Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC
All information is at 31 October 2016 and unaudited.
Performance of ordinary share portfolio at month end with net income reinvested.
	One month	Three months	One year	Three years	Five years	Since  Launch*
Sterling:
Share price	5.4	6.7	37.6	30.9	112.2	62.4
Net asset value	5.8	10.2	30.6	39.6	107.7	66.2
MSCI Frontiers Index (NR)	6.0	9.8	22.6	27.3	61.7	34.5
MSCI Emerging Markets Index (NR)	6.7	13.2	38.2	23.7	35.9	20.3
US Dollars:
Share price	-0.9	-1.9	8.8	-0.4	60.9	27.6
Net asset value	-0.6	1.3	3.3	6.1	57.4	30.3
MSCI Frontiers Index (NR)	-0.4	1.0	-3.0	-3.3	22.3	5.4
MSCI Emerging Markets Index (NR)	0.2	4.1	9.3	-6.0	2.8	-5.8

Sources: BlackRock and Standard & Poor’s Micropal

* 17 December 2010.

At month end
US Dollar
Net asset value - capital only:	163.13c
Net asset value - cum income:	167.25c
Sterling:
Net asset value - capital only:	133.62p
Net asset value - cum income:	137.00p
Share price:	136.00p
Total assets (including income):	£225.1m
Discount to cum-income NAV:	0.7%
Gearing:	nil
Gearing range (as a % of gross assets):	0-20%
Net yield*:	4.4%
Ordinary shares in issue:	164,333,108
Ongoing charges**:	1.5%
Ongoing charges plus taxation and performance fee:	1.6%

*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 4.1% and includes the 2015 final dividend of 4.15 cents per share declared on 18 December 2015, paid to shareholders on 19 February 2016 and the 2016 interim dividend of 2.60 cents per share announced on 16 May 2016 and paid to shareholders on 1 July 2016.

**Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs for the year ended 30 September 2015.
 

Sector Analysis	Gross assets(%)*		Country Analysis	Gross assets(%)*
Financials	34.0		Argentina	13.1
Consumer Staples	17.7		Pakistan	11.1
Telecommunication	13.7		Romania	10.9
Utilities	6.8		Kazakhstan	8.9
Health Care	6.7		Bangladesh	8.8
Energy	6.3		Vietnam	7.2
Industrials	6.1		Sri Lanka	6.8
Information Technology	5.4		Morocco	6.5
Materials	5.2		Ukraine	5.7
Consumer Discretionary	2.5		Kenya	5.6
Real Estate	2.0		Kuwait	5.4
	-----		Nigeria	3.0
Total	106.4		Saudi Arabia	2.4
	-----		Eurasia	2.1
Short positions	0.0		Estonia	2.1
	=====		Slovenia	2.0
			Caribbean	2.0
			Philippines	1.4
			Egypt	1.4
				-----
			Total	106.4
				-----
			Short positions	0.0
				=====

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

Market Exposure

	30.11  2015     %	31.12  2015     %	31.01  2016     %	29.02  2016  %	31.03  2016     %	30.04  2016     %	31.05  2016     %	30.06  2016     %	31.07  2016     %	31.08  2016     %	30.09  2016     %	31.10  2016     %
Long	100.3	99.5	102.5	102.2	108.1	109.2	108.8	110.5	103.4	105.7	104.0	106.4
Short	1.7	1.7	1.4	1.1	1.2	1.3	0.0	0.0	0.0	0.0	0.0	0.0
Gross	102.0	101.2	103.9	103.3	109.3	110.5	108.8	110.5	103.4	105.7	104.0	106.4
Net	98.6	97.8	101.1	101.1	106.9	107.9	108.8	110.5	103.4	105.7	104.0	106.4

Ten Largest Equity Investments
Company	Country of Risk	% of gross assets
MCB Bank	Pakistan	4.6
Banco Macro	Argentina	3.9
Maroc Telecom	Morocco	3.9
Halyk Savings Bank	Kazakhstan	3.5
Mobile Telecommunications	Kuwait	3.5
Grupo Financiero Galicia	Argentina	3.5
KazMunaiGas Exploration Production	Kazakhstan	3.4
Square Pharmaceuticals	Bangladesh	3.3
MHP	Ukraine	3.2
BRD Groupe Societe Generale	Romania	3.1

Commenting on the markets, Sam Vecht, representing the Investment Manager noted:

In October, the Company’s NAV fell by -0.6% marginally underperforming the MSCI Frontier benchmark by -0.2% (on a US Dollar basis with net income reinvested). On a 12-month basis, the Company outperformed the benchmark by 6.3%, returning 3.3% against the benchmark’s -3.0%. The MSCI Emerging Markets Index rose 0.2% and 9.3% over the one month and 12-month periods.

October performance was diversified across countries, sectors, and names.  Selection within Kazakhstan was a notable driver to performance. Our overweight position in Halyk Bank did particularly well for the Trust, driven by an improved profitability outlook, attractive valuation and anticipated macro recovery. A position in off-benchmark telecom name, KCell, was also among the largest contributors. Outside of Kazakhstan, Argentine utility, Pampa Energia, continues to benefit the portfolio, as Argentina delivers an electricity sector reform, unlocking value in Pampa. Similarly, our underweight to Kuwait also contributed positively on a relative basis. The market and economy are still adjusting to the reality of $50 oil price. The portfolio remains approximately 20% underweight to the Middle East region versus the benchmark.

On the other hand, our longstanding position in Pakistani utility, Hub Power, detracted over the month on news that the power company may be scaling down the size of their new coal plant. Lebanese real estate developer, Solidere, was the largest individual detractor in October. The stock, which is not owned in the portfolio, soared over 30% on news that newly elected President Michel Aoun had appointed former Prime Minister Saad Hariri to form a new cabinet, maintaining momentum as the country breaks free of the two-year leadership vacuum. Pan-Eurasian Coke bottler, Coca-Cola Icecek, also weighed on performance.

It is notable that during the recent bout of global volatility, frontier markets are very resilient. This reflects the different investor bases in frontier markets and low synchronisation with the global cycle. Frontier Markets continue to exhibit strong GDP growth and low government debt levels, and represent an opportunity to invest in companies with strong cash flow and high dividend yields, on some of the lowest valuations in the world.

18 November 2016

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.