets, and could continue to extents that cannot necessarily be foreseen. In addition, the impact of infectious illnesses in emerging market countries may be greater due to generally less established healthcare systems. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty.

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(h) as set out on page 91 of the Company’s Annual Report and Financial Statements for the year ended 30 September 2020.

Categorisation within the hierarchy has been determined on the basis of the lowest level 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 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 period 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 period 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.

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 have 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 to which these contracts expose the Company.

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

Financial assets/(liabilities) at fair value through profit or loss at 31 March 2021 (unaudited)	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	235,436	–	–	235,436
Cash Fund	86,057	–	–	86,057
Derivative financial instruments - Contracts for difference (fair value)	–	3,430	–	3,430
Derivative financial instruments - Currency hedges (fair value)	–	202	–	202
Liabilities:
Derivative financial instruments - Contracts for difference (fair value)	–	(976)	–	(976)
	--------------	--------------	--------------	--------------
	321,493	2,656	–	324,149
	========	========	========	========

Financial assets/(liabilities) at fair value through profit or loss at 31 March 2020 (unaudited)	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	197,573	–	–	197,573
Cash Fund	56,011	–	–	56,011
Derivative financial instruments - Contracts for difference (fair value)	–	1,501	3	1,504
Derivative financial instruments - Currency hedges (fair value)	–	1,047	–	1,047
Liabilities:
Derivative financial instruments - Contracts for difference (fair value)	–	(12,741)	–	(12,741)
Derivative financial instruments - Currency hedges (fair value)	–	(13)	–	(13)
	--------------	--------------	--------------	--------------
	253,584	(10,206)	3	243,381
	========	========	========	========

Financial assets/(liabilities) at fair value through profit or loss at 30 September 2020 (audited)	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	240,632	–	–	240,632
Cash Fund	64,465	–	–	64,465
Derivative financial instruments - Contracts for difference (fair value)	–	1,661	3	1,664
Liabilities:
Derivative financial instruments - Contracts for difference (fair value)	–	(1,674)	–	(1,674)
	--------------	--------------	--------------	--------------
	305,097	(13)	3	305,087
	========	========	========	========

There were no transfers between levels of financial assets and financial liabilities during the period recorded at fair value as at 31 March 2021, 31 March 2020 or the year ended 30 September 2020. The Company held one Level 3 security during the period ended 31 March 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	31 March 2021 (unaudited) US$’000	31 March 2020 (unaudited) US$’000	30 September 2020 (audited) US$’000
Opening fair value	3	3	3
Disposal of Contract for difference (fair value)¹	(3)	–	–
	--------------	--------------	--------------
Closing balance	–	3	3
	========	========	========

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

13. RELATED PARTY DISCLOSURE
Directors’ emoluments
The Board consists of four non-executive Directors, all of whom are considered to be independent of the Manager. None of the Directors has a service contract with the Company. With effect from 1 October 2019, the Chairman receives an annual fee of £38,000, the Chairman of the Audit and Management Engagement Committee receives an annual fee of £32,000 and each of the other Directors receives an annual fee of £28,000.

As at 31 March 2021, an amount of US$14,000 (£10,500) was outstanding in respect of Directors’ fees (31 March 2020: US$16,000 (£13,000); 30 September 2020: US$17,000 (£13,000)).

At the period end, members of the Board, including any connected persons, held ordinary shares in the Company as set out below:

	Ordinary shares
Audley Twiston-Davies (Chairman)	128,935
Katrina Hart	39,789
Stephen White	30,000
Sarmad Zok	–
	========

14. 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 this investment management contract are disclosed on pages 52 and 53 of the Directors’ Report in the Company’s Annual Report and Financial Statements for the year ended 30 September 2020.

The investment management fee due for the six months ended 31 March 2021 amounted to US$2,000,000 (six months ended 31 March 2020: US$2,089,000; year ended 30 September 2020: US$3,738,000). In addition, a performance fee is payable of US$1,278,000 for the six months ended 31 March 2021 (six months ended 31 March 2020: US$nil; year ended 30 September 2020: US$nil).

At the period end, US$1,016,000 was outstanding in respect of management fees (31 March 2020: US$1,062,000; 30 September 2020: US$1,740,000). Any final performance fee for the year ending 30 September 2021 will not crystallise and fall due until the calculation date of 30 September 2021.

In addition to the above services, BlackRock has provided the Company with marketing services. The total fees paid or payable for these services to 31 March 2021 amounted to US$56,000 excluding VAT (six months ended 31 March 2020: US$49,000; year ended 30 September 2020: US$116,000). Marketing fees of US$127,000 excluding VAT (31 March 2020: US$105,000; 30 September 2020: US$71,000) were outstanding as at 31 March 2021.

The Company has an investment in the BlackRock Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund of US$86,057,000 as at 31 March 2021 which is a fund managed by a company within the BlackRock Group (31 March 2020: US$56,011,000; 30 September 2020: US$64,465,000).

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

15. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 March 2021 (six months ended 31 March 2020: nil; year ended 30 September 2020: nil).

16. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information contained in this half yearly report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended 31 March 2021 and 31 March 2020 has not been audited.

The information for the year ended 30 September 2020 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies, unless otherwise stated. The report of the auditors on those accounts contained no qualifications or statement under Sections 498(2) or 498 (3) of the Companies Act 2006.

17. ANNUAL RESULTS
The Board expects to announce the annual results for the year ending 30 September 2021 in early December 2021.

Copies of the annual results announcement can be obtained from the Secretary on 020 7743 3000 or at cosec@blackrock.com. The Annual Report should be available by late December 2021 with the Annual General Meeting being held in February 2022.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Simon White, Managing Director, Investment Trusts, BlackRock Investment Management (UK) Limited - Tel: 020 7743 3000

Press enquiries:
Lansons Communications – Tel: 020 7294 3689
E-mail: BlackRockInvestmentTrusts@lansons.com

1 June 2021

12 Throgmorton Avenue
London EC2N 2DL
END

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