Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
BlackRock
Frontiers
Investment
Trust plc
BlackRock Frontiers Investment Trust plc Annual Report and Financial Statements 30 September 2025
Annual Report and Financial Statements 30 September 2025
www.blackrock.com/uk/brfi
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Keeping in touch
We know how important it is to receive up-to-date information about the Company.
To ensure that you are kept abreast, please scan the QR code to the right of this page to visit our
website. If you have a smartphone, you can activate the QR code by opening the camera on your
device and pointing it at the QR code. This will then open a link to the relevant section on the
Company’s website. By visiting our website, you will have the opportunity to sign up to our monthly
newsletter which includes our latest factsheets and market commentary, as well as upcoming events
and webinars. Information about how we process personal data is contained in our privacy policy
available on our website.
Further information about the Company can be found at www.blackrock.com/uk/brfi.
General enquiries about the Company should be directed to the Company Secretary at:
cosec@blackrock.com.
Register here to watch this year’s Annual General Meeting
For the benefit of shareholders who are unable to attend this year’s AGM in person, we have
arranged for the proceedings to be viewed via a webinar. You can register to watch the AGM by
scanning the QR code opposite or by visiting our website at www.blackrock.com/uk/brfi and clicking
the registration banner.
Please note that it is not possible to speak or vote at the AGM via this medium and joining the
webinar does not constitute attendance at the AGM. Shareholders wishing to exercise their right to
attend, speak and vote at the AGM should either attend in person or exercise their right to appoint a
proxy to do so on their behalf. For further details please see page 142 of the Annual Report.
Use this QR code
to take you to
the Company's
website where
you can sign up to
monthly insights
and factsheets.
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Financial
highlights
as at 30 September 2025
226.17 cents
Ordinary share price
+21.9%
1,2
236.03 cents
Net asset value (NAV)
per ordinary share
+15.1%
1,2
+10.6%
Benchmark Index
3
(US$)
10.00 cents
Total dividends
+5.3%
US$446.7m
Net assets
+10.0%
168.00 pence
Ordinary share price
+21.4%
1,2
175.32 pence
NAV per ordinary share
+14.7%
1,2
+10.2%
Benchmark Index
3
(£)
4.4%
2, 4
Yield
£331.8m
Net assets
+9.6%
1
The above financial highlights are at 30 September 2025 and percentage comparisons are year-on-year
against 30 September 2024.
¹ Share price and NAV performance are calculated in Pound Sterling (£) and US Dollar (US$) terms
with dividends reinvested. The share price in US Dollars is derived from the share price in Pound
Sterling and is shown for presentation purposes. Based on an exchange rate of US$1.3463 to £1 at
30 September 2025 and US$1.3414 to £1 at 30 September 2024.
2
Alternative Performance Measure, see Glossary on pages 132 to 137.
3
The Benchmark Index of the Company is the MSCI Frontier + Emerging ex Selected Countries Index.
Total return indices calculate the reinvestment of dividends net of withholding taxes.
4
Based on dividends paid and declared for the year ended 30 September 2025 and share price as at
30 September 2025.
Section 1: Overview and performance 1
Pakistan was one of the standout performing countries during the year, buoyed by International
Monetary Fund (IMF) support, easing of interest rates and a more balanced fiscal picture.
Job No: 101568 Proof Event: 23 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
2 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Why BlackRock
Frontiers
Investment Trust plc?
A member of the Association of Investment Companies
Further details about the Company, including the latest annual and half yearly financial reports, factsheets
and stock exchange announcements, are available on the website at www.blackrock.com/uk/brfi.
Investment objective
The Company’s investment objective is to achieve long-term capital growth by investing in
companies domiciled or listed in, or exercising the predominant part of their economic activity
in, less developed countries. These countries (the “Frontiers Universe”) are any country which is
neither part of the MSCI World Index of developed markets nor one of the eight largest countries
by market capitalisation in the MSCI Emerging Markets Index as at 1 April 2018: being Brazil,
China, India, South Korea, Mexico, Russia, South Africa and Taiwan (the “Selected Countries”).
Reasons to invest
Differentiated growth
opportunity
Investing in frontier markets provides
shareholders with exposure to overlooked
and under-researched markets,
unearthing attractively valued businesses
operating within faster growing economies
and often delivering highly attractive
growth in cash flows and dividends.
Yield
Whilst our investment objective is focused
on capital appreciation, many of the
companies in our portfolio also distribute
meaningful amounts of income. This
revenue has enabled the Company to offer
a consistently attractive dividend yield.
Uncorrelated returns
Frontier markets offer portfolio
diversification and a differentiated source
of returns that tend to move independently
from both each other and developed
markets.
Global flexibility
Understanding the macro political and
economic conditions in each market is
central to the investment process. The
Portfolio Managers have the flexibility to
avoid markets altogether if they do not like
the macro direction of travel.
Closed-end structure
Investment Trusts have an independent
Board of Directors appointed to protect
shareholders’ interests and enhance
shareholder value. The closed-end
structure means the Company does not
have to sell assets to meet redemptions,
making it more suitable for holding less
liquid assets and for taking a longer-term
view. It can also retain a proportion of its
income to help smooth dividend payments
and use gearing with the aim of increasing
returns over time.
Expertise and idea
generation
The Company is managed by BlackRock’s
Global Emerging Markets team and
benefits from its expertise and global reach.
The team has the resources to undertake
extensive, proprietary, on-the-ground
research to get to know the management
of the companies in which it invests. The
Portfolio Managers have worked together
running the portfolio since the Company’s
launch in 2010.
Low volatility
By blending a portfolio of diversified end
market exposure, the overall volatility for
the Company’s index has been consistently
lower than traditional developed and
emerging market indices.
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 1: Overview and performance 3
Why BlackRock
Frontiers
Investment Trust plc?
A member of the Association of Investment Companies
Further details about the Company, including the latest annual and half yearly financial reports, factsheets
and stock exchange announcements, are available on the website at www.blackrock.com/uk/brfi.
Contents
Section 1: Overview and performance
Financial highlights 1
Why BlackRock Frontiers Investment Trust plc? 2
Performance record 4
Chair’s Statement 5
Investment Manager’s Report 11
Section 2: Portfolio
Ten largest investments 19
Portfolio analysis 21
Investments 23
Fair value and gross market exposure of investments 26
Section 3: Governance
Governance structure 30
Directors’ biographies 31
Strategic report 34
BlackRock Investment Stewardship 48
Directors’ report 49
Corporate governance statement 57
Directors’ remuneration report 64
Directors’ remuneration policy 67
Report of the Audit and Management Engagement Committee 69
Statement of Directors’ responsibilities in respect of the Annual Report and
Financial Statements 75
Section 4: Financial statements
Independent Auditor’s report 80
Statement of comprehensive income 87
Statement of changes in equity 88
Statement of financial position 89
Cash flow statement 90
Notes to the financial statements 91
Section 5: Additional information
Analysis of shareholders 122
Historical record 123
Management and other service providers 124
Shareholder information 125
AIFMD report on remuneration (unaudited) 128
Other AIFMD disclosures (unaudited) 129
Information to be disclosed in accordance with Listing Rule 6.6.1 130
Depositary report 131
Glossary 132
Section 6: Annual general meeting
Notice of annual general meeting 140
Share fraud warning 144
Cover image: Bosphorus Bridge, Istanbul, Turkey.
Job No: 101568 Proof Event: 23 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
4 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
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 Pound Sterling. The Pound Sterling amounts for performance returns shown below are presented for convenience.
The difference in performance returns measured in US Dollars and in Pound Sterling reflects the change in the value of Pound
Sterling versus the US Dollar over the period.
As at
30 September
2025
As at
30 September
2024
US Dollar
Net assets (US$’000)
1
446,738 406,243
Net asset value per ordinary share (cents) 236.03 214.57
Ordinary share price (cents)
2
226.17 194.50
Pound Sterling
Net assets (£’000)
1,2
331,839 302,850
Net asset value per ordinary share (pence)
2
175.32 159.96
Ordinary share price (pence) 168.00 145.00
Discount
3
4.2% 9.4%
Performance
For the year
ended
30 September
2025
%
For the year
ended
30 September
2024
%
For the 5 year
period ended
30 September
2025
%
Since
inception
4
%
US Dollar
Net asset value per share (with dividends reinvested)
3
+15.1 +16.5 +128.7 +168.1
Benchmark Index
5,6
+10.6 +15.7 +58.6 +81.9
MSCI Frontier Markets Index
6
+36.2 +15.1 +65.1 +108.1
MSCI Emerging Markets Index
6
+17.3 +26.1 +40.4 +73.5
Ordinary share price (with dividends reinvested)
3
+21.9 +15.8 +133.4 +155.7
Pound Sterling
Net asset value per share (with dividends reinvested)
3
+14.7 +6.0 +119.4 +209.3
Benchmark Index
5,6
+10.2 +5.3 +52.4 +109.1
MSCI Frontier Markets Index
6
+35.7 +4.7 +58.5 +141.1
MSCI Emerging Markets Index
6
+16.9 +14.7 +34.8 +101.0
Ordinary share price (with dividends reinvested)
3
+21.4 +5.4 +124.0 +194.5
NAV performance Share price performance
MSCI Frontier Markets Index
6
All performance figures calculated on a US Dollar basis with dividends reinvested, rebased to 100 at 17 December 2010.
70
90
110
130
150
170
190
210
230
250
270
290
Benchmark Index
5,6
MSCI Emerging Markets Index
6
D
e
c
1
0
S
e
p
1
1
S
e
p
1
3
S
e
p
1
2
S
e
p
1
4
S
e
p
1
5
S
e
p
1
6
S
e
p
1
7
S
e
p
1
8
S
e
p
1
9
S
e
p
2
1
S
e
p
2
2
S
e
p
2
5
S
e
p
2
4
S
e
p
2
3
S
e
p
2
0
Performance since inception on 17 December 2010 to 30 September 2025
1
The change in net assets reflects dividends paid and portfolio movements during the year.
2
Based on an exchange rate of US$1.3463 to £1 at 30 September 2025 and US$1.3414 to £1 at 30 September 2024.
3
Alternative Performance Measures, see Glossary on pages 132 to 137.
4
The Company was incorporated on 15 October 2010 and its shares were admitted to trading on the London Stock Exchange on
17December 2010.
5
With effect from 1 April 2018, the Benchmark Index changed to the MSCI Frontier + Emerging ex Selected Countries Index. Prior to
1 April 2018, the Benchmark Index was the MSCI Frontier Markets Index. The performance returns of the Benchmark Index since
inception have been blended to reflect this change.
6
Total return indices calculate the reinvestment of dividends net of withholding taxes.
Sources: BlackRock and LSEG Datastream.
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 1: Overview and performance 5
Dear
Shareholder
Performance overview
Over the year to 30 September 2025, your Company’s Net Asset Value (NAV) per
share produced a total return in US Dollars of +15.1%, compared to an increase in
the Benchmark Index of +10.6%, resulting in outperformance of +4.5%
1
. In Pound
Sterling terms, the equivalent return for the year was +14.7%, with the Benchmark Index
returning +10.2%
1
. This means that your Company’s NAV has risen by +168.1% since
launch in late 2010, more than double the Benchmark Index return of +81.9% (in US
Dollar terms).
Your Company continues to provide shareholders with differentiated access to
high quality businesses across a diverse and uncorrelated range of frontier and
smaller emerging markets. These markets remain under-researched and often
trade at valuations well below those of developed economies, creating compelling
opportunities for active investors. Over the past year, many countries in our
investment universe have demonstrated resilience despite global tariff tensions and
geopolitical uncertainty, supported by stronger domestic fundamentals, currency
stability and economic policy reforms.
Our portfolio managers provide a detailed description of the key contributors to
and detractors from performance during the period, insight into the positioning of
the portfolio and their views on the outlook for the forthcoming year in their report,
which follows on pages 11 to 15.
Revenue and dividends
The Company’s revenue return per share for the year amounted to 10.15 cents
(2024: 9.97 cents). The Directors are recommending the payment of a final
dividend of 6.35 cents per ordinary share (2024: 6.00 cents) in respect of the year
ended 30 September 2025. Together with the interim dividend of 3.65 cents per
share (2024: 3.50 cents), this represents a total of 10.00 cents per share (2024:
9.50 cents) and an increase of 5.3% over the previous year.
Whilst the Company does not have a policy of actively targeting income from the
underlying portfolio, we are nevertheless very proud of our track record of strong
income performance such that the Company has produced an average annualised
dividend yield of over 4.0% every year since launch in 2010. This year’s dividend
represents a yield of 4.2%, based on the closing share price on 8 December 2025,
being the last practicable date prior to the publication of this report (please see the
Glossary on page 137 for the inputs to the yield calculation).
Subject to shareholder approval, this dividend will be paid on 26 February 2026
to shareholders on the register at close of business on 5 January 2026. The ex-
dividend date will be 2 January 2026.
Chair’s Statement
Katrina Hart
Chair
1
All numbers are stated with dividends reinvested.
6 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Fees and charges
Following its continued strong outperformance of the Benchmark Index, the Manager generated a performance fee of
US$5,980,000 for the year ended 30 September 2025 (2024: US$3.5m). As is best practice, the performance fee is subject to a
cap and a high water mark. This mechanism requires the Manager to catch up any cumulative underperformance against the
Benchmark Index since launch before a performance fee can be generated. The resource-intensive nature of the strategy, the
expertise required to navigate frontier markets successfully and the capacity constraints they entail support the Company’s
prevailing fee arrangements. The performance fee and other aspects of the Company’s fee structure are regularly reviewed by
the Board to ensure they remain appropriate.
Further details of the Company’s costs and charges can be found in note 4 on page 96 and in the Glossary on page 136.
Share capital management
The Directors believe that in normal market conditions the Company’s shares should trade at a sustainably narrow discount
or premium to NAV. As such, we monitor this relationship closely and receive regular updates from the Manager and our
corporate broker, Winterflood Securities. For the year under review, the Company’s ordinary shares traded at an average
discount to NAV of 6.4% and were trading at a discount of 3.2% on a cum-income basis at 8 December 2025, being the
latest practicable date prior to the issue of this report. It is important to consider the discount in the context of wider market
conditions, with investor sentiment, and hence discounts, being influenced by various external factors. The Company’s
discount compares favourably to the average discount of the AIC Global Emerging Markets sector, which stood at 3.4% on
8 December 2025, the latest practicable date prior to the publication of this report.
We believe the best way to avoid the Company’s shares trading at a wide discount is to offer a relevant mandate, deliver strong
investment performance at a fair price and communicate the unique attractions of the proposition to both existing and new
shareholders effectively. To this end, during the year the Board initiated a project to understand investors’ perceptions of the
Company with the help of an external agency. This identified areas that required better explanation and greater emphasis,
enabling us to refine our marketing strategy to ensure more effective communication. Your Company has a fantastic story to
tell and the Board wants as many people as possible to hear it.
In addition, the Board may deem it beneficial to buy back or issue shares to manage imbalances between supply and demand,
with the intention of reducing the volatility of the premium or discount. During the year, the Company bought back 55,500
ordinary shares at an average discount of 10.0% for a total cost of US$107,000. All shares were placed into treasury. No shares
were issued during the year under review. Since the year end, no shares have been bought back or issued as at the date of this
report, while the discount has narrowed.
Periodic opportunities for 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 any number of their ordinary shares at the prevailing NAV per ordinary share less applicable
costs. This mechanism has provided good optionality for shareholders. Accordingly, it is proposed that all shareholders will be
given the opportunity to tender their shares for purchase by Winterflood Securities (the Company’s broker) in February 2026.
The Board is aware that certain investors may wish to increase their shareholdings in the Company and, as part of the tender
offer, the Company’s broker will have the ability to invite investors to acquire tendered shares from it in the market rather than
the Company repurchasing such shares.
Section 1: Overview and performance 7
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The tender offer proposals will require the approval of shareholders at a General Meeting which is expected to be held on
23 February 2026 immediately after the Company’s AGM. Full details of the proposals are set out in the Circular dated
10 December 2025 which has been posted to shareholders together with this Annual Report. If the number of shares tendered
is such that the Directors are of the view that the continuation of the Company is not in the best interests of continuing
shareholders, they may withdraw the tender offer and in such circumstances the Company will put forward alternative
proposals to shareholders. All Directors, with the exception of Christopher Casey, who only recently joined the Board, hold
shares in the Company and no Director will exercise his or her option to exit for cash. You can read more about the outlook for
the Company and why you might wish to retain your shareholding in the Investment Manager’s Report which follows on pages
11 to 15.
Gearing
One of the advantages of the investment trust structure is that the Company can use gearing with the objective of increasing
portfolio returns over the longer term. The Company continued to gear the portfolio through the use of both long and short
contracts for difference during the year. As at the year end, net gearing stood at 10.6%, reflecting the Investment Manager’s
constructive view on the outlook for smaller emerging and frontier markets. This compares with 4.0% at the start of the
financial year.
Board composition
As at 30 September 2025, the Board consisted of five independent non-executive Directors. As part of its succession planning,
the Board regularly considers its composition to ensure that a suitable balance of skills, knowledge, experience, independence
and diversity is achieved to enable the Board to discharge its duties most effectively. The Directors submit themselves for
re-election annually and therefore all Directors will stand for either election or re-election at the forthcoming AGM, with the
exception of Stephen White, who is stepping down at the end of his nine-year tenure.
As part of the Board’s succession plans, and as announced on 26 June 2025, Christopher Casey was appointed a non-
executive Director of the Company with effect from 1 October 2025. Christopher has extensive experience as a non-executive
director and audit committee chairman of public companies and, in particular, investment trusts. You can read his full
biography on page 33. We are delighted to welcome Christopher and believe he will be a great asset to the Board.
With effect from the conclusion of this year’s AGM, Christopher will succeed Stephen as Chair of the Company’s Audit and
Management Engagement Committee. I would like to take this opportunity to place on record our deep gratitude to Stephen,
who has led our Audit Committee and Management Engagement with great skill and diligence during his tenure. He will be
missed and we wish him well in all his future endeavours.
Further information on the Directors’ backgrounds and experience can be found on pages 31 to 33.
Corporate governance
The Board takes its governance responsibilities very seriously and follows best practice wherever possible. The UK Code of
Corporate Governance (the UK Code) requires enhanced disclosure setting out how we, as Directors, have fulfilled our duties,
taking into account the wider interests of stakeholders in promoting the success of the Company.
As it does each year, and as required by the UK Code, the Company undertook a comprehensive Board evaluation during
the year. The conclusion was very positive in terms of the effectiveness of the Board overall and the skills, expertise and
commitment of the individual Directors. The combination of a clear succession plan, structured search and selection process
when making new appointments and thorough annual performance evaluation means that the Board remains confident that
each Director is discharging their role effectively.
Board diversity
I am pleased to report that the Board is compliant with the recommendations of the Parker Review on ethnic diversity and the
FTSE Women Leaders Review and, at the date of this report, we have a 50:50 female to male gender ratio. In accordance with
the Listing Rules, we have also disclosed the ethnicity of the Board and our policy on matters of diversity. The disclosures can
be found on pages 58 and 59.
8 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Annual general meeting
This year’s AGM will be held at 1.00 p.m. on Monday, 23 February 2026 at the offices of BlackRock at 12 Throgmorton Avenue,
London, EC2N 2DL. Details of the business of the meeting are set out in the Notice of Annual General Meeting on pages 140
to 143 of this Annual Report.
Prior to the formal business of the meeting, our Investment Managers will make a presentation to shareholders. This will be
followed by a question and answer session. Shareholders who are unable to attend the meeting in person but who wish to
follow the AGM proceedings can do so via a live webinar this year. Details on how to register, together with access details, will
be available shortly on the Company’s website at: www.blackrock.com/uk/brfi. It is not possible to attend, speak or vote via this
medium and it is solely intended to provide shareholders with the ability to watch the proceedings.
Additionally, if you are unable to attend you can exercise your right to vote by proxy or appoint a proxy to attend in your place.
Details of how to do this are included on the AGM Proxy Card provided to shareholders with the annual report. If you hold your
shares through a platform or nominees, you will need to contact them and ask them to appoint you as a proxy in respect of
your shares in order to attend, speak and vote at the AGM. Further information on the business of this year’s AGM can be found
in the Notice of the Annual General Meeting on pages 140 to 143.
The Board very much looks forward to meeting shareholders and answering any questions you may have on the day. We hope
you can attend this year’s AGM.
Shareholder communication
The Board takes its responsibilities very seriously and is committed to exercising the highest standard of corporate
governance, seeking to engage with all shareholders where possible. I was delighted to meet with a number of our
shareholders during the year. As always, it is invaluable to share views on the Company as well as the wider sector and I look
forward to staying in regular dialogue going forward.
We appreciate how important access to up-to-date information is to our shareholders. To supplement our Company website,
we continue to offer shareholders the ability to sign up to the Trust Matters newsletter which includes information on the
Company as well as news, views and insights. Further information on how to sign up is included on the inside cover of this
report.
In order to facilitate greater attendance and participation at the Company’s AGM, we have sought to engage with shareholders
who hold their shares through an intermediary or platform via the provisions of Section 793 of the Companies Act 2006.
The Board encourages all shareholders to either attend the AGM or exercise your right to vote by proxy. The Board is aware
that certain execution only investment platforms are now providing shareholders with the ability to vote electronically. We
encourage shareholders to take advantage of this functionality where it is available.
Should shareholders wish to contact me, you can do so by emailing me at chairbrfi@blackrock.com or by writing to the
Company Secretary at the address given on page 124.
Outlook
Our Portfolio Managers continue to demonstrate the benefits of active management in frontier and smaller emerging markets.
Since the financial year end and up to close of business on 8 December 2025, the Company’s NAV has increased by +3.1%
compared with an increase in the Benchmark Index of +1.5%, representing outperformance of +1.6%. For Pound Sterling
based shareholders, the equivalent return for the financial year to date is +4.3%, with the Benchmark Index returning +2.6%,
representing outperformance of 1.7%
1
.
Looking ahead, we expect the supportive dynamics that helped drive performance gains in the year under review to persist.
Signs of easing global interest rates and a softer US Dollar provide a constructive backdrop for our target markets, enabling
central banks to resume monetary easing and stimulate growth. This, combined with favourable demographics, improving
liquidity conditions and relatively low debt levels, positions these economies for continued cyclical recovery. Valuations remain
attractive both in absolute terms and relative to history, while limited institutional coverage continues to create inefficiencies
that reward deep research and conviction-driven investing. As investors finally seek out alternative sources of growth away
from the Magnificent Seven, we expect attention to turn towards the compelling opportunities within our investment universe,
as demonstrated by the recent recovery in fund flows into emerging markets.
Section 1: Overview and performance 9
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
My fellow Directors and I therefore see good reasons to share the Managers’ confidence in the outlook for the portfolio, which
is in skilled and experienced hands, supported by BlackRock’s extensive research resources. In summary, we believe your
Company is well positioned to maintain its long track record of providing shareholders with strong and uncorrelated returns,
as well as an attractive income stream.
Thank you for your continued support.
KATRINA HART
Chair
10 December 2025
Section 1: Overview and performance 11
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Investment
Manager’s Report
Overview
Our top-down conviction has incrementally strengthened in select smaller markets, notably Egypt,
Turkey and Pakistan. In Egypt, robust population growth, improved global capital availability as US
rates ease, and a reduction in Middle-East tensions create a supportive backdrop. We see interesting
developments in digitalisation and instant payment networks. In Turkey, the disinflationary trend
has opened the door for rate cuts as inflation normalises, which could unlock significant upside
for equities trading at historically low valuations. Meanwhile, Pakistan has seen sentiment improve
on the back of IMF support, easing interest rates and a more balanced fiscal outlook. Sovereign
credit rating upgrades and a US trade agreement granting preferential tariff treatment have further
enhanced competitiveness.
We have reduced exposure in Thailand and Indonesia given certain headwinds. In Thailand, high
household leverage, muted credit growth and political uncertainty have constrained consumption
and delayed reforms, while economic activity remains soft. In Indonesia, policy uncertainty, weak
consumption and pressure from lower commodity exports and bank margins have weighed on
sentiment. Despite some long-term positives, near-term risks justify a more cautious stance.
Market review
The global investment landscape over the last twelve months has largely been shaped by
geopolitical uncertainty and tariff worries. While tariff developments have introduced new
considerations for investors, the overall backdrop has remained constructive for our investment
universe. Frontier and smaller emerging markets have shown resilience, supported primarily by
stronger domestic fundamentals. A softer US Dollar has helped ease debt burdens and attract
foreign inflows, and early signs of a shift toward lower global interest rates may offer central banks in
these regions greater flexibility to stimulate growth.
In terms of performance, a variety of different markets within our investment universe have done
well. Pakistan (+101.4%) emerged as one of the standout performers over the past year, buoyed
by International Monetary Fund (IMF) support, easing of interest rates and a more balanced fiscal
picture. Colombia (+73.8%), Kenya (+73.1%), Slovenia (+72.1%) and Greece (+71.5%) also showed
extremely strong returns over the year, driven by similar trends of economic reacceleration post a
period of government fiscal consolidation. Sri Lanka (+63.0%) delivered strong returns following its
exit from sovereign default, supported by successful debt restructuring and easing inflation.
Emily FletcherSam Vecht
for the year ended 30 September 2025
Pakistani conglomerate Lucky Cement was the portfolio’s top performer. One of
the largest cement producers in the country, the company also includes chemicals,
passenger vehicle assembly and power generation businesses.
12 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Amongst the larger Association of South East Asian (ASEAN) markets, Indonesia and Thailand faced headwinds from slowing
economic activity. Indonesia (-22.1%) was the weakest performer, as significant shifts in government spending priorities
under the new President Prabowo Subianto resulted in disruptions to the domestic economy and saw consumption slow.
Investor confidence was further shaken by President Prabowo Subianto’s abrupt replacement of Finance Minister Sri Mulyani
Indrawati, raising concerns about policy continuity. Thailand (-8.5%) also experienced a growth slowdown during the first half
of 2025, with softer performance across exports, household spending and tourism. Thai tourist arrivals fell by 7.4% year-on-
year in the first nine months of 2025, a much greater fall than was expected. The Philippines (-17.0%) also underperformed,
dragged down by the large bellweather banks, which fell on concerns that interest margins and earnings would be dragged
down by future rate cuts and real estate stocks, which fell on weak demand. However, one market stood out; Vietnam rose by
+37.3% as the equity market anticipated the upgrade to FTSE Emerging Market status, which was announced in October
2025 and scheduled for September 2026.
In Europe and the Middle East (EMEA), the Czech Republic (+61.4%) was a standout performer. The banking sector performed
very strongly as loan growth was reported above expectations and the sector also re-rated upwards as investors saw that the
high dividends on offer could be sustained. Poland and Hungary benefited from an uptick in foreign fund inflows, rising by
+35.0% and +47.7% respectively, as sentiment remained positive, allowing the economy to benefit from a stronger currency
and lower interest rates. The United Arab Emirates (UAE) (+34.6%) surged on solid corporate earnings across the banking
and real estate sectors and continued foreign investor interest, supported by record demand in the property market. Turkey
(-2.0%) was hurt by political uncertainty with the arrest of opposition leader Immamoglu. However, the country has made solid
progress on a disinflationary path, which has allowed the central banks to start a rate-cutting cycle. If Turkey continues along
this path with inflation falling to normalised levels, then the market looks exceptionally cheap relative to history.
Elsewhere, Kenya posted strong gains, rising by +73.1% in the last 12 months, as the central bank was able to assuage
concerns around its ability to fund in the public markets. Since then, we have seen a series of interest rate cuts by the central
bank, and stabilising asset quality in the banks, which has led to a meaningful re-rating. The country has also continued to
build foreign exchange reserves through 2025 on the back of strong exports.
In Latin America, Chile (+27.4%) posted strong returns as the economy expanded in the first half of 2025, driven by domestic
demand. Whilst political uncertainty ahead of the November election remains a concern, expectations for a market-friendly
outcome have helped stabilise sentiment. Lower interest rates provided additional support, and recent US trade actions had
minimal impact, given Chile’s relatively low average tariffs compared to other regions.
From the road
Over the past year, we travelled across numerous key markets, meeting management teams and industry participants. These
insights helped us consider many interesting opportunities for the portfolio, meeting businesses across a broad spectrum
from local champions to small niche SMEs.
Visits to Poland and the Czech Republic early in the year confirmed our positive opinion on Financials. We expected loan
growth in both countries to beat expectations as economic activity picked up, which we have duly seen through the year. We
believe the high relative interest rates in Central Europe compared to the Eurozone have attracted, and will continue to attract,
substantial portfolio flows, lowering the cost of capital and benefiting exchange rates across the region, thereby providing a
favourable investment dynamic.
In the Middle East, our discussions in the UAE reinforced confidence in Dubai’s position as a global hub. The business
environment continues to improve, underpinned by strong infrastructure and a clear ambition to attract international
investment. In an ideal geographical location between East and West, we see the UAE continuing to bolster its status as a
global financial hub. Our trip to Saudi Arabia highlighted increasing centralisation of economic activity in Riyadh, with fewer
businesses thriving outside the capital. Whilst the country’s transformation remains significant, we anticipate some slowdown
on mega project spend over the next few years. Despite these adjustments, there remain pockets of opportunity in a market
that is still significantly underrepresented in global emerging market portfolios versus the benchmark weight.
Thailand is another country where our ideas are more idiosyncratic, although we remain somewhat cautious on the overall
market outlook. We believe the country needs significant structural reform to re-energise growth, which has been difficult to
achieve in the unstable political set up that we saw for much of 2025. Household leverage is high, currently around 87% of
gross domestic product (GDP), which constrains consumption and investment. Banks continue to grapple with asset quality
challenges, with Stage 2 and 3 loans forming a significant portion of loan books, and credit growth remains muted. To date,
economic activity has been soft, reflected in negative same-store sales across retailers and a sluggish tourism recovery. The
market has been a substantial underperformer and hence we have been able to find some opportunities with substantial
valuation dislocation.
Section 1: Overview and performance 13
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Our trip to Indonesia highlighted a more challenging backdrop than expected. A significant shift in policy direction post-
election last year has created somewhat of a hiatus as local businesses adjust to these new directives. This has had a knock-on
impact on consumption which remains weak with negative same-store sales, while international commodity price softness has
added further pressure as the value of exports in nickel and coal has fallen. Banks face earnings headwinds from narrowing
margins as interest rates decline, while corporates maintain a cautious stance on investment. On the positive side, government
programmes such as village lending are evolving, and fintech players continue to scale profitably. Electric vehicle (EV)
adoption is gaining traction, supported by local production plans. Despite near-term challenges, the market appears oversold.
With anticipated improvement in liquidity and fiscal support in second half of 2025, we expect a rebound.
Another market we visited was Argentina, where we spent time in the capital, Buenos Aires. In our view, political decision-
making remains highly centralised, with fiscal consolidation a key positive likely to hold. However, foreign exchange pressures
make sustaining growth without a devaluation challenging, and we maintained a cautious view on the sustainability of current
policy through 2025.
Portfolio review
In the 12 months to 30 September 2025, the Company’s NAV returned +15.1% (on a US Dollar basis with dividends
reinvested), outperforming its Benchmark Index (the MSCI Frontier + Emerging ex Selected Countries Index), which returned
+10.6%. Over the same period, the MSCI Emerging Markets Index returned +17.3% and the MSCI Frontier Markets Index
rose by +36.2%. Since inception, the Company’s NAV has returned +168.1%, compared with +81.9% for its Benchmark Index.
For reference, the MSCI Frontier Markets Index and the MSCI Emerging Markets Index have returned +108.1% and +73.5%,
respectively (all percentages in US Dollar terms with dividends reinvested).
Hungarian bank OTP Bank was another significant contributor to performance.
Its stock reached an all-time high price in January 2025.
PHOTO COURTESY OF OTP BANK
14 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 3 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Stock picks across a variety of different markets and sectors performed well. The largest contributor to returns was our holding
in Lucky Cement (+167.5%), a Pakistani conglomerate with businesses in local cement production, chemicals, passenger
vehicle assembly and power generation, as well as international cement operations in the Middle East and Africa. The stock
gained on improved activity as interest rates came down quite significantly in Pakistan, coupled with solid FY earnings, a 22%
rise in August exports, and analyst upgrades. Our position in Lion Finance Group (+117.5%) (previously Bank of Georgia)
also contributed to returns as the bank saw steady growth in its loan book and deposits, driven by digital banking initiatives
and favourable macroeconomic trends. Eldorado Gold (+65.8%), the Turkish gold mine operator, was another contributor
as the rise in gold prices pushed the stock higher. Emaar Properties (+61.7%) helped performance as the stock gained on
acceleration in pre-sales, reflecting the strong demand in the UAE, along with strong Q3 2024 results and a higher than
expected dividend announcement in the second half of 2024. Our position in Hungarian bank OTP Bank (+71.7%) also
contributed as the stock reached an all-time high in January 2025.
On the flipside, our IT services exposure detracted as the sector sold off more broadly on the back of concerns about the
potential impact of tariffs on US growth. All three of our holdings in the sector, Vietnamese IT services company FPT (-26.1%),
CIS region founded EPAM Systems (-24.2%) and Central European based Endava Systems (-56.2%), affected performance.
Another area where the portfolio saw challenged performance was in the Philippines. The country had a tough start to 2025,
declining -9.8% in January, negatively impacted by elevated US interest rates, global trade shocks and a tight labour market.
This impacted our holdings in the Philippines-based resort and casino operator Bloomberry (-55.3%) and property developer
Ayala Land (-35.0%).
Turkish gold mine operator Eldorado Gold was another notable contributor
to performance, as rising gold prices pushed the stock higher.
PHOTO COURTESY OF ELDORADO GOLD
Section 1: Overview and performance 15
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
We made some tactical changes to the portfolio over the 12-month period. We increased our exposure to Pakistan, reflecting
our constructive view on the country’s economic adjustment programme and the positive impact of interest rate cuts and
IMF support. This was expressed primarily through additions to Lucky Cement and MCB Bank, which benefited from strong
corporate earnings and improved fiscal dynamics. In Turkey, we added to Akbank and Türkiye İş Bankası, taking advantage of
market weakness and maintaining conviction in the longer-term outlook, even as political volatility persisted. We also rotated
our Eastern European exposure, initiating positions in PKO Bank Polski and topping up Polish retailer LPP, as we see these
markets as potential beneficiaries of improving regional stability and consumer confidence. In Georgia, we shifted our bank
holdings from Lion Finance Group to TBC Bank, favouring the latter’s growth prospects in Uzbekistan. Within Indonesia, we
rotated our bank exposure from Bank Central Asia to Bank Mandiri, attracted by its favourable valuation and expectations of
an improvement in the liquidity environment. In Thailand, we initiated a position in Krungthai Card, taking advantage of a very
attractive entry price due to technical selling. We increased our exposure to the UAE, adding to Emaar Properties on our view
that the property sector remains healthy, seeing sustained growth in pre-sales. We trimmed positions in OTP Bank, Eldorado
Gold, Moneta Money Bank, Raiffeisen Bank and Athens International Airport to lock in gains after strong performance. We
exited Safaricom in Kenya, NagaCorp in Cambodia, and Astra in the Philippines, and reduced holdings in Indonesian property
developers due to sector-specific concerns.
Outlook
The past 12 months have underscored our view that intensifying geopolitical fragmentation is reshaping global investment
flows, driving competition among major economies while creating opportunities for neutral countries through increased
foreign direct investment as new alliances emerge. Frontier and smaller emerging markets benefited from policy reforms,
currency stability and IMF support, positioning them as attractive destinations for active managers. Meanwhile, easing US
Dollar strength and signs of lower global interest rates provided tailwinds for risk assets, even as tariff tensions and political
uncertainty weighed on developed markets. Many smaller countries are finally enjoying easier domestic liquidity conditions
as post COVID-19 related government fiscal consolidation has stabilised. These countries are now seeing domestic economic
activity stabilise, and in many cases start to accelerate. Looking ahead, we expect continued opportunities in under-
researched markets as global capital adapts to a more polarised world.
We believe the frontier and smaller emerging markets present a differentiated opportunity set within the global investment
universe. These economies often operate on distinct and asynchronous cycles, shaped by domestic policy developments,
liquidity conditions and local demand patterns. Their limited representation in global indices and relatively low levels of
institutional coverage contribute to inefficiencies, while valuations in many of these markets remain modest compared to
larger peers. These characteristics create an environment where cyclical shifts can offer meaningful opportunities, particularly
important in times of elevated market uncertainty.
In summary, we remain constructive on the outlook for smaller emerging and frontier markets. With inflation easing across
many of our key markets and US bond yields remaining relatively stable, we anticipate that central banks in our target
countries will resume interest rate cuts in the near term. This backdrop sets the stage for a cyclical recovery in domestically
driven economies. Valuations across our investment universe remain attractive, both in absolute and relative terms. Many
of these markets are still under-researched, and we believe this creates fertile ground for finding high-conviction, alpha-
generating opportunities.
SAM VECHT AND EMILY FLETCHER
BlackRock Investment Management (UK) Limited
10 December 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 2: Portfolio 17
Portfolio
United Arab Emirates real estate development company Emaar
Properties was the portfolio’s largest holding at year end.
PHOTO COURTESY OF EMAAR PROPERTIES
Job No: 101568 Proof Event: 33 Black Line Level: 5 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
10
7
4
1
9
6
3
8
5
2
PHOTOS COURTESY OF EMAAR PROPERTIES, AL RAJHI BANK, OTP BANK, LPP, PZU, ELDORADO GOLD.
18 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Section 2: Portfolio 19
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Ten largest
investments
1
1
Emaar Properties
(2024: 2nd)
Real Estate (United Arab Emirates)
Portfolio value: US$21,152,000
Percentage of net assets: 4.7% (2024: 4.4%)
Emaar Properties is an Emirati real estate developer. The company is involved in property investment, development, shopping malls,
retail centres, hospitality and property management services and serves customers in the United Arab Emirates (UAE).
2
Al Rajhi Bank
2
(2024: 22nd)
Financials (Saudi Arabia)
Portfolio value: US$19,211,000
Percentage of net assets: 4.3% (2024: 2.1%)
Al Rajhi Bank is a Saudi Arabia-based bank, which is engaged in banking and investment activities in the Kingdom of Saudi Arabia and
internationally. The company operates through four segments: retail; corporate; treasury; and investment services, brokerage and other.
3
Bank Mandiri (2024: n/a)
Financials (Indonesia)
Portfolio value: US$17,543,000
Percentage of net assets: 3.9% (2024: nil%)
Bank Mandiri is one of the largest banks in Indonesia offering a wide range of financial services including retail, corporate, and
investment banking. It plays a significant role in the Indonesian banking sector.
4
OTP Bank (2024: 4th)
Financials (Hungary)
Portfolio value: US$17,309,000
Percentage of net assets: 3.9% (2024: 3.6%)
OTP Bank is a leading financial institution in Hungary providing a wide range of retail, private, and commercial banking services. The
bank offers savings and current accounts, personal and corporate loans, credit and debit cards and investment products. OTP Bank is
known for its innovative digital banking solutions and extensive network of branches and ATMs across Hungary.
5
LPP (2024: 46th)
Consumer Discretionary (Poland)
Portfolio value: US$16,565,000
Percentage of net assets: 3.7% (2024: 0.9%)
LPP is a Polish multinational fashion group headquartered in Gdańsk, Poland. The company specializes in the distribution of clothing,
footwear, accessories, as well as home and pet products, offered under its own brands through an extensive network of brick-and-
mortar stores and e-commerce channels.
as at 30 September 2025
Together, the Company’s ten largest investments represented 37.4% of the
Company’s portfolio as at 30 September 2025 (2024: 35.0%)
20 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 33 Black Line Level: 5 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Ten largest investments
1
continued
6
Etihad Etisalat
2
(2024: 7th)
Communication Services (Saudi Arabia)
Portfolio value: US$16,541,000
Percentage of net assets: 3.7% (2024: 3.1%)
Etihad Etisalat is also known as Mobily and is a Saudi Arabia-based telecommunications operator. The company manages, installs,
and operates telephone networks, terminals and telecommunication unit systems. It also sells and maintains mobile phones and
telecommunication units in Saudi Arabia.
7
PZU (2024: 20th)
Financials (Poland)
Portfolio value: US$15,460,000
Percentage of net assets: 3.5% (2024: 2.3%)
Powszechny Zaklad Ubezpieczen, commonly known as PZU, is an insurance company operating in Poland. The company provides life
and non-life insurance products and services in Poland, the Baltic States, and Ukraine.
8
Akbank (2024: n/a)
Financials (Turkey)
Portfolio value: US$15,020,000
Percentage of net assets: 3.3% (2024: nil%)
Akbank provides various banking products and services in Turkey and internationally. The company offers consumer credit, credit
cards, wealth management, health and life insurance, pension plans and other banking services through its branches in Turkey and
overseas.
9
Lucky Cement (2024: 26th)
Materials (Pakistan)
Portfolio value: US$14,666,000
Percentage of net assets: 3.3% (2024: 2.0%)
Lucky Cement is a Pakistan-based cement manufacturing company. The principal activity of the company is manufacturing and
marketing of cement. Other activities include polyester, soda ash, pharma, life sciences and chemicals, automobiles and mobile phone
assembly and power generation.
