Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 31 May 2015 and unaudited.
Performance at month end with net income reinvested
							One month		Three months				Six months				One year				Three years		Since Launch*
							%		%				%				%				%		%
Sterling:
Share price							2.0		2.4				-1.6				-0.5				63.5		31.0
Net asset value							-1.1		3.0				4.0				1.0				61.7		37.3
MSCI Frontiers Index (NR)							-2.9		-0.6				-4.5				-5.4				44.8		19.9
MSCI Emerging Markets Index (NR)							-3.3		3.2				3.5				9.9				20.0		2.8
US Dollars:
Share price							1.3		1.1				-4.1				-9.5				62.2		28.5
Net asset value							-1.8		1.7				1.4				-8.1				60.5		34.5
MSCI Frontiers Index (NR)							-3.6		-1.8				-7.0				-14.0				43.6		17.3
MSCI Emerging Markets Index (NR)							-4.0		1.9				0.8				0.0				19.0		0.6
Sources: BlackRock and Standard & Poor’s Micropal * 17 December 2010.
At month end
US Dollar
Net asset value - capital only:																		177.91c
Net asset value - cum income:																		182.81c
Sterling:
Net asset value - capital only:																		116.58p
Net asset value - cum income:																		119.80p
Share price:																		116.25p
Total assets (including income):																		£180.4m
Discount to cum-income NAV:																		3.0%
Gearing:																		nil
Gearing range (as a % of gross assets):																		0-20%
Net yield*:																		3.6%
Ordinary shares in issue:																		150,621,621
Ongoing charges**:																		1.5%
Ongoing charges plus taxation and performance fee:																		1.5%
*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.4% and includes the 2014 final dividend of 4.00 cents per share declared on 1 December 2014, paid to shareholders on 20 February 2015 and the 2015 interim dividend of 2.40 cents per share announced on 18 May 2015 and payable to shareholders on 3 July 2015. **Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 September 2014.
Benchmark
Sector Analysis				Gross assets(%)*								Country Analysis							Gross assets(%)*
Financials				37.2								Bangladesh							11.1
Consumer Staples				14.2								Pakistan							10.9
Energy				14.1								Kuwait							10.3
Telecommunications				14.0								Sri Lanka							9.1
Consumer Discretionary				7.3								Nigeria							7.8
Industrials				5.6								Kazakhstan							7.5
Health Care				5.0								Argentina							6.2
Utilities				3.2								Romania							6.1
Materials				3.0								Vietnam							5.5
Information Technology				2.2								Morocco							4.5
				-----								Ukraine							4.1
Total				105.8								Turkmenistan							3.3
				-----								Saudi Arabia							3.3
Short positions				-1.1								Oman							3.0
				====								Belarus							2.2
												Panama							2.1
												Slovenia							2.1
												Other							6.7
																			-----
												Total							105.8
																			-----
												Short positions							-1.1
																			====
*reflects gross market exposure from contracts for difference (CFDs).
Market Exposure
	30.06 2014    %	31.07  2014     %	31.08  2014     %		30.09  2014     %	31.10  2014     %		30.11  2014     %			31.12  2014     %			31.01  2015     %		28.02  2015     %				31.03  2015     %		30.04  2015     %		31.05  2015     %
Long	106.6	100.8	98.7		100.0	99.9		97.9			98.6			101.1		102.0				106.4		105.9		105.8
Short	1.7	1.6	1.6		0.8	1.5		2.8			2.6			1.6		1.6				1.7		1.7		1.1
Gross	108.3	102.4	100.3		100.8	101.4		100.7			101.2			102.7		103.6				108.1		107.6		106.9
Net	104.9	99.2	97.1		99.2	98.4		95.1			96.0			99.5		100.4				104.7		104.2		104.7
Company						Country of Risk									% of gross assets
MHP						Ukraine									4.1
Kuwait Foods (Americana)						Kuwait									4.0
BRD Societe Generale						Romania									3.9
United Bank for Africa						Nigeria									3.4
Halyk Savings Bank						Kazakhstan									3.4
Zenith Bank						Nigeria									3.4
Dragon Oil						Turkmenistan									3.3
Telecom Argentina						Argentina									3.3
Mobile Telecommunications						Kuwait									3.3
Hub Power						Pakistan									3.2
Commenting on the markets, Sam Vecht, representing the Investment Manager noted:
Portfolio Performance
In May the BlackRock Frontier Investment Trust plc’s NAV fell by 1.8%, outperforming the benchmark by 1.8% (on a US dollar basis with net income reinvested).
Bangladeshi financial, United Commercial Bank rallied 10% in May. The political environment is normalising and speculation that June’s budget would include favourable policies for the banking sector cheered investors. In the event, the budget included measures that would reduce the tax rate for listed companies as well as capital gains tax breaks for banks.
Our underweight position in Kenya contributed significantly to relative performance. The market was impacted by currency weakness. The shilling has weakened by 8% since March and recent comments by Central Bank of Kenya (CBK) Deputy Governor Sirima suggest that the pace of the shilling’s slide warrants a response from the CBK. As a result, more intervention from the CBK and continued tight liquidity conditions are likely.
Positions in Iraq were the largest detractor from relative performance during May. The issue for operators in the north of the county is that although, the central government and Kurdish government are collecting oil revenues, the companies are not yet getting paid. We retain some exposure to the region as we expect operators to perform well if payments do resume or if the oil price rebounds, thereby improving the fiscal position of Iraq.
Portfolio Activity
Our team conducted an investment trip to Nigeria in May, meeting with a wide range of market participants, including the governor of the central bank, representatives from the International Monetary Fund, World Bank as well as management teams from a large number of companies.
The motivation for the trip was primarily driven by the recent Presidential elections. President Buhari was inaugurated on May 29th and now has the unenviable task of managing the Nigerian economy through the current crisis.  Nigeria has experienced a substantial reduction in both fiscal and external revenues as a result of the lower oil price.  Whilst the Central Bank has devalued the exchange rate to a degree, the policy of holding the Naira at current levels, combined with a material reduction in domestic liquidity and an increased government budget deficit is resulting in slowing domestic growth.  Measures to increase government revenues which are expected to include the removal of fuel subsidies, an increase in VAT rates and other taxes will only exacerbate the slowdown.  Whilst foreign currency reserves did receive a boost following the election, pressure on reserve levels are starting to emerge once again.  It is questionable for how long the Central Bank can sustain the current Naira level and we expect a further devaluation.
However, there is no doubt that this was an historic election and could herald in a deeply significant time of reform.  Therefore, whilst we continue expect some turbulence in the Nigerian market in the shorter term, we are mindful of the long term opportunities.
The Company initiated a position in Vietnamese financial, Saigon Securities. We are now increasingly positive on the prospects for Vietnam driven by the ongoing commitment to reform the banking system and the proposed Trans Pacific Partnership trade deal.
17 June 2015
ENDS
Latest information is available by typing www.blackrock.co.uk/brfi on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on BlackRock’s website (or any other website) is incorporated into, or forms part of, this announcement.