29th May 2025 11:46
(Alliance News) - BlackRock Frontiers Investment Trust PLC on Thursday said it outperformed its benchmark and raised its half-year interim dividend, as it maintained a positive view on frontier markets amid global uncertainty.
The London-based investment trust investing in companies in frontier markets said its net asset value per share total return in the six months to March 31 was 4.2% in sterling terms, outpacing a 1.3% return from its benchmark index, the MSCI Emerging Markets ex Selected Countries plus MSCI Frontier Markets Index.
In US dollar terms, the NAV return was 0.3%, ahead of the benchmark's negative 2.5%.
BlackRock Frontiers declared an interim dividend of 3.65 US cents per share, up 4.3% from 3.50 cents a year before. The trust cited a rise in dividend income received in April, which lifted seven-month revenue to 4.99 cents per share, up from 4.03 cents.
Chair Katrina Hart said the trust has beaten its benchmark in five of the past six half-year periods and continues to benefit from uncorrelated ideas across under-researched and undervalued markets.
"At the time of writing the company's yield is 4.6%, the highest in our AIC Global Emerging Markets peer group," Chair Katrina Hart said.
The trust's share price total return was 0.5% in dollar terms and 4.4% in sterling.
Its NAV per share fell to 209.07 cents at March 31 from 214.57 cents at September 30. The share price dipped to 189.74 cents from 194.50 cents. In sterling, the NAV rose to 161.98 pence from 159.96p.
Top-performing holdings included Lucky Cement Ltd in Pakistan, up 68%, and DigiPlus Interactive Corp in the Philippines, up 79%.
Performance was held back by exposure to Indonesia and the Philippines, particularly casino operator Bloomberry Resorts Corp, which fell 64%. The trust said it maintained conviction in these positions.
BlackRock Frontiers increased its weighting in Turkey through a new stake in Akbank TAS, and rotated bank holdings in Indonesia. The portfolio's net gearing rose to around 14% at March 31 from 4.0% six months earlier.
Looking ahead, BlackRock Frontiers said its investment universe of frontier and small emerging markets remains compelling, particularly given low valuations and localised drivers amid geopolitical tension.
"We remain positive on the outlook for small emerging and frontier markets compared to developed markets," portfolio managers Sam Vecht and Emily Fletcher said.
Shares in the trust were down 0.1% at 157.37 pence in London on Thursday morning.
By Eva Castanedo, Alliance News reporter
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