BLACKROCK
FRONTIERS INVESTMENT TRUST PLC
LEI:
5493003K5E043LHLO706 - Article 5 Transparency Directive, DTR
4.2
HALF YEARLY
FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31
MARCH 2020
PERFORMANCE RECORD
The Company’s financial statements are presented in US Dollars.
The Company’s shares are listed on the London Stock Exchange and
quoted in UK Pounds sterling. The sterling amounts shown below are
presented for convenience. The difference in performance measured
in US Dollars and UK Pounds sterling reflects the change in the
value of the Pound versus the US Dollar over the period.
FINANCIAL HIGHLIGHTS
|
As at 31
March
2020 |
As at 30
September
2019 |
US Dollar |
|
|
Net assets
(US$’000)1 |
255,277 |
400,820 |
Net asset value per ordinary share
(US cents) |
105.56 |
166.54 |
Ordinary share price
(mid-market)2 (US cents) |
103.17 |
162.66 |
|
------------- |
------------- |
Sterling |
|
|
Net assets
(£’000)1,2 |
205,877 |
325,262 |
Net asset value per ordinary
share2 (pence) |
85.13 |
135.15 |
Ordinary share price (mid-market)
(pence) |
83.20 |
132.00 |
|
------------- |
------------- |
Discount4 |
(2.3%) |
(2.3%) |
|
======== |
======== |
Performance |
Six months
ended
31 March 2020
% |
Year ended
30 September
2019
% |
Since
inception3
% |
US Dollar |
|
|
|
Net asset value per share (with
dividends reinvested)4 |
-34.8 |
-1.5 |
-4.5 |
Benchmark Index (NR)5,
6 |
-27.8 |
+0.0 |
-1.9 |
MSCI Frontier Markets Index
(NR)5, 6 |
-21.7 |
+5.9 |
+1.5 |
MSCI Emerging Markets Index
(NR)6 |
-14.6 |
-2.0 |
-4.4 |
Ordinary share price (with dividends
reinvested)4 |
-34.9 |
-6.3 |
-8.4 |
|
------------- |
------------- |
------------- |
Sterling |
|
|
|
Net asset value per share (with
dividends reinvested)4 |
-35.2 |
+4.2 |
+19.8 |
Benchmark Index (NR)5,
6 |
-28.3 |
+5.8 |
+22.4 |
MSCI Frontier Markets Index
(NR)5, 6 |
-22.2 |
+12.0 |
+27.6 |
MSCI Emerging Markets Index
(NR)6 |
-15.1 |
+3.7 |
+20.2 |
Ordinary share price (with dividends
reinvested)4 |
-35.3 |
-0.9 |
+14.7 |
|
======== |
======== |
======== |
1 The change in net assets
reflects shares issued in the period, dividends paid and market
movements.
2 Based on an exchange rate
of US$1.2400 to £1 at 31 March 2020 and US$1.2323 to £1 at 30
September 2019.
3 The Company was
incorporated on 15 October 2010 and
its shares were admitted to trading on the London Stock Exchange on
17 December 2010.
4 Alternative Performance
Measures, see Glossary in the half yearly report and financial
statements.
5 With effect from
1 April 2018, the Benchmark Index
changed to the MSCI Emerging Markets Index ex Selected Countries +
MSCI Frontier Markets Index. Prior to 1
April 2018, the Benchmark Index was the MSCI Frontier
Markets Index. The performance returns of the Benchmark Index
during the prior year and since inception have been blended to
reflect this change.
6 Net return (NR) indices
calculate the reinvestment of dividends net of withholding
taxes.
Sources: BlackRock and Datastream.
CHAIRMAN’S STATEMENT FOR THE SIX
MONTHS TO 31 MARCH 2020
Dear Shareholder,
I am pleased to present the Company’s half-yearly financial report
for the six months to 31 March 2020,
albeit a difficult period for investors in equity markets
generally.
PERIOD HIGHLIGHTS
- Declared interim dividend of 2.75 US cents per share;
- Yield of 6.7% (based on share price at 26 May 2020,
interim dividend for 2020 and final dividend for 2019);
- NAV total return of -34.8% (in US Dollar terms with dividends
reinvested);
- Share price total return of -34.9% (in US Dollar terms with
dividends reinvested); and
- 1,150,000 new ordinary shares issued via tap issuance.
PERFORMANCE AND OVERVIEW
During the six months to 31 March
2020, the Company saw a NAV total return in US Dollars of
-34.8%, while its Benchmark Index returned -27.8%. The Company’s
share price total return was -34.9%. By comparison, the Company’s
previous Benchmark Index, the MSCI Frontier Markets Index, returned
-21.7% and the MSCI Emerging Markets Index returned -14.6%.
It is of course disappointing to report to shareholders that the
Company underperformed the Benchmark Index during the period. This
relative underperformance can be attributed to a number of factors
and your investment managers provide a detailed description of the
key contributors and detractors to performance during the period,
portfolio activity and their views on the outlook for the second
half of the year in their report which follows.
I am pleased to be able to report that subsequent to the period
end and as at 26 of May 2020,
the net asset value per share of the Company has increased by 12.9%
from 105.56 cents per share
to 119.20 cents per share and the Company’s share price has
increased by 8.8% from 103.17
cents per share to 112.22 cents per share as at 26
May 2020. The Company’s Benchmark Index has increased by 11.2%.
REVENUE RETURN AND DIVIDENDS
The Company’s revenue return per share for the six months ended
31 March 2020 amounted to 1.77 US
cents (2019: 3.19 US cents). The Board recognises that shareholders
value the dividends paid by the Company, but is also cognisant that
there has been a reduction in dividends received from the companies
in the portfolio due to the ongoing COVID-19 outbreak.
Nonetheless, the Board is pleased to declare an interim dividend
of 2.75 US cents per share (2019: 3.00 US cents per share) payable
on 26 June 2020 to shareholders on
the Company’s register on 5 June
2020. The shares will go ex-dividend on 4 June 2020. The final dividend of 4.75 US cents
per share for the year ended 30 September
2019 was declared on 6 December
2019 and paid to shareholders on 7
February 2020. Whether the Company will pay a similar final
dividend to last year will depend on the state of the revenue
account in the second half of the year at which time the Board will
have greater visibility of the total revenue received in the
financial year. The Board may also consider the use of brought
forward revenue reserve to support the full year dividend if deemed
appropriate to do so.
SHARE CAPITAL
The Directors recognise the importance to investors of ensuring
that the Company’s share price is as close to its underlying NAV as
possible. Accordingly, the Directors monitor the share price
closely and will consider the issue of ordinary shares at a premium
or repurchase at a discount to help balance demand and supply in
the market. For the period under review, the Company’s ordinary
shares traded at an average discount to NAV of 0.6%, and were
trading at a discount of 2.3% on a cum-income basis at 31 March 2020. The Directors currently have the
authority to buy back shares in the market equivalent to 14.99% of
the Company’s issued share capital and also to issue new shares
equivalent to 10% of the Company’s issued share capital (excluding
any shares held in treasury).
In response to demand for its shares the Company issued
1,150,000 new ordinary shares during the period for a gross total
consideration of US$1,998,000. The
new shares were issued at a premium to the prevailing NAV and were
therefore accretive to the Company’s NAV per share. The Board
believes that the issue of new shares by the Company, when demand
cannot be met in the market, helps to regulate the share price
premium to NAV, and that the economies of scale achieved through
enlarging the Company are beneficial to shareholders. Since the
period end and up to the date of this report, the Company has
issued no further new ordinary shares. No shares were bought back
in the period under review or up to the date of this report.
PERIODIC OPPORTUNITY FOR THE RETURN OF
CAPITAL
When the Company was launched in late 2010, the Board made a
commitment that before the Company’s fifth AGM and at five yearly
intervals thereafter, it would formulate and submit to shareholders
proposals to provide shareholders with an opportunity to realise
the value of their ordinary shares at the applicable NAV per
ordinary share less applicable costs.
The next such opportunity will take place in early 2021.
Accordingly, the Board will formulate proposals in late 2020, which
may, as they did in 2016, take the form of a tender offer. Further
information will be provided in this year’s annual report which it
is anticipated will be published in December
2020. In the interim, I would like to take this opportunity
to thank shareholders for their ongoing support of the Company.
OUTLOOK
The recent outbreak of COVID-19 has negatively impacted global
markets and has resulted in widespread quarantine, disruption to
supply chains and an unprecedented and almost immediate cessation
of economic activity. The health crises and the economic
consequences of the outbreak may also exacerbate pre-existing
political, social and economic risks in the markets in which this
Company invests. Whilst it is impossible at this stage to estimate
the full extent or the impact – both human and financial – or
indeed the duration of the global economic downturn caused by the
COVID-19 pandemic, it is also important to reflect on the scale and
speed of the current market downturn relative to prior market
falls.
However, unlike open-ended counterparts, closed-end funds are
not obliged to sell down portfolio holdings at low valuations to
meet liquidity requirements for redemptions. During times of
elevated volatility and market stress, the ability of a closed-end
fund structure to remain invested for the long-term enables the
portfolio managers to adhere to disciplined fundamental analysis
from a bottom-up perspective and be ready to respond to
dislocations in the market as opportunities present themselves. The
extreme volatility seen in markets as a result of the current fears
has created inevitable opportunities to purchase some shares at
extremely discounted valuations; our portfolio manager’s team
remain attuned to the investment opportunities that this may
present. The Board has also received regular updates from
BlackRock to confirm that the Company’s operations are not affected
and that established business continuity plans are effective.
Frontier markets will continue to be driven, to a significant
extent, by internal factors and by domestic investor flows and this
continues to offer significant diversification benefits in extreme
times. Our portfolio management team’s focus on long-term capital
growth provides us with confidence that the holdings in the
Company’s portfolio are well placed to weather the storm.
The current bearish global sentiment
towards the frontier and emerging markets has presented
opportunities for our portfolio managers. To date, many of the
countries which make up our frontier universe have been less
affected by the COVID-19 crisis than their developed market
counterparts and therefore your portfolio managers are cautiously
optimistic on the outlook. Many of these countries have relatively
low levels of foreign debt, higher yields, superior growth
prospects, and are trading at a significant
discount relative to the developed markets. In addition, our
portfolio managers see a distinct value opportunity with the
price-to-book ratio of our portfolio trading around its lowest
level since launch, at around 1x.
Therefore, your Board believes that the
Company’s frontier market universe continues to represent a
compelling proposition for the medium to long-term investor. The
Board remains confident that, notwithstanding the challenges in
near term, your portfolio managers can resume their track record of
outperformance, having extensive resources deployed to these
inefficient markets and the local market knowledge required to
capitalise on the opportunities now available in this dynamic asset
class.
AUDLEY TWISTON-DAVIES
Chairman
28 May 2020
INVESTMENT MANAGER’S REPORT
PORTFOLIO & MARKET COMMENTARY
In the six months to 31 March 2020,
the Company’s NAV returned -34.8%1 versus its Benchmark
Index which returned -27.8%2. Over this time period, the
MSCI Emerging Markets Index declined -14.6% and the MSCI
Frontier Markets Index was down -21.7% (in US Dollar terms with
dividends reinvested).
The six-month period has seen a marked change in sentiment and
risk-preference. Markets were increasingly bullish going into
year-end 2019 as liquidity conditions, led by further central bank
easing, improved. At the same time, US-China trade tensions abated
following the announcement of a Phase 1 deal, resulting in a
risk-on environment that helped Emerging Markets maintain strong
flow momentum into January 2020.
Unfortunately, that exuberance was short lived as coronavirus
headlines took hold and fears of the virus spreading outside
China shocked markets. In the year
to date, governments have struggled to accurately predict the pace
and breadth of the virus spread, leading to travel bans and
lockdowns across the world. Globally, markets have sold-off, as
uncertainty surrounding the length of impact has dragged down
growth estimates and it continues to weigh on investor
sentiment.
