BlackRock Frontiers Investment Trust Plc - Half-year Report

BlackRock Frontiers Investment Trust plc

(LEI: 5493003K5E043LHLO706)

HALF YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 MARCH 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 British Pound Sterling. The British Pound Sterling amounts for performance returns shown below are presented for convenience. The difference in performance returns measured in US Dollars and in British Pound Sterling reflects the change in the value of British Pound Sterling versus the US Dollar over the period.

As at 31 March 2025 As at 30 September 2024 US DollarNet assets (US$’000)1395,700 406,243 Net asset value per ordinary share (cents)209.07 214.57 Ordinary share price (mid-market) (cents)2189.74 194.50 ------------------------------British Pound SterlingNet assets (£’000)1,2306,566 302,850 Net asset value per ordinary share (pence)2161.98 159.96 Ordinary share price (mid-market) (pence)147.00 145.00 Discount39.2% 9.4% ==================PerformanceFor the six months ended 31 March 2025 % For the year ended 30 September 2024 %   Since inception4 % US DollarNet asset value per share (with dividends reinvested)3+0.3 +16.5 +133.5 Benchmark Index5,6-2.5 +15.7 +60.4 MSCI Frontier Markets Index6+6.7 +15.1 +63.0 MSCI Emerging Markets Index6-5.3 +26.1 +40.1 Ordinary share price (with dividends reinvested)3+0.5 +15.8 +110.8 ---------------------------------------------British Pound SterlingNet asset value per share (with dividends reinvested)3+4.2 +6.0 +181.0 Benchmark Index5,6+1.3 +5.3 +92.2 MSCI Frontier Markets Index6+10.9 +4.7 +96.9 MSCI Emerging Markets Index6-1.6 +14.7 +69.2 Ordinary share price (with dividends reinvested)3+4.4 +5.4 +153.3 ===========================

1     The change in net assets reflects dividends paid and portfolio movements during the period.

2     Based on an exchange rate of US$1.2908 to £1 at 31 March 2025 and US$1.3414 to £1 at 30 September 2024.

3     Alternative Performance Measures, see Glossary in the half yearly report and financial statements.

4     The Company was incorporated on 15 October 2010 and its shares were admitted to trading on the London Stock Exchange on 17 December 2010.

5     With effect from 1 April 2018, the Benchmark Index changed to the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index. Prior to 1 April 2018, the Benchmark Index was the MSCI Frontier Markets Index. The performance returns of the Benchmark Index 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.

Chair’s statement

Dear Shareholder,I am pleased to present the Company’s Half Yearly Financial Report for the six months to 31 March 2025.

Period highlights

-        NAV total return of +0.3%, ahead of the Benchmark Index return of -2.5% (in US Dollar terms with dividends reinvested);

-        Share price total return of +0.5% (in US Dollar terms with dividends reinvested);

-        Share price total return of +4.4% (in British Pound Sterling terms with dividends reinvested);

-        Declared interim dividend of 3.65 cents per share; and

-        Yield of 5.1% (based on the share price as at 31 March 2025, interim dividend for 2025 and final dividend for 2024).

Performance and overviewThe portfolio managers’ unique strategy and investment process have once again enabled the Company to perform well during the period, comfortably beating our Benchmark Index. This means the Company has outperformed its benchmark in five of the past six six-month periods. The portfolio managers’ ability to identify and expose the portfolio to exciting and uncorrelated ideas is, we believe, a key competitive advantage and differentiator.

During the six months to 31 March 2025, the Company achieved a NAV total return in US Dollars of +0.3%, outperforming its Benchmark Index which returned -2.5%. Over the same period, the Company’s share price total return in US Dollar terms with dividends reinvested was a similar +0.5%, reflecting a stable relationship between the Company’s NAV and share price. Since inception in December 2010, the Company’s NAV has returned +133.5%, compared with +60.4% for its Benchmark Index. For reference, the MSCI Emerging Markets Index and the MSCI Frontier Markets Index have returned +40.1% and +63.0%, respectively. As well as outperforming these indices by a significant margin, the Company’s NAV has also materially outperformed the AIC Global Emerging Markets peer group, which has returned approximately 80.4% since the Company’s inception (all percentages in US Dollar terms with dividends reinvested).

Subsequent to the end of the period and, as at 23 May 2025, the NAV per share of the Company of 219.77 cents has increased by 5.1%. For comparison, the Company’s Benchmark Index has increased by 4.4%.

As you will read in the Investment Manager’s Report which follows, our portfolio managers describe an improving macroeconomic backdrop for many countries across Frontier Markets. The implementation of more orthodox fiscal policy, relatively low interest rates and greater political stability, are combining to provide a fertile environment for growth, in sharp contrast to the turmoil provoked by President Trump’s unpredictable foreign policy throughout much of the world. The implementation of reciprocal tariffs by the US on its key trade partners China, Canada, Mexico and the EU resulted in significant equity market volatility, a sell-off of US treasuries and associated concerns about the resilience of the US Dollar as a reserve currency. Investors sought safe haven assets such as gold and reduced their exposure to US equities. Although a trade truce with China appears to have been reached, the upheaval caused may have longer-term impact as companies seek to de-risk their supply chains. By contrast, the portfolio is exposed to a broad range of fast-growing companies across Latin America, Central Eastern Europe, the Middle East and the ASEAN region and our portfolio managers continue to add exposure selectively where they see the greatest opportunity, evolving the portfolio judiciously through economic and market cycles.

We believe exposure to an opportunity set within which uncorrelated markets offer strong growth potential against an ever more challenging macroeconomic backdrop globally, continues to represent a compelling investment opportunity. In addition, the Company provides shareholders with an attractive yield. At the time of writing the Company’s yield is 4.6%, the highest in our AIC Global Emerging Markets peer group.

Our portfolio managers provide a detailed description of the key contributors to and detractors from performance during the period, portfolio activity and their views on the outlook for the second half of the financial year in their report which follows.

Revenue return and dividendsThe Company’s revenue return per share for the six months ended 31 March 2025 amounted to 1.90 cents (six months ended 31 March 2024: 3.30 cents) a decrease of 42.4% over the prior year interim period. This decline is primarily due to timing, with many dividend payments from portfolio companies being made in April instead of March this year. Hence revenue per share for the seven months to 30 April 2025 amounted to 4.99 cents per share compared to 4.03 cents per share for the seven months to 30 April 2024, an uplift of 23.8%.

Recognising the importance of yield to shareholders and the significant uplift in dividend income in April 2025, the Board is pleased to declare an interim dividend of 3.65 cents per share, an increase of 4.3% compared to the 2024 interim dividend of 3.50 cents per share. The interim dividend is payable on 24 June 2025 to shareholders on the Company’s register on 6 June 2025. The shares will go ex-dividend on 5 June 2025.

During the period, the final dividend of 6.00 cents per share for the year ended 30 September 2024, which was declared on 5 December 2024, was paid to shareholders on 14 February 2025.

Fees and chargesAs a result of the outperformance of the Benchmark Index during the period as at 31 March 2025 a performance fee of US$1,627,000 has been accrued but not paid. Should this outperformance continue to the end of the financial year, the Investment Manager will earn a performance fee.

During the period, the Board conducted a comprehensive review of the Company’s investment management and performance fee arrangements, which included seeking a formal opinion on all aspects of the fee structure from an independent third party.

As previously announced, a tiered fee structure has been introduced.  With effect from 1 October 2024, our management fee of 1.1% per annum is levied on the Company’s net assets up to US$650 million, reducing to 1% per annum on net assets above this amount. The Board believes the current fee structure is appropriate and will continue to keep the Company's costs and charges under regular review. Further details of the Company’s costs and charges can be found in note 4 below and in the Glossary in the half yearly report and financial statements.

Share capitalFor the period under review, the Company’s ordinary shares traded at an average discount to NAV of -8.1%, and this had widened to -9.2% on a cum-income basis at 31 March 2025. By comparison, the weighted average discount of the AIC Global Emerging Markets peer group during the period under review was -8.47%.

The Directors have the authority to buy back shares in the market equivalent to 14.99% of the Company’s issued share capital and also to issue new shares equivalent to 10% of the Company’s issued share capital (excluding any shares held in treasury).

The Directors believe that it is in shareholders’ interests that the Company’s share price does not trade at a significant or volatile discount or premium to its underlying NAV. Accordingly, the Directors, in conjunction with the Company’s broker, monitor the relationship between the share price and NAV closely and will consider the issue of ordinary shares at a premium or repurchase at a discount to help balance demand and supply in the market if they believe it is in shareholders’ interests to do so. In determining the merits, the Directors review a range of factors, including the ongoing attractiveness of the investment offering, the prevailing market conditions and the discount level in absolute terms and relative to that of the peer group. Based on the Directors’ assessment of the reasons behind the Company’s discount and its lack of volatility, it was only considered necessary to buy back 55,500 shares. The shares were repurchased for a total consideration of US$107,000 during the six months to 31 March 2025. The Board continues to evaluate other levers by which it can stimulate demand for the Company’s shares. It is currently undertaking a full-scale review of its marketing and communications strategy with the help of external advisors to ensure that the attractions of the Company are conveyed as effectively and widely as possible.

