BlackRock Frontiers Investment Trust Plc - Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706) All information is at 31 July 2024 and unaudited. Performance at month end with net income reinvested. One Three One Three Five Since month months year years years Launch* % % % % % % Sterling: Share price 2.3 1.2 5.3 43.6 27.3 145.9 Net asset value 0.6 0.8 7.3 44.0 36.1 171.2 Benchmark (NR)** 1.7 -0.1 2.5 21.7 3.0 87.4 MSCI Frontiers Index (NR) 0.2 3.0 7.1 0.3 5.7 80.8 MSCI Emerging Markets Index (NR) -1.3 2.2 6.4 -0.4 12.7 65.6 US Dollars: Share price 3.9 3.8 5.2 32.8 33.6 103.6 Net asset value 2.2 3.4 7.1 33.1 42.9 124.2 Benchmark (NR)** 3.4 2.5 2.3 12.4 8.0 55.5 MSCI Frontiers Index (NR) 1.9 5.7 7.0 -7.3 10.8 48.9 MSCI Emerging Markets Index (NR) 0.3 4.8 6.3 -8.0 18.3 36.5 Sources: BlackRock and Standard & Poor's Micropal * 17 December 2010. ** The Company's benchmark changed from MSCI Frontier Markets Index to MSCI Emerging ex Selected Countries + Frontier Markets + Saudi Arabia Index (net total return, USD) effective 1/4/2018. At month end US Dollar Net asset value - capital only: 201.85c Net asset value - cum income: 206.58c Sterling: Net asset value - capital only: 157.14p Net asset value - cum income: 160.82p Share price: 147.00p Total assets (including income): £304.5m Discount to cum-income NAV: 8.6% Gearing: Nil Gearing range (as a % of gross assets): 0-20% Net yield*: 4.5% Ordinary shares in issue**: 189,325,748 Ongoing charges***: 1.38% Ongoing charges plus taxation and performance fee****: 3.78% *The Company's yield based on dividends announced in the last 12 months as at the date of the release of this announcement is 4.5%, and includes the 2023 final dividend of 4.90 cents per share, declared on 30 November 2023, and paid to shareholders on 14 February 2024, and the 2024 interim dividend of 3.50 cents per share, declared on 31 May 2024, and paid to shareholders on 01 July 2024. ** Excluding 52,497,053 ordinary shares held in treasury. ***The Company's ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non-recurring items for Year ended 30 September 2023. **** The Company's ongoing charges are calculated as a percentage of average daily net assets and using the management fee and all other operating expenses and including performance fees but excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation and certain non -recurring items for Year ended 30 September 2023. Sector Gross market value Country Gross market value Analysis as a % of net Analysis as a % of net assets assets Financials 45.8 Saudi Arabia 18.6 Industrials 12.6 Indonesia 14.0 Materials 11.2 United Arab 9.5 Emirates Real Estate 10.1 Philippines 8.6 Energy 9.7 Kazakhstan 8.1 Consumer 8.3 Hungary 6.8 Staples Communication 7.3 Poland 5.8 Services Consumer 5.0 Turkey 5.1 Discretionary Information 4.9 Thailand 4.2 Technology Health Care 0.9 Pakistan 3.8 Utilities 0.3 Qatar 3.5 ----- Kenya 3.4 116.1 Vietnam 2.9 ----- Greece 2.9 Short -3.5 Georgia 2.5 Positions Malaysia 2.4 Singapore 2.2 Colombia 2.1 Multi 2.0 -International Czech 1.8 Republic Egypt 1.8 Chile 1.6 Cambodia 1.0 Romania 0.8 Bangladesh 0.7 ----- 116.1 ----- Short -3.5 positions ---- *reflects gross market exposure from contracts for difference (CFDs). Market Exposure 31.08 30.09 31.10 30.11 31.12 31.01 29.02 31.03 30.04 31.05 30.06 31.07 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2024 2024     %     %     %     %     %     %     %     %     %     % %     % Long 113.3 114.9 118.8 113.4 116.6 119.5 121.4 120.4 120.8 118.1 118.4 116.1 Short 3.0 3.0 3.1 4.6 4.7 3.6 3.5 2.7 2.3 2.4 2.9 3.5 Gross 116.3 117.9 121.9 118.0 121.3 123.1 124.9 123.1 123.1 120.5 121.3 119.6 Net 110.3 111.9 115.7 108.8 111.9 115.9 117.9 117.7 118.5 115.7 115.5 112.6 Ten Largest Investments Company Country of Risk Gross market value as a % of net assets Bank Central Indonesia 4.8 Asia Emaar United Arab Emirates 4.6 Properties Saudi Saudi Arabia 4.6 National Bank Kaspi.Kz JCS Kazakhstan 3.9 FPT Vietnam 2.9 PT Bank Indonesia 2.8 Negara Indonesia Etihad Saudi Arabia 2.7 Etisalat Turkiye Is Turkey 2.7 Bankasi PZU Poland 2.6 Ayala Land Philippines 2.6 Commenting on the markets, Sam Vecht, Emily Fletcher and Sudaif Niaz, representing the Investment Manager noted: The Company's NAV rose by 2.2% in July, underperforming