10
Eldorado Gold (2024: 10th)
Materials (Turkey)
Portfolio value: US$13,844,000
Percentage of net assets: 3.1% (2024: 2.5%)
Eldorado Gold is a mid-tier gold and base metals producer with over 30 years of experience in building and operating mines. The
company has mining, development, and exploration operations in Turkey, Canada, and Greece.
1
Gross market exposure as a % of net assets.
2
Exposure gained via contracts for difference (CFDs) only.
The market value shown is the gross exposure to the shares through equity investments and long derivative positions. For equity
investments, the market value is the fair value of the shares. For long derivative positions, it is the market value of the underlying shares
to which the portfolio is exposed via the contract.
Percentages in brackets represent the portfolio holding as at 30 September 2024.
Arrows indicate the change in the relative ranking of the position in the portfolio compared to its ranking as at 30 September 2024.
Section 2: Portfolio 21
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Portfolio analysis
as at 30 September 2025
Country allocation: Absolute weights (Gross market exposure as a % of net assets)
1
Saudi Arabia – 16.0%
United Arab Emirates – 11.3%
Turkey – 10.6%
Poland – 9.5%
Indonesia – 6.9%
Greece – 6.8%
Kazakhstan – 6.1%
Thailand – 6.0%
Pakistan – 5.9%
Hungary – 5.6%
Vietnam – 4.6%
Kenya – 4.2%
Georgia – 4.1%
Bangladesh – 3.8%
Philippines – 3.4%
Global – 2.7%
Malaysia – 2.3%
Egypt – 1.9%
Chile – 1.4%
Czech Republic – 0.9%
Indonesia – 15.5%
Saudi Arabia – 14.3%
Philippines – 8.6%
United Arab Emirates – 8.3%
Thailand – 7.3%
Hungary – 6.7%
Kazakhstan – 6.0%
Poland – 5.7%
Turkey – 4.8%
Pakistan – 4.1%
Kenya – 3.5%
Vietnam – 3.3%
Bangladesh – 3.2%
Czech Republic – 2.5%
Singapore – 2.4%
Greece – 2.3%
Georgia – 2.0%
Egypt – 1.8%
Malaysia – 1.8%
Global – 1.8%
Chile – 1.6%
Qatar – 1.4%
Cambodia – 0.9%
Romania – 0.7%
Argentina – 0.7%
Colombia – 0.6%
2025 2024
1
Includes exposure gained through equity positions and long and short CFD positions.
Sources: BlackRock and LSEG Datastream.
-10 -8 -6 -4 -2 0 2 4 6 8
Saudi Arabia
Malaysia
Kuwait
Qatar
Peru
Chile
Morocco
Romania
Colombia
Slovenia
Other
Thailand
Indonesia
Oman
Croatia
UK
Bahrain
Jordan
Luxembourg
Mauritius
Czech Republic
Estonia
Lithuania
Sri Lanka
Tunisia
Philippines
Vietnam
Egypt
United Arab Emirates
Global
Poland
Greece
Bangladesh
Hungary
Kenya
Georgia
Pakistan
Kazakhstan
Turkey
7.6
5.4
5.2
4.1
3.8
3.6
3.0
3.0
2.7
1.9
1.4
1.3
0.9
-0.1
-0.1
-0.1
-0.1
-0.1
-0.2
-0.2
-0.2
-0.2
-0.5
-0.5
-0.7
-0.4
-0.4
-0.8
-0.8
-0.9
-1.6
-1.6
-1.3
-2.2
Country allocation relative to the Benchmark Index (%)
1
%
-5.5
-5.8
3.8
-4.6
-4.8
22 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 33 Black Line Level: 5 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Sector allocation: Absolute weights (Gross market exposure as a % of net assets)
1
Financials – 49.9%
Real Estate – 11.0%
Consumer Discretionary – 10.5%
Industrials – 8.6%
Materials – 8.1%
Communication Services – 8.0%
Information Technology – 4.9%
Consumer Staples – 4.3%
Health Care – 4.3%
Energy 3.5%
Utilities – 0.9%
Financials – 45.8%
Industrials – 11.9%
Real Estate – 10.4%
Communication Services – 8.7%
Consumer Staples – 8.6%
Materials – 8.4%
Consumer Discretionary – 5.5%
Information Technology – 5.1%
Energy 4.6%
Health Care – 1.4%
Utilities – 1.4%
2025 2024
Sector positions relative to the Benchmark Index (%)
1
1
Includes exposure gained through equity positions and long and short CFD positions.
Sources: BlackRock and LSEG Datastream.
September 2025
6.6
5.6
3.0
2.0
1.5
0.4
0.3
-0.3
-0.8
-4.9
-5.8
%
-10 -8 -6 -4 -2 0 2 4 6 8
Utilities
Financials
Energy
Healthcare
Materials
Communication
Consumer
Discretionary
Consumer Staples
Industrials
Real Estate
Information
Technology
Portfolio analysis
continued
Section 2: Portfolio 23
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Investments
as at 30 September 2025
Equity portfolio by country of exposure
Company
Principal
country of
operation Sector
Fair value
1
US$’000
Gross market
exposure as a
% of net assets
3
Emaar Properties United Arab Emirates Real Estate 21,152 4.7
Emirate Integrated United Arab Emirates
Communication
Services 9,286 2.1
Air Arabia United Arab Emirates Industrials 8,790 2.0
Emaar Development United Arab Emirates Real Estate 7,707 1.7
Aldar Properties United Arab Emirates Real Estate 3,535 0.8
50,470 11.3
LPP Poland
Consumer
Discretionary 16,565 3.7
PZU Poland Financials 15,460 3.5
PKO Bank Polski Poland Financials 10,176 2.3
42,201 9.5
Eldorado Gold
a
Turkey Materials 13,844 3.1
Türkiye İş Bankası Turkey Financials 11,209 2.5
Akbank Turkey Financials 8,041 1.8
MLP Saglik Hizmetleri AS Turkey Health Care 7,462 1.7
40,556 9.1
Bank Mandiri Indonesia Financials 17,543 3.9
Bank Syariah Indonesia Financials 5,245 1.2
Ciputra Development Indonesia Real Estate 4,910 1.1
Mitra Adiperkasa Indonesia
Consumer
Discretionary 3,130 0.7
30,828 6.9
Athens International Airport
b
Greece Industrials 11,506 2.6
Hellenic Telecommunications
Organisation
b
Greece
Communication
Services 9,939 2.2
OPAP
b
Greece
Consumer
Discretionary 8,788 2.0
30,233 6.8
Kazatomprom Kazakhstan Energy 10,203 2.3
Halyk Savings Bank Kazakhstan Financials 9,015 2.0
JSC Kaspi Kazakhstan Financials 7,902 1.8
27,120 6.1
CP All Thailand Consumer Staples 13,019 2.9
Krungthai Card
Thailand Financials 9,482 2.1
AMATA Corporation
Thailand Real Estate 4,423 1.0
26,924 6.0
Lucky Cement Pakistan Materials 14,666 3.3
MCB Bank Pakistan Financials 8,450 1.9
Meezan Bank Pakistan Financials 3,284 0.7
26,400 5.9
OTP Bank Hungary Financials 17,309 3.9
Wizz Air Holdings
c
Hungary Industrials 5,742 1.3
23,051 5.2
24 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 33 Black Line Level: 5 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Company
Principal
country of
operation Sector
Fair value
1
US$’000
Gross market
exposure as a
% of net assets
3
Equity Group
Kenya Financials 10,138 2.3
Kenya Commercial Bank
Kenya Financials 8,685 1.9
18,823 4.2
BRAC Bank Bangladesh Financials 11,534 2.6
Square Pharmaceuticals Bangladesh Health Care 5,532 1.2
17,066 3.8
Ayala Land
Philippines Real Estate 7,754 1.7
DigiPlus Interactive Corp Philippines
Consumer
Discretionary 7,704 1.7
15,458 3.4
EPAM Systems Global
Information
Technology 11,928 2.7
11,928 2.7
Frontken Corp
Malaysia Industrials 10,357 2.3
10,357 2.3
Rasan Information
Saudi Arabia Financials 10,207 2.3
10,207 2.3
Lion Finance Group
c
Georgia Financials 9,650 2.2
9,650 2.2
Cervecerias Uni-Spon
Chile Consumer Staples 3,807 0.8
Cervecerias Unidas Chile Consumer Staples 2,649 0.6
6,456 1.4
Commercial International Bank
Egypt Financials 3,350 0.7
3,350 0.7
Equity investments
401,078 89.8
BlackRock’s Institutional Cash Series plc –
US Dollar Liquid Environmentally Aware Fund (Cash Fund)
d
53,075 11.9
Total equity investments (including Cash Fund)
454,153 101.7
a
Comprised of two holdings with US Dollar and Canadian Dollar currency exposure.
b
Euro currency exposure.
c
Pound Sterling currency exposure.
d
See note 1 on page 26.
Investments
continued
Section 2: Portfolio 25
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
CFD portfolio by country of exposure
Company
Principal
country of
operation Sector
Fair value
1
US$’000
Gross market
exposure
3
US$’000
Gross market
exposure as a
% of net assets
3
Long positions
Al Rajhi Bank Saudi Arabia Financials 19,211 4.3
Etihad Etisalat Saudi Arabia
Communication
Services 16,541 3.7
Yanbu National Petrochemical Saudi Arabia Materials 7,650 1.7
Mouwasat Medical Services Saudi Arabia Health Care 6,046 1.4
ADES Holdings Saudi Arabia Energy 5,407 1.2
Derayah Financial Saudi Arabia Financials 2,703 0.6
57,558 12.9
Mobile World Investment Corporation Vietnam
Consumer
Discretionary 10,654 2.4
FPT Vietnam
Information
Technology 9,618 2.2
20,272 4.6
TBC Bank Group
a
Georgia Financials 8,680 1.9
8,680 1.9
Akbank Turkey Financials 6,979 1.5
6,979 1.5
Commercial International Bank Egypt Financials 5,212 1.2
5,212 1.2
Wizz Air Holdings
a
Hungary Industrials 1,618 0.4
1,618 0.4
Total long CFD positions 5,872 100,319 22.5
Total short CFD positions (1,509) (7,514) (1.7)
Total CFD portfolio 4,363 92,805 20.8
a
Pound Sterling currency exposure.
26 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 33 Black Line Level: 5 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Fair value
3
Gross market
exposure
4,5
Gross market exposure as
a % of net assets
5
Portfolio US$’000 US$’000 2025 2024
Long equity investment positions (excluding BlackRock’s
Institutional Cash Series plc - US Dollar Liquid
Environmentally Aware Fund) 401,078 401,078 89.8 84.6
Long CFD positions 5,872 100,319 22.5 23.3
Short CFD positions (1,509) (7,514) (1.7) (3.9)
Subtotal of long and short investment positions 405,441 493,883 110.6 104.0
Cash Fund 53,075 53,075 11.9 16.9
Total investment and derivatives 458,516 546,958 122.5 120.9
Cash and cash equivalents 745 (87,697) (19.7) (18.6)
Other net current liabilities (12,504) (12,504) (2.8) (2.3)
Non-current liabilities (19) (19) 0.0 0.0
Net assets 446,738 446,738 100.0 100.0
1
The nature of the Company’s portfolio and the fact the Company gains significant exposure to a number of markets through
long and short CFDs means that the Company will aim to hold a level of cash (or an equivalent holding in a Cash Fund) on
its balance sheet representing the difference between the notional cost of purchasing or selling the investments directly and
the lower initial cost of making a collateral payment on the long or short CFD contract.
2
The Company was geared through the use of long and short CFD positions and gross and net gearing as at 30 September
2025 was 13.9% and 10.6% respectively (30 September 2024: 11.8% and 4.0% respectively). Gross and net gearing are
Alternative Performance Measures, see Glossary on pages 132 to 137.
3
Fair value is determined as follows:
– Long equity investment positions are valued at bid prices where available, otherwise at latest market traded quoted
prices.
– The exposure to securities held through long CFD positions directly in the market would have amounted to
US$94,447,000 at the time of purchase, and subsequent movements in market prices have resulted in unrealised
gains on the long CFD positions of US$5,872,000 resulting in the value of the total long CFD market exposure to the
underlying securities increasing to US$100,319,000 as at 30 September 2025. If the long positions had been closed
on 30 September 2025, this would have resulted in a gain of US$5,872,000 for the Company.
– The notional exposure of selling the securities gained via the short CFD positions would have been US$6,005,000
at the time of entering into the contract, and subsequent movements in market prices have resulted in unrealised
losses on the short CFD positions of US$1,509,000 resulting in the value of the total short CFD market exposure of
these investments increasing to US$7,514,000 at 30 September 2025. If the short positions had been closed on 30
September 2025, this would have resulted in a loss of US$1,509,000 for the Company.
4
The gross market exposure column for cash and cash equivalents has been adjusted to assume the Company traded direct
holdings rather than exposure being gained through long and short CFDs.
5
Gross market exposure for equity investments is the same as fair value; bid prices are used where available and, if
unavailable, latest market traded quoted prices are used. For both long and short CFD positions, the gross market exposure
is the market value of the underlying shares to which the portfolio is exposed via the contract.
Fair value and gross market exposure
of investments
as at 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Governance
The Czech Republic was the standout performer in Europe
and the Middle East. Our visit to the country early in the year
confirmed our positive opinion.
Section 3: Governance 29
30 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Governance structure
Responsibility for good governance lies with the Board. The governance
framework of the Company reflects the fact that as an investment
company it has no employees and outsources investment management
and administration to the Manager and other external service
providers.
The Board
Five scheduled meetings
per annum
Five non-executive Directors (NEDs)
1
, all independent of the
Manager
Chair: Katrina Hart
Objectives:
• To determine the Company’s strategy, including investment policy
and investment guidelines;
• To provide leadership within a framework of prudent and effective
controls which enable risk to be assessed and managed and the
Company’s assets to be safeguarded; and
• To challenge constructively and to scrutinise performance of all
outsourced activities.
Other functions:
• To carry out the duties of a Nomination Committee, including a
regular review of the Board’s structure and composition, making
recommendations for any new Board appointments and reviewing
the Directors’ conflicts of interest; and
• To determine the Company’s remuneration policy.
Audit and Management
Engagement Committee
2
Two scheduled meetings
per annum
Chairman: Stephen White
Membership: All NEDs
Key objectives:
• To oversee financial reporting;
• To consider the adequacy of the control environment;
• To review the performance of the Manager;
• To review and form an opinion on the effectiveness of the external
audit process; and
• To review other service providers.
1
There are currently six NEDs on the Board. However, the Board size will reduce to five again following the retiremend of Stephen
White. Christopher Casey will replace Stephen White as Chairman of the Audit and Management Engagement Committee.
2
Terms of reference for the committee are available at www.blackrock.com/uk/brfi.
Job No: 53118 Proof Event: 2 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 3: Governance 31
Directors’ biographies
Stephen White
Audit and Management Engagement
Committee Chairman (with effect from
22 November 2016)
(Appointed 13 July 2016)
Currently a non-executive Director
of Polar Capital Technology Trust
plc and Chairman of Brown Advisory
US Smaller Companies plc. He was
formerly a non-executive director of
Henderson Eurotrust plc, Aberdeen
New India Investment Trust plc, JP
Morgan European Discovery Trust plc,
Global Special Opportunities Trust plc,
Head of European and US Equities at
British Steel Pension Fund, Head of
European Equities at F&C Investment
Management, Manager of F&C
Eurotrust plc and Deputy Manager of
the F&C Investment Trust plc. Prior to
joining F&C in 1985, he held positions
at Hill Samuel Asset Management,
Phillips & Drew and PriceWaterhouse.
He is a Chartered Accountant.
Attendance record:
Board: 4/5
Audit and Management Engagement
Committee: 2/2
Shareholding as at 8 December 2025:
30,000
None of the Directors has a service contract with the Company. The terms of their appointment are
detailed in a letter sent to them when they join the Board. These letters are available for inspection at the
registered office of the Company and will be available at the AGM.
Katrina Hart
Chair (with effect from 6 February 2024)
(Appointed 1 October 2019)
Currently Chair of JP Morgan UK
Small Cap Growth and Income plc
and a non-executive director of AEW
UK REIT plc and Montanaro Asset
Management Limited. She was
formerly a non-executive director of
Keystone Positive Change Investment
Trust plc, Premier Miton Group plc
and Polar Capital Global Financials
Trust plc. Mrs Hart spent her executive
career in investment banking, advising,
analysing and commentating on a
broad range of businesses. Initially
working in corporate finance at ING
Barings and Hawkpoint Partners, she
then moved into equities research at
HSBC, covering the General Financials
sector. Latterly, Mrs Hart headed
up the Financials research teams at
Bridgewell Group plc and Canaccord
Genuity, specialising in wealth and
asset managers.
Attendance record:
Board: 5/5
Audit and Management Engagement
Committee: 2 /2
Shareholding as at 8 December 2025:
49,110
32 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 53118 Proof Event: 2 Black Line Level: 0 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2024 T: 0207 055 6500 F: 020 7055 6600
Directors’ biographies
continued
Elisabeth Airey
Senior Independent Director (with
effect from 6 February 2024)
(Appointed on 10 December 2021)
Currently Chairman of abrdn UK
Smaller Companies Growth Trust plc,
Chairman of Rolls-Royce UK Pension
Fund Trustees Limited and a member
of the Investments Committee of the
Royal Horticultural Society. Previously
she was non-executive Chairman of
Jupiter Fund Management plc, a non-
executive Director of Tate & Lyle plc,
a non-executive Director of Dunedin
Enterprise Investment Trust plc, a non-
executive Director of Kirk Lovegrove
& Company Limited, a member of the
advisory board of Ownership Capital
and a member of the Investment
Committee of the Institute of Chartered
Accountants in England and Wales. In
her executive career she was Finance
Director of Monument Oil and Gas plc,
a post she held from 1990 until the
sale of the company to Lasmo plc in
1999.
Attendance record:
Board: 5/5
Audit and Management Engagement
Committee: 2/2
Shareholding as at 8 December 2025:
100,000
Lucy Taylor-Smith
(Appointed on 10 December 2021)
Previously Global Head of Strategy
with Standard Chartered Bank based in
Singapore. Prior to this, she was Chief
Strategy Officer and a member of the
Executive Committee at Manulife Asia,
and Chairman of Manulife Singapore,
as well as Chief Strategy Officer
and Board Director for Prudential
Corporation Asia. She also spent 13
years with UBS advising companies on
a wide range of strategic initiatives and
corporate transactions encompassing
mergers and acquisitions, equity and
debt capital markets deals, culminating
in her position as Executive Director of
Corporate Broking.
Attendance record:
Board: 5/5
Audit and Management Engagement
Committee: 2/2
Shareholding as at 8 December 2025:
30,852
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 3: Governance 33
Hatem Dowidar
Director
(Appointed 7 February 2024)
Currently the Group CEO of e& and
also holds roles as a non-executive
Director of Vodafone Group, Etihad
Etisalat Company (Mobily), Maroc
Telecom & Etisalat Egypt. Previously,
he worked for Vodafone, Procter and
Gamble as well as Daimler Benz Group
in various roles. He is a member of
international forums such as the
board of the GSM Association and the
leadership panel of the United Nations
Internet Governance Forum (IGF).
His academic background includes
a Bachelor’s in Communications and
Electronics Engineering and an MBA.
Attendance record:
Board: 5/5
Audit and Management Engagement
Committee: 2/2
Shareholding as at 8 December 2025:
40,000
Christopher Casey
Director
(Appointed 1 October 2025)
Currently a non-executive Director and
Chairman of CQS Natural Resources
Growth and Income PLC, non-
executive Director and Chairman of
the audit committee of Life Settlement
Assets PLC and non-executive Director
of Fidelity Special Values PLC. Mr
Casey is a Chartered Accountant and
his career spans over 40 years. He
was previously an audit partner at
KPMG LLP. Since then, he has carried
out a number of non-executive board
roles, serving as audit committee
chairman and then chairman of The
European Smaller Companies Trust
PLC, audit committee chairman of
BlackRock American Income Trust PLC,
audit committee chairman of Mobius
Investment Trust PLC, audit committee
chairman and then chairman of
China Polymetallic Mining Ltd, Audit
Committee chairman of Latchways
PLC, and audit committee chairman
and then interim chairman of Eddie
Stobart Logistics PLC.
Attendance record:
Mr Casey was appointed with effect
from 1 October 2025. Mr Casey
attended 2/2 Board meetings
as a guest of the Board since his
appointment was announced on
26 June 2025.
Shareholding as at 8 December 2025:
nil
34 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Strategic report
The Directors present the Strategic Report of the Company for the year ended 30 September 2025.
Principal activity
The Company carries on business as an investment trust and its principal activity is portfolio investment.
Investment objective
The Company’s investment objective is to achieve long-term capital growth by investing in companies domiciled or listed
in, or exercising the predominant part of their economic activity in, less developed countries. These countries (the “Frontiers
Universe”) are any country which is neither part of the MSCI World Index of developed markets, nor one of the eight largest
countries by market capitalisation in the MSCI Emerging Markets Index as at 1 April 2018: being Brazil, China, India, South
Korea, Mexico, Russia, South Africa and Taiwan (the “Selected Countries”).
Strategy, business model and investment policy
Strategy
To achieve its objective, the Company invests globally in the securities of companies domiciled or listed in or exercising the
predominant part of their economic activity in, the Frontiers Universe.
Business model
The Company’s business model follows that of an externally managed investment trust; therefore the Company does not have
any employees and outsources its activities to third party service providers, including BlackRock Fund Managers Ltd (BlackRock
or BFM) (‘the Manager’) which is the principal service provider.
The management of the investment portfolio and the administration of the Company have been contractually delegated to the
Manager. The Manager has delegated certain investment management and other ancillary services to BlackRock Investment
Management (UK) Limited (BIM (UK)) (‘the Investment Manager’). The contractual arrangements with, and assessment of,
the Manager are summarised on page 50. The Investment Manager, operating under guidelines determined by the Board, has
direct responsibility for the decisions relating to the day-to-day running of the Company and is accountable to the Board for the
investment, financial and operating performance of the Company. Other service providers include the Depositary and the Fund
Accountant, The Bank of New York Mellon (International) Limited (BNY), and the Registrar, Computershare Investor Services PLC
(Computershare). Details of the contractual terms with third party service providers are set out in the Directors’ Report.
Investment policy
The Company will seek to maximise total return and will invest globally in the securities of companies domiciled or listed in
or exercising the predominant part of their economic activity in, the Frontiers Universe. Performance is measured against the
Company’s Benchmark Index, which is a composite of the MSCI Frontier + Emerging ex Selected Countries Index (net total
return, USD). The Investment Manager is not constrained by the geographical weightings of the Benchmark Index and the
Company’s portfolio may frequently be overweight or underweight any particular country relative to the Benchmark Index. The
Company will exit any investment as soon as reasonably practicable following the relevant company ceasing to be domiciled or
listed in or exercising the predominant part of its economic activity in, the Frontiers Universe.
In order to achieve the Company’s investment objective, the Investment Manager selects investments through a process
of fundamental and geopolitical analysis, seeking long-term appreciation from mispriced value or growth. The Investment
Manager employs both a top-down and bottom-up approach to investing. It is expected that the Company will have exposure
to between 35 to 65 holdings.
Where possible, investment will generally be made directly in the stock markets of the Frontiers Universe. Where the
Investment Manager determines it appropriate, investment may be made through collective investment schemes, although
such investments are not likely to be significant. Investment in other closed-ended investment funds admitted to the Official
List will not exceed more than 10%, in aggregate, of the value of the Gross Assets (calculated at the time of any relevant
investment). It is intended that the Company will generally be invested in equity investments; however, the Investment
Manager has the ability to invest in equity-related investments, such as derivatives or convertibles, and, to a lesser extent, in
bonds or other fixed-income securities. These securities may be below investment grade.
Due to national and/or international regulation, excessive operational risk, prohibitive costs and/or the time period involved
in establishing trading and custody accounts in certain countries in the Frontiers Universe, the Company may be unable to
invest (whether directly or through nominees) in companies in certain countries in the Frontiers Universe or, in the opinion
of the Company and/or the Investment Manager, it may not be advisable to do so. In such circumstances, or in countries
Section 3: Governance 35
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
where acceptable custodial and other arrangements are not in place to safeguard the Company’s investments, the Company
gains economic exposure to companies in such countries by investing indirectly through derivatives. Derivatives are financial
instruments linked to the performance of another asset or security, such as promissory notes, contracts for difference,
futures or traded options. Save as provided below, there is no restriction on the Company investing in derivatives in such
circumstances or for efficient portfolio management purposes.
The Company may be geared through borrowings and/or by entering into derivative transactions (taking both long and short
positions) that have the effect of gearing the Company’s portfolio with the aim of enhancing performance. The Company may
also use borrowings for the settlement of transactions, to facilitate share repurchases (where applicable) and to meet ongoing
expenses.
The respective limits on gearing (whether through the use of derivatives, borrowings or a combination of both) are set out
below:
• Maximum gearing through the use of derivatives or borrowings to gain exposure to long positions in securities: 140% of net
assets
• Maximum exposure to short positions (for shorting purposes the Company may use indices or individual stocks): 10% of net
assets
• Maximum gross exposure (total long exposure plus total short exposure): 150% of net assets
• Maximum net exposure (total long exposure minus total short exposure): 130% of net assets
In normal circumstances, the Company will typically have net exposure of between 95% and 120% of net assets.
When investing via derivatives, the Company will seek to mitigate and/or spread its counterparty risk exposure by collateralisation
and/or contracting with a potential range of counterparty banks, as appropriate, each of which shall, at the time of entering into
such derivatives, have a Standard & Poor’s credit rating of at least A- on its long-term senior unsecured debt.
The Company may invest up to 5% of its Gross Assets (at the time of such investment) in unquoted securities. The Company
will invest so as not to hold more than 15% of its Gross Assets in any one stock or derivative position at the time of investment
(excluding cash management activities).
No material change will be made to the investment policy without the approval of shareholders by ordinary resolution.
A detailed analysis of the Company’s portfolio has been provided on pages 19 to 26.
Investment approach and process
Portfolio construction is a continuous process, with the Investment Manager analysing constantly the impact of new ideas
and information on the portfolio as a whole. The approach is flexible, varying through market and economic cycles to create a
portfolio appropriate to the focused and unconstrained strategy of the Company. The macro environment is factored into all
portfolio decisions. In general, macro analysis is a more dominant factor in investment decision-making when the outlook is
negative. The macro process is comprised of three parts: political assessment, macroeconomic analysis and appraisal of the
valuation of a country’s market, which can only take place with thorough analysis of stock specific opportunities.
The Investment Manager’s research team generates ideas from a diverse range of sources. When permitted, these include
frequent travel to the markets in which the Company invests and regular conversations with contacts that allow the Frontiers
team to assess the entire eco system around a company, namely competitors, suppliers, financiers, customers and regulators.
The team leverages the internal research network, sharing information between BlackRock’s investment teams using a
proprietary research application and database and develops insights from macroeconomic analysis. The Board believes that
BlackRock’s research platform is a significant competitive advantage, both in terms of information specific to emerging and
frontier market equities and through its global insights across asset classes. Access to companies is extremely good given
BlackRock’s market presence, which makes it possible to develop a detailed knowledge of a company and its management.
The research process focuses on cash flow and future earnings growth, as the investment team believes that this is ultimately
the driver of share prices over time. The process is designed to identify companies that can translate top line revenue growth to
free cash flow and invest in these companies when the analysis suggests that the cash flow stream is undervalued. Financial
models are developed focusing on company financials, particularly cash flow statements, rather than relying on third party
research.
36 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Macro
process
Micro
process
Risk-aware portfolios built from a structured research framework
Idea generation Idea processing Portfolio construction
Risk
management
Position
sizing
Trade
timing
Portfolio
monitoring
& review
Fundamental analysis
& financial modelling
Team
presentation
& discussion
Pod
discussion
& quality
control
Standardised
research
template &
stock rating
Performance
Details of the Company’s performance for the year are given in the Financial Highlights on page 1, Performance Record on
page 4 and Chair’s Statement on pages 5 to 9. The Investment Manager’s Report on pages 11 to 15 includes a review of the
main developments during the period, together with information on investment activity within the Company’s portfolio.
Results and dividends
The results for the Company are set out in the Statement of Comprehensive Income on page 87. The total profit for the year,
after taxation, was US$58,867,000 (2024: US$58,548,000) of which the revenue return amounted to US$19,205,000 (2024:
US$18,884,000) and the capital profit amounted to US$39,662,000 (2024: US$39,664,000).
The Directors are recommending the payment of a final dividend of 6.35 cents per ordinary share in respect of the year ended
30 September 2025 (2024: final dividend of 6.00 cents) as set out in the Chair’s Statement on page 5.
Future prospects
The Board’s main focus is on the achievement of capital growth and the future of the Company is dependent upon the success
of the investment strategy. The outlook for the Company is discussed in both the Chair’s Statement on pages 5 to 9 and in the
Investment Manager’s Report on pages 11 to 15.
Modern slavery
As an investment vehicle the Company does not provide goods or services in the normal course of business and does not have
customers. Accordingly, the Directors consider that the Company is not required to make any slavery or human trafficking
statement under the Modern Slavery Act 2015. In any event, the Board considers the Company’s supply chain, dealing
predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to
this matter.
Directors, gender representation and employees
The Directors of the Company on 30 September 2025 are set out in the Directors’ biographies section on pages 31 to 33. As at
10 December 2025, the Board consisted of three men and three women constituting 50% female Board representation. The
Company does not have any employees.
Strategic report
continued
Section 3: Governance 37
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Key performance indicators
The Directors consider a number of performance measures to assess the Company’s success in achieving its objectives. The key
performance indicators (KPIs) used to measure the progress and performance of the Company over time and which are comparable
to those reported by other investment trusts are set out below.
Performance
At each meeting the Board reviews the performance of the portfolio as well as the net asset value and share price of the Company
and compares this to the return of the Company’s benchmark. The Board considers this to be an important key performance
indicator and has determined that it should also be used to calculate whether a performance fee is payable to BlackRock. The
Company’s absolute and relative performance is set out in the performance record table on page 4.
The Board regularly reviews a number of indices and ratios to understand the impact on the Company’s relative performance of the
various components such as asset allocation and stock selection. The Board also reviews the performance of the Company against a
peer group of frontier market focused open and closed-ended funds.
Share rating and discount/premium
The Directors recognise the importance to investors that the Company’s share price should not trade at a significant
discount or premium to NAV. Accordingly, the Directors monitor the share rating closely and will consider share repurchases
in the market if the discount widens significantly, or the issue of shares to the market to meet demand to the extent that
the Company’s shares are trading at a premium. In addition, in accordance with the Directors’ commitment at launch
the Company will formulate and submit to shareholders proposals to provide them with an opportunity at each five year
anniversary since launch to realise the value of their ordinary shares at the prevailing NAV per share less applicable costs.
Such an opportunity took place in the year ended 30 September 2021. The next opportunity will take place in February 2026.
For the year under review the Company’s shares traded at an average discount to the cum-income NAV of 6.4% and were
trading at a discount of 3.2% on a cum-income basis at 8 December 2025. The Directors have the authority to buy back up
to 14.99% of the Company’s issued share capital (excluding treasury shares). The Directors sought and received shareholder
authority at the last AGM to issue up to 10% of the Company’s issued share capital (via the issue of new shares or sale of
shares from treasury) on a non pre-emptive basis. Further information can be found in the Directors’ Report on page 53.
Ongoing charges
The ongoing charges reflect those expenses which are likely to recur in the foreseeable future, whether charged to capital or
revenue, and which relate to the operation of the Company, excluding the costs of acquisition or disposal of investments, financing
charges and gains or losses arising on investments and performance fees. The ongoing charges are based on actual costs incurred
in the year as being the best estimate of future costs. The Board reviews the ongoing charges and monitors the expenses incurred
by the Company.
The table below sets out the key KPIs for the Company (see Glossary on pages 132 to 137).
Year ended
30 September 2025
1
Year ended
30 September 2024
1
£% US$% £% US$%
Net asset value total return
2
+14.7 +15.1 +6.0 +16.5
Share price total return
3
+21.4 +21.9 +5.4 +15.8
Benchmark Index return
4
+10.2 +10.6 +5.3 +15.7
Discount to cum income NAV 4.2 9.4
Ongoing charges excluding performance fees
5
1.42 1.41
Ongoing charges including performance fees
6
2.87 2.33
1
Based on an exchange rate of US$1.3463 to £1 at 30 September 2025 and US$1.3414 to £1 at 30 September 2024.
2
Calculated with dividends reinvested.
3
Calculated on a mid to mid basis with dividends reinvested.
4
The Benchmark Index is a composite of the MSCI Frontier + Emerging ex Selected Countries Index. Benchmark Index return
calculates the reinvestment of dividends net of withholding taxes.
5
Ongoing charges excluding performance fees represent the management fee and all other operating expenses, excluding
performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items, as a % of average daily net assets.
6
Ongoing charges including performance fees represent the management fee and all other operating expenses, including
performance fees, but excluding finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior
year expenses written back and certain non-recurring items, as a % of average daily net assets.
38 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Principal risks
As required by the 2024 UK Code of Corporate Governance, the Board has in place a robust, ongoing process to identify,
assess and monitor the principal and emerging risks of the Company, including those that they consider would threaten its
business model, future performance, solvency or liquidity. Emerging risks are considered by the Board as they come into view
and are incorporated into the Company’s risk register where applicable. Additionally, the Manager considers emerging risks in
numerous forums and the Risk and Quantitative Analysis team produces an annual risk survey. Any material risks of relevance
to the Company identified through the annual risk survey will be communicated to the Board.
A core element of this is the Company’s risk register, which identifies the risks facing the Company and assesses the likelihood
and potential impact of each risk, and the quality of the controls operating to mitigate the risk. A residual risk rating is
then calculated for each risk based on the outcome of this assessment. This approach allows the effect of any mitigating
procedures to be reflected in the final assessment.
The risk register, its method of preparation and the operation of the key controls in BlackRock’s and other third party service
providers’ systems of internal control are reviewed on a regular basis by the Company’s Audit and Management Engagement
Committee. In order to gain a more comprehensive understanding of BlackRock’s and other third party service providers’ risk
management processes and how these apply to the Company’s business, the Audit and Management Engagement Committee
periodically receives presentations from BlackRock’s Internal Audit and Risk and Quantitative Analysis teams, and reviews
Service Organisation Control (SOC 1) reports from BlackRock and the Company’s Custodian and Fund Accountant, The Bank
of New York Mellon (International) Limited (BNY).
The current risk register includes a range of risks spread between performance risk, income/dividend risk, legal and regulatory
risk, counterparty risk, operational risk, market risk, political risk and financial risk.
The principal risks and uncertainties faced by the Company during the year, together with the potential effects, controls and
mitigating factors, are set out on pages 38 to 42.
Investment Performance Risk
Principal risk
The Board is responsible for:
• setting the investment policy to fulfil the Company’s objectives; and
• monitoring the performance of the Company’s Investment Manager and the strategy adopted.
An inappropriate policy or strategy may lead to:
• poor performance compared to the Company’s benchmark peer group or shareholders’ expectations;
• a widening discount to NAV;
• a reduction or permanent loss of capital; and
• dissatisfied shareholders and reputational damage.
The Board is also cognisant of the long-term risk to performance from inadequate attention to environmental, social and
governance (ESG) issues and in particular the impact of climate change.
Mitigation/Control
To manage this risk the Board:
• regularly reviews the Company’s investment mandate and long-term strategy;
• has set, and regularly reviews, the investment guidelines and has put in place appropriate limits on levels of gearing and
the use of derivatives;
Strategic report
continued
Section 3: Governance 39
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
• receives from the Investment Manager a regular explanation of stock selection decisions, portfolio gearing and any
changes in gearing and the rationale for the composition of the investment portfolio;
• receives from the Investment Manager regular reporting on the portfolio’s exposure through derivatives, including the
extent to which the portfolio is geared in this manner and the value of any short positions;
• monitors the maintenance of an adequate spread of investments in order to minimise the risks associated with particular
countries or factors specific to particular sectors, based on the diversification requirements inherent in the Company’s
investment policy;
• regularly reviews detailed performance attribution analysis; and
• monitors ESG factors in the portfolio and engagement with investee companies on ESG issues.
Income/Dividend Risk
Principal risk
The quantum of dividends and future dividend growth will depend on the income generated by the Company’s underlying
portfolio. In addition, any change in the tax treatment of the dividends or interest received by the Company (including as a
result of withholding taxes or exchange controls imposed by jurisdictions in which the Company invests) may reduce the level
of dividends received by shareholders.
Mitigation/Control
Although the Company does not have a policy of actively seeking income, the Board monitors this risk through the receipt of
detailed income forecasts and considers the level of income at each meeting. The Company also has a revenue reserve and
powers to pay dividends from capital which can be used to support the Company’s dividend if required.
Legal and Regulatory Risk
Principal risk
The Company has been approved by HM Revenue & Customs as an investment trust, subject to continuing to meet the
relevant eligibility conditions, and operates as an investment trust in accordance with Chapter 4 of Part 24 of the Corporation
Tax Act 2010. As such, the Company is exempt from capital gains tax on the profits realised from the sale of its investments.
Any breach of the relevant eligibility conditions could lead to the Company losing its investment trust status and being subject
to corporation tax on capital gains realised within the Company’s portfolio.
In such event the investment returns of the Company may be adversely affected. Any serious breach could result in the
Company and/or the Directors being fined or the subject of criminal proceedings or the suspension of the Company’s shares
which would in turn lead to a breach of the Corporation Tax Act 2010. Amongst other relevant laws and regulations, the
Company is required to comply with the provisions of the Companies Act 2006, the Alternative Investment Fund Managers’
Directive, the Market Abuse Act, the UK Listing Rules and the Disclosure Guidance & Transparency Rules.
Mitigation/Control
The Investment Manager monitors investment movements, the level of forecast income and expenditure and the quantum
of proposed dividends, if any, to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax Act 2010 are not
breached, and the results are reported to the Board at each meeting.
Following authorisation under the Alternative Investment Fund Managers’ Directive (AIFMD), the Company and its appointed
Alternative Investment Fund Manager (AIFM) are subject to the risks that the requirements of this Directive are not correctly
complied with. The Board and the AIFM also monitor changes in government policy and legislation which may have an impact
on the Company.
Compliance with the accounting standards applicable to quoted companies and those applicable to investment trusts are also
regularly monitored to ensure compliance.
40 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Company Secretary and the Company’s professional advisers monitor developments in relevant laws and regulations and
provide regular reports to the Board in respect of the Company’s compliance.
Counterparty Risk
Principal risk
The Company’s investment policy permits the use of both exchange-traded and over-the-counter derivatives (including
contracts for difference). Counterparty risk represents potential loss that the Company could incur if a counterparty is unable
(or unwilling) to honour its commitments.
The Company may also gain exposure to the Frontiers Universe by investing indirectly through Participatory Notes (P-Notes)
which presents additional risk to the Company as P-Notes are uncollateralised resulting in the Company being subject to
full counterparty risk via the P-Note issuer. P-Notes also present liquidity issues as the Company, being a captive client of a
P-Note issuer, may only be able to realise its investment through the P-Note issuer and this may have a negative impact on the
liquidity of the P-Notes which does not correlate to the liquidity of the underlying security.
Mitigation/Control
Due diligence is undertaken before contracts are entered into and exposures are diversified across a number of counterparties.
The Board reviews the controls put in place by the Investment Manager to monitor and to minimise counterparty exposure,
which include intra-day monitoring of exposures to ensure that these are within set limits.
Operational Risk
Principal risk
In common with most other investment trust companies, the Company has no employees. The Company therefore relies
upon the services provided by third parties and is dependent on the control systems of BlackRock (the Investment Manager
and AIFM), and of The Bank of New York Mellon (International) Limited (the Custodian, Depositary and Fund Accountant),
which ensures safe custody of the Company’s assets and maintains the Company’s accounting records. The Company’s share
register is maintained by the Registrar, Computershare.
Failure by any service provider to carry out its obligations to the Company could have a material adverse effect on the
Company’s performance. Disruption to the accounting, payment systems or custody records, as a result of a cyberattack or
otherwise, could impact the monitoring and reporting of the Company’s financial position.
The security of the Company’s assets, dealing procedures, accounting records and maintenance of regulatory and legal
requirements, depend on the effective operation of these systems.
Mitigation/Control
The Board reviews the overall performance of the Manager, Investment Manager and all other third-party service providers
and compliance with the investment management agreement on a regular basis.
The Fund Accountant’s and the Manager’s internal control processes are regularly tested and monitored throughout the year
and are evidenced through their Service Organisation Control (SOC 1) reports, which are subject to review by an Independent
Service Assurance Auditor. The SOC 1 reports provide assurance in respect of the effective operation of internal controls.
The Company’s assets are subject to a strict liability regime and in the event of a loss of financial assets held in custody, the
Depositary must return assets of an identical type or the corresponding amount, unless able to demonstrate that the loss was
a result of an event beyond its reasonable control.
The Board considers succession arrangements for key employees of the Manager and the Board also considers the business
continuity arrangements of the Company’s key service providers on an ongoing basis and reviews these as part of its review of
the Company’s risk register.
The Board also receives regular reports from BlackRock’s internal audit function.
