_jsan22
15 Nov 2018
Blackrock frontiers subsciption offer sorry was writing a proper reply and work got in the way:smile: I agree that given its risk profile you would expect high(er) returns (the fund managers have played down the risk, claiming the fund as a ‘diversifier’, but it’s not one you’d run to in a bear market) I will hold my small piece of BRFI for now, but I’ve passed on the subscription; I imagine if we get a big global sell-off this fund might well be sitting under 100p anyway.
_jsan22
15 Nov 2018
Blackrock frontiers subsciption offer thanks for your response.
Hydrogen_Economy
14 Nov 2018
Blackrock frontiers subsciption offer Jsan22 The sub fund shares issued at 100p will presumably be equivalent to 100/135 of the current shares and will have future price quoted separately, I don’t think that there is anything for nothing here or current holders would be dumping and rebuying! BRFI is an interesting IT, unsurprisingly it has taken a beating in the current high $ environment along with most EM and the frontier fund includes many of the most affected like Argentina. The portfolio looks pretty high risk with banks in Argentina and Kazakhstan (and until recently in Greece and Nigeria). That may all be fine, but I’d be looking for some pretty spectacular returns to compensate for that risk, but the past 7 years are not so encouraging, even if you look at the peak in early 2018 it is OK but no better than many other ITs without such risk. I like Vietnam and Thailand exposure as they are developing strongly and will do well from US suppliers relocating out of China to avoid Trump’s tariffs, but prefer other vehicles. BRFI may well come back strongly from the 2018 or could do the other thing, EM market is in a jumpy mood. image.jpg705x379 51.5 KB
_jsan22
12 Nov 2018
Blackrock frontiers subsciption offer Hello, BRFI are offing sub shares at 100p (currently 135p) the trust is currently on a small premium. any opinions?
Rhigos
07 Jun 2018
Frontier markets for long-term growth "Frontier markets are where the long-term growth is – ignore them at your peril."Article in Money Week by Merryn Somerset Webb.[link] term I agree with Merryn but IMO probable that SP of BRFI will fall more in the next year or two. Already about 7% down on January's all time high. This may be largely down to problems in Argentina and rising USD interest rates.
Rhigos
07 Jun 2018
Dollar strength, interest rates As dollar strengthens and USA interest rise this will put pressure on some of the countries classed as frontier as many have borrowings in US dollars.I am wondering if it is a good time to sell some or all of my BRFI shares because of rising dollar interest rates. The SP has fallen about 8% since high on 19 Jan 2018. There was a big fall in SP in Oct 2014 and it was Aug 2016 before SP recovered. This was I believe because of a squeeze on dollar borrowing. There was an interesting article in Money supplement of Weekend FT recently by Merryn Somerset Webb that high lighted BRFI as a good investment though she was not happy with over weight of investments in Argentina. I have found article in Money Week web page. Will post link separately.
Rhigos
08 Mar 2017
All-time closing high yesterday This fund continues to outperform. SP up 36% in the last 12 months and they have a yield of 3.4%. I now regret taking 14.3% profit when I sold 4/9 of my shares on 15 Nov 2016. My remaining shares now showing a CG of 30%. Total return must have been over 33%.One thing I am nervous about is future interest rate rises in USA. Most of the counties where the fund invest companies there borrow in USD and increasing interest rates will be bad for them.They have a 4 star Morningstar rating (top rating).Incidentally the best performing fund in sector over the last 12 months was TEM up 53% however BRFI outperformed it over 24 months,
nk1999
28 Jan 2017
IC View [link] such as Argentina and Bangladesh present a compelling combination of the countries with the fastest-growing GDP, the best demographic profiles, the lowest government debt and a substantial commodity endowment. It is also possible to find companies with strong cash flow and high dividend yields, on some of the lowest valuations in the world."The trust's highest country weighting is Argentina, followed by Romania and Bangladesh. Its mandate was broadened last year to include Colombia, Egypt, Peru and the Philippines, which the managers think have high growth potential. Although the trust's managers focus on companies' individual attributes, they still consider the wider macroeconomic picture of the country in which a company operates, and the political governance and tax regime. They will not invest in a company before they have met management at least five times, and spend much of their time visiting companies around the world. Mr Vecht claims the team totted up more than 1,200 trips last year alone. BLACKROCK FRONTIERS INVESTMENT TRUST (BRFI) PRICE:142.8pGEARING:2%AIC SECTOR:Global Emerging MarketsNAV:136.3pFUND TYPE:Investment trustPRICE PREMIUM TO NAV:4.7%MARKET CAP:£235mYIELD:3.7%SET-UP DATE:17 December 2010MORE DETAILS:blackrock.comONGOING CHARGE:2.39%*Source:Winterflood Securities as at 19/01/17, *AIC including performance fee Performance Fund/benchmark6-month share price return (%)1-year share price return (%)3-year cumulative share price return (%)5-year cumulative share price return (%)BlackRock Frontiers 165230128Emerging markets investment trusts average9422650MSCI Emerging Markets Free index11513229MSCI Frontier Markets index13382769Source: Winterflood Securities, as at 19/01/17 TOP 10 HOLDINGS, as at 31 December 2016 (%) MCB Bank5.2Mobile Telecommunications4.5Grupo Financiero Galicia4.1Maroc Telecom3.8Banco Macro3.7Square Pharmaceuticals3.5BRD-Groupe Société Générale3.3Halyk Savings Bank3.2Pampa Energia3.2Luxoft3.0Source: BlackRock Investment Management Geographic breakdown, as at 31 December 2016 (%) Argentina15.0Romania10.9Bangladesh9.0Pakistan8.9Kazakhstan8.1Vietnam7.6Sri Lanka6.7Kuwait6.6Morocco 6.2Ukraine6.0Kenya5.5Egypt3.7Nigeria3.4Colombia2.1Estonia2.0Caribbean1.9Slovenia1.8Turkey1.8Philippines1.2"
Rhigos
07 Oct 2016
SP flying SP up over 40% this year. I am glad I topped up this year, though missed bottom by about 20% when bought on 1 June.
II Editor
19 May 2016
NEW ARTICLE: Emerging market shares too cheap to ignore "Emerging markets have been on a miserable run of form over the past five years, weighed down by collapsing commodity prices and slowing economic growth. Political scandals, most notably in Brazil and Turkey, have added to negative sentiment.But ..."[link]
II Editor
04 Feb 2016
NEW ARTICLE: Where should you invest £200,000? "You've got £200,000, you're ready to invest and you don't mind a little adventure - but where should you put that cash? In reply to a letter requesting help, one of the investment experts at our sister website Money Observer offers some ideas.I ..."[link]
Rhigos
21 Dec 2015
Tender Offer Got a message from my Broker company this morning regarding a tender offer." The tender price will be based upon the proceeds from realisation of the tender pool and the proceeds from any onward sale of tendered shares."This is a new situation for me. Anyone any thoughts on it?I know I regret not selling when SP was over 132p in Sep last year.
