31st May 2024 10:31
(Alliance News) - Blackrock Frontiers Investment Trust PLC on Friday said net asset value rose in its latest half year, although the last two months have seen a "short period of light underperformance".
The London-based investment trust, which backs companies in 'frontier markets', said NAV per share was 209.88 pence as of March 31, rising from 178.61p at the same time one year prior and from 192.05p at its year-end on September 30.
In London on Friday morning, shares in Blackrock Frontiers traded 0.7% lower at 146.04p each.
Blackrock Frontiers reported a positive 12% NAV total return for the six months to March 31, reduced from positive 14.5% the previous year.
However this surpassed its benchmark - a composite of the MSCI Emerging Markets ex Selected Countries, the MSCI Frontier Markets and the MSCI Saudi Arabia indexes - which delivered a positive 8.6% return after the prior year's positive 4.5%.
"The portfolio managers' unique strategy and investment process have again enabled the company to perform strongly during the period, comfortably beating our benchmark index," commented Chair Katrina Hart. "In fact, the company has outperformed its benchmark in five of the past six six-month periods."
The strong performance, Hart added, was set against "an improving macroeconomic backdrop for many countries across the frontier markets, often arising from the implementation of more orthodox fiscal policy, relatively low interest rates and greater political stability, together providing a fertile environment for growth".
Blackrock Frontiers declared an interim dividend of 3.50 US cents per share for the first half, up from 3.10 cents a year before.
"This higher interim dividend is reflective of an increase in the amount of revenue generated, which the portfolio managers believe is sustainable given that it is broadly representative of the underlying earnings growth in the companies held within the portfolio," Hart added.
On the minus side, the chair noted that since the half year's end up to Tuesday the trust's NAV per share has decreased by 2.4%, underperforming against the benchmark's 1.8% decrease.
However, she countered: "Notwithstanding this short period of light underperformance, the board shares our portfolio managers' excitement around the breadth of opportunities in what remains a dynamic investment universe...As investors, they are emboldened by the opportunity set, noting the improving fundamentals of several countries to which we have previously had a material exposure, such as Egypt, Kenya, Nigeria, Pakistan and Sri Lanka."
By Emma Curzon, Alliance News reporter
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