Strategic report
continued
Section 3: Governance 41
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Political Risk
Principal risk
Investments in the Frontiers Universe may include a higher element of risk compared to more developed markets due to
greater political instability. Political and diplomatic events in the Frontiers Universe where the Company invests (for example,
governmental instability, corruption, adverse changes in legislation or other diplomatic developments such as the outbreak
of war or imposition of sanctions) could substantially and adversely affect the economies of such countries or the value of the
Company’s investments in those countries.
Mitigation/Control
The Investment Manager mitigates this risk by applying stringent controls over where investments are made and through
close monitoring of political risks. The Investment Manager’s approach to filtering the investment universe takes account
of the political background to regions and is backed up by rigorous stock specific research and risk analysis, individually
and collectively, in constructing the portfolio. The management team has a wide network of business and political contacts
which provides economic insights with public and private bodies. This enables the Investment Manager to assess potential
investments in an informed and disciplined way, as well as being able to conduct regular monitoring of investments once
made. However, given the nature of political risk, all investments will be exposed to a degree of risk and the Investment
Manager will ensure that the portfolio remains diversified across countries to mitigate the risk.
Financial Risk
Principal risk
The Company’s investment activities expose it to a variety of financial risks which include foreign currency risk, liquidity risk,
currency risk and interest rate risk.
Mitigation/Control
Details of these risks are disclosed in note 17 to the financial statements, together with a summary of the policies for
managing these risks.
Market Risk
Principal risk
The Company is exposed to currency, market and political risk due to the location of the operations of the businesses in which
it may invest.
Market risk arises from volatility in the prices of the Company’s investments. It represents the potential loss the Company
might suffer through realising investments in the face of negative market movements. The securities markets of the Frontiers
Universe are not as large as the more established securities markets and have substantially lower trading volume, which may
result in a lack of liquidity and higher price volatility.
Corruption also remains a significant issue across the Frontiers Universe and the effects of corruption could have a material
adverse effect on the Company’s performance. Accounting, auditing and financial reporting standards and practices and
disclosure requirements applicable to many companies in developing countries may be less rigorous than in developed
markets. As a result, there may be less information available publicly to investors in these securities, and such information
as is available is often less reliable. This risk can be partially mitigated by the fact that our portfolio managers only invest in
companies that produce fully audited accounts.
Companies operating in the sectors in which the Company invests may be impacted by new legislation governing climate
change and environmental issues, which may have a negative impact on their valuation and share price.
Mitigation/Control
Market risk represents the risks of investment in a particular market, country or geographic region. Therefore, this is largely
outside of the scope of the Board’s control. However, the Board carefully considers asset allocation, stock selection and levels
of gearing on a regular basis and has set investment restrictions and guidelines which are monitored and reported on by the
Investment Manager. Market risk is also mitigated through portfolio diversification across countries and regions. The Board
monitors the implementation and results of the investment process with the Investment Manager regularly.
42 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Investment Manager regularly reports to the Board on relative market risks associated with investment in such regions.
Further information is provided under ‘Political Risk’.
The Board recognises the benefits of a closed-end fund structure in extremely volatile markets such as those affected by the
current environment of heightened geopolitical tensions and uncertainty. 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 Investment Manager 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 Portfolio Managers seek to understand the ESG risks and opportunities facing companies and industries in the portfolio.
The Company does not exclude investment in stocks based on ESG criteria, but the Portfolio Managers consider ESG
information when conducting research and due diligence on new investments and again when monitoring investments in the
portfolio.
Viability statement
In accordance with the provisions of the UK Corporate Governance Code, the Directors have assessed the prospects of the
Company over a longer period than the twelve months referred to by the ‘Going Concern’ guidelines. The Board is cognisant
of the current environment of heightened geopolitical risk given global conflicts and their current and potential future impact
on the global economy, and the prospects of the Company’s portfolio holdings. The Board expects the Company to continue
to meet its liabilities as they fall due for the foreseeable future and has therefore conducted this review for a period of five
years. Five years is considered by the Board to be a reasonable time horizon over which the performance of the Company
can be assessed. The Board also notes that this aligns with the five-yearly assessment period adopted when the Company
was launched (on the basis that this was an appropriate time frame for shareholders to judge performance and have the
opportunity to tender their shares at the applicable NAV per ordinary share less relevant costs).
The Board conducted this review for the period up to the AGM in 2031. In determining this period, the Board took into
account the Company’s investment objective to achieve long-term capital growth and the Company’s projected income and
expenditure. The Directors are satisfied that the Company has adequate resources to continue in operational existence for the
foreseeable future and is financially sound.
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
Board last put proposals to shareholders in 2021. The Company received elections to tender representing 21.5% of the
Company’s shares, with the majority of this coming from a single shareholder. The vast majority of shareholders chose to
retain their investment in the Company. The Board believes this is indicative of the ongoing attractiveness of the Company’s
investment strategy and offering. The next such opportunity will occur in February 2026. The Board has considered 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 and the sales team at BlackRock remain in
regular communication with shareholders and, based on shareholder views at the time of publication of this Annual Report,
shareholders continue to be supportive of the investment mandate and there is no indication that demand to opt for a cash
exit will be at a level which would jeopardise the ongoing viability of the Company.
In making the longer-term viability assessment the Board has considered the following factors:
• the ongoing relevance of the Company’s investment objective, business model and investment policy;
• the Company’s principal risks as set out on pages 38 to 42;
• the level of ongoing demand for the Company’s ordinary shares;
• the impact of a significant fall in Frontier equity markets on the value of the Company’s investment portfolio;
• the operational resilience of the Company and its key service providers and their ability to continue to provide a good level of
service for the foreseeable future; and
• the effectiveness of business continuity plans in place for the Company and key service providers.
The Board has also considered a number of financial metrics, including:
• the level of current and historic ongoing charges incurred by the Company;
Strategic report
continued
Section 3: Governance 43
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
• the Company’s borrowings and its ability to meet its liabilities as they fall due;
• the premium or discount to NAV;
• the level of income generated by the Company;
• future income forecasts; and
• the liquidity of the Company’s portfolio.
The Company is an investment company with a relatively liquid equity portfolio (as at 30 September 2025, 94.6% of the
equity portfolio was capable of being realised in less than 20 days in normal market conditions) and largely fixed overheads
(excluding management fees and performance fees) which comprise a very small percentage of net assets (1.42%). In
addition, any performance fees are capped at 1% of net assets in years where the NAV per share has fallen or 2.5% of net
assets in years where the NAV per share has increased. Therefore, the Board has concluded that even in exceptionally stressed
operating conditions, the Company would comfortably be able to meet its ongoing operating costs as they fall due.
However, investment companies may face other challenges, such as regulatory changes and the tax treatment of investment
trusts, or a significant decrease in size due to substantial share buy-back activity or market falls, which may result in the
Company no longer being of sufficient market capitalisation to represent a viable investment proposition or no longer being
able to continue in operation.
The Board has determined that the factors considered are applicable to the period up to the AGM in 2031 and beyond.
Based on the results of their analysis, the Directors have a reasonable expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due over the period of their assessment.
The Board’s assessment of the Company’s ability to operate in the foreseeable future is included in the Going Concern
Statement which can be found on pages 51 and 52 in the Directors’ Report.
44 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 172 Statement: Promoting the success of BlackRock Frontiers
Investment Trust Plc
The Companies (Miscellaneous Reporting) Regulations 2018 require directors to explain more fully how they have discharged
their duties under Section 172(1) of the Companies Act 2006 in promoting the success of their companies for the benefit
of members as a whole. This enhanced disclosure covers how the Board has engaged with and understands the views of
stakeholders and how stakeholders’ needs have been taken into account, the outcome of this engagement and the impact that
it has had on the Board’s decisions.
As the Company is an externally managed investment company and does not have any employees or customers, the Board
considers the main stakeholders in the Company to be the shareholders, key service providers (being the Manager and
Investment Manager, the Custodian, Depositary, Registrar and Broker) and investee companies.
A summary of the principal areas of engagement undertaken by the Board with its key stakeholders in the year under review
and how Directors have acted upon this to promote the long-term success of the Company is set out in the tables below.
Stakeholders
Shareholders
Shareholder support and engagement are critical to the existence of the Company and the successful delivery of its long-
term strategy. The Board is focused on fostering good relationships with shareholders and on understanding the views of
shareholders in order to incorporate them into the Company’s strategy and objectives. Additional details are given on page 47.
Manager and Investment Manager
The Board’s main working relationships are with the Manager and the Investment Manager, who between them are responsible
for the Company’s portfolio management (including asset allocation, stock and sector selection) and risk management, as well
as ancillary functions such as administration, secretarial, accounting and marketing services. The Manager has sub-delegated
portfolio management to the Investment Manager. Successful management of shareholders’ assets by the Investment
Manager is critical for the Company to successfully deliver its investment strategy and meet its objective. The Company is
also reliant on the Manager as AIFM to provide support in meeting relevant regulatory obligations under the AIFMD and other
relevant legislation.
Other key service providers
In order for the Company to function as an investment trust with a listing on the main market of the London Stock Exchange,
the Board relies on a range of advisors for support in meeting relevant obligations and safeguarding the Company’s assets.
For this reason, the Board considers the Company’s Custodian, Depositary, Registrar and Broker to be stakeholders. The Board
maintains regular contact with its key external providers and receives regular reporting from them through the Board and
committee meetings, as well as outside of the regular meeting cycle.
Investee companies
Portfolio holdings are ultimately shareholders’ assets, and the Board recognises the importance of good stewardship and
communication with investee companies in meeting the Company’s investment objective and strategy. The Board monitors
the Manager’s stewardship activities and receives regular feedback from the Manager in respect of meetings with the
management of portfolio companies.
Strategic report
continued
Section 3: Governance 45
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
A summary of the key areas of engagement undertaken by the Board with its key stakeholders in the year under review and
how Directors have acted upon this to promote the long-term success of the Company is set out in the table below.
Area of Engagement
Responsible investing
Issue
The Board is committed to promoting the role and success of the Company in delivering on its investment mandate to
shareholders over the long term. However, the Board recognises that securities within the Company’s investment remit may
involve additional risk due to the political volatility and environmental, social and governance concerns facing many of the
countries in the Company’s investment universe. While the Company does not have a sustainable investment objective or
exclude investments based only on ESG criteria, these ethical and sustainability issues should be a consideration of our
Manager’s research. More than ever, consideration of sustainable investment is a key part of the investment process and
should be factored in when making investment decisions. The Board also has responsibility to shareholders to ensure that the
Company’s portfolio of assets is invested in line with the stated investment objective and in a way that ensures an appropriate
balance between spread of risk and portfolio returns.
Engagement
The Board believes that responsible investment and sustainability are important to the longer-term delivery of value and has
worked closely with the Manager throughout the year to regularly review the Company’s performance and investment strategy
and to understand how ESG considerations are integrated into the investment process.
The Manager’s approach to the consideration of ESG factors in respect of the Company’s portfolio, as well as its engagement
with investee companies to encourage the adoption of sustainable business practices which support long-term value creation,
are kept under review by the Board. The Manager reports to the Board in respect of its consideration of ESG factors and how
these are integrated into the investment process; a summary of BlackRock’s approach to ESG and sustainability is set out on
page 48. The Investment Manager’s engagement and voting policy is detailed on page 51 and on the BlackRock website.
Impact
The Board and the Manager believe there is a positive long-term correlation between strong ESG practices and investment
performance. Details regarding the Company’s NAV and share price performance can be found in the Chair’s Statement on
page 5. The portfolio activities undertaken by the Manager can be found in the Investment Manager’s Report on pages 11 to
15.
Share Capital Management
Issue
The Board believes that the Company’s unique investment offering, strong performance and attractive dividend yield
enhances demand for the Company’s shares, which should help to maintain the Company’s share price at as close to the
underlying NAV as possible. However, wider market issues such as the level of interest rates and investor sentiment may lead to
divergence.
Engagement
The Manager reports total return performance statistics to the Board on a regular basis, along with the portfolio yield and the
impact of dividends paid on brought forward distributable reserves.
The Board reviews the Company’s discount/premium to NAV on a regular basis and holds frequent discussions with the
Manager and the Company’s broker regarding the discount/premium level and the factors effecting it.
The Board seeks shareholder authority each year to buy back up to 14.99% of the Company’s issued share capital for
cancellation or to be held in treasury for potential re-issue. Buying back the Company’s shares can, in certain circumstances,
help to narrow the discount and/or reduce the volatility in the share rating.
The Company has also put in place a five yearly mechanism which provides shareholders with a periodic opportunity to tender
their shares at NAV less costs. This last occurred in March 2021, with the next opportunity to take place in February 2026.
46 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Impact
The average discount for the year to 30 September 2025 was 6.4%. During the year the Company’s share price traded at a
maximum discount of 11.2% and a minimum discount of 1.8%. This range compares favourably with the peer group and wider
investment company sector.
Service levels of third party providers
Issue
The Board acknowledges the importance of ensuring that the Company’s principal suppliers are providing a suitable level of
service, including the Manager in respect of investment performance; the Custodian and Depositary in respect of their duties
towards safeguarding the Company’s assets; the Registrar in its maintenance of the Company’s share register and dealing
with investor queries; and the Company’s Broker in respect of the provision of advice and acting as a market maker for the
Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a regular basis. The Board carries out a robust annual
evaluation of the Manager’s performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third party service providers and concludes on their suitability
to continue in their role.
The Board receives regular updates from the AIFM, Depositary, Registrar and Brokers on an ongoing basis.
The Board works closely with the Manager to gain comfort that relevant business continuity plans are operating effectively for
all of the Company’s service providers.
Impact
All performance evaluations were performed on a timely basis and the Board concluded that all third-party service providers,
including the Manager, Custodian, Depositary and Fund Accountant, Registrar and Broker were operating effectively and
providing a good level of service.
The Board has received updates in respect of business continuity planning from the Company’s Manager, Custodian,
Depositary, Fund Accountant, Broker, Registrar and printer, and is confident that arrangements are in place to ensure that a
good level of service will continue to be provided.
Board composition
Issue
The Board is committed to ensuring that its own composition brings an appropriate balance of knowledge, experience and
skills, and that it is compliant with best corporate governance practice under the UK Code, including guidance on tenure and
the composition of the Board’s committees.
Engagement
As it does each year, the Board, discharging the duties of a Nomination Committee, considers the composition of the Board
to ensure that it is suitably aligned with the activities and needs of the Company. Over the year ended 30 September 2025, a
comprehensive search and selection process was conducted to identify a new non-executive Director. Following this thorough
process, Mr Christopher Casey was appointed on 1 October 2025.
The Board will continue to keep its composition under regular review. If it is determined that a new appointment to the Board
is required, it will agree the selection criteria, which will take into account the need to maintain a suitable balance of skills,
knowledge, independence and diversity.
All Directors are subject to a formal evaluation process on an annual basis (more details and the conclusions in respect
of the 2025 evaluation process are given on page 60). All eligible Directors stand for re-election by shareholders annually.
Shareholders may attend the AGM and raise any queries in respect of Board composition or individual Directors in person or
may contact the Company Secretary or the Chair using the details provided on page 124 if they wish to raise any issues.
Strategic report
continued
Section 3: Governance 47
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Impact
The Directors are not aware of any issues that have been raised directly by shareholders in respect of Board composition in
2025. Details for the proxy voting results in favour and against individual Directors’ re-election at the 2024 AGM are given on
the Company’s website at www.blackrock.com/uk/brfi.
Shareholders
Issue
Shareholder support and engagement are critical to the continued existence of the Company and the successful delivery of its
long-term strategy.
Engagement
The Board is committed to maintaining open channels of communication and engaging with shareholders. The Company
welcomes and encourages attendance and participation from shareholders at its Annual General Meetings and shareholders
have the opportunity to meet the Directors and Investment Manager and to address questions to them directly.
The Annual Report and Half Yearly Financial Report are available on the BlackRock website and are also circulated to
shareholders either in printed copy or via electronic communications. In addition, regular updates on performance, monthly
factsheets, the daily NAV and other information are published on the website at www.blackrock.com/uk/brfi.
The Board works closely with the Manager to develop the Company’s marketing strategy, with the aim of ensuring effective
communication with shareholders in respect of the investment mandate and objective. Unlike trading companies, one-to-one
shareholder meetings usually take the form of a meeting with the Investment Manager as opposed to members of the Board.
As well as attending regular investor meetings the Investment Manager holds regular discussions with wealth management
desks and offices to build on the case for, and understanding of, long-term investment opportunities in frontier markets.
The Manager coordinates public relations activity, including meetings between the Investment Manager and relevant industry
publications to set out their vision for the portfolio strategy and outlook for the region.
The Manager releases monthly portfolio updates to the market to ensure that investors are kept up to date in respect of
performance and other portfolio developments and maintains a website on behalf of the Company that contains relevant
information in respect of the Company’s investment mandate and objective.
If shareholders wish to raise issues or concerns with the Board, they are welcome to do so at any time. The Chair is available to
meet directly with shareholders periodically to understand their views on governance and the Company’s performance where
they wish to do so. We offer meetings with the Chair to main shareholders at least annually. She may be contacted by emailing
chairbrfi@blackrock.com.
Impact
The Board values any feedback and questions from shareholders ahead of and during Annual General Meetings in order to
gain an understanding of their views and will take action when and as appropriate. Feedback and questions will also help the
Company evolve its reporting, aiming to make it more transparent and understandable.
Feedback from all substantive meetings between the Investment Manager and shareholders is shared with the Board. The
Directors also receive updates from the Company’s Broker and the Investment Manager on any feedback from shareholders,
as well as share trading activity and share price performance.
48 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Company’s approach to ESG
Environmental, social and governance (ESG) issues can present both opportunities and risks to long-term investment
performance. Whilst the Company does not exclude investment in stocks purely on ESG criteria, material ESG analytics are
integrated into the investment process when weighing up the risks and rewards of investment decisions. The Board believes
that communication and engagement with portfolio companies is important and can lead to better outcomes for shareholders
and the environment than merely excluding investment in certain areas.
More information on BlackRock’s global approach to ESG integration, as well as activity specific to the BlackRock Frontiers
Investment Trust plc portfolio, is set out below. BlackRock has defined ESG integration as the practice of incorporating
financially material E, S and/or G data and information and consideration of sustainability risks into investment decisions with
the objective of enhancing risk-adjusted returns. ESG integration does not change the Company’s investment objective.
More information on sustainability risks may be found in the AIFMD Fund Disclosures document of the Company available on
the Company’s website at www.blackrock.com/uk/brfi.
BlackRock’s approach to ESG integration
BlackRock’s clients have a wide range of perspectives on a variety of issues and investment themes, including sustainable
and low-carbon transition investing. Given the wide range of unique and varied investment objectives sought by its clients,
BlackRock’s investment teams have a range of approaches to considering financially material E, S, and/or G factors. As with
other investment risks and opportunities, the financial materiality of E, S and/or G considerations may vary by issuer, sector,
product, mandate, and time horizon. Depending on the investment approach, this financially material E, S and/or G data or
information may help inform due diligence, portfolio or index construction, and/or monitoring processes of client portfolios, as
well as BlackRock’s approach to risk management.
BlackRock’s ESG integration framework is built upon its history as a firm founded on the principle of thorough and thoughtful
risk management. Aladdin, BlackRock’s core risk management and investment technology platform, allows investors to
leverage financially material E, S and/or G data or information as well as the combined experience of BlackRock’s investment
teams to effectively identify investment opportunities and investment risks. BlackRock’s heritage in risk management
combined with the strength of the Aladdin platform enables BlackRock’s approach to ESG integration.
BlackRock’s ESG Integration Statement can be found at
https://www.blackrock.com/corporate/literature/publication/blk-esginvestment-statement-web.pdf.
Investment stewardship policies
The benchmark investment stewardship policies, which include the BlackRock Investment Stewardship (BIS) team’s Global
Principles, regional voting guidelines and Engagement Priorities, and the BlackRock Active Investment Stewardship (BAIS)
team’s Global Engagement and Voting Guidelines, set out the core elements of corporate governance that guide the
investment stewardship teams’ efforts. Each team takes a globally consistent approach, while recognising the unique markets
and sectors in which companies operate.
These benchmark policies are reviewed annually to reflect changes in market standards, regulations, and feedback from
clients and companies.
BlackRock is committed to transparency in terms of disclosure of its stewardship activities on behalf of clients. The
investment stewardship teams publish their voting policies to help BlackRock’s clients understand their work to advance
clients’ interests as investors in public companies. BlackRock’s stewardship policies and reporting are available at
www.blackrock.com/corporate/insights/investment-stewardship.
By order of the Board
LUCY DINA
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
10 December 2025
Strategic report
continued
Section 3: Governance 49
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Directors present the Annual Report and Financial Statements of the Company for the year ended 30 September 2025.
Status of the Company
The Company carries on business as an investment trust. It has been approved by HM Revenue & Customs as an investment trust
in accordance with Sections 1158 and 1159 of the Corporation Tax Act 2010, subject to the Company continuing to meet eligibility
conditions. The Directors are of the opinion that the Company has conducted its affairs in a manner which will satisfy the conditions
for continued approval.
The Company is domiciled in the UK as an investment company within the meaning of Section 833 of the Companies Act 2006. It
is not a close company and has no employees.
As an investment company that is managed and marketed in the United Kingdom, the Company is an Alternative Investment
Fund (AIF) falling within the scope of, and subject to the requirements of the Alternative Investment Fund Managers’ Directive,
as implemented, retained and onshored in the UK. The Company is governed by the provisions of the Alternative Investment
Fund Managers (Amendment) (EU Exit) Regulations 2019 (‘the Regulations’) and is required to be authorised by the FCA
and must comply with a number of obligations, including the appointment of an AIFM and a depositary to carry out certain
functions. The AIFM must also comply with the Regulations in respect of leverage, outsourcing, conflicts of interest, risk
management, valuation, remuneration and capital requirements. Additional disclosures to both shareholders and the FCA are
also required. Further details are set out on the Company’s website at www.blackrock.com/uk/brfi, the Regulatory disclosures
section on pages 128 to 130 and in the notes to the financial statements on pages 91 to 118.
The Company is a qualifying company for the purposes of Stocks & Shares ISA.
The Common Reporting Standard
On 1 January 2016 the Organisation for Economic Cooperation and Development (OECD) Common Reporting Standard for
Automatic Exchange of Financial Account Information (the Common Reporting Standard) was introduced and is applicable to
the Company.
The legislation requires investment trust companies to provide personal information to HMRC about investors who purchase
shares in investment trusts. The Company will have to provide information annually to the local tax authority on the tax
residencies of a number of non-UK based certificated shareholders and corporate entities. The local tax authority to which the
information is initially passed may in turn exchange the information with the tax authorities of another country or countries
in which the shareholder may be tax resident, where those countries (or tax authorities in those countries) have entered into
agreements to exchange financial account information.
All new shareholders, excluding those whose shares are held in CREST, entered on to the share register will be sent a
certification form for the purposes of collecting this information.
Shareholder Rights Directive II
The Shareholder Rights Directive II took effect from 10 July 2019 with some transitional provisions. It encourages long-term
shareholder engagement and transparency between companies and shareholders. In substantive terms the changes are small
for investment companies and the majority of requirements apply to the Company’s remuneration policy and disclosure of
processes, as well as related party transactions. There are also additional rules for Alternative Investment Fund Managers and
proxy advisers.
GDPR
Data protection rights were harmonised across the European Union following the implementation of the General Data
Protection Regulation (“GDPR”) on 25 May 2018. The Board has sought and received assurances from its third-party service
providers that they have taken appropriate steps to ensure compliance with the regulation. The Company’s ‘Data Privacy
Policy’ can be found on the Company’s website at www.blackrock.com/uk/brfi.
Facilitating retail investments
The Company currently conducts its affairs so that its securities can be recommended by independent financial advisers to
retail investors in accordance with the FCA rules in relation to non-mainstream pooled investments and intends to continue to
do so for the foreseeable future. The securities are excluded from the FCA’s restrictions which apply to non-mainstream pooled
investments because they are shares in an investment trust.
Directors’ report
50 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Directors’ report
continued
Future prospects
Commentary on future prospects for the Company is set out in both the Chair’s Statement on pages 5 to 9 and the Investment
Manager’s Report on pages 11 to 15.
Dividends
Details of dividends paid and payable in respect of the year are set out in the Chair’s Statement on page 5 and in the Strategic
Report on page 36.
Investment management and administration
BlackRock Fund Managers Limited (BFM) was appointed as the Company’s AIFM with effect from 2 July 2014, having been
authorised as an AIFM by the FCA on 1 May 2014. The management contract is terminable by either party on six months’ notice.
BlackRock Investment Management (UK) Limited (BIM (UK)) continues to act as the Company’s Investment Manager under
a delegation agreement with BFM. BIM (UK) also acted as the Secretary of the Company throughout the year. From 1 October
2024, BFM receives a fee of 1.10% per annum of the Company’s daily net asset value (NAV) up to and including US$650
million and 1.0% per annum of the Company’s daily NAV above US$650 million plus a performance fee equal to 10% of any
increase in the NAV at the end of a performance period over and above what would have been achieved had the cumulative
NAV since admission to trading on the Official List of the London Stock Exchange increased in line with the Benchmark Index
(all calculations on a US Dollar basis with dividends reinvested).
The performance fee payable in any year is capped at 2.5% of the net assets of the Company if there is an increase in the
NAV per share, or 1% of the net assets of the Company if there is a decrease of the NAV per share, at the end of the relevant
performance period. It is also subject to a high watermark such that any performance fee arising 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 (US Dollar basis with dividends reinvested) since the last date in relation to which
a performance fee had previously been paid. This mechanism requires the Manager to catch up any previous cumulative
underperformance against the Benchmark Index since launch before a performance fee can be generated. For the year ended
30 September 2025, a performance fee of US$5,980,000 is payable (2024: US$3,510,000). Further details are given in note 4
on page 96.
The Company contributes to a focused investment trust sales and marketing initiative operated by BIM (UK) on behalf of
the investment trusts under its management. The Company’s contribution to the consortium element of the initiative, which
enables the investment trusts to achieve efficiencies by combining certain sales and marketing activities, represented
0.025% per annum (subject to an overall cap) of its net assets of US$401,399,000 (£320,517,000) as at 31 December 2024
and this contribution is matched by BIM(UK). For the year ended 30 September 2025, the capped amount of US$90,000
(excluding VAT) has been accrued in respect of these initiatives. The purpose of the programme overall is to ensure effective
communication with existing shareholders and to attract new shareholders to the Company. This has the benefit of improving
liquidity in the Company’s shares and helps sustain the stock market rating of the Company.
BFM and BIM (UK) are subsidiaries of BlackRock, Inc. which is a publicly traded corporation on the New York Stock Exchange
operating as an independent firm.
Appointment of the manager
The Board considers the arrangements for the provision of management services to the Company on an ongoing basis and
a formal review is conducted annually. As part of the annual review the Board considered the quality and continuity of the
personnel assigned to handle the Company’s affairs, the investment process and the results achieved to date. The Board
believes that the appointment of BFM as AIFM, and the delegation of investment management services to BIM (UK), on the
terms disclosed above, is in the interests of shareholders as a whole given BlackRock’s proven track record of successfully
investing in frontier markets.
Depositary and Custodian
Under the AIFMD, the Company is required to appoint an AIFMD compliant depositary. The Company appointed BNY Mellon
Trust & Depositary (UK) Limited (BNYTD) with effect from 2 July 2014. With effect from 1 November 2017, the role of the
Depositary was transferred by operation of a novation agreement from BNYTD to its parent company, The Bank of New York
Mellon (International) Limited (BNY or the Depositary).
Section 3: Governance 51
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Depositary’s duties and responsibilities are outlined in the investment fund legislation (as defined in the FCA AIF
Rulebook). The main role of the Depositary under AIFMD is to act as a central custodian with additional duties to monitor the
operations of the Company, including monitoring cash flows and ensuring that the Company’s assets are valued appropriately
in accordance with the relevant regulations and guidance. The Depositary is also responsible for enquiring into the conduct
of the AIFM in each annual accounting period. The Depositary receives a fee payable at 0.0095% of the net assets of the
Company. The Company has appointed the Depositary in a tripartite agreement, to which BFM as AIFM is also a signatory. The
Depositary is liable for the loss of financial instruments held in custody.
Under the depositary agreement, custody services in respect of the Company’s assets are provided by The Bank of New York
Mellon (International) Limited. BNY receives a custody fee payable by the Company at rates depending on the number of trades
effected and the location of securities held. The depositary agreement is subject to 90 days’ notice of termination by any party.
Registrar
The Company has appointed Computershare Investor Services PLC as its Registrar (the Registrar). The principal duty of
the Registrar is the maintenance of the register of shareholders (including registering transfers). It also provides services in
relation to any corporate actions, dividend administration, shareholder documentation, the Common Reporting Standard and
the Foreign Account Tax Compliance Act.
The Registrar receives a fixed fee plus disbursements and VAT per annum. Fees in respect of corporate actions are negotiated
on an arising basis.
CFD counterparties
The Company uses derivatives (including contracts for difference) and/or structured financial instruments, for example
P-Notes, to gain exposure to the Frontiers Universe in certain circumstances. HSBC, Bank of America Merrill Lynch, Morgan
Stanley, Goldman Sachs, Citibank and BNP Paribas act as contracts for difference (CFD) counterparties to the Company under
separate International Swaps and Derivatives Association (ISDA) master agreements. The ISDA agreements are terminable
subject to 30 days’ notice by either party.
Change of control
There are no agreements to which the Company is a party that might be affected by a change in control of the Company.
Exercise of voting rights in investee companies
The exercise of voting rights attached to the Company’s portfolio has been delegated to the Investment Manager by BFM.
BIM (UK)’s approach to voting at shareholder meetings, engagement with companies and corporate governance is framed
within an investment context. BIM (UK) believes that sound corporate governance practices by companies can contribute to
their longterm financial performance and thus to better risk adjusted returns. For the period 1 September 2024 to 31 December
2024, BIM (UK)’s proxy voting process was led by the BIS team and thereafter by the BAIS team, located in nine offices around
the world. The team’s globally-coordinated, local presence and breadth of experience enables more frequent and better informed
dialogue with companies.
During the year under review, the Investment Manager voted on 416 proposals at 48 general meetings on behalf of the
Company. At these meetings the Investment Manager voted in favour of most resolutions, but did not support 56 (13.46%)
management resolutions and abstained from voting on 16 (3.85%) resolutions. Most of the votes against were in respect of
proposals which contained insufficient disclosure for the Investment Manager to make an informed decision, or in respect of
executive remuneration packages which were considered to be poorly structured.
Principal risks
The key risks faced by the Company are set out in the Strategic Report on pages 38 to 42.
Going concern
As described in the viability statement on pages 42 and 43 of the Annual Report, 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 period to 31 December 2026,
being a period of at least 12 months from the date of approval of these financial statements and is financially sound. The
Board is still mindful of the current environment of heightened geopolitical risk given global conflicts, the recent significant
market volatility and their current and potential future impact on the global economy.
52 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Directors’ report
continued
The Board has also considered the vote on the five yearly cash exit opportunity and the associated potential tender offer of
up to 100% of the Company’s shares at the forthcoming AGM in 2026. It has also received feedback from the Company’s
corporate broker regarding possible 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 Annual Report, there is no indication that investor demand to opt for a cash exit will be
at a level which would jeopardise the going concern and viability of the Company.
The financial statements of the Company have been prepared on a going concern basis. In reaching this conclusion, the
Directors have considered the nature and liquidity of the portfolio, the Company’s investment objectives, the Company’s
projected and actual income and expenditure, the uncertainties noted in the paragraphs above and its ongoing charges of
approximately 1.42% of net assets (excluding performance fees). The Directors are satisfied that the Company has adequate
resources to continue in operational existence for the foreseeable future, that it is able to meet its liabilities as they fall due and
that it is financially sound.
Directors
The Directors of the Company as at 30 September 2025 and their biographies are set out on pages 31 to 33. Details of
Directors’ interests in the ordinary shares of the Company are set out on pages 65 and 66 of the Directors’ Remuneration
Report. All the Directors, with the exception of Mr Casey, held office throughout the year under review. The Company’s Articles
of Association (‘the Articles’) require that one third of the Directors retire by rotation each year and seek re-election at the AGM
and also that every Director submit himself or herself for re-election at least every three years. Subject to these requirements
for re-election, Directors are appointed to the Board for a specified period, initially for three years and subsequent extensions
are, in each case, at the discretion of the Board. Having given due regard to developing corporate governance and best
practice, all Directors have agreed to retire and submit themselves for re-election annually.
Accordingly, all Directors will retire at the forthcoming AGM and offer themselves for re-election, with the exception of Mr
Casey who will be seeking election having been appointed following the AGM in 2025 and Mr White, who steps down after
nine years of service. Subject to his election, Mr Casey will succeed Mr White as Chairman of the Audit and Management
Engagement Committee. The Board is conscious of the need to maintain a degree of continuity and believes that retaining
Directors with sufficient experience of both the Company and the markets is of great benefit to shareholders. The Board
believes that the performance of all Directors continues to be effective and that they demonstrate a range of business,
financial and asset management skills and experience relevant to the direction and control of the Company. The Board, having
considered the retiring Directors’ performance within the annual Board performance evaluation process, hereby recommends
that shareholders vote in favour of each Director’s proposed re-election/election. Further information on the respective skills
and experience of each member of the Board can be found on pages 54 and 55.
There were no contracts subsisting during the year under review or up to the date of this report in which a Director of the
Company is or was materially interested and which is or was significant in relation to the Company’s business. None of the
Directors is entitled to compensation for loss of office on the takeover of the Company. None of the Directors has a service
contract with the Company.
Directors’ indemnity and Directors’ liability insurance
The Company has maintained appropriate Directors’ liability insurance cover throughout the year. In addition to Directors’
and Officers’ liability insurance cover, the Company’s Articles provide, subject to the provisions of applicable UK legislation, an
indemnity for Directors in respect of costs incurred in the defence of any proceedings brought against them by third parties
arising out of their positions as Directors, in which they are acquitted, or judgement is given in their favour. The Company has
entered into Deeds of Indemnity with Directors individually which are available for inspection at the registered office of the
Company and will be available at the Annual General Meeting.
Conflicts of interest
The Board has put in place a framework in order for Directors to report conflicts of interest or potential conflicts of interest. All
Directors are required to notify the Company Secretary of any situations or potential situations where they consider that they
have or may have a direct or indirect interest or duty that conflicted or possibly conflicted with the interests of the Company.
The Board has considered that the framework worked effectively throughout the period under review. All such situations were
reviewed by the Board and duly authorised. Directors were also made aware that there remains a continuing obligation to
notify the Company Secretary of any new situation that may arise, or any change to a situation previously notified. The Board
will continue to review all notified situations on a regular basis.
Section 3: Governance 53
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Directors’ remuneration report and policy
The Directors’ Remuneration Report and Remuneration Policy is set out on pages 64 to 68. An advisory ordinary resolution
to approve the Directors’ Remuneration Report (excluding any content relating to the Remuneration Policy) will be put to
shareholders at the Company’s forthcoming AGM in February 2026. The Company is required to put the Directors’ Remuneration
Policy to a binding shareholder vote every three years. The Company’s Remuneration Policy was last put to shareholders at the
AGM in 2023 and therefore a resolution approving the policy will be laid before shareholders at the AGM in 2026.
Substantial share interests
As at 30 September 2025, the Company had received notification in accordance with the FCA’s Disclosure Guidance and
Transparency Rule 5.1.2R of the following interests in 3% or more of the voting rights attaching to the Company’s issued share
capital.
Name
Number of
voting rights
% of
total voting
rights
City of London Investment Management Company Limited 27,206,283 14.37
Investec Wealth 16,917,738 8.94
Rathbones Group 13,248,711 7.00
1607 Capital Partners, LLC 9,164,700 4.84
Evelyn Partners 8,397,137 4.44
As at 8 December 2025, being the latest practicable date prior to disclosure of the Annual Report, the Company had received the
following additional notification of interests in 3% or more of the voting rights attached to the Company’s issued share capital.
Name
Number of
voting rights
% of
total voting
rights
City of London Investment Management Company Limited 24,561,943 12.98
Share capital, ordinary share issues and repurchases
At 30 September 2025, the Company had 241,822,801 ordinary shares in issue, of which 52,552,553 were held in treasury.
The Company also has 50,000 management shares in issue which carry the right to a fixed cumulative preferred dividend. The
management shares are held by the Manager, BlackRock Investment Management (UK) Limited. Full details of the Company’s
issued share capital are given in notes 15 and 16 to the financial statements on pages 102 and 103. Details of the voting rights in
the Company’s shares as at the date of this report are given in note 17 to the Notice of Annual General Meeting on page 143.
The Company’s ordinary shares carry the right to receive dividends and have one voting right per ordinary share. There are no
restrictions on the voting rights or the transfer of the ordinary shares. There are no shares which carry specific rights with regard
to the control of the Company.
The Directors seek shareholder authority each year to allot new shares, dis-applying pre-emption rights, and to repurchase the
Company’s shares in the market, to be cancelled or retained in treasury for re-issue. Although the Investment Manager initiates
any buy backs, the policy and parameters are set by the Board and reviewed at regular intervals. The Company intends to raise
the cash needed to finance the purchase of shares either by selling securities in the Company’s portfolio or by short-term
borrowing.
The current authority to issue new shares or purchase ordinary shares in the market (to be held in treasury or for cancellation)
was granted to the Directors on 5 February 2025 and expires at the conclusion of this year’s AGM. The Directors are proposing
that these authorities be renewed at the forthcoming AGM.
During the year, the Company repurchased 55,500 ordinary shares into treasury during the year at an average price of 150.73p
per share for a total cost of US$107,000. Since the year end and up to 8 December 2025, the Company has not bought back any
shares. The Company currently holds 52,552,553 (2024: 52,522,053) ordinary shares in treasury.
No ordinary shares were allotted during the year to 30 September 2025 or following the year end.
54 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Directors’ report
continued
Streamlined energy and carbon reporting (SECR) statement: greenhouse gas (GHG)
emissions and energy consumption disclosure
As an externally managed investment company, the Company has no greenhouse gas emissions to report from its operations,
nor does it have any responsibility for any other emissions producing sources under the Companies Act (Strategic Report and
Directors’ Reports) Regulations 2013. For the same reason, the Company considers itself to be a low energy user under the
SECR regulations and therefore is not required to disclose energy and carbon information.
Articles of association
Any amendments to the Company’s Articles must be made by special resolution.
Annual general meeting
The following information to be discussed at the forthcoming AGM is important and requires your immediate attention.
If you are in any doubt about the action you should take, you should seek advice from your stockbroker, bank manager,
solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000 (as amended).
If you have sold or transferred all of your ordinary shares in the Company, you should pass this document, together with any
other accompanying documents (but not the personalised Form of Proxy) as soon as possible to the purchaser or transferee,
or to the stockbroker, bank or other agent through whom the sale or transfer was effected, for onward transmission to the
purchaser or transferee.
The business of this year’s AGM consists of 15 resolutions. Resolutions 1 to 12 are proposed as ordinary resolutions and
resolutions 13 to 15 are being proposed as special resolutions.
Resolution 1 – Approval of the Annual Report and Financial Statements
This resolution seeks shareholder approval of the Annual Report and Financial Statements for the year ended 30 September
2025 and the Auditor’s report thereon.
Resolution 2 – Approval of the Directors’ Remuneration Report
This resolution is an advisory vote on the Directors’ Remuneration Report, which is set out on pages 64 to 66, excluding any
content relating to the remuneration policy.
Resolution 3 – Approval of the Directors’ Remuneration Policy
This is a binding resolution to approve the Directors’ Remuneration Policy as set out on pages 67 and 68.
Resolution 4 – Approval of a final dividend
Resolution 4 seeks shareholder approval of a final dividend of 6.35 cents per ordinary share for the year ended 30 September 2025.
Resolutions for the re-election and election of Directors
Resolutions 5 to 9 relate to the re-election and election of the Directors. The Board has undertaken a formal performance
evaluation during the year and confirms that the performance of the Directors standing for re-election/election continues to be
effective and that each Director demonstrates commitment to their role. The biographies of the Directors are set out on pages
31 to 33 and are incorporated into this report by reference. The skills and experience that each Director brings to the Board for
the long-term sustainable success of the Company are set out below. All the Directors will stand for election or re-election by
shareholders at the AGM in accordance with the requirements of the UK Code.
Resolution 5
Relates to the re-election of Katrina Hart who was appointed on 1 October 2019. Katrina has extensive knowledge of the UK
retail investment market and has served on the boards of asset management operating companies and several investment
trust companies.
Resolution 6
Relates to the re-election of Elisabeth Airey who was appointed on 10 December 2021. Elisabeth has provided significant
insight to the Board through her financial and corporate experience and knowledge of the investment management sector.
She has served on boards of several investment trust companies.
Section 3: Governance 55
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Resolution 7
Relates to the re-election of Lucy Taylor-Smith who was appointed on 10 December 2021. Lucy brings business and executive
experience within the financial services industry and beyond, having worked with a broad range of publicly listed entities. She
has spent much of her career in Asia.
Resolution 8
Relates to the re-election of Hatem Dowidar who was appointed on 7 February 2024. Hatem brings extensive experience of
business, executive and consumer related matters outside of the financial services industry and across many emerging and
frontier markets.
