Half-year Report

BlackRock Frontiers Investment Trust plc
(LEI: 5493003K5E043LHLO706)

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 MARCH 2023

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 2023	As at 30 September 2022
US Dollar
Net assets (US$’000)¹	338,161	302,656
Net asset value per ordinary share (cents)	178.61	159.86
Ordinary share price (mid market)² (cents)	166.30	142.61
	----------------	----------------
British Pound Sterling
Net assets (£’000)^1,2	273,493	271,124
Net asset value per ordinary share² (pence)	144.45	143.21
Ordinary share price (mid market) (pence)	134.50	127.75
Discount³	6.9%	10.8%
	==========	==========

Performance	For the six months ended 31 March 2023 %	For the year ended 30 September 2022 %	Since inception⁴ %
US Dollar
Net asset value per share (with dividends reinvested)³	+14.5	-10.9	+83.0
Benchmark Index (NR)^5,6	+4.5	-7.3	+41.4
MSCI Frontier Markets Index (NR)⁶	+2.2	-25.2	+27.5
MSCI Emerging Markets Index (NR)⁶	+14.0	-28.1	+19.8
Ordinary share price (with dividends reinvested)³	+19.8	-10.0	+68.5
	----------------	----------------	----------------
British Pound Sterling
Net asset value per share (with dividends reinvested)³	+3.3	+7.7	+129.9
Benchmark Index (NR)^5,6	-5.7	+12.0	+76.9
MSCI Frontier Markets Index (NR)⁶	-7.7	-9.6	+60.7
MSCI Emerging Markets Index (NR)⁶	+3.0	-13.2	+51.1
Ordinary share price (with dividends reinvested)³	+8.0	+8.7	+111.4
	==========	==========	==========

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

² Based on an exchange rate of US$1.2365 to £1 at 31 March 2023 and US$1.1163 to £1 at 30 September 2022.

³ Alternative Performance Measure, see Glossary in the half yearly report and financial statements.

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

Dear shareholder,
I am pleased to present the Company’s Half Yearly Financial Report for the six months to 31 March 2023.

Period highlights

· NAV total return of +14.5%, well ahead of the benchmark return of +4.5% (in US Dollar terms with dividends reinvested);

· Share price total return of +19.8% (in US Dollar terms with dividends reinvested);

· Share price total return of +8.0% (in British Pound Sterling terms with dividends reinvested);

· Declared interim dividend of 3.10 cents per share; and

· Yield of 4.3% (based on share price at 1 June 2023, interim dividend for 2023 and final dividend for 2022).

Performance and overview
Our portfolio managers’ strategy and investment process has seen the Company perform strongly during the period, outperforming our benchmark. Their ability to identify and expose the portfolio to different and diverse themes is, we believe, our competitive advantage.

During the six months to 31 March 2023, the Company achieved a NAV total return in US Dollars of +14.5%, outperforming its Benchmark Index which returned +4.5%. The Company’s share price total return was +19.8%. To provide further context, the MSCI Frontier Markets Index returned +2.2% and the MSCI Emerging Markets Index returned +14.0%.

As you will read in the Investment Manager’s Report which follows, global markets have been dominated by fears of a US-led recession, uncertainty over the trajectory of interest rates and speculation over when the Federal Reserve (Fed) will reverse its monetary policy tightening cycle; which many believe will be the catalyst for a return of confidence.

However, there are tailwinds for frontier markets, in particular a weakening US Dollar and the re-opening of China, both of which have been beneficial of late for many of the markets that we invest in. Our portfolio managers also note the relatively benign fiscal position and accommodative monetary policy applied by many of the governments of the countries in which we invest. This is in stark contrast to the current position in developed markets. This lack of correlation with developed market economies has always been and remains one of the Company’s key attractions for investors seeking portfolio diversification.

Your portfolio managers provide a detailed description of the key contributors to and detractors from performance during the period, portfolio activity and their views on the outlook for the second half of the financial year in their report which follows.

Revenue return and dividends
The Company’s revenue return per share for the six months ended 31 March 2023 amounted to 2.74 cents (six months ended 31 March 2022: 2.31 cents). Further, as at 31 May 2023 the Company had accrued a total of 5.95 cents in revenue return per share for the period from 1 October 2022 to 31 May 2023. Accordingly, the Board is pleased to declare an interim dividend of 3.10 cents per share (2022: 2.75 cents per share). This interim dividend is payable on 7 July 2023 to shareholders on the Company’s register on 16 June 2023. The shares will go ex-dividend on 15 June 2023. During the period the final dividend of 4.25 cents per share for the year ended 30 September 2022, which was declared on 7 December 2022, was paid to shareholders on 14 February 2023.

This higher interim dividend than usual is reflective of an increase in the amount of revenue generated, which our portfolio managers’ believe is sustainable given that it is broadly representative of the underlying earnings growth in the companies held within our portfolio. There can of course be no guarantee of the level of future revenue derived from our portfolio and I should be clear that this should not be considered to be a dividend forecast.

Portfolio management team
As announced on 24 February 2023, Sudaif Niaz was appointed alongside Sam Vecht and Emily Fletcher as a named portfolio manager of the Company. Sudaif joined BlackRock in 2015 and is a portfolio manager and research analyst in the Global Emerging Markets Equities Team. Sudaif is also a member of the EMEA and Frontier Markets research team, where he covers South East Asia and parts of the Middle East. He has worked closely with Sam and Emily for many years providing support in managing the Company’s portfolio and his addition as a named manager reflects his significant contribution. There are no changes anticipated in the way the portfolio is managed on a day-to-day basis as a result of this change.

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 longer term. The Company utilised its ability to gear the portfolio through its CFD exposure during the year. As at 31 March 2023, net gearing stood at 2.4%.

Board composition
On 1 February 2023 the Board announced that, as part of its ongoing succession plans, and having each served for a tenure of in excess of 12 years, Mr Zok and I would step down from the Board prior to next year’s AGM to be held in February 2024. The Board has undertaken a process to identify my successor as Chairman and to identify a replacement for Mr Zok whose in-depth knowledge and on the ground insights into the culture, customs and business practices in the Middle East have been invaluable.

I am pleased to announce that it has been agreed that Katrina Hart, our current Senior Independent Director, will succeed me as Chairman upon my retirement from the Board at the AGM in 2024. Katrina possesses a great deal of investment trust specific expertise and asset management experience, having spent her executive career in investment banking and equities research. It has also been agreed that Elisabeth Airey, also a serving Director, will succeed Katrina as our Senior Independent Director. Further information on their respective backgrounds and experience can be found in the half yearly report and financial statements.

Share capital
For the period under review, the Company’s ordinary shares traded at an average discount to NAV of 8.3%, but had narrowed to 6.9% on a cum-income basis at 31 March 2023. By comparison, the weighted average discount of the AIC Global Emerging Markets peer group during the period under review was 10.8%.

As at 1 June 2023, the discount stood at 8.6% (compared to an average discount for the peer group of 9.6%). 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, in conjunction with the Company’s broker, monitor the level of discount closely 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 they believe it is in shareholders’ interests to do so. In determining whether to proceed, Directors review a range of factors, including the ongoing attractiveness of the investment offering, the prevailing market conditions and the discount level in absolute terms and relative to that of the peer group companies.

