BlackRock Frontiers Investment Trust Plc - Portfolio Update

BLACKROCK FRONTIERS INVESTMENT TRUST PLC (LEI: 5493003K5E043LHLO706) All information is at 31 August 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 -1.0 -0.8 5.4 33.0 36.6 143.4 Net asset value -1.0 2.0 5.8 32.6 45.5 168.6 Benchmark (NR)** 0.9 4.4 5.1 13.9 9.2 89.0 MSCI Frontiers Index (NR) -0.3 0.6 6.1 -3.4 6.5 80.2 MSCI Emerging Markets Index (NR) -0.7 2.6 10.9 -4.6 17.1 64.5 US Dollars: Share price 1.3 2.4 9.3 27.1 47.5 106.2 Net asset value 1.3 5.3 9.7 26.7 57.1 127.2 Benchmark (NR)** 3.2 7.7 9.0 8.7 17.8 60.5 MSCI Frontiers Index (NR) 2.0 3.9 10.1 -7.8 14.9 51.9 MSCI Emerging Markets Index (NR) 1.6 5.9 15.1 -8.9 26.3 38.7 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: 203.94c Net asset value - cum income: 209.30c Sterling: Net asset value - capital only: 155.17p Net asset value - cum income: 159.25p Share price: 145.50p Total assets (including income): £301.5m 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 46.5 Indonesia 15.5 Industrials 11.8 Saudi Arabia 15.4 Real Estate 11.0 Philippines 9.2 Materials 10.5 United Arab 8.5 Emirates Consumer 8.2 Kazakhstan 7.9 Staples Communication 8.0 Poland 5.8 Services Energy 5.2 Hungary 5.6 Consumer 5.1 Thailand 5.4 Discretionary Information 4.3 Turkey 4.8 Technology Health Care 1.5 Pakistan 3.5 Utilities 0.2 Kenya 3.4 ----- Bangladesh 3.1 112.3 Georgia 2.5 ----- Qatar 2.5 Short -3.6 Vietnam 2.5 Positions Greece 2.4 Singapore 2.3 Czech 1.9 Republic Multi 1.9 -International Egypt 1.8 Malaysia 1.7 Chile 1.6 Colombia 1.5 Cambodia 0.8 Romania 0.8 ----- 112.3 ----- Short -3.6 positions ---- *reflects gross market exposure from contracts for difference (CFDs). Market Exposure 30.09 31.10 30.11 31.12 31.01 29.02 31.03 30.04 31.05 30.06 31.07 31.08 2023 2023 2023 2023 2024 2024 2024 2024 2024 2024 2024 2024     %     %     %     %     %     %     %     %     %     % %     % Long 114.9 118.8 113.4 116.6 119.5 121.4 120.4 120.8 118.1 118.4 116.1 112.3 Short 3.0 3.1 4.6 4.7 3.6 3.5 2.7 2.3 2.4 2.9 3.5 3.6 Gross 117.9 121.9 118.0 121.3 123.1 124.9 123.1 123.1 120.5 121.3 119.6 115.9 Net 111.9 115.7 108.8 111.9 115.9 117.9 117.7 118.5 115.7 115.5 112.6 108.7 Ten Largest Investments Company Country of Risk Gross market value as a % of net assets Bank Central Indonesia 5.0 Asia Emaar United Arab Emirates 4.4 Properties Saudi Saudi Arabia 4.1 National Bank Kaspi.Kz JCS Kazakhstan 3.9 Ayala Land Philippines 3.2 PT Bank Indonesia 3.1 Negara Indonesia CP ALL Thailand 2.8 Etihad Saudi Arabia 2.6 Etisalat OTP Bank Hungary 2.6 PZU Poland 2.6 Commenting on the markets, Sam Vecht, Emily Fletcher and Sudaif Niaz, representing the Investment Manager noted: The Company's NAV rose by 1.3% in August, underperforming its benchmark the MSCI Emerging ex Selected Countries + Frontier Markets + Saudi Arabia Index ("Benchmark Index") which returned +3.2%. For reference, the MSCI Emerging Markets Index was up 1.6% while the MSCI Frontier Markets Index gained 2.0% over the same period. All performance figures are on a US Dollar basis with net income reinvested.1 Emerging markets posted modest gains of 1.6%, continuing to underperform Developed Markets (+2.5%). The month began with a sharp equity sell-off driven by two macro events: a weaker-than-expected US labour market report, raising recession fears, and a BOJ (Bank of Japan) rate hike that led to a sharp appreciation of the JPY and a carry trade unwind. This resulted in the largest intraday spike in the VIX (volatility index) since 1990. Despite these initial shocks, Emerging Markets recovered as US recession fears eased with better growth and inflation data. A declining US dollar provided a tailwind for Emerging Markets. ASEAN (Association of Southeast Asian Nations) markets were notable outperformers in August. 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 Ayala Land (+24.4%), the Philippine's based property developer. The stock price rose as a result of a beat on Q2 presales. Another positive contributor was our holding in Sea Ltd (+19.2%), a Singapore based global consumer internet company, which rose on the back of strong Q2 results. Bank Negara (+13.3), the Indonesian bank, also performed well. Another bank that did well was Metrobank (+11.2%) in Malaysia. On the flipside, Hungarian low-cost carrier Wizz Air (-28.6%) extended its losses from July and was the largest detractor for the second month in a row. Turkish commercial bank Türkiye Bankas (-14.3%) also fell alongside the Turkish market. Frontken (-10.3%), a Malaysia-based company specialising in services provided to the semiconductor industry, was another detractor after delivering disappointing Q2 results from weakness in their energy subsidiary in Malaysia. We continue to like the stock and believe the confluence of one-off negatives in Q2 will likely mark the low point in earnings. We made few changes to the portfolio in August. We increased our exposure to Bangladesh through initiating a position in commercial bank BRAC Bank, reflecting our positive macro view on the country post the government change. We also added to our holding in Astra International, increasing our exposure to this Indonesian economy proxy. We believe threat from new Chinese auto OEMs (original equipment manufacturer) is well priced into the stock's historically low valuation. Elsewhere, we reduced our exposure to Hungarian oil and gas company, MOL. The stock has been a strong contributor to the fund over the last couple of years on strong dividends. We also exited National Bank of Greece as share price reached our fair value estimate. 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 August 2024 24 September 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/22403/4040727/3017220.pdf Release

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