Resolution 9
Relates to the election of Christopher Casey who was appointed on 1 October 2025. Christopher is a highly experienced
non-executive Director and Audit Chair and brings extensive investment trust expertise to the Board.
Resolutions 10 and 11 – Reappointment of the external Auditor and the Auditor’s Remuneration
These resolutions relate to the re-appointment and remuneration of the Company’s Auditor. The Company, through its
Audit and Management Engagement Committee, has considered the independence and objectivity of the external Auditor
and are satisfied that the Auditor remains independent. Further information in relation to the assessment of the Auditor’s
independence can be found on pages 73 and 74.
Resolutions relating to the following items of special business will be proposed at the forthcoming AGM.
Resolution 12 – Authority to allot ordinary shares
Resolution 12 seeks to renew the authority of the Directors to allot ordinary shares for cash up to an aggregate nominal
amount of US$189,270 which is equivalent to 18,927,000 ordinary shares of 1 cent each and represents 10% of the
Company’s issued ordinary share capital (excluding any treasury shares) as at the date of the Notice of Annual General
Meeting, or, if different, such nominal amount as represents 10% of the Company’s issued share capital as at the date of the
passing of this resolution.
Special Resolution 13 – Authority to dis-apply pre-emption rights
Special Resolution 13 empowers the Directors to allot new shares for cash or to sell ordinary shares held by the Company in
treasury, otherwise than to existing shareholders on a pro rata basis, up to an aggregate nominal amount of US$189,270 which
is equivalent to 18,927,000 ordinary shares of 1 cent each and represents 10% of the Company’s issued ordinary share capital
(excluding any treasury shares). The special resolution to be proposed will enable the Directors, at their discretion, to allot a
limited number of equity securities for cash and will also provide the Directors with greater flexibility should appropriate business
opportunities arise.
Special Resolution 14 – Authority to buy back ordinary shares
The special resolution to be proposed will seek to renew the authority granted to Directors enabling the Company to purchase its
own ordinary shares. Purchases of ordinary shares will only be made through the market for cash at prices below the prevailing
NAV per ordinary share. Under the Listing Rules of the Financial Conduct Authority the maximum price which can be paid shall
be the higher of (i) an amount equal to 5% above the average of the market values of the ordinary shares for the five business
days immediately preceding the date on which the purchase is made and (ii) the higher of the price quoted for (a) the last
independent trade of, and (b) the highest current independent bid for, any number of ordinary shares on the trading venue where
the purchase is carried out. In making purchases, the Company will deal only with member firms of the London Stock Exchange.
The Directors are seeking authority to purchase up to 28,371,610 ordinary shares (being approximately 14.99% of the issued
ordinary share capital as at the date of the Notice of Annual General Meeting) or, if different, such nominal amount as represents
14.99% of the Company’s issued share capital as at the date of the passing of this resolution.
Special Resolution 15 – Notice period for General Meetings
Special Resolution 15 empowers the Directors to hold general meetings (other than annual general meetings) on 14 days’
notice, which is the minimum notice period permitted by the Companies Act 2006. The EU Shareholder Rights Directive
increases the minimum notice period to 21 days unless two conditions are met.
The first condition is that the Company offers facilities for shareholders to vote by electronic means. The second condition is
that there is an annual resolution of shareholders approving the reduction in the minimum notice period from 21 days to 14
days, hence this resolution being proposed. It is not intended that this power will be used as a matter of course, rather that
this flexibility will be utilised where the Board believes that the nature of the business to be conducted requires that a general
meeting be convened at 14 days’ notice.
56 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Recommendation
Your Board considers that the resolutions to be proposed at the AGM are likely to promote the success of the Company for the
benefit of its members as a whole and are in the best interests of the Company and its shareholders as a whole. The Directors
unanimously recommend that shareholders vote in favour of each resolution, as they intend to do in respect of their own
beneficial holdings.
Corporate governance
Full details are given in the Corporate Governance Statement on pages 57 to 63. The Corporate Governance Statement forms
part of this Directors’ Report.
Audit information
As required by Section 418 of the Companies Act 2006, each of the Directors who held office at the date of approval of this
report confirms that, so far as they are aware, there is no relevant audit information of which the Company’s auditors are
unaware and each Director has taken all the steps that they ought to have taken as a Director to make themselves aware of any
relevant audit information and to establish that the Company’s Auditors are aware of that information.
Independent Auditor
In line with EU regulations on mandatory audit rotation, an audit tender process was carried out by the Company during 2021
and, as a result, it was recommended that Ernst & Young LLP be re-appointed as the Company’s independent Auditor. Ernst &
Young LLP has indicated its willingness to continue in office and resolutions proposing their reappointment and authorising
the Company’s Audit and Management Engagement Committee to determine its remuneration for the ensuing year will be
submitted at the AGM.
The Directors’ Report was approved by the Board at its meeting on 10 December 2025.
By order of the Board
LUCY DINA
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
10 December 2025
Directors’ report
continued
Section 3: Governance 57
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Chair’s introduction
Corporate governance is the process by which the Board seeks to look after shareholders’ interests and to protect and enhance
shareholder value. Shareholders hold the Directors responsible for the stewardship of the Company, delegating authority and
responsibility to the Directors to manage the Company on their behalf and holding them accountable for its performance.
The Board is ultimately responsible for framing and executing the Company’s strategy and for closely monitoring risks.
We aim to run our Company in a manner which is responsible and consistent with our belief in honesty, transparency and
accountability. In our view, good governance means managing our business well and engaging effectively with investors. We
consider the practice of good governance to be an integral part of the way we manage the Company and we are committed to
maintaining the highest standards of financial reporting, transparency and business integrity.
The Board is accountable to shareholders for the governance of the Company’s affairs. The Directors have considered
the principles and provisions of the 2019 AIC Code of Corporate Governance (AIC Code). The AIC Code addresses all the
principles set out in the 2018 UK Corporate Governance Code (UK Code), as well as setting out additional principles and
recommendations on issues that are of specific relevance to investment trusts.
The AIC Code is available from the Association of Investment Companies (www.theaic.co.uk). The UK Code is available from the
Financial Reporting Council website (www.frc.org.uk).
This report, which forms part of the Directors’ Report, explains how the Board deals with its responsibility, authority and
accountability.
Compliance
The Board has made appropriate disclosures in this report to ensure that the Company meets its continuing obligations. It
should be noted that, as an investment trust, the majority of the Company’s day-to-day responsibilities are delegated to third
parties, the Company has no employees, and the Directors are non-executive. Thus, not all provisions of the UK Code are
directly applicable to the Company.
Throughout the year, the Company has complied with the recommendations of the AIC Code and provisions of the UK Code as
applicable to investment trust companies, except the provisions relating to:
• the role of the chief executive; and
• the executive directors’ remuneration.
For the reasons set out in the AIC Code of Corporate Governance, and as explained in the UK Code, the Board considers that
these provisions are not relevant to the position of the Company being an externally managed investment company with no
executive employees. In view of BlackRock having an internal audit function it does not consider it necessary for the Company
to have its own internal audit function. The Board receives regular reports from BlackRock’s internal audit function. In addition,
BlackRock’s internal audit department provides an annual presentation to the Audit Committee chairmen of the BlackRock
investment trusts on the results of testing performed in relation to BlackRock’s internal control processes.
As the Company has no employees and has a small Board of solely non-executive Directors, the Board has not established a
separate remuneration committee. The remuneration of Directors is dealt with by the Board as a whole.
Information on how the Company has applied the principles of the AIC Code and the UK Code is provided in the Directors’
Report as set out below:
Board composition
The Board currently consists of six non-executive Directors, all of whom are independent of the Company’s Manager.
The UK Code recommends that the Board should appoint one of the independent non-executive Directors to be the senior
independent director to provide a sounding board for the Chair and to serve as an intermediary for the other Directors when
necessary. The Code states that the senior independent director should be available to shareholders if they have concerns
which contact through the normal channels of chair, chief executive or other executive directors has failed to resolve or for
which such contact is inappropriate.
Corporate governance statement
58 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Corporate governance statement
continued
The Board regularly considers its composition to ensure that it is suitably aligned with the objectives and activities of the
Company. Further information on the Directors can be found in the Directors’ Report on pages 49 to 56.
The Directors’ biographies demonstrate a breadth of investment knowledge, business and financial skills which enables them
to provide effective strategic leadership and proper governance of the Company. Details of the Chair’s other significant time
commitments can be found on page 31. Board composition is kept under review and when the need arises, care will be taken
to ensure that the selected candidate has sufficient time to devote to the role. Independent external consultants are typically
used to identify potential candidates.
Board policy on independence and tenure
The Board’s independence, including that of the Chair, has been considered in detail, and all current Directors are deemed to
be wholly independent. A number of factors were taken into account when making this assertion, including length of tenure,
the individual contribution of each Director, the time spent on their other directorships and interests, and their ongoing
commitment and enthusiasm to promote the long-term success of the Company, its shareholders and wider stakeholders.
The Board also takes into account the provisions of the UK Corporate Governance Code and evolving best practice when
considering the independence criteria of the Board, its Committees and that of individual Directors. However, the Board does
not believe that length of tenure should be the predominant factor in determining an individual’s independence. The Board
believes that the overarching objective should be to establish and maintain a board which has a range of tenure, skills and
experience such that it can effectively discharge its duties and retain the benefits of corporate memory, while also benefiting
from regular board refreshment, which inevitably brings new ideas, perspectives and, importantly, challenge to the status quo
and accepted thinking.
However, mindful of the desirability of a combination of continuity and renewal, the Board has adopted a policy of limiting
Directors’ tenure to nine years. Subject to the constraints of effective succession planning, it is the Board’s aim that no Director
will serve on the Board for more than nine years; although in the case of the Chair, their tenure can be extended by up to
two years in exceptional circumstances. The longer time limit for the Chair’s tenure is to allow for continuity of leadership in
circumstances where a Chair is appointed from the ranks of existing Board members after having already served on the Board
for a period of time.
After due consideration and further to the annual evaluation process, the Board has concluded that all the Directors continue
to be independent in both character and judgement and that there are no relationships or circumstances which are likely to
affect the judgement of any Director. The Board believes that it would be in the Company’s best interests for all the Directors to
be proposed for re-election or election, given their material level of contribution. Details of the evaluation process are set out in
the Corporate Governance Statement.
There were no contracts subsisting during or at the end of the year in which a Director of the Company is or was materially
interested and which is or was significant in relation to the Company’s business. None of the Directors is entitled to
compensation for loss of office on the takeover of the Company. None of the Directors has a service contract with the Company.
The Directors’ attendance record is set out in the Directors’ biographies section on pages 31 to 33.
Board diversity policy
The Board recognises the benefits of diversity at Board level and believes that Directors should have a mix of different skills,
experience and backgrounds. The Board’s aim regarding diversity, including that of age, gender, educational and professional
background and other broader diversity characteristics, is to take these into account during the recruitment and appointment
process. However, the Board is committed to an objective of appointing the most appropriate candidate, regardless of gender
or other forms of diversity.
A broad range of factors are taken into account when setting an appointment brief and during the search and selection
process. All Board appointments must be made on merit, in the context of the skills, experience, independence and knowledge
which the Board as a whole requires to be effective.
As at 30 September 2025 the Board had a 40:60 male to female ratio. This is aligned to relevant regulation and best practice.
The Board will continue to consider other diversity characteristics, such as age, ethnicity, gender, disability, educational or
professional background when appraising Board composition.
Section 3: Governance 59
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Board has complied with the recommendations of the Parker Review in respect of board diversity and the changes to
the FCA’s Listing Rules which set diversity targets and associated disclosure requirements for UK companies listed on the
premium and standard segment of the London Stock Exchange. Listing Rule 22 Annex 1 requires listed companies to include
a statement in their annual reports and accounts in respect of certain targets on board diversity, or if those new targets have
not been met to disclose the reasons for this. The Company has reported against these diversity targets for the year ending
30September2025. Further information on the composition and diversity of the Board and its Committees can be found in
the disclosure table which follows below:
Gender
Number of
Board members
Percentage
of Board
Number of
senior roles held
1
Men 2 40 1
Women 3 60 2
Ethnicity
2,3
White British (or any other white background) 4 80 3
Other ethnic group, including Arab 1 20 0
Black/African/Caribbean/Black British 0 0 0
Mixed/Multiple Ethnic Groups Asian/Asian British 0 0 0
1
According to the Listing Rules, the Chair and Senior Independent Director are defined as senior positions. In addition, the Company
considers that the role of the Audit and Management Engagement Committee Chair is a senior position.
2
Categorisation of ethnicity is stated in accordance with the Office of National Statistics classification.
3
Columns corresponding to the ‘Number in executive management’ and ‘Percentage of executive management’ are not included in
the table. These are inapplicable as the Company is externally managed and does not have executive management functions.
Succession planning
The rules concerning the appointment and replacement of Directors are contained in the Company’s Articles and are set
out in more detail in the Directors’ Report on page 52. The Directors support a planned and progressive refreshment of the
Board, and recognise the benefits of having a range of tenures on the Board. The Board’s tenure and succession policy seeks
to ensure that there is an appropriate balance of skills, knowledge, independence, experience and diversity on the Board. This
is achieved through the regular evaluation of both the composition and performance of the Board and, where required, the
appointment of new Directors who possess appropriate skills and experience and who are able to commit the necessary time
to effectively carry out their duties. Further information in respect of Director tenure can be found in the Directors’ Report on
page 52.
Directors’ training and induction
When a new Director is appointed to the Board, he or she is provided with all relevant information regarding the Company
and their duties and responsibilities as a Director. In addition, a new Director will also spend some time with representatives
of the Manager and the Investment Manager whereby he or she will become familiar with the various processes which the
Manager and the Investment Manager consider necessary for the performance of their duties and responsibilities to the
Company. The Company’s policy is to encourage Directors to keep up to date and attend training courses on matters which
are directly relevant to their involvement with the Company and its activities. TheDirectors also receive regular briefings from,
amongst others, the Auditor and the Company Secretary regarding any proposed developments or changes in applicable law
or regulation which could affect the Company and/or the Directors.
Directors’ liability insurance
The Company has maintained appropriate Directors’ Liability Insurance cover throughout the year.
Board’s responsibilities
The Board’s responsibilities are set out on page 30 along with information on the schedule of meetings held during the year.
The Board may also convene additional meetings to consider strategy and other issues. There is regular contact with the
Manager and the Investment Manager between meetings. A formal schedule of matters specifically reserved for decision by
the Board has been defined. The Board is supplied in a timely manner with information in a form and of a quality appropriate
60 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Corporate governance statement
continued
to enable it to discharge its duties. Strategic issues and all operational matters of a material nature are determined by the
Board. The Directors also have access to the advice and services of the Company Secretary, who is responsible for ensuring
that relevant procedures are followed and that it complies with applicable rules and regulations. Where necessary, in the
furtherance of their duties, the Directors may seek independent professional advice at the expense of the Company.
The Board has responsibility for ensuring that the Company maintains proper accounting records which disclose with
reasonable accuracy at any time the financial position of the Company and which enable it to ensure that the financial
statements comply with the Companies Act 2006 and other applicable law and regulation. It is the Board’s responsibility to
present a fair, balanced and understandable assessment, which extends to interim and other price-sensitive public reports.
The Board is also responsible for safeguarding the assets of the Company and for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
Committees of the Board
Nomination committee
As the Board comprises only non-executive Directors it fulfils the function of the Nomination Committee and a separate
committee has not been established.
The Board regularly reviews its structure and composition, including the balance of knowledge, independence, experience,
skills and diversity on the Board. It also determines policy on succession planning and tenure. Appointments of new Directors
are made on a formalised basis, with the Board agreeing the selection criteria and the method of search, selection, recruitment
and appointment. The services of an external search consultant may be used to identify potential candidates.
An external recruitment firm, Tyzack Partners, was engaged by the Board this year to identify candidates in the recruitment
process that resulted in the appointment of Mr Casey. Tyzack Partners is wholly independent of the Company.
Audit and management engagement committee
A separate Audit and Management Engagement Committee has been established and comprises the whole Board. Further
details are given in the Report of the Audit and Management Engagement Committee on pages 69 to 74.
Remuneration committee
The Company’s policy on Directors’ remuneration, together with details of the remuneration of each Director, is detailed in
the Directors’ Remuneration Report and Remuneration Policy on pages 64 to 68. As stated in the Directors’ Remuneration
Policy, the full Board determines the level of Directors’ fees and accordingly there is no separate Remuneration Committee. No
Director is involved when his or her individual remuneration is determined.
Performance evaluation
The Board reviews its performance formally on an annual basis. An appraisal system has been agreed by the Board for
the evaluation of the Board, its Committee and individual Directors, including the Chair. The evaluation for the year ended
30September 2025 has been carried out. This took the form of self and peer group assessment followed by individual
discussions between the Chair and individual Directors as required. The performance of the Chair was reviewed by the other
Directors, led by Mr White. The results of the evaluation process were presented to and discussed by the Board and it was
agreed that the current composition of the ongoing Board reflected a suitable balance of skills, experience, diversity and
independence and that the Board, as a whole, continues to function effectively.
Delegation of responsibilities
The Board has delegated the following areas of responsibility:
Management and administration
The management of the investment portfolio and the administration of the Company have been delegated to BlackRock Fund
Managers Limited (BFM) as the Company’s AIFM, and BFM (with the permission of the Company) has delegated certain
investment management and other ancillary services to BlackRock Investment Management (UK) Limited (BIM (UK)) (the
Investment Manager). The contractual arrangements with, and assessment of, the Manager are summarised on page 50.
The Investment Manager, operating under guidelines determined by the Board, has direct responsibility for the decisions
relating to the day-to-day running of the Company and is accountable to the Board for the investment, financial and operating
performance of the Company.
Section 3: Governance 61
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The assets of the Company have been entrusted to the Depositary for safekeeping. The Depositary is The Bank of New York
Mellon (International) Limited (BNY). The address at which this business is conducted is given on page124.
The Board has delegated the exercise of voting rights attaching to the securities held in the portfolio to the Investment
Manager. Details of the Investment Manager’s voting policy are set out on page 51.
Internal controls
The Board is responsible for establishing and maintaining the Company’s systems of internal controls, for reviewing their
effectiveness, for ensuring that financial information published or used within the business is reliable, and for regularly
monitoring compliance with regulations governing the operation of investment trusts. The Board, through its Audit and
Management Engagement Committee, reviews the effectiveness of the internal control systems on an ongoing basis to
identify, evaluate and mitigate the Company’s significant risks. As part of that process there are procedures designed to
identify and evaluate any failings or weaknesses. Should a case be categorised by the Board as significant, procedures exist to
ensure that necessary remedial action is taken. The Board is not aware of any significant failings or weaknesses arising in the
year under review.
Control of the risks identified, covering financial, operational, compliance and risk management, is embedded in the
operations of the Company. There is a monitoring and reporting process to review these controls, which has been in place
throughout the year under review and up to the date of this report, carried out by BlackRock’s corporate audit department. This
accords with the Financial Reporting Council’s “Risk Management, Internal Control and Related Financial Reporting”.
The Company’s risk register sets out the risks relevant to the Company and describes, where relevant, the internal controls that
are in place at the AIFM, the Investment Manager and other third-party service providers to mitigate these risks.
The Audit and Management Engagement Committee (the Committee) formally reviews this register on a semi-annual
basis and BFM as the Company’s AIFM reports on any significant issues that have been identified in the period. In addition,
BlackRock reports to the Committee on a semi-annual basis on the results of testing performed in relation to BlackRock’s
internal control processes. The Depositary also reviews the control processes in place at the Custodian, the Fund Accountant
and the AIFM and reports formally to the Committee twice yearly. Both the AIFM and the Depositary will escalate issues and
report to the Committee outside of these meetings on an ad-hoc basis to the extent that this is required. The Committee also
receives annual and quarterly Service Organisation Control (SOC 1) reports respectively from BlackRock and The Bank of New
York Mellon on the internal controls of their respective operations, together with the opinion of their reporting accountants.
The Board recognises that these control systems can only be designed to manage rather than eliminate the risk of failure to
achieve business objectives, and to provide reasonable, but not absolute, assurance against material misstatement or loss, and
relies on the operating controls established by the Manager, the Investment Manager and BNY. The Manager prepares revenue
forecasts and management accounts which allow the Board to assess the Company’s activities and review its performance. The
Board and the Investment Manager have agreed clearly defined investment criteria, specified levels of authority and exposure
limits. Reports on these issues, including performance statistics and investment valuations, are submitted to the Board at each
meeting.
The Company does not have its own internal audit function, as all the administration is delegated to the Manager. The
Board monitors the controls in place through BlackRock’s internal audit department and believes that there is currently no
requirement for the Company to have its own internal audit function, although this matter is kept under review.
Financial reporting
The Statement of Directors’ Responsibilities in respect of the Annual Report and Financial Statements is set out on pages 75
and 76, the Independent Auditor’s Report on pages 80 to 86 and the statement of Going Concern on pages 51 and 52 and on
longer-term viability on pages 42 and 43.
62 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Corporate governance statement
continued
ESG matters
Generally, investment trusts do not employ staff and accordingly have no direct impact on social matters but can be
significant investors in the economies of the regions in which they invest. The Directors believe that ESG issues can present
both opportunities and risks to long-term investment performance. Whilst the Company does not exclude investment in stocks
purely on ESG criteria, material ESG analytics are integrated into the investment process when weighing up the risks and
rewards of investment decisions. Details of the Company’s approach to ESG are set out on page 48.
Bribery prevention policy
The provision of bribes of any nature to third parties in order to gain a commercial advantage is prohibited and is a criminal
offence. The Board has a zero tolerance policy towards bribery and a commitment to carry out business fairly, honestly and
openly. The Board takes its responsibility to prevent bribery by the Company’s Manager on its behalf very seriously and
BlackRock has anti-bribery policies and procedures in place which are proportionate and risk based. The Company’s service
providers have been contacted in respect of their anti-bribery policies and, where necessary, contractual changes are made to
existing agreements in respect of anti-bribery provisions.
Criminal Finances Act
The Criminal Finances Act 2017 came into force on 25 May 2018 and introduced a new corporate criminal offence of “failing
to take reasonable steps to prevent the facilitation of tax evasion”. The Board has confirmed that it is the Company’s policy to
conduct all of its business in a transparent and ethical manner. The Board takes a zero-tolerance approach to facilitation of tax
evasion.
Communication with shareholders
All shareholders have the opportunity to attend and vote at the AGM. The Notice of Annual General Meeting is sent out at least
21 days in advance of the meeting and sets out the business of the meeting which is explained in the Directors’ Report on
pages 54 and 55. Separate resolutions are proposed for substantive issues.
In addition, regular updates on performance are available to shareholders on the BlackRock website and the Investment
Manager will review the Company’s portfolio and performance at the AGM, where the Board and representatives of the
Investment Manager will be available to answer shareholders’ queries. Proxy voting figures will be announced to shareholders
at the AGM and will be made available on the Company’s website at www.blackrock.com/uk/brfi shortly after the meeting. In
accordance with Provision 4 of the UK Corporate Governance Code, when 20% of votes have been cast against a resolution
at any general meeting the Board will explain, when announcing the results of voting, what actions it intends to take to
understand the reasons behind the vote result. An interim action statement will also be published within six months of the
vote, setting out the views receieved from shareholders and the actions the Company has taken, and will include a summary of
the feedback and actions in the next Annual Report.
The Company’s willingness to meet with shareholders is also demonstrated by the programmes of institutional presentations
made by the Investment Manager and the Investment Manager’s presentations at various retail events. The Chair also offers
to meet with the largest shareholders throughout the year and attends several industry events with the aim of engaging with
shareholders. The Board discusses any feedback from meetings with shareholders with the Investment Manager at each
Board meeting. It also receives reports from its corporate broker in relation to the views of shareholders and demand for the
Company’s shares.
There is also a clear channel of communication between the Board and the Company’s shareholders via the Company
Secretary. The Company Secretary has no express authority to respond to enquiries addressed to the Board and all
communication, other than junk mail, is redirected to the Chair of the Board. There is also a section within this report entitled
“Additional Information – Shareholder Information”, on pages 125 to 127 which provides an overview of useful information
available to shareholders. Should shareholders wish to contact the Chair, you can do so by emailing chairbrfi@blackrock.com
or by writing to the Company Secretary at the address given on page 124.
The Company’s accounts, regular factsheets and other information are also published on the BlackRock website at
www.blackrock.com/uk/brfi. The work undertaken by the Auditor does not involve consideration of the maintenance and
integrity of the website and, accordingly, the Auditor accepts no responsibility for any changes that have occurred to the
accounts since they were initially presented on the website. Visitors to the website need to be aware that legislation in the
United Kingdom governing the preparation and dissemination of the accounts may differ from legislation in their jurisdiction.
Section 3: Governance 63
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Disclosure guidance and transparency rules
Other information required to be disclosed pursuant to the Disclosure Guidance and Transparency Rules has been placed
in the Directors’ Report on pages 49 to 56 because it is information which refers to events that have taken place during the
course of the year. The following is a list of that information:
• substantial share interests;
• share capital;
• share issues;
• share repurchases; and
• greenhouse gas emissions.
In addition, information on Directors’ shareholdings is given on pages 65 and 66 in the Directors’ Remuneration Report and in
the Directors’ biographies which can be found on pages 31 to 33.
For and on behalf of the Board
KATRINA HART
Chair
10 December 2025
64 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Board presents the Directors’ Remuneration Report for the year ended 30 September 2025 which has been prepared in
accordance with Sections 420-422 of the Companies Act 2006 and the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008.
The law requires the Company’s Auditor to audit certain of the disclosures provided. Where disclosures have been audited,
they are indicated as such. The Auditor’s opinion is included in their report on pages 80 to 86.
Statement by the Chair
A key driver of the remuneration policy is that fees payable to Directors should be designed to support the strategy and the
long-term success of the Company. Following this review it was agreed that with effect from 1 October 2025 all Directors’
fees would be increased to the levels set out in the policy table on page 68. The basis for determining the level of any change
in Directors’ remuneration is set out in the Directors’ Remuneration Policy on pages 67 and 68. Directors’ fees were last
increased on 1 October 2024. No discretionary fees have been paid to Directors during the year or since inception and the
payment of such fees is expected to be a rare occurrence, only necessary in exceptional circumstances. Any discretionary fees
paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by an explanation of the
work undertaken and why it was deemed necessary to pay such additional remuneration.
Remuneration committee
The Board as a whole fulfils the function of the Remuneration Committee and considers any change in the Directors’ remuneration
policy. A separate Committee has therefore not been established. The Company’s Directors are all non-executive and are
independent of the Manager. No advice or services were provided by any external agencies or third parties during the year.
Implementation of the remuneration policy in the year 2025
The Remuneration Policy has been implemented as set out on pages 67 and 68. The Directors do not receive any performance
related remuneration or incentives. Discretionary payments are permitted under the policy; however, such discretionary
payments would only be considered in exceptional circumstances.
Remuneration/service contracts
The maximum remuneration of the Directors is determined within the limits of the Company’s Articles and currently amounts
in aggregate to £250,000.
The Company does not and has not awarded any share options or long-term performance incentives to any of the Directors.
None of the Directors has a service contract with the Company or receives any non-cash benefits or pension entitlements. The
terms of their appointment are detailed in an appointment letter issued to them when they join the Board. These letters are
available for inspection at the registered office of the Company.
Remuneration implementation report
A single figure for total remuneration of each Director is set out in the table below for the year ended 30 September 2025:
Year ended 30 September 2025 Year ended 30 September 2024
Directors
Base
Salary
Taxable
benefits
1
Total
Base
Salary
Taxable
benefits
1
Total
£ £ £ £ £ £
Katrina Hart (Chair)
2
46,200 209 46,409 39,792 – 39,792
Stephen White (Audit and Management
Engagement Committee Chairman) 38,600 313 38,913 36,750 – 36,750
Elisabeth Airey 33,600 346 33,946 32,000 – 32,000
Lucy Taylor-Smith 33,600 778 34,378 32,000 – 32,000
Hatem Dowidar
3
33,600 3,901 37,501 20,690 4,262 24,952
Audley Twiston-Davies
4
– – – 15,430 – 15,430
Sarmad Zok
5
– – – 11,222 – 11,222
Total 185,600 5,547 191,147 187,884 4,262 192,146
1
Taxable benefits relate to travel and subsistence costs.
2
Appointed as Chair on 6 February 2024.
3
Appointed as a Director on 7 February 2024.
4
Retired as Chairman and a Director on 6 February 2024.
5
Retired as a Director on 6 February 2024.
There were no discretionary payments made during the year.
Directors’ remuneration report
Section 3: Governance 65
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The information in the table on the previous page has been audited. The amounts paid by the Company to the Directors were
for services as non-executive Directors. The Directors receive no variable remuneration.
At 30 September 2025, fees of US$20,000 (£15,000) (2024: US$20,000 (£15,000)) were outstanding to Directors in respect of
their annual fees.
Relative importance of spend on pay
As the Company has no employees, the table above also comprises the total remuneration costs and benefits paid by the
Company. To enable shareholders to assess the relative importance of spend on pay, this has been shown in the table below
compared to the Company’s net profit after taxation, total operating expenditure and dividend distributions.
2025 2024 Change
£191,147 £192,146 -£999
Directors’ total remuneration (US$257,000) (US$258,000) (-US$1,000)
Total dividends paid and payable US$18,928,000 US$17,984,000 +US$944,000
Net revenue profit after tax US$19,205,000 US$18,884,000 +US$321,000
No payments were made in the period to any past Directors (2024: £nil).
Annual percentage change in Directors’ remuneration
The table below sets out the annual percentage change in fees for each Director who served during the year ended
30September 2025.
30 September
2025
30 September
2024
30 September
2023
30 September
2022
30 September
2021
Katrina Hart
1
16.1% 30.5% 5.2% 3.6% 0.0%
Stephen White 5.0% 5.0% 6.1% 3.1% 0.0%
Elisabeth Airey
2
5.0% 4.9% 30.2% n/a n/a
Lucy Taylor-Smith
3
5.0% 4.9% 30.2% n/a n/a
Hatem Dowidar
4
62.4% n/a n/a n/a n/a
1
Appointed as Chair on 6 February 2024.
2
Appointed as a Director on 10 December 2021.
3
Appointed as a Director on 10 December 2021.
4
Appointed as a Director on 7 February 2024.
As previously noted, the Company does not have any employees and hence no disclosures are given in respect of the
comparison between Directors’ and employees’ pay increases.
Shareholdings
The interests of the Directors in the ordinary shares of the Company as at 30 September 2025 are set out in the table on the
following page. The Company does not have a share option scheme, therefore none of the Directors has an interest in any
share options in the Company. There is no requirement for Directors to hold shares in the Company.
66 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
As at
8 December
2025
As at
30 September
2025
As at
30 September
2024
Katrina Hart (Chair) 49,110
1
49,110
1
48,560
2
Stephen White 30,000 30,000 30,000
Elisabeth Airey 100,000 75,000 75,000
Lucy Taylor-Smith 30,852
3
30,852
3
10,122
Hatem Dowidar 40,000 40,000 nil
Christopher Casey
4
nil nil n/a
1
12,096 ordinary shares are held on behalf of Katrina Hart’s dependents.
2
11,546 ordinary shares are held on behalf of Katrina Hart’s dependents.
3
20,730 ordinary shares are held on behalf of Lucy Taylor-Smith’s dependents.
4
Appointed with effect from 1 October 2025.
The information in the above table has been audited.
All of the holdings of the Directors are beneficial.
Retirement of directors
Further details are given in the Directors’ Report on page 52.
Performance
The graph below compares the Company’s NAV and share price total returns with the total return on an equivalent investment
in the Benchmark Index. This Index is deemed to be the most appropriate as the Company has a frontier markets objective.
Performance since inception on 17 December 2010 to 30 September 2025
1
With effect from 1 April 2018, the Benchmark Index changed to a composite of the MSCI Frontier + Emerging ex Selected Countries
Index. Prior to 1 April 2018, the Benchmark Index was the MSCI Frontier Markets Index. The performance of the Benchmark Index
during the period from 1 April 2018 to 30 September 2025 has been blended to reflect this change. Benchmark return index
calculate the reinvestment of dividends net of withholding taxes.
Sources: BlackRock and LSEG Datastream.
All performance figures calculated on a US Dollar basis with dividends reinvested, rebased to 100 at 17 December 2010.
For and on behalf of the Board
KATRINA HART
Chair
10 December 2025
NAV performance
Share price performance
MSCI Frontier Markets Index
1
MSCI Emerging Markets Index
1
Dec 2010
Sep 2011
Sep 2012
Sep 2013
Sep 2014
Sep 2015
70
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
280
Sep 2017
Sep 2018
Sep 2019
Sep 2020
Benchmark Index
1
Sep 2022
%
Sep 2023
Sep 2016
Sep 2021
Sep 2025
Sep 2024
Directors’ remuneration report
continued
Section 3: Governance 67
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Directors’ remuneration policy
In setting the appropriate level of Directors’ fees, a number of factors are considered, including the workload of the Directors,
their responsibilities, any change in these responsibilities and additional legal duties (for example as a result of new legislation
being implemented), the relationship with their suppliers and the size and complexity of the Company. The level of skills and
appropriate experience required and the need for Directors to maintain an appropriate level of knowledge of regulatory and
compliance requirements in an industry of increasing complexity are also taken into account.
The Board also considers the average rate of inflation during the period since the last fee increase and reviews the level
of remuneration in comparison with other investment trusts of a similar size and/or mandate, as well as taking account of
any data published by the Association of Investment Companies to ensure that fees are in line with industry practice. This
comparison, together with consideration of any alteration in non-executive Directors’ responsibilities, is used to review
whether any change in remuneration is necessary. The review is performed on an annual basis. The Board is cognisant of the
need to avoid any potential conflicts of interest and has therefore agreed a mechanism by which no Director is involved when
his or her own pay is being considered.
The Company has no employees and consequently no consideration is required to be given to employment conditions
elsewhere in setting this policy and there has been no employee consultation.
No element of the Directors’ remuneration is performance related or subject to recovery or withholding (except for tax).
Directors cannot be awarded any share options or long-term performance incentives. None of the Directors has a service
contract with the Company or receives any non-cash benefits (except as described in the policy table), pension entitlements or
compensation for loss of office.
Any discretionary fees paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by an
explanation of the work undertaken.
The remuneration policy is applied when agreeing the remuneration package of any new Director. The terms of Directors’
appointment are detailed in a letter sent to them when they join the Board. These letters are available for inspection at the
registered office of the Company.
Directors’ appointments do not have a fixed duration, but they can be terminated by the Company in writing at any time
without obligation to pay compensation. On termination of the appointment, Directors shall only be entitled to accrued fees as
at the date of termination together with reimbursement of any expenses properly incurred prior to that date. No payments for
loss of office are made. Directors are also subject to re-election at least every three years and, if not elected, their appointment
ceases immediately. However, in accordance with the UK Corporate Governance Code the Board has agreed that all Directors
will, being eligible, stand for re-election annually.
Any discretionary fees paid to the Directors will be clearly disclosed in the Directors’ Remuneration Report accompanied by
an explanation of the work undertaken. No discretionary fees have been paid to Directors since the Company’s inception and
none are envisaged in future reporting periods.
Consideration of shareholders’ views
In accordance with applicable law and regulation, an ordinary resolution to approve the remuneration report is put to
shareholders at each AGM, and shareholders have the opportunity to express their views and raise any queries in respect of
remuneration policy at this meeting. To date, no shareholders have commented in respect of the Company’s Remuneration
Policy. The Company obtained shareholder approval for its remuneration policy at the AGM in 2023. In accordance with the
Companies Act 2006, the remuneration policy is subject to a triennial binding shareholder vote at the forthcoming AGM in
2026. At the Company’s AGM held on 7 February 2023, 99.81% (including votes cast at the Chair’s discretion) were in favour
of the resolution to approve the Directors’ Remuneration Policy and 0.19% of votes cast were against.
At the Company’s AGM held on 5 February 2025, 99.59% of votes cast were in favour of the resolution to approve the
Directors’ Remuneration Report and 0.41% of votes cast were against.
Directors’ remuneration policy
68 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Policy table
Purpose and link to
strategy
Fees payable to Directors should be sufficient to attract and retain individuals of high calibre
who possess knowledge and experience suitably aligned to the activities of the Company. Those
chairing the Board and key committees should be paid higher fees than other Directors in
recognition of their more demanding roles. Fees should reflect the time spent by Directors on
the Company’s affairs and the responsibilities borne by the Directors.
Description
Current levels of fixed annual fee with effect from 1 October 2025:
Chair – £48,510
Audit and Management Engagement Committee Chairman – £40,530
Directors – £35,280
All reasonable expenses to be reimbursed.
Maximum and
minimum levels
Remuneration consists of a fixed fee each year, set in accordance with the stated policies and
any increase granted must be in line with the stated policies.
The Company’s Articles of Association provide that the Directors are paid fees for their services
not exceeding in the aggregate an annual sum of £250,000 or such larger amount as the
Company may by Ordinary Resolution decide divided between the Directors as they agree.
In addition, the Directors propose a limit of £50,000 in relation to the maximum that may be paid
in respect of taxable benefits.
Policy on share
ownership
Directors are not required to own shares in the Company, although all Directors who served
during the financial year are currently shareholders.
Fixed fee element
The Board reviews the quantum of Directors’ pay each year to ensure this is in line with the level
of Directors’ remuneration for other investment trusts of a similar size and complexity. When
making recommendations for any changes in pay, the Board considers wider factors such as the
average rate of inflation over the period since the previous review, and the level and any change
in complexity of the Directors’ responsibilities (including additional time commitments as a
result of increased regulatory or corporate governance requirements). Directors are not eligible
to be compensated for loss of office, nor are they eligible for bonuses, pension benefits, share
options or other incentives or benefits. Directors do not have service contracts but are appointed
under letters of appointment.
Discretionary
Payments
The Company’s Articles authorise the payment of discretionary fees to Directors for any
additional work undertaken on behalf of the Company which is outside of their normal duties.
Any such extra work undertaken is subject to the prior approval of the Chair or, in the case of
the Chair undertaking the extra work, subject to the prior approval of the Chairman of the Audit
and Management Engagement Committee. The level of discretionary fees shall be determined
by the Directors. Any discretionary fees paid will be disclosed in the Director’s remuneration
implementation report within the Annual Report. The payment of such fees would only be
considered in exceptional circumstances and any discretionary fees paid will be clearly
disclosed. No discretionary payment has ever been made by the Company to its Directors.
Taxable benefits
Taxable benefits comprise expenses incurred by the Directors in the course of travel to attend
Board and Committee meetings which are held at the Company’s registered offices in London,
and which are reimbursed by the Company and therefore treated as a benefit in kind and
are subject to tax and national insurance. The Company’s policy in respect of this element of
remuneration is that all reasonable costs of this nature will be reimbursed as they are incurred.
Directors’ remuneration policy
continued
Section 3: Governance 69
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
As Chairman of the Audit and Management Engagement Committee I am pleased to present the Committee’s report to
shareholders for the year ended 30 September 2025.
Role and responsibilities
The Company has established a separately chaired Audit and Management Engagement Committee (“the Committee”).
The Committee meets at least twice a year, prior to the Board meetings to approve the half yearly and annual results. The
Committee does not consider that as an investment trust company it is necessary to hold an additional meeting during the
year, although this is kept under review.
The Committee’s principal duties are set out below and include considering, and recommending to the Board for approval,
the contents of the half yearly and annual financial statements and providing an opinion as to whether the Annual Report,
taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the
Company’s performance and position, business model and strategy. It is also responsible for assessing the adequacy of the
Company’s internal financial controls, systems of internal control and risk management and receives regular reports from the
Manager’s corporate audit and compliance departments and from other key third party service providers during the year. The
Committee also has primary responsibility for managing the relationship with the external Auditor, including the assessment
of the external Auditor’s ongoing independence and objectivity.
All of the Directors are members of the Committee and their biographies can be found on pages 31 to 33. The Board considers
that at least one member of the Committee has recent and relevant financial experience and has specific competence in
accounting and/or auditing. The Committee as a whole has competence relevant to the sector in which the Company operates.
As permitted by the AIC Code of Corporate Governance, the Chairman of the Company is a member of the Committee to enable
her to be kept fully informed of any issues which may arise.
The Committee operates within written terms of reference detailing its scope and duties and these are available on the
Company’s website at www.blackrock.com/uk/brfi. In accordance with these duties, the principal activities of the Committee
during the year are set out below.
Internal controls, financial reporting and risk management systems
• monitoring and assessing the adequacy and effectiveness of the Company’s internal financial controls and the internal
control and risk management systems;
• seeking reasonable assurance that such systems meet relevant legal and regulatory requirements;
• monitoring the integrity of the financial statements;
• reviewing the consistency of, and any changes to, accounting policies;
• reviewing the Half Yearly and Annual Report and Financial Statements to ensure that the Company’s results and financial
position are represented accurately and fairly to shareholders;
• evaluating the need for an internal audit function;
• reviewing semi-annual reports from the Manager on its activities as AIFM;
• reviewing semi-annual reports from the Depositary on its activities; and
• reviewing arrangements by which staff of the Manager may, in confidence, raise concerns about possible improprieties in
matters of financial reporting or other matters.