The Board continues to monitor the market in our shares and, in conjunction with the Company’s broker, gives consideration to the possibility of buying back shares.

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 will seek a renewal of these authorities from shareholders at the AGM.

No new shares were issued or sold from treasury during the period or up to the date of this report.

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 BlackRock Trust Matters newsletter which includes information on the Company as well as news, views and insights.

Outlook
Our portfolio managers believe our Company is well placed to continue to generate good performance as we move through the second half of our financial year. Since the period end and up to 1 June 2023, the net asset value per share of the Company has increased by 3.7% from 178.61 cents per share to 185.23 cents per share. The Company’s Benchmark Index has decreased by 0.2%.

Our portfolio is exposed to a range of fast-growing countries with significant natural resources, such as Chile and Indonesia. Our holdings in South East Asia are also benefiting as Western countries seek to recalibrate their supply chains away from China in response to rising geo-political tensions. In Europe, the portfolio managers have selectively added to Greece and Hungary to take advantage of attractive investment opportunities. They have also initiated a position in Argentina, a region that has at times delivered strong returns for the Company.

Success in these markets requires extensive resources, painstaking research and local knowledge. Our portfolio managers’ unwavering commitment to meeting the management teams of the companies we invest in, wherever they may be in the world, is invaluable and sets us apart.

As we move through the second half of the financial year the Board shares our portfolio managers’ excitement around the breadth of opportunities offered by the Frontier Markets in what is a dynamic and ever-changing investment universe.

AUDLEY TWISTON-DAVIES
Chairman
5 June 2023

INVESTMENT MANAGER’S REPORT

Market Review
In many ways, the six months to end March 2023 have been less eventful for our universe than the first nine months of 2022, despite us operating in a markedly different world. US interest rates are at 16 year highs, the world appears more divided along geopolitical lines, and although inflation appears to be retreating somewhat, it remains front of mind for investors alongside the looming possibility of a US-led global recession. Against this backdrop, the Company has delivered a strong result, with the net asset value (NAV) increasing by 14.5% in US Dollar terms and by 3.3% in British Pound Sterling terms over the six month period (all percentages with dividends reinvested).

Much of 2022 was dominated by concerns about a crippling European energy crisis. A warmer than usual winter, coupled with a quick ramp up of storage efforts, and sizeable increases in liquefied natural gas imports, have helped avert a full-scale crisis. Gas prices have in fact experienced an 86% decline from the record highs we saw in August last year and gas reserves are now at a comfortable level. Over the six month period, this has benefited countries in Eastern Europe, in particular Greece (+49%), Poland (+47%) and Hungary (+40%).

The other notable global event was the quicker than anticipated reopening of the Chinese economy post-COVID-19. This development supported several countries in our investment universe, particularly in South East Asia as tourism numbers started to recover, notably in Thailand.

Geopolitical tensions remain front of mind for investors. While we saw an easing of China/Taiwan tensions following the meeting between US President Biden and Chinese Communist Party General Secretary Xi Jinping at the G-20 in November last year, the relationship between the two countries soured again in 2023 after the US decision to inhibit sales of advanced technology to China. These geopolitical tensions have accelerated a duplication of supply chains which continues to benefit countries in our investment universe such as Vietnam and Malaysia.

From the Road
One of the highlights of the last six months was the acceleration of travel to our investment universe to conduct on-the-ground due diligence. The team visited more than 15 countries over the period. In Europe, some of the countries we visited were Georgia, Greece and Hungary. We also travelled to countries such as Kuwait, Qatar and Saudi Arabia in the Middle East. Among the many countries we visited in Asia, examples are Indonesia, Malaysia and Vietnam. Our travels also took us to several destinations in Latin America, including Argentina, Chile and Uruguay. We met with representatives from companies, governments and civil society to stress test our investment views.

Our visit confirmed Greece as one of the bright spots in our investment universe. Digitalisation there should continue to drive better than expected government revenue collection and thus investments on top of very significant inflows from the European Union under the Recovery and Resilience Facility program. The country has seen a significant increase in exports to Gross Domestic Product (GDP) from 20% in 2006 to nearly 50% in 2023, and we continue to see attractive opportunities in the country. In Indonesia, we expect the domestic consumption environment and current account to see sustained improvements. The country has the biggest stock of nickel in the world, a crucial input in the electric vehicle (EV) battery supply chain, and we see the country’s transformation from a primarily upstream extractive economy into a more value additive one as positive for the economy overall.

In contrast, our trip to Vietnam highlighted near-term concerns from the developments in the real estate sector. While we expect the country to benefit from the relocation of supply chains from China and an uptick in tourism, we have adopted a more cautious stance following our recent trip as we try to side-step the fallout from the problems in the real estate sector. Our position in Vietnam is somewhat separated from these concerns.

Portfolio Review
In the six months to 31 March 2023, the Company’s NAV returned 14.5% (on a US Dollar basis with dividends reinvested) significantly outperforming its Benchmark Index (the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets + MSCI Saudi Arabia Index) which returned 4.5%. Over the same period the MSCI Emerging Markets Index rose by 14.0% and MSCI Frontier Markets Index rose by 2.2%. Since inception, the Company’s NAV has returned 83.0%, compared with 41.4% for its Benchmark Index. For reference, the MSCI Frontier Markets Index and the MSCI Emerging Markets Index returned 27.5% and 19.8% respectively (all percentages in US Dollar terms with dividends reinvested).

Our allocation to Hungary did very well, with low-cost airline Wizz Air Holdings (+108%) being the single biggest contributor over the period. The company has benefitted from a rebound in travel demand in a post-COVID-19 environment while managing to maintain cost discipline, hence preserving margins. Our overweight allocation to Hungarian bank OTP Bank (+55%) was another significant contributor where a high interest rate environment bolstered net interest income. National Bank of Greece (+64%) and Polish bank PKO Bank Polski (+50%) benefitted from similar fundamentals. The majority of the banks we own are national champions and are less susceptible to the much talked about asset-liability mismatches in the regional US banks. Given their dominant domestic positioning, our bank holdings should benefit from a deposit flight to safety.

Elsewhere, our exposure to Argentina through Vista Oil & Gas (Vista) (+61%) also performed strongly. Vista owns assets in the famous Vaca Muerta shale formation in Argentina. The company benefitted from higher hydrocarbon prices and an increase in export volumes. Our Kazakh exposure also did well, primarily through our holding in fintech super-app JSC Kaspi (+33%). Our positioning in the country is driven by bottom-up fundamentals. Another notable contributor to the performance of the Company over this period was our overall underweight allocation to Saudi Arabia. Significantly higher risk-free rates and lower energy prices weighed on the Saudi market overall.

While we had no exposure to Turkey (+48%), it is worth highlighting that it was the second best performing market in our universe over this period. The Turkish elections concluded on 28 May 2023, where current president Recep Tayyip Erdogan was re-elected for a historic third term. We continue to have no exposure to the country.