As at 23 May 2025, the discount stood at -4.19% (compared to a weighted average discount for the peer group of -4.88%). This tightening reflects a combination of favourable currency movements between the US Dollar and Sterling during the period and the natural pull to NAV ahead of the Company’s five-yearly exit opportunity as discussed below.

Periodic opportunity for the return of capitalWhen the Company was launched in late 2010, the Board made a commitment that before the Company’s fifth AGM and at five-yearly intervals thereafter, it would formulate and submit to shareholders proposals to provide them with an opportunity to realise the value of their ordinary shares at the applicable NAV per ordinary share less costs. This would usually be effected by way of a 100% Tender Offer as was the case in 2021 when this last took place. The Directors believe that shareholders value the five yearly exit opportunity and therefore intend to continue to provide it at five yearly intervals, in line with the investment horizon of the underlying strategy. The next event will take place around the time of the Company’s AGM in February 2026. Detailed proposals will be issued to shareholders by way of a shareholder Circular in early 2026.

GearingOne 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 generated leverage in the portfolio through its contracts for difference (CFD) exposure during the period. As at 31 March 2025, net gearing stood at 14.3%, compared to 4.0% at 30 September 2024, reflecting our portfolio managers’ positive views on the outlook and opportunities in Frontier markets.

Board compositionAs at 31 March 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. Following due consideration, the Board has commenced a search and selection process to identify a successor to our audit chair, Stephen White, who, following nine years of diligent service on the Board, will step down at the conclusion of the AGM in February 2026. The Board will announce the appointment of a new non-executive Director in the coming months. In order to facilitate an orderly transition, there may be a short period of overlap as Stephen hands over the leadership of the Company’s Audit & Management Engagement Committee, an important and complex role which he has discharged with great skill during his tenure.

The Directors submit themselves for re-election annually and therefore all Directors will stand for either election or re-election at the forthcoming AGM. The Board is compliant with the recommendations of the Parker Review and the FTSE Women Leaders Review and, at the date of this report, we have a 60:40 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 in our annual report.

Portfolio Management ArrangementsFollowing changes to BlackRock’s Global Emerging Markets team structure, which were designed to enhance investment focus and alignment of expertise and portfolio management responsibilities, Sudaif Niaz stepped down as Co-Portfolio Manager on 16 April 2025. No changes are being made to the way the Company’s portfolio is managed on a day-to-day basis as a result of this change. The Board would like to thank Sudaif for his contribution to the management of the Company’s investment portfolio and wishes him well.

OutlookMarkets are currently grappling with heightened geopolitical volatility and unprecedented macroeconomic shifts that have global ramifications. The impact of yoyo-ing US tariffs on global trading relationships is a key concern for markets, with economists downgrading growth forecasts and interest rate expectations turning more dovish. The outcome of the tariff negotiations is still unknown. Since ‘Liberation Day’ on 2 April, the US dollar has been notably weak, but this could reverse if the Trump administration’s policies exert upward pressure on US inflation, which may have a knock-on negative impact on emerging markets. The outcome of Trump’s unpredictable foreign policy is highly uncertain and our portfolio managers expect to see continued volatility as we move through the second half of the financial year. Although not immune to the geopolitical turmoil created by Trump’s desire to reshape global trade relationships, our portfolio managers believe the markets in which they invest will continue to be driven to a significant extent by local factors and by domestic investor flows, thereby potentially offering investors diversification benefits. In addition, several of our markets may become beneficiaries of the rewiring of global supply chains, in particular the shifting of manufacturing away from China as existing US/China tensions are exacerbated by the imposition of trade tariffs and inevitable retaliation by trade partners. Indeed, our unique mandate should become increasingly attractive to investors seeking diversified ex-China exposure as they finally pivot away from the US.

Another positive trend within our investment universe is the marked increase in intra-emerging markets trade.  Whilst the developed markets are concerned with the impact of the trade tensions and protectionist policy, the emerging markets have recently seen an increase in intra-country trade, in Asia in particular.  For example, countries such as Vietnam and Indonesia, to which our portfolio is well exposed, have benefited from their ability to act as regional trade hubs.  This trend is set to continue, driven by increasing domestic demand, regional free trade agreements, and robust economic growth.

The frontier markets comprise a large and diverse range of countries which are under-researched, generally have relatively low levels of foreign debt, higher yields and superior demographics compared with more developed economies. In many cases they trade at significant valuation discounts relative to both developed markets and their own history. Our portfolio managers view this as a fertile hunting ground and one which presents exceptional opportunity. Through BlackRock’s scale and reach, they are afforded unrivalled access and have the expertise and resources to effectively navigate these markets, seeking out the best and brightest companies this dynamic region can offer.

Whilst we may be in uncharted territory with respect to global trade and the increasing polarisation of the major economic powers, our frontier universe continues to provide shareholders with capital growth through a diversified portfolio of fast growing, exciting companies that are uncorrelated to both each other and the developed markets. In an environment of uncertainty and instability, the Board believes our unique offering represents an ever more compelling addition to the discerning investor’s portfolio.

KATRINA HARTChair28 May 2025

Investment Manager’s report

Market reviewOver the past six months, the global economic landscape has been shaped by persistent geopolitical uncertainty, impacting both developed and emerging markets. In our view, the re-election of President Donald Trump has further entrenched a narrative of a world increasingly divided between the East and the West. Against this backdrop, the countries in which we invest—those navigating a political middle ground—continue to stand out as well-positioned.

Beyond the global headlines, several encouraging developments have emerged within our investment universe, many of which have received limited international attention. Several smaller economies, such as Pakistan, Bangladesh and Turkey have made notable strides in political and economic reform, embracing a more orthodox approach to fiscal and monetary policy. These moves have enhanced their appeal to investors. Meanwhile, the Gulf Co-operation Council (GCC) region has continued to experience population growth and attract new business, capturing a greater share of global financial flows. Following the end of the reporting period, we observed a significant increase in tensions between India and Pakistan, triggered by a terrorist attack in Pahalgam, Indian-administered Kashmir. Although the region has been embroiled in conflict for the past 40 years, this recent flare-up marked a notable escalation in hostilities between the two nations. To date the ceasefire agreement agreed on May 10th has held and there has been a de-escalation of tensions.

Our investment universe remains characterised by low correlations—both among its constituent countries and with more developed markets. Despite this, it continues to trade at significantly lower valuations than both developed and broader emerging markets, with the current discount among the widest since the Company’s inception. As ongoing volatility across the developed world appears all but certain in 2025, the case for a diversified asset class like ours becomes increasingly compelling.

In terms of performance, a variety of different markets within our investment universe have done well. Pakistan (+43.9%) was the best-performing market in our investment universe over the period, driven by sharp interest rate cuts and continued inflow of International Monetary Fund (IMF) loans as the government takes steps to reduce its fiscal deficit, including tax reform. This has supported a recovery in activity, visible in cement dispatches and car sales.

Across Asia, Sri Lanka (+33.7%) performed well. Similarly to Pakistan, the government enacted an economic reform agenda supported by the IMF. On the negative side, performance in Association of South East Asian (ASEAN) markets faced challenges as the region grappled with political changes at home, while the re-election of President Donald Trump made the external environment more difficult. Indonesia (-25.6%) lagged due to concerns about the extent to which the policy direction under the new government will remain market-friendly. Thailand (-22.4%) has continued to experience political instability since the banning of the largest opposition party last August. Vietnam (-3.3%) has yet to see growth re-accelerate following the government-led corruption clampdown of the past few years.

In Europe, performance was characterised by similar levels of dispersion. The Czech Republic (+29.9%) was the best-performing market in the region amid interest rate cuts and increasing domestic demand supported by a rebound in real wage growth. Additionally, the market is typically defensive within the region. The Central and Eastern European countries also experienced a significant uplift from the talk of a potential Russia-Ukraine ceasefire, with Poland (+16.5%) seeing an uptick in consumer confidence. By contrast, Turkey (-11.9%) lagged the rest of the region as Turkish equities fell on the day the police detained the mayor of Istanbul, Ekrem İmamoğlu, the primary opposition candidate expected in the 2028 presidential elections.

The Middle East posted solid returns as Financials and Real Estate companies in Kuwait (+12.7%) and the United Arab Emirates (UAE) (+14.3%) benefitted from increased foreign investment, with the UAE being one of the biggest beneficiaries of rising geopolitical tensions.

In Latin America, country performance showed notable variation. One standout performer was Colombia (+33.1%) where the market continued its positive momentum, underpinned by expectations of higher real incomes and lower borrowing costs. Although Argentina posted record returns in 2024, its performance has since moderated as concerns remain on the size of the foreign exchange imbalance.

