INTERNATIONAL INVESTMENT
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BlackRock, the world's largest money manager, has announced the liquidation of the iShares Frontier and Select EM ETF, which has invested heavily in Vietnamese equities.
Over the past 12 years since the fund's inception, BlackRock has provided investors access to new and expanding corners of the capital markets, and several of these frontier market countries have been elevated to emerging market status.
Select portions of the remaining smaller universe of frontier markets have experienced persistent liquidity challenges, and as a result, there will be an extended liquidation period for the fund.
BlackRock currently expects that the fund will cease trading and no longer accept creation and redemption orders after market close on or around March 31, 2025; however, this date is subject to change.
During the extended liquidation period, the fund will not be managed in accordance with its investment objective and policies, as the fund will sell down its assets, as determined by BlackRock, where possible and hold the proceeds of such sales in cash and cash equivalents.
Proceeds of the liquidation are expected to be sent to shareholders on or around three days after the last trading date.
The iShares Frontier and Select EM ETF seeks to provide exposure to frontier market equities along with select emerging market equities.
As of June 10, its net asset value (NAV) was $425.6 million. Its exposure to Vietnamese assets made up around 18 per cent, or $76 million, the biggest share among the member markets. Romania came in second place (8.75 per cent), followed by Kazakhstan (7.76 per cent) and Morocco (4.34 per cent).
The fund currently holds Vietnamese stocks including Hoa Phat Group (HoSE: HPG), Vinhomes (HoSE: VHM), Vingroup (HoSE: VIC), Vinamilk (HoSE: VNM), and Masan (HoSE: MSN).
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By Vy Bui
