BlackRock Frontiers Investment Trust PLC Reports Performance and Portfolio Update as of December 2023

The BlackRock Frontiers Investment Trust PLC has issued a performance and portfolio update for the end of December 2023, based on unaudited information. This period witnessed vigorous activity and varied performance across the investment spectrum.

Performance Metrics

In terms of performance metrics, the Trust's share price and net asset value (NAV) in Sterling noted changes of 2.1% and 4.3% over one month, 15.7% and 15.9% over one year, and noteworthy growth since launch with 128.6% and 158.2% respectively. Similarly, US Dollar figures also reflected positive dynamics.

Market Movements and Valuations

At month's end, the NAV was recorded at 203.47 cents (cum income) in US Dollars, and 159.60 pence in Sterling, with a share price at 143.00 pence. The Trust's total assets reached £302.2 million, and a discount to cum-income NAV of 10.4% was noted. Geared to maintain a gross asset percentage range of 0-20%, the company had no gearing at the close of the month.

Sector and Country Distributions

Focusing on the Trust's market allocations, Financials, Energy, and Industrials sectors led, representing significant percentages of net assets, while Saudi Arabia, Indonesia, and the UAE topped the country exposures. The Trust's portfolio includes short positions, which in turn, constituted a reduction in gross market value.

Major Holdings

The report also highlights the ten largest investments which include prominent firms like Saudi National Bank, Bank Central Asia, and Emaar Properties, among others. These investments span various countries, reflecting the Trust's diversified approach.

Management Commentary

The Investment Manager provided insights into market developments in December, citing improved performance in Latin American markets and positive stock selection outcomes. Despite few adjustments to the portfolio, strategic moves were made with a focus on companies like Polish clothing manufacturer LPP and Hungarian oil and gas company MOL.

The Management also shared perspectives on the broader economic landscape. The cautious note on global growth prospects, high interest rates, and the economic recuperation of frontier and smaller emerging markets was mentioned. With an expectation of compelling alpha opportunities arising from an under-researched investment universe, the outlook expressed a cautious optimism.

BlackRock, Investment, Performance