its benchmark the MSCI Emerging ex Selected Countries + Frontier Markets + Saudi Arabia Index ("Benchmark Index") which returned +3.4%. For reference, the MSCI Emerging Markets Index was up by 0.3% while the MSCI Frontier Markets Index gained 1.9% over the same period. All performance figures are on a US Dollar basis with net income reinvested. Emerging markets(EM) was flat over the month, underperforming developed markets (+1.7%) despite an improving macroeconomic backdrop. Whilst dollar weakness and increasing likelihood of the federal reserve easing in September 2024 are supportive, increasing geopolitical tension and tariffs post US elections weighed on sentiment. In a reversal from June 2024, EMEA (+3.4%) was the best performing region in EM, with strong returns coming from Greece (+6.9%), UAE (+6.8%) and Egypt (+6.1%). Latin America (+0.9%) outperformed EM in July 2024 but remains in deeply negative territory (-17.6%) Year to date. EM Asia (-0.8%) was the month's worst performing region, dragged down by a pull-back in the tech rally. Although stock selection had a negative impact on the overall portfolio returns, certain stocks performed well. The largest contributor to returns was our holding in Bank of Georgia (+19.6%). The stock sold off in May 2024 following the passing of the Georgian foreign agents bill, but has since rebounded partly due to sell side upgrades that now factor in the company's acquisition of Armenian bank Ameriabank. Gold exposure through our holding in Turkish gold mine operator Eldorado Gold (+14.7%) also did well on the back of rising gold price. IT services company, EPAM Systems, also helped returns as the stock bounced back from previous lows following a broker upgrade from Jefferies. In UAE, Air Arabia (14.3%), the Emirati low-cost airline, was another contributor to performance. On the flipside, Hungarian low-cost carrier Wizz Air (-13.1%) was the largest detractor after cutting its profit forecast. The company has been impacted by engine issues at their engine supplier Pratt & Whitney, resulting in grounded planes and higher leasing costs for Wizz. Philippines based resort and casino operator Bloomberry Resorts (-12.7%) was another detractor, extending losses from June. The Polish supermarket chain Jeronimo Martins (-10.7%) also detracted after reporting margin weakness for the first half of 2024 and communicating to the market that this could continue over the next coming months. We made few changes to the portfolio in July. In Indonesia, we rotated our bank exposure by exiting Bank Mandiri and initiating a position in Bank Negara as we are positive on its continued turn around. We took advantage of weakness in the Polish market to add to our holding in Polish insurance company PZU. Elsewhere in Europe, we took profits by exiting OPAP (Greek Organization of Football). The stock has done exceptionally well for the fund. As higher global rates continue to feed through into the real economy, we expect some moderation of demand in developed markets. We note slowing credit growth in particular in the US. In contrast, we continue to see improving activity levels in some frontier and smaller emerging markets. With inflation falling across many countries within our universe, rate cuts have started to materialize in some countries. This is a good set up for domestically oriented economies to see a cyclical pick up. We remain positive on the outlook for small emerging and frontier markets relative developed markets, and we find significant value in currencies and equity markets across our investment opportunity set. Our investment universe, in absolute and relative terms, remains under-researched and we believe this should enable compelling alpha opportunities. Sources: 1BlackRock as at 31 July 2024 2MSCI as at 31 July 2024 15 August 2024 ENDS Latest information is available by typing www.blackrock.com/uk/brfi (https://clicktime.symantec.com/38FDgnvAp9QvqKp56MgT4k7 7Vc?u=http%3A%2F%2Fwww.blackrock.com%2Fuk%2Fbrfi) 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. This information was brought to you by Cision http://news.cision.com The following files are available for download: https://mb.cision.com/Main/22403/4024951/2947322.pdf Release

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