24th Mar 2014 14:09
LONDON (Alliance News) - BlackRock Emerging Europe PLC Monday said it outperformed its benchmark in its last financial year but still saw a decline in its net asset value over that period, with a further decline reported since as a result of uncertainties in the markets as a result of the political crisis between Russia and Ukraine.
In the year to January 31, 2014 the company's net asset value returned minus 11.8% in dollar terms and minus 14.9% in sterling terms. The share price returned minus 6.1% in dollar terms and minus 9.5% in sterling terms. The difference between the two relates to the narrowing of the discount of the share price to net asset value.
This compares with a return from the benchmark index of minus 16.4% in US dollar terms and minus 19.4% in sterling terms.
Since the year end and up until the close of business on March 20, the company's NAV per share decreased by 5.6%, compared with the fall in the benchmark of 2.9% over the same period in dollar terms.
"This reflects the uncertainties in markets following the recent events in Ukraine and in particular the negative sentiment towards Russia arising from the actions taken in Crimea. This matter is unresolved at the time of writing," Neil England, Chairman, said in a statement.
Ukraine has been in crisis for months after the former President Viktor Yanukovich rejected a move to closer ties with the EU. That led to huge uprisings in Kiev and Yanukovich eventually fled to Russia. However, Crimea recently voted in favour of joining Russia, while the new regime in Kiev has now agreed closer ties with the EU.
The company's objective is to achieve long term capital growth, principally by investing in companies that do business primarily in Eastern Europe, Russia, Central Asia and Turkey.
BlackRock Emerging Europe shares were Monday quoted at 223.56 pence, down 0.1%.
By Samuel Agini; [email protected]; @samuelagini
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