More recently, the lack of co-ordinated action from the
Organisation of the Petroleum Exporting Countries (‘OPEC’),
combined with very weak global demand, has resulted in Brent Crude
trading at $22.70/barrel as of the
end of March 2020, putting further
pressure on global growth. Whilst much about the nature of the
virus remains unknown, the extent of global liquidity provision,
coordinated fiscal stimulus and early signs of a Chinese recovery
should somewhat temper investor concerns. Frontier markets have
entered this crisis in a better situation than before the Global
Financial Crisis (‘GFC’) given lower levels of external debt and
they are at an earlier point in their economic cycles and hence
haven’t seen excessive lending in recent years.
Performance commentary over the period is somewhat of a tale of
two epochs, before and after coronavirus. “BC” performance was led
by Kazakhstan, particularly Halyk
Bank, which performed strongly after reporting better than expected
results and Kaz Minerals, a low cost copper producer. We trimmed
Halyk Bank and fully exited our position in Kaz Minerals as prices
rose during the quarter, which substantially protected performance
through the market sell off. In March, we repurchased Kaz Minerals
around 40% lower than our December exit price. Uranium producer,
Kazatomprom (-5.3%), also performed well throughout the period as
its business is relatively insulated from pandemic impact – nuclear
power plants are considered baseload plants and have stable fuel
demands, albeit with low turnover. Furthermore, since the Company’s
revenues are US Dollar based, the recent depreciation in the
Kazakhstani Tenge has helped at the margin.
Our position in Equity Group, Kenya was among the more resilient stocks in
the universe as news that the government would be lifting interest
rate caps was well received by the market. Our holdings in
Pakistan have also been relative
outperformers as the country has seen a substantial narrowing of
its trade deficit over the last year, reducing pressure on its
currency. MCB Bank and utility, Hub Power fell only 17% and 9%
respectively. Elsewhere, our underweights in Chile (-40%), where demonstrations and social
unrest have escalated through year-end putting pressure on both the
foreign currency and equity markets, and Colombia (-43%), which fell precipitously
following the oil price fall, benefited relative returns over the
period.
Stocks in Indonesia performed
especially badly during the period, with the market falling 35%.
Smaller cap stocks in Indonesia
were hit even harder. Retailer Mitra Adiperkasa (MAPI) fell 60.0%
and mall operator Pakuwon Jati 59.7% over the time period. MAPI is
currently trading at its lowest price to book valuation since 2009,
a time when the balance sheet structure of the company was very
different and it had significant foreign currency debt outstanding.
As of the end of 2019, the company has net cash. Pakuwon Jati is
trading at its lowest price to book valuation since the Asian
Crisis (1997-99), a time when Net Debt/EBITDA for the company was
> 20x. As of the last reported set of results it was at 0.1x. We
think that there is significant upside for both positions. Since
March month end, MAPI has risen 50% and Pakuon Jati 32%.
Relative performance was also hurt by a significant underweight
position in Malaysia. As has
historically been the case, Malaysia performed defensively in the market
sell off, falling only 17% in the six months to March. We have
struggled to find attractive stocks to own in Malaysia over the last few years and even now,
Malaysia is one of the few markets
across all of emerging and frontier markets which is not screening
especially cheap relative to its history. As at the end of March
the Malaysian market was still trading at a marginal premium to its
historical price to book valuation .
In the UAE, a position in hospital operator NMC Health detracted
from returns after the stock declined sharply (-28%) following
allegations over its accounting practices. Having reviewed these
allegations, we decided to exit the position at a loss in December,
a good decision in hindsight as the company has since alleged that
the management team funnelled significant cash out of the business,
leaving it with very significant debts and the stock has delisted,
effectively valuing the equity at zero. Real Estate stocks Emaar
Properties (-52%) and Emaar Development (-47%) were also especially
hard hit.
Vietnam was also a country
where stocks sold off aggressively. Mobile World, the electronics
retailer, sold off 55% to end March. Whilst its electronics
business has been affected by COVID-19 shut downs, the grocery
chain, which the company launched a few years ago, has seen strong
growth with revenue up 156% for the first quarter of 2020, reaching
15% of total company revenue. Although the stock has bounced 39% in
April, we believe that on 9x consensus earnings for 2020, the
company still looks very attractively valued.
PORTFOLIO ACTIVITY
The Company continues to have large positions in Indonesia, Philippines, Kazakhstan, Egypt and Pakistan.
We added to the Philippines as
the macro backdrop looks increasingly positive. The country has
relatively strong underlying growth and should benefit from
improving credit trends. Furthermore, additional interest rate and
reserves requirement cuts should free up liquidity. We specifically
bulked up exposure in Bank of Philippines and tobacco name, LT Group. We
also initiated positions in resort operator Bloomberry Resorts, and
industrial conglomerate GT Capital.
We have increased positions in Pakistan. The current government has agreed a
deal with the International Monetary Fund which will see it commit
to reducing the fiscal deficit to sustainable levels. In addition,
current low oil prices are considerably positive for Pakistan which imports a significant portion
of its requirements.
Earlier in the period we exited our last positions in
Argentina on our belief that the
fiscal adjustment needed in 2020 would be politically hard to
achieve and it would be harder than the market was expecting for
Argentina to reach a deal with its
creditors. The increased budget pressures stemming from COVID-19
will push debt/GDP ratios even higher than these expectations.
We have exited the majority of our exposure in Nigeria, using the strength seen in February
to trim stocks. Watching the country’s foreign exchange reserve
holdings fall through the second half of 2019, we became
increasingly concerned about rising pressure on the Naira, which
has recently been exacerbated by falling oil prices.
We reduced positions in a number of oil stocks during the
period. We participated in the successful IPO of Saudi Aramco, but
exited after strong price performance and we reduced exposure to
Colombian national oil company, Ecopetrol following a period of
strength.
The Company started the half year with a net exposure of 106%
and we slowly increased exposure throughout the calendar year end
to reach 112% as at the end of January. We subsequently reduced
exposure through February and March, partly through the use of
targeted short positions to reach a low net exposure of around 96%
mid March. From there, we have then found a number of very
attractive stock positions to add into the portfolio. We bought
positions in Polish retailer, LPP, and Eastern European airline,
Wizz Air, two stocks which we think were excessively sold off and
which offered very attractive valuations. Net exposure as of the
end of March was 104%.
OUTLOOK
While it’s impossible to overstate how unprecedented the current
situation is, given that one third of the world’s population is
currently under lock down, we fully believe that the recent spikes
in volatility and bearish global sentiment have created pockets of
opportunity, which we are selectively taking advantage of. Broadly,
we believe that the world will get Covid-19 under control; with
virus cases peaking in Europe, we
believe support will be given to markets amid hope that other
countries can follow.
We have seen large scale fiscal and monetary responses from
governments and central banks across both developed and emerging
markets and expect this support to remain in place. Many
emerging and frontier countries have gone into this crisis in a
much better position than the 2008/9 crisis with lower debt levels,
especially foreign currency debt, and with economies at much
earlier stages of their economic cycles. This means that they
have seen little of the excesses in credit extension that
characterized 2007/8. Once we pass through the pain point of
tighter financial conditions, we believe that the better growth and
yield dynamics across these markets will shine through. In a world
that is looking ever more starved of growth, the ability to
generate endogenous growth as is found in countries such as
Philippines, Peru, Indonesia and Poland should deserve a
valuation premium, to the developed world, rather than the current
significant discount. We believe that countries which have low
levels of debt/GDP, with cheap currencies and are able to show
strong levels of growth should attract significant attention from
investors.
Valuations in frontier markets are at very attractive
levels. Trading at around 1x trailing price/book value, our
portfolio is as cheap as it has been since we launched the
trust. Our universe is trading at an almost 40% discount to
developed markets on a price/book basis. We are positioned in a
number of companies that we believe will demonstrate their
resilience and earnings power and we remain confident that these
qualities will come to be recognized by the market. In a world
searching for scarce growth and yield we believe strongly that
following an unrewarding period for many emerging and frontier
countries, that has lasted for more than dozen years,
prospects might well improve in the post-Covid-19 era of 2020.
SAM VECHT AND EMILY FLETCHER
BlackRock Investment Management (UK) Limited
28 May 2020
1 Source: BlackRock, as at
31 March 2020.
2 Source: MSCI. With effect
from 1 April 2018 the Benchmark Index
changed to MSCI Emerging Markets ex Selected Countries + MSCI
Frontier Markets Index + MSCI Saudi Arabia Index. Prior to
1 April 2018, the Benchmark Index was
MSCI Frontier Markets Index. The performance of the Benchmark Index
has been blended to reflect this change.
INTERIM MANAGEMENT REPORT AND
RESPONSIBILITY STATEMENT
The Chairman’s Statement and the Investment Manager’s Report
give details of the important events which have occurred during the
period and their impact on the financial statements.
PRINCIPAL RISKS AND UNCERTAINTIES
A detailed explanation of the risks relating to the Company can be
divided into various areas as follows:
· Investment
Performance Risk;
· Income/Dividend
Risk;
· Legal &
Regulatory Risk;
· Counterparty
Risk;
· Operational
Risk;
· Political Risk;
· Financial Risk;
and
· Market Risk.
The Board reported on the principal risks and uncertainties
faced by the Company in the Annual Report and Financial Statements
for the year ended 30 September 2019.
A detailed explanation can be found in the Strategic Report on
pages 36 to 38 and in note 18 on pages 91 to 105 of the Annual
Report and Financial Statements which are available on the website
maintained by BlackRock at: www.blackrock.co.uk/brfi.
An outbreak of an infectious respiratory illness caused by a
novel coronavirus known as COVID-19 was first detected in
China in December 2019 and has developed into a global
pandemic. This coronavirus has resulted in travel restrictions,
closed international borders, enhanced health screenings at ports
of entry and elsewhere, disruption of and delays in healthcare
service preparation and delivery, prolonged quarantines,
cancellations, supply chain disruptions, and lower consumer demand,
as well as general concern and uncertainty. The response to the
COVID-19 pandemic has adversely affected the economies of many
nations across the entire global economy, individual issuers and
capital markets, and could continue with extents that cannot
necessarily be foreseen. In addition, the impact of infectious
illnesses in emerging market countries may be greater due to
generally less established healthcare systems. Public health crises
caused by the COVID-19 outbreak may exacerbate other pre-existing
political, social and economic risks in certain countries or
globally. The duration of the COVID-19 outbreak and its effects
cannot be determined with certainty.
In the view of the Board, other than those noted above, there
have not been any material changes to the fundamental nature of
these risks since the previous report and these principal risks and
uncertainties, as summarised, are equally applicable to the
remaining six months of the financial year as they were to the six
months under review.
GOING CONCERN
The Board is mindful of the uncertainty surrounding the potential
duration of the COVID-19 pandemic and its impact on the global
economy, the Company’s assets and the potential for the level of
revenue derived from the portfolio to reduce versus the prior year.
The Directors, having considered the nature and liquidity of the
portfolio, the Company’s investment objective and the Company’s
projected income and expenditure, are satisfied that the Company
has adequate resources to continue in operational existence for the
foreseeable future and is financially sound. The Board believes
that the Company and its key third party service providers have in
place appropriate business continuity plans and will be able to
maintain service levels through the COVID-19 pandemic.
When the Company was launched in late 2010, the Board made a
commitment that before the Company’s fifth AGM and at five yearly
intervals thereafter, it would formulate and submit to shareholders
proposals to provide them with an opportunity to realise the value
of their ordinary shares at the applicable NAV per ordinary share
less applicable costs. The next opportunity at which such proposals
will be put to shareholders is in early 2021. The Board has
reviewed the potential impact that such an offer may have on the
Company’s going concern assessment, and in particular has
considered feedback received from the Company’s corporate broker
regarding shareholder demand for the Company’s shares and investor
appetite for the Company’s investment strategy. The corporate
broker remains in regular communication with shareholders and,
based on shareholder views at the time of publication of this
report, there is no indication that demand to exit will be at a
level which would jeopardise the ongoing viability of the
Company.
The Board has reviewed the potential impact that such an offer
may have on the Company’s going concern assessment, and in
particular has considered feedback received from the Company’s
broker, Winterflood Securities, regarding shareholder demand for
the Company’s shares and investor appetite for the Company’s
investment strategy. Winterflood remains in regular communication
with shareholders and, based on shareholder views at the time of
publication of this report, does not anticipate that demand to exit
will be at a level which would jeopardises the ongoing viability of
the Company.
