100 Club Awards 2016: Specialist Sectors and Assets

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100 Club Award Winners - November 2016

100 Club Awards 2016: Specialist Sectors and Assets
L-R: Taha Lokhandwala, news editor at Investment Adviser, Sudaif Niaz, analyst at BlackRock, and Richard Romer-Lee, managing director at Square Mile Investment Consulting & Research

The BlackRock Frontiers investment trust claimed victory in the Specialist Sectors and Assets category, with one judge praising “another impressive 12 months, far outstripping the benchmark return to extend a consistent record of outperformance”.

Sam Vecht and Emily Fletcher seek to achieve long-term capital growth for investors in frontier markets, which is often considered to be a relatively illiquid market.

The managers explain: “Frontier markets tend to be more volatile than more established markets and, therefore, present a higher degree of risk as they are less well regulated and may be affected by political and social instability, among other factors.”

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Despite these headwinds, the trust has outperformed the AIC IT Global Emerging Markets Equities sector over several time periods since its launch in December 2010, FE Analytics shows. The trust delivered a five-year return to October 27 2016 of 109 per cent, while the sector averaged just 32.2 per cent. 

The portfolio’s largest sector weighting is to financials at 37.1 per cent, while consumer staples accounts for 18.4 per cent.

Its three-largest country allocations are to Argentina, Pakistan and Romania but the duo have invested far and wide, including Sri Lanka, Kuwait and the Caribbean.


What the judges say

The winner has a consistent record of outperformance, making good use of the closed-ended format.



Financials: Jupiter Financial Opportunities

Healthcare/biotech: Polar Capital Global Healthcare Growth and Income

Private Equity: Electra Private Equity

Technology: Polar Capital Global Technology