From a stock specific perspective, the biggest detractor over the period was Saudi National Bank (-33%). The company was the largest shareholder in Credit Suisse. While the investment in Credit Suisse relative to the scale of Saudi National Bank was immaterial, the market questioned the bank’s capital allocation framework. It was little surprise when the bank saw its chairman resign after the collapse of the Swiss bank. Elsewhere in the Kingdom, Saudi Telecom also detracted (-9%). Our allocation to Qatar Gas Transport Company (-12%) was also a detractor but has since recovered. In Vietnam, Vietnam Technological & Commercial (Techcombank) (-20%) negatively impacted returns and post our trip we have taken a more cautious view on the country given tightening liquidity conditions and the concerns around the viability of some parts of the property sector.

In terms of positioning, we added to Indonesia as we like the macro setup in the country. We increased our exposure to companies such as auto conglomerate Astra International on the back of a supportive outlook for automotive sales. We also initiated a position in food manufacturing company Indofoods as well as in commercial bank, Bank Central Asia. Hungary is another market where we have conviction and we added to OTP Bank and Wizz Air Holdings. We exited Genting Malaysia, a Malaysian hotel and resort operator, where despite an uptick in tourist numbers, the company has disappointed on the cost side.

Outlook
We still believe global markets are in the process of adjusting to a world of higher inflation and higher interest rates. The banking sector fragility we saw over the course of March is one indicator that this level of interest rates is starting to bite. Equally, we believe we are near a peak in the US Dollar and that provides a favourable setup for frontier markets that posit supportive economic fundamentals and policy making.

We retain an overweight exposure in Indonesia and Chile as both fit our macro-economic framework. In particular, the Indonesian economy is positioned to sustain high single digits nominal GDP growth given policy-making remains favourable to attract foreign direct investment and continue to grow its exports base. We have an optimistic view on Indonesia’s ability to grow its value-added nickel exports that the global EV battery supply chain will increasingly rely on. Indonesia holds one of the largest nickel reserves in the world and is quickly developing these into higher density battery grade nickel for NCM batteries. This will support Indonesian balance of payments and allow for more sustainable economic growth given Indonesia remains under invested in most sectors by relative emerging market standards. Our favourable view on Chile is predicated on the country implementing an orthodox monetary and fiscal policy which has enabled inflation to roll over and we believe there is value in stocks there as the interest rate cycle normalises.

GEOPOLITICAL FACTORS

From a geopolitical standpoint, the world looks increasingly split into three blocks: the ‘Western’ block such as Europe, US, South Korea, Japan, Australasia, the ‘Eastern’ block such as China, Russia, North Korea, and some Chinese aligned African nations, and then the ‘Neutrals’ such as India, Brazil, Saudi Arabia and much of the rest of South America and the Middle East. Most of the countries within our Frontier Markets universe are considered ‘neutrals’, and should benefit as the global geopolitical alliances recalibrate.

It is clear to us that these geopolitical concerns have already prompted a supply chain recalibration away from China and countries such as Vietnam and Malaysia will continue to see the benefit of re-shoring of supply chains.

Finally, we observe a marked contrast in the monetary and fiscal policy decisions taken in the small emerging and frontier markets versus developed markets in the post-pandemic years, and we find significant value in currencies and equity markets across our investment opportunity set. We are optimistic over the long-term in our under-frontiers investment universe which should enable compelling investment opportunities.

Sam Vecht, Emily Fletcher and Sudaif Niaz
BlackRock Investment Management (UK) Limited

5 June 2023

Ten largest investments¹ as at 31 March 2023

1 + Bank Central Asia (2022: n/a)
Financials (Indonesia)
Portfolio value: $16,905,000
Percentage of net assets: 5.0% (2022: nil%)

Bank Central Asia is an Indonesian commercial bank headquartered in Jakarta. It is the largest private bank in the country, offering commercial banking and other financial services.

2 + Abdullah Al Othaim Markets² (2022: 5th)
Consumer Staples (Saudi Arabia)
Portfolio value: $12,099,000
Percentage of net assets: 3.6% (2022: 3.2%)

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.

3 + Astra International (2022: 12th)
Consumer Discretionary (Indonesia)
Portfolio value: $11,845,000
Percentage of net assets: 3.5% (2022: 2.6%)

Astra International is an Indonesian auto conglomerate and the largest independent automotive group in South East Asia.

4 + Saudi Basic Industries Corporation² (2022: n/a)
Materials (Saudi Arabia)
Portfolio value: $11,054,000
Percentage of net assets: 3.3% (2022: nil%)

Saudi Basic Industries Corporation (SABIC), headquartered in Riyadh, is a steel and chemicals manufacturer. The company is a subsidiary of Saudi Arabian Oil Co, and engages in the production of petrochemicals, chemicals, industrial polymers, fertilizers and metals.

5 + PKO Bank Polski (2022: 7th)
Financials (Poland)
Portfolio value: $10,651,000
Percentage of net assets: 3.1% (2022: 3.1%)

PKO Bank Polski is Poland’s largest bank founded in 1919. It is primarily focused on retail banking, operating over 1100 branches in Poland and abroad.

6 + Bank Mandiri (2022: 23rd)
Financials (Indonesia)
Portfolio value: $10,064,000
Percentage of net assets: 3.0% (2022: 2.0%)

Bank Mandiri is one of the largest banks in Indonesia. The bank offers a range of banking products and services from corporate to retail banking.

7 - JSC Kaspi (2022: 4th)
Financials (Kazakhstan)
Portfolio value: $9,870,000
Percentage of net assets: 2.9% (2022: 3.4%)

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

8 + Wizz Air Holdings (2022: 46th)
Industrials (Hungary)
Portfolio value: $9,838,000
Percentage of net assets: 2.9% (2022: 1.2%)

Wizz Air Holdings, legally incorporated as Wizz Air Hungary Ltd, is a Hungarian ultra-low-cost carrier with its head office in Budapest, Hungary. The airline serves many cities across Europe, as well as some destinations in North Africa, the Middle East and South Asia.

9 + OTP Bank (2022: 42nd)
Financials (Hungary)
Portfolio value: $9,770,000
Percentage of net assets: 2.9% (2022: 1.3%)

OTP Bank, headquartered in Budapest, Hungary, is one of the leading banking groups in Central and Eastern Europe. The bank has operations in 11 countries across the region and serves nearly 16 million customers.

10 + FPT² (2022: 11th)
Information Technology (Vietnam)
Portfolio value: $9,638,000
Percentage of net assets: 2.9% (2022: 2.6%)

FPT is Vietnam's largest information technology services company, with a focus on information and communications technologies. The core business focuses on consulting, providing and deploying technology and telecommunications services and solutions.

¹ Gross market exposure as a % of net assets.

² Exposure gained via long contracts for difference (CFDs) only.

The Company's ten largest investments represented 33.1% of the Company's portfolio as at 31 March 2023 (30 September 2022: 35.2%).

Percentages in brackets represent the portfolio holding at 30 September 2022.

Symbols indicate the change in the relative ranking of the position in the portfolio compared to its ranking as at 30 September 2022.

