19th Apr 2017 10:01
BlackRock Emerging Europe Plc - Portfolio UpdateBlackRock Emerging Europe Plc - Portfolio Update
PR Newswire
London, April 18
| BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
| All information is at 31 March 2017 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 | 2.0% | 6.9% | 43.6% | 34.7% | 19.7% | 118.4% | ||||||||||||||
| Net asset value | 0.8% | 3.6% | 38.1% | 31.9% | 21.0% | 113.7% | ||||||||||||||
| MSCI EM Europe | 1.1% | 0.3% | 28.4% | 9.2% | -0.3% | 64.1% | ||||||||||||||
| 10/40(NR) | ||||||||||||||||||||
| US Dollars: | ||||||||||||||||||||
| Share price | 2.5% | 8.2% | 25.0% | 1.0% | -6.3% | 84.4% | ||||||||||||||
| Net asset value | 1.3% | 4.8% | 20.1% | -1.1% | -5.2% | 80.5% | ||||||||||||||
| MSCI EM Europe | 1.6% | 1.5% | 11.7% | -18.1% | -22.0% | 38.5% | ||||||||||||||
| 10/40(NR) | ||||||||||||||||||||
| Sources: BlackRock, Standard & Poor’s Micropal | ||||||||||||||||||||
| *BlackRock took over the investment management of the Company with effect from 1 May 2009 | ||||||||||||||||||||
| At month end | ||||||||||||||||||||
| US Dollar: | ||||||||||||||||||||
| Net asset value – capital only: | 430.78c | |||||||||||||||||||
| Net asset value* – cum income: | 438.91c | |||||||||||||||||||
| Sterling: | ||||||||||||||||||||
| Net asset value – capital only: | 344.49p | |||||||||||||||||||
| Net asset value* – cum income: | 351.00p | |||||||||||||||||||
| Share price: | 318.00p | |||||||||||||||||||
| Total assets^: | £126.1m | |||||||||||||||||||
| Discount (share price to cum income NAV): | 9.4% | |||||||||||||||||||
| Net cash at month end: | 3.2% | |||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 35,916,028 | |||||||||||||||||||
| Ongoing charges^^^ | 1.2% | |||||||||||||||||||
| * Includes year to date net revenue equal to 6.51 pence per share. | ||||||||||||||||||||
| ^ Total assets include current year revenue. | ||||||||||||||||||||
| ^^ Excluding 5,000,000 shares held in treasury. | ||||||||||||||||||||
| ^^^ Calculated as at 31 January 2017, in accordance with AIC guidelines. | ||||||||||||||||||||
| Sector | Gross assets (%) | Country | Gross assets | |||||||||||||||||
| Analysis | Analysis | (%) | ||||||||||||||||||
| Financials | 32.1 | Russia | 56.7 | |||||||||||||||||
| Energy | 28.1 | Turkey | 14.5 | |||||||||||||||||
| Consumer Staples | 9.8 | Poland | 7.9 | |||||||||||||||||
| Industrials | 6.7 | Greece | 7.7 | |||||||||||||||||
| Information Technology | 5.4 | Ukraine | 5.2 | |||||||||||||||||
| Utilities | 3.4 | Czech Republic | 4.8 | |||||||||||||||||
| Health Care | 3.3 | Net current assets | 3.2 | |||||||||||||||||
| Materials | 3.0 | |||||||||||||||||||
| Telecommunication Services | 2.7 | |||||||||||||||||||
| Consumer Discretionary | 2.3 | |||||||||||||||||||
| Net current assets | 3.2 | |||||||||||||||||||
| ----- | ----- | |||||||||||||||||||
| 100.0 | 100.0 | |||||||||||||||||||
| ===== | ===== | |||||||||||||||||||
| Short positions | (0.0) | (0.0) | ||||||||||||||||||
| Fifteen Largest Investments | ||||||||||||||||||||
| (in % order of Gross Assets as at 31.03.17) | ||||||||||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||||||||||
| (%) | ||||||||||||||||||||
| Sberbank | Russia | 10.1 | ||||||||||||||||||
| Gazprom | Russia | 9.9 | ||||||||||||||||||
| Novatek | Russia | 8.2 | ||||||||||||||||||
| Lukoil | Russia | 5.6 | ||||||||||||||||||
| Lenta | Russia | 5.1 | ||||||||||||||||||
| PZU | Poland | 4.9 | ||||||||||||||||||
| Moneta Money Bank | Czech Republic | 4.9 | ||||||||||||||||||
| Globaltrans | Russia | 3.7 | ||||||||||||||||||
| Inter RAO | Russia | 3.4 | ||||||||||||||||||
| MD Medical Group | Russia | 3.3 | ||||||||||||||||||
| PKO Bank Polski | Poland | 3.0 | ||||||||||||||||||
| Norilsk Nickel | Russia | 3.0 | ||||||||||||||||||
| Turk Hava Yollari | Turkey | 2.9 | ||||||||||||||||||
| Tupras | Turkey | 2.9 | ||||||||||||||||||
| National Bank of Greece | Greece | 2.8 | ||||||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | ||||||||||||||||||||
| Market Commentary | ||||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned +1.6% in March in USD terms. The Company underperformed the index and was up by 1.3% in USD terms. | ||||||||||||||||||||
| In the region, the rally was led by Russia (+2.0%) reflecting the gains in the stronger Ruble (+3.6%) with the central bank cutting rates by 25bp in light of higher than expected disinflation. Turkey added +1.4% over the month as 4Q16 GDP growth significantly beat the consensus and the Lira has continued to strengthen since the beginning of the year. Greece also performed positively (+1.6%) with Greek banks reporting profits for 4Q16. | ||||||||||||||||||||
| Elsewhere in Central and Eastern European markets, Poland continued to rally (+1.4%) marking the region’s best market YTD (+17.8%), Czech was up (+0.8%), while Hungary lagged (-1.5%). Economic conditions continue to improve in Poland with GDP expected to reach over 3% this year and keep expanding after that. Underperformance in Hungary was led by the statement from the CEO of OTP Bank that a Hungarian central bank proposal to limit interest rates on mortgages may significantly impact the bank’s earnings. | ||||||||||||||||||||
| Focus on: MAIL.RU | ||||||||||||||||||||
| Mail.Ru Group is a leading company in the Russian speaking internet markets. Mail.Ru Group's sites reach over 90% of Russian internet users on a monthly basis. The company operates the three largest Russian networks, VKontakte (VK), Odnoklassniki (OK) and Moi Mir (My World), and Russia's largest online games business (including gaming titles such as Warface, Armored Warfare, Skyforge and Perfect World). The company also includes a leading offline mobile maps and navigation service, two instant messaging services, which are popular in Russia and CIS, and other products. | ||||||||||||||||||||
| The key business lines are social networks, advertising and MMO games with revenues split approximately equally between segments and monetisation coming primarily from the in-game item purchases and display advertising. In 2016 it acquired Delivery Club, a leading player in the growing Russian food delivery market. Throughout 2016, the company has weathered difficult times and delivered disappointing results in its games business. In 2017, the company reported strong results as investors gained confidence in management’s ability to put adjacent businesses (Youla, Delivery Club) onto the social networking platform. We continue to hold the stock given its prospects on social network monetisation and synergies in the adjacent businesses. | ||||||||||||||||||||
| 19 April 2017 | ||||||||||||||||||||
| 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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