10th Mar 2016 11:27
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, March 8
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 29 February 2016 and unaudited. |
| Performance at month end with net income reinvested |
| One | Three | One | Three | Five | *Since | ||||||||||||||
| Month | Months | Year | Years | Years | 30.04.09 | ||||||||||||||
| Sterling: | |||||||||||||||||||
| Share price | 6.3% | -4.2% | -8.0% | -24.6% | -34.3% | 39.4% | |||||||||||||
| Net asset value | 4.4% | -1.9% | -6.1% | -27.2% | -35.2% | 39.8% | |||||||||||||
| MSCI EM Europe 10/40 (NR) | 3.2% | -0.7% | -11.8% | -37.8% | -39.5% | 13.5% | |||||||||||||
| US Dollars: | |||||||||||||||||||
| Share price | 4.5% | -11.3% | -17.1% | -30.7% | -43.6% | 31.2% | |||||||||||||
| Net asset value | 2.5% | -9.2% | -15.3% | -33.1% | -44.5% | 31.5% | |||||||||||||
| MSCI EM Europe 10/40 (NR) | 1.3% | -8.1% | -20.5% | -42.9% | -48.2% | 6.8% | |||||||||||||
| Sources: BlackRock, Standard & Poor’s Micropal | |||||||||||||||||||
| *BlackRock took over the investment management of the Company with effect from 1 May 2009 | |||||||||||||||||||
| At month end | |||||||||||||||||||
| Net asset value – capital only: | 227.77p | ||||||||||||||||||
| Net asset value** – cum income: | 229.59p | ||||||||||||||||||
| Share price: | 203.00p | ||||||||||||||||||
| Total assets^: | £83.1m | ||||||||||||||||||
| Discount (share price to cum income NAV): | 11.6% | ||||||||||||||||||
| Gross market exposure^^^: | 100.9% | ||||||||||||||||||
| Gearing at month end: | 6.1% | ||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,209,928 | ||||||||||||||||||
| Ongoing charges* | 1.3% | ||||||||||||||||||
| * Calculated as at 31 January 2015, in accordance with AIC guidelines. | |||||||||||||||||||
| ** Includes year to date net revenue equal to 1.82 pence per share. | |||||||||||||||||||
| ^ Total assets include current year revenue. | |||||||||||||||||||
| ^^ Excluding 5,400,000 shares held in treasury. | |||||||||||||||||||
| ^^^ Long positions plus short positions as a percentage of net asset value. | |||||||||||||||||||
| Sector | % Total | Country | % Total | ||||||||||||||||
| Analysis | Exposure | Analysis | Exposure | ||||||||||||||||
| Financials | 42.1 | Russia | 44.2 | ||||||||||||||||
| Energy | 23.8 | Turkey | 22.3 | ||||||||||||||||
| Information Technology | 7.9 | Poland | 15.8 | ||||||||||||||||
| Consumer Discretionary | 7.2 | Greece | 7.7 | ||||||||||||||||
| Basic Materials | 6.5 | Kazakhstan | 4.7 | ||||||||||||||||
| Consumer Staples | 5.9 | Ukraine | 2.7 | ||||||||||||||||
| Industrials | 4.0 | Romania | 1.9 | ||||||||||||||||
| Utilities | 2.5 | Lithuania | 1.6 | ||||||||||||||||
| Health Care | 1.0 | Net current liabilities | (0.9) | ||||||||||||||||
| Net current liabilities | (0.9) | ||||||||||||||||||
| ----- | ----- | ||||||||||||||||||
| 100.0 | 100.0 | ||||||||||||||||||
| ===== | ===== | ||||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||||
| (in % order of Total Market Exposure as at 29.02.16) | |||||||||||||||||||
| Total Market | |||||||||||||||||||
| Company | Region of Risk | Exposure % | |||||||||||||||||
| Sberbank | Russia | 8.1 | |||||||||||||||||
| Halk Bank | Turkey | 6.5 | |||||||||||||||||
| PZU | Poland | 6.4 | |||||||||||||||||
| PKO Bank Polski | Poland | 6.2 | |||||||||||||||||
| Novatek | Russia | 5.3 | |||||||||||||||||
| Gazprom | Russia | 5.0 | |||||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 4.7 | |||||||||||||||||
| Lukoil | Russia | 4.5 | |||||||||||||||||
| Globaltrans | Russia | 4.0 | |||||||||||||||||
| TSKB | Turkey | 4.0 | |||||||||||||||||
| OPAP | Greece | 3.7 | |||||||||||||||||
| Luxoft | Russia | 3.7 | |||||||||||||||||
| Tupras | Turkey | 3.5 | |||||||||||||||||
| MMC Norilsk Nickel | Russia | 3.3 | |||||||||||||||||
| KGHM | Poland | 3.3 | |||||||||||||||||
| Commenting on the markets, Sam Vecht and David Reid, representing the Investment Manager noted; | |||||||||||||||||||
| Market Commentary | |||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned +1.3% in February in USD terms. The region’s equity markets have stabilised in recent weeks. This has been aided by a stabilisation in commodity prices, particularly oil and metals. Russia was a beneficiary of improving oil prices. In addition, although economic conditions remain challenging, the Russian economy is performing better than feared. Industrial production, retail sales, inflation and unemployment statistics released during the month all modestly outperformed consensus expectations. Poland was also a strong market during February. Mining company KHGM performed well on the back of a rally in the copper price. Stocks in the financial sector also performed well; investors were cheered after the government decided to review tough proposals on mandatory conversions of Swiss Franc mortgages. Greece was weak during the month as it appeared that little progress had been made with the creditors on the first review of the third memorandum. Despite this, our view of the first review is that it is being handled in a more constructive manner than last summer. We believe that, although the reforms under discussion are not trivial, all parties would like to avoid a repeat of the 2015 turmoil. Focus On: Russian corporate results During February a number of portfolio holdings announced strong result despite economic conditions, which contributed to relative performance. A few examples below also illustrate that macroeconomic headlines often obscure strong underlying progress from selected companies: Private hospital operator MD Medical Group rose by 45% following January’s trading update. Investors were cheered by increased capacity utilisation on recently completed hospitals and the potential for further growth in 2016. Gas producer Novatek also surprised on the upside after announcing net income which was 26% above market expectations for the final quarter of the year. Finally Yandex, an internet company, also beat expectations on the top line, with revenues growing 23% YoY in the fourth quarter. The company has recently upgraded its advertising auction system for its market leading search technology and this has successfully promoted increased spend from clients. | |||||||||||||||||||
| 10 March 2016 | |||||||||||||||||||
| ENDS | |||||||||||||||||||
| Latest information is available by typing www.blackrock.co.uk/beep on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal). Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement. | |||||||||||||||||||
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