Portfolio analysis as at 31 March 2023

Country allocation: Absolute weights (Gross market exposure as a % of net assets)¹

	%
Saudi Arabia	17.8
Indonesia	17.2
Thailand	8.8
Vietnam	8.6
United Arab Emirates	8.0
Kazakhstan	7.8
Hungary	7.3
Chile	6.0
Greece	4.3
Poland	3.1
Argentina	2.7
Qatar	2.4
Egypt	2.4
Panama	2.0
Philippines	2.0
Peru	1.7
Georgia	1.6
Malaysia	1.6
Colombia	1.5
Kuwait	1.3
Romania	1.0
Kenya	0.7
Ukraine	0.4

Country allocation relative to the Benchmark Index (%)¹

	%
Kazakhstan	7.2
Vietnam	6.9
Hungary	6.2
Indonesia	6.2
Chile	2.8
Argentina	2.7
Greece	2.1
Panama	2.0
Egypt	1.9
Georgia	1.6
Colombia	1.0
United Arab Emirates	0.9
Romania	0.5
Kenya	0.4
Ukraine	0.4
Peru	0.1
Lithuania	-0.1
Tunisia	-0.1
Estonia	-0.1
Croatia	-0.1
Bahrain	-0.1
Jordan	-0.1
Mauritius	-0.1
Oman	-0.3
Bangladesh	-0.3
Slovenia	-0.3
Nigeria	-0.4
Morocco	-0.6
Other	-0.8
Poland	-0.9
Czech Republic	-1.0
Philippines	-2.1
Qatar	-2.8
Turkey	-3.5
Thailand	-3.6
Kuwait	-3.7
Saudi Arabia	-4.9
Malaysia	-6.8

Sector allocation: Absolute weights (Gross market exposure as a % of net assets)¹

	%
Financials	36.6
Materials	15.8
Energy	14.1
Industrials	10.9
Consumer Staples	10.7
Consumer Discretionary	6.3
Information Technology	5.7
Communication Services	3.8
Real Estate	2.6
Utilities	2.0
Health Care	1.7

Sector allocation relative to the Benchmark Index (%)¹

	%
Energy	6.9
Industrials	4.9
Consumer Staples	4.3
Information Technology	4.2
Materials	4.2
Consumer Discretionary	2.0
Real Estate	-1.3
Health Care	-1.7
Utilities	-2.7
Communication Services	-5.3
Financials	-5.3

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

Sources: BlackRock and Datastream.

Investments as at 31 March 2023

Equity portfolio by country of exposure

Company	Principal country of operation	Sector	Fair value¹ US$’000	Gross market exposure as a % of net assets³
Bank Central Asia	Indonesia	Financials	16,905	5.0
Astra International	Indonesia	Consumer Discretionary	11,845	3.5
Bank Mandiri	Indonesia	Financials	10,064	3.0
Indocement Tunggal Prakarsa	Indonesia	Materials	7,569	2.3
Mitra Adiperkasa	Indonesia	Consumer Discretionary	6,570	1.9
Indofood CBP Sukses Makmur	Indonesia	Consumer Staples	5,047	1.5
			----------------	----------------
			58,000	17.2
			==========	==========
JSC Kaspi	Kazakhstan	Financials	9,870	2.9
Halyk Savings Bank	Kazakhstan	Financials	8,446	2.5
Kazatomprom	Kazakhstan	Energy	7,985	2.4
			----------------	----------------
			26,301	7.8
			==========	==========
Advanced Info Service	Thailand	Communication Services	8,483	2.5
Bangkok Bank	Thailand	Financials	6,706	2.0
Bangkok Dusit Medical Services	Thailand	Health Care	5,651	1.7
Airports of Thailand	Thailand	Industrials	5,006	1.5
			----------------	----------------
			25,846	7.7
			==========	==========
OTP Bank	Hungary	Financials	9,770	2.9
Wizz Air Holdings	Hungary	Industrials	8,735	2.6
MOL Group	Hungary	Energy	4,995	1.5
			----------------	----------------
			23,500	7.0
			==========	==========
Cervecerias Unidas	Chile	Consumer Staples	8,744	2.6
Banco Santander Chile	Chile	Financials	6,309	1.9
Empresas CMPC	Chile	Materials	5,184	1.5
			----------------	----------------
			20,237	6.0
			==========	==========
Emaar Properties	United Arab Emirates	Real Estate	8,701	2.6
Air Arabia	United Arab Emirates	Industrials	6,224	1.8
			----------------	----------------
			14,925	4.4
			==========	==========
National Bank of Greece	Greece	Financials	7,682	2.3
Titan Cement International	Greece	Materials	3,916	1.2
			----------------	----------------
			11,598	3.5
			==========	==========
PKO Bank Polski	Poland	Financials	10,651	3.1
			----------------	----------------
			10,651	3.1
			==========	==========
Vista Oil & Gas	Argentina	Energy	9,265	2.7
			----------------	----------------
			9,265	2.7
			==========	==========
Qatar Gas Transport Company	Qatar	Energy	8,167	2.4
			----------------	----------------
			8,167	2.4
			==========	==========
LT Group	Philippines	Industrials	3,800	1.1
Jollibee Foods	Philippines	Consumer Discretionary	3,108	0.9
			----------------	----------------
			6,908	2.0
			==========	==========
Copa Airlines	Panama	Industrials	6,868	2.0
			----------------	----------------
			6,868	2.0
			==========	==========
Credicorp	Peru	Financials	5,890	1.7
			----------------	----------------
			5,890	1.7
			==========	==========
Frontken Corp	Malaysia	Industrials	5,454	1.6
			----------------	----------------
			5,454	1.6
			==========	==========
Bank Of Georgia	Georgia	Financials	5,447	1.6
			----------------	----------------
			5,447	1.6
			==========	==========
Ecopetrol	Colombia	Energy	4,954	1.5
			----------------	----------------
			4,954	1.5
			==========	==========
Eastern Company	Egypt	Consumer Staples	4,759	1.4
			----------------	----------------
			4,759	1.4
			==========	==========
Mobile Telecommunications	Kuwait	Communication Services	4,341	1.3
			----------------	----------------
			4,341	1.3
			==========	==========
BRD–Groupe Société Générale	Romania	Financials	3,444	1.0
			----------------	----------------
			3,444	1.0
			==========	==========
Equity Group	Kenya	Financials	2,411	0.7
			----------------	----------------
			2,411	0.7
			==========	==========
Ferrexpo	Ukraine	Materials	909	0.3
			----------------	----------------
			909	0.3
			==========	==========
Equity investments			259,875	76.9
			==========	==========
BlackRock’s Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund (Cash Fund)			75,824	22.4
			----------------	----------------
Total investments (including Cash Fund)			335,699	99.3
			==========	==========

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
Abdullah Al Othaim Markets	Saudi Arabia	Consumer Staples		12,099	3.6
Saudi Basic Industries Corporation	Saudi Arabia	Materials		11,054	3.3
Elm Company	Saudi Arabia	Information Technology		9,622	2.8
Yanbu National Petrochemical	Saudi Arabia	Materials		8,216	2.4
Arabian Drilling	Saudi Arabia	Energy		6,362	1.9
Saudi British Bank	Saudi Arabia	Financials		3,254	1.0
				----------------	----------------
				50,607	15.0
				==========	==========
FPT	Vietnam	Information Technology		9,638	2.9
Vietnam Technological & Commercial	Vietnam	Financials		8,225	2.4
Petrovietnam Drilling & Well Services	Vietnam	Energy		5,772	1.7
Vietnam Dairy Products	Vietnam	Consumer Staples		5,564	1.6
				----------------	----------------
				29,199	8.6
				==========	==========
Borouge	United Arab Emirates	Materials		6,914	2.0
Abu Dhabi Commercial Bank	United Arab Emirates	Financials		5,411	1.6
				----------------	----------------
				12,325	3.6
				==========	==========
Commercial International Bank	Egypt	Financials		3,432	1.0
				----------------	----------------
				3,432	1.0
				==========	==========
Titan Cement International	Greece	Materials		2,575	0.8
				----------------	----------------
				2,575	0.8
				==========	==========
Wizz Air Holdings	Hungary	Industrials		1,103	0.3
				----------------	----------------
				1,103	0.3
				==========	==========
Ferrexpo	Ukraine	Materials		286	0.1
				----------------	----------------
				286	0.1
			==========	==========	==========
Total long CFD positions			3,339	99,527	29.4
			==========	==========	==========
Total short CFD positions			(490)	(13,228)	(3.9)
			==========	==========	==========
Total CFD portfolio			2,849	86,299	25.5
			==========	==========	==========