Based on the above, the Board is satisfied that it is
appropriate to continue to adopt the going concern basis in
preparing the financial statements. The Company has a portfolio of
investments which are considered to be readily realisable and is
able to meet all of its liabilities from its assets and income
generated from these assets. Ongoing charges (excluding performance
fees, finance costs, direct transaction costs, custody transaction
charges, non-recurring charges and taxation) were approximately
1.39% of average net assets for the year ended 30 September 2019.
RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE AIFM AND
INVESTMENT MANAGER
BlackRock Fund Managers Limited (’BFM’) is the Company’s AIFM. BFM
has (with the Company’s consent) delegated certain portfolio and
risk management services, and other ancillary services to BlackRock
Investment Management (UK) Limited (’BIM (UK)’). Both BFM and
BIM (UK) are regarded as related
parties under the Listing Rules. Details of the management and
performance fees payable are set out in note 4 and note 14. The
related party transactions with the Directors are set out in note
13.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Disclosure Guidance and Transparency Rules (’DTR’) of the UK
Listing Authority require the Directors to confirm their
responsibilities in relation to the preparation and publication of
the Interim Management Report and Financial Statements.
The Directors confirm to the best of their knowledge that:
· the condensed set of
financial statements contained within the half yearly financial
report has been prepared in accordance with the International
Accounting Standard 34 – Interim Financial Reporting; and
· the interim
management report, together with the Chairman’s Statement and
Investment Manager’s Report, includes a fair review of the
information required by 4.2.7R and 4.2.8R of the Financial Conduct
Authority (’FCA’) Disclosure Guidance and Transparency Rules.
The half yearly financial report has been reviewed by the
Company’s Auditors.
The half yearly financial report was approved by the Board on
28 May 2020 and the above
responsibility statement was signed on its behalf by the
Chairman.
AUDLEY
TWISTON-DAVIES
For and on behalf of the Board
28 May 2020
TEN LARGEST INVESTMENTS1 AS
AT 31 MARCH 2020
United International Transport (Saudi Arabia, Industrials, 3.6% (2019:
2.2%))3 is a Saudi Arabian franchisee of the rental car
company Budget International. United International Transport
operates 101 rental offices with a fleet of over 24,000 cars.
LT Group (Philippines,
Industrials, 3.4% (2019: 2.9%)) is a diversified investment company
that is involved in beverages, tobacco, property development and
banking businesses in the
Philippines, including Philippines National Bank.
Eastern Tobacco (Egypt,
Consumer Staples, 3.3% (2019: 2.9%)) is an Egypt-based company, which is engaged in
manufacturing tobacco products. The company’s product portfolio
includes cigarettes, cigars, pipe tobacco and molasses tobacco as
well as other related products such as filter rods and homogenized
tobacco.
Bank Mandiri (Indonesia,
Financials, 3.3% (2019: 2.3%)) is one of Indonesia’s largest banks
by assets, loans and deposits, providing a number of services to
both individual and corporate clients.
Bank of the Philippine Islands (Philippines, Financials, 3.1% (2019: 2.5%)) is
a leading bank in the Philippines
and in the Southeast Asian region. BPI is a universal bank and
together with its subsidiaries and affiliates, it offers a wide
range of financial products and solutions that serve both retail
and corporate clients. The bank has a network of over 800 branches
in the Philippines, Hong Kong and Europe and close to 3,000 ATMs and CDMs (cash
deposit machines).
Almarai (Saudi Arabia,
Consumer Staples, 3.1% (2019: N/A))3 is a food and
beverage manufacturer and distributor and considered the world’s
largest vertically integrated dairy company. Almarai is active in
five categories across the Middle
East and North Africa –
dairy, juice, baked goods, poultry and infant nutrition.
Astra International (Indonesia, Consumer Discretionary, 2.9% (2019:
3.5%))2 is an Indonesian conglomerate. It owns Southeast
Asia’s largest independent automotive group and is the leading
provider of a full range of automobile and motor-cycle products.
The company also has interests in financial services, heavy
equipment, mining, construction and energy, agribusiness,
infrastructure and logistics, information technology and property.
It is also an active participant in the development of Indonesia’s
strategic infrastructure, including toll roads, energy,
transportation and logistics and sea ports.
Orascom Construction (Egypt, Industrials, 2.9% (2019: 2.6%)) is an
engineering, procurement and construction contractor based in
Egypt. The company was Egypt’s
first multinational corporation and is now one of the region’s
largest corporations focused on infrastructure, industrial and
high-end commercial projects in the Middle East, North
Africa, the United States
and the Pacific Rim for public and
private clients.
MCB Bank (Pakistan,
Financials, 2.9% (2019: 2.0%))3 is one of Pakistan’s
largest banks, serving over 8 million client accounts and operating
over 1,400 branches domestically and abroad.
PTT Exploration & Production (Thailand, Energy, 2.8% (2019: N/A)) is one of
Thailand’s national petroleum exploration and production companies.
The firm is a subsidiary of the state-owned PTT Public Company Ltd.
with projects across South East
Asia, the Americas and Africa.
1 All percentages reflect the
gross market exposure of the holding as a percentage of net assets.
Percentages in brackets represent the value of the holding as at
30 September 2019. Together, the ten
largest investments represent 31.3% of net assets (30 September 2019: 29.1%).
2 Includes exposure gained
via contracts for difference and equity holdings.
3 Includes exposure gained
solely via contracts for difference.
COUNTRY AND SECTOR ALLOCATION AS AT
31 MARCH 2020
COUNTRY ALLOCATION
Relative to the
Benchmark Index
(%)1 |
|
Absolute
weights (Gross Market Exposure as a % of Net
Assets)1 |
Egypt |
9.4 |
|
Indonesia |
12.2 |
Vietnam |
8.3 |
|
Saudi Arabia |
11.7 |
Kazakhstan |
5.5 |
|
Thailand |
10.5 |
Philippines |
4.8 |
|
Egypt |
10.2 |
Pakistan |
4.3 |
|
Philippines |
10.0 |
Romania |
3.0 |
|
Vietnam |
9.8 |
Indonesia |
2.9 |
|
Kazakhstan |
5.6 |
Ukraine |
2.4 |
|
United Arab Emirates |
4.5 |
Pan-Africa |
1.8 |
|
Pakistan |
4.4 |
Greece |
1.7 |
|
Malaysia |
4.4 |
United Arab Emirates |
1.0 |
|
Romania |
3.5 |
Kenya |
0.9 |
|
Poland |
3.0 |
Saudi Arabia |
0.7 |
|
Greece |
3.0 |
Hungary |
0.0 |
|
Turkey |
2.7 |
Senegal |
-0.1 |
|
Qatar |
2.7 |
Sri Lanka |
-0.1 |
|
Chile |
2.7 |
Tunisia |
-0.1 |
|
Ukraine |
2.4 |
Jordan |
-0.1 |
|
Pan-Africa |
1.8 |
Oman |
-0.2 |
|
Hungary |
1.6 |
Turkey |
-0.2 |
|
Kenya |
1.5 |
Croatia |
-0.2 |
|
Colombia |
0.5 |
Lebanon |
-0.2 |
|
Nigeria |
0.2 |
Bangladesh |
-0.2 |
|
|
|
Mauritius |
-0.2 |
|
|
|
Slovenia |
-0.3 |
|
|
|
Nigeria |
-0.3 |
|
|
|
Bahrain |
-0.7 |
|
|
|
Czech Republic |
-0.7 |
|
|
|
Poland |
-0.8 |
|
|
|
Argentina |
-0.8 |
|
|
|
Morocco |
-1.0 |
|
|
|
Colombia |
-1.0 |
|
|
|
Chile |
-1.4 |
|
|
|
Thailand |
-1.4 |
|
|
|
Peru |
-1.8 |
|
|
|
Qatar |
-3.5 |
|
|
|
Kuwait |
-4.3 |
|
|
|
Malaysia |
-5.9 |
|
|
|
Other countries in the
benchmark |
-12.3 |
|
|
|
Sources: BlackRock and Datastream.
1 Includes exposure gained
through equity positions and long and short CFD positions.
SECTOR ALLOCATION
Relative
to the Benchmark Index (%)¹ |
|
Absolute weights (Gross Market Exposure as a % of Net
Assets)¹ |
Consumer Discretionary |
10.1 |
|
Financials |
25.2 |
Consumer Staples |
8.6 |
|
Consumer Staples |
17.5 |
Industrials |
7.2 |
|
Consumer Discretionary |
13.5 |
Real Estate |
6.9 |
|
Industrials |
13.5 |
Information Technology |
1.5 |
|
Real Estate |
11.3 |
Energy |
0.9 |
|
Energy |
8.3 |
Other |
-0.1 |
|
Materials |
8.1 |
Health Care |
-0.7 |
|
Communication Services |
5.9 |
Materials |
-1.2 |
|
Health Care |
2.2 |
Utilities |
-4.4 |
|
Information Technology |
1.9 |
Communication Services |
-5.0 |
|
Utilities |
1.5 |
Financials |
-14.9 |
|
|
|
Sources: BlackRock and Datastream.
1 Includes exposure gained
through equity positions and long and short CFD positions.
