6th Dec 2019 11:32
(Alliance News) - BlackRock Frontiers Investment Trust PLC said Friday it underperformed its benchmark during financial 2019 due to a continuation of volatility in frontier and emerging markets.
At September 30, BlackRock Frontiers' net asset value per share stood at 166.54 US cents compared to 177.70 cents a year before, a 1.5% drop. In sterling terms, the trust's NAV per share decreased to 135.15 pence from 136.26p.
BlackRock Frontiers' net assets increased to USD400.8 million from USD365.5 million last year. In sterling terms, net assets were GBP325.3 million compared to GBP273.4 million a year ago.
The company said its NAV total return for the period was negative 1.5% behind its benchmark, which was flat.
On April 1, 2018, the company changed its benchmark index changed to MSCI Emerging Markets ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index, aptly described as "Frontiers Universe" . Prior to the change, the benchmark index was MSCI Frontier Markets Index.
BlackRock Frontiers' declared a final dividend of 4.75 cents per ordinary share, up from 4.40 cents a year for the year ended September 30.
The company said frontier and emerging market volatility has been a feature during the period, with fears of slowing global growth and US-China trade conflict negatively impacting both frontier and developed markets.
Country-specific political uncertainty also negatively impacted the performance of some of the portfolio's larger exposures during the period, most notably in Argentina where the outcome of the Presidential elections saw the local market fall substantially, the company said.
"Whilst expectations for global growth look increasingly challenged, Frontier Markets continue to offer exposure to countries that we believe have high structural growth," the company said.
BlackRock Frontiers shares were 1.5% up in London at 130.87 pence each on Friday.
By Loreta Juodagalvyte; [email protected]
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