Fair value and gross market exposure of investments as at 31 March 2023

Portfolio	Fair value¹	Gross market exposure³	Gross market exposure as a % of net assets³
	US$’000	US$’000	31 March 2023	31 March 2022	30 September 2022
Equity investments (see footnote 1(a)below)	259,875	259,875	76.9	75.8	74.8
Total long CFD positions (see footnote 1(b) below)	3,339	99,527	29.4	35.3	31.3
Total short CFD positions (see footnote 1(b) below)	(490)	(13,228)	(3.9)	(2.3)	(5.2)
	----------------	----------------	----------------	----------------	----------------
Total gross market exposure	262,724	346,174	102.4	108.8	100.9
	==========	==========	==========	==========	==========
Cash Fund	75,824	75,824	22.4	23.3	23.6
	----------------	----------------	----------------	----------------	----------------
Total investment and derivatives	338,548	421,998	124.8	132.1	124.5
	==========	==========	==========	==========	==========
Cash and cash equivalents^1,2	6,032	(77,418)	(22.9)	(30.1)	(25.7)
Other net current (liabilities)/assets	(6,400)	(6,400)	(1.9)	(2.0)	1.2
Non-current liabilities	(19)	(19)	0.0	0.0	0.0
	----------------	----------------	----------------	----------------	----------------
Net assets	338,161	338,161	100.0	100.0	100.0
	==========	==========	==========	==========	==========

The nature of the Company’s portfolio and the fact the Company gains significant exposure to a number of markets through long and short CFDs means that to the extent the Investment Manager has elected not to be geared, the Company will always hold a level of cash in a money market fund on its balance sheet representative of the difference between the notional cost of purchasing or selling the investments directly and the lower initial cost of making a margin payment on a long or short CFD contract. The Company was geared through the use of long and short CFD positions and gross and net gearing as at 31 March 2023 was 10.2% and 2.4% respectively (31 March 2022: 13.5% and 8.8%; 30 September 2022: 11.3% and 1.0%). 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:

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

(b) The sum of the fair value column for the CFD contracts totaling US$2,849,000 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 exposure to securities held through long CFD positions directly in the market would have amounted to US$96,188,000 at the time of purchase, and subsequent movement in market prices have resulted in unrealised gains on the long CFD positions of US$3,339,000 resulting in the value of the total long CFD market exposure to the underlying securities increasing to US$99,527,000 as at 31 March 2023. If the long positions had been closed on 31 March 2023, this would have resulted in a gain of US$3,339,000 for the Company. The notional exposure of selling the securities gained via the short CFD positions would have been US$12,738,000 at the time of entering into the contract, and subsequent movement in market prices have resulted in unrealised losses on the short CFD positions of US$490,000 resulting in the value of the total short CFD market exposure of these investments increasing to US$13,228,000 at 31 March 2023. If the short positions had been closed on 31 March 2023 this would have resulted in a loss of US$490,000 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 Gross 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.

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 2022. A detailed explanation can be found in the Strategic Report and in note 17 of the Annual Report and Financial Statements which are available on the website maintained by BlackRock at: www.blackrock.com/uk/brfi.

Certain financial markets have been volatile during the financial period due primarily to continuing geo-political tensions arising from Russia’s invasion of Ukraine. The Company has no exposure to Russia and a small exposure of 0.4% of net assets to Ukraine. The Board and the Investment Manager continue to monitor investment performance in line with the Company’s investment objectives.

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 remains mindful of the ongoing uncertainty surrounding the potential duration of the Russia-Ukraine conflict and its longer term effects on the global economy and the current heightened geo-political risk. 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.

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, prior year expenses written back and certain non-recurring items) were approximately 1.36% of average daily net assets for the year ended 30 September 2022.

Related party disclosures 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 UK-adopted 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 5 June 2023 and the above Responsibility Statement was signed on its behalf by the Chairman.

Audley Twiston-Davies
For and on behalf of the Board
5 June 2023

STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 MARCH 2023

		Six months ended 31 March 2023 (unaudited)			Six months ended 31 March 2022 (unaudited)			Year ended 30 September 2022 (audited)
		Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
	Notes	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000
Income from investments held at fair value through profit or loss	3	5,692	–	5,692	4,963	74	5,037	12,369	74	12,443
Net income from contracts for difference	3	927	565	1,492	644	–	644	2,328	–	2,328
Other income	3	171	–	171	1	–	1	55	–	55
		----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------
Total income		6,790	565	7,355	5,608	74	5,682	14,752	74	14,826
		==========	==========	==========	==========	==========	==========	==========	==========	==========
Net profit/(loss) on investments held at fair value through profit or loss		–	41,339	41,339	–	(1,929)	(1,929)	–	(41,473)	(41,473)
Net (loss)/gain on foreign exchange		–	(47)	(47)	–	363	363	–	(205)	(205)
Net profit/(loss) from derivatives		–	424	424	–	11,154	11,154	–	(4,425)	(4,425)
		----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------
Total		6,790	42,281	49,071	5,608	9,662	15,270	14,752	(46,029)	(31,277)
		==========	==========	==========	==========	==========	==========	==========	==========	==========
Expenses
Investment management and performance fees	4	(357)	(4,192)	(4,549)	(394)	(1,574)	(1,968)	(757)	(3,028)	(3,785)
Other operating expenses	5	(488)	(22)	(510)	(430)	(22)	(452)	(899)	(78)	(977)
		----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------
Total operating expenses		(845)	(4,214)	(5,059)	(824)	(1,596)	(2,420)	(1,656)	(3,106)	(4,762)
		==========	==========	==========	==========	==========	==========	==========	==========	==========
Net profit/(loss) on ordinary activities before finance costs and taxation		5,945	38,067	44,012	4,784	8,066	12,850	13,096	(49,135)	(36,039)
Finance costs	6	(12)	(49)	(61)	(1)	(2)	(3)	(3)	(14)	(17)
		----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------
Net profit/(loss) on ordinary activities before taxation		5,933	38,018	43,951	4,783	8,064	12,847	13,093	(49,149)	(36,056)
		==========	==========	==========	==========	==========	==========	==========	==========	==========
Taxation (charge)/credit	7	(750)	350	(400)	(408)	(4)	(412)	(1,080)	267	(813)
		----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------	----------------
Profit/(loss) for the period		5,183	38,368	43,551	4,375	8,060	12,435	12,013	(48,882)	(36,869)
		==========	==========	==========	==========	==========	==========	==========	==========	==========
Earnings/(loss) per ordinary share (cents)	9	2.74	20.26	23.00	2.31	4.26	6.57	6.35	(25.82)	(19.47)
		==========	==========	==========	==========	==========	==========	==========	==========	==========

The total columns of this statement represent 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 period. All income is attributable to the equity holders of the Company.