INVESTMENTS AS AT 31 MARCH 2020
Company |
Principal
country of
operation |
Sector |
Fair
value and
market
exposure¹ |
Gross
market
exposure
as a % of
net assets3 |
|
|
|
US$’000 |
|
Equity portfolio |
|
|
|
|
PTT Exploration &
Production |
Thailand |
Energy |
7,086 |
2.8 |
Thai Beverage |
Thailand |
Consumer
Staples |
5,553 |
2.2 |
Total Access Communication |
Thailand |
Communication
Services |
4,702 |
1.8 |
Land & Houses Public
Company |
Thailand |
Real Estate |
4,060 |
1.6 |
Aeon Thana Sinsap |
Thailand |
Financials |
3,116 |
1.2 |
Charoen Pokphand Food |
Thailand |
Consumer
Staples |
2,367 |
0.9 |
|
|
|
-------------- |
-------------- |
|
|
|
26,884 |
10.5 |
|
|
|
-------------- |
-------------- |
Eastern Tobacco |
Egypt |
Consumer
Staples |
8,541 |
3.3 |
Orascom Construction |
Egypt |
Industrials |
7,433 |
2.9 |
Medinet Nasr |
Egypt |
Real Estate |
3,890 |
1.5 |
EFG Hermes Holdings |
Egypt |
Financials |
3,770 |
1.5 |
Integrated Diagnostics |
Egypt |
Health Care |
2,562 |
1.0 |
|
|
|
-------------- |
-------------- |
|
|
|
26,196 |
10.2 |
|
|
|
-------------- |
-------------- |
Bank Mandiri |
Indonesia |
Financials |
8,320 |
3.3 |
Unilever Indonesia |
Indonesia |
Consumer
Staples |
4,564 |
1.8 |
Astra International |
Indonesia |
Consumer
Discretionary |
3,582 |
1.4 |
Indo Tambangraya |
Indonesia |
Energy |
3,401 |
1.3 |
Mitra Adiperkasa |
Indonesia |
Consumer
Discretionary |
3,293 |
1.3 |
PT Pakuwon Jati |
Indonesia |
Real Estate |
2,700 |
1.1 |
|
|
|
-------------- |
-------------- |
|
|
|
25,860 |
10.2 |
|
|
|
-------------- |
-------------- |
LT Group |
Philippines |
Industrials |
8,665 |
3.4 |
Bank of the Philippine Islands |
Philippines |
Financials |
8,000 |
3.1 |
Bloomberry Resorts |
Philippines |
Consumer
Discretionary |
5,478 |
2.2 |
GT Capital Holding |
Philippines |
Industrials |
3,386 |
1.3 |
|
|
|
-------------- |
-------------- |
|
|
|
25,529 |
10.0 |
|
|
|
-------------- |
-------------- |
Kazatomprom |
Kazakhstan |
Energy |
6,294 |
2.5 |
Halyk Savings Bank |
Kazakhstan |
Financials |
4,921 |
1.9 |
KAZ Minerals |
Kazakhstan |
Materials |
3,220 |
1.2 |
|
|
|
-------------- |
-------------- |
|
|
|
14,435 |
5.6 |
|
|
|
-------------- |
-------------- |
Emaar Development |
United Arab
Emirates |
Real Estate |
5,641 |
2.2 |
Emaar Properties |
United Arab
Emirates |
Real Estate |
4,078 |
1.6 |
Air Arabia |
United Arab
Emirates |
Industrials |
1,666 |
0.7 |
|
|
|
-------------- |
-------------- |
|
|
|
11,385 |
4.5 |
|
|
|
-------------- |
-------------- |
British American Tobacco
Malaysia |
Malaysia |
Consumer
Staples |
4,740 |
1.8 |
Genting |
Malaysia |
Consumer
Discretionary |
3,890 |
1.5 |
RHB Bank |
Malaysia |
Financials |
2,044 |
0.8 |
Sapura Energy |
Malaysia |
Energy |
665 |
0.3 |
|
|
|
-------------- |
-------------- |
|
|
|
11,339 |
4.4 |
|
|
|
-------------- |
-------------- |
Banca Transilvania |
Romania |
Financials |
5,519 |
2.2 |
Erste Group Bank |
Romania |
Financials |
3,328 |
1.3 |
|
|
|
-------------- |
-------------- |
|
|
|
8,847 |
3.5 |
|
|
|
-------------- |
-------------- |
Empresas CMPC |
Chile |
Materials |
6,493 |
2.5 |
Banco Santander Chile |
Chile |
Financials |
544 |
0.2 |
|
|
|
-------------- |
-------------- |
|
|
|
7,037 |
2.7 |
|
|
|
-------------- |
-------------- |
Koza Altin |
Turkey |
Materials |
4,662 |
1.8 |
Tupras |
Turkey |
Energy |
2,218 |
0.9 |
|
|
|
-------------- |
-------------- |
|
|
|
6,880 |
2.7 |
|
|
|
-------------- |
-------------- |
MHP |
Ukraine |
Consumer
Staples |
6,082 |
2.4 |
|
|
|
-------------- |
-------------- |
|
|
|
6,082 |
2.4 |
|
|
|
-------------- |
-------------- |
Hellenic Telecom Organisation |
Greece |
Communication
Services |
3,540 |
1.4 |
National Bank of Greece |
Greece |
Financials |
2,220 |
0.9 |
|
|
|
-------------- |
-------------- |
|
|
|
5,760 |
2.3 |
|
|
|
-------------- |
-------------- |
Vivo Energy |
Pan-Africa |
Consumer
Discretionary |
4,567 |
1.8 |
|
|
|
-------------- |
-------------- |
|
|
|
4,567 |
1.8 |
|
|
|
-------------- |
-------------- |
Bank Pekao |
Poland |
Financials |
4,134 |
1.6 |
|
|
|
-------------- |
-------------- |
|
|
|
4,134 |
1.6 |
|
|
|
-------------- |
-------------- |
Wizz Air Holdings |
Hungary |
Industrials |
4,064 |
1.6 |
|
|
|
-------------- |
-------------- |
|
|
|
4,064 |
1.6 |
|
|
|
-------------- |
-------------- |
Equity Group |
Kenya |
Financials |
3,606 |
1.4 |
|
|
|
-------------- |
-------------- |
|
|
|
3,606 |
1.4 |
|
|
|
-------------- |
-------------- |
Hub Power |
Pakistan |
Utilities |
3,271 |
1.3 |
|
|
|
-------------- |
-------------- |
|
|
|
3,271 |
1.3 |
|
|
|
-------------- |
-------------- |
Ecopetrol |
Colombia |
Energy |
784 |
0.3 |
Ecopetrol ADR |
Colombia |
Energy |
481 |
0.2 |
|
|
|
-------------- |
-------------- |
|
|
|
1,265 |
0.5 |
|
|
|
-------------- |
-------------- |
United Bank for Africa |
Nigeria |
Financials |
432 |
0.2 |
|
|
|
-------------- |
-------------- |
|
|
|
432 |
0.2 |
|
|
|
-------------- |
-------------- |
Equity investments |
|
|
197,573 |
77.4 |
|
|
|
-------------- |
-------------- |
BlackRock’s Institutional Cash
Series plc – US Dollar Liquid Environmentally Aware Fund (Cash
Fund) |
|
|
56,011 |
21.9 |
|
|
|
-------------- |
-------------- |
Total equity investments
(including Cash Fund) |
|
|
253,584 |
99.3 |
|
|
|
-------------- |
-------------- |
Total investments excluding
CFDs |
|
|
253,584 |
99.3 |
|
|
|
========= |
========= |
Company |
Principal
country of
operation |
Sector |
Fair
value¹ |
Gross
market
exposure2 |
Gross
market
exposure
as a % of
net assets3 |
|
|
|
US$’000 |
US$’000 |
|
CFD portfolio |
|
|
|
|
|
Long positions |
|
|
|
|
|
United International Transport |
Saudi Arabia |
Industrials |
|
9,153 |
3.6 |
Almarai |
Saudi Arabia |
Consumer
Staples |
|
7,868 |
3.1 |
Yanbu National Petrochemical |
Saudi Arabia |
Materials |
|
4,753 |
1.9 |
National Medical Care |
Saudi Arabia |
Health Care |
|
3,204 |
1.2 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
24,978 |
9.8 |
|
|
|
|
-------------- |
-------------- |
Vincom Retail |
Vietnam |
Real Estate |
|
6,791 |
2.7 |
Quang Ngai Sugar |
Vietnam |
Consumer
Staples |
|
5,126 |
2.0 |
Mobile World |
Vietnam |
Consumer
Discretionary |
|
4,927 |
1.9 |
FPT |
Vietnam |
Information
Technology |
|
4,902 |
1.9 |
Petrovietnam Fertilizer &
Chemicals |
Vietnam |
Materials |
|
1,819 |
0.7 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
23,565 |
9.2 |
|
|
|
|
-------------- |
-------------- |
MCB Bank |
Pakistan |
Financials |
|
7,337 |
2.9 |
Hub Power |
Pakistan |
Utilities |
|
658 |
0.2 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
7,995 |
3.1 |
|
|
|
|
-------------- |
-------------- |
Ooredoo |
Qatar |
Communication
Services |
|
6,912 |
2.7 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
6,912 |
2.7 |
|
|
|
|
-------------- |
-------------- |
Astra International |
Indonesia |
Consumer
Discretionary |
|
3,899 |
1.5 |
Mitra Adiperkasa |
Indonesia |
Consumer
Discretionary |
|
1,154 |
0.5 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
5,053 |
2.0 |
|
|
|
|
-------------- |
-------------- |
LPP |
Poland |
Consumer
Discretionary |
|
3,487 |
1.4 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
3,487 |
1.4 |
|
|
|
|
-------------- |
-------------- |
National Bank of Greece |
Greece |
Financials |
|
1,779 |
0.7 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
1,779 |
0.7 |
|
|
|
|
-------------- |
-------------- |
Equity Group |
Kenya |
Financials |
|
269 |
0.1 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
269 |
0.1 |
|
|
|
|
-------------- |
-------------- |
Sapura Energy |
Malaysia |
Energy |
|
25 |
0.0 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
25 |
0.0 |
|
|
|
|
-------------- |
-------------- |
Kuwait Food
(Americana)4 |
Kuwait |
Consumer
Discretionary |
|
3 |
0.0 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
3 |
0.0 |
|
|
|
-------------- |
-------------- |
-------------- |
Total long CFD positions |
|
|
(11,429) |
74,066 |
29.0 |
|
|
|
-------------- |
-------------- |
-------------- |
Total short CFD
positions |
|
|
192 |
(6,331) |
(2.5) |
|
|
|
-------------- |
-------------- |
-------------- |
Total CFD portfolio |
|
|
(11,237) |
67,735 |
26.5 |
|
|
|
========= |
========= |
========= |
FAIR VALUE AND GROSS MARKET EXPOSURE
OF INVESTMENTS
Portfolio |
Fair
value¹
US$’000 |
Gross
market
exposure2
US$’000 |
Gross
market
exposure
as a % of
net assets3 |
Equity investments |
197,573 |
197,573 |
77.4 |
Total long CFD positions |
(11,429) |
74,066 |
29.0 |
Total short CFD positions |
192 |
(6,331) |
(2.5) |
Forward currency positions |
1,034 |
16,043 |
6.3 |
|
-------------- |
-------------- |
-------------- |
Total gross exposure |
187,370 |
281,351 |
110.2 |
|
-------------- |
-------------- |
-------------- |
Cash Fund3 |
56,011 |
56,011 |
21.9 |
|
-------------- |
-------------- |
-------------- |
Total investments |
243,381 |
337,362 |
132.1 |
|
-------------- |
-------------- |
-------------- |
Cash and cash equivalents (net of
bank overdraft)1,3 |
2,003 |
(91,978) |
(36.1) |
Other net current assets |
9,912 |
9,912 |
4.0 |
Non current liabilities |
(19) |
(19) |
0.0 |
|
-------------- |
-------------- |
-------------- |
Net assets |
255,277 |
255,277 |
100.0 |
|
========= |
========= |
========= |
The Company was geared through the use of long and short CFD
positions and gross and net gearing as at 31
March 2020 were 8.9% and 3.9% respectively (31 March 2019: 19.6% and 6.4%; 30 September 2019: 14.1% and 6.0%, respectively).
Gross and net gearing are Alternative Performance Measures, see
Glossary in the half yearly report and financial statements.
1 Fair value is determined as
follows:
- Listed investments are valued at bid prices where available,
otherwise at latest market traded quoted prices.
- The sum of the fair value column for the CFD contracts
totalling US$(11,237,000) represents
the net losses on the fair valuation of all the CFD contracts,
which is determined based on the difference between the notional
transaction price and value of the underlying shares in the
contract (in effect the unrealised gains/(losses) on the exposed
positions). The cost of purchasing the securities held through long
CFD positions directly in the market would have amounted to
US$85,495,000 at the time of
purchase, and subsequent market movements in prices have resulted
in unrealised losses on the long CFD positions of US$11,429,000 resulting in the value of the total
market exposure to the underlying securities decreasing to
US$74,066,000 as at 31 March 2020. The notional price of selling the
securities to which exposure was gained via the short CFD positions
would have been US$6,523,000 at the
time of entering into the contract, and subsequent market movement
in prices have resulted in unrealised gains on the short CFD
positions of US$192,000 resulting in
the value of the market exposure of these investments decreasing to
US$6,331,000 at 31 March 2020. If the short positions had been
closed on 31 March 2020 this would
have resulted in a gain of US$192,000
for the Company.
2 Market exposure in the case
of equity investments is the same as fair value. In the case of
CFDs it is the market value of the underlying shares to which the
portfolio is exposed via the contract.
3 The gross market exposure
column for cash and cash equivalents has been adjusted to assume
the Company held investments directly rather than exposure being
gained through CFDs.
4 Unquoted investment.
INDEPENDENT REVIEW REPORT TO BLACKROCK
FRONTIERS INVESTMENT TRUST PLC
INTRODUCTION
We have been engaged by the Company to review the condensed set of
financial statements in the half-yearly financial report for the
six months ended 31 March 2020 which
comprises the Statement of Comprehensive Income, the Statement of
Changes in Equity, the Statement of Financial Position, the Cash
Flow Statement and the Notes to the Financial Statements. We have
read the other information contained in the half-yearly financial
report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
This report is made solely to the Company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) “Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity” issued by the Auditing Practices Board. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our work, for
this report, or for the conclusions we have formed.
DIRECTORS’ RESPONSIBILITIES
The half-yearly financial report is the responsibility of, and has
been approved by, the Directors. The Directors are responsible for
preparing the half-yearly financial report in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom’s
Financial Conduct Authority.
As disclosed in note 2, the annual financial statements of the
Company are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34, “Interim
Financial Reporting”, as adopted by the European Union.