From the roadIn times of elevated market volatility, travelling and visiting the companies in our investment universe becomes even more important to ensure that we accurately gauge the sentiment on the ground and understand how our portfolio companies are adapting to a world we believe will be characterised by increasing uncertainty going forward. Over the past six months, we have visited a number of countries within our universe. These visits provide valuable insights that help us make informed investment decisions and ultimately deliver alpha for our clients.

One market that has experienced elevated volatility over the period is Turkey. We travelled to the country in March, following the arrest of Istanbul’s mayor and main opposition leader. The arrest triggered a sharp sell-off due to fears that Turkey was moving in a more autocratic direction. However, our on-the-ground checks suggest that we haven’t seen a meaningful change, and we walked away fairly positive about the market prospects over a two-year period. The locals’ confidence in continued economic orthodoxy by the current regime, evidenced by the limited dollarisation following the recent political event, keeps us optimistic. Valuations are cheap, currently at low single-digit price to earnings for many of the banks, making this a market worth paying close attention to.

Another country we visited was Georgia. We travelled there in the weeks leading up to the general election in October 2024, noting a certain degree of polarisation within the population. We believe the elections were seen by many as a choice between aligning more closely with Russia or moving towards greater integration with the European Union, but the reality on the ground is more nuanced. While the political situation in the country continues to evolve, the economic backdrop remains solid. Representatives from government bodies spoke about strong exports and an increase in tourism. The country has also seen an influx of migrants, particularly from Ukraine and Russia, which has helped boost domestic consumption and gross domestic product (GDP) growth. We note that there are several interesting bottom-up stock ideas, particularly in the Financials space. We believe the market should perform well in 2025, supported by strong GDP growth, a benign inflation picture and attractive real rates.

We recently visited Poland and met with several companies. Poland has notably ramped up its defense spending, allocating 4.7% of GDP for 2025 — a move expected to result in a sizeable fiscal deficit for the year. Despite this, the country continues to offer higher interest rates and stronger economic growth than many of its EU neighbours. This dynamic has historically attracted substantial capital flows from the rest of Europe. Looking ahead, we anticipate that both fiscal spending and European capital inflows will remain elevated, supporting our view that the Polish market looks relatively attractive.

We also visited the UAE, a market the team has been investing in for almost twenty years. The focus for our recent travels was to assess whether the significant growth witnessed in the real estate sector is vulnerable to turning into a bubble. However, we returned with the view that the UAE is still likely far from a cyclical peak as population growth remains strong. Dubai, in particular, has done well to position itself as a global hub, not just a regional one, with attractive incentives for new businesses.

Portfolio reviewIn the six months to 31 March 2025, the Company’s NAV returned +0.3%, outperforming its Benchmark Index which returned -2.5%. Over the same period the MSCI Emerging Markets Index fell by -5.3% and the MSCI Frontier Markets Index rose by +6.7%. Since inception, the Company’s NAV has returned +133.5%, compared with +60.4% for its Benchmark Index. For reference, the MSCI Emerging Markets Index and the MSCI Frontier Markets Index returned +40.1% and +63.0%, respectively (all percentages in US Dollar terms with dividends reinvested).

Contributing stocks over the past six months were from a diverse set of markets. Emaar Properties (+52.9%), the UAE-based property developer, was the biggest contributor to relative returns over the period. The stock price rose due to strong third quarter 2024 results and a higher-than-expected dividend announcement later in the year. An off-benchmark position in Lucky Cement (+67.8%), a Pakistani conglomerate involved in local cement production, chemicals, passenger vehicle assembly, power generation and international cement operations in the Middle East and Africa, also performed well. The stock benefitted from expectations of improved activity as interest rates significantly decreased in Pakistan. Our position in DigiPlus Interactive Corp (+78.8%), a Philippines-based gaming conglomerate, contributed to returns, driven by strong activity indicators and plans to expand into other gaming verticals and new markets. Additionally, a collection of names exposed to a potential resolution in the war between Ukraine and Russia performed well, including Bank of Georgia (+43.2%), Hungarian OTP Bank (+27.8%) and Polish clothing retailer LPP (+14.6%).

On the flipside, select ASEAN exposures detracted from performance. Indonesia and the Philippines saw their stock markets fall by -25.6% and -14.4%, respectively. The biggest detractor over the period was Bloomberry (-64.0%), a Philippines-based resort and casino operator. In addition to earnings being cannibalised by new physical and virtual gaming capacity, the stock traded down with the broader Philippine market. Ciputra Development (-48.7%) and Ayala Land (-37.5%), property developers in Indonesia and Philippines, respectively, also detracted from performance; in Indonesia, news flow on fiscal policy remained precarious, while the Philippines property market is still recovering from excess capacity. Despite these challenges, we maintain our conviction in these stocks over the medium term. Elsewhere, Information Technology (IT) services company EPAM Systems (-15.3%) also detracted. The stock sold off sharply following weaker-than-expected forecasted earnings per share and revenue growth for the first quarter of 2025.

Over the past six months, we made some changes to the portfolio. We increased our exposure to Turkey, reflecting our view of the positive long-term outlook for the country. We expressed this optimism primarily through initiating a position in Turkish bank Akbank. Additionally, we began rebuilding our Eastern European exposure at the end of 2024. One example is LPP in Poland, which we believe has the right ingredients to expand its footprint across the region. Another example is Raiffeisen Bank International, which has a significant portion of its profitability stuck in Russia that was effectively written off to zero by the market following Russia’s invasion of Ukraine. Any steps towards an amicable resolution here should be significantly positive for the bank.

Elsewhere, we rotated our bank exposure within Indonesia from Bank Central Asia to Bank Mandiri due to the latter’s attractive valuation and a sequentially better liquidity environment for the banking sector. We also initiated a position in technology services company Endava, reflecting our positive view on the IT services sector and its potential as a beneficiary of the global artificial intelligence capital expenditure spend. The stock is trading at an attractive valuation and is expected to be further supported by a US$100m buyback expected throughout the year.

OutlookThe six-month period leading up to 31 March 2025 has reinforced our view that accelerated geopolitical polarisation will lead to increased competition among the world’s largest economies. This evolving geopolitical environment signifies a period of potential market volatility, as evidenced by the tariff-induced market turmoil experienced in April, but also presents unique opportunities across a variety of sectors, industries and geographies within our investment universe.

We think that investing in markets that are largely underrepresented in global portfolios and receive less sell-side attention offers significant alpha potential. These frontier and smaller emerging markets generally trade at lower valuations compared to developed markets and display lower correlation among themselves. This provides an opportunity to diversify risk and reduce overall volatility, something which we believe to be particularly important in times of elevated market uncertainty.

In summary, we remain positive on the outlook for small emerging and frontier markets compared to developed markets. We find significant value in currencies and equity markets across our opportunity set. Our investment universe, both in absolute and relative terms, remains under-researched and we believe this should enable compelling alpha opportunities.

SAM VECHT AND EMILY FLETCHERBLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED28 May 2025

Ten largest investments1 as at 31 March 2025

Together, the Company’s ten largest investments represented 41.9% of the Company’s portfolio as at 31 March 2025 (30 September 2024: 35.0%)

1 ▲ Al Rajhi Bank2 (2024: 22nd)Financials (Saudi Arabia)Portfolio value: US$22,973,000Percentage of net assets: 5.8% (2024: 2.1%)

Al Rajhi Bank is a major financial institution in Saudi Arabia providing a wide range of banking and investment services. It is known for its strong presence in the Islamic banking sector.

2 ► Emaar Properties (2024: 2nd)Real Estate (United Arab Emirates)Portfolio value: US$18,729,000Percentage of net assets: 4.7% (2024: 4.4%)

Emaar Properties is an Emirati real estate developer. The group is involved in property investment, development, shopping malls, retail centres, hospitality, and property management services and serves customers in the UAE.

3 ▲ OTP Bank (2024: 4th)Financials (Hungary)Portfolio value: US$18,441,000Percentage of net assets: 4.7% (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. The bank is known for its innovative digital banking solutions and extensive network of branches and ATMs across Hungary.

4 ▲ LPP (2024: 46th)Consumer Discretionary (Poland)Portfolio value: US$18,199,000Percentage of net assets: 4.6% (2024: 0.9%)

LPP is a Polish clothing retailer. The company operates a large network of stores across Europe and is recognised for its dynamic growth and market presence.

5 ▲ Bank Mandiri (2024: n/a)Financials (Indonesia)Portfolio value: US$16,613,000Percentage of net assets: 4.1% (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.

6 ▲ PZU (2024: 20th)Financials (Poland)Portfolio value: US$14,899,000Percentage of net assets: 3.8% (2024: 2.3%)

Powszechny Zaklad Ubezpieczen, commonly known as PZU, is an insurance company in Poland. It offers a wide range of insurance products including life, health, property, and casualty insurance.

