Blackrock Frontiers Investment Trust PLC on Thursday announced a new chair-elect as it reported an optimistic outlook amid a net asset value total return that soundly outperformed its benchmark.
The London-based investment trust investing in companies in frontier markets said net asset value per share rose 20% to 192.05 US cents as at September 30, from 159.86 cents a year prior.
NAV total return was 25% for the financial year ended September 30, vastly outperforming its benchmark, which had a total return of 5.0%. The company clarifies that its benchmark index is ‘MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index + MSCI Saudi Arabia Index’. A year ago, the firm’s NAV total return had been negative 11% compared to negative 7.3% for its index.
The company recommended a total financial 2023 dividend of 8.00 cents, up 14% from 7.00 cents a year prior.
Looking ahead, Blackrock Frontiers positively noted that ‘many of the countries in our frontier market universe are in the growth phase of their economies. Moreover, a significant proportion of frontier markets are further along the curve in their monetary tightening cycle, having raised interest rates earlier, and in many cases have now already cut interest rates. Our portfolio managers believe that this represents a more stable and benign environment for growth. Moreover, this lack of correlation with developed market economies remains one of the company’s key attractions for investors seeking portfolio diversification.’
Meanwhile, the company appointed Katrina Hart as chair designate, set to take office at the end of the firm’s next annual general meeting in February.
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