OUR RESPONSIBILITY
Our responsibility is to express to the Company a conclusion on the
condensed set of financial statements in the half-yearly financial
report based on our review.
SCOPE OF REVIEW
We conducted our review in accordance with International Standard
on Review Engagements (UK and Ireland) 2410, “Review of Interim Financial
Information Performed by the Independent Auditor of the Entity”
issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that causes
us to believe that the condensed set of financial statements in the
half-yearly financial report for the six months ended 31 March 2020 is not prepared, in all material
respects, in accordance with International Accounting Standard 34
as adopted by the European Union and the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct
Authority.
ERNST & YOUNG LLP
London
28 May 2020
STATEMENT OF COMPREHENSIVE INCOME FOR
THE SIX MONTHS ENDED 31 MARCH
2020
|
Notes |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Six months
ended |
Year
ended
30.09.19
(audited) |
Six
months ended |
Year
ended
30.09.19
(audited) |
Six
months ended |
Year
ended
30.09.19
(audited) |
31.03.20
(unaudited) |
31.03.19
(unaudited) |
31.03.20
(unaudited) |
31.03.19
(unaudited) |
31.03.20
(unaudited) |
31.03.19
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
|
Income from investments held at fair
value |
|
|
|
|
|
|
|
|
|
|
through profit or loss |
3 |
4,767 |
6,788 |
21,717 |
– |
– |
– |
4,767 |
6,788 |
21,717 |
Net income from contracts for
difference |
3 |
1,075 |
2,679 |
1,858 |
– |
– |
– |
1,075 |
2,679 |
1,858 |
Other income |
3 |
51 |
111 |
216 |
– |
– |
– |
51 |
111 |
216 |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Total revenue |
|
5,893 |
9,578 |
23,791 |
– |
– |
– |
5,893 |
9,578 |
23,791 |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Net (loss)/profit on investments
held at fair value through profit or loss |
|
– |
– |
– |
(108,372) |
5,151 |
(21,959) |
(108,372) |
5,151 |
(21,959) |
Net profit/(loss) on foreign
exchange |
|
– |
– |
– |
203 |
(333) |
(406) |
203 |
(333) |
(406) |
Net (loss)/profit from contracts for
difference |
|
– |
– |
– |
(30,588) |
(1,020) |
1,423 |
(30,588) |
(1,020) |
1,423 |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Total |
|
5,893 |
9,578 |
23,791 |
(138,757) |
3,798 |
(20,942) |
(132,864) |
13,376 |
2,849 |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Expenses |
|
|
|
|
|
|
|
|
|
|
Investment management and |
|
|
|
|
|
|
|
|
|
|
performance fees |
4 |
(418) |
(422) |
(886) |
(1,671) |
(1,686) |
(3,543) |
(2,089) |
(2,108) |
(4,429) |
Other operating expenses |
5 |
(533) |
(535) |
(1,082) |
(49) |
(97) |
(214) |
(582) |
(632) |
(1,296) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Total operating expenses |
|
(951) |
(957) |
(1,968) |
(1,720) |
(1,783) |
(3,757) |
(2,671) |
(2,740) |
(5,725) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Net profit/(loss) on ordinary
activities before finance costs and taxation |
|
4,942 |
8,621 |
21,823 |
(140,477) |
2,015 |
(24,699) |
(135,535) |
10,636 |
(2,876) |
Finance costs |
6 |
(4) |
(308) |
(311) |
(16) |
(1,230) |
(1,245) |
(20) |
(1,538) |
(1,556) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Net profit/(loss) on ordinary
activities before taxation |
|
4,938 |
8,313 |
21,512 |
(140,493) |
785 |
(25,944) |
(135,555) |
9,098 |
(4,432) |
Taxation |
7 |
(664) |
(1,354) |
(2,588) |
160 |
(129) |
339 |
(504) |
(1,483) |
(2,249) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Profit/(loss) for the
period |
|
4,274 |
6,959 |
18,924 |
(140,333) |
656 |
(25,605) |
(136,059) |
7,615 |
(6,681) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Earnings/(loss) per ordinary
share (cents) |
9 |
1.77 |
3.19 |
8.24 |
(58.16) |
0.30 |
(11.15) |
(56.39) |
3.49 |
(2.91) |
|
|
========= |
========= |
========= |
========= |
========= |
========= |
========= |
========= |
========= |
The total column of this statement represents the Company’s
Statement of Comprehensive Income, prepared in accordance with the
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU). The supplementary revenue and capital
columns are both prepared under guidance published by the
Association of Investment Companies (AIC). All items in the above
statement derive from continuing operations. No operations were
acquired or discontinued during the year. All income is
attributable to the equity holders of the Company.
The Company does not have any other comprehensive income/(loss).
The net profit/(loss) for the period disclosed above represents the
Company’s total comprehensive income/(loss).
STATEMENT OF CHANGES IN EQUITY FOR THE
SIX MONTHS ENDED 31 MARCH 2020
|
Notes |
Called
up share
capital
US$’000 |
Share
premium
account
US$’000 |
Capital
redemption
reserve
US$’000 |
Special
reserve
US$’000 |
Capital
reserves
US$’000 |
Revenue
reserve
US$’000 |
Total
US$’000 |
For the six months ended 31 March
2020 (unaudited) |
|
|
|
|
|
|
|
|
At 30 September 2019 |
|
2,407 |
164,007 |
5,798 |
230,799 |
(18,374) |
16,183 |
400,820 |
Total comprehensive income: |
|
|
|
|
|
|
|
|
Net (loss)/profit for the
period |
|
– |
– |
– |
– |
(140,333) |
4,274 |
(136,059) |
Transactions with owners, recorded
directly to equity: |
|
|
|
|
|
|
|
|
Share issues |
10 |
11 |
1,987 |
– |
– |
– |
– |
1,998 |
Share issue costs |
|
– |
(10) |
– |
– |
– |
– |
(10) |
Dividend paid1 |
8 |
– |
– |
– |
– |
– |
(11,472) |
(11,472) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
At 31 March 2020 |
|
2,418 |
165,984 |
5,798 |
230,799 |
(158,707) |
8,985 |
255,277 |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
For the six months ended 31 March
2019 (unaudited) |
|
|
|
|
|
|
|
|
At 30 September 2018 |
|
2,006 |
95,095 |
5,798 |
230,799 |
7,231 |
15,566 |
356,495 |
Total comprehensive income: |
|
|
|
|
|
|
|
|
Net profit for the period |
|
– |
– |
– |
– |
656 |
6,959 |
7,615 |
Transactions with owners, recorded
directly to equity: |
|
|
|
|
|
|
|
|
Share issues |
|
62 |
10,783 |
– |
– |
– |
– |
10,845 |
Share issue costs |
|
– |
(55) |
– |
– |
– |
– |
(55) |
Share issues – conversion of C
shares |
11 |
339 |
58,184 |
– |
– |
– |
– |
58,523 |
Dividend paid2 |
|
– |
– |
– |
– |
– |
(11,087) |
(11,087) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
At 31 March 2019 |
|
2,407 |
164,007 |
5,798 |
230,799 |
7,887 |
11,438 |
422,336 |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
For the year ended 30 September
2019 (audited) |
|
|
|
|
|
|
|
|
At 30 September 2018 |
|
2,006 |
95,095 |
5,798 |
230,799 |
7,231 |
15,566 |
356,495 |
Total comprehensive income: |
|
|
|
|
|
|
|
|
Net (loss)/profit for the year |
|
– |
– |
– |
– |
(25,605) |
18,924 |
(6,681) |
Transactions with owners, recorded
directly to equity: |
|
|
|
|
|
|
|
|
Share issues |
|
62 |
10,783 |
– |
– |
– |
– |
10,845 |
Share issue costs |
|
– |
(55) |
– |
– |
– |
– |
(55) |
Share issues – conversion of C
shares |
11 |
339 |
58,184 |
– |
– |
– |
– |
58,523 |
Dividends paid3 |
|
– |
– |
– |
– |
– |
(18,307) |
(18,307) |
|
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
At 30 September 2019 |
|
2,407 |
164,007 |
5,798 |
230,799 |
(18,374) |
16,183 |
400,820 |
|
|
========= |
========= |
========= |
========= |
========= |
========= |
========= |
1
Final dividend of 4.75 cents per
share for the year ended 30 September
2019, declared on 6 December
2019 and paid on 7 February
2020.
2
Final dividend of 4.40 cents per
share for the year ended 30 September
2018, declared on 10 December
2018 and paid on 7 February
2019 and special dividend paid in respect of the year ended
30 September 2018 of 1.00 cent per share, declared on 10 December 2018 and paid on 7 February 2019.
3
Final dividend of 4.40 cents per
share for the year ended 30 September
2018, declared on 10 December
2018 and paid on 7 February
2019 and special dividend paid in respect of the year ended
30 September 2018 of 1.00 cent per share, declared on 10 December 2018 and paid on 7 February 2019. Interim dividend paid in respect
of the year ended 30 September 2019
of 3.00 cents per share, declared on
30 May 2019 and paid on 28 June 2019.
Costs related to the acquisition and disposal of investments
amounted to US$114,000 and
US$334,000 respectively for the six
months ended 31 March 2020 (six
months ended 31 March 2019:
US$341,000 and US$248,000; year ended 30
September 2019: US$528,000 and
US$530,000).
The share premium account and capital redemption reserve are not
distributable profits under the Companies Act 2006. The special
reserve may be used as distributable profits for all purposes and,
in particular, for the repurchase by the Company of its ordinary
shares and for payment as dividends. In accordance with the
Company’s articles, net capital reserves may be distributed by way
of the repurchase by the Company of its ordinary shares and for
payment as dividends.