7 ► Etihad Etisalat2 (2024: 7th)Communication Services (Saudi Arabia)Portfolio value: US$14,861,000Percentage of net assets: 3.8% (2024: 3.1%)

Etihad Etisalat is also known as Mobily and is a Saudi Arabia-based telecommunications operator. The group manages, installs, and operates telephone networks, terminals, and telecommunication unit

systems. It also  sells and maintains mobile phones and telecommunication units in Saudi Arabia.

8 ▼ FPT2 (2024: 5th)Information Technology (Vietnam)Portfolio value: US$14,659,000Percentage of net assets: 3.7% (2024: 3.3%)

FPT is Vietnam's largest technology services company with a focus on information and communications technologies. The core business focuses on consulting, providing and deploying technology and telecommunications services and solutions.

9 ▲ Eldorado Gold (2024: 10th)Materials (Turkey)Portfolio value: US$13,480,000Percentage of net assets: 3.4% (2024: 2.5%)

Eldorado Gold is a Canadian 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.

10 ▼ CP All (2024: 6th)Consumer Staples (Thailand)Portfolio value: US$13,028,000Percentage of net assets: 3.3% (2024: 3.1%)

CP All is a convenience store operator based in Thailand. It also operates wholesale business, retail business and mall, payment centres and related supporting services. The convenience stores are operated under the 7-Eleven trademark.

1     Gross market exposure as a % of net assets.

2     Exposure gained via contracts for difference (CFDs) only.

Percentages shown are the share of net assets.

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.

Portfolio analysis as at 31 March 2025

Country allocation: Absolute weights (Gross market exposure as a % of net assets)1

Saudi Arabia18.1 Indonesia11.3 United Arab Emirates10.9 Poland8.4 Turkey7.8 Hungary7.0 Kazakhstan6.5 Thailand5.9 Philippines5.6 Pakistan4.9 Global4.9 Greece4.8 Vietnam3.7 Czech Republic3.3 Kenya3.2 Bangladesh3.1 Malaysia2.8 Georgia2.4 Chile2.2 Singapore1.8 Egypt1.7 Romania1.7 Cambodia0.9

Country allocation relative to the Benchmark Index (%)1

Kazakhstan5.8Hungary5.3Global4.9Pakistan4.4Turkey4.3Indonesia3.8Kenya2.9Bangladesh2.9Philippines2.6United Arab Emirates2.5Georgia2.4Poland2.4Czech Republic2.3Singapore1.8Greece1.4Egypt1.3Vietnam1.2Cambodia0.9Romania0.5Lithuania -0.1Estonia-0.1Tunisia-0.1Sri Lanka-0.1Jordan-0.2Mauritius-0.2Luxembourg-0.2Bahrain-0.2Oman-0.4Croatia-0.4Chile-0.6Other-0.7Slovenia-0.7Colombia-0.7Thailand-1.2Morocco-1.5Peru-1.8Qatar-4.8Kuwait-4.9Malaysia-5.3Saudi Arabia-6.5

Sector allocation: Absolute weights (Gross market exposure as a % of net assets)1

%Financials47.4Industrials12.6Real Estate12.2Consumer Discretionary10.9Materials9.8Communication Services9.0Information Technology7.1Consumer Staples5.5Health Care4.8Utilities2.0Energy1.6

Sector allocation relative to the Benchmark Index (%)1

%Real Estate 7.2Consumer Discretionary7.2Industrials6.8Information Technology6.0Health Care2.0Materials  1.9Communication Services1.0Consumer Staples 0.3Financials-0.2Utilities-3.1Energy-6.2

1        Includes exposure gained through equity positions and long and short CFD positions.

Sources: BlackRock and LSEG Datastream.

INVESTMENTS AS AT 31 MARCH 2025

EQUITY PORTFOLIO BY COUNTRY OF EXPOSURE

CompanyPrincipal country of operation   Sector  Fair value1 US$’000 Gross market exposure as a % of net assets3Bank MandiriIndonesia Financials 16,613 4.1 Astra InternationalIndonesia Industrials 8,085 2.0 Ciputra DevelopmentIndonesia Real Estate 6,737 1.7 Telkom Indonesia PerseroIndonesia Communication Services 5,043 1.3 Bank SyariahIndonesia Financials 4,769 1.2 Mitra AdiperkasaIndonesia Consumer Discretionary 3,835 1.0 --------------- --------------- 45,08211.3==================Emaar PropertiesUnited Arab Emirates Real Estate 18,729 4.7 Air ArabiaUnited Arab Emirates Industrials 7,325 1.9 Emaar DevelopmentUnited Arab Emirates Real Estate 7,045 1.8 Aldar PropertiesUnited Arab Emirates Real Estate 3,136 0.8 --------------- --------------- 36,2359.2==================LPPPoland Consumer Discretionary 18,199 4.6 PZUPoland Financials 14,899 3.8 --------------- --------------- 33,0988.4==================Eldorado GoldTurkey Materials 13,480 3.4 Türkiye İş BankasıTurkey Financials 8,979 2.3 AkbankTurkey Financials 8,120 2.1 --------------- --------------- 30,5797.8==================OTP BankHungary Financials 18,441 4.7 Wizz Air HoldingsHungary Industrials 7,064 1.8 --------------- --------------- 25,5056.5==================JSC KaspiKazakhstan Financials 12,474 3.2 Halyk Savings BankKazakhstan Financials 6,680 1.7 KazatompromKazakhstan Energy 6,285 1.6 --------------- --------------- 25,4396.5==================Ayala LandPhilippines Real Estate 7,172 1.8 DigiPlus Interactive CorpPhilippines Consumer Discretionary 6,311 1.6 International Container Terminal ServicesPhilippines Industrials 5,814 1.5 BloomberryPhilippines Consumer Discretionary 2,947 0.7 --------------- --------------- 22,2445.6==================Lucky CementPakistan Materials 11,111 2.8 MCB BankPakistan Financials 8,476 2.1 --------------- --------------- 19,5874.9==================EPAM SystemsGlobal Information Technology 9,933 2.5 Raiffeisen Bank InternationalGlobal Financials 5,984 1.5 EndavaGlobal Information Technology 3,666 0.9 --------------- --------------- 19,5834.9========= ========= Athens International AirportGreece Industrials 10,853 2.7 Hellenic Telecommunications OrganisationGreece Communication Services 8,496 2.1 --------------- --------------- 19,3494.8==================CP AllThailand Consumer Staples 13,028 3.3 AMATA CorporationThailand Real Estate 5,353 1.4 --------------- --------------- 18,3814.7==================Kenya Commercial BankKenya Financials 6,385 1.6 Equity GroupKenya Financials 6,374 1.6 --------------- --------------- 12,7593.2==================BRAC BankBangladesh Financials 6,867 1.7 Square PharmaceuticalsBangladesh Health Care 5,647 1.4 --------------- --------------- 12,5143.1==================Frontken CorpMalaysia Industrials 8,803 2.2 Top Glove CorporationMalaysia Health Care 2,527 0.6 --------------- --------------- 11,3302.8==================Moneta Money BankCzech Republic Financials 9,889 2.5 --------------- --------------- 9,8892.5==================Bank Of GeorgiaGeorgia Financials 9,347 2.4 --------------- --------------- 9,3472.4==================Cervecerias UnidasChile Consumer Staples 8,603 2.2 --------------- --------------- 8,6032.2==================Sea LtdSingapore Communication Services 7,224 1.8 --------------- --------------- 7,2241.8==================Banca TransilvaniaRomania Financials 6,638 1.7 --------------- --------------- 6,6381.7==================NagaCorpCambodia Consumer Discretionary 3,450 0.9 --------------- --------------- 3,4500.9==================Commercial International BankEgypt Financials 2,629 0.7 --------------- --------------- 2,6290.7==================Equity investments379,46595.9==================BlackRock’s Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund (Cash Fund)120,688 5.2 ========= ========= Total equity investments (including Cash Fund)400,153101.1==================

1     See note 1 below.

CFD PORTFOLIO BY COUNTRY OF EXPOSURE

CompanyPrincipal country of operation   Sector  Fair value1 US$’000 Gross market exposure3 US$’000 Gross market exposure as a % of net assets3Long positionsAl Rajhi BankSaudi Arabia Financials 22,973 5.8 Etihad EtisalatSaudi Arabia Communication Services 14,861 3.8 Americana Restaurants InternationalSaudi Arabia Consumer Discretionary 8,161 2.1 Yanbu National PetrochemicalSaudi Arabia Materials 7,585 1.9 Mouwasat Medical ServicesSaudi Arabia Health Care 6,793 1.7 Derayah FinancialSaudi Arabia Financials 2,111 0.5 --------------- --------------- 62,48415.8==================FPTVietnam Information Technology 14,659 3.7 --------------- --------------- 14,6593.7==================BorougeUnited Arab Emirates Materials 6,537 1.7 ------------------------------6,5371.7==================Commercial International BankEgypt Financials 3,906 1.0 ------------------------------3,9061.0==================Wizz Air HoldingsHungary Industrials 1,990 0.5 ------------------------------1,9900.5==================Total long CFD positions1,24489,57622.7==================Total short CFD positions(1,765)(16,861)(4.3)==================Total CFD portfolio(521)72,71518.4========= ========= 