Narrative reporting
• reviewing the content of the Annual Report and Financial Statements and, where requested by the Board, providing an
opinion on whether, taken as a whole, they are fair, balanced and understandable and provide the information necessary for
shareholders to assess the Company’s position and performance, business model and strategy.
Report of the audit and management
engagement committee
70 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Report of the audit and management
engagement committee continued
Management engagement
• reviewing the performance of the Manager during the year, both on an absolute and relative basis;
• reviewing all services provided to the Company by the Manager;
• reviewing the investment management agreement to ensure the terms are appropriate and remain competitive;
• satisfying itself that the continuing appointment of the Manager is in the interests of shareholders as a whole; and
• considering the appropriateness of the remuneration of the Manager.
Third party service providers
• considering the appointment of other third party service providers; and
• ensuring that third party service providers comply with the terms of their agreements and that the provisions of such
agreements remain both appropriate and competitive.
Reporting responsibilities
• reporting to the Board on its proceedings and how it has discharged its responsibilities, making whatever recommendations
it deems appropriate on any area within its remit; and
• compiling a report on its activities to be included in the Annual Report and Financial Statements.
Internal audit
• considering the need for an internal audit function, as set out in the Corporate Governance Statement on page 61.
Due to the nature of the Company, being an externally managed investment company with no employees, and in view of
BlackRock having an internal audit function which reports to the Audit and Management Engagement Committee, the
Company does not have its own internal audit function.
External audit
The Committee has primary responsibility for assessing the effectiveness of the external audit process and for making
recommendations to the Board on the appointment, reappointment or removal of the external Auditor. It considers the planning,
scope, quality of performance, cost effectiveness and independence of the external Auditor. The Committee reviews and approves
the external audit plan in advance of the audit and throughout the year and ensures that any non-audit services proposed to
be performed by the external Auditor are in accordance with the Company’s policy on the provision of non-audit services. The
Company’s non-audit services policy is set out in full in the Committee’s terms of reference which are available at the Company’s
website at: www.blackrock.com/uk/brfi. The external audit plan includes an analysis of the key audit risks and calculations of
audit materiality, which the Committee considers in forming its assessment of key risks to the Company’s financial statements.
The Committee considers the quality of the audit plan, subsequent execution and composition of the audit team in formulating
its recommendation to the Board regarding the reappointment of the external Auditor. Length of tenure and independence
(with due regard to the level of non-audit services) are considerations underpinning this assessment, which is carried out within
the framework laid down by The Statutory Auditors and Third Country Auditors (amendment) (EU Exit) Regulations 2019 (as
amended) on Auditor rotation that is supplemented by application guidance from the UK’s Financial Reporting Council.
Further information on the external audit is reported under ‘Assessment of the effectiveness of the external audit process’ on
pages 73 and 74. The fees paid to the external Auditor are set out in note 5 on page 97.
Whistleblowing policy
The Committee has also reviewed and accepted the “whistleblowing” policy that has been put in place by BlackRock under
which its staff, in confidence, can raise concerns about possible improprieties in matters of financial reporting or other
matters, in so far as they affect the Company.
United Kingdom Single Electronic Format regulatory technical standard (UKSEF)
We paid special attention to the preparation of our financial statements in digital form under the UKSEF taxonomy and
regulatory technical standard. As this was the first report in this format, we made sure the necessary procedures had been
completed by all parties, including the technical accounting team of the Manager, our fund accountants, The Bank of New York
Mellon and a specialist information technology provider.
Section 3: Governance 71
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Report of the audit and management
engagement committee continued
Significant issues considered regarding the Annual Report and Financial Statements
During the year, the Committee considered a number of significant issues and areas of key audit risk in respect of the Annual
Report and Financial Statements. The Committee reviewed the external audit plan at an early stage and concluded that
the appropriate areas of audit risk relevant to the Company had been identified in the audit plan and that suitable audit
procedures had been put in place to obtain reasonable assurance that the financial statements as a whole would be free of
material misstatements. The following table sets out the key areas of risk identified by the Committee and also explains how
these were addressed by the Committee.
Significant issue
The accuracy of the valuation of the investment portfolio.
How the issue was addressed
Listed investments are valued using stock exchange prices by third party vendors. Long and short CFD positions are valued by
reference to the stock exchange prices of securities underlying the respective securities and the notional transaction prices.
Unquoted or illiquid investments, if any, are valued by the Directors based on recommendations from BlackRock’s Pricing
Committee. The Board reviews detailed portfolio valuations on a regular basis throughout the year and receives confirmation
from BlackRock that the pricing basis is appropriate, in line with relevant accounting standards as adopted by the Company,
and that the carrying values are materially correct. The Board also relies on BlackRock’s and the Fund Accountant’s (BNY)
controls which are documented in semi-annual internal control reports and reviewed by the Committee.
Significant issue
The risk of misappropriation of assets and unsecured ownership of investments.
How the issue was addressed
The Depositary is responsible for financial restitution for loss of financial investments held in custody. The Depositary reports
to the Audit and Management Engagement Committee on a twice-yearly basis and is also available to attend the Company’s
AGM.
The Committee reviews reports from its service providers on key controls over the assets of the Company. Any significant
issues are reported by the Manager to the Committee. The Manager has put in place procedures to ensure that investments
can only be made to the extent that the appropriate contractual and legal arrangements are in place to protect the Company’s
assets. BlackRock’s New Market Opening Committee reports regularly to the Board on the status of opening of new markets
and any potential risks and exposures that might arise as a result.
Significant issue
The accuracy of the calculation of management and performance fees.
How the issue was addressed
The Manager reports to the Board on the calculation of any performance fee accruals that have been included in the
Company’s NAV on a regular basis. The management fee and any performance fee are calculated in accordance with the
contractual terms in the investment management agreement by the administrator and are reviewed in detail by the Manager
and are also subject to an analytical review by the Board. During the year, the Directors performed a detailed review of the
calculation of the performance fee mechanism. There are review processes performed by BNY and the Manager on the
calculation of the management fee and any performance fee to ensure that they are correctly calculated. The auditors also
audit the calculation of the management fee and any performance fee as part of their annual audit of the Company’s financial
statements.
72 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Report of the audit and management
engagement committee continued
Significant issue
The risk that income is overstated, incomplete or inaccurate through failure to recognise proper income entitlements or to
apply the appropriate accounting treatment for recognition of income.
How the issue was addressed
The Committee reviews income forecasts and receives explanations from the Investment Manager for any variations
or significant movements from previous forecasts and prior year figures. The Committee also reviews the facts and
circumstances of all special dividends to determine the revenue/capital treatment. There are review processes performed by
BNY and the Manager on the completeness and accuracy of income, and also that this has been recognised in accordance
with stated accounting policies.
Significant issue
The risk that the global economic disruption caused by the war in Ukraine and the hostilities in the Middle East will affect the
Company’s ability to continue in operation due to the impact on market valuations of portfolio companies or the ability of
key service providers (including the Manager, the Depositary, the Custodian, the Fund Accountant and Brokers) to maintain
business continuity and continue to provide appropriate service levels.
How the issue was addressed
The Committee has considered the impact of market volatility related to the war in Ukraine and the more recent hostilities in
the Middle East on the Company’s portfolio and received regular reports from the Investment Manager. The Committee has
also reviewed portfolio liquidity and updated revenue and expense forecasts in light of the Ukraine conflict and their impact on
portfolio liquidity, income and market valuations and considers that the Company’s business model remains viable and that
the Company has sufficient resources to continue in operation and to meet all liabilities as they fall due.
The Committee keeps the Company’s principal risks and uncertainties under review and is confident that the Company has
appropriate controls and processes in place to manage these risks and to maintain its operating model. The Committee has
also received updates from key service providers in respect of their business continuity plans and is confident that they will be
able to continue to provide a good level of service for the foreseeable future.
Third party service providers
The provision of portfolio valuation, fund accounting and administration services is delegated to BIM (UK), which sub-
delegates fund accounting to a third party service provider, BNY. The Committee has also reviewed the Service Organisation
Control (SOC 1) reports prepared by BlackRock, the Custodian and the Fund Accountant to ensure that the relevant control
procedures are in place to cover these areas of risk as identified above and are adequate and appropriate and have been
designated as operating effectively by the reporting Auditor.
Auditor and audit tenure
The Company’s Auditor, Ernst & Young LLP, was appointed on the launch of the Company in 2010. The Committee has
considered the risks associated with audit firms withdrawing from the market and the relationship with the Company’s Auditor.
The appointment of the Auditor is reviewed each year and the audit partner rotates at least every five years. Mr Price has been the
Company’s audit partner since 2021.
The Company carried out a formal tender process in 2020 in respect of the year ended 30 September 2021. Following this and
on the recommendation of the Company’s audit committee, the Board unanimously decided to re-appoint Ernst & Young LLP as
Auditors on the evaluation of each of the firms interviewed, taking into account a broad range of evaluation criteria.
The Committee is satisfied that the Company has complied with the provisions of the Statutory Audit Services for Large
Companies Market Investigation (Mandatory Use of Competitive Processes and Audit Committee Responsibilities) Order
2014, published by the Competition and Markets Authority on 26 September 2014. In recognition of underlying audit rotation
requirements, the Committee currently intends that a further tender process will be undertaken during the year to 30 September
2029 to cover the financial year ending 30 September 2030 onwards. The Committee will continue to review the Auditor’s
appointment each year to ensure that the Company is receiving an optimal level of service.
Section 3: Governance 73
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The legislation also prohibits certain non-audit and audit related services, consulting services and caps the amount of additional
fees auditors can charge their clients. There are no contractual obligations that restrict the Company’s choice of Auditor. For the
year ended 30 September 2025, the ratio of non-audit fees to audit fees was 0.12:1 (2024: 0.14:1). The fees paid to the Auditor in
respect of other assurance services relating to the review of the Half Yearly Report amounted to £7,000 (US$9,000) (2024: £7,100
(US$10,000)). The value is considered to be immaterial and was not such that it might threaten the Auditor’s independence. No
other non-audit or audit related services were provided to the Company by the Auditor during the year. Further details can be
found in note 5 to the financial statements on page 97.
The Auditor has indicated its willingness to continue in office and the Audit and Management Engagement Committee has
recommended to the Board that it be reappointed. Resolutions proposing its reappointment and authorising the Audit and
Management Engagement Committee to determine its remuneration for the ensuing year will be proposed at the forthcoming
AGM.
Assessment of the effectiveness of the external audit process
To assess the effectiveness of the external audit, members of the Committee work closely with BlackRock to obtain a good
understanding of the progress and efficiency of the audit. The Committee has adopted a formal framework in its review of the
effectiveness of the external audit process and audit quality. This includes a review of the following areas:
• the quality of the audit engagement partner and the audit team;
• the expertise of the audit firm and the resources available to it;
• identification of areas of audit risk;
• planning, scope and execution of the audit;
• consideration of the appropriateness of the level of audit materiality adopted;
• the role of the Committee, the Manager, the Investment Manager and third party service providers in an effective audit
process;
• communications by the Auditor with the Committee;
• how the Auditor supports the work of the Committee and how the audit contributes added value;
• monitor and review the supply of non-audit services, taking into account relevant ethical guidance regarding the provision
of non-audit services by the external audit firm;
• a review of the independence and objectivity of the audit firm; and
• an assessment of the quality of the formal audit report to shareholders.
Feedback in relation to the audit process and the effectiveness of the Manager in performing its role is also sought from
relevant involved parties, notably the audit partner and team. The Auditor attends the Committee meetings on at least one
occasion at which they have the opportunity to meet with the Committee without representatives of the Manager being
present. The effectiveness of the Board and the Manager in the external audit process is assessed principally in relation
to the timely identification and resolution of any process errors or control breaches that might impact the Company’s net
asset values and accounting records. It is also assessed by reference to how successfully any issues in respect of areas of
accounting judgement are identified and resolved, the quality and timeliness of papers analysing these judgements, the Board
and the Manager’s approach to the value of independent audit and the booking of any audit adjustments arising, and the
timely provision of draft public documents for review by the Auditor and the Committee.
To form a conclusion with regard to the independence of the Auditor, the Committee considers whether the skills and
experience of the Auditor make them a suitable supplier of non-audit services and whether there are safeguards in place to
ensure that there is no threat to their objectivity and independence in the conduct of the audit resulting from the provision of
any such services.
74 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
On a semi-annual basis, Ernst & Young LLP reports the independence of its relationship with the Company and reports to
the Committee, providing details of any other relationship with BlackRock. As part of this review, the Committee also receives
information about policies and processes for maintaining independence and monitoring compliance with relevant requirements
from the Company’s Auditor, including information on the rotation of audit partners and staff, the level of fees that the Company
pays in proportion to the overall fee income of the firm, and the level of related fees, details of any relationships between the audit
firm and its staff and the Company as well as an overall confirmation from the Auditor of its independence and objectivity.
As a result of their review, the Committee has concluded that Ernst & Young LLP is independent of the Company and therefore
it has made a recommendation to the Board that it be reappointed.
Conclusions in respect of the Annual Report and Financial Statements
The production and the audit of the Company’s Annual Report and Financial Statements is a comprehensive process requiring
input from a number of different contributors. In order to reach a conclusion that the Annual Report and Financial Statements
are fair, balanced and understandable, the Board has requested that the Committee advise on whether these criteria are
satisfied. In so doing, the Committee has given consideration to the following:
• the comprehensive control framework over the production of the Annual Report and Financial Statements, including the
verification processes in place to deal with the factual content;
• the extensive levels of review that are undertaken in the production process of the Annual Report and Financial Statements
by BlackRock, the Depositary and the Committee, applying its knowledge and expertise of the investment industry and
frontier markets sector;
• the controls that are in place at BlackRock and third party service providers to ensure the completeness and accuracy of the
Company’s financial records and the security of the Company’s assets; and
• the existence of satisfactory Service Organisation Control Reports that have been reviewed and reported on by the external
Auditor to verify the effectiveness of the internal controls of BlackRock, Depositary, Custodian and Fund Accountant.
In addition to the work outlined above, the Committee has reviewed the Annual Report and Financial Statements and is
satisfied that, taken as a whole, they are fair, balanced and understandable and provide shareholders with the information
necessary to assess the Company’s position and performance, business model and strategy. In reaching this conclusion, the
Committee has assumed that the reader of the Annual Report and Financial Statements would have a reasonable level of
knowledge of the investment companies sector.
The Committee has reported on these findings to the Board who affirm the Committee’s conclusions in the Statement of
Directors’ Responsibilities in respect of the Annual Report and Financial Statements on pages 75 and 76.
STEPHEN WHITE
Chairman of the Audit and Management Engagement Committee
10 December 2025
Report of the audit and management
engagement committee continued
Section 3: Governance 75
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the financial
statements in accordance with applicable United Kingdom law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors are
required to prepare the financial statements in accordance with UK-adopted International Accounting Standards (IAS). Under
Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair
view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
• present fairly the financial position, financial performance and cash flows of the Company;
• select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors and then apply them consistently;
• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;
• make judgements and estimates that are reasonable and prudent;
• state whether the financial statements have been prepared in accordance with IAS, subject to any material departures
disclosed and explained in the financial statements;
• provide additional disclosures when compliance with the specific requirements in IAS is insufficient to enable users to
understand the impact of particular transactions, other events and conditions on the Company’s financial position and
financial performance; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to
ensure that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities. The Directors are also responsible for preparing the Strategic
Report, the Directors’ Report, the Directors’ Remuneration Report, Corporate Governance Statement and the Report of the
Audit and Management Engagement Committee in accordance with the Companies Act 2006 and applicable regulations,
including the requirements of the Listing Rules and the Disclosure Guidance and Transparency Rules. The Directors have
delegated responsibility to the Investment Manager and the AIFM for the maintenance and integrity of the Company’s
corporate and financial information included on BlackRock’s website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Each of the Directors, who were appointed as at the date of the Annual Report, confirms to the best of their knowledge that:
• the financial statements, which have been prepared in accordance with IAS, give a true and fair view of the assets, liabilities,
financial position and profit of the Company; and
• the Strategic Report contained in the Annual Report and Financial Statements includes a fair review of the development
and performance of the business and the position of the Company, together with a description of the principal risks and
uncertainties that it faces.
Statement of Directors’ responsibilities
in respect of the Annual Report and
Financial Statements
76 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The 2018 UK Corporate Governance Code also requires Directors to ensure that the Annual Report and Financial Statements
are fair, balanced and understandable. In order to reach a conclusion on this matter, the Board has requested that the Audit
and Management Engagement Committee advise on whether it considers that the Annual Report and Financial Statements
fulfil these requirements. The process by which the Committee has reached these conclusions is set out in the Audit and
Management Engagement Committee’s report on pages 69 to 74 of this Annual Report. As a result, the Board has concluded
that the Annual Report and Financial Statements for the year ended 30 September 2025, taken as a whole, is fair, balanced
and understandable and provides the information necessary for shareholders to assess the Company’s position and
performance, business model and strategy.
For and on behalf of the Board
KATRINA HART
Chair
10 December 2025
Statement of Directors’ responsibilities
in respect of the Annual Report and
Financial Statements continued
Section 3: Governance 77
Job No: 101568 Proof Event: 24 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 4: Financial statements 79
Financial
statements
Job No: 53118 Proof Event: 6 Black Line Level: 1 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2024 T: 0207 055 6500 F: 020 7055 6600
Our trip to Saudi Arabia highlighted the increasing centralisation
of economic activity in Riyadh.
80 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Opinion
We have audited the financial statements of BlackRock
Frontiers Investment Trust plc (“the Company”) for the year
ended 30 September 2025 which comprise Statement of
Comprehensive Income, the Statement of Changes in Equity,
the Statement of Financial Position, the Cash Flow Statement
and the related notes 1 to 20, including material accounting
policy information. The financial reporting framework that
has been applied in their preparation is applicable law and
UK-adopted International Accounting Standards.
In our opinion, the financial statements:
• give a true and fair view of the Company’s affairs as at 30
September 2025 and of its profit for the year then ended;
• have been properly prepared in accordance with UK
adopted international accounting standards; and
• have been prepared in accordance with the requirements
of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the company in accordance with the
ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements.
The non-audit services prohibited by the FRC’s Ethical
Standard were not provided to the Company and we remain
independent of the Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the Company’s
ability to continue to adopt the going concern basis of
accounting included:
• Confirmation of our understanding of the Company’s
going concern assessment process and engagement with
the Directors and the Company Secretary to determine if
all key factors were considered in their assessment.
• Inspection of the Directors’ assessment of going concern,
including the revenue forecast, for the period to 30
September 2027. In preparing the revenue forecast, the
Company has concluded that it is able to continue to meet
its liabilities as they fall due.
• Review of the factors and assumptions, including the
impact of the current economic environment, as applied
to the revenue forecast and the liquidity assessment of the
investments. We considered the appropriateness of the
methods used to be able to make an assessment of the
Company.
• Consideration of the mitigating factors included in the
revenue forecasts that are within control of the Company.
We reviewed the Company’s assessment of the liquidity
of investments held and evaluated the Company’s
ability to sell those investments to cover working capital
requirements should revenue decline significantly.
• Review of the Company’s going concern disclosures
included in the Annual Report in order to assess that the
disclosures were appropriate and in conformity with the
reporting standards.
• Review of the factors and assumptions including
the tender offer, the impact of the current economic
environment, the revenue forecast and the liquidity
assessment of the investments. We considered the
appropriateness of the methods used to be able to make an
assessment of the Company.
• Consideration of the mitigating factors and assumptions
including the tender offer and the revenue forecasts
that are within control of the Company. We reviewed the
Company’s assessment of the liquidity of investments
held and evaluated the Company’s ability to sell those
investments to cover working capital requirements.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt
on the Company’s ability to continue as a going concern for a
period to 30 September 2027, which is at least twelve months
from the date the financial statements were authorised for
issue.
In relation to the Company’s reporting on how they have
applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to
the directors’ statement in the financial statements about
whether the directors considered it appropriate to adopt the
going concern basis of accounting.
Our responsibilities and the responsibilities of the directors
with respect to going concern are described in the relevant
sections of this report. However, because not all future
events or conditions can be predicted, this statement is not a
guarantee as to the Company’s ability to continue as a going
concern.
Independent Auditor’s report
to the members of BlackRock Frontiers Investment Trust plc
Section 4: Financial statements 81
Job No: 101568 Proof Event: 26 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Overview of our audit approach
Key audit
matters
• Risk of incomplete or inaccurate revenue
recognition.
• Risk of incorrect calculation of the
performance fee
• Risk of incorrect valuation or ownership of
the investment portfolio and derivatives.
Materiality • Overall materiality of $4.46m (2024:
$4.06m) which represents 1% (2024: 1%)
of the Company’s shareholders’ funds.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality
and our allocation of performance materiality determine
our audit scope for the Company. This enables us to form an
opinion on the financial statements. We take into account
size, risk profile, the organisation of the company and
effectiveness of controls, the potential impact of climate
change and changes in the business environment when
assessing the level of work to be performed. All audit work
was performed directly by the audit engagement team.
Climate change
Stakeholders are increasingly interested as to how climate
change will impact companies. The Company has determined
that the impact of climate change could affect the
Company’s portfolio. This is explained in the principal and
emerging risks section on (pages 38 to 42), which forms part
of the “Other information,” rather than the audited Financial
Statements. Our procedures on these disclosures therefore
consisted solely of considering whether they are materially
inconsistent with the Financial Statements or our knowledge
obtained in the course of the audit or otherwise appear to be
materially misstated.
Our audit effort in considering climate change was focused
on the adequacy of the Company’s disclosures in the
Financial Statements as set out in note 2(a) and conclusion
that there was no further impact of climate change to be
taken into account as the investments are valued based
on market pricing as required by UK adopted International
Accounting Standards. In line with UK adopted International
Accounting Standards, investments are valued at fair value,
which for the Company are quoted bid prices for investments
in active markets. All investments therefore reflect the market
participants’ view of climate change risk on the investments
held by the Company. We also challenged the Directors’
considerations of climate change in their assessment of
viability and associated disclosures.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not
due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in
the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate
opinion on these matters.
Risk Our response to the risk
Key observations communicated to the
Audit Committee
Incomplete or inaccurate revenue
recognition (as described on page 72
in the Audit Committee Report and as
per the accounting policy set out on
page 92).
The total revenue for the year to
30 September 2025 was $20.00m
(2024: $20.66m), consisting primarily
of dividend income from listed equity
investments.
We obtained an understanding
of the Administrator’s processes
and controls surrounding revenue
recognition by performing
walkthrough procedures.
For 100% of dividends received
and accrued, we recalculated the
income by multiplying the investment
holdings at the ex-dividend date,
traced from accounting records, by
the dividend per share, which was
agreed to an independent data vendor.
We also agreed all exchange rates
to an independent data vendor and
agreed a sample of dividend receipts
to bank statements.
The results of our procedures identified
no material misstatement in relation
to incomplete or inaccurate revenue
recognition.
82 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Independent Auditor’s report
continued
Risk Our response to the risk
Key observations communicated to the
Audit Committee
Additionally, in accordance with the AIC
SORP, special dividends received by
the Company can be included in either
the revenue or capital columns of the
Income Statement depending on the
commercial circumstances behind the
payments.
There is a risk of incomplete or
inaccurate recognition of revenue
through the failure to recognise proper
income entitlements or to apply an
appropriate accounting treatment.
For 100% of dividends accrued,
we reviewed the investee company
announcements to assess whether the
dividend entitlements arose prior to 30
September 2025.
To test completeness of recorded
income, we verified that expected
dividends for each investee company
held during the year had been recorded
as income with reference to investee
company announcements obtained
from an independent data vendor.
For all investments held during the
year, we reviewed the type of dividends
paid with reference to an external data
vendor to identify those which were
special. We did not identify any special
dividends above our testing threshold.
We tested three dividends to assess
the appropriateness of management
classification by reviewing the
underlying rationale for the dividend.
Risk of incorrect calculation of the
performance fee
Refer to the Report of the Audit and
Management Engagement Committee
(page 71); Accounting policies (page
92); and Note 4 of the Financial
Statements (page 96).
The Company’s performance fee
for the year to 30 September 2025
amounted to $5.99m (2024: $3.5m).
The performance fee is calculated
using a methodology as set out in the
Investment Management Agreement
(“IMA”) between the Company and the
Manager. Incorrect calculation of this
fee could have a material impact on
the return generated for shareholders.
We performed the following
procedures:
We obtained an understanding of the
processes and controls surrounding
the calculation of the performance
fee by performing our walkthrough
procedures.
We agreed all key inputs used in the
calculation to the accounting records
or the IMA and benchmark data to
third party source information.
We agreed the calculation
methodology to the IMA,
recalculated the cumulative relative
outperformance of the NAV and
the performance fee payable as at
30 September 2025.
The results of our procedures identified
no material misstatement in relation to
the risk of incorrect calculation of the
performance fee.
Section 4: Financial statements 83
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Risk Our response to the risk
Key observations communicated to the
Audit Committee
Risk of incorrect valuation or
ownership of the investment portfolio
and derivatives
Refer to the Report of the Audit and
Management Engagement Committee
(page 71); Accounting policies (page 93);
and Notes 10 and 11 of the Financial
Statements (pages 100 and 101).
The valuation of the investment portfolio
as at 30 September 2025 was $454.15m
(2024: $412.31m). The derivative
financial assets and liabilities held at fair
value through profit or loss amounted to
$5.87m and $(1.51)m respectively (2024:
$2.76m and $(1.56)m respectively).
The valuation of the instruments held in
the investment portfolio is the key driver
of the Company’s net asset value and
total return. Inappropriate investment
pricing, including incorrect application
of exchange rates, or failure to maintain
proper legal title of the instruments held
by the Company could have a significant
impact on the portfolio valuation and,
therefore, the return generated for
shareholders.
The fair value of exchange listed
investments is determined using quoted
market bid prices at close of business
on the reporting date. The fair value of
derivative instruments is based on the
bid prices of the underlying securities
in respect of long CFD positions, and
the offer prices in respect of short CFD
positions.
We performed the following
procedures:
We obtained an understanding of the
processes surrounding investment
and derivative title and pricing
by performing our walkthrough
procedures.
For all listed investments and
derivatives in the portfolio, we
compared the market prices and
exchange rates applied to an
independent pricing vendor and
recalculated the investment and
derivative valuations as at the year end.
We inspected the stale pricing reports
produced by the Administrator to
identify prices that have not changed
and verified whether the listed price is a
valid fair value.
We assessed the liquidity of the
investment portfolio through analysing
the monthly average trading volume of
the investments. We also reviewed the
stale pricing report to identify prices
that have not changed and tested
whether the quoted price is a valid fair
value.
We compared the Company’s
investment holdings at 30 September
2025 to independent confirmations
received directly from the Company’s
Custodian and Depositary, testing
any reconciling items to supporting
documentation. We agreed all year-end
open CFD positions to confirmations
received independently from the
Company’s brokers.
The results of our procedures identified no
material misstatement in relation to the
risk of incorrect valuation or ownership of
the investment portfolio and derivatives.
Our application of materiality
We apply the concept of materiality in planning and
performing the audit, in evaluating the effect of identified
misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that,
individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users
of the financial statements. Materiality provides a basis for
determining the nature and extent of our audit procedures.
We determined materiality for the Company to be $4.46m
(2024: $4.06m), which is 1% (2024: 1%) of the Company’s
shareholders’ funds. We believe that shareholders’ funds
provide us with a basis of materiality aligned to the key
measure of the Company’s performance.
Performance materiality
The application of materiality at the individual account
or balance level. It is set at an amount to reduce to an
appropriately low level the probability that the aggregate
of uncorrected and undetected misstatements exceeds
materiality.
On the basis of our risk assessments, together with our
assessment of the Company’s overall control environment,
our judgement was that performance materiality was 75%
(2024: 75%) of our planning materiality, namely $3.35m
(2024: $3.05m). We have set performance materiality at
this percentage due to our past experience of the audit that
indicates a lower risk of misstatements, both corrected and
uncorrected.
84 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Independent Auditor’s report
continued
Given the importance of the distinction between revenue and
capital for investment trusts, we have also applied a separate
testing threshold for the revenue column of the Statement of
Comprehensive Income of £1.10m (2024: £1.06m) being 5%
(2024: 5%) of the revenue profit before taxation.
Reporting threshold
An amount below which identified misstatements are
considered as being clearly trivial.
We agreed with the Audit Committee that we would report to
them all uncorrected audit differences in excess of $0.22m
(2024: $0.20m), which is set at 5% of planning materiality,
as well as differences below that threshold that, in our view,
warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the
quantitative measures of materiality discussed above and in
light of other relevant qualitative considerations in forming
our opinion.
Other information
The other information comprises the information included
in the annual report set out on pages 1 to 76 and 122 to
144, other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other
information contained within the annual report.
Our opinion on the financial statements does not cover
the other information and, except to the extent otherwise
explicitly stated in this report, we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements or our
knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such
material inconsistencies or apparent material misstatements,
we are required to determine whether this gives rise to
a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the
Companies Act 2006
In our opinion the part of the directors’ remuneration report
to be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course of
the audit:
• the information given in the strategic report and the
directors’ report for the financial year for which the
financial statements are prepared is consistent with the
financial statements; and
• the strategic report and directors’ report have been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report
by exception
In the light of the knowledge and understanding of the
company and its environment obtained in the course of the
audit, we have not identified material misstatements in the
strategic report or directors’ report.
We have nothing to report in respect of the following matters
in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
• adequate accounting records have not been kept, or
returns adequate for our audit have not been received from
branches not visited by us; or
• the financial statements and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by
law are not made; or
• we have not received all the information and explanations
we require for our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to
going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the company’s
compliance with the provisions of the UK Corporate
Governance Code specified for our review by the UK Listing
Rules.
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent
with the financial statements or our knowledge obtained
during the audit:
• Directors’ statement with regards to the appropriateness
of adopting the going concern basis of accounting and any
material uncertainties identified set out on pages 51 and
52 and page 91;
Section 4: Financial statements 85
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
• Directors’ explanation as to its assessment of the
company’s prospects, the period this assessment covers
and why the period is appropriate set out on pages 42 and
43;
• Director’s statement on whether it has a reasonable
expectation that the Company will be able to continue in
operation and meets its liabilities set out on pages 42 and
43, 51 and 52 and 91;
• Directors’ statement on fair, balanced and understandable
set out on pages 74 to 76;
• Board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out on
page 38;
• The section of the annual report that describes the review
of effectiveness of risk management and internal control
systems set out on pages 38 to 42; and
• The section describing the work of the audit committee set
out on pages 69 to 74.
Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement set out on pages 75 and 76, the directors are
responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view,
and for such internal control as the directors determine is
necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the company’s ability to continue
as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate
the company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and
to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial
statements.
Explanation as to what extent the audit
was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect
irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent to
which our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention
and detection of fraud rests with both those charged with
governance of the company and management.
• We obtained an understanding of the legal and
regulatory frameworks that are applicable to the
Company and determined that the most significant
are UK-adopted International Accounting Standards,
the Companies Act 2006, the UK Listing Rules, the
UK Corporate Governance Code, the Association of
Investment Company’s Code of Corporate Governance
and Statement of Recommended Practice, section 1158
of the Corporation Tax Act 2010 and The Companies
(Miscellaneous Reporting) Regulations 2018.
• We understood how BlackRock Frontiers Investment
Trust plc is complying with those frameworks through
discussions with the Audit and Management Engagement
Committee and Company Secretary, review of Board and
committee meeting minutes and review of papers provided
to the Audit and Management Engagement Committee.
• We assessed the susceptibility of the Company’s financial
statements to material misstatement, including how fraud
might occur by considering the key risks impacting the
financial statements.
• Based on this understanding we designed our audit
procedures to identify non-compliance with such laws
and regulations. Our procedures involved review of the
reporting to the Directors with respect to the application
of the documented policies and procedures and review of
the financial statements to ensure compliance with the
reporting requirements of the Company.
A further description of our responsibilities for the audit
of the financial statements is located on the Financial
Reporting Council’s website at https://www.frc.org.uk/
auditorsresponsibilities. This description forms part of our
auditor’s report.
86 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Independent Auditor’s report
continued
Other matters we are required to address
• Following the recommendation from the audit committee,
we were appointed by the Company on 11 May 2011 to
audit the financial statements for the year ending 30
September 2011 and subsequent financial periods.
The period of total uninterrupted engagement including
previous renewals and reappointments is 15 years,
covering the years ending 30 September 2011 to
30 September 2025.
• The audit opinion is consistent with the additional report to
the audit committee.
Use of our report
This report is made solely to the company’s members,
as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so
that we might state to the company’s members those matters
we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than
the company and the company’s members as a body, for our
audit work, for this report, or for the opinions we have formed.
Matthew Price (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
10 December 2025
Section 4: Financial statements 87
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Statement of comprehensive income
for the year ended 30 September 2025
2025 2024
Notes Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Income from investments held at fair value through profit
or loss 3 19,995 305 20,300 20,656 – 20,656
Net income from derivatives 3, 11 4,041 – 4,041 2,425 – 2,425
Other income 3 131 – 131 209 – 209
Total income 24,167 305 24,472 23,290 – 23,290
Net profit on investments held at fair value through profit
or loss 10 – 49,852 49,852 – 54,953 54,953
Net loss on foreign exchange – (93) (93) – (1,197) (1,197)
Net loss from derivatives 11 – (1,577) (1,577) – (7,902) (7,902)
Total income and net profit on investments 24,167 48,487 72,654 23,290 45,854 69,144
Expenses
Investment management and performance fees 4 (904) (9,598) (10,502) (841) (6,873) (7,714)
Other operating expenses 5 (1,317) (71) (1,388) (1,162) (92) (1,254)
Total operating expenses (2,221) (9,669) (11,890) (2,003) (6,965) (8,968)
Net profit before finance costs and taxation 21,946 38,818 60,764 21,287 38,889 60,176
Finance costs 6 (12) (50) (62) (23) (92) (115)
Net profit before taxation 21,934 38,768 60,702 21,264 38,797 60,061
Taxation (charge)/credit 7 (2,729) 894 (1,835) (2,380) 867 (1,513)
Profit for the year 19,205 39,662 58,867 18,884 39,664 58,548
Earnings per ordinary share (cents) 9 10.15 20.95 31.10 9.97 20.95 30.92
The total columns of this statement represent the Company’s Statement of Comprehensive Income, prepared in accordance
with UK-adopted International Accounting Standards (IAS). The supplementary revenue and capital accounts are both
prepared under guidance published by the Association of Investment Companies (AIC). All items in the above statement derive
from continuing operations. No operations were acquired or discontinued during the year. All income is attributable to the
equity holders of the Company.
The Company does not have any other comprehensive income (2024: US$nil). The net profit for the year disclosed above
represents the Company’s total comprehensive income.
The notes on pages 91 to 118 form part of these financial statements.
88 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Statement of changes in equity
for the year ended 30 September 2025
The notes on pages 91 to 118 form part of these financial statements.
Notes
Called
up share
capital
Capital
redemption
reserve
Special
reserve
Capital
reserves
Revenue
reserve Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
For the year ended 30 September 2025
At 30 September 2024 2,418 5,798 308,804 75,817 13,406 406,243
Total comprehensive income:
Net profit for the year – – – 39,662 19,205 58,867
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (106) – – (106)
Share repurchase costs – – (1) – – (1)
Dividends paid
1
8 – – – – (18,265) (18,265)
At 30 September 2025 2,418 5,798 308,697 115,479 14,346 446,738
For the year ended 30 September 2024
At 30 September 2023 2,418 5,798 308,804 36,153 10,425 363,598
Total comprehensive income:
Net profit for the year – – – 39,664 18,884 58,548
Transactions with owners, recorded directly to equity:
Dividends paid
2
8 – – – – (15,903) (15,903)
At 30 September 2024 2,418 5,798 308,804 75,817 13,406 406,243
1
Final dividend of 6.00 cents per share for the year ended 30 September 2024, declared on 5 December 2024 and paid on
14February 2025 and an interim dividend of 3.65 cents per share for the year ended 30 September 2025, declared on 29 May 2025
and paid on 24 June 2025.
2
Final dividend of 4.90 cents per share for the year ended 30 September 2023, declared on 30 November 2023 and paid on
14February 2024 and an interim dividend of 3.50 cents per share for the year ended 30 September 2024, declared on 31 May 2024
and paid on 2 July 2024.
For information on the Company’s distributable reserves please refer to note 16 on page 103.
Section 4: Financial statements 89
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Notes 2025 2024
US$’000 US$’000
Non current assets
Investments held at fair value through profit or loss
10 454,153 412,308
Current assets
Current tax asset
734 803
Other receivables 12 3,837 3,934
Derivative financial assets held at fair value through profit or loss - contracts for
difference
11 5,872 2,756
Cash and cash equivalents – cash at bank 11 745 2,284
Cash collateral pledged with brokers 11 940 1,305
Total current assets 12,128 11,082
Total assets 466,281 423,390
Current liabilities
Other payables 13 (14,400) (12,667)
Derivative financial liabilities held at fair value through profit or loss - contracts for
difference
11 (1,509) (1,561)
Liability for cash collateral received 11 (3,615) (2,900)
Total current liabilities (19,524) (17,128)
Total assets less current liabilities 446,757 406,262
Non current liabilities
Management shares of £1.00 each (one quarter paid up)
14 (19) (19)
Net assets 446,738 406,243
Equity attributable to equity holders
Called up share capital
15 2,418 2,418
Capital redemption reserve 16 5,798 5,798
Special reserve 16 308,697 308,804
Capital reserves 16 115,479 75,817
Revenue reserve 16 14,346 13,406
Total equity 446,738 406,243
Net asset value per ordinary share (cents) 9 236.03 214.57
The financial statements on pages 87 to 118 were approved and authorised for issue by the Board of Directors on
10 December 2025 and signed on its behalf by Katrina Hart, Chair.
BlackRock Frontiers Investment Trust plc
Registered in England, No. 7409667
Statement of financial position
as at 30 September 2025
The notes on pages 91 to 118 form part of these financial statements.
90 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Cash flow statement
for the year ended 30 September 2025
2025 2024
US$’000 US$’000
Operating activities
Net profit before taxation
1
60,702 60,061
Changes in working capital items:
Increase in other receivables (excluding amounts due from brokers)
(696) (489)
Increase/(decrease) in other payables (excluding amounts due to brokers) 5,069 (4,210)
Decrease in amounts due from brokers 793 1,640
Decrease in amounts due to brokers (3,336) (3,138)
Decrease in cash collateral pledged with brokers 365 1,130
Decrease in cash collateral received from brokers 715 600
Other adjustments:
Finance costs
62 115
Net profit on investments held at fair value through profit or loss (49,852) (54,953)
Net loss from derivatives 1,577 7,902
Net financing costs on derivatives (3,527) (4,835)
Net loss on foreign exchange 93 1,197
Sales of investments held at fair value through profit or loss 192,884 236,900
Purchases of investments held at fair value through profit or loss (200,348) (216,098)
Sales of Cash Fund
2
175,042 161,427
Purchases of Cash Fund
2
(159,571) (165,067)
Amounts paid for losses on closure of derivatives (32,784) (47,584)
Amounts received on profit on closure of derivatives 31,566 41,490
Taxation paid (1,766) (1,872)
Net cash inflow from operating activities 16,988 14,216
Financing activities
Interest paid
(62) (115)
Ordinary shares repurchased into treasury (106) –
Share repurchase costs (1) –
Dividends paid (18,265) (15,903)
Net cash outflow from financing activities (18,434) (16,018)
Decrease in cash and cash equivalents (1,446) (1,802)
Effect of foreign exchange rate changes (93) (1,197)
Change in cash and cash equivalents (1,539) (2,999)
Cash and cash equivalents at the start of year 2,284 5,283
Cash and cash equivalents at the end of the year 745 2,284
Comprised of:
Cash at bank
745 2,284
745 2,284
1
Dividends and interest received in cash during the year amounted to US$15,653,000 and US$2,059,000 respectively (2024:
US$15,293,000 and US$2,964,000).
2
Cash Fund represents investment in the BlackRock Institutional Cash Series plc - US Dollar Liquid Environmentally Aware Fund.
The notes on pages 91 to 118 form part of these financial statements.
Section 4: Financial statements 91
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
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. The Company was incorporated on 15 October 2010, and this is the fourteenth Annual Report.
2. Accounting policies
The principal accounting policies adopted by the Company have been applied consistently, other than where new policies have
been adopted and are set out below.
(a) Basis of preparation
The financial statements have been prepared under the historic cost convention modified by the revaluation of certain
financial assets and financial liabilities held at fair value through profit or loss and in accordance with UK-adopted IAS. All of
the Company’s operations are of a continuing nature.
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 and updated in July 2022, is compatible with UK-adopted
IAS, the financial statements have been prepared in accordance with the guidance set out in the SORP.
Substantially, all of the assets of the Company consist of securities that are readily realisable and, accordingly, the Directors are
satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future for the period to
30 September 2027, being a period of at least twelve months from the date of approval of the financial statements, and therefore
consider the going concern assumption to be appropriate. The Directors have reviewed the income and expense projections, the
potential impact of cash exit tender offer to shareholders in February 2026 and the liquidity of the investment portfolio in making
their assessment.
The Directors have considered the impact of climate change on the value of the investments included in the Financial
Statements and have concluded that there was no further impact of climate change to be considered as the investments are
valued based on market pricing as required by IFRS 13.