STATEMENT OF FINANCIAL POSITION AS AT
31 MARCH 2020
|
Notes |
31
March
2020
US$’000
(unaudited) |
31
March
2019
US$’000
(unaudited) |
30
September
2019
US$’000
(audited) |
Non current assets |
|
|
|
|
Investments held at fair value
through profit or loss |
|
253,584 |
415,383 |
393,582 |
|
|
-------------- |
-------------- |
-------------- |
Current assets |
|
|
|
|
Other receivables |
|
4,919 |
8,674 |
7,760 |
Derivative financial assets held at
fair value through profit or loss – contracts for difference |
|
1,504 |
1,273 |
3,414 |
Derivative financial assets held at
fair value through profit or loss – currency hedges |
|
1,047 |
– |
– |
Cash and cash equivalents |
|
2,248 |
4,656 |
6,020 |
Cash collateral held with
brokers |
|
24,340 |
4,270 |
40 |
|
|
-------------- |
-------------- |
-------------- |
|
|
34,058 |
18,873 |
17,234 |
|
|
-------------- |
-------------- |
-------------- |
Total assets |
|
287,642 |
434,256 |
410,816 |
|
|
-------------- |
-------------- |
-------------- |
Current liabilities |
|
|
|
|
Other payables |
|
(18,407) |
(7,714) |
(5,211) |
Derivative financial liabilities
held at fair value through profit or loss – contracts for
difference |
|
(12,741) |
(4,186) |
(1,056) |
Derivative financial liabilities
held at fair value through profit or loss – currency hedges |
|
(13) |
– |
– |
Cash collateral received |
|
(940) |
– |
(3,710) |
Bank overdraft |
|
(245) |
(1) |
– |
|
|
-------------- |
-------------- |
-------------- |
|
|
(32,346) |
(11,901) |
(9,977) |
|
|
-------------- |
-------------- |
-------------- |
Total assets less current
liabilities |
|
255,296 |
422,355 |
400,839 |
|
|
-------------- |
-------------- |
-------------- |
Non current liabilities |
|
|
|
|
Management shares of £1.00 each (one
quarter paid) |
|
(19) |
(19) |
(19) |
|
|
-------------- |
-------------- |
-------------- |
Net assets |
|
255,277 |
422,336 |
400,820 |
|
|
========= |
========= |
========= |
Equity attributable to equity
holders |
|
|
|
|
Called up share capital |
10 |
2,418 |
2,407 |
2,407 |
Share premium account |
|
165,984 |
164,007 |
164,007 |
Capital redemption reserve |
|
5,798 |
5,798 |
5,798 |
Special reserve |
|
230,799 |
230,799 |
230,799 |
Capital reserves |
|
(158,707) |
7,887 |
(18,374) |
Revenue reserve |
|
8,985 |
11,438 |
16,183 |
|
|
-------------- |
-------------- |
-------------- |
Total equity |
|
255,277 |
422,336 |
400,820 |
|
|
========= |
========= |
========= |
Net asset value per ordinary
share (cents) |
9 |
105.56 |
175.48 |
166.54 |
|
|
========= |
========= |
========= |
CASH FLOW STATEMENT FOR THE SIX MONTHS
ENDED 31 MARCH 2020
|
Six months
ended
31 March
2020
US$’000
(unaudited) |
Six months
ended
31 March
2019
US$’000
(unaudited) |
Year ended
30 September
2019
US$’000
(audited) |
Operating activities |
|
|
|
Net (loss)/profit on ordinary
activities before taxation |
(135,555) |
9,098 |
(4,432) |
Add back finance costs |
20 |
1,538 |
1,556 |
Net loss/(profit) on investments and
contracts for difference held at fair value through profit or loss
(including transaction costs) |
136,781 |
(5,839) |
17,258 |
Net (gain)/loss on foreign
exchange |
(203) |
333 |
406 |
Sales of investments held at fair
value through profit or loss |
104,580 |
155,958 |
298,919 |
Purchases of investments held at
fair value through profit or loss |
(88,128) |
(212,672) |
(355,397) |
Sales of Cash Funds1 |
99,830 |
143,864 |
307,793 |
Purchases of Cash
Funds1 |
(84,655) |
(108,476) |
(278,045) |
Amounts paid for losses on closure
of contracts for difference |
(39,006) |
(35,239) |
(67,119) |
Amounts received on gains on closure
of contracts for difference |
23,157 |
39,342 |
70,065 |
Decrease/(increase) in other
receivables |
245 |
(1,410) |
(16) |
Increase in other payables |
13,161 |
3,866 |
1,546 |
Decrease/(increase) in amounts due
from brokers |
2,596 |
(6,491) |
(6,971) |
Increase/(decrease) in amounts due
to brokers |
35 |
(4,105) |
(4,182) |
Net cash collateral
(pledged)/received |
(27,070) |
5,910 |
13,850 |
Taxation paid |
(504) |
(1,494) |
(2,266) |
|
-------------- |
-------------- |
-------------- |
Net cash inflow/(outflow) from
operating activities |
5,284 |
(15,817) |
(7,035) |
|
-------------- |
-------------- |
-------------- |
Financing activities |
|
|
|
Interest paid |
(20) |
(25) |
(43) |
Cash proceeds from ordinary share
issues |
1,998 |
10,845 |
10,845 |
Ordinary share issue costs paid |
(10) |
(55) |
(55) |
Cash proceeds from C share
issue |
– |
9,853 |
9,853 |
Cash received from BlackRock
Emerging Europe Plc |
– |
7,353 |
7,353 |
C share issue costs paid |
– |
(504) |
(610) |
Dividends paid |
(11,472) |
(11,087) |
(18,307) |
|
-------------- |
-------------- |
-------------- |
Net cash (outflow)/inflow from
financing activities |
(9,504) |
16,380 |
9,036 |
|
-------------- |
-------------- |
-------------- |
(Decrease)/increase in cash and
cash equivalents |
(4,220) |
563 |
2,001 |
Effect of foreign exchange rate
changes |
203 |
(333) |
(406) |
|
-------------- |
-------------- |
-------------- |
Change in cash and cash
equivalents |
(4,017) |
230 |
1,595 |
Cash and cash equivalents at the
start of the period |
6,020 |
4,425 |
4,425 |
|
-------------- |
-------------- |
-------------- |
Cash and cash equivalents at the
end of the period |
2,003 |
4,655 |
6,020 |
|
-------------- |
-------------- |
-------------- |
Comprised of: |
|
|
|
Cash at bank |
2,248 |
4,656 |
6,020 |
Bank overdraft |
(245) |
(1) |
– |
|
-------------- |
-------------- |
-------------- |
Total |
2,003 |
4,655 |
6,020 |
|
========= |
========= |
========= |
1 Cash Funds represents funds
held on deposit with BlackRock’s Institutional Cash Series plc – US
Dollar Liquid Environmentally Aware Fund (31
March 2019: BlackRock’s Institutional Cash Series plc – US
Dollar Liquidity Fund; 30 September
2019: BlackRock Institutional Cash Series plc – US Dollar
Liquid Environmentally Aware Fund).
NOTES TO THE FINANCIAL STATEMENTS FOR
THE SIX MONTHS ENDED 31 MARCH
2020
1. PRINCIPAL ACTIVITY
The principal activity of the Company is that of an investment
trust company within the meaning of Section 1158 of the Corporation
Tax Act 2010.
2. BASIS OF PREPARATION
The half yearly financial statements for the period ended
31 March 2020 have been prepared in
accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the Financial Conduct Authority and with
International Accounting Standard 34 (IAS 34), ’Interim Financial
Reporting’, as adopted by the European Union (EU). The half yearly
financial statements should be read in conjunction with the
Company’s Annual Report and Financial Statements for the year ended
30 September 2019, which have been
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU and as applied in accordance
with the provisions of the Companies Act 2006 and in accordance
with IAS 34 Interim Financial Reporting.
Insofar as the Statement of Recommended Practice (SORP) for
investment trust companies and venture capital trusts issued by the
Association of Investment Companies (AIC) in October 2019, is compatible with IFRS, the
financial statements have been prepared in accordance with guidance
set out in the SORP.
The revised SORP issued in October
2019 is applicable for accounting periods beginning on or
after 1 January 2019, therefore the
Company has adopted the new SORP for the accounting year beginning
1 October 2019. As a result, there
will be an amended presentation of movements in investments held at
fair value through profit or loss in the notes to the financial
statements, which will be included as part of the 2020 Annual
Report and Financial Statements. As this note is not included as
part of the Interim Report and Financial Statements, there is no
impact on the Interim Report and Financial Statements as a result
of the adoption of the revised SORP.
Adoption of new and amended standards and interpretations
IFRS 16 Leases
The Company adopted IFRS 16 as of the date of initial application
of 1 October 2019. IFRS 16 specifies
accounting for leases and removes the distinction between operating
and finance leases. This standard is not applicable to the Company
as it has no leases.
IFRIC 23 Uncertainty over Income Tax Treatments
The Company adopted IFRIC 23 as of the date of initial application
of 1 October 2019. IFRIC 23 seeks to
provide clarity on how to account for uncertainty over income tax
treatments and specifies that an entity must consider whether it is
probable that the relevant tax authority will accept each tax
treatment, or group of tax treatments, that it plans to use in its
income tax filing. The interpretation also requires companies to
reassess the judgements and estimates applied if facts and
circumstances change. The interpretation would require the Company
to recognise uncertain tax positions which are more than probable
within its financial statements and it could potentially require
the Company to recognise tax reclaims filed with HMRC if their
recoverability becomes more than probable. The adoption of this
interpretation has had no impact on the financial statements of the
Company.
IFRS standards that have yet to be adopted
Amendments to IFRS 3 – definition of a business (effective
1 January 2020). This amendment
revises the definition of a business. According to feedback
received by the International Accounting Standards Board,
application of the current guidance is commonly thought to be too
complex and it results in too many transactions qualifying as
business combinations. The standard has not been endorsed by the
EU. This standard is unlikely to have any impact on the
Company.
Amendments to IAS 1 and IAS 8 – definition of material
(effective 1 January 2020). The
amendments to IAS 1, ’Presentation of Financial Statements’, and
IAS 8, ’Accounting Policies, Changes in Accounting Estimates and
Errors’, and consequential amendments to other IFRSs require
companies to:
(i) use a consistent definition of
materiality throughout IFRSs and the Conceptual Framework for
Financial Reporting;
(ii) clarify the explanation of the
definition of material; and
(iii) incorporate some of the guidance of IAS
1 about immaterial information.
This standard has not been endorsed by the EU. This standard is
unlikely to have any impact on the Company.
Amendments to IFRS 9, IAS 39 and IFRS 7 – interest rate
benchmark reform (effective 1 January
2020). These amendments provide certain reliefs in
connection with the interest rate benchmark reform. The reliefs
relate to hedge accounting and have the effect that the Inter Bank
Offer Rate (IBOR) reform should not generally cause hedge
accounting to terminate. However, any hedge ineffectiveness should
continue to be recorded in the income statement. Given the
pervasive nature of hedges involving IBOR based contracts, the
reliefs will affect companies in all industries.
This standard has been endorsed by the EU. This standard is
unlikely to have any significant impact on the Company.
IFRS 17 – insurance contracts (effective 1 January 2021). This standard replaces IFRS 4,
which currently permits a wide variety of practices in accounting
for insurance contracts. IFRS 17 will fundamentally change the
accounting by all entities that issue insurance contracts and
investment contracts with discretionary participation features. The
standard has not been endorsed by the EU. This standard is unlikely
to have any impact on the Company as it has no insurance
contracts.
C share liability
On 27 November 2018, the Company
issued 44,927,580 C shares with a nominal value of 10 cents each at a price of £1.00 per share. On
11 January 2019, the C shares were
converted into Ordinary shares. The conversion ratio, which has
been calculated by reference to the net assets of the Company
attributable to the Ordinary shares and the net assets of the
Company attributable to the C shares as at the close of business on
7 January 2019 was 0.7547 Ordinary
shares for every C share held.
The C shares (when in issue) were listed on the London Stock
Exchange. After the conversion of the C shares into Ordinary
shares, the C shares were delisted on 22
January 2019.
While the C shares were in issue, the results, assets and
liabilities attributable to the C shares were accounted for in a
separate pool to the results, assets and liabilities of the
Ordinary shares. A share of the management fee and other expenses
for the period that the C shares had been in issue was allocated to
the C share pool.
C shares are recognised on issue at fair value of the proceeds
received less directly attributable transaction costs. After
initial recognition, C shares are subsequently measured at
amortised cost using the effective interest method. Amortisation is
credited or charged to finance income or finance costs in the
Statement of Comprehensive Income. Transaction costs are amortised
to the earliest conversion period.
The C shares issued represented contracts for conversion into a
variable number of Ordinary shares and therefore the C shares are
classified as liabilities under IAS 32. The classification resulted
in the issue costs and the return on the C shares being presented
as finance costs in the Company’s Statement of Comprehensive
Income. The return on the C shares represented an increase in the
assets attributable to the C shares over and above the proceeds
raised from their issue.
3. INCOME
|
Six months
ended
31 March
2020
(unaudited)
US$’000 |
Six months
ended
31 March
2019
(unaudited)
US$’000 |
Year
ended
30 September
2019
(audited)
US$’000 |
Investment income: |
|
|
|
UK dividends |
– |
– |
139 |
Overseas dividends |
3,469 |
4,109 |
14,573 |
Overseas special dividends |
627 |
1,101 |
1,224 |
Overseas stock dividends |
– |
451 |
3,780 |
Interest from Cash Funds |
671 |
1,068 |
1,942 |
Fixed interest income |
– |
59 |
59 |
|
-------------- |
-------------- |
-------------- |
|
4,767 |
6,788 |
21,717 |
|
-------------- |
-------------- |
-------------- |
Net income from contracts for
difference |
1,075 |
2,679 |
1,858 |
|
-------------- |
-------------- |
-------------- |
|
5,842 |
9,467 |
23,575 |
|
-------------- |
-------------- |
-------------- |
Other income: |
|
|
|
Deposit interest |
51 |
111 |
216 |
|
-------------- |
-------------- |
-------------- |
Total income |
5,893 |
9,578 |
23,791 |
|
========= |
========= |
========= |
Dividends and interest received in cash in the six months ended
31 March 2020 amounted to
US$3,655,000 and US$651,000 (six months ended 31 March 2019: US$4,130,000 and US$1,040,000; year ended 30 September 2019: US$17,600,000 and US$2,007,000) respectively.