FAIR VALUE AND GROSS MARKET EXPOSURE OF INVESTMENTS AS AT 31 MARCH 2025

Portfolio Fair value3 US$’000 Gross market exposure4,5 US$’000 Gross market exposure as a % of net assets531 March 2025 31 March 2024 30 September 2024 Long equity investment positions (excluding BlackRock’s Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund)379,465 379,465 95.9 90.7 84.6 Long CFD positions1,244 89,576 22.7 29.7 23.3 Short CFD positions(1,765)(16,861)(4.3)(2.7)(3.9)---------------------------------------------------------------------------Subtotal of long and short investment positions378,944452,180114.3117.7104.0=============================================Cash Fund20,688 20,688 5.2 12.5 16.9 ---------------------------------------------------------------------------Total investment and derivatives399,632472,868119.5130.2120.9=============================================Cash and cash equivalents1,591 (71,645)(18.1)(27.4)(18.6)Other net current liabilities(5,504)(5,504)(1.4)(2.8)(2.3)Non-current liabilities(19)(19)0.0 0.0 0.0 ---------------------------------------------------------------------------Net assets395,700395,700100.0100.0100.0========= ========= ========= ========= ========= 

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 31 March 2025 was 22.8% and 14.3%, respectively (31 March 2024: 23.1% and 17.7% respectively; 30 September 2024: 11.8% and 4.0%, respectively). Gross and net gearing are Alternative Performance Measures, see Glossary in the half yearly report and financial statements.

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$88,332,000 at the time of purchase, and subsequent movements in market prices have resulted in unrealised gains on the long CFD positions of US$1,244,000 resulting in the value of the total long CFD market exposure to the underlying securities increasing to US$89,576,000 as at 31 March 2025. If the long positions had been closed on 31 March 2025, this would have resulted in a gain of US$1,244,000 for the Company.

–    The notional exposure of selling the securities gained via the short CFD positions would have been US$15,096,000 at the time of entering into the contracts, and subsequent movements in market prices have resulted in unrealised losses on the short CFD positions of US$1,765,000, resulting in the value of the total short CFD market exposure of these investments increasing to US$16,861,000 at 31 March 2025. If the short positions had been closed on 31 March 2025, this would have resulted in a loss of US$1,765,000 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.

Interim management report and responsibility statement

The Chair’s Statement and the Investment Manager’s Report above give details of the important events which have occurred during the period and their impact on the financial statements.

Principal risks and uncertaintiesA detailed explanation of the risks relating to the Company can be divided into various areas as follows:

-        Investment Performance Risk;

-        Income/Dividend Risk;

-        Legal and Regulatory Risk;

-        Counterparty Risk;

-        Operational Risk;

-        Political Risk;

-        Financial Risk; and

-        Market Risk.

The Board reported on the principal risks and uncertainties faced by the Company in the Annual Report and Financial Statements for the year ended 30 September 2024. A detailed explanation can be found in the Strategic Report on pages 38 to 42 and in note 17 on pages 103 to 116 of the Annual Report and Financial Statements, which are available on the Company’s website at: www.blackrock.com/uk/brfi.

Certain financial markets have been volatile during the financial period due primarily to continuing geo-political tensions arising from Russia’s invasion of Ukraine and the hostilities in the Middle East. The Company has no exposure to Russia, Ukraine, Israel or Palestine. The Board and the Investment Manager continue to monitor investment performance in line with the Company’s investment objectives.

In the view of the Board, other than those noted above, there have not been any material changes to the fundamental nature of these risks since the previous report and these principal risks and uncertainties, as summarised, are equally applicable to the remaining six months of the financial year as they were to the six months under review.

Going concernThe 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 May 2026, 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.

When the Company was launched in late 2010, the Board made a commitment that before the Company’s fifth AGM and at five yearly intervals thereafter, it would formulate and submit to shareholders proposals to provide them with an opportunity to realise the value of their ordinary shares at the prevailing NAV per ordinary share less applicable costs. The Board will once again put proposals to shareholders later this year. When this exit event last occurred in February 2021, the Company received elections to tender representing 21.5% of the shares in issue, with the vast majority of shareholders choosing to retain their investment. The Board has considered the Company’s more recent performance, its discount, the make up of the share register, and the unique and attractive nature of its offering. Following due consideration, it has determined, to the best of its ability given it is a future event, that the forthcoming exit opportunity does not represent a material uncertainty as it pertains to the going concern assessment.

Based on the above, the Board is satisfied that it is appropriate to continue to adopt the going concern basis in preparing the financial statements. The Company has a portfolio of investments which are considered to be readily realisable and is able to meet all of its liabilities from its assets and income generated from them. Ongoing charges (excluding performance fees, finance costs, direct transaction costs, custody transaction charges, VAT recovered, taxation, prior year expenses written back and certain non-recurring items) were approximately 1.41% of average daily net assets for the year ended 30 September 2024.

Related party disclosures and transactions with the AIFM and Investment ManagerBlackRock Fund Managers Limited (BFM) is the Company’s Alternative Investment Fund Manager (AIFM) with effect from 2 July 2014. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services to BlackRock Investment Management (UK) Limited (BIM (UK)). Both BFM and BIM (UK) are regarded as related parties under the Listing Rules. Details of the management and performance fees payable are set out in note 4 and note 14 below. The related party transactions with the Directors are set out in note 13 below.

Directors’ Responsibility StatementThe Disclosure Guidance and Transparency Rules (DTR) of the UK Listing Authority require the Directors to confirm their responsibilities in relation to the preparation and publication of the Interim Management Report and Financial Statements.

The Directors confirm to the best of their knowledge that:

-        the condensed set of financial statements contained within the Half Yearly Financial Report has been prepared in accordance with the UK-adopted International Accounting Standard 34 – Interim Financial Reporting; and

-        the Interim Management Report, together with the Chair’s Statement and Investment Manager’s Report, includes a fair review of the information required by 4.2.7R and 4.2.8R of the Financial Conduct Authority (FCA) Disclosure Guidance and Transparency Rules.

The Half Yearly Financial Report has been reviewed by the Company’s Auditors.

The Half Yearly Financial Report was approved by the Board on 28 May 2025 and the above Responsibility Statement was signed on its behalf by the Chair.

KATRINA HARTFOR AND ON BEHALF OF THE BOARD28 May 2025

STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 MARCH 2025

Six months ended31 March 2025(unaudited)Six months ended31 March 2024(unaudited)Year ended30 September 2024(audited)Notes Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Income from investments held at fair value through profit or loss3 4,937 – 4,937 7,334 – 7,334 20,656 – 20,656 Net income from contracts for difference3 146 – 146 785 – 785 2,425 – 2,425 Other income3 67 – 67 75 – 75 209 – 209 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total income5,150 – 5,150 8,194 – 8,194 23,290 – 23,290 ========= ========= ========= ========= ========= ========= ========= ========= ========= Net profit on investments held at fair value through profit or loss– 5,292 5,292 – 46,084 46,084 – 54,953 54,953 Net loss on foreign exchange– (172)(172)– (229)(229)– (1,197)(1,197)Net loss from derivatives– (4,296)(4,296)– (3,694)(3,694)– (7,902)(7,902)--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total5,150 824 5,974 8,194 42,161 50,355 23,290 45,854 69,144 ========= ========= ========= ========= ========= ========= ========= ========= ========= ExpensesInvestment management and performance fees4 (439)(3,382)(3,821)(412)(5,609)(6,021)(841)(6,873)(7,714)Other operating expenses5 (556)(49)(605)(500)(38)(538)(1,162)(92)(1,254)--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total operating expenses(995)(3,431)(4,426)(912)(5,647)(6,559)(2,003)(6,965)(8,968)========= ========= ========= ========= ========= ========= ========= ========= ========= Net profit/(loss) on ordinary activities before finance costs and taxation4,155 (2,607)1,548 7,282 36,514 43,796 21,287 38,889 60,176 Finance costs6 (5)(21)(26)(14)(55)(69)(23)(92)(115)--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Net profit/(loss) on ordinary activities before taxation4,150 (2,628)1,522 7,268 36,459 43,727 21,264 38,797 60,061 ========= ========= ========= ========= ========= ========= ========= ========= ========= Taxation (charge)/credit7 (559)(43)(602)(1,029)343 (686)(2,380)867 (1,513)--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Profit/(loss) for the period/year3,591 (2,671)920 6,239 36,802 43,041 18,884 39,664 58,548 ========= ========= ========= ========= ========= ========= ========= ========= ========= Earnings/(loss) per ordinary share (cents)9 1.90 (1.41)0.49 3.30 19.43 22.73 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 period. All income is attributable to the equity holders of the Company.