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

Statement of Changes in Equity for the six months ended 31 March 2023

	Note	Called up share capital 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 2023 (unaudited)
At 30 September 2022		2,418	5,798	308,804	(22,831)	8,467	302,656
Total comprehensive income:
Net profit for the period		–	–	–	38,368	5,183	43,551
Transactions with owners, recorded directly to equity:
Dividends paid¹	8	–	–	–	–	(8,046)	(8,046)
		----------------	----------------	----------------	----------------	----------------	----------------
At 31 March 2023		2,418	5,798	308,804	15,537	5,604	338,161
		==========	==========	==========	==========	==========	==========
For the six months ended 31 March 2022 (unaudited)
At 30 September 2021		2,418	5,798	308,804	26,051	9,707	352,778
Total comprehensive income:
Net profit for the period		–	–	–	8,060	4,375	12,435
Transactions with owners, recorded directly to equity:
Dividends paid²		–	–	–	–	(8,046)	(8,046)
		----------------	----------------	----------------	----------------	----------------	----------------
At 31 March 2022		2,418	5,798	308,804	34,111	6,036	357,167
		==========	==========	==========	==========	==========	==========
For the year ended 30 September 2022 (audited)
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 paid³		–	–	–	–	(13,253)	(13,253)
		----------------	----------------	----------------	----------------	----------------	----------------
At 30 September 2022		2,418	5,798	308,804	(22,831)	8,467	302,656
		==========	==========	==========	==========	==========	==========

¹ Final dividend of 4.25 cents per share for the year ended 30 September 2022, declared on 7 December 2022 and paid on 14 February 2023.

² 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.

³ 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 an interim dividend of 2.75 cents per share for the year ended 30 September 2022, declared on 26 May 2022 and paid on 24 June 2022.

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

Statement of Financial Position as at 31 March 2023

	Notes	31 March 2023 (unaudited) US$’000	31 March 2022 (unaudited) US$’000	30 September 2022 (audited) US$’000
Non current assets
Investments held at fair value through profit or loss	12	335,699	354,120	297,945
		----------------	----------------	----------------
Current assets
Current tax asset		430	408	446
Other receivables		2,856	4,611	1,345
Derivative financial assets held at fair value through profit or loss – contracts for difference	12	3,997	6,474	755
Cash and cash equivalents		6,098	5,820	4,901
Cash collateral pledged with brokers		553	320	7,404
		----------------	----------------	----------------
Total current assets		13,934	17,633	14,851
		==========	==========	==========
Total assets		349,633	371,753	312,796
		==========	==========	==========
Current liabilities
Other payables		(8,895)	(7,265)	(4,858)
Derivative financial liabilities held at fair value through profit or loss – contract for differences	12	(1,148)	(2,089)	(4,613)
Liability for cash collateral received		(1,410)	(5,213)	(650)
		----------------	----------------	----------------
Total current liabilities		(11,453)	(14,567)	(10,121)
		==========	==========	==========
Total assets less current liabilities		338,180	357,186	302,675
		==========	==========	==========
Non current liabilities
Management shares of £1.00 each (one quarter paid)		(19)	(19)	(19)
		----------------	----------------	----------------
Net assets		338,161	357,167	302,656
		==========	==========	==========
Equity attributable to equity holders
Called up share capital	10	2,418	2,418	2,418
Capital redemption reserve		5,798	5,798	5,798
Special reserve		308,804	308,804	308,804
Capital reserves		15,537	34,111	(22,831)
Revenue reserve		5,604	6,036	8,467
		----------------	----------------	----------------
Total equity		338,161	357,167	302,656
		==========	==========	==========
Net asset value per ordinary share (cents)	9	178.61	188.65	159.86
		==========	==========	==========

CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2023

	31 March 2023 (unaudited) US$’000	31 March 2022 (unaudited) US$’000	30 September 2022 (audited) US$’000
Operating activities
Net profit/(loss) on ordinary activities before taxation	43,951	12,843	(36,056)
Add back finance costs	61	3	17
Net (profit)/loss on investments held at fair value through profit or loss (including transaction costs)	(41,339)	1,929	41,473
Net (profit)/loss from derivatives (including transaction costs)	(424)	(11,154)	4,425
Financing costs on derivatives	(1,804)	(504)	(1,450)
Net loss/(gain) on foreign exchange	47	(363)	205
Sales of investments held at fair value through profit or loss	84,218	88,020	193,129
Purchases of investments held at fair value through profit or loss	(76,240)	(102,860)	(203,288)
Sales of Cash Fund¹	78,977	114,354	214,616
Purchases of Cash Fund¹	(83,371)	(101,418)	(189,800)
Amounts paid for losses on closure of derivatives	(27,288)	(21,803)	(62,302)
Amounts received on profit on closure of derivatives	22,810	34,823	69,002
(Increase)/decrease in other receivables	(2,105)	(1,484)	862
Increase/(decrease) in other payables	4,859	393	(4,680)
Decrease in amounts due from brokers	594	1,097	2,017
Decrease in amounts due to brokers	(822)	(4,725)	(2,059)
Cash collateral pledged with brokers	6,851	10	(7,074)
Cash collateral received from brokers	760	(974)	(5,537)
Taxation paid	(384)	(398)	(841)
	---------------	---------------	---------------
Net cash inflow from operating activities	9,351	7,789	12,659
	=========	=========	=========
Financing activities
Interest paid	(61)	(3)	(17)
Dividends paid	(8,046)	(8,046)	(13,253)
	---------------	---------------	---------------
Net cash outflow from financing activities	(8,107)	(8,049)	(13,270)
	=========	=========	=========
Increase/(decrease) in cash and cash equivalents	1,244	(260)	(611)
Effect of foreign exchange rate changes	(47)	363	(205)
	---------------	---------------	---------------
Change in cash and cash equivalents	1,197	103	(816)
Cash and cash equivalents at the start of the period	4,901	5,717	5,717
	---------------	---------------	---------------
Cash and cash equivalents at the end of the period	6,098	5,820	4,901
	=========	=========	=========
Comprised of:
Cash at bank	6,098	5,820	4,901
	---------------	---------------	---------------
	6,098	5,820	4,901
	=========	=========	=========

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 SIX MONTHS ENDED 31 MARCH 2023

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 2023 have been prepared in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the Financial Conduct Authority and with the UK–adopted International Accounting Standard 34 (IAS 34), Interim Financial Reporting. 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 2022, which have been prepared in accordance with UK–adopted International Accounting Standards (IASs) in conformity with the requirements of the Companies Act 2006.

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 IASs, the financial statements have been prepared in accordance with the guidance set out in the SORP.

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 does not issue 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 Incomes 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.

