Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

BlackRock Frontiers (BRFI)

  Print      Mail a friend

Friday 21 April, 2017

BlackRock Frontiers

Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706)

All information is at 31 March 2017 and unaudited.

Performance at month end with net income reinvested.
 

One
 month
Three
months
One
 year
Three
 years
Five
 years
Since 
Launch*
Sterling:
Share price 1.2 15.6 43.8 39.7 108.4 79.4
Net asset value 3.3 10.7 38.0 43.2 99.8 79.0
MSCI Frontiers Index (NR) 2.0 7.6 29.7 26.8 69.6 44.3
MSCI Emerging Markets Index (NR) 2.0 10.1 34.7 38.1 33.0 25.2
US Dollars:
Share price 1.7 17.0 25.0 4.9 63.3 44.4
Net asset value 3.8 12.0 20.0 7.5 56.6 43.8
MSCI Frontiers Index (NR) 2.5 8.9 12.9 -4.9 32.7 15.7
MSCI Emerging Markets Index (NR) 2.5 11.4 17.2 3.6 4.1 0.4

Sources: BlackRock and Standard & Poor’s Micropal

* 17 December 2010.
 

At month end
Ordinary Shares
US Dollar
Net asset value - capital only: 177.71c
Net asset value - cum income: 180.29c
Sterling:
Net asset value - capital only: 142.11p
Net asset value - cum income: 144.18p
Share price: 147.00p
Total assets (including income): £245.7m
Premium to cum-income NAV: 2.0%
Gearing: Nil
Gearing range (as a % of gross assets): 0-20%
Net yield*: 3.6%
Ordinary shares in issue: 170,383,108
Ongoing charges**: 1.4%
Ongoing charges plus taxation and performance fee: 2.4%

*The Company’s yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 3.6% and includes the 2016 final dividend of 4.00 cents per share declared on 22 November 2016 and paid to shareholders on 17 February 2017 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 2016.
 

Sector Analysis Gross assets(%)* Country Analysis Gross assets(%)*
Financials 35.8 Argentina 16.2
Consumer Staples 17.7 Kuwait 10.7
Telecommunication Services 12.2 Romania 9.7
Materials 9.3 Pakistan 9.2
Energy 8.7 Vietnam 8.5
Health Care 8.0 Bangladesh 8.1
Utilities 6.6 Kazakhstan 8.1
Information Technology 5.9 Sri Lanka 6.1
Industrials 4.2 Ukraine 6.0
Real Estate 2.3 Kenya 5.7
Consumer Discretionary 1.4 Egypt 4.4
            ----- Morocco 4.2
Total 112.1 Nigeria 3.1
----- Saudi Arabia 3.0
Short positions 0.0 Philippines 2.3
===== Estonia 1.9
Colombia 1.7
Eurasia 1.6
Slovenia 1.6
-----
Total 112.1
-----
Short positions 0.0
=====

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

Market Exposure
 

30.04
 2016
    %
31.05
 2016
    %
30.06
 2016
    %
31.07
 2016
    %
31.08
 2016
    %
30.09
 2016
    %
31.10
 2016
    %
30.11
 2016
    %
31.12
 2016
    %
31.01
 2017
    %
28.02
 2017
    %
31.03
 2017
    %
Long 109.2 108.8 110.5 103.4 105.7 104.0 106.4 102.3 108.4 115.0 115.8 112.1
Short  1.3  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0  0.0
Gross 110.5 108.8 110.5 103.4 105.7 104.0 106.4 102.3 108.4 115.0 115.8 112.1
Net 107.9 108.8 110.5 103.4 105.7 104.0 106.4 102.3 108.4 115.0 115.8 112.1


Ten Largest Equity Investments

Company Country of Risk % of gross assets
MCB Bank Pakistan 4.4
Halyk Savings Bank Kazakhstan 3.9
Pampa Energia Argentina 3.9
Mobile Telecommunications Kuwait 3.8
Equity Group Kenya 3.7
Square Pharmaceuticals Bangladesh 3.3
Banco Macro Argentina 3.3
S.N.G.N. Romgaz Romania 3.3
MHP Ukraine 3.1
Maroc Telecom Morocco 3.0


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

In March, the Company’s NAV rose by 3.8% (including a provision for capital gains tax in Argentina), whilst the Company’s benchmark, the MSCI Frontier Index, rose by 2.5% (on a US Dollar basis with net income reinvested). On a 12-month basis, the Company outperformed the benchmark by 7.1%, returning 20.0% against the benchmark’s 12.9%. The MSCI Emerging Markets Index rose by 2.5% and by 17.2%, over the same periods. With effect from 30 March 2017, the Company’s Net Asset Value (NAV), includes a provision for capital gains tax potentially payable in Argentina. As at 30 March 2017 this provision was 1.4% of the NAV (0.94% on unrealised gains and 0.46% on realised gains since 23 September 2013). There is considerable uncertainty as to whether the capital gains tax will become payable and there is currently no established mechanism for paying it. In the event that no tax becomes payable the provision will be reversed.

Argentina was again the best performing Frontier Market: the MSCI Argentina Index rose by 13% over the month to take the year to date performance to +35%. Recently published GDP data showed that the Argentine economy grew at 0.5% quarter-on-quarter in the fourth quarter of 2016, exiting recession. Economists forecast activity to continue to improve through 2017 and this together with global appetite for high carry assets has led to significant compression of Argentine yields in 2017 and driven the equity market to new highs. The Company benefited from holdings in Pampa Energia, Grupo Financiero Galicia and Transportadora de gas del sur, all of which rose by more than 18% in March. 

Equity Bank in Kenya also showed notable performance, rising by 25% during the month. Kenyan banking stocks fell sharply following the introduction of the interest rate cap at the end of Q3 2016 and Equity Bank was trading around its lowest ever price to book ratio at the start of 2016. The stock rallied by more than 25% during March after announcing better than expected results. Investors also became increasingly confident that the interest rate cap will be removed this year. 

Positioning in Ukraine contributed as well with MHP, an agro-industrial company focusing on the production of poultry and cultivation of grain, rising by 12% as it reported a solid end to 2016 driven by strong poultry export volumes.

Halyk bank, the leading retail bank in Kazakhstan, rose by 13% over the month after posting good results. The stock performance was further driven by the government’s announcement to inject 2 trillion Tenge ($6.2 billion) into its Problem Loans Fund fuelling hope of a balance sheet clean up at Kazkommertsbank happening prior to a potential takeover by Halyk Bank.

Pakistan was a notable underperformer during the month. The index fell by 2%. Having performed strongly over the last few years, valuations are looking less attractive, whilst the deterioration of fiscal and external balances creates the risk of pressure on the currency. We maintain selective exposure there.

At the beginning of the month we increased our exposure to Kenya and trimmed Argentine exposure, taking profits as the market performed strongly. The Company had its highest ever level of gearing through 1Q with investors benefiting from this as it coincided with a period of very strong performance – the Company is up by 12% YTD.  Following this strong performance, we have reduced the gearing to 12%, which remains a fairly high level in the context of historic gearing levels.

Broadly, 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.

21 April 2017

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


a d v e r t i s e m e n t