No special dividends have been recognised in capital for the six
months ended 31 March 2020 (six
months ended 31 March 2019: US$nil;
year ended 30 September 2019:
US$104,000).
4. INVESTMENT MANAGEMENT AND
PERFORMANCE FEES
|
Six
months ended 31 March 2020 (unaudited) |
Six
months ended 31 March 2019 (unaudited) |
Year
ended 30 September 2019 (audited) |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Investment management fee |
418 |
1,671 |
2,089 |
422 |
1,686 |
2,108 |
886 |
3,543 |
4,429 |
|
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
-------------- |
Total |
418 |
1,671 |
2,089 |
422 |
1,686 |
2,108 |
886 |
3,543 |
4,429 |
|
========= |
========= |
========= |
========= |
========= |
========= |
========= |
========= |
========= |
An investment management fee equivalent to 1.10% per annum of
the Company’s gross assets (defined as the aggregate net assets of
the long equity and CFD portfolios of the Company) is payable to
the Manager. In addition, the Manager is also entitled to receive a
performance fee at a rate of 10% of any increase in the NAV at the
end of a performance period over and above what would have been
achieved had the NAV since launch increased in line with the
Benchmark Index, which, since 1 April
2018, is a composite of the MSCI Emerging Markets Index ex
Selected Countries + MSCI Frontier Markets Index + MSCI Saudi
Arabia Index.
For the six months ended 31 March
2020, the Company’s NAV did not outperform the Benchmark
Index on a US Dollar basis; therefore, a performance fee of US$nil
has been accrued (six months ended 31 March
2019: US$nil; year ended 30 September
2019: US$nil).
The performance fee payable in any year is capped at an amount
equal to 2.5% or 1.0% of the gross assets if there is any increase
or decrease in the NAV per share at the end of the relevant
performance period, respectively. Any capped excess outperformance
for a period may be carried forward to the next two performance
periods, subject to the then applicable annual cap. The performance
fee is also subject to a high watermark such that any performance
fee is only payable to the extent that the cumulative relative
outperformance of the NAV is greater than what would have been
achieved had the NAV increased in line with the Benchmark Index
since the last date in relation to which a performance fee has been
paid.
Under the terms of the C share issue in November 2018, BlackRock agreed to waive the
management fees payable by the Company up to the value of the issue
expenses that exceeded the capped amount of 1.00% of the gross
proceeds from the issue of C shares. As the issue expenses exceeded
the capped amount, the excess issue expenses of US$34,000 have been offset against the investment
management fee payable by the Company during the period ended
31 March 2019 and year ended
30 September 2019.
5. OTHER OPERATING EXPENSES
|
Six
months
ended
31 March
2020
(unaudited)
US$’000 |
Six
months
ended
31 March
2019
(unaudited)
US$’000 |
Year
ended
30 September
2019
(audited)
US$’000 |
Allocated to revenue: |
|
|
|
Custody fee |
167 |
184 |
366 |
Auditor’s remuneration: |
|
|
|
– audit services |
22 |
19 |
36 |
– other assurance
services1 |
5 |
5 |
8 |
Registrar’s fee |
18 |
18 |
42 |
Directors’ emoluments |
109 |
97 |
201 |
Broker fees |
20 |
20 |
38 |
Depositary fees2 |
14 |
20 |
44 |
Marketing fees |
49 |
44 |
79 |
AIC fees |
16 |
13 |
26 |
FCA fees |
9 |
9 |
16 |
Printing and Postage fees |
16 |
22 |
40 |
Employer NI Contributions |
15 |
10 |
20 |
Stock exchange listings |
7 |
6 |
11 |
Legal and professional fees |
7 |
7 |
12 |
Other administrative costs |
59 |
61 |
143 |
|
------------- |
------------- |
------------- |
|
533 |
535 |
1,082 |
|
======== |
======== |
======== |
Allocated to capital: |
|
|
|
Custody transaction charges |
49 |
97 |
214 |
|
------------- |
------------- |
------------- |
|
49 |
97 |
214 |
|
------------- |
------------- |
------------- |
|
582 |
632 |
1,296 |
|
======== |
======== |
======== |
1 Fees for non audit services
relate to the following services provided by the Auditor:
- £4,000 (US$5,000) (six months
ended 31 March 2019: £4,000
(US$5,000); year ended 30 September 2019: £6,500 (US$8,000) relating to the review of the interim
financial statements.
- £nil (US$nil) (six months ended 31 March
2019 and year ended 30 September
2019: £37,500 (US$49,000)
(excluding VAT)) in respect of the work on the Company’s C share
issue. These fees were included as part of the C shares liability
detailed in note 11 and were debited to the Company’s Statement of
Comprehensive Income as finance costs.
2 All expenses other than
depositary fees are paid in Sterling and are therefore subject to
exchange rate fluctuations.
6. FINANCE COSTS
|
Six months ended 31 March 2020 (unaudited) |
Six months ended 31 March 2019 (unaudited ) |
Year ended 30 September 2019 (audited) |
|
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Interest payable – bank
overdraft |
4 |
16 |
20 |
5 |
20 |
25 |
8 |
35 |
43 |
Amortisation of C share issue
costs |
– |
– |
– |
122 |
488 |
610 |
122 |
488 |
610 |
Return on C shares |
– |
– |
– |
181 |
722 |
903 |
181 |
722 |
903 |
|
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
Total |
4 |
16 |
20 |
308 |
1,230 |
1,538 |
311 |
1,245 |
1,556 |
|
======== |
======== |
======== |
======== |
======== |
======== |
======== |
======== |
======== |
7. TAXATION
|
Six months ended 31 March 2020 (unaudited) |
Six months ended 31 March 2019 (unaudited) |
Year ended 30 September 2019 (audited) |
|
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Revenue
US$’000 |
Capital
US$’000 |
Total
US$’000 |
Analysis of tax charge/(credit)
for the period: |
|
|
|
|
|
|
|
|
|
Current tax: |
|
|
|
|
|
|
|
|
|
Corporation tax |
160 |
(160) |
– |
561 |
(561) |
– |
1,029 |
(1,029) |
– |
Corporation tax – prior year
adjustment |
– |
– |
– |
415 |
(415) |
– |
415 |
(415) |
– |
Overseas tax |
504 |
– |
504 |
378 |
– |
378 |
1,144 |
– |
1,144 |
Overseas tax on capital gains |
– |
– |
– |
– |
1,105 |
1,105 |
– |
1,105 |
1,105 |
|
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
------------- |
Total tax charge |
664 |
(160) |
504 |
1,354 |
129 |
1,483 |
2,588 |
(339) |
2,249 |
|
======== |
======== |
======== |
======== |
======== |
======== |
======== |
======== |
======== |
8. DIVIDENDS
The Board has declared an interim dividend of 2.75 cents per share for the period ended
31 March 2020 which will be paid on
26 June 2020 to shareholders on the
register at 5 June 2020 (interim
dividend for the six months ended 31 March
2019 and for the year ended 30
September 2019: 3.00 cents per
share paid on 28 June 2019 to
shareholders on the register at 7 June
2019). This dividend has not been accrued in the financial
statements for the six months ended 31 March
2020 as, under IFRS, interim dividends are not recognised
until paid. Dividends are debited directly to reserves.
9. EARNINGS AND NET ASSET VALUE PER
ORDINARY SHARE
|
Six
months
ended
31 March
2020
(unaudited) |
Six
months
ended
31 March
2019
(unaudited) |
Year
ended
30 September
2019
(audited) |
Net revenue profit attributable to
ordinary shareholders (US$’000) |
4,274 |
6,959 |
18,924 |
Net capital
(loss)/profit attributable to ordinary shareholders (US$’000) |
(140,333) |
656 |
(25,605) |
|
----------------- |
----------------- |
----------------- |
Total (loss)/profit attributable to
ordinary shareholders (US$’000) |
(136,059) |
7,615 |
(6,681) |
|
----------------- |
----------------- |
----------------- |
Equity shareholders’ funds
(US$’000) |
255,277 |
422,336 |
400,820 |
|
----------------- |
----------------- |
----------------- |
The weighted average number of
ordinary shares in issue during the period on which the earnings
per ordinary share was calculated was: |
241,292,473 |
218,214,127 |
229,597,290 |
|
----------------- |
----------------- |
---------------- |
The actual number of ordinary shares
in issue at the end of each period on which the net asset value per
ordinary share was calculated was: |
241,822,801 |
240,672,801 |
240,672,801 |
|
----------------- |
----------------- |
----------------- |
Return per ordinary
share |
|
|
|
Revenue earnings per share
(cents) |
1.77 |
3.19 |
8.24 |
Capital (loss)/earnings per share
(cents) |
(58.16) |
0.30 |
(11.15) |
|
----------------- |
----------------- |
----------------- |
Total (loss)/earnings per share
(cents) |
(56.39) |
3.49 |
(2.91) |
|
========== |
========== |
========== |
|
As
at
31 March
2020
(unaudited) |
As
at
31 March
2019
(unaudited) |
As
at
30 September
2019
(audited) |
Net asset value per ordinary share
(cents) |
105.56 |
175.48 |
166.54 |
Ordinary share price
(cents)1 |
103.17 |
173.31 |
162.66 |
Net asset value per ordinary share
(pence) |
85.13 |
134.67 |
135.15 |
Ordinary share price (pence) |
83.20 |
133.00 |
132.00 |
|
====== |
====== |
====== |
1 The Company’s share price
is quoted in Sterling and the above represents the US dollar
equivalent, based on exchange rates of $1.2400 to £1 at 31 March
2020, US$1.3031 to £1 at
31 March 2019 and US$1.2323 to £1 at 30
September 2019.
10. CALLED UP SHARE CAPITAL
|
Number
of
ordinary
shares |
Nominal value |
|
|
US$’000 |
Allotted, called up and fully
paid share capital comprised: |
|
|
Ordinary shares of 1 cent each: |
|
|
At 30 September 2019 |
240,672,801 |
2,407 |
|
----------------- |
----------------- |
Share issues |
1,150,000 |
11 |
|
----------------- |
----------------- |
At 31 March 2020 |
241,822,801 |
2,418 |
|
========== |
========== |
The Company also has in issue 50,000 management shares which
carry the right to a fixed cumulative preferred dividend.
During the period to 31 March
2020, the Company issued 1,150,000 ordinary shares (six
months ended 31 March 2019:
6,150,000; year ended 30 September
2019: 6,150,000) for a total gross consideration of
US$1,998,000 (six months ended
31 March 2019: US$10,845,000; year ended 30 September 2019: US$10,845,000).
Since 31 March 2020 and up to the
date of this report, no further ordinary shares have been
issued.
11. C SHARES: FINANCIAL LIABILITY
|
31
March
2020
US$’000 |
31
March
2019
US$’000 |
30
September
2019
US$’000 |
Net proceeds from issue of C
shares |
– |
57,010 |
57,010 |
Amortisation of C share issue
costs |
– |
610 |
610 |
Return on C share liability |
– |
903 |
903 |
Extinguishment of C share liability
upon conversion to Ordinary shares |
– |
(58,523) |
(58,523) |
|
------------- |
------------- |
------------- |
|
– |
– |
– |
|
======== |
======== |
======== |
On 27 November 2018, the Company
issued 44,927,580 C shares with a nominal value of 10 cents each at a price of £1.00 per share. On
11 January 2019, the C shares were
converted into 33,906,693 ordinary shares. The conversion ratio,
which was calculated by reference to the net assets of the Company
attributable to the ordinary shares and the net assets of the
Company attributable to the C shares as at the close of business on
7 January 2019 was 0.7547 ordinary
shares for every C share held.
The C shares (when in issue) were listed on the London Stock
Exchange. After the conversion of the C shares to ordinary shares,
the C shares were delisted on 22 January
2019.
While the C shares were in issue, the results, assets and
liabilities attributable to the C shares were accounted for in a
separate pool to the results, assets and liabilities of the
ordinary shares. A share of management fee and other expenses for
the period the C shares had been in issue was allocated to the C
share pool.