The Company does not have any other comprehensive income (31 March 2024: US$nil; 30 September 2024: US$nil). The net profit/(loss) for the period disclosed above represents the Company’s total comprehensive income.

STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2025

Note Called up share capital US$’000 Capital redemption reserve US$’000 Special reserve US$’000 Capital reserves US$’000 Revenue reserve US$’000 Total US$’000 For the six months ended 31 March 2025 (unaudited)At 30 September 20242,418 5,798 308,804 75,817 13,406 406,243 Total comprehensive (loss)/income :Net (loss)/profit for the period– – – (2,671)3,591 920 Transactions with owners, recorded directly to equity:Ordinary shares repurchased into treasury– – (106)– – (106)Share repurchase costs– – (1)– – (1)Dividends paid18 – – – – (11,356)(11,356)--------------- --------------- --------------- --------------- --------------- --------------- At 31 March 20252,418 5,798 308,697 73,146 5,641 395,700 ========= ========= ========= ========= ========= ========= For the six months ended 31 March 2024 (unaudited)At 30 September 20232,418 5,798 308,804 36,153 10,425 363,598 Total comprehensive income:Net profit for the period– – – 36,802 6,239 43,041 Transactions with owners, recorded directly to equity:Dividends paid28 – – – – (9,277)(9,277)--------------- --------------- --------------- --------------- --------------- --------------- At 31 March 20242,418 5,798 308,804 72,955 7,387 397,362 ========= ========= ========= ========= ========= ========= For the year ended 30 September 2024 (audited)At 30 September 20232,418 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 paid38 – – – – (15,903)(15,903)--------------- --------------- --------------- --------------- --------------- --------------- At 30 September 20242,418 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 14 February 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 14 February 2024.

3     Final dividend of 4.90 cents per share for the year ended 30 September 2023, declared on 30 November 2023 and paid on 14 February 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 11 below.

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025

Notes 31 March 2025 (unaudited) US$’000 31 March 2024 (unaudited) US$’000 30 September 2024 (audited) US$’000 Non current assetsInvestments held at fair value through profit or loss12 400,153 409,946 412,308 Current assetsCurrent tax asset713 404 803 Other receivables2,492 7,521 3,934 Derivative financial assets held at fair value through profit or loss – contracts for difference12 1,244 1,347 2,756 Cash and cash equivalents – cash at bank1,591 1,035 2,284 Cash collateral pledged with brokers3,952 7,729 1,305 --------------- --------------- --------------- Total current assets9,992 18,036 11,082 ========= ========= ========= Total assets410,145 427,982 423,390 ========= ========= ========= Current liabilitiesOther payables(11,941)(25,064)(12,667)Derivative financial liabilities held at fair value through profit or loss – contract for differences12 (1,765)(3,767)(1,561)Liability for cash collateral received(720)(1,770)(2,900)--------------- --------------- --------------- Total current liabilities(14,426)(30,601)(17,128)========= ========= ========= Total assets less current liabilities395,719 397,381 406,262 ========= ========= ========= Non current liabilitiesManagement shares of £1.00 each (one quarter paid up)(19)(19)(19)--------------- --------------- --------------- Net assets395,700 397,362 406,243 ========= ========= ========= Equity attributable to equity holdersCalled up share capital10 2,418 2,418 2,418 Capital redemption reserve5,798 5,798 5,798 Special reserve308,697 308,804 308,804 Capital reserves73,146 72,955 75,817 Revenue reserve5,641 7,387 13,406 --------------- --------------- --------------- Total equity395,700 397,362 406,243 ========= ========= ========= Net asset value per ordinary share (cents)9 209.07 209.88 214.57 ========= ========= ========= 

CASH FLOW STATEMENT FOR THE SIX MONTHS ENDED 31 MARCH 2025

31 March 2025 (unaudited) US$’000 31 March 2024 (unaudited) US$’000 30 September 2024 (audited) US$’000 Operating activitiesNet profit on ordinary activities before taxation11,522 43,727 60,061 Add back finance costs26 69 115 Net profit on investments held at fair value through profit or loss (including transaction costs)(5,292)(46,084)(54,953)Net loss from derivatives (including transaction costs)4,296 3,694 7,902 Financing costs on derivatives(1,683)(2,507)(4,835)Net loss on foreign exchange172 229 1,197 Sales of investments held at fair value through profit or loss85,480 107,625 236,900 Purchases of investments held at fair value through profit or loss(115,853)(112,303)(216,098)Sales of Cash Fund297,433 88,244 161,427 Purchases of Cash Fund2(49,594)(72,909)(165,067)Amounts paid for losses on closure of derivatives(15,621)(22,016)(47,584)Amounts received on profit on closure of derivatives14,705 21,415 41,490 Decrease/(increase) in other receivables195 (807)(489)Increase/(decrease) in other payables227 3,325 (4,210)Decrease/(increase) in amounts due from brokers1,247 (1,629)1,640 (Decrease)/increase in amounts due to brokers(953)1,724 (3,138)Cash collateral pledged with brokers(2,647)(5,294)1,130 Cash collateral received from brokers(2,180)(530)600 Taxation paid(512)(646)(1,872)--------------- --------------- --------------- Net cash inflow from operating activities10,968 5,327 14,216 ========= ========= ========= Financing activitiesInterest paid(26)(69)(115)Ordinary shares repurchased into treasury(106)– – Share repurchase costs(1)– – Dividends paid(11,356)(9,277)(15,903)--------------- --------------- --------------- Net cash outflow from financing activities(11,489)(9,346)(16,018)========= ========= ========= Decrease in cash and cash equivalents(521)(4,019)(1,802)Effect of foreign exchange rate changes(172)(229)(1,197)========= ========= ========= Change in cash and cash equivalents(693)(4,248)(2,999)--------------- --------------- --------------- Cash and cash equivalents at the start of the period/year2,284 5,283 5,283 Cash and cash equivalents at the end of the period/year1,591 1,035 2,284 ========= ========= ========= Comprised of:Cash at bank1,591 1,035 2,284 --------------- --------------- --------------- 1,591 1,035 2,284 ========= ========= ========= 

1     Dividends and interest received in cash during the period amounted to US$3,683,000 and US$1,195,000 (31 March 2024: US$4,480,000 and US$1,589,000; 30 September 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.

Notes to the financial statements for the six months ended 31 March 2025

1. Principal activityThe principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.

2. Basis of preparationThe half yearly financial statements for the period ended 31 March 2025 have been prepared in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the Financial Conduct Authority and with the UK–adopted International Accounting Standard 34 (IAS 34), Interim Financial Reporting. The half yearly financial statements should be read in conjunction with the Company’s Annual Report and Financial Statements for the year ended 30 September 2024, which have been prepared in accordance with UK–adopted International Accounting Standards (IAS).

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.

The Directors, having considered the nature and liquidity of the portfolio, the Company’s investment objective, the forthcoming cash exit tender opportunity in 2026 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 May 2026 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.

Adoption of new and amended International Accounting Standards and interpretations:IAS 1 – Classification of liabilities as current or non current (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.

IAS 1 – Non current liabilities with covenants (effective 1 January 2024). The IASB has amended IAS 1 Presentation of Financial Statements to introduce 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 these standards did not have any significant impact on the Company.

Relevant International Accounting Standards that have yet to be adopted:IAS 21 – Lack of exchangeability (effective 1 January 2025). 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.

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.

None of the standards that have been issued, but are not yet effective, are expected to have a material impact on the Company.

3. Income

Six months ended 31 March 2025 (unaudited) US$’000 Six months ended 31 March 2024 (unaudited) US$’000 Year ended 30 September 2024 (audited) US$’000 Investment income:UK dividends– 182 576 Overseas dividends3,690 5,279 16,276 Overseas special dividends283 431 913 Interest from Cash Fund964 1,442 2,891 --------------- --------------- --------------- Total investment income4,937 7,334 20,656 ========= ========= ========= Net income from contracts for difference146 785 2,425 --------------- --------------- --------------- Total income from contracts for difference146 785 2,425 ========= ========= ========= Other income:Interest received on cash collateral30 39 135 Deposit interest37 36 74 --------------- --------------- --------------- Total other income67 75 209 ========= ========= ========= Total5,150 8,194 23,290 ========= ========= ========= 

Dividends and interest received in cash during the period amounted to US$3,683,000 and US$1,195,000 respectively (six months ended 31 March 2024: US$4,480,000 and US$1,589,000; year ended 30 September 2024: US$15,293,000 and US$2,964,000).

No special dividends from equity investments have been recognised in capital for the six months ended 31 March 2025 (six months ended 31 March 2024: US$nil; year ended 30 September 2024: US$nil). No special dividends from long contracts for difference have been recognised in capital for the six months ended 31 March 2025 and included within net income from contracts for difference in the capital account in the Statement of Comprehensive Income (six months ended 31 March 2024: US$nil; year ended 30 September 2024: US$nil).

