Fact sheet: Blackrock Frontiers IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
EMERGING MARKETS
Sector
IT Global Emerging Markets
Fund type
Investment Trust
Primary aim
GROWTH
Why Money Observer Rates Blackrock Frontiers IT

Rated Fund 2013, 2015-2018. Offers diversification benefits and attractive valuations

This trust won Money Observer's Best Emerging Markets Trust award for three consecutive years in 2014, 2015 and 2016. Frontier markets have proved more resilient than might be expected, but even at the best of times this trust is not for the faint-hearted. Investing in companies listed or operating in countries such as Argentina, Kuwait, Vietnam and Romania is only suitable for those with a good appetite for risk.

The trust's managers, Sam Vecht and Emily Fletcher, believe frontier markets are very attractive portfolio diversifiers thanks to the low correlation between frontier markets and developed and emerging markets.

Vecht attributes the trust's relative success to three factors. First is a willingness not to adhere to benchmark country weightings. Second is a combination of extensive company research and macroeconomic analysis. Third is the importance of the trust's closed-ended structure, which gives the managers the time needed to assemble positions in companies with high growth potential but very illiquid share registers.

Vecht remains optimistic about the future and points out that frontier markets continue to exhibit strong economic growth and low government debt levels, and represent an opportunity to invest in companies with strong cash flow and high dividend yields on some of the lowest valuations in the world. The trust has a yield of 1.5 per cent and pays dividends half-yearly.

Ben Willis, head of research at Whitechurch Securities, rates the management team, but says investing in these markets is a ムlong-term story', made more so by the fact the trust trades on a premium to net assets, which was around 5 per cent at the end of 2017. We would recommend timing a purchase at or below this level.

3 Year Performance
Fund Performance57.8%
Average of Rated Funds Group35.4%
Sector Performance24.1%
Fund information
Fund name
BlackRock Frontiers Investment Trust
Fund manager company
BlackRock Investment Managemen
Fund type
Investment Trust
Fund managers
  • Sam Vechtsince 17/12/2010
  • Emily Fletchersince 01/04/2013
Accolades
Winner - Best Emerging Markets Trust
Fund objective
The Company’s investment objective is to achieve long term capital growth from investment in companies operating in Frontier Markets or whose stocks are listed on the stock markets of such countries.
Benchmark
  • MSCI Frontier Index
Investment style
None
Investment method
Shares
Quick stats
1 Year return
11.7%
1 Year rank in sector
3/10
Sector
IT Global Emerging Markets
Yield
3.2%
Fund size
£314m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
113
Mid price
161
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
154.9
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+3.94
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
100
Top in this sector
Fund name1 Year
JPM Emg Mkts IT plc14.1%
AbrEmrMrInvCmpLtd13.9%
BlkRck Frontiers Inv Trst11.7%
Templeton Emg Mkts11.1%
Genesis Emerging Mkt9.8%
...more in IT Global Emerging Markets

Performance snapshot

Holdings snapshot

  • Argentina17.3%
    Kuwait12.2%
    Vietnam9.9%
    Nigeria7.7%
    Romania7.2%
  • Financials38.7%
    Consumer Staples12.9%
    Health Care8.7%
    Materials7.5%
    Telecommunications Utilities7.5%
  • American Emerging Equities19.2%
    African Equity14.8%
    Asia Pacific Emerging Equities13.1%
    Kuwaiti Equities12.2%
    European Emerging Equities11%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-2.1%-3.6%5.2%11.7%57.8%86.6%
Sector-3.5%-6.2%-1.7%6.5%24.1%24.8%
Rank within sector3 / 112 / 112 / 113 / 101 / 101 / 9
Quartile2nd1st1st2nd1st1st
Calendar performance
 YTD - 20182017201620152014
Fund1.6%28.8%31.4%-3.3%-1.9%
Sector-4.5%20.8%26.7%-10.4%1.6%
Rank within sector1 / 113 / 104 / 102 / 108 / 9
Quartile1st2nd2nd1st4th
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
10.91
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.76
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.93
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
14.97
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
11.82
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.69
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.4
Price movement
52 week high168.5
52 week low144
Current bid price160
Current offer price162
Current mid price161
Region
1Argentina17.3%
2Kuwait12.2%
3Vietnam9.9%
4Nigeria7.7%
5Romania7.2%
6Egypt6.3%
7Saudi Arabia6.1%
8Kazakhstan4.3%
9Morocco4.2%
Industry sector
1Financials38.7%
2Consumer Staples12.9%
3Health Care8.7%
4Materials7.5%
5Telecommunications Utilities7.5%
6Energy6.8%
7Consumer Discretionary5.8%
8Industrials5.8%
9Real Estate5.8%
Asset type
1American Emerging Equities19.2%
2African Equity14.8%
3Asia Pacific Emerging Equities13.1%
4Kuwaiti Equities12.2%
5European Emerging Equities11%
6Egyptian Equity6.3%
7Saudi Arabian Equities6.1%
8Asia Pacific Equities5.4%
9Kazakhstani Equities4.3%
Individual holdings
1NATIONAL BANK OF KUWAIT4.3%
2YPF SA4%
3HALYK SAVINGS BANK OF KAZAKHSTN JSC3.5%
4ZENITH BANK3.3%
5BANCO MACRO S.A.3.2%
6MHP SE3.2%
7United Bank for Africa PLC ORD3%
8EQUITY BANK2.9%
9MOBILE TELECOMMUNICATIONS2.9%
Management
Fund manager group
BlackRock
Fund manager company
BlackRock Investment Managemen
Fund type
Investment Trust
Fund objective
The Company’s investment objective is to achieve long term capital growth from investment in companies operating in Frontier Markets or whose stocks are listed on the stock markets of such countries.
Benchmark
  • MSCI Frontier Index
Investment style
None
Investment method
Shares
Fund managers
NameSinceBiography
Sam Vecht17/12/2010Sam Vecht is co-manager of BlackRock Emerging Europe plc, and is co-head of BlackRock’s Global Emerging Markets Team in the Fundamental Equity Division of BlackRock's Alpha Strategies Group. He is responsible for managing long-only and long/short portfolios in both Emerging and Frontier markets. He is also co-manager of the BlackRock Greater Europe Investment Trust plc and the BlackRock Frontiers Investment Trust plc. Sam joined BlackRock in 2000 in the Global Emerging Markets Team. Sam has a degree in international relations and history.
Emily Fletcher01/04/2013Emily Fletcher is co-manager of the BlackRock Frontiers Investment Trust plc, and is a member of BlackRock's Emerging Markets Specialist Team, within the Fundamental Equity division of the Alpha Strategies Group, specialising in African and Frontier markets. Emily has degrees in experimental and theoretical physics.
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
BlackRock Frontiers Investment Trust
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price152.71
CurrencyGBX
Price updated17/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJOM
Data provided by

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