None of the Company’s other assets and liabilities were considered to be potentially impacted by climate change.
The Company’s financial statements are presented in US Dollars, which is the functional currency of the Company and the
currency of the primary economic environment in which the Company operates. All values are rounded to the nearest thousand
dollars (US$’000) except where otherwise indicated.
Adoption of relevant new and amended International Accounting Standards and interpretations:
IAS 1 – Classification of liabilities as current or non current and non current liabilities with covenants (effective 1 January
2024). The IASB has amended IAS 1 Presentation of Financial Statements to clarify its requirement for the presentation
of liabilities depending on the rights that exist at the end of the reporting period. The amendment requires liabilities to be
classified as non current if the entity has a substantive right to defer settlement for at least 12 months at the end of the
reporting period. The amendment no longer refers to unconditional rights. The IASB has also introduced additional disclosures
for liabilities with covenants within 12 months of the reporting period. The additional disclosures include the nature of
covenants, when the entity is required to comply with covenants, the carrying amount of related liabilities and circumstances
that may indicate that the entity will have difficulty complying with the covenants.
The amendment of this standard did not have any significant impact on the Company.
IAS 21 - Lack of exchangeability (effective 1 January 2025 - early adopted from 1 October 2024). The IASB issued
amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates to specify how an entity should assess whether a
currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments
also require disclosure of information that enables users of its financial statements to understand how the currency not being
exchangeable into the other currency affects, or is expected to affect, the entity’s financial performance, financial position and
cash flows.
The amendment of this standard did not have any significant impact on the Company’s operations as IAS 21 better reflects the
practical considerations of establishing fair values for the Company’s foreign currency assets.
Notes to the financial statements
for the year ended 30 September 2025
92 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
2. Accounting policies continued
Relevant International Accounting Standards that have yet to be adopted:
IFRS 18 - Presentation and disclosure in financial statements (effective 1 January 2027). The IASB issued IFRS 18, which
replaces IAS 1 Presentation of Financial Statements. IFRS 18 introduces new requirements for presentation within the
statement of profit or loss, including specified totals and subtotals. Furthermore, entities are required to classify all income
and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes
and discontinued operations, whereof the first three are new. It also requires disclosure of newly defined management-
defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and
disaggregation of financial information based on the identified ‘roles’ of the primary financial statements and the notes.
The amendment of this standard is expected to have an impact on the disclosure and presentation of the Statement of
Comprehensive Income but will not have any impact on the accounting or financial results.
(b) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and in accordance with guidance issued by the AIC,
supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and a capital
nature has been presented alongside the Statement of Comprehensive Income.
(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a single segment of business being investment business.
(d) Income
Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Where no ex-dividend
date is available, dividends receivable on or before the year end are treated as revenue for the year. Provision is made for any
dividends and interest income not expected to be received. Special dividends, if any, are treated as a capital or a revenue
receipt depending on the facts or circumstances of each particular case. The return on a debt security is recognised on a time
apportionment basis so as to reflect the effective yield on the debt security. Interest income and deposit interest are accounted
for on an accruals basis.
Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the cash
equivalent of the dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash
dividend is recognised in capital.
(e) Expenses
All expenses, including finance costs, are accounted for on an accruals basis. Expenses have been charged wholly to the
revenue account of the Statement of Comprehensive Income, except as follows:
• expenses which are incidental to the acquisition or sale of an investment are charged to the capital account of the Statement
of Comprehensive Income. Details of transaction costs on the purchases and sales of investments are disclosed within note
10 to the financial statements on page 100;
• expenses are treated as capital where a connection with the maintenance or enhancement of the value of the investments
can be demonstrated;
• the investment management fee and finance costs have been allocated 20% to the revenue account and 80% to the capital
account of the Statement of Comprehensive Income in line with the Board’s expected long-term split of returns, in the form
of capital gains and income, respectively, from the investment portfolio; and
• performance fees are allocated 100% to the capital account of the Statement of Comprehensive Income as fees are
generated in connection with enhancing the value of the investment portfolio.
(f) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on the
taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because
it excludes items of income or expenses that are taxable or deductible in other years and it further excludes items that are
never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that were applicable at the
balance sheet date.
Where expenses are allocated between capital and revenue accounts, any tax relief in respect of the expenses is allocated
between capital and revenue returns on the marginal basis using the Company’s effective rate of corporation tax for the
accounting period.
Notes to the financial statements
continued
Section 4: Financial statements 93
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Deferred taxation is recognised in respect of all temporary differences that have originated but not reversed at the financial
reporting date, where transactions or events that result in an obligation to pay more taxation in the future or right to pay
less taxation in the future have occurred at the financial reporting date. This is subject to deferred taxation assets only being
recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the
temporary differences can be deducted. Deferred taxation assets and liabilities are measured at the rates applicable to the
legal jurisdictions in which they arise.
(g) Investments held at fair value through profit or loss
In accordance with IFRS 9, the Company classifies its investments at initial recognition as held at fair value through profit or
loss and are managed and evaluated on a fair value basis in accordance with its investment strategy and business model.
All investments are measured initially and subsequently at fair value through profit or loss. Purchases of investments are
recognised on a trade date basis. Sales of investments are recognised at the trade date of the disposal.
The fair value of the financial investments is based on their quoted bid price at the financial reporting date, without deduction for
the estimated future selling costs. This policy applies to all current and non-current asset investments held by the Company. The
fair value of the P-Notes are, when held, based on the quoted bid price of the underlying equity to which they relate.
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised
in the Statement of Comprehensive Income as “Net profit/(loss) on investments held at fair value through profit or loss”. Also
included within the heading are transaction costs in relation to the purchase or sale of investments.
For all financial instruments not traded in an active market, the fair value is determined by using various valuation techniques.
Valuation techniques include market approach (i.e., using recent arm’s length market transactions adjusted as necessary and
reference to the current market value of another instrument that is substantially the same) and the income approach (i.e.,
discounted cash flow analysis and option pricing models making as much use of available and supportable market data where
possible). See note 2(o) below.
(h) Derivatives
The Company can hold long and short positions in contracts for difference (CFDs) which are held at fair value based on the bid
prices of the underlying securities in respect of long positions, and the offer prices of the underlying securities in respect of
short positions.
Profits and losses on derivative transactions are recognised in the Statement of Comprehensive Income. They are shown in
the capital account of the Statement of Comprehensive Income if they are of a capital nature and are shown in the revenue
account of the Statement of Comprehensive Income if they are of a revenue nature. To the extent that any profits or losses are
of a mixed revenue and capital nature, they are apportioned between revenue and capital accordingly.
(i) Other receivables and other payables
Other receivables and other payables do not carry any interest and are short term in nature and are accordingly stated on an
amortised cost basis.
(j) Dividends payable
Under IAS, final dividends should not be accrued in the financial statements unless they have been approved by shareholders
before the financial reporting date. Interim dividends should not be recognised in the financial statements unless they have
been paid.
Dividends payable to equity shareholders are recognised in the Statement of Changes in Equity.
(k) Foreign currency translation
Transactions involving foreign currencies are converted at the rate ruling at the date of the transaction. Foreign currency
monetary assets and liabilities and non-monetary assets held at fair value are translated into US Dollars at the rate ruling
on the financial reporting date. Foreign exchange differences arising on translation are recognised in the Statement of
Comprehensive Income as a revenue or capital item depending on the income or expense to which they relate. For investment
transactions and investments held at the year end, denominated in a foreign currency, the resulting gains or losses are
included in the profit/(loss) on investments held at fair value through profit or loss in the Statement of Comprehensive
Income.
94 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
2. Accounting policies continued
(l) Cash and cash equivalents
Cash comprises cash in hand, bank overdrafts and on demand deposits. Cash equivalents are short term, highly liquid
investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in
value.
The Company’s investment in the Cash Fund is managed as part of the Company’s investment policy (see note 2(g) above)
and, accordingly, this investment along with purchases and sales of this investment has been classified in the Statement of
Financial Position as an investment and not as a cash equivalent as defined under IAS 7.
(m) Bank borrowings
Bank overdrafts and loans are recorded as the proceeds received. Finance charges, including any premium payable on
settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Statement of Comprehensive
Income using the effective interest rate method and are added to the carrying amount of the instrument.
(n) Share repurchases and share reissues
Shares repurchased and subsequently cancelled – share capital is reduced by the nominal value of the shares repurchased
and the capital redemption reserve is correspondingly increased in accordance with Section 733 of the Companies Act 2006.
The full cost of the repurchase is charged to the special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is charged to the special reserve.
Where treasury shares are subsequently re-issued:
• amounts received to the extent of the repurchase price are credited to the special reserve and capital reserves based on a
weighted average basis of amounts utilised from these reserves on repurchases; and
• any surplus received in excess of the repurchase price is taken to the share premium account.
Where new shares are issued, amounts received to the extent of any surplus received in excess of the par value are taken to the
share premium account.
Share issue costs are charged to the share premium account. Costs on share reissues are charged to the special reserve and
capital reserves.
(o) Critical accounting estimates and judgements
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions
will, by definition, seldom equal the related actual results. Estimates and judgements are regularly evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. The Directors do not believe that any accounting judgements or estimates have a significant risk of causing a
material adjustment to the carrying amount of assets and liabilities within the next financial year.
Notes to the financial statements
continued
Section 4: Financial statements 95
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
3. Income
2025 2024
US$’000 US$’000
Investment income:
UK dividends 462 576
Overseas dividends 17,607 16,276
Overseas special dividends 85 913
Interest from Cash Fund 1,841 2,891
Total investment income 19,995 20,656
Net income from contracts for difference (note 11) 4,041 2,425
Total income from derivatives 4,041 2,425
Other income:
Interest received on cash collateral 69 135
Deposit interest 62 74
Total other income 131 209
Total 24,167 23,290
Dividends and interest received in cash during the year amounted to US$15,653,000 and US$2,059,000 respectively (2024:
US$15,293,000 and US$2,964,000).
Special dividends from equity investments of US$305,000 have been recognised in capital for the year ended 30 September
2025 (2024: US$nil).
No special dividends from long contracts for difference have been recognised in capital for the year ended 30 September 2025
(2024: US$nil).
96 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
4. Investment management and performance fees
2025 2024
Revenue Capital Total Revenue Capital Total
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
Investment management fee 904 3,618 4,522 841 3,363 4,204
Performance fee – 5,980 5,980 – 3,510 3,510
Total 904 9,598 10,502 841 6,873 7,714
Up to 30 September 2024, the investment management fee equivalent to 1.10% per annum of the Company’s gross assets
(defined as the aggregate net assets of the long only equity and CFD portfolios (long and short) of the Company) was payable to
the Manager.
From 1 October 2024, the investment management fee is levied quarterly on a tiered basis: 1.10% per annum of the Company’s
daily net asset value (NAV) up to and including US$650 million and 1.0% per annum of the Company’s daily NAV above US$650
million.
In addition, the Manager is 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 Frontier + Emerging ex Selected Countries Index. Prior to
1 April 2018, the Benchmark Index was the MSCI Frontier Markets Index.
For the purposes of the calculation of the performance fee, the performance of the NAV total return since launch (including the
reinvestment of dividends and before the deduction of management and performance fees) has been measured against the
performance of the Benchmark Index on a blended basis.
For the year ended 30 September 2025, the Company’s NAV outperformed the Benchmark Index by 4.5% (2024: 0.8%) resulting
in a cumulative outperformance since launch of 86.2% (2024: 68.5%); therefore, a performance fee of US$5,980,000 has been
accrued (2024: US$3,510,000). Any accrued performance fee is included within other payables in the Statement of Financial
Position.
The performance fee payable in any year is capped at 2.5% of the NAV of the Company if there is an increase in the NAV per
share, or 1.0% of the NAV of the Company if there is a decrease in the NAV per share, at the end of the relevant performance
period. Any outperformance in excess of the cap for a period may be carried forward for the next two performance periods,
subject to the then applicable annual cap. The performance fee is also subject to a high watermark such that any performance
fee is only payable to the extent that the cumulative outperformance of the NAV relative to the Benchmark Index is greater than
what would have been achieved had the NAV increased in line with the Benchmark Index since the last date in relation to which
a performance fee had been paid. This mechanism requires the Manager to catch up any cumulative underperformance against
the Benchmark Index since launch before a performance fee can be generated.
The investment management fee is allocated 20% to the revenue account and 80% to the capital account and the performance
fee is wholly allocated to the capital account of the Statement of Comprehensive Income. There is no additional fee for company
secretarial and administration services.
Notes to the financial statements
continued
Section 4: Financial statements 97
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
5. Other operating expenses
2025 2024
US$’000 US$’000
Allocated to revenue:
Custody fee
1
411 276
Auditor’s remuneration:
- audit services 65 61
- other assurance services
2
9 10
Registrar’s fee 42 38
Directors’ emoluments
3
257 258
Broker fees 61 40
Depositary fees
4
42 38
Marketing fees 157 211
AIC fees 29 25
FCA fees 29 23
Printing and postage fees 67 47
Employer NI contributions 24 25
Stock exchange listings 20 17
Legal and professional fees 20 24
Director search fees 29 25
Write back of prior year expenses
5
(1) (17)
Other administrative costs 56 61
Total revenue expenses 1,317 1,162
Allocated to capital:
Custody transaction charges
6
71 92
Total capital expenses 71 92
Total 1,388 1,254
2025 2024
%
%
Ongoing charges (excluding performance fees)
7
1.42 1.41
Ongoing charges (including performance fees)
8
2.87 2.33
1
No fees were payable in 2025 or 2024 in relation to investing in new markets.
2
Fees for other assurance services of £7,100 (US$9,000) (2024: £7,100 (US$10,000)) relate to the review of the interim financial
statements.
3
Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report on page 64. The Company has no
employees.
4
All expenses other than depositary fees are paid in Pound Sterling and are therefore subject to exchange rate fluctuations.
5
Relates to miscellaneous fees written back during the year (2024: Director search fees, miscellaneous fees and legal fees).
6
For the year ended 30 September 2025, expenses of £53,000 (US$71,000) (2024: £69,000 (US$92,000)) were charged to the capital
account of the Statement of Comprehensive Income. These relate to transaction costs charged by the Custodian on sale and purchase
trades.
7
The Company’s ongoing charges (excluding performance fees) calculated as a percentage of average daily net assets and using
the management fee and all other operating expenses, excluding performance fees, finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items. Alternative
Performance Measure, see Glossary on page 136.
8
The Company’s ongoing charges (including performance fees) calculated as a percentage of average daily net assets and using the
management fee and all other operating expenses and including performance fees but excluding finance costs, direct transaction
costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items.
Alternative Performance Measure, see Glossary on page 136.
98 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
6. Finance costs
2025 2024
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Interest paid on bank overdraft – – – 1 2 3
Interest paid on cash collateral 12 50 62 22 90 112
Total 12 50 62 23 92 115
7. Taxation
(a) Analysis of charge/(credit) for the year
2025 2024
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Current taxation:
Corporation tax 940 (940) – 867 (867) –
Overseas tax 1,789 46 1,835 1,513 – 1,513
Total taxation charge/(credit) (note7(b)) 2,729 (894) 1,835 2,380 (867) 1,513
(b) Factors affecting total taxation charge/(credit) for the year
The taxation assessed for the year is lower (2024: lower) than the standard rate of corporation tax used of 25.00% (2024:
standard rate of 25.00%). The differences are explained below:
2025 2024
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Profit before taxation 21,934 38,768 60,702 21,264 38,797 60,061
Profit multiplied by standard
rate of 25.00% (2024: 25.00%) 5,484 9,692 15,176 5,316 9,699 15,015
Effects of:
Non-taxable overseas dividends (4,428) (76) (4,504) (4,305) – (4,305)
Non-taxable UK dividends (116) – (116) (144) – (144)
Profit on investments held at fair value through
profit or loss – (12,463) (12,463) – (13,738) (13,738)
Foreign exchange loss – 23 23 – 299 299
Net loss from derivatives – 394 394 – 1,976 1,976
Overseas tax suffered 1,789 46 1,835 1,513 – 1,513
Current period management expenses not utilised – 1,473 1,473 – 874 874
Disallowed expenses – 17 17 – 23 23
Total taxation charge/(credit) for the year
(note 7(a)) 2,729 (894) 1,835 2,380 (867) 1,513
The Company is exempt from UK corporation tax on capital gains provided it maintains its status as an investment trust under
Chapter 4 of Part 24 of the Corporation Tax Act 2010. Due to the Company’s intention to meet the conditions required to
maintain its investment trust status, it has not provided for deferred UK corporation tax on any capital gains or losses.
At 30 September 2025, the Company had net surplus management expenses of US$23,331,000 (2024: US$17,437,000).
Adeferred tax asset has not been recognised in respect of these losses because the Company is not expected to generate taxable
income in a future period in excess of the deductible expenses of that future period and, accordingly, it is unlikely that the
Company will be able to reduce future tax liabilities through the use of existing surplus management expenses. Accordingly, the
deferred tax asset of US$5,833,000 (2024: US$4,359,000) has not been recognised as at 30 September 2025 which has been
calculated based on the corporation tax rate in effect from 1 April 2023 of 25%, as enacted by the Finance Act 2021.
Notes to the financial statements
continued
Section 4: Financial statements 99
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
8. Dividends
2025 2024
Divi dends paid on equity shares: Record date Payment date US$’000 US$’000
2024 final of 6.00 cents (2023: 4.90 cents) per
ordinary share 10 January 2025 14 February 2025 11,356 9,277
2025 interim of 3.65 cents (2024: 3.50 cents) per
ordinary share 6 June 2025 24 June 2025 6,909 6,626
Accounted for in the financial statements 18,265 15,903
The total dividends payable in respect of the year ended 30 September 2025 which form the basis of Section 1158 of the
Corporation Tax Act 2010 and Section 833 of the Companies Act 2006, and the amounts proposed, meet the relevant
requirements as set out in this legislation.
2025 2024
Dividends paid, proposed or declared on equity shares:
US$’000 US$’000
Interim dividend of 3.65 cents per ordinary share (2024: 3.50 cents) 6,909 6,626
Final proposed dividend of 6.35 cents per ordinary share (2024: 6.00 cents)
1
12,019 11,358
Total for the year 18,928 17,984
1
Based on 189,270,248 ordinary shares in issue on 10 December 2025.
9. Earnings and net asset value per ordinary share
Revenue earnings, capital earnings and net asset value per ordinary share are shown below and have been calculated using
the following:
Year ended
30 September
2025
Year ended
30 September
2024
Net revenue profit attributable to ordinary shareholders (US$'000) 19,205 18,884
Net capital profit attributable to ordinary shareholders (US$'000) 39,662 39,664
Total profit attributable to ordinary shareholders (US$'000) 58,867 58,548
Equity shareholders’ funds (US$’000) 446,738 406,243
The weighted average number of ordinary shares in issue during the year on which the
earnings per ordinary share was calculated was: 189,279,453 189,325,748
The actual number of ordinary shares in issue at the end of the year on which the net asset
value was calculated was: 189,270,248 189,325,748
Earnings per ordinary share
Revenue earnings per share (cents) – basic and diluted 10.15 9.97
Capital earnings per share (cents) – basic and diluted 20.95 20.95
Total earnings per share (cents) – basic and diluted 31.10 30.92
As at
30 September
2025
As at
30 September
2024
Net asset value per ordinary share (cents) 236.03 214.57
Ordinary share price (cents)
1
226.17 194.50
Net asset value per ordinary share (pence)
1
175.32 159.96
Ordinary share price (pence) 168.00 145.00
1
Based on an exchange rate of US$1.3463 to £1 at 30 September 2025 (2024: US$1.3414 to £1).
100 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
10. Investments held at fair value through profit or loss
2025 2024
US$’000 US$’000
Equity investments held at fair value through profit or loss 401,078 343,749
Cash Fund 53,075 68,559
Total value of financial asset investments at 30 September 454,153 412,308
Opening book cost of investments 373,473 366,035
Opening investment holding gains 38,835 8,482
Opening fair value 412,308 374,517
Analysis of transactions made during the year:
Purchases at cost 359,919 381,165
Sales proceeds received (367,926) (398,327)
Gains on investments 49,852 54,953
Closing fair value 454,153 412,308
Closing book cost of investments 386,747 373,473
Closing investment holding gains 67,406 38,835
Closing fair value 454,153 412,308
The Company received US$367,926,000 (2024: US$398,327,000) from investments sold in the year. The book cost of these
investments when they were purchased was US$346,645,000 (2024: US$373,727,000). These investments have been revalued
over time and until they were sold any unrealised gains/(losses) were included in the fair value of investments.
During the year, transaction costs of US$279,000 (2024: US$502,000) were incurred on the acquisition of investments. Costs
relating to the disposal of investments during the year amounted to US$428,000 (2024: US$471,000). All transaction costs have
been included within the net profit on investments in the Statement of Comprehensive Income.
11. Derivatives
The Company may use a variety of derivative contracts, including contracts for difference (CFDs), which are synthetic equities
and are valued by reference to the market values of the investments’ underlying securities.
The sources of the return under the derivative contracts (e.g. notional dividends, financing costs, interest returns and realised
and unrealised gains and losses) are allocated to the revenue and capital accounts in alignment with the nature of the underlying
source of income and in accordance with the guidance given in the AIC SORP. Notional dividend income or expense arising
on long or short positions is allocated wholly to the revenue account. Notional interest income on short positions and notional
interest expense on long positions is apportioned between revenue and capital in accordance with the Board’s long-term
expected returns of the Company (currently determined to be 20% to revenue and 80% to capital). Changes in value relating to
underlying price movements of securities in relation to CFD exposures are allocated to capital. A summary of the various sources
of return on the derivative contracts is given in the table below.
2025 2024
Revenue
US$’000
Capital
US$’000
Total
US$’000
Revenue
US$’000
Capital
US$’000
Total
US$’000
Net change in unrealised gains relating to underlying
price movements – 3,168 3,168 – 3,027 3,027
Net realised losses relating to underlying price
movements – (1,218) (1,218) – (6,094) (6,094)
Notional dividend income on long positions 2,921 – 2,921 4,306 – 4,306
Notional dividend expense on short positions (294) – (294) (640) – (640)
Notional interest expense on long positions (949) (3,806) (4,755) (1,341) (5,247) (6,588)
Notional interest income on short positions 70 279 349 100 412 512
Total return on derivative contracts for the year 1,748 (1,577) 171 2,425 (7,902) (5,477)
Notes to the financial statements
continued
Section 4: Financial statements 101
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The net fair values of derivative financial assets/(liabilities) in respect of long and short CFDs are set out in the table below:
2025 2024
US$’000 US$’000
Derivative financial assets: Amounts due from brokers in respect of revaluation gains on CFDs 5,872 2,756
Derivative financial liabilities: Amounts due to brokers in respect of revaluation losses on CFDs (1,509) (1,561)
Total net derivative financial assets in respect of CFDs 4,363 1,195
Net realised losses on CFD positions of US$1,218,000 (2024: losses of US$6,094,000) comprised realised gains of
US$31,566,000 (2024: US$41,490,000) and realised losses of US$32,784,000 (2024: US$47,584,000).
As at 30 September 2025, the Company held cash at bank of US$745,000 (2024: US$2,284,000). The Company also pledged
cash collateral of US$940,000 (2024: US$1,305,000) with CFD counterparties. This cash represents collateral posted to
counterparties or amounts due to counterparties in respect of unrealised losses on open CFDs. The nature of the Company’s
portfolio means that the Company gains significant exposure to a number of securities through CFDs. The Company may be
geared through the use of CFDs up to 140% of net assets. However, to the extent the Investment Manager has elected not
to be geared, the Company will generally hold a level of cash on its balance sheet representative of the difference between
the cost of purchasing investments directly and the lower initial cost of posting collateral on a CFD contract. The Company
was geared through its use of CFDs as at 30 September 2025 and 2024 and the net difference between the cost of direct
investment and the notional price of purchasing or selling the securities associated with exposures via long and short CFD
contracts amounted to US$88,442,000 (2024: US$77,504,000). Had the Company been able to acquire or sell all of the
underlying CFD positions through direct equity investment, its cash position (taking into account cash invested in the Cash
Fund at 30 September 2025 of US$53,075,000 (2024: US$68,559,000)) at the year end would therefore have been lower by
US$88,442,000 (2024: US$77,504,000).
As at 30 September 2025, the Company also owed US$3,615,000 (2024: US$2,900,000) to counterparties in respect of
cash collateral received to cover unrealised gains on open CFDs. This is disclosed as a creditor of US$3,615,000 (2024:
US$2,900,000) to reflect the economic entitlement of the counterparty to these deposits until such a time as the CFD
contracts are closed out and the gains are realised. To the extent there are unrealised losses on CFD contracts, the Company
will post cash collateral to these counterparties. The Investment Manager monitors margin positions on a daily basis to ensure
any end of day margin balances are minimised and any amounts owed to the Company are transferred on a timely basis. In the
event of default, legal ownership of any monies held in the cash collateral balances resides with the counterparties.
12. Other receivables
2025 2024
US$’000 US$’000
Amounts due from brokers 1,055 1,848
Prepayments and accrued income 2,782 2,086
Total 3,837 3,934
102 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
13. Other payables
2025 2024
US$’000 US$’000
Amounts due to brokers 1,493 4,829
Accruals for other expenses and interest payable 1,087 1,124
Management and performance fees payable 11,820 6,714
Total 14,400 12,667
14. Non current liabilities – Management shares
The Company has in issue 50,000 management shares of £1 each (one quarter paid up of US$19,000 (2024: US$19,000))
which carry the right to receive a fixed cumulative preferential dividend at the rate of 0.01% per annum on the nominal
amount thereof, payable on demand and any such dividend is payable in priority to the payment of dividend to holders of any
other class of shares. To the extent that there are no shares of any other class in issue, each management share carries one
vote. To the extent there are shares of any other class in issue these shares do not carry any voting rights. On a return of assets
of the Company, the holders of these management shares are entitled to be paid the amount paid up or treated as paid up on
their share, such return payable in priority to the return to holders or any other class of shares. The management shares are
not redeemable.
15. Called up share capital
Ordinary
shares
in issue
Treasury
shares
Total
shares
Nominal
value
number number number US$’000
Allotted, called up and fully paid share capital
comprised:
Ordinary shares of 1 cent each:
At 30 September 2023
189,325,748 52,497,053 241,822,801 2,418
At 30 September 2024
189,325,748 52,497,053 241,822,801 2,418
Ordinary shares repurchased into treasury
(55,500) 55,500 – –
At 30 September 2025 189,270,248 52,552,553 241,822,801 2,418
During the year ended 30 September 2025, the Company repurchased 55,500 ordinary shares (2024: none) for a total
consideration of US$107,000 (2024: US$nil).
Since the year end and up to 8 December 2025, no ordinary shares have been repurchased. No shares were issued during the year
under review or post year end from 1 October 2025 up to the date of this report.
Notes to the financial statements
continued
Section 4: Financial statements 103
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
16. Reserves
For the year ended 30 September 2025
Distributable reserves
Capital
redemption
reserve
Special
reserve
Capital
reserve
arising on
investments
sold
Capital
reserve
arising on
revaluation of
investments
held
Revenue
reserve
US$’000 US$’000 US$’000 US$’000 US$’000
At 30 September 2023 5,798 308,804 31,765 4,388 10,425
Movement during the year:
Total comprehensive income:
Net profit for the year – – 4,000 35,664 18,884
Transactions with owners, recorded directly to equity:
Dividends paid – – – – (15,903)
At 30 September 2024 5,798 308,804 35,765 40,052 13,406
Movement during the year:
Total comprehensive income:
Net profit for the year – – 7,933 31,729 19,205
Transactions with owners, recorded directly to equity:
Ordinary shres repurchased into treasury – (106) – – –
Share repurchase costs – (1) – – –
Dividends paid – – – – (18,265)
At 30 September 2025 5,798 308,697 43,698 71,781 14,346
The capital redemption reserve of US$5,798,000 (2024: US$5,798,000) is not a distributable reserve under the Companies
Act 2006. In accordance with ICAEW Technical Release 02/17BL on Guidance on Realised and Distributable Profits under
the Companies Act 2006, the special reserve and capital reserves may be used as distributable reserves for all purposes and,
in particular, the repurchase by the Company of its ordinary shares and for payments such as dividends. In accordance with
the Company’s Articles of Association, the special reserve of US$308,697,000 (2024: US$308,804,000), capital reserves
of US$115,479,000 (2024: US$75,817,000) and the revenue reserve of US$14,346,000 (2024: US$13,406,000) may be
distributed by way of dividend. The gain on the capital reserve arising on the revaluation of investments of US$71,781,000
(2024: US$40,052,000) is subject to fair value movements and may not be readily realisable at short notice, as such it may not
be entirely distributable. The investments are subject to financial risks, as such capital reserves (arising on investments sold)
and the revenue reserve may not be entirely distributable if a loss occurred during the realisation of these investments.
As at 30 September 2025, the Company’s distributable reserves excluding capital reserves on the revaluation of investments
amounted to US$366,741,000 (2024: US$357,975,000).
In June 2011, the Company cancelled its share premium account pursuant to shareholders’ approval of a special resolution
and Court approval on 17 June 2011. The share premium account, which totalled US$142,704,000 was transferred to a
special reserve.
In November 2013, the Company cancelled its share premium account pursuant to shareholders’ approval of a special
resolution and Court approval on 6 November 2013. The share premium account, which totalled US$88,326,000 was
transferred to a special reserve.
In March 2021, the Company cancelled its share premium account pursuant to shareholders’ approval of a special resolution
and Court approval on 11 March 2021. The share premium account, which totalled US$165,984,000 was transferred to a
special reserve.
104 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures
The Company’s investment activities expose it to various types of risks which are associated with the financial instruments
and markets in which it invests. The following information is not intended to be a comprehensive summary of all risks and
shareholders should refer to the Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be
found at www.blackrock.com/uk/brfi for a more detailed discussion of the risks inherent in investing in the Company.
Risk management framework
The following information refers to the risk management framework of the Alternative Investment Fund Manager (AIFM).
However, as disclosed in the Corporate Governance Statement on page 57 and in the Statement of Directors’ Responsibilities
on pages 75 and 76, it is the ultimate responsibility of the Board to ensure that the Company’s risks are appropriately
monitored, and to the extent that elements of this are delegated to third party service providers, the Board is responsible for
ensuring that the relevant parties are discharging their duties in accordance with the terms of the relevant agreements and
taking appropriate action to the extent issues are identified.
The Directors of the AIFM review quarterly investment performance reports and receive semi-annual presentations in person
from the Investment Manager covering the Company’s performance and risk profile during the year. The AIFM has delegated
the day-to-day administration of the investment programme to the Investment Manager. The Investment Manager is also
responsible for ensuring that the Company is managed within the terms of its investment guidelines and limits set out in the
Alternative Investment Fund Managers’ Directive FUND 3.2.2R Disclosures which can be found at www.blackrock.com/uk/brfi.
The AIFM is responsible for monitoring investment performance, product risk monitoring and oversight and has the
responsibility for the monitoring and oversight of regulatory and operational risk for the Company. The Directors of the AIFM
have appointed a Risk Manager who has responsibility for the daily risk management process with assistance from key risk
management personnel of the Investment Manager, including members of the Risk and Quantitative Analysis Group (RQA)
which is a centralised group which performs an independent risk management function. RQA independently identifies,
measures and monitors investment risk, including climate-related risk, and tracks the actual risk management practices
being deployed across the Company. By breaking down the components of the process, RQA has the ability to determine if the
appropriate risk management processes are in place. This captures the risk management tools employed, how the levels of risk
are controlled, ensuring risk/return is considered in portfolio construction and reviewing outcomes.
The AIFM reports to the Audit and Management Engagement Committee twice yearly on key risk metrics and risk management
processes; in addition, the Depositary monitors the performance of the AIFM and reports to the Audit and Management
Engagement Committee semi-annually. Any significant issues are reported to the Board as they arise.
Risk Exposures
The risk exposures of the Company are set out as follows:
(a) Market risk
Market risk arises mainly from uncertainty about future values of financial instruments influenced by other price, currency
and interest rate movements. It represents the potential loss the Company may suffer through holding market positions in
financial instruments in the face of market movements. The Company is also exposed to frontier markets fluctuations through
CFDs which are valued based on the price of the underlying equity holding.
A key metric RQA uses to measure market risk is Value-at-Risk (VaR) which encompasses price, currency and interest rate risk.
VaR is a statistical risk measure that estimates the potential portfolio loss from adverse market moves in an ordinary market
environment. VaR analysis reflects the interdependencies between risk variables, unlike a traditional sensitivity analysis.
The VaR calculations are based on a confidence level of 99% with a holding period of not greater than one day and a historical
observation period of not less than one year (250 days). A VaR number is defined at a specified probability and a specified
time horizon. A 99% one day VaR means that the expectation is that 99% of the time over a one day period the Company will
lose less than this number in percentage terms. Therefore, higher VaR numbers indicate higher risk. It is noted that the use
of VaR methodology has limitations, namely assumptions that risk factor returns are normally distributed and that the use of
historical market data as a basis for estimating future events does not encompass all possible scenarios, particularly those
that are of an extreme nature and that the use of a specified confidence level (e.g. 99%) does not take into account losses that
occur beyond this level. There is some probability that the loss could be greater than the VaR amounts. These limitations, and
the nature of the VaR measure, mean that the Company can neither guarantee that losses will not exceed the VaR amounts
indicated, nor that losses in excess of the VaR amounts will not occur more frequently.
The one-day VaR as at 30 September 2025 and 30 September 2024 (based on a 99% confidence level) was 1.73% and 1.38%
respectively.
Notes to the financial statements
continued
Section 4: Financial statements 105
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
(i) Market risk arising from other price risk
Exposure to other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors
specific to the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the
market. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health
issues, recessions, climate change, or other events could have a significant impact on the Company and the market price of
itsinvestments and could result in increased premiums or discounts to the Company’s net asset value.
The Company is exposed to market price risk arising from its equity investments and CFDs. The movements in the prices of
these investments result in movements in the performance of the Company. Other price risk sensitivity has been covered by
the VaR analysis under the market risk section above.
The Company’s exposure to other changes in market prices at 30 September 2025 on its equity investments, excluding its
holding in the Cash Fund, was US$401,078,000 (2024: US$343,749,000). In addition, the Company’s gross market exposure
to these price changes through its CFD portfolio was US$100,319,000 (2024: US$94,615,000) through long positions and was
US$7,514,000 (2024: US$15,916,000) through short positions.
Management of other price risk
By diversifying the portfolio, where this is appropriate and consistent with the Company’s objectives, the risk that a price
change of a particular investment will have a material impact on the NAV of the Company is minimised, which is in line with the
investment objectives of the Company.
The economic exposures within the CFD portfolio can be closed out at anytime by the Company subject to the market liquidity.
Concentration of exposure to market risks
An analysis of the Company’s investment portfolio is shown on pages 19 to 26. At 30 September 2025, this shows that the
majority of the portfolio is invested in Saudi Arabia, United Arab Emirates, Turkey, Poland and Indonesia. Accordingly, there is a
concentration of exposure to those frontier market countries, though it is recognised that an investment’s country of domicile
or its listing does not necessarily equate to its exposure to the economic conditions in that country.
(ii) Market risk arising from foreign currency risk
Exposure to foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates. Foreign currency sensitivity has been covered by the VaR analysis under the market risk
section.
The fair values of the Company’s monetary items which have foreign currency exposure at 30 September 2025 and
30September 2024 are shown on the following page. Where the Company’s equity investments which are not monetary
items are denominated in a foreign currency, they have been included separately in the analysis so as to show the overall level
ofexposure.
106 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures continued
Saudi
Riyals
UAE
Dirham
Polish
Zloty
Turkish
Lira
Indonesian
Rupiah
2025 US$’000 US$’000 US$’000 US$’000 US$’000
Receivables (due from brokers,
withholding tax receivable, dividends
and other income receivable) – – 1,190 – –
Derivative financial assets - long
(gross exposure) 57,558 – – 6,979 –
Derivative financial liabilities - short
(gross exposure) (3,570) – – – –
Cash and cash equivalents - cash at
bank – – – – –
Payables (due to brokers and other
expenses payable) – – – – –
Total foreign currency exposure on
net monetary items 53,988 – 1,190 6,979 –
Investments held at fair value through
profit or loss 10,207 50,470 42,201 26,713 30,828
Total net foreign currency exposure 64,195 50,470 43,391 33,692 30,828
Euro
Thai
Baht
Pakistani
Rupee
Pound
Sterling Other
2025 US$’000 US$’000 US$’000 US$’000 US$’000
Receivables (due from brokers,
withholding tax receivable, dividends
and other income receivable) 68 – 105 200 764
Derivatives financial assets - long
(gross exposure) – – – 10,298 25,484
Derivatives financial liabilities - short
(gross exposure) – – – – (3,944)
Cash and cash equivalents - cash at
bank – – 109 – 281
Payables (due to brokers and other
expenses payable) – – – (879) –
Total foreign currency exposure on
net monetary items 68 – 214 9,619 22,585
Investments held at fair value through
profit or loss 30,233 26,924 26,400 15,392 96,641
Total net foreign currency exposure 30,301 26,924 26,614 25,011 119,226
Notes to the financial statements
continued
Section 4: Financial statements 107
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Indonesian
Rupiah
Saudi
Riyals
Philippine
Peso
UAE
Dirham
Thai
Baht
2024 US$’000 US$’000 US$’000 US$’000 US$’000
Receivables (due from brokers,
withholding tax receivable, dividends
and other income receivable) – – – – –
Derivative financial assets - long (gross
exposure) – 52,377 – – –
Derivative financial liabilities - short
(gross exposure) – (5,666) – – (4,770)
Cash and cash equivalents - cash at
bank – – – – –
Payables (due to brokers and other
expenses payable) – – – – –
Total foreign currency exposure on
net monetary items – 46,711 – – (4,770)
Investments held at fair value through
profit or loss 63,048 – 35,008 27,205 24,580
Total net foreign currency exposure 63,048 46,711 35,008 27,205 19,810
Euro
Hungarian
Forint
Pound
Sterling
Pakistani
Rupee Other
2024 US$’000 US$’000 US$’000 US$’000 US$’000
Receivables (due from brokers,
withholding tax receivable, dividends
and other income receivable) 14 – 23 102 1,655
Derivatives financial assets - long
(gross exposure) 9,931 – 2,022 – 19,227
Derivative financial liabilities - short
(gross exposure) – – – – (2,472)
Cash and cash equivalents - cash at
bank – – 342 – 281
Payables (due to brokers and other
expenses payable) – – (897) (4) (122)
Total foreign currency exposure on
net monetary items 9,945 – 1,490 98 18,569
Investments held at fair value through
profit or loss 9,428 18,068 15,479 16,615 85,054
Total net foreign currency exposure 19,373 18,068 16,969 16,713 103,623
Management of foreign currency risk
The Investment Manager monitors the Company’s exposure to foreign currencies on a daily basis and reports to the Board of
the Company on a regular basis.
The Investment Manager measures the risk to the Company of the foreign currency exposure by considering the effect on the
Company’s net asset value and income of a movement in the exchange rate to which the Company’s assets, liabilities, income
and expenses are exposed.
The Company does not use financial instruments to mitigate the currency exposure in the period between the time that
income is included in the financial statements and its receipt.
Consequently, the Company is exposed to risks that the exchange rate of its reporting currencies, relative to other currencies,
may change in a manner which has an adverse effect on the value of the portion of the Company’s assets which are
denominated in currencies other than their own currencies.
108 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures continued
(iii) Market risk arising from interest rate risk
Exposure to interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market interest rates.
The Company is exposed to interest rate risk specifically through its cash holdings and on positions within the CFD portfolio.
Interest rate movements may affect the level of income receivable from any cash at bank and on deposits. The effect of interest
rate changes on the earnings of the companies held within the portfolio may have a significant impact on the valuation of the
Company’s investments. Movements in interest rates will also have an impact on the financing costs of the CFD derivative
contracts. Interest rate sensitivity risk has been covered by the VaR analysis under market risk section.
Interest rate exposure
The exposure at 30 September 2025 and 30 September 2024 of financial assets and liabilities to interest rate risk is shown by
reference to:
• floating interest rates – when the interest rate is due to be re-set; and
• fixed interest rates – when the financial instrument is due for repayment.
2025
Within
one year
2024
Within
one year
US$’000 US$’000
Exposure to floating interest rates:
CFD derivative contracts
– Notional long positions (100,319) (94,615)
– Notional short positions 7,514 15,916
Cash Fund 53,075 68,559
Cash and cash equivalents - cash at bank 745 2,284
Cash collateral pledged with brokers 940 1,305
Liability for cash collateral received (3,615) (2,900)
Total exposure to interest rates (41,660) (9,451)
The Company is exposed to interest rate risk on positions within the CFD portfolio. The Company incurs charges on long and
short positions when held. These are based on:
US$ based EUR based
Notional long positions
Overnight US Federal Funds
Effective rate
Euro OverNight
Index Average
Notional short positions
Overnight US Federal Funds
Effective rate
Euro OverNight
Index Average
Notional interest is determined on a gross basis; i.e. for this purpose long and short positions or exposures within the master
agreements are not netted. Further details of notional interest arising in the year in relation to the CFD portfolio are given in
note 11 to the Financial Statements on pages 100 and 101.