4. Investment management fee and performance fees

Six months ended31 March 2025(unaudited)Six months ended31 March 2024(unaudited)Year ended30 September 2024(audited)Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Investment management fee439 1,755 2,194 412 1,647 2,059 841 3,363 4,204 Performance fee– 1,627 1,627 – 3,962 3,962 - 3,510 3,510 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total439 3,382 3,821 412 5,609 6,021 841 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 equity and CFD portfolios 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 the total value added to the NAV at the end of a performance period over and above what would have been generated had the NAV since launch performed in line with the Benchmark Index, which, since 1 April 2018, is a composite of the MSCI Emerging Markets Index ex Selected Countries + MSCI Frontier Markets Index. 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 (including the reinvestment of dividends and before the deduction of management and performance fees) since launch has been measured against the performance of the Benchmark Index on a blended basis.

For the six months ended 31 March 2025, the Company’s NAV outperformed the Benchmark Index by 2.8% (six months ended 31 March 2024: outperformed by 3.4%; year ended 30 September 2024: outperformed by 0.8%) resulting in a cumulative outperformance since launch of 73.1% (31 March 2024: 69.6%; 30 September 2024: 68.5%); therefore, a performance fee of US$1,627,000 has been accrued (six months ended 31 March 2024: US$3,962,000; year ended 30 September 2024: US$3,510,000). Any accrued performance fee is included within other payables in the Statement of Financial Position. Any final performance fee for the full year ended 30 September 2025 will not crystallise and fall due until the calculation date of 30 September 2025.

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 1.0% 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. 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.

5. Other operating expenses

Six months ended 31 March 2025 (unaudited) US$’000 Six months ended 31 March 2024 (unaudited) US$’000 Year ended 30 September 2024 (audited) US$’000 Allocated to revenue:Custody fee175 113 276 Auditor’s remuneration:– audit services30 31 61 – other assurance services15 4 10 Registrar’s fee16 20 38 Directors’ emoluments2102 133 258 Broker fees34 19 40 Depositary fees318 19 38 Marketing fees31 64 211 AIC fees15 12 25 FCA fees14 10 23 Printing and postage fees27 21 47 Employer NI contributions9 10 25 Stock exchange listings10 8 17 Legal and professional fees9 10 24 Write back of prior year expenses4(1)(17)(17)Other administrative costs62 43 86 --------------- --------------- --------------- Total revenue expenses556 500 1,162 ========= ========= ========= Allocated to capital:Custody transaction charges549 38 92 --------------- --------------- --------------- Total605 538 1,254 ========= ========= ========= 

1     Fees for other assurance services of £3,550 (US$5,000) (six months ended 31 March 2024: £3,550 (US$4,000); year ended 30 September 2024: £7,100 (US$10,000)) relate to the review of the interim financial statements.

2     For the six months ended 31 March 2025, Directors’ emoluments amounted to £79,000 (US$102,000) (six months ended 31 March 2024: £105,000 (US$133,000); year ended 30 September 2024: £192,000 (US$258,000)). Further information on Directors’ emoluments can be found in the Directors’ Remuneration Report on page 65 of the Company’s Annual Report and Financial Statements for the year ended 30 September 2024. The Company has no employees.

3     All expenses other than depositary fees are paid in British Pound Sterling and are therefore subject to exchange rate fluctuations.

4     Relates to miscellaneous fees written back during the six months ended 31 March 2025 (six months ended 31 March 2024: legal fees, miscellaneous fees and Directors’ evaluation fees; year ended 30 September 2024: Director search fees, miscellaneous fees and legal fees).

5     For the six months ended 31 March 2025, expenses of £38,000 (US$49,000) (six months ended 31 March 2024: £30,000 (US$38,000); year ended 30 September 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.

The transaction costs incurred on the acquisition of investments amounted to US$131,000 for the six months ended 31 March 2025 (six months ended 31 March 2024: US$220,000; year ended 30 September 2024: US$502,000). Costs relating to the disposal of investments amounted to US$229,000 for the six months ended 31 March 2025 (six months ended 31 March 2024: US$152,000; year ended 30 September 2024: US$471,000). All transaction costs have been included within the capital reserve.

6. Finance costs

Six months ended31 March 2025(unaudited)Six months ended31 March 2024(unaudited)Year ended30 September 2024(audited)Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Interest paid on bank overdraft– – – 1 2 3 1 2 3 Interest paid on cash collateral5 21 26 13 53 66 22 90 112 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total5 21 26 14 55 69 23 92 115 ========= ========= ========= ========= ========= ========= ========= ========= ========= 

7. TaxationAnalysis of charge/(credit) for the period

Six months ended31 March 2025(unaudited)Six months ended31 March 2024(unaudited)Year ended30 September 2024(audited)Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Revenue US$’000 Capital US$’000 Total US$’000 Current taxation:Corporation tax43 (43)– 343 (343)– 867 (867)– Overseas tax516 – 516 686 – 686 1,513 – 1,513 Overseas capital gains tax– 86 86 – – – – – – --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total taxation charge/(credit)559 43 602 1,029 (343)686 2,380 (867)1,513 ========= ========= ========= ========= ========= ========= ========= ========= ========= 

8. DividendsThe Board has declared an interim dividend of 3.65 cents per share for the period ended 31 March 2025 which will be paid on 24 June 2025 to shareholders on the register at 6 June 2025 (interim dividend for the six months ended 31 March 2024: 3.50 cents per share). The total cost of the dividend based on 189,270,248 ordinary shares in issue at 23 May 2025 was US$6,908,000 (six months ended 31 March 2024: US$6,626,000). This dividend has not been accrued in the financial statements for the six months ended 31 March 2025 as, under IAS, interim dividends are not recognised until paid. Dividends are debited directly to reserves.

9. Earnings and net asset value per ordinary shareRevenue earnings, capital (loss)/earnings and net asset value per ordinary share are shown below and have been calculated using the following:

Six months ended 31 March 2025 (unaudited) Six months ended 31 March 2024 (unaudited) Year ended 30 September 2024 (audited) Net revenue profit attributable to ordinary shareholders (US$’000)3,591 6,239 18,884 Net capital (loss)/profit attributable to ordinary shareholders (US$’000)(2,671)36,802 39,664 --------------- --------------- --------------- Total profit attributable to ordinary shareholders (US$’000)920 43,041 58,548 ========= ========= ========= Equity shareholders’ funds (US$’000)395,700 397,362 406,243 ========= ========= ========= The weighted average number of ordinary shares in issue during the period on which the earnings per ordinary share was calculated was:189,288,710 189,325,748 189,325,748 The actual number of ordinary shares in issue at the period end on which the net asset value per ordinary share was calculated was:189,270,248 189,325,748 189,325,748 --------------- --------------- --------------- Earnings per shareRevenue earnings per share (cents) – basic and diluted1.90 3.30 9.97 Capital (loss)/earnings per share (cents) – basic and diluted(1.41)19.43 20.95 --------------- --------------- --------------- Total earnings per share (cents) – basic and diluted0.49 22.73 30.92 ========= ========= ========= As at 31 March 2025 (unaudited) As at 31 March 2024 (unaudited) As at 30 September 2024 (audited) Net asset value per ordinary share (cents)209.07 209.88 214.57 Ordinary share price (cents)1189.74 192.96 194.50 Net asset value per ordinary share (pence)1161.98 166.14 159.96 Ordinary share price (pence)147.00 152.75 145.00 ========= ========= ========= 

1     Based on an exchange rate of US$1.2908 to £1 at 31 March 2025 (31 March 2024: US$1.2633 to £1; 30 September 2024: US$1.3414 to £1).

10. Called up share capital

Ordinary shares in issue number Treasury shares number Total shares number Nominal value US$’000 Allotted, called up and fully paid share capital comprised:Ordinary shares of 1 cent each:At 30 September 2023 (audited)189,325,748 52,497,053 241,822,801 2,418 At 31 March 2024 (unaudited)189,325,748 52,497,053 241,822,801 2,418 At 30 September 2024 (audited)189,325,748 52,497,053 241,822,801 2,418 Ordinary shares repurchased into treasury(55,500)55,500 – – At 31 March 2025 (unaudited)189,270,248 52,552,553 241,822,801 2,418 ========= ========= ========= ========= 

The Company also has in issue 50,000 management shares which carry the right to a fixed cumulative preferred dividend. Additional information is given in note 14 to the Annual Report and Financial Statements for the year ended 30 September 2024.

During the six months ended 31 March 2025, the Company repurchased 55,500 ordinary shares (six months ended 31 March 2024 and year ended 30 September 2024: none) for a total consideration of US$107,000 (six months ended 31 March 2024 and year ended 30 September 2024: US$nil).

Since 31 March 2025 and up to the date of this report, no ordinary shares have been issued or bought back.