3. INCOME

	Six months ended 31 March 2023 (unaudited) US$’000	Six months ended 31 March 2022 (unaudited) US$’000	Year ended 30 September 2022 (audited) US$’000
Investment income:
Overseas dividends	4,095	4,500	10,327
Overseas special dividends	245	407	1,329
Interest from Cash Fund	1,352	56	713
	---------------	---------------	---------------
Total investment income	5,692	4,963	12,369
	=========	=========	=========
Net income from contracts for difference	927	644	2,328
Deposit interest	88	1	55
Interest received on cash collateral	83	–	–
	---------------	---------------	---------------
Total income	6,790	5,608	14,752
	=========	=========	=========

Dividends and interest received in cash in the six months ended 31 March 2023 amounted to US$3,047,000 and US$1,399,000 (six months ended 31 March 2022: US$3,239,000 and US$49,000; year ended 30 September 2022: US$13,766,000 and US$591,000).

No special dividends from equity investments have been recognised in capital for the six months ended 31 March 2023 (six months ended 31 March 2022: US$74,000; year ended 30 September 2022: US$74,000). Special dividends from long contracts for difference of US$565,000 have been recognised in capital for the six months ended 31 March 2023 (six months ended 31 March 2022: US$nil; year ended 30 September 2022: US$nil) and is included within Net income from contracts for difference in the capital account in the Statement of Comprehensive Income.

4. INVESTMENT MANAGEMENT FEE AND PERFORMANCE FEES

	Six months ended 31 March 2023 (unaudited)			Six months ended 31 March 2022 (unaudited)			Year ended 30 September 2022 (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	357	1,429	1,786	394	1,574	1,968	757	3,028	3,785
Performance fee	–	2,763	2,763	–	–	–	–	–	–
	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total	357	4,192	4,549	394	1,574	1,968	757	3,028	3,785
	=========	=========	=========	=========	=========	=========	=========	=========	=========

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 net asset value (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 NAV total return was measured against the performance of the Benchmark Index on a blended basis.

For the six months ended 31 March 2023, the Company’s NAV outperformed the Benchmark Index on a US Dollar basis by 10.0% resulting in a cumulative outperformance since launch of 41.6% (six months ended 31 March 2022: underperformed by 7.1%; year ended 30 September 2022: underperformed by 3.6%); therefore, a performance fee of US$2,763,000 has been accrued (six months ended 31 March 2022: US$nil; year ended 30 September 2022: US$nil). Any accrued performance fee is included within other payables in the Statement of Financial Position. Any final performance fee for the full year ending 30 September 2023 will not crystallise and fall due until the calculation date of 30 September 2023.

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.

The investment management fee is allocated 20% to the revenue account and 80% to the capital account and the performance fee is wholly allocated to the capital account of the Statement of Comprehensive Income. There is no additional fee for company secretarial and administration services.

5. OTHER OPERATING EXPENSES

	Six months ended 31 March 2023 (unaudited) US$’000	Six months ended 31 March 2022 (unaudited) US$’000	Year ended 30 September 2022 (audited) US$’000
Allocated to revenue:
Custody fee	116	118	274
Auditor’s remuneration:
– audit services	33	26	52
– other assurance services¹	4	5	7
Registrar’s fee	17	16	38
Directors’ emoluments²	128	109	196
Broker fees	19	20	36
Depositary fees³	17	14	29
Marketing fees	50	40	76
AIC fees	12	11	22
FCA fees	8	9	16
Printing and postage fees	32	20	35
Employer NI contributions	18	15	22
Stock exchange listings	5	6	12
Legal and professional fees	11	8	18
Write back of prior year expenses⁴	–	(6)	(6)
Other administrative costs	18	19	72
	---------------	---------------	---------------
	488	430	899
	=========	=========	=========
Allocated to capital:
Custody transaction charges⁵	22	22	78
	---------------	---------------	---------------
	510	452	977
	=========	=========	=========

¹ Fees for other assurance services of £3,550 (US$4,000) (six months ended 31 March 2022: £3,550 (US$5,000); year ended 30 September 2022: £6,500 (US$7,000)) relate to the review of the interim financial statements.

² For the six months ended 31 March 2023, Directors' emoluments amounted to £104,000 (US$128,000) (six months ended 31 March 2022: £83,000 (US$109,000); year ended 30 September 2022: £177,000 (US$196,000)). Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report on page 62 of Company’s Annual Report and Financial Statements for the year ended 30 September 2022. The Company has no employees.

³ All expenses other than depositary fees are paid in British Pound Sterling and are therefore subject to exchange rate fluctuations.

⁴ Relates to Directors’ expenses and miscellaneous fees written back during the six months ended 31 March 2022 and the year ended 30 September 2022.

⁵ For the six month period ended 31 March 2023, expenses of £18,000 (US$22,000) (six months ended 31 March 2022: £17,000 (US$22,000); year ended 30 September 2022: £70,000 (US$78,000)) 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.

The transaction costs incurred on the acquisition of investments amounted to US$102,000 for the six months ended 31 March 2023 (six months ended 31 March 2022: US$170,000; year ended 30 September 2022: US$282,000). Costs relating to the disposal of investments amounted to US$138,000 for the six months ended 31 March 2023 (six months ended 31 March 2022: US$120,000; year ended 30 September 2022: US$378,000). All transaction costs have been included within the capital reserve.

6. FINANCE COSTS

	Six months ended 31 March 2023 (unaudited)			Six months ended 31 March 2022 (unaudited)			Year ended 30 September 2022 (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 paid on bank overdraft	–	–	–	1	2	3	3	14	17
Interest paid on cash collateral	12	49	61	–	–	–	–	–	–
	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total	12	49	61	1	2	3	3	14	17
	=========	=========	=========	=========	=========	=========	=========	=========	=========

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

	Six months ended 31 March 2023 (unaudited)			Six months ended 31 March 2022 (unaudited)			Year ended 30 September 2022 (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 taxation:
Corporation tax	350	(350)	–	–	–	–	271	(271)	–
Overseas tax	400	-	400	408	4	412	809	4	813
	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------	---------------
Total taxation charge/(credit)	750	(350)	400	408	4	412	1,080	(267)	813
	=========	=========	=========	=========	=========	=========	=========	=========	=========

8. DIVIDENDS
The Board has declared an interim dividend of 3.10 cents per share for the period ended 31 March 2023 which will be paid on 7 July 2023 to shareholders on the register at 16 June 2023 (interim dividend for the six months ended 31 March 2022: 2.75 cents per share). This dividend has not been accrued in the financial statements for the six months ended 31 March 2023 as, under IAS, 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 2023 (unaudited)	Six months ended 31 March 2022 (unaudited)	Year ended 30 September 2022 (audited)
Net revenue profit attributable to ordinary shareholders (US$’000)	5,183	4,375	12,013
Net capital profit/(loss) attributable to ordinary shareholders (US$’000)	38,368	8,060	(48,882)
	---------------	---------------	---------------
Total profit/(loss) attributable to ordinary shareholders (US$’000)	43,551	12,435	(36,869)
	=========	=========	=========
Equity shareholders' funds (US$’000)	338,161	357,167	302,656
	=========	=========	=========
The weighted average number of ordinary shares in issue during the period on which the return per ordinary share was calculated was:	189,325,748	189,325,748	189,325,748
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	189,325,748	189,325,748
Earnings per share
Revenue earnings per share (cents) – basic and diluted	2.74	2.31	6.35
Capital earnings/(loss) per share (cents) – basic and diluted	20.26	4.26	(25.82)
	---------------	---------------	---------------
Total earnings/(loss) per share (cents) – basic and diluted	23.00	6.57	(19.47)
	=========	=========	=========

	As at 31 March 2023 (unaudited)	As at 31 March 2022 (unaudited)	As at 30 September 2022 (audited)
Net asset value per ordinary share (cents)	178.61	188.65	159.86
Ordinary share price (cents)¹	166.30	169.19	142.61
Net asset value per ordinary share (pence)²	144.45	143.29	143.21
Ordinary share price (pence)	134.50	128.50	127.75
	=========	=========	=========

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$1.2365 to £1 at 31 March 2023 (31 March 2022: US$1.3166 to £1; 30 September 2022: US$1.1163 to £1).