The Company has additional exposure to interest rate risk in relation to its holding in the Cash Fund. Interest received on this
holding in the year was on average 4.22% (2024: 5.13%). There were no money market deposits as at 30 September 2025 or
30September 2024.
Notes to the financial statements
continued
Section 4: Financial statements 109
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Company does not have any fixed rate exposure at 30 September 2025 or 30 September 2024. Interest rates received on
cash balances or paid on bank overdrafts, respectively, by major currency account are set out in the table below.
2025
Interest received
%
Interest paid
%
US Dollar 4.200 6.250
Pound Sterling 4.150 7.297
2024
Interest received
%
Interest paid
%
US Dollar 5.106 7.250
Pound Sterling 4.851 8.244
Management of interest rate risk
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account
when making investment decisions.
The Company’s investment guidelines permit it to be geared up to 140% of net assets through the use of derivatives or
borrowings, although the Board currently envisages that any such net gearing will not exceed 130% of net assets. Derivative
contracts are not used to hedge against exposure to interest rate risk.
(b) Counterparty credit risk
Counterparty credit risk is the risk that the issuer of a financial instrument will fail to fulfil an obligation or commitment that it
has entered into with the Company.
The Company is exposed to counterparty credit risk from the parties with which it trades and will bear the risk of settlement
default. Counterparty credit risk to the Company arises from transactions to purchase or sell investments and through its
positions in long and short derivatives.
The major counterparties engaged with the Company are all widely recognised and regulated entities. Long and short CFD
positions, if held, are backed by sufficient margin cash to reduce risk.
Depositary
The Company’s Depositary is The Bank of New York Mellon (International) Limited (BNY or the Depositary) (S&P long-term
credit rating as at 30 September 2025: AA- (2024: AA-)). The Company’s listed investments are held on its behalf by The
Bank of New York Mellon (International) Limited (BNY) as the Company’s Custodian (as sub-delegated by the Depositary).
All of the equity assets and cash of the Company are held within the custodial network of the global custodian appointed by
the Depositary. Bankruptcy or insolvency of the Depositary/Custodian may cause the Company’s rights with respect to its
investments held by the Depositary/Custodian to be delayed or limited. The maximum exposure to this risk at 30 September
2025 is the total value of equity investments held with the Depositary/Custodian and cash and cash equivalents in the
Statement of Financial Position.
In accordance with the requirements of the depositary agreement, the Depositary will ensure that any agents it appoints to
assist in safekeeping the assets of the Company will segregate the assets of the Company. Thus, in the event of insolvency or
bankruptcy of the Depositary, the Company’s non-cash assets are segregated and this reduces counterparty credit risk. The
Company will, however, be exposed to the counterparty credit risk of the Depositary in relation to the Company’s cash held
by the Depositary. In the event of the insolvency or bankruptcy of the Depositary, the Company will be treated as a general
creditor of the Depositary in relation to cash holdings of the Company.
Counterparties/Brokers
The Company only invests directly in markets that operate on a delivery versus payment basis, and consequently most
investment transactions in listed securities involve simultaneous delivery of securities against cash payment using an
approved broker. The risk of default is considered minimal, and the trade will fail if either party fails to meet its obligation.
For a few markets that the Company invests in from time to time, although they operate on a delivery versus payment basis,
there may be a very short time gap between stock delivery and payment, giving a potential rise to counterparty credit risk with
the broker in relation to transactions awaiting settlement. Risk relating to unsettled transactions is considered small due to the
short settlement period involved and the high credit quality of the brokers used for those markets. The Company monitors the
credit rating and financial position of the broker used to further mitigate this risk.
110 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures continued
Cash held by a counterparty to financial derivative contracts is subject to the credit risk of the counterparty. The following table
details the total number of counterparties to which the Company is exposed, the maximum exposure to any one counterparty,
the collateral held by the Company against this exposure, the total exposure to all other counterparties and the lowest long-
term credit rating of any one counterparty (or its ultimate parent if unrated).
Total
number of
counterparties
Maximum
exposure
to any one
counterparty
1
Collateral
held
1
Total
exposure
to all other
counterparties
1
Lowest
credit rating
of any one
counterparty
2
US$’000 US$’000 US$’000 US$’000
2025 7 3,977 940 4,635 A-
2024
7 2,375 1,305 4,513 A+
1
Calculated on a net basis.
2
Standard & Poor’s ratings.
The Company may also be exposed to counterparty risk should there be any rehypothecation of pledged collateral. Collateral
is received/paid where the client service agreement states that there should be collateral movements agreed with the
counterparty, where there is a requirement for a mark-to-market process or collateralisation to ensure that the Company is
protected against any counterparty default.
Over–the–counter (OTC) financial derivative instruments
The Company may utilise both exchange traded and over-the-counter derivatives, including, but not limited to, CFDs and
P-Notes, as part of its investment policy. These instruments can be highly volatile and potentially expose investors to a higher
risk of loss. The low initial margin deposits normally required to establish a position in such instruments permit a high degree
of leverage in respect of each transaction. As a result, depending on the type of instrument, a relatively small movement in the
price of a contract may result in a profit or loss which is high in proportion to the value of the net exposures in the underlying
CFD positions. In addition, daily limits on price fluctuations and speculative position limits on exchanges may prevent prompt
liquidation of positions resulting in potentially greater losses. The Company’s current investment strategy specifically utilises
CFDs. The CFDs utilised have a linear performance to the referenced stocks quoted on exchanges and therefore have a
volatility profile similar to the underlying stocks.
Management of OTC financial derivative instruments
The gross value represents the aggregate of the long and short exposure without netting and so within this limit market exposure
may be significantly less. The net exposure refers to the market exposure the Company has to the underlying securities on
long CFD positions, less the market exposure of the underlying securities on which the Company has taken short positions.
Further definitions are provided in the Glossary on page 132. To the extent derivatives are used to gear the Company’s portfolio,
maximum gross exposure through long and short CFDs will not exceed 150% of net assets and maximum net exposure will not
exceed 130% of net assets. Short positions may not exceed 10% of net assets.
Exposures are monitored daily by the Investment Manager and its independent risk management team. The Company’s board
also reviews exposures regularly.
The CFD positions are diversified across sectors and geographies comprising 16 positions as at 30 September 2025 (2024: 15).
The gross and net underlying notional exposures within the CFD portfolio at 30 September 2025 and 30 September 2024 were:
2025 % of net 2024 % of net
US$’000 assets US$’000 assets
CFDs – gross exposure relating to long positions 100,319 22.5 94,615 23.3
CFDs – gross exposure relating to short positions 7,514 1.7 15,916 3.9
Gross economic exposure 107,833 24.2 110,531 27.2
Net market exposure 92,805 20.8 78,699 19.4
The economic exposures within the CFD portfolio can be closed out at any time by the Company subject to market liquidity.
Details of securities and exposures to market risk, interest rate risk and credit risk implicit within the CFD portfolio are given in
note 17(a)(i), 17(a)(ii), 17(a)(iii), 17(b) and 17(c) to the Financial Statements.
Notes to the financial statements
continued
Section 4: Financial statements 111
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Collateral
The Company engages in activities which may require collateral to be provided to a counterparty (pledged collateral) or
may hold collateral received (inbound collateral) from a counterparty. Pledged and inbound cash collateral is paid/received
in USDollars. The Company uses inbound collateral received from a counterparty to reduce the counterparty credit risk
associated with any trading activity in which the Company has engaged.
The collateral received/posted by the Company under the ISDA Master Agreement in respect of variation margin is transferred
bilaterally under a title transfer arrangement. Collateral received by the Company in respect of variation margin is held in an
account in the name of the Depositary on behalf of the Company. Collateral received is segregated from the assets belonging
to the Company’s Depositary.
At 30 September 2025, all cash collateral received by the Company in respect of CFD transactions was re-invested in the Cash
Fund managed by the Manager or its affiliates as disclosed in the Schedule of Investments. The Company is the legal owner of
Inbound collateral and can sell the assets and withhold the cash in the case of default. All cash received or posted as collateral
has an open maturity tenure as it is not subject to a contractual maturity date.
The returns earned by the Company from the reinvestment of cash collateral in Cash Fund during the year ended
30September 2025 was 4.71% (2024: 5.64%).
Cash collateral pledged by the Company is separately identified as an asset in the Statement of Financial Position and is not
included as a component of cash and cash equivalents. Inbound cash collateral received by the Company is reflected as a
liability on the Statement of Financial Position as cash collateral payable. The cash is subject to certain counterparty credit
risk as the Company’s access to its cash could be delayed should the counterparties become insolvent or bankrupt.
The fair value of inbound cash collateral and cash collateral pledged is reflected in the table below:
Pledged collateral Liability for inbound collateral
2025 2024 2025 2024
US$’000 US$’000 US$’000 US$’000
Cash collateral 940 1,305 3,615 2,900
Receivables
Amounts due from debtors are disclosed in the Statement of Financial Position as receivables. The counterparties included
in receivables are the same counterparties discussed previously under counterparty credit risk and subject to the same
scrutiny by the BlackRock RQA Counterparty and Concentration Risk Team (RQA CCR). The Company monitors the ageing of
receivables to mitigate the risk of debtor balances becoming overdue.
In summary, the exposure to credit risk at 30 September 2025 and 30 September 2024 was as follows:
2025
3 months
or less
2024
3 months
or less
US$’000 US$’000
Cash collateral pledged with brokers 940 1,305
Cash and cash equivalents - cash at bank 745 2,284
Cash Fund 53,075 68,559
CFD positions – amounts due from brokers 5,872 2,756
Other receivables (amounts due from brokers, dividends and interest receivable) 3,837 3,934
Total 64,469 78,838
112 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures continued
The following table details the Company’s exposure to CFDs and net cash collateral (received/pledged in US Dollars) analysed
by counterparty as at the balance sheet date:
2025
Counterparty
country of
incorporation
Receivable/
(payable) for
CFDs
Cash collateral
(received)/
pledged
Name of counterparty US$’000 US$’000
HSBC United Kingdom 3,372 (1,670)
Citibank N.A United Kingdom (701) 420
Bank of America Merrill Lynch United Kingdom 482 (125)
Morgan Stanley United Kingdom (320) (390)
Goldman Sachs United Kingdom 1,631 (1,430)
BNP Paribas France (101) 520
Total 4,363 (2,675)
2024
Counterparty
country of
incorporation
Receivable/
(payable) for
CFDs
Cash collateral
(received)/
pledged
Name of counterparty US$’000 US$’000
HSBC United Kingdom 2,059 (2,070)
Citibank N.A United Kingdom 472 760
Bank of America Merrill Lynch United Kingdom (1,054) 325
Morgan Stanley United Kingdom 5 (210)
Goldman Sachs United Kingdom (137) (620)
BNP Paribas France (150) 220
Total 1,195 (1,595)
Management of counterparty credit risk
Credit risk is monitored and managed by RQA CCR. The team is headed by BlackRock’s Chief Credit Officer who reports to the
Global Head of RQA. Credit authority resides with the Chief Credit Officer and selected team members to whom specific credit
authority has been delegated. As such, counterparty approvals may be granted by the Chief Credit Officer, or by identified RQA
Credit Risk Officers who have been formally delegated authority by the Chief Credit Officer.
The counterparty/credit risk is managed as follows:
• transactions are only entered into with those counterparties approved by RQA CCR, with a formal review carried out for each
new counterparty and with counterparties selected by RQA CCR on the basis of a number of risk mitigation criteria designed
to reduce the risk to the Company of default;
• the creditworthiness of financial institutions with whom cash is held is reviewed regularly by RQA CCR; and
• RQA CCR review the credit standard of the Company’s brokers on a periodic basis and set limits on the amount that may be
due from any one broker.
The Board monitors the Company’s counterparty risk by reviewing:
• the semi-annual report from the Depositary, which includes the results of periodic site visits to the Company’s Custodian
where controls are reviewed and tested;
• the Custodian’s Service Organisation Control (SOC 1) reports which include a report by the Custodian’s Auditor. This report
sets out any exceptions or issues noted as a result of the auditor’s review of the Custodian’s control processes;
• the Manager’s internal control reports which include a report by the Manager’s Auditor. This report sets out any exceptions
or issues noted as a result of the auditor’s review of the Manager’s control processes; and
• in addition, the Depositary and the Manager report any significant breaches or issues arising to the Board as soon as these
are identified.
Notes to the financial statements
continued
Section 4: Financial statements 113
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
There were no past due or impaired assets as of 30 September 2025 (2024: none). The major counterparties engaged with the
Company are all widely recognised and regulated entities.
Offsetting disclosures
In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the
Company may enter into an ISDA Master Agreement or similar agreement with its OTC derivative contract counterparties. An
ISDA Master Agreement is an agreement between the Company and the counterparty that governs OTC derivative contracts
and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or
termination event. Under an ISDA Master Agreement, the Company has a contractual right to offset with the counterparty
certain derivative financial instruments payables and/or receivables with collateral held and/or posted and create one single
net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy,
insolvency or other events.
For financial reporting purposes, the Company does not offset derivative assets and derivative liabilities that are subject to
netting arrangements in the Statement of Financial Position. The disclosures set out in the following table include financial
assets and financial liabilities that are subject to an enforceable master netting agreement or similar agreement.
At 30 September 2025 and 2024, the Company’s derivative assets and liabilities (by type) are as follows:
At 30 September 2025 At 30 September 2024
Assets Liabilities Assets Liabilities
Derivatives US$’000 US$’000 US$’000 US$’000
CFD position – long positions 5,872 (1,028) 2,365 (191)
CFD position – short positions – (481) 391 (1,370)
Total derivative assets and liabilities in the Statement of
Financial Position 5,872 (1,509) 2,756 (1,561)
The following table presents the Company’s derivative assets and liabilities by counterparty, net of amounts available for
offset, under a master netting agreement and net of any related collateral paid or received by the Company as at 30 September
2025 and2024:
Derivative
assets
subject to a
master
netting
agreement
Derivatives
available for
offset
Non–cash
collateral
received
Inbound
cash
collateral
Net amount
of derivative
assets
Counterparty US$’000 US$’000 US$’000 US$’000 US$’000
As at 30 September 2025
HSBC 3,602 – – (1,670) 1,932
Bank of America Merrill Lynch 482 – – (125) 357
Morgan Stanley 132 – – (132) –
Goldman Sachs 1,656 – – (1,430) 226
Total as at 30 September 2025 5,872 – – (3,357) 2,515
As at 30 September 2024
HSBC 2,059 – – (2,059) –
Citibank N.A 472 – – – 472
Bank of America Merrill Lynch 101 – – – 101
Morgan Stanley 5 – – (5) –
Goldman Sachs 119 – – (119) –
Total as at 30 September 2024 2,756 – – (2,183) 573
114 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures continued
Derivative
liabilities
subject to a
master
netting
agreement
Derivatives
available for
offset
Non-cash
collateral
given
Pledged
cash
collateral
Net amount
of derivative
liabilities
Counterparty US$’000 US$’000 US$’000 US$’000 US$’000
As at 30 September 2025
HSBC (231) – – – (231)
Citibank N.A (700) – – 420 (280)
Morgan Stanley (453) – – – (453)
Goldman Sachs (25) – – – (25)
BNP Paribas (100) – – 100 –
Total as at 30 September 2025 (1,509) – – 520 (989)
As at 30 September 2024
Bank of America Merrill Lynch (1,155) – – 325 (830)
Goldman Sachs (256) – – – (256)
BNP Paribas (150) – – 150 –
Total as at 30 September 2024 (1,561) – – 475 (1,086)
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulties in meeting obligations associated with financial liabilities.
The Company is exposed to liquidity risk for margin calls on derivatives.
Liquidity risk exposure
The remaining undiscounted gross cash flows of the financial liabilities as at 30 September 2025 and 30 September 2024,
based on the earliest date on which payment can be required, were as follows:
3 months
or less
Not more
than one
year
More than
one year Total
2025 US$’000 US$’000 US$’000 US$’000
Amounts due to brokers, accruals and provisions 14,400 – – 14,400
Amounts due to CFD counterparty brokers in respect of collateral held
on account 3,615 – – 3,615
Derivative financial liabilities held at fair value through profit or loss 1,509 – – 1,509
Total 19,524 – – 19,524
3 months
or less
Not more
than one
year
More than
one year Total
2024 US$’000 US$’000 US$’000 US$’000
Amounts due to brokers, accruals and provisions 12,667 – – 12,667
Amounts due to CFD counterparty brokers in respect of collateral held
on account 2,900 – – 2,900
Derivative financial liabilities held at fair value through profit or loss 1,561 – – 1,561
Total 17,128 – – 17,128
Management of liquidity risk
Liquidity risk is minimised by holding sufficient liquid investments which can be readily realised to meet liquidity demands.
Asset disposals may also be required to meet liquidity needs. However, the timely sale of trading positions can be impaired
by many factors including decreased trading volume and increased price volatility. As a result, the Company may experience
difficulties in disposing of assets to satisfy liquidity demands. Liquidity risk is not significant as the Company’s assets are
investments in listed securities that are readily realisable.
Notes to the financial statements
continued
Section 4: Financial statements 115
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Company is also exposed to liquidity risks from the leverage employed through exposure to long and short CFD positions.
The underlying securities of the CFD portfolio are all quoted investments that are readily realisable. Short CFD positions are,
when held, backed by sufficient margin cash to reduce risk. The Company does not have a committed overdraft facility in
place. Additional cash is held within the portfolio to further mitigate risk.
The Company’s liquidity risk is managed on a daily basis by the Investment Manager in accordance with established policies
and procedures in place. The Investment Manager reviews daily forward-looking cash reports which project cash obligations.
These reports allow them to manage their obligations.
For the avoidance of doubt, none of the assets of the Company are subject to special liquidity arrangements.
(d) 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(g) to the Financial Statements on
page 93.
Categorisation within the hierarchy has been determined on the basis of the lowest level of input that is significant to the fair
value measurement of the relevant asset or liability.
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 year 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 year-end date. There have been no changes to the valuation technique since the previous year or as at the
date of this report.
Contracts for difference 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 and exchange rates to which these contracts
expose the Company.
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.
116 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
17. Risk management policies and procedures continued
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. If a fair value measurement uses observable
inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 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 including an assessment of the relevant risks including but not limited to credit risk,
market risk, liquidity risk, business risk and sustainability risk. The determination of what constitutes ‘observable’ inputs
requires significant judgement by the Investment Manager and these risks are adequately captured in the assumptions and
inputs used in measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
For exchange listed equity investments, the quoted price is the bid price. Substantially, all investments are valued based on
unadjusted quoted market prices. Where such quoted prices are readily available in an active market, such prices are not
required to be assessed or adjusted for any business risks, including climate risk, in accordance with the fair value related
requirements of the Company’s financial reporting framework.
The table below sets out fair value measurements using IFRS 13 fair value hierarchy.
Financial assets/(liabilities) at fair value through profit or loss
at 30 September 2025
Level 1 Level 2 Level 3 Total
US$’000 US$’000 US$’000 US$’000
Assets:
Equity investments 401,078 – – 401,078
Cash Fund 53,075 – – 53,075
Contracts for difference – 5,872 – 5,872
Liabilities:
Contracts for difference – (1,509) – (1,509)
Total 454,153 4,363 – 458,516
Financial assets/(liabilities) at fair value through profit or loss
at 30 September 2024
Level 1 Level 2 Level 3 Total
US$’000 US$’000 US$’000 US$’000
Assets:
Equity investments 343,749 – – 343,749
Cash Fund 68,559 – – 68,559
Contracts for difference – 2,756 – 2,756
Liabilities:
Contracts for difference – (1,561) – (1,561)
Total 412,308 1,195 – 413,503
There were no transfers between levels of financial assets and financial liabilities during the year ended 30September 2025.
The Company held no Level 3 assets or liabilities during the year ended 30 September 2025 (2024: nil).
(e) Capital management policies and procedures
The Company’s capital management objectives are:
• to ensure it will be able to continue as a going concern; and
• to achieve long-term capital growth, investing primarily in companies operating in or having exposure to frontier markets.
This is to be achieved through an appropriate balance of equity, capital, investment in derivatives and structured financial
instruments, and gearing. The maximum exposure the Company may have to derivatives and structured financial instruments
for investment purposes and efficient portfolio management purposes, in aggregate, is 140% of the Company’s portfolio. The
Company may use borrowings and enter into derivative transactions that have the effect of gearing the Company’s portfolio to
enhance performance. The aggregate gearing of the Company in these circumstances is currently not anticipated to exceed
140% of net assets.
Notes to the financial statements
continued
Section 4: Financial statements 117
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The Company’s total invested capital at 30 September 2025 was US$446,738,000 (2024: US$406,243,000).
The Board, with the assistance of the Investment Manager, monitors and reviews the broad structure of the Company’s capital
on an ongoing basis. This review includes:
• the planned level of gearing, which takes into account the Investment Manager’s view on the market; and
• the need to buy back equity shares, either for cancellation or to be held in treasury, which takes account of the difference
between the NAV per share and the share price (i.e. the level of share price discount or premium).
The Company is subject to externally imposed capital requirements:
• as a public company, the Company has a minimum share capital of £50,000; and
• in order to be able to pay dividends out of profits available for distribution, the Company has to be able to meet both of the
two capital restrictions tests imposed on investment companies by law. Under the Companies Act 2006, a company can
make a distribution only out of accumulated realised profits and if their net assets are not less than the aggregate of their
capital and undistributable reserves.
During the year, the Company complied with the externally imposed capital requirements to which it was subject.
18. Related party disclosure
Directors’ emoluments
At the date of this report, the Board consists of six non-executive Directors, all of whom are considered to be independent of
the Manager by the Board.
Disclosures of the Directors’ interests in the ordinary shares of the Company and fees and expenses payable to the
Directorsare set out in the Directors’ Remuneration Report on pages 64 to 66. At 30 September 2025, US$20,000 (£15,000)
(2024: US$20,000 (£15,000)) was outstanding in respect of Directors’ fees.
Significant holdings
The following investors are:
a. funds managed by the BlackRock Group or are affiliates of BlackRock Inc. (Related BlackRock Funds); or
b. investors (other than those listed in (a) above) who held more than 20% of the voting shares in issue in the Company and
are as a result, considered to be related parties to the Company (Significant Investors).
Total % of shares
held by Related
BlackRock Funds
Total % of shares held by
Significant Investors who are
not affiliates of
BlackRock Group
or BlackRock, Inc.
Number of
Significant Investors who are
not affiliates of
BlackRock Group or
BlackRock, Inc.
As at 30 September 2025 3.3 n/a n/a
As at 30 September 2024 4.0 n/a n/a
118 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
19. Transactions with the Investment Manager and AIFM
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 the investment management contract are disclosed in the Directors’ Report on page 50.
The investment management fee due for the year ended 30 September 2025 amounted to US$4,522,000 (2024:
US$4,204,000). The performance fee payable for the year ended 30 September 2025 amounted to US$5,980,000 (2024:
US$3,510,000).
At the year end, US$2,330,000 (2024: US$3,204,000) was outstanding in respect of management fees and US$9,490,000
(2024: US$3,510,000) was outstanding in respect of performance fees.
In addition to the above services, BIM (UK) has provided the Company with marketing services. The total fees paid or payable
for these services for the year ended 30 September 2025 amounted to US$81,000 (2024: US$211,000) excluding VAT.
Marketing fees of US$147,000 (US$344,000) excluding VAT were outstanding at the year end.
The Company has an investment in the BlackRock Institutional Cash Series plc – US Dollar Liquid Environmentally Aware
Fund of US$53,075,000 (2024: US$68,559,000) at the year end, which is a fund managed by a company within the
BlackRockGroup. The Company’s investment in the Cash Fund is held in a share class on which no management fees are paid
to BlackRock to avoid double dipping.
The ultimate holding company of the Manager and the Investment Manager is BlackRock, Inc., a company incorporated in
Delaware, USA.
20. Contingent liabilities
There were no contingent liabilities at 30 September 2025 (2024: nil).
Notes to the financial statements
continued
Section 4: Financial statements 119
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 5: Additional information 121
Additional
information
Job No: 53118 Proof Event: 6 Black Line Level: 1 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2024 T: 0207 055 6500 F: 020 7055 6600
We added to our investment in Polish retailer LPP. The company
owns five brands – Reserved, Cropp, House, Mohito and Sinsay –
and operates 2800 stores.
PHOTO COURTESY OF LPP
122 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Institutional Investors (Institutional) Advisers (Retail)
Self-Directed Investors (Retail)
Unknown (Retail)
Wealth Managers (Retail)
100
80
60
40
20
0
Sep 11
%
Sep 12
Sep 13
Sep 14
Sep 15
Sep 16
Sep 17
Sep 18
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Sep 24
Sep 25
Analysis of shareholders
as at 30 September 2025
Section 5: Additional information 123
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Year Net assets
Net asset
value per
ordinary
share
Ordinary
share price
per share¹
Ordinary
share price
per share
Net revenue
after
taxation
Revenue
return per
share
Dividends
per share
US$m cents cents pence US$m cents cents
2011
2
115.6 122.0 116.8 75.0 3.3 3.5 3.00
2012 128.3 135.4 130.4 80.8 3.9 4.1 3.80
2013 255.2 169.5 178.1 110.0 5.9 6.1 5.40
3
2014 306.1 203.3 211.6 130.5 9.9 6.6 6.25
2015 242.4 160.9 157.2 103.8 9.9 6.6 6.55
2016 276.4 168.2 167.6 129.0 10.1 6.4 6.60
2017 350.2 196.9 199.9 149.0 13.1 7.7 6.90
2018 356.5 177.7 182.3 139.8 19.3 10.1 8.40
4
2019 400.8 166.5 162.7 132.0 18.9 8.2 7.75
2020 306.0 126.9 120.6 93.3 12.2 5.1 7.00
2021 352.8 186.3 165.2 122.5 14.9 7.1 7.00
2022 302.7 159.9 142.6 127.8 12.0 6.4 7.00
2023 363.6 192.5 175.8 144.0 15.9 8.4 8.00
2024 406.2 214.6 194.5 145.0 18.9 10.0 9.50
2025 446.7 236.0 226.2 168.0 19.2 10.2 10.00
1
Share price converted from Sterling at the exchange rate prevailing on 30 September.
2
Since launch on 17 December 2010 to 30 September 2011.
3
Includes special dividend of 3.40 cents per ordinary share.
4
Includes special dividend of 1.00 cent per ordinary share.
Historical record
as at 30 September 2025
124 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Registered Office
(Registered in England, No. 07409667)
12 Throgmorton Avenue
London EC2N 2DL
Alternative Investment Fund Manager
BlackRock Fund Managers Limited
1, 2
12 Throgmorton Avenue
London EC2N 2DL
Telephone: 020 7743 3000
Investment Manager and Company Secretary
BlackRock Investment Management (UK) Limited
12 Throgmorton Avenue
London EC2N 2DL
Telephone: 020 7743 3000
Email: cosec@blackrock.com
Depositary, Custodian and Fund Accountant
The Bank of New York Mellon (International) Limited
2
160 Queen Victoria Street
London EC4V 4LA
Registrar
Computershare Investor Services PLC
2
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0370 707 4027
Independent Auditor
Ernst & Young LLP
25 Churchill Place
London E14 5EY
Stockbrokers
Winterflood Securities Limited
2
The Atrium Building
Cannon Bridge House
25 Dowgate Hill
London EC4R 2GA
Solicitors
Gowling WLG (UK) LLP
4 More London Riverside
London SE1 2AU
Management and other service providers
1
BlackRock Fund Managers Limited (BFM) was appointed as the Alternative Investment Fund Manager on 2 July 2014. BlackRock
Investment Management (UK) Limited continues to act as the Investment Manager of the Company under a delegation agreement
with BFM.
2
Authorised and regulated by the Financial Conduct Authority.
Section 5: Additional information 125
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Financial calendar
The timing of the announcement and publication of the Company’s results may normally be expected in the months shown
below:
December Annual results announced
December Annual Report and Financial Statements published
February Annual General Meeting
February Final dividend paid
May Half yearly figures to 31 March announced and Half Yearly Financial Report published
June/July Interim dividend paid
Ordinary share price
The Company’s ordinary share price is quoted daily in The Financial Times and The Times under “Investment Companies” and
in The Daily Telegraph under “Investment Trusts”. The share price is also available on the BlackRock website at www.blackrock.
com/uk/brfi.
Payment of dividends
Cash dividends will be sent by cheque to the first-named shareholder at their registered address. The Board has arranged for
all shareholders to receive their dividends in Pound Sterling unless they elect otherwise. Shareholders who wish to receive their
dividends in US Dollars should complete and return the enclosed Currency Election Form.
Dividends may also be paid direct into a shareholder’s bank account via BACSTEL-IP (Bankers’ Automated Clearing Service
– Telecom Internet Protocol). This may be arranged by contacting the Company’s registrar, Computershare Investor Services
PLC, through their secure website www.investorcentre.co.uk, or by telephone on 0370 707 4027, or by completing the Mandate
Instructions section on the reverse of your dividend counterfoil and sending this to the Company’s registrar, Computershare.
Confirmation of dividends paid will be sent to shareholders at their registered address, unless other instructions have been
given, to arrive on the payment date.
Dividend 2025
The proposed final dividend in respect of the year ended 30 September 2025 is 6.35 cents per ordinary share. Together with the
interim dividend of 3.65 cents per share which was paid on 24 June 2025 to shareholders on the register on 6 June 2025, this
gives a total dividend for the year ended 30 September 2025 of 10.00 cents per ordinary share.
Dividend timetable Ordinary shares
Ex-dividend date: 2 January 2026
Record date: 5 January 2026
Last day for receipt of currency elections: 19 January 2026
Dividend payment date: 26 February 2026
ISIN/SEDOL numbers
The ISIN/SEDOL numbers and mnemonic codes for the Company’s shares are:
Ordinary shares
ISIN GB00B3SXM832
SEDOL B3SXM83
Bloomberg code BRFI LN Equity
Ticker BRFI
Dividend tax allowance
The annual tax-free allowance on dividend income across an individual’s entire share portfolio is currently £500. Above
this amount, individuals pay tax on their dividend income at a rate dependent on their income tax bracket and personal
circumstances.
The Company continues to provide registered shareholders with confirmation of the dividends paid and this should be
included with any other dividend income received when calculating and reporting total dividend income received. It is a
shareholder’s responsibility to include all dividend income when calculating any tax liability.
If you have any tax queries, please contact a financial advisor.
Shareholder information
126 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Share dealing
Investors wishing to purchase more shares in the Company or sell all or part of their existing holding may do so through a
stockbroker. Most banks also offer this service. Alternatively, please go to www.computershare.com/dealing/uk for a range of
Dealing services made available by Computershare.
CREST
The Company’s shares may be held in CREST, an electronic system for uncertificated securities trading.
Private investors can continue to retain their share certificates and remain outside the CREST system. Private investors are
able to buy and sell their holdings in the same way as they did prior to the introduction of CREST, although there may be
differences in dealing charges.
Electronic communications
We encourage you to play your part in reducing our impact on the environment and elect to be notified by email when your
shareholder communications become available online. This means you will receive timely, cost-effective and greener online
Annual Reports, Half Yearly Financial Reports and other relevant documentation. Shareholders who opt for this service will
receive an email from Computershare with a link to the relevant section of the BlackRock website where the documents can
be viewed and downloaded. Please submit your email address by visiting www.investorcentre.co.uk. You will require your
shareholder reference number which you will find on your share certificate or dividend confirmation.
You will continue to receive a printed copy of these reports if you have elected to do so. Alternatively, if you have not submitted
your email address nor have elected to receive printed reports, we will write and let you know where you can view these reports
online.
Electronic proxy voting
Shareholders are able to submit their proxy votes electronically via Computershare’s internet site at www.eproxyappointment.com
using their shareholder reference number, control number and a unique identification PIN which will be provided with voting
instructions and the Notice of Annual General Meeting.
CREST members who wish to appoint one or more proxies or give an instruction through the CREST electronic proxy
appointment service may do so by using the procedures described in the CREST manual. More details are set out in the notes
on the Form of Proxy and the Notice of Annual General Meeting.
Annual general meeting
The AGM of the Company is to be held at 1.00 p.m. on 23 February 2026. If you are unable to attend the meeting you can watch
the presentation live. Details of how to register can be found on the inside front cover of this report. A replay will also be made
available on the Company’s website at www.blackrock.com/uk/brfi. The Investment Manager presents their overview of the
year and the outlook for the coming months.
Nominee code
Where shares are held in a nominee company name, the Company undertakes:
• to provide the nominee company with multiple copies of shareholder communications, so long as an indication of
quantities has been provided in advance; and
• to allow investors holding shares through a nominee company to attend general meetings, provided the correct authority
from the nominee company is available.
Nominee companies are encouraged to provide the necessary authority to underlying shareholders to attend the Company’s
general meetings.
Publication of net asset value/portfolio analysis
The net asset value (NAV) per share of the Company is calculated daily, with details of the Company’s investments and
performance being published monthly.
The daily NAV per share and monthly information are released through the London Stock Exchange’s Regulatory News Service
and are available on the BlackRock website at www.blackrock.com/uk/brfi and through the Reuters News Service under the
code “BLRKINDEX”, on page 8800 on Topic 3 (ICV terminals) and under “BLRK” on Bloomberg (monthly information only).
Shareholder information
continued
Section 5: Additional information 127
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Online access
Other details about the Company are available on the BlackRock website at www.blackrock.com/uk/brfi. The financial
statements and other literature are published on the website. Visitors to the website need to be aware that legislation in the
United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in their
jurisdiction.
Shareholders can also manage their shareholding online by using Investor Centre, Computershare’s secure website, at
www.investorcentre.co.uk. To access Computershare’s website, you will need your shareholder reference number (SRN) which
can be found on paper or electronic communications you have previously received from Computershare. Listed below are the
most frequently used features of the website.
• Holding enquiry – view balances, values, history, payments and reinvestments.
• Payments enquiry – view your dividends and other payment types.
• Address change – change your registered address.
• Bank details update – choose to receive your dividend payment directly into your bank account instead of by cheque.
• e-Comms sign-up – choose to receive email notification when your shareholder communications become available instead
of paper communications.
• Outstanding payments – reissue payments using the online replacement service.
• Downloadable forms – including dividend mandates, stock transfer, dividend reinvestment and change of address forms.
Stocks and Shares Individual Savings Accounts (ISAs)
ISAs are a tax-efficient method of investment and the Company’s shares are eligible investments for inclusion within stocks
and shares Individual Savings Accounts. In the 2025/2026 tax year investors have an annual ISA allowance of £20,000 which
can be invested in either cash or shares.
Shareholder enquiries
The Company’s registrar is Computershare Investor Services PLC. Certain details relating to your holding can be checked
through the Computershare Investor Centre website. As a security check, specific information needs to be input accurately to
gain access to an individual’s account. This includes your shareholder reference number, available from your share certificate,
dividend confirmation statement or other electronic communications you have previously received from Computershare. The
address of the Computershare website is www.investorcentre.co.uk. Alternatively, please contact the registrar on 0370 707 4027.
Changes of name or address must be notified in writing either through Computershare’s website, or to the registrar at:
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
General enquiries
Enquiries about the Company should be directed to:
The Company Secretary
BlackRock Frontiers Investment Trust plc
12 Throgmorton Avenue
London EC2N 2DL
Telephone: 020 7743 3000
Email: cosec@blackrock.com
128 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Remuneration related disclosures in accordance with Article 22(2) of the AIFMD, Article 107
of the AIFMD Regulations and Section XIII of the ESMA Guidelines on sound remuneration
policies under the AIFMD
The below disclosures are made in respect of the remuneration policies of the BlackRock group (“BlackRock”), as they apply
to BlackRock Fund Managers Limited (the “Manager”). The disclosures are made in accordance with the provisions in the
UK implementing the Alternative Investment Fund Managers Directive (the “AIFMD”), the European Commission Delegated
Regulation supplementing the AIFMD (the “Delegated Regulation”) and the “Guidelines on sound remuneration policies under
the AIFMD” issued by the European Securities and Markets Authority.
Quantitative remuneration disclosure
The Manager is required under the AIFMD to make quantitative disclosures of remuneration. These disclosures are made
in line with BlackRock’s interpretation of currently available regulatory guidance on quantitative remuneration disclosures.
As market or regulatory practice develops BlackRock may consider it appropriate to make changes to the way in which
quantitative remuneration disclosures are calculated. Where such changes are made, this may result in disclosures in relation
to a fund not being comparable to the disclosures made in the prior year, or in relation to other BlackRock fund disclosures in
that same year.
Remuneration information at an individual AIF level is not readily available. Disclosures are provided in relation to (a) the staff
of the Manager; (b) staff who are senior management; (c) staff who have the ability to materially affect the risk profile of the
Fund; and (d) staff of companies to which portfolio management and risk management has been formally delegated.
All individuals included in the aggregated figures disclosed are rewarded in line with BlackRock’s remuneration policy for their
responsibilities across the relevant BlackRock business area. As all individuals have a number of areas of responsibilities, only
the portion of remuneration for those individuals’ services attributable to the Manager is included in the aggregate figures
disclosed.
Members of staff and senior management of the Manager typically provide both AIFMD and non-AIFMD related services
in respect of multiple funds, clients and functions of the Manager and across the broader BlackRock group. Conversely,
members of staff and senior management of the broader BlackRock group may provide both AIFMD and non-AIFMD related
services in respect of multiple funds, clients and functions of the broader BlackRock group and of the Manager. Therefore,
the figures disclosed are a sum of individuals’ portion of remuneration attributable to the Manager according to an objective
apportionment methodology which acknowledges the multiple-service nature of the Manager and the broader BlackRock
group. Accordingly, the figures are not representative of any individual’s actual remuneration or their remuneration structure.
The amount of the total remuneration awarded to the Manager’s staff in respect of the Manager’s financial year ending
31 December 2024 is US$102.44 million. This figure is comprised of fixed remuneration of US$37.20 million and variable
remuneration of US$65.24 million. There was a total of 4,206 beneficiaries of the remuneration described above.
The amount of the aggregate remuneration awarded by the Manager in respect of the Manager’s financial year ending
31 December 2024 to its senior management was US$14.31 million and to other members of its staff whose actions
potentially have a material impact on the risk profile of the Manager or its funds was US$16.36 million. These figures relate to
the Manager and not to the Company.
AIFMD report on remuneration
(unaudited)
Section 5: Additional information 129
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Leverage
The Company may employ leverage and borrow cash in accordance with its stated investment policy or investment strategy.
The Company may also employ leverage in its investment programme through foreign exchange forward contracts. The use of
borrowings and leverage has attendant risks and can, in certain circumstances, substantially increase the adverse impact to
which the Company’s investment portfolio may be subject.
Consistent with its investment objective and policy, the Company may utilise a variety of exchange traded and over the counter
(OTC) derivative instruments such as covered put/call options as part of its investment policy. The use of derivatives may
expose the Company to a higher degree of risk. No derivatives were used for leverage purposes during the year.
For the purposes of this disclosure, leverage is any method by which the Company’s exposure is increased, whether through
borrowing of cash or securities, or leverage embedded in foreign exchange forward contracts or by any other means. The
AIFMD requires that each leverage ratio be expressed as the ratio between a Company’s exposure and its NAV, and prescribes
two required methodologies, the gross methodology and the commitment methodology (as set out in AIFMD Level 2
Implementation Guidance), for calculating such exposure.
Using the methodologies prescribed under the AIFMD, the leverage of the Company is disclosed in the table below:
Commitment
leverage
Gross
leverage
Leverage ratio – as at 30September 2025 1.01 0.94
Leverage ratio – as at 30September 2024 1.13 1.12
Other risk disclosures
The financial risk disclosures relating to risk framework and liquidity risk are set out in note 17 in the notes to the financial
statements on page 104.
Pre investment disclosures
The AIFMD requires certain information to be made available to investors in AIFs before they invest and requires that material
changes to this information be disclosed in the Annual Report of each AIF. An Investor Disclosure Document, which sets out
information on the Company’s investment strategy and policies, leverage, risk, liquidity, administration, management, fees,
conflicts of interest and other shareholder information is available on the website at www.blackrock.com/uk/brfi.
There have been no material changes (other than those reflected in these financial statements) to this information requiring
disclosure. Any information requiring immediate disclosure pursuant to the AIFMD will be disclosed to the London Stock
Exchange through a primary information provider.
LUCY DINA
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
10 December 2025
Other AIFMD disclosures
(unaudited)
130 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
The disclosures below are made in compliance with the requirements of Listing Rule 6.6.1.
6.6.1 (1) The Company has not capitalised any interest in the period under review.
6.6.1 (2) The Company has not published any unaudited financial information in a class 1 circular or prospectus or any profit
forecast or profit estimate.
6.6.1 (3) The Company does not have any long-term incentive schemes in operation.
6.6.1 (4) and (5) No Director of the Company has waived or agreed to waive any current or future emoluments from the
Company or any subsidiary undertaking.
6.6.1 (6) The Company has not allotted any ordinary shares during the year.
The Company is a stand-alone entity and therefore Listing Rules 6.6.1 (7) and 6.6.1 (8) are not applicable.
6.6.1 (9) There were no contracts of significance subsisting during the period under review to which the Company is a party
and in which a Director of the Company is or was materially interested, or between the Company and a controlling shareholder.
6.6.1 (10) This provision is not applicable to the Company.