11. ReservesThe capital redemption reserve of US$5,798,000 (31 March 2024: US$5,798,000; 30 September 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 reserve 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, capital reserve and revenue reserve may be distributed by way of dividend. The gain on the capital reserve arising on the revaluation of investments of US$26,857,000 (six months ended 31 March 2024: US$42,703,000; year ended 30 September 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.

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.

12. Financial risks and valuation of financial instrumentsThe Company’s investment activities expose it to the various types of risk which are associated with the financial instruments and markets in which it invests. The risks are substantially consistent with those disclosed in the previous annual financial statements with the exception of those outlined below.

Market risk arising from price riskPrice 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 its investments and could result in increased premiums or discounts to the Company’s net asset value.

Valuation of financial instrumentsFinancial 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) as set out on page 93 of the Company’s Annual Report and Financial Statements for the year ended 30 September 2024.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.

The fair value hierarchy has the following levels:

Level 1 – Quoted market price for identical instruments in active marketsA 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 inputsThis category includes instruments valued using quoted prices for similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Valuation techniques used for non–standardised financial instruments such as options, currency swaps and other over–the–counter derivatives include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.

As at the period end the CFDs were valued using the underlying equity bid price and the inputs to the valuation were the exchange rates used to convert the CFD valuation from the relevant local currency in which the underlying equity was priced to US Dollars at the period end date. There have been no changes to the valuation technique since the previous year or as at the date of this report.

Contracts for difference and forward currency contracts have been classified as Level 2 investments as their valuation has been based on market observable inputs represented by the market prices of the underlying quoted securities to which these contracts expose the Company.

Level 3 – Valuation techniques using significant unobservable inputsThis category includes all instruments where the valuation technique includes inputs not based on market data and these inputs could have a significant impact on the instrument’s valuation.

This category also includes instruments that are valued based on quoted prices for similar instruments where significant entity determined adjustments or assumptions are required to reflect differences between the instruments and instruments for which there is no active market. The Investment Manager considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary and provided by independent sources that are actively involved in the relevant market.

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement. 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 liabilitiesFor 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 the IFRS 13 fair value hierarchy.

Financial assets/(liabilities) at fair value through profit or loss at 31 March 2025 (unaudited)Level 1 US$’000 Level 2 US$’000 Level 3 US$’000 Total US$’000 Assets:Equity investments379,465 – – 379,465 Cash Fund20,688 – – 20,688 Contracts for difference (fair value)– 1,244 – 1,244 Liabilities:Contracts for difference (fair value)– (1,765)– (1,765)--------------- --------------- --------------- --------------- 400,153 (521)– 399,632 ========= ========= ========= ========= Financial assets/(liabilities) at fair value through profit or loss at 31 March 2024 (unaudited)Level 1 US$’000 Level 2 US$’000 Level 3 US$’000 Total US$’000 Assets:Equity investments360,408 – – 360,408 Cash Fund49,538 – – 49,538 Contracts for difference (fair value)– 1,347 – 1,347 Liabilities:Contracts for difference (fair value)– (3,767)– (3,767)--------------- --------------- --------------- --------------- 409,946 (2,420)– 407,526 ========= ========= ========= ========= Financial assets/(liabilities) at fair value through profit or loss at 30 September 2024 (audited)Level 1 US$’000 Level 2 US$’000 Level 3 US$’000 Total US$’000 Assets:Equity investments343,749 – – 343,749 Cash Fund68,559 – – 68,559 Contracts for difference (fair value)– 2,756 – 2,756 Liabilities:Contracts for difference (fair value)– (1,561)– (1,561)--------------- --------------- --------------- --------------- 412,308 1,195 – 413,503 ========= ========= ========= ========= 

There were no transfers between levels of financial assets and financial liabilities during the six months ended 31 March 2025 (six months ended 31 March 2024: none; year ended 30 September 2024: none).

The Company held no Level 3 assets or liabilities during the six months ended 31 March 2025 (six months ended 31 March 2024: none; year ended 30 September 2024: none).

13. Related party disclosureDirectors’ emolumentsThe Board consists of five non–executive Directors, all of whom are considered to be independent of the Manager by the Board. None of the Directors has a service contract with the Company. With effect from 1 October 2024, the Chair receives an annual fee of £46,200, the Chair of the Audit and Management Engagement Committee receives an annual fee of £38,600 and each of the other Directors receives an annual fee of £33,600.

As at 31 March 2025, an amount of US$20,000 (£15,000) was outstanding in respect of Directors’ fees (31 March 2024: US$19,000 (£15,000); 30 September 2024: US$20,000 (£15,000)).

At the period end, members of the Board, including any connected persons, held ordinary shares in the Company as set out below:

Six months ended 31 March 2025 (unaudited) Six months ended 31 March 2024 (unaudited) Year ended 30 September 2024 (audited) Katrina Hart (Chair)48,912148,350248,5603Elisabeth Airey75,000 75,000 75,000 Hatem Dowidar25,000 Nil Nil Lucy Taylor–Smith30,852410,122 10,122 Stephen White30,000 30,000 30,000 ========= ========= ========= 

1     11,898 ordinary shares are held on behalf of Katrina Hart’s dependents.

2     11,336 ordinary shares are held on behalf of Katrina Hart’s dependents.

3     11,546 ordinary shares are held on behalf of Katrina Hart’s dependents.

4     20,730 ordinary shares are held on behalf of Lucy Taylor-Smith’s dependents.

Since the period end and up to the date of this report there have been no changes in Directors’ holdings.

The transactions with the Investment Manager and AIFM are stated in note 14 below.

Significant holdingsThe 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 31 March 20255.0 n/a n/a As at 30 September 20244.0 n/a n/a As at 31 March 20244.9 n/a n/a ========= ========= ========= 

14. Transactions with the Investment Manager and AIFMBlackRock Fund Managers Limited (BFM) provides management and administration services to the Company under a contract which is terminable on six months’ notice. BFM has (with the Company’s consent) delegated certain portfolio and risk management services, and other ancillary services, to BlackRock Investment Management (UK) Limited (BIM (UK)). Further details of this investment management contract are disclosed on page 51 of the Directors’ Report in the Company’s Annual Report and Financial Statements for the year ended 30 September 2024.

The investment management fee due for the six months ended 31 March 2025 amounted to US$2,194,000 (six months ended 31 March 2024: US$2,059,000; year ended 30 September 2024: US$4,204,000). The performance fee accrued for the six months ended 31 March 2025 is US$1,627,000 (six months ended 31 March 2024: US$3,962,000; year ended 30 September 2024: US$3,510,000).

At the period end, US$2,194,000 was outstanding in respect of management fees (31 March 2024: US$2,059,000; 30 September 2024: US$3,204,000) and US$5,137,000 (31 March 2024: US$12,234,000; 30 September 2024: US$3,510,000) was accrued in respect of performance fees of which US$3,510,000 had crystallised and fallen due for the year ended 30 September 2024 (31 March 2024: US$8,272,000; 30 September 2024: US$3,510,000). Any final performance fee for the full year ending 30 September 2025 will not crystallise and fall due until the calculation date of 30 September 2025.

In addition to the above services, BIM (UK) has provided the Company with marketing services. The total fees paid or payable for these services to 31 March 2025 amounted to US$31,000 excluding VAT (six months ended 31 March 2024: US$64,000; year ended 30 September 2024: US$211,000). Marketing fees of US$97,000 excluding VAT (31 March 2024: US$207,000; 30 September 2024: US$344,000) were outstanding as at 31 March 2025.

The Company has an investment in the BlackRock Institutional Cash Series plc – US Dollar Liquid Environmentally Aware Fund of US$20,688,000 (31 March 2024: US$49,538,000; 30 September 2024: US$68,559,000) at 31 March 2025, which is a fund managed by a company within the BlackRock Group. 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.

15. Contingent liabilitiesThere were no contingent liabilities at 31 March 2025 (six months ended 31 March 2024: none; year ended 30 September 2024: none).

16. Publication of non statutory accountsThe financial information contained in this half yearly report does not constitute statutory accounts as defined in Section 435 of the Companies Act 2006. The financial information for the six months ended 31 March 2025 and 31 March 2024 has not been audited.

The information for the year ended 30 September 2024 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies, unless otherwise stated. The report of the auditors on those accounts contained no qualifications or statement under Sections 498(2) or 498 (3) of the Companies Act 2006.

17. Annual resultsThe Board expects to announce the annual results for the year ending 30 September 2025 in December 2025.

Copies of the annual results announcement can be obtained from the Secretary on 020 7743 3000 or at [email protected]. The Annual Report should be available by late December 2025 with the Annual General Meeting being held in February 2026.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Sarah Beynsberger, Director, Investment Trusts, BlackRock Investment Management (UK) LimitedTel: 020 7743 3000

Press enquiries:

Lansons CommunicationsEmail: [email protected]:  020 7490 8828

28 May 2025

12 Throgmorton AvenueLondon EC2N 2DL

END