BlackRock Frontiers Investment Trust Tender Offer

Basically they had committed that although the nature of the things invested in can be illiquid, they would give people an exit option (rather than people have to dive for the exit at below NAV) by the time of the 5 th annual meeting, as you say.

They are making good on the promise - if you want to sell rather than hold, they will put some of the assets into a pool and either sell down assets in an orderly fashion or hopefully have you bought out by Winterflood who then intend to flip them on to 'new investors' and not disturb the portfolio.

However, they make the point that they could probably deploy another $100m on top of the existing $140-150m portfolio, and so assuming they don't get a massive amount of people heading for the exit and there is demand by the new investors who would have otherwise picked up shares via Winterflood, they will perhaps issue some more shares and deploy new cash into the sector (rather than just using new investor cash to allow old investors to exit). This should assure investors that it's not all doom and gloom.

As a consequence of offering a tender at NAV less costs, the shares are trading quite close to NAV without a massive discount. So you could sell them in the market rather than waiting for the tender process. The documentation notes that there's no guarantee the tender price will be better than what you can get on the market for your holding - it might in fact be worse ; markets are fickle.

Emerging and frontier market investments can be illiquid and when out of favour, the discount against NAV for some investment trusts can open up widely sometimes. One thing you could consider is getting out of this one at roughly NAV and getting into another one which is on more of a discount.

Of course, there are often valid reasons why some trusts are on a discount and some not - for example Advance Frontier Markets AFMF is probably 9 or 10% below NAV but that's a fund of funds so not an apples to apples comparison.