6.6.1 (11) and (12) There were no arrangements under which a shareholder has waived or agreed to waive any dividends or
future dividends.
6.6.1 (13) This provision is not applicable to the Company.
LUCY DINA
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
10 December 2025
Information to be disclosed in accordance
with Listing Rule 6.6.1
Section 5: Additional information 131
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Depositary report
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London EC4V 4LA
T +44 (0)20 7570 1784
The Bank of New York Mellon (International) Limited is registered in England & Wales with Company 3236121 with its
Registered Office at 160 Queen Victoria Street London EC4V 4LA. Authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
23 October 2025
To the Board of Directors
BlackRock Frontiers Investment Trust Plc
12 Throgmorton Avenue,
London
EC2N 2DL
Dear Sir / Madam,
Re: BlackRock Frontiers Investment Trust Plc (‘the Entity’)
Statement of the Depositary's Responsibilities in Respect of the Scheme and Report of the Depositary to the
Shareholders of the BlackRock Frontiers Investment Trust Plc (“the Company”) for the Period Ended 30 September
2025.
The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s
Investment Funds Sourcebook, (“the Sourcebook”), the Alternative Investment Fund Managers Directive (“AIFMD”)
(together “the Regulations”) and the Company’s Articles of Association.
The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of
the Company and its investors.
The Depositary is responsible for the safekeeping of the assets of the Company in accordance with the Regulations.
The Depositary must ensure that:
• the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash accounts in
accordance with the Regulations;
• the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the Regulations;
• the assets under management and the net asset value per share of the Company are calculated in accordance with the
Regulations;
• any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time
limits;
• that the Company’s income is applied in accordance with the Regulations; and
• the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict with
the Regulations).
The Depositary also has a duty to take reasonable care to ensure that Company is managed in accordance with the
Articles of Association in relation to the investment and borrowing powers applicable to the Company.
Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the
Company, it is our opinion, based on the information available to us and the explanations provided, that in all material
respects the Company, acting through the AIFM has been managed in accordance with the rules in the Sourcebook, the
Articles of Association of the Company and as required by the AIFMD.
Yours sincerely
Colin Campbell
Senior Manager
The Bank of New York Mellon (International) Limited – UK Trustee & Depositary
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London EC4V 4LA
T +44 (0)20 7570 1784
The Bank of New York Mellon (International) Limited is registered in England & Wales with Company 3236121 with its
Registered Office at 160 Queen Victoria Street London EC4V 4LA. Authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
23 October 2025
To the Board of Directors
BlackRock Frontiers Investment Trust Plc
12 Throgmorton Avenue,
London
EC2N 2DL
Dear Sir / Madam,
Re: BlackRock Frontiers Investment Trust Plc (‘the Entity’)
Statement of the Depositary's Responsibilities in Respect of the Scheme and Report of the Depositary to the
Shareholders of the BlackRock Frontiers Investment Trust Plc (“the Company”) for the Period Ended 30 September
2025.
The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s
Investment Funds Sourcebook, (“the Sourcebook”), the Alternative Investment Fund Managers Directive (“AIFMD”)
(together “the Regulations”) and the Company’s Articles of Association.
The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of
the Company and its investors.
The Depositary is responsible for the safekeeping of the assets of the Company in accordance with the Regulations.
The Depositary must ensure that:
• the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash accounts in
accordance with the Regulations;
• the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the Regulations;
• the assets under management and the net asset value per share of the Company are calculated in accordance with the
Regulations;
• any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time
limits;
• that the Company’s income is applied in accordance with the Regulations; and
• the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict with
the Regulations).
The Depositary also has a duty to take reasonable care to ensure that Company is managed in accordance with the
Articles of Association in relation to the investment and borrowing powers applicable to the Company.
Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the
Company, it is our opinion, based on the information available to us and the explanations provided, that in all material
respects the Company, acting through the AIFM has been managed in accordance with the rules in the Sourcebook, the
Articles of Association of the Company and as required by the AIFMD.
Yours sincerely
Colin Campbell
Senior Manager
The Bank of New York Mellon (International) Limited – UK Trustee & Depositary
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London EC4V 4LA
T +44 (0)20 7570 1784
The Bank of New York Mellon (International) Limited is registered in England & Wales with Company 3236121 with its
Registered Office at 160 Queen Victoria Street London EC4V 4LA. Authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
23 October 2025
To the Board of Directors
BlackRock Frontiers Investment Trust Plc
12 Throgmorton Avenue,
London
EC2N 2DL
Dear Sir / Madam,
Re: BlackRock Frontiers Investment Trust Plc (‘the Entity’)
Statement of the Depositary's Responsibilities in Respect of the Scheme and Report of the Depositary to the
Shareholders of the BlackRock Frontiers Investment Trust Plc (“the Company”) for the Period Ended 30 September
2025.
The Depositary must ensure that the Company is managed in accordance with the Financial Conduct Authority’s
Investment Funds Sourcebook, (“the Sourcebook”), the Alternative Investment Fund Managers Directive (“AIFMD”)
(together “the Regulations”) and the Company’s Articles of Association.
The Depositary must in the context of its role act honestly, fairly, professionally, independently and in the interests of
the Company and its investors.
The Depositary is responsible for the safekeeping of the assets of the Company in accordance with the Regulations.
The Depositary must ensure that:
• the Company’s cash flows are properly monitored and that cash of the Company is booked into the cash accounts in
accordance with the Regulations;
• the sale, issue, repurchase, redemption and cancellation of shares are carried out in accordance with the Regulations;
• the assets under management and the net asset value per share of the Company are calculated in accordance with the
Regulations;
• any consideration relating to transactions in the Company’s assets is remitted to the Company within the usual time
limits;
• that the Company’s income is applied in accordance with the Regulations; and
• the instructions of the Alternative Investment Fund Manager (“the AIFM”) are carried out (unless they conflict with
the Regulations).
The Depositary also has a duty to take reasonable care to ensure that Company is managed in accordance with the
Articles of Association in relation to the investment and borrowing powers applicable to the Company.
Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the
Company, it is our opinion, based on the information available to us and the explanations provided, that in all material
respects the Company, acting through the AIFM has been managed in accordance with the rules in the Sourcebook, the
Articles of Association of the Company and as required by the AIFMD.
Yours sincerely
Colin Campbell
Senior Manager
The Bank of New York Mellon (International) Limited – UK Trustee & Depositary
132 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Alternative Performance Measure (APM)
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot
be directly derived from the financial statements.
The Company’s APMs are set out below and are cross-referenced where relevant to the financial inputs used to derive them as
contained in other sections of the Annual Report and Financial Statements.
Benchmark Index
The Company’s Benchmark Index, used for performance comparative purposes, is the MSCI Frontier + Emerging exSelected
Countries Index (previously named the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index).
Benchmark Index outperformance/underperformance is measured by comparing the Company’s net asset value return (NAV)
total return, with the performance of the Benchmark Index on a total return basis.
Outperformance/(underperformance) (US$)
Year ended
30 September
2025
%
Year ended
30 September
2024
%
Net asset value per share (with dividends reinvested) total return 15.1 16.4 (a)
Benchmark Index total return 10.6 15.7 (b)
Outperformance/(underperformance) (c = a - b) 4.5 0.7 (c)
Outperformance/(underperformance) (£)
Year ended
30 September
2025
%
Year ended
30 September
2024
%
Net asset value per share (with dividends reinvested) total return 14.7 6.0 (a)
Benchmark Index total return 10.2 5.3 (b)
Outperformance/(underperformance) (c = a - b) 4.5 0.7 (c)
Closed-end company
An investment trust works along the same lines as a unit trust, in that it pools money from investors which is then managed
on a collective basis. The main difference is that an investment trust is a company listed on the Stock Exchange and, in most
cases, trading takes place in shares which have already been issued, rather than through the creation or redemption of units.
As the number of shares which can be issued or cancelled at any one time is limited, and requires the approval of existing
shareholders, investment trusts are known as closed-end funds or companies. This means that investment trusts are not
subject to the same liquidity constraints as open ended funds and can therefore invest in less liquid investments.
Contracts for difference (CFD)
A CFD is an agreement to exchange the difference in value of a particular share or index between the time at which a contract
is opened and the time at which it is closed. A CFD allows an investor to gain access to the movement in the share price by
putting down a small amount of cash known as a margin which can range between 1% and up to 80% of the market value of
the underlying security.
CFDs do not have an expiry date like options or futures contracts. As opposed to an expiry date a CFD is effectively renewed at
the close of each trading day and rolled forward if desired.
Discount and premium*
Investment trust shares can frequently trade at a discount to NAV. This occurs when the share price (based on the mid-
market share price) is less than the NAV and investors may therefore buy shares at less than the value attributable to them
by reference to the underlying assets. The discount is the difference between the share price and the NAV, expressed as a
percentage of the NAV.
Glossary
* Alternative Performance Measure.
Section 5: Additional information 133
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Discount calculation Page
As at
30 September
2025
cents
As at
30 September
2024
cents
Ordinary share price 99 226.17 194.50 (a)
Net asset value per ordinary share 99 236.03 214.57 (b)
Premium/(discount) (c=((a-b)/b)) (%) (4.2) (9.4) (c)
A premium occurs when the share price (based on the mid-market share price) is more than the NAV and investors would
therefore be paying more than the value attributable to the shares by reference to the underlying assets. For example, if the
share price was 370 pence and the NAV 365 pence, the premium would be 1.4%.
Discounts and premiums are mainly the consequence of supply and demand for the shares on the stock market.
Gearing and borrowings*
The Company may achieve gearing through borrowings or the effect of gearing through an appropriate balance of equity capital,
investment in derivatives and structured financial instruments, and borrowings. The maximum exposure the Company may have
to derivatives and structured financial instruments for investment purposes and efficient portfolio management purposes, in
aggregate, is 140% of the Company’s net assets. The Company may use borrowings and enter into derivative transactions that
have the effect of gearing the Company’s portfolio to enhance performance.
The Company’s gross and net gearing through the use of long and short CFD positions as at 30 September 2025 and
30September 2024 is set out in the table below.
As at
30 September
2025
As at
30 September
2024
Gross and net gearing Page US$’000 US$’000
Equity investments 100 401,078 343,749 (a)
Long CFD exposures 110 100,319 94,615 (b)
Short CFD exposures 110 7,514 15,916 (c)
Gross geared exposure (d = a + b + c) 508,911 454,280 (d)
Net geared exposure (e = a + b - c) 493,883 422,448 (e)
Net assets 89 446,738 406,243 (f)
Gross gearing % of net assets (g = (d - f)/f x 100) (%) 13.9 11.8 (g)
Net gearing % of net assets (h = (e - f)/f x 100) (%) 10.6 4.0 (h)
Gross market exposure and net market exposure
Market exposure gained through a CFD contract refers to the gross market value of the underlying securities to which the
investor is exposed through the CFD contract.
Gross exposure refers to the total exposure the investor has through both long and short positions added together. For
example, an investor who has 110% long market exposure through CFDs and 20% short market exposure through CFDs has
gross market exposure of 130%.
Net exposure refers to the exposure the investor has through long positions less any short positions. For example, an investor
who has 110% long market exposure through CFDs and 20% short market exposure through CFDs has net market exposure
of 90%; this method of measurement is looking at the net directional market exposure and takes into account the fact that
long and short positions theoretically offset one another when the market moves in a particular direction.
Leverage
Leverage is defined in the AIFM Directive as “any method by which the AIFM increases the exposure of an AIF it manages
* Alternative Performance Measure.
134 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
whether through borrowing of cash or securities, or leverage embedded in derivative positions or by any other means”.
Leverage is measured in terms of ‘exposure’ and is expressed as a ratio of net asset value:
Leverage ratio
=
Total assets
Net assets
The Directive sets out two methodologies for calculating exposure. These are the Gross Method and the Commitment Method.
The treatment of cash and cash equivalent balances in terms of calculating what constitutes an “exposure” under AIFMD
differs for these two methods. The definitions for calculating the Gross Method exposures require that “the value of any cash
and cash equivalents which are highly liquid investments held in the base currency of the AIF, that are readily convertible to a
known amount of cash, are subject to an insignificant risk of change in value and provide a return no greater than the rate of a
three-month high quality government bond” should be excluded from exposure calculations.
The Company is leveraged in accordance with the methodology set out in the AIFMD, as at 30 September 2024, however all
derivative positions were backed by cash and the Company was not geared from this perspective, nor was it geared using the
calculation methodology adopted and recommended by the AIC.
Net asset value per share (Capital only NAV)*
The capital only NAV is a point of reference when comparing a range of investment trusts. This NAV focuses on the value of the
Company’s assets disregarding the current period revenue income, on the basis that most trusts will distribute substantially
all of their income in any financial period. It is calculated by dividing ‘equity shareholders’ funds’ (excluding current period
revenue) by the total number of ordinary shares in issue.
Capital only NAV calculation Page
As at
30 September
2025
As at
30 September
2024
Capital only NAV (US$’000) (g) 434,442 393,985 (a)
Ordinary shares in issue 99 189,270,248 189,325,748 (b)
Capital only NAV (cents) (c = a/b) 229.54 208.10 (c)
Page
As at
30 September
2025
US$’000
As at
30 September
2024
US$’000
Net assets 89 446,738 406,243 (d)
Current year revenue return 87 (19,205) (18,884) (e)
Interim dividends paid from current year revenue 88 6,909 6,626 (f)
Capital only NAV (g = d-e+f) 434,442 393,985 (g)
Net asset value per share (Cum income NAV)
This is the value of the Company’s assets attributable to one ordinary share. It is calculated by dividing ‘equity shareholders’
funds’ by the total number of ordinary shares in issue (excluding treasury shares).
Equity shareholders’ funds are calculated by deducting from the Company’s total assets, its current and long-term liabilities
and any provision for liabilities and charges.
Cum income NAV calculation Page
As at
30 September
2025
As at
30 September
2024
Equity shareholders’ funds (US$’000) (g) 89 446,738 406,243 (a)
Ordinary shares in issue 99 189,270,248 189,325,748 (b)
Cum income NAV (cents) (c = a/b) 236.03 214.57 (c)
* Alternative Performance Measure.
Glossary
continued
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
NAV and share price return (with dividends reinvested)*
Performance statistics enable the investor to make performance comparisons between investment trusts with different
dividend policies. The performance measures the combined effect of any dividends paid, together with the rise or fall in the
share price or NAV. This is calculated by the movement in the share price or NAV plus the dividends paid by the Company
assuming these are reinvested in the Company at the prevailing NAV/share price (please see note 9 of the financial statements
for the audited inputs to the calculations).
NAV total return – US Dollar
Page
For the year
ended
30 September
2025
cents
For the year
ended
30 September
2024
cents
For the period
since inception
to 30 September
2025
cents
For the period
since inception
to 30 September
2024
cents
Closing NAV per share 99 236.03 214.57 236.03 214.57
Add back interim and final dividends 9.65 8.40 96.80 87.15
Effect of dividend reinvestment 1.30 0.69 76.76 54.12
Adjusted closing NAV 246.98 223.66 409.59 355.84 (a)
Opening NAV per share 214.57 192.05 152.80 152.80 (b)
NAV total return (c = ((a-b)/b)) (%) 15.1 16.5 168.1 132.9 (c)
NAV total return - Pound Sterling
Page
For the year
ended
30 September
2025
pence
1
For the year
ended
30 September
2024
pence
1
For the period
since inception
to 30 September
2025
pence
1
For the period
since inception
to 30 September
2024
pence
1
Closing NAV per share 99 175.32 159.96 175.32 159.96
Add back interim and final dividends 7.51 6.61 71.21 63.70
Effect of dividend reinvestment 0.58 0.18 56.59 40.71
Adjusted closing NAV 183.41 166.75 303.12 264.37 (a)
Opening NAV per share 159.96 157.35 98.00 98.00 (b)
NAV total return (c = ((a - b)/b)) (%) 14.7 6.0 209.3 169.8 (c)
Share price total return - US Dollar
Page
For the year
ended
30 September
2025
cents
1
For the year
ended
30 September
2024
cents
1
For the period
since inception
to 30 September
2025
cents
1
For the period
since inception
to 30 September
2024
cents
1
Closing share price 99 226.17 194.50 226.17 194.50
Add back interim and final dividends 9.65 8.40 96.80 87.15
Effect of dividend reinvestment 1.29 0.59 75.18 44.94
Adjusted closing share price 237.11 203.49 398.15 326.59 (a)
Opening share price 194.50 175.76 155.74 155.74 (b)
Share price total return (c = ((a-b)/b)) (%) 21.9 15.8 155.7 109.7 (c)
* Alternative Performance Measure.
Section 5: Additional information 135
136 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Share price total return - Pound Sterling
Page
For the year
ended
30 September
2025
pence
For the year
ended
30 September
2024
pence
For the period
since inception
to 30 September
2025
pence
For the period
since inception
to 30 September
2024
pence
Closing share price 99 168.00 145.00 168.00 145.00
Add back interim and final dividends 7.51 6.61 71.21 63.70
Effect of dividend reinvestment 0.56 0.10 55.33 33.86
Adjusted closing share price 176.07 151.71 294.54 242.56 (a)
Opening share price 145.00 144.00 100.00 100.00 (b)
Share price total return (c = ((a - b)/b)) (%) 21.4 5.4 194.5 142.6 (c)
1
Based on an exchange rate of US$1.3463 to £1 at 30 September 2025, US$1.3414 to £1 at 30 September 2024 and US$1.5574 to
£1 at inception.
Ongoing charges ratio*
Ongoing charges (%)
=
Annualised ongoing charges
Average undiluted net asset value
in the period
Ongoing charges are those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital
or revenue, and which relate to the operation of the investment company as a collective fund. Ongoing charges are based on
costs incurred in the year as being the best estimate of future costs and include the annual management fees.
As recommended by the AIC in its guidance, ongoing charges are the Company’s management fee and all other operating
expenses (excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered,
taxation, prior year expenses written back and certain non-recurring items) expressed as a percentage of the average daily net
assets of the Company during the year.
The inputs that have been used to calculate the ongoing charges percentage are set out in the following table.
Ongoing charges calculation
Page
Year ended
30 September
2025
US$’000
Year ended
30 September
2024
US$’000
Management fee 96 4,522 4,204
Other operating expenses
1
97 1,317 1,179
Total management fee and other operating expenses 5,839 5,383 (a)
Performance fee 96 5,980 3,510 (b)
Total management and performance fees and other operating expenses (c = a + b) 11,819 8,893 (c)
Average daily net assets in the year 411,471 382,075 (d)
Ongoing charges in the year excluding performance fees (e = a/d) (%) 1.42 1.41 (e)
Ongoing charges in the year including performance fees (f = c/d) (%) 2.87 2.33 (f)
1
Excluding the write back of prior year expenses totalling US$1,000 (2024: US$17,000).
* Alternative Performance Measure.
Glossary
continued
Section 5: Additional information 137
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Participatory notes (P-Notes)
Participatory notes issued by certain counterparty banks are designed to offer the holder a return linked to the performance of
a particular underlying equity security or market, and used where direct investment in the relevant underlying equity security
or market is not possible for regulatory or other reasons.
Quoted securities and unquoted securities
Quoted securities are securities that trade on an exchange for which there is a publicly quoted price. Unquoted securities are
financial securities that do not trade on an exchange for which there is not a publicly quoted price.
Revenue profit and revenue reserves
Revenue profit is the net revenue income earned after deduction of fees and expenses allocated to the revenue account
and taxation suffered by the Company. Revenue reserves is the undistributed income that the Company keeps as reserves.
Investment trusts do not have to distribute all the income they generate, after expenses. They may retain up to 15% of revenue
generated which will be held in a revenue reserve. This reserve can be used at a later date to supplement dividend payments to
shareholders.
Short and long exposures
CFDs enable an investor to benefit from the price of a stock falling as well as rising. This enables the investor to benefit
from negative as well as positive views on individual stocks. Entering into a CFD that results in a profit where the share price
movement falls is referred to as taking a short position. The counterparty pays the investor interest on the cash deposited
with it which collateralises the short positions and deductions are made from the value of the short CFD contract in respect of
dividends payable in relation to these stocks.
Entering into a CFD contract that results in a profit if the price of the stock rises is referred to as taking a long position. The
investor pays a financing charge on long positions and receives payments from the counterparty in respect of dividends
payable in relation to these long positions.
Treasury shares
Treasury shares are shares that a company keeps in its own treasury which are not currently issued to the public. These
shares do not pay dividends, have no voting rights and are not included in a company’s total issued share capital amount for
calculating percentage ownership. Treasury stock may have come from a repurchase or buy back from shareholders, or it may
never have been issued to the public in the first place. Treasury shares may be reissued from treasury to the public to meet
demand for a company’s shares in certain circumstances.
Total dividends and yield*
Total dividends represent interim and final dividends declared by the Company for a particular year. The yield is the amount of
cash (in percentage terms) that is returned to the owners of the security, in the form of interest or dividends received from it.
Normally, it does not include the price variations, distinguishing it from the total return.
Yield
Page
As at
30 September
2025
cents
As at
30 September
2024
cents
Interim and final dividends paid/payable
1
99 10.00 9.50 (a)
Ordinary share price 99 226.17 194.50 (b)
Yield (c = a/b) (%) 4.4 4.9 (c)
1
Comprising dividends declared/paid for the twelve months to 30September.
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Section 6: Annual general meeting 139
Annual
general
meeting
We increased our exposure to the United Arab Emirates during the
year. Our discussions in the country reinforced our confidence in
Dubai’s position as a global hub.
140 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Notice is hereby given that the next Annual General Meeting of BlackRock Frontiers Investment Trust plc (the Company) will
be held at the offices of BlackRock Investment Management (UK) Limited, at 12 Throgmorton Avenue, London EC2N 2DL on
Monday, 23 February 2026 at 1.00 p.m. for the purpose of considering and, if thought fit, passing the following resolutions.
Resolutions 1 to 12 are proposed as ordinary resolutions and resolutions 13 to 15 are being proposed as special resolutions.
Ordinary business
Ordinary resolutions
1. To receive the report of the Directors of the Company and the Financial Statements for the year ended 30 September 2025,
together with the report of the Auditor thereon.
2. To approve the Directors’ Remuneration Report for the year ended 30 September 2025.
3. To approve the Directors’ Remuneration Policy as set out on pages 67 and 68.
4. To approve the payment by the Company of a final dividend of 6.35 cents per ordinary share in respect of the year ended
30September 2025.
5. To re-elect Katrina Hart as a Director.
6. To re-elect Elisabeth Airey as a Director.
7. To re-elect Lucy Taylor-Smith as a Director.
8. To re-elect Hatem Dowidar as a Director.
9. To elect Christopher Casey as a Director.
10. To reappoint Ernst & Young LLP as Auditor to the Company to hold office until the conclusion of the next Annual General
Meeting of the Company.
11. To authorise the Audit and Management Engagement Committee to determine the Auditor’s remuneration.
Special business
Ordinary resolutions
12. That, in substitution for all existing authorities, the Directors of the Company be and they are hereby generally and
unconditionally authorised pursuant to Section 551 of the Companies Act 2006 (the Act), to exercise all the powers of the
Company to allot ordinary shares of US$0.01 each in the capital of the Company (“Shares”) and to grant rights to subscribe
for or to convert any security into Shares (“Securities”), up to an aggregate nominal amount of US$189,270 (being 10% of the
aggregate nominal amount of the issued ordinary share capital of the Company, excluding treasury shares, at the date of this
notice), or, if different, such amount as represents 10% of the aggregate nominal amount of the issued ordinary share capital
of the Company, excluding treasury shares, as at the date of the passing of this resolution, provided this authority shall expire
at earlier of 31 March 2027 and the conclusion of the annual general meeting to be held in 2027 but so that the Company
may, before such expiry, make any offer or agreement which would or might require Securities to be allotted pursuant to any
such offer or agreement as if the authority hereby conferred had not expired.
Special resolutions
To consider and, if thought fit, pass the following resolutions as special resolutions:
13. That, in substitution for all existing authorities and subject to the passing of resolution 12, the Directors of the Company
be and are hereby empowered pursuant to Sections 570 and 573 of the Act to allot and make offers or agreements to allot
equity securities (as defined in Section 560 of the Act), and to sell equity securities held by the Company as treasury shares
(as defined in Section 724 of the Act) for cash pursuant to the authority granted by the resolution numbered 12, as if
Section 561(1) of the Act did not apply to any such allotments and sales of equity securities, provided that this power:
(a) shall expire at the earlier of 31 March 2027 and the conclusion of the annual general meeting of the Company to
be held in 2027, except that the Company may before such expiry make offers or agreements which would or might
require equity securities to be allotted or sold after such expiry and notwithstanding such expiry the Directors may allot
and sell equity securities in pursuance of such offers or agreements;
Notice of annual general meeting
Section 6: Annual general meeting 141
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
(b) shall be limited to the allotment of equity securities and/or the sale of equity securities held in treasury for cash up to
an aggregate nominal amount of US$189,270 (representing approximately 10% of the aggregate nominal amount of
the issued ordinary share capital of the Company at the date of this notice) or, if different, such amount as represents
10% of the Company’s issued share capital as at the date of the passing of this resolution; and
(c) shall be limited to the allotment of equity securities and/or the sale of equity securities held in treasury at a price of not
less than the net asset value per ordinary share.
14. That, in addition to any existing authorities the Company be and it is hereby authorised in accordance with Section 701 of
the Act to make market purchases within the meaning of Section 693(4) of the Act of Shares provided that:
(a) the maximum number of Shares hereby authorised to be purchased is 23,371,610 (being the equivalent of 14.99% of
the Company’s issued share capital, excluding treasury shares, at the date of this notice) or, if different, such amount
as represents 14.99% of the Company’s issued share capital, excluding treasury shares, as at the date of the passing of
this resolution;
(b) the minimum price (exclusive of expenses) which may be paid for a share shall be 1 cent (or the Pound Sterling
currency equivalent), being the nominal value per Share;
(c) the maximum price (exclusive of expenses) which may be paid for a Share shall be the higher of:
(i) 5% above the average of the market value of a Share for the five business days immediately preceding the date of
the purchase as derived from the Daily Official List of the London Stock Exchange; and
(ii) the higher of the price quoted for (a) the last independent trade of and (b) the highest current independent bid for,
any number of shares on the trading venue where the purchase is carried out; and
(d) the authority hereby conferred shall expire at the earlier of 31 March 2027 and the conclusion of the annual general
meeting of the Company in 2027 save that the Company may, prior to such expiry, enter into a contract to purchase
shares which will or may be completed or executed wholly or partly after such expiry.
All shares purchased pursuant to the above authority shall be either:
(a) held, sold, transferred or otherwise dealt with as treasury shares in accordance with the provisions of the Act; or
(b) cancelled immediately upon completion of the purchase.
15. That, the period of notice required for general meetings of the Company (other than Annual General Meetings) shall be not
less than 14 clear days’ notice.
By order of the Board
LUCY DINA
For and on behalf of
BlackRock Investment Management (UK) Limited
Company Secretary
10 December 2025
Registered Office:
12 Throgmorton Avenue
London EC2N 2DL
142 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Notes:
1. A member entitled to attend, speak and vote at the meeting convened by the above Notice is entitled to appoint one or more
proxies to exercise all or any of the rights of the member to attend, speak and vote in his place. A proxy need not be a member of
the Company. If a member appoints more than one proxy to attend the meeting, each proxy must be appointed to exercise the
rights attached to a different share or shares held by the member.
2. To appoint a proxy, you may use the form of proxy enclosed with this Annual Report. To be valid, the form of proxy, together
with the power of attorney or other authority (if any) under which it is signed or a notarially certified copy of the same, must be
completed and returned to the office of the Company’s registrar in accordance with the instructions printed thereon as soon as
possible and in any event by 1.00 p.m. on Thursday, 19 February 2026 (excluding non-working days). Amended instructions must
also be received by the Company’s registrar by the deadline for receipt of proxies. Alternatively, you can vote or appoint a proxy
electronically by visiting eproxyappointment.com. You will be asked to enter the Control Number, the Shareholder Reference
Number and PIN which are printed on the form of proxy. The latest time for the submission of proxy votes electronically is 1.00 p.m.
on Thursday, 19 February 2026 (excluding non-working days).
3. Proxymity Voting – if you are an institutional investor you may also be able to appoint a proxy electronically via the Proxymity
platform, a process which has been agreed by the Company and approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 1.00 p.m. on Thursday, 19 February 2026 in order to be
considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s associated terms
and conditions. It is important that you read these carefully as you will be bound by them and they will govern the electronic
appointment of your proxy.
4. Completion and return of the form of proxy will not prevent a member from attending the meeting and voting in person. If you have
appointed a proxy and attend the meeting in person, your proxy appointment will be automatically terminated.
5. Any person (a “Nominated Person”) receiving a copy of this Notice as a person nominated by a member to enjoy information
rights under Section 146 of the Companies Act 2006 (the Act) should note that the provisions in notes 1 and 2 above concerning
the appointment of a proxy or proxies to attend the meeting in place of a member, do not apply to a Nominated Person as only
shareholders have the right to appoint a proxy. However, a Nominated Person may have a right under an agreement between the
Nominated Person and the member by whom he or she was nominated to be appointed, or to have someone else appointed, as
proxy for the meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may have
a right under such agreement to give instructions to the member as to the exercise of voting rights at the meeting.
6. Nominated Persons should also remember that their main point of contact in terms of their investment in the Company remains
the member who nominated the Nominated Person to enjoy the information rights (or perhaps the custodian or broker who
administers the investment on their behalf). Nominated Persons should continue to contact that member, custodian or broker
(and not the Company) regarding any changes or queries relating to the Nominated Person’s personal details and interest in the
Company (including any administrative matter). The only exception to this is where the Company expressly requests a response
from the Nominated Person.
7. Only shareholders registered in the register of members of the Company by not later than 6.00 p.m. on Thursday, 19 February
2026 shall be entitled to attend and vote at the meeting in respect of the number of shares registered in their name at such time. If
the meeting is adjourned, the time by which a person must be entered on the register of members of the Company in order to have
the right to attend and vote at the adjourned meeting is 6.00 p.m. two days prior to the date of the adjournment. Changes to the
register of members after the relevant times shall be disregarded in determining the rights of any person to attend and vote at the
meeting.
8. In the case of joint holders, the vote of the senior holder who tenders a vote whether in person or by proxy shall be accepted to the
exclusion of the votes of the other joint holders and, for this purpose, seniority will be determined by the order in which the names
stand in the register of members of the Company in respect of the relevant joint holding.
9. Shareholders who hold their shares electronically may submit their votes through CREST, by submitting the appropriate and
authenticated CREST message so as to be received by the Company’s registrar by 1.00 p.m. on Thursday, 19 February 2026
(excluding non-working days). Instructions on how to vote through CREST can be found by accessing the following website:
euroclear.com/CREST. Shareholders are advised that CREST and the internet are the only methods by which completed proxies
can be submitted electronically.
10. If you are a CREST system user (including a CREST personal member) you can appoint one or more proxies or give an instruction
to a proxy by having an appropriate CREST message transmitted. To appoint one or more proxies or to give an instruction to a
proxy (whether previously appointed or otherwise) via the CREST system, CREST messages must be received by Computershare (ID
number 3RA50) by 1.00 p.m. on Thursday, 19 February 2026 (excluding non-working days). For this purpose, the time of receipt
will be taken to be the time (as determined by the timestamp generated by the CREST system) from which Computershare is able
to retrieve the message. CREST personal members or other CREST sponsored members should contact their CREST sponsor
for assistance with appointing proxies via CREST. For further information on CREST procedures, limitations and system timings
please refer to the CREST manual. The Company may treat as invalid a proxy appointment sent by CREST in the circumstances set
out in Regulation 35(5)(a) of the Uncertificated Securities Regulations 2001.
11. If the Chair, as a result of any proxy appointments, is given discretion as to how the votes subject of those proxies are cast and
voting rights in respect of those discretionary proxies, when added to the interest in the Company’s securities already held by the
Chair, result in the Chair holding such number of voting rights that he has a notifiable obligation under the Disclosure Guidance
and Transparency Rules, the Chair will make the necessary notifications to the Company and the Financial Conduct Authority. As a
result, any member holding 3% or more of the voting rights in the Company, who grants the Chair a discretionary proxy in respect
of some or all of those voting rights and so would otherwise have a notification obligation under the Disclosure Guidance and
Transparency Rules, need not make a separate notification to the Company and the Financial Conduct Authority.
Notice of annual general meeting
continued
Section 6: Annual general meeting 143
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
12. Any question relevant to the business of the meeting may be asked at the meeting by anyone permitted to speak at the meeting.
A shareholder may alternatively submit a question in advance by a letter addressed to the Company Secretary at the Company’s
registered office. Under Section 319A of the Act, the Company must answer any question a shareholder asks relating to the
business being dealt with at the meeting, unless (i) answering the question would interfere unduly with the preparation for the
meeting or involve the disclosure of confidential information; (ii) the answer had already been given on a website in the form of an
answer to a question; or (iii) it is undesirable in the interests of the Company or the good order of the meeting that the question be
answered.
13. Any corporation which is a member can appoint one or more corporate representatives who may exercise on its behalf all of its
powers as a member provided that, if it is appointing more than one corporate representative, it does not do so in relation to the
same shares.
14. Under Section 527 of the Act, members meeting the threshold requirements set out in that section have the right to require the
Company to publish on a website a statement setting out any matter relating to:
(i) the audit of the Company’s financial statements (including the auditor’s report and the conduct of the audit) that are laid
before the meeting; or
(ii) any circumstance connected with an Auditor of the Company ceasing to hold office since the previous meeting at which
annual accounts and reports were laid in accordance with Section 437 of the Act. The Company may not require the members
requesting such website publication to pay its expenses in complying with Sections 527 or 528 of the Act. Where the Company
is required to place a statement on a website under Section 527 of the Act, it must forward the statement to the Company’s
Auditor not later than the time when it makes the statement available on the website. The business which may be dealt with at
the meeting includes any statement that the Company has been required under Section 527 of the Act to publish on a website.
15. Under Sections 338 and 338A of the Act, members meeting the threshold requirements in those sections have the right to require
the Company:
(i) to give, to members of the Company entitled to receive notice of the meeting, notice of a resolution which may properly be
moved and is intended to be moved at the meeting; and/or
(ii) to include in the business to be dealt with at the meeting any matter (other than a proposed resolution) which may be properly
included in the business.
A resolution may properly be moved or a matter may properly be included in the business unless:
(a) (in the case of a resolution only) it would, if passed, be ineffective (whether by reason of inconsistency with any enactment or
the Company’s constitution or otherwise);
(b) it is defamatory of any person; or
(c) it is frivolous or vexatious.
Such a request may be in hard copy form or in electronic form, and must identify the resolution of which notice is to be given or the
matter to be included in the business, must be authorised by the person or persons making it, must be received by the Company
not later than 11 January 2026, being the date six weeks clear before the meeting and (in the case of a matter to be included in the
business only) must be accompanied by a statement setting out the grounds for the request.
16. Further information regarding the meeting which the Company is required by Section 311A of the Act to publish on a website in
advance of the meeting (including this Notice), can be accessed at www.blackrock.com/uk/brfi.
17. As at the date of this report, the Company’s issued share capital comprised 241,822,801 ordinary shares of 1 cent each (including
52,552,553 of which are held in treasury) with 1 voting right per share, and 50,000 management shares of £1.00 each (which do
not carry voting rights). Each ordinary share carries the right to one vote at general meetings. Therefore, the total number of voting
rights in the Company on 10 December 2025 is 189,270,248.
18. No service contracts exist between the Company and any of the Directors, who hold office in accordance with letters of
appointment and the Articles. Copies of the Directors’ letters of appointment will be available for inspection at the Company’s
registered office from 10 December 2025 until the time of the meeting and at the meeting venue itself for at least 15 minutes prior
to the meeting until the end of the meeting.
144 BlackRock Frontiers Investment Trust plc l Annual Report and Financial Statements 30 September 2025
Job No: 101568 Proof Event: 23 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Be ScamSmart
Investment scams are designed
to look like genuine investments
Spot the warning signs
Have you been:
• contacted out of the blue
• promised tempting returns and told the investment is safe
• called repeatedly, or
• told the offer is only available for a limited time?
If so, you might have been contacted by fraudsters.
Avoid investment fraud
Reject cold calls
Check the FCA Warning List
Get impartial advice
you hand over any money. Seek advice from someone
Report a scam
Find out more at www.fca.org.uk/scamsmart
1
2
3
Remember: if it sounds too good to
be true, it probably is!
The FCA Warning List is a list of firms and individuals we
know are operating without our authorisation.
If you’ve received unsolicited contact about an investment
opportunity, chances are it’s a high risk investment or a
scam. You should treat the call with extreme caution.
The safest thing to do is to hang up.
If you suspect that you have been approached by
fraudsters please tell the FCA using the reporting form at
www.fca.org.uk/consumers. You can also call the
FCA Consumer Helpline on 0800 111 6768
If you have lost money to investment fraud, you should
report it to Action Fraud on 0300 123 2040 or online at
www.actionfraud.police.uk
SGN001
Share fraud warning
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
Printed by Park Communications on FSC® certified paper.
Park works to the EMAS standard and its Environmental Management System is certified to ISO 14001.
This publication has been manufactured using 100% offshore wind electricity sourced from UK wind.
100% of the inks used are vegetable oil based, 95% of press chemicals are recycled for further use and, on
average 99% of any waste associated with this production will be recycled and the remaining 1% used to
generate energy.
This document is printed on paper made of material from well-managed FSC®-certified forests and other
controlled sources.
Retail Investors advised by IFAs
The Company currently conducts its affairs so that its shares
can be recommended by Independent Financial Advisers
(“IFAs”) in the UK to ordinary retail investors in accordance
with the Financial Conduct Authority (“FCA”) rules in relation
to non-mainstream investment products and intends to
continue to do so. The shares are excluded from the FCA’s
restrictions which apply to nonmainstream investment
products because they are shares in an investment trust.
Computershare – Share Dealing Service
An internet and telephone dealing service is available
through the Company’s registrar, Computershare. This
provides a simple way for UK shareholders of BlackRock
Frontiers Investment Trust plc to buy or sell the Company’s
shares. For online share purchases, you
will need to register for the Walker Crips Dealing
Service www.wcgplc.co.uk/ShareDealing. For full
details and terms and conditions simply log onto
www.computershare.com/dealing/uk or call 0370 703 0084
between 8.30am and 5.30pm Monday to Friday. This service
is only available to shareholders of BlackRock Frontiers
Investment Trust plc who hold shares in their own name,
with a UK registered address and who are aged 18 and
over. Computershare Investor Services PLC, The Pavillions,
Bridgwater Road, Bristol BS13 8AE is registered in England
and Wales with number 03498808. Computershare Investor
Services PLC is authorised and regulated by the Financial
Conduct Authority.
Investment Platforms
The Company’s shares are traded openly on the London
Stock Exchange and can be purchased through a stock
broker or other financial intermediary. The shares are
available through savings plans (including Investment
Dealing Accounts, ISAs, Junior ISAs and SIPPs) which
facilitate both regular monthly investments and lump sum
investments in the Company’s shares. There are a number of
investment platforms that offer these facilities. The following
is a list of some of them, which is not comprehensive and
does not constitute any form of recommendation:
AJ Bell Youinvest www.youinvest.co.uk/
Barclays Stockbrokers www.smartinvestor.barclays.co.uk/
Bestinvest www.bestinvest.co.uk/
Charles Stanley Direct www.charles-stanley-direct.co.uk/
Halifax Share Dealing www.halifaxsharedealing-online.co.uk
Hargreaves Lansdown www.hl.co.uk/
HSBC www.hsbc.co.uk/investments/products-and-services/
invest-direct/
iDealing www.idealing.com/
Interactive Investor www.ii.co.uk/
IWEB www.iweb-sharedealing.co.uk/
Saxo Capital Markets www.home.saxo
Tillit www.tillitinvest.com/
WealthClub www.wealthclub.co.uk
Risk warnings
Past performance is no guarantee of future performance.
The value of your investment and any income from it may
go down as well as up and you may not get back the amount
invested. This is because the share price is determined by
the changing conditions in the relevant stock markets in
which the Company invests and by the supply and demand
for the Company’s shares. As the shares in an investment
trust are traded on a stock market, the share price will
fluctuate in accordance with the supply and demand and
may not reflect the underlying net asset value of the shares;
where the share price is less than the underlying value of the
assets, the difference is known as the ‘discount’. For these
reasons investors may not get back the original amount
invested. Although the Company’s shares are denominated
in Pound Sterling, it may invest in stocks and shares which
are denominated in currencies other than Pound Sterling and
to the extent they do so, they may be affected by movements
in exchange rates. As a result the value of your investment
may rise or fall with movements in exchange rates. Investors
should note that tax rates and reliefs may change at any time
in the future. The value of ISA tax advantages will depend on
personal circumstances. The favourable tax treatments of
ISAs may not be maintained.
How to Invest
Job No: 101568 Proof Event: 22 Black Line Level: 4 Park Communications Ltd Alpine Way London E6 6LA
Customer: BlackRock Project Title: Frontiers Annual Rpt 2025 T: 0207 055 6500 F: 020 7055 6600
BlackRock Frontiers Investment Trust plc Annual Report and Financial Statements 30 September 2025
www.blackrock.com/uk/brfi