The table below gives a breakdown of the gross proceeds
(excluding issue costs) from the issue of C shares during the
period:
|
31 March
2020
US$’000 |
31 March
2019
US$’000 |
30 September
2019
US$’000 |
Consideration received from C share
issue pursuant to rollover option in connection with reconstruction
of BlackRock Emerging Europe plc: |
|
|
|
Investments |
– |
40,414 |
40,414 |
Cash |
– |
7,353 |
7,353 |
|
------------- |
------------- |
------------- |
|
– |
47,767 |
47,767 |
Proceeds from C share issue pursuant
to placing and offer for subscription: |
|
|
|
Cash |
– |
9,853 |
9,853 |
|
------------- |
------------- |
------------- |
Gross proceeds from issue of C
shares |
– |
57,620 |
57,620 |
|
======== |
======== |
======== |
The table below gives a summary of the results of the C share
pool up to the date of conversion:
|
31
March
2020
US$’000 |
31
March
2019
US$’000 |
30
September
2019
US$’000 |
Gross proceeds from issue of C
shares |
– |
57,620 |
57,620 |
C share issue costs |
– |
(610) |
(610) |
Net revenue income |
– |
114 |
114 |
Fair value gains on investments and
contracts for difference |
– |
789 |
789 |
Finance costs – amortisation of C
share issue costs |
– |
610 |
610 |
|
------------- |
------------- |
------------- |
Value of C shares on conversion |
– |
58,523 |
58,523 |
|
======== |
======== |
======== |
12. VALUATION OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are either carried in
the Statement of Financial Position at their fair value
(investments and derivatives) or at an amount which is a reasonable
approximation of fair value (due from brokers, dividends and
interest receivable, due to brokers, accruals, cash at bank and
bank overdrafts). IFRS 13 requires the Company to classify fair
value measurements using a fair value hierarchy that reflects the
significance of inputs used in making the measurements. The
valuation techniques used by the Company are explained in the
accounting policies note 2(h) as set out on page 77 of the
Company’s Annual Report and Financial Statements for the year ended
30 September 2019.
Categorisation within the hierarchy has been determined on the
basis of the lowest level input that is significant to the fair
value measurement of the relevant asset.
The fair value hierarchy has the following levels:
Level 1 – Quoted market price for identical instruments in
active markets
A financial instrument is regarded as quoted in an active market if
quoted prices are readily available from an exchange, dealer,
broker, industry group, pricing service or regulatory agency and
those prices represent actual and regularly occurring market
transactions on an arm’s length basis. The Company does not adjust
the quoted price for these instruments.
Level 2 – Valuation techniques using observable
inputs
This category includes instruments valued using quoted prices for
similar instruments in markets that are considered less than
active, or other valuation techniques where all significant inputs
are directly or indirectly observable from market data.
Valuation techniques used for non-standardised financial
instruments such as options, currency swaps and other
over-the-counter derivatives include the use of comparable recent
arm’s length transactions, reference to other instruments that are
substantially the same, discounted cash flow analysis, option
pricing models and other valuation techniques commonly used by
market participants making the maximum use of market inputs and
relying as little as possible on entity specific inputs.
As at the period end the CFDs were valued using the underlying
equity bid price and the inputs to the valuation were the exchange
rates used to convert the CFD valuation from the relevant local
currency in which the underlying equity was priced to US Dollars at
the period end date. There have been no changes to the valuation
technique since the previous year or as at the date of this
report.
Level 3 – Valuation techniques using significant unobservable
inputs
This category includes all instruments where the valuation
technique includes inputs not based on market data and these inputs
could have a significant impact on the instrument’s valuation.
This category also includes instruments that are valued based on
quoted prices for similar instruments where significant entity
determined adjustments or assumptions are required to reflect
differences between the instruments and instruments for which there
is no active market. The Investment Manager considers observable
data to be that market data that is readily available, regularly
distributed or updated, reliable and verifiable, not proprietary
and provided by independent sources that are actively involved in
the relevant market.
The level in the fair value hierarchy within which the fair
value measurement is categorised in its entirety is determined on
the basis of the lowest level input that is significant to the fair
value measurement.
Assessing the significance of a particular input to the fair
value measurement in its entirety requires judgement, considering
factors specific to the asset or liability. The determination of
what constitutes ’observable’ inputs requires significant judgement
by the Investment Manager.
CFDs have been classified as Level 2 investments as their
valuation has been based on market observable inputs represented by
the market prices of the underlying quoted securities to which
these contracts expose the Company.
The table below sets out fair value measurements using the IFRS
13 fair value hierarchy.
Financial
assets/(liabilities) at fair value through profit or loss at 31
March 2020
(unaudited) |
Level
1
US$’000 |
Level
2
US$’000 |
Level
3
US$’000 |
Total
US$’000 |
Assets: |
|
|
|
|
Equity investments |
197,573 |
– |
– |
197,573 |
Cash Fund |
56,011 |
– |
– |
56,011 |
Contracts for difference (fair
value) |
– |
1,501 |
3 |
1,504 |
Derivative financial instruments –
currency hedges (fair value) |
– |
1,047 |
– |
1,047 |
Liabilities: |
|
|
|
|
Contracts for difference (fair
value) |
– |
(12,741) |
– |
(12,741) |
Derivative financial instruments –
currency hedges (fair value) |
– |
(13) |
– |
(13) |
|
------------- |
------------- |
------------- |
------------- |
|
253,584 |
(10,206) |
3 |
243,381 |
|
======== |
======== |
======== |
======== |
Financial
assets/(liabilities) at fair value through profit or loss at 31
March 2019
(unaudited) |
Level
1
US$’000 |
Level
2
US$’000 |
Level
3
US$’000 |
Total
US$’000 |
Assets: |
|
|
|
|
Equity investments |
349,854 |
– |
– |
349,854 |
Cash Fund |
65,529 |
– |
– |
65,529 |
Contracts for difference (fair
value) |
– |
1,270 |
3 |
1,273 |
Liabilities: |
|
|
|
|
Contracts for difference (fair
value) |
– |
(4,186) |
– |
(4,186) |
|
------------- |
------------- |
------------- |
------------- |
|
415,383 |
(2,916) |
3 |
412,470 |
|
======== |
======== |
======== |
======== |
Financial
assets/(liabilities) at fair value through profit or loss at 30
September 2019
(audited) |
Level
1
US$’000 |
Level
2
US$’000 |
Level
3
US$’000 |
Total
US$’000 |
Assets: |
|
|
|
|
Equity investments |
322,391 |
– |
– |
322,391 |
Cash Fund |
71,191 |
– |
– |
71,191 |
Contracts for difference (fair
value) |
– |
3,411 |
3 |
3,414 |
Liabilities: |
|
|
|
|
Contracts for difference (fair
value) |
– |
(1,056) |
– |
(1,056) |
|
------------- |
------------- |
------------- |
------------- |
|
393,582 |
2,355 |
3 |
395,940 |
|
======== |
======== |
======== |
======== |
There were no transfer between levels of financial assets and
financial liabilities during the period recorded at fair value as
at 31 March 2020, 31 March 2019 or the year ended 30 September 2019. The Company held one Level 3
security throughout the period ended 31
March 2020.
The values of derivative positions classified as Level 2 as at
31 March 2019 have been restated to
fair value to align with the values presented on the Statement of
Financial Position. The amounts presented in the prior period
financial statements were presented on a gross exposure basis as
follows: total gross exposure on long derivative positions was
presented as an asset of $127,466,000
and total gross exposure on short derivative positions was
presented as a liability of ($27,775,000).
A reconciliation of fair value measurement in Level 3 is set out
below.
Level 3 Financial assets at fair value through profit or loss |
31
March
2020
US$’000
(unaudited) |
31
March
2019
US$’000
(unaudited) |
30
September
2019
US$’000
(audited) |
Opening fair value |
3 |
3 |
3 |
Closing balance |
3 |
3 |
3 |
|
======== |
======== |
======== |
13. RELATED PARTY DISCLOSURE: DIRECTORS’ EMOLUMENTS
The Board consists of five non-executive Directors, all of whom are
considered to be independent of the Manager by the Board. None of
the Directors has a service contract with the Company. With effect
from 1 October 2019, the Chairman
receives an annual fee of £38,000, the Chairman of the Audit and
Management Engagement Committee receives an annual fee of £32,000
and each of the other Directors receives an annual fee of
£28,000.
As at 31 March 2020, an amount of
US$16,000 (£13,000) was outstanding
in respect of Directors’ fees (31 March
2019: US$16,000 (£12,000);
30 September 2019: US$15,000 (£12,000)).
At the period end, members of the Board, including any connected
persons, held ordinary shares in the Company as set out below:
|
Ordinary
shares |
Audley Twiston-Davies |
128,935 |
Katrina Hart |
30,009 |
Nick Pitts-Tucker |
110,148 |
Sarmad Zok |
– |
Stephen White |
30,000 |
|
======== |
14. TRANSACTIONS WITH THE AIFM AND THE INVESTMENT
MANAGER
BlackRock Fund Managers Limited (BFM) provides management and
administration services to the Company under a contract which is
terminable on six months’ notice. BFM has (with the Company’s
consent) delegated certain portfolio and risk management services,
and other ancillary services, to BlackRock Investment Management
(UK) Limited (BIM (UK)). Further
details of this investment management contract are disclosed on
page 42 of the Directors’ Report in the Company’s Annual Report and
Financial Statements for the year ended 30 September 2019.
The investment management fee due for the six months ended
31 March 2020 amounted to
US$2,089,000 (six months ended
31 March 2019: US$2,108,000; year ended 30 September 2019: US$4,429,000). No performance fee is payable for
the six months ended 31 March 2020
(six months ended 31 March 2019:
US$nil; year ended 30 September 2019:
US$nil).
At the period end, US$1,062,000
was outstanding in respect of management fees (31 March 2019: US$2,108,000; 30 September
2019: US$2,385,000). There was
no performance fee outstanding at the period end (31 March 2019: US$nil; 30
September 2019: US$nil).
In addition to the above services, BlackRock has provided the
Company with marketing services. The total fees paid or payable for
these services to 31 March 2020
amounted to US$49,000 excluding VAT
(six months ended 31 March 2019:
US$44,000; year ended 30 September 2019: US$79,000). Marketing fees of US$105,000 excluding VAT (31 March 2019: US$112,000; 30 September
2019: US$147,000) were
outstanding as at 31 March 2020.
The Company has an investment in the BlackRock Institutional
Cash Series plc - US Dollar Liquid Environmentally Aware Fund of
US$56,011,000 as at 31 March 2020 which is a fund managed by a
company within the BlackRock Group (31 March
2019: US$65,529,000 held in
BlackRock’s Institutional Cash Series plc - US Dollar Liquidity
Fund; 30 September 2019: US$71,191,000 held in BlackRock’s Institutional
Cash Series plc - US Dollar Liquid Environmentally Aware Fund).
15. CONTINGENT LIABILITIES
There were no contingent liabilities at 31
March 2020 (six months ended 31 March
2019: nil; year ended 30 September
2019: nil).
16. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information contained in this half yearly report does
not constitute statutory accounts as defined in section 435 of the
Companies Act 2006. The financial information for the six months
ended 31 March 2020 and 31 March 2019 has not been audited.
The information for the year ended 30
September 2019 has been extracted from the latest published
audited financial statements which have been filed with the
Registrar of Companies, unless otherwise stated. The report of the
auditors on those accounts contained no qualifications or statement
under sections 498(2) or 498(3) of the Companies Act 2006.
17. ANNUAL RESULTS
The Board expects to announce the annual results for the year
ending 30 September 2020 in
December 2020.
Copies of the annual results announcement can be obtained from
the Secretary on 020 7743 3000 or at cosec@blackrock.com. The
Annual Report should be available by late December 2020 with the Annual General Meeting
being held in February 2021.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Simon White, Managing Director,
Investment Trusts, BlackRock Investment Management (UK) Limited -
Tel: 020 7743 3000
Press enquiries:
Lansons Communications – Tel: 020 7294 3689
E-mail: BlackRockInvestmentTrusts@lansons.com
28 May 2020
12 Throgmorton Avenue
London EC2N 2DL
END