² Based on an exchange rate of US$1.2365 to £1 at 31 March 2023 (31 March 2022: US$1.3166 to £1; 30 September 2022: US$1.1163 to £1).

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 2022	189,325,748	52,497,053	241,822,801	2,418
	-----------------	-----------------	-----------------	-----------------
At 31 March 2023	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 14 to the Annual Report and Financial Statements for the year ended 30 September 2022.

During the six months ended 31 March 2023, the Company did not issue any ordinary shares (six months ended 31 March 2022 and year ended 30 September 2022: none).

Since 31 March 2023 and up to the date of this report, no ordinary shares have been issued or bought back.

11. RESERVES
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 reserve may be used as distributable reserves for all purposes and, in particular, the repurchase by the Company of its ordinary shares and for payments such as dividends. In accordance with the Company’s Articles of Association, the special reserve, capital reserve and revenue reserve may be distributed by way of dividend. The gain on the capital reserve arising on the revaluation of investments of US$2,665,000 (six months ended 31 March 2022: gain of US$6,840,000; year ended 30 September 2022: loss of US$44,579,000) is subject to fair value movements and may not be readily realisable at short notice, as such it may not be entirely distributable. The 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 2021 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 the special reserve.

12. FINANCIAL RISKS AND VALUATION OF FINANCIAL INSTRUMENTS
The Company’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The risks are substantially consistent with those disclosed in the previous annual financial statements with the exception of those outlined below.

Market risk arising from price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, climate change or other events could have a significant impact on the Company and its investments.

The current environment of heightened geopolitical risk given the war in Ukraine has undermined investor confidence and market direction. In addition to the tragic and devastating events in Ukraine, the war has constricted supplies of key commodities, pushing prices up and creating a level of market uncertainty and volatility which is likely to persist for some time.

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) as set out on page 88 of the Company’s Annual Report and Financial Statements for the year ended 30 September 2022.

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 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.

Contracts for difference and forward currency contracts 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.

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 Level 3 asset or liability including an assessment of the relevant risks including but not limited to credit risk, market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and inputs used in measurement of Level 3 assets or liabilities.

Fair values of financial assets and financial liabilities
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 risk, in accordance with the fair value related requirements of the Company’s financial reporting framework.

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 2023 (unaudited)	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	259,875	–	–	259,875
Cash Fund	75,824	–	–	75,824
Contracts for difference (fair value)	–	3,997	–	3,997
Liabilities:
Contracts for difference (fair value)	–	(1,148)	–	(1,148)
	---------------	---------------	---------------	---------------
	335,699	2,849	–	338,548
	=========	=========	=========	=========

Financial assets/(liabilities) at fair value through profit or loss at 31 March 2022 (unaudited)	Level 1 US$’000	Level 2 US$’000	Level 3 US$’000	Total US$’000
Assets:
Equity investments	270,823	–	–	270,823
Cash Fund	83,297	–	–	83,297
Contracts for difference (fair value)	–	6,474	–	6,474
Liabilities:
Contracts for difference (fair value)	–	(2,089)	–	(2,089)
	---------------	---------------	---------------	---------------
	354,120	4,385	–	358,505
	=========	=========	=========	=========

Financial assets/(liabilities) at fair value through profit or loss at 30 September 2022 (audited)	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
	=========	=========	=========	=========

There were no transfer between levels of financial assets and financial liabilities recorded at fair value during the six months ended 31 March 2023, six months ended 31 March 2022 or the year ended 30 September 2022. The Company held no Level 3 securities during the six months ended 31 March 2023.

13. RELATED PARTY DISCLOSURE
Directors’ emoluments
The Board consists of six non–executive Directors, all of whom are considered to be independent of the Manager by the Board. None of the Directors has a service contract with the Company. With effect from 1 October 2022, the Chairman receives an annual fee of £42,000, the Chairman of the Audit and Management Engagement Committee receives an annual fee of £35,000 and each of the other Directors receives an annual fee of £30,500.

As at 31 March 2023, an amount of US$21,000 (£17,000) was outstanding in respect of Directors’ fees (31 March 2022: US$20,000 (£15,000); 30 September 2022: US$17,000 (£15,000)).

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
Elisabeth Airey	75,000
Katrina Hart¹	39,789
Lucy Taylor–Smith	Nil
Stephen White	30,000
Sarmad Zok	Nil

¹ 9,780 ordinary shares are held on behalf of Mrs Hart's dependents.

Since the period end and up to the date of this report there have been no changes in Directors’ holdings.

The transactions with the Investment Manager and AIFM are stated in note 14.

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 31 March 2023

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.
8.1%	n/a	n/a

As at 31 March 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.
4.7%	n/a	n/a

14. TRANSACTIONS WITH THE 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 50 and 51 of the Directors’ Report in the Company’s Annual Report and Financial Statements for the year ended 30 September 2022.

The investment management fee due for the six months ended 31 March 2023 amounted to US$1,786,000 (six months ended 31 March 2022: US$1,968,000; year ended 30 September 2022: US$3,785,000). The performance fee accrued for the six months ended 31 March 2023 is US$2,763,000 (six months ended 31 March 2022: US$nil; year ended 30 September 2022: US$nil).

At the period end, US$2,669,000 was outstanding in respect of management fees (31 March 2022: US$1,968,000; 30 September 2022: US$882,000) and US$2,763,000 was accrued in respect of performance fees (31 March 2022: US$3,815,000; 30 September 2022: US$nil). Any final performance fee for the full year ending 30 September 2023 will not crystallise and fall due until the calculation date of 30 September 2023.

In addition to the above services, BIM (UK) has provided the Company with marketing services. The total fees paid or payable for these services to 31 March 2023 amounted to US$50,000 excluding VAT (six months ended 31 March 2022: US$40,000; year ended 30 September 2022: US$76,000). Marketing fees of US$103,000 excluding VAT (31 March 2022: US$104,000; 30 September 2022: US$53,000) were outstanding as at 31 March 2023.

The Company has an investment in the BlackRock Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund of US$75,824,000 as at 31 March 2023 which is a fund managed by a company within the BlackRock Group (31 March 2022: US$83,297,000; 30 September 2022: US$71,415,000).

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 2023 (six months ended 31 March 2022: none; year ended 30 September 2022: none).

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 2023 and 31 March 2022 has not been audited.

The information for the year ended 30 September 2022 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 2023 in early December 2023.

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 2023 with the Annual General Meeting being held in February 2024.

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

5 June 2023

12 Throgmorton Avenue
London EC2N 2DL

END

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