14th Feb 2017 15:06
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, February 14
| BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
| All information is at 31 January 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 | 1.0% | 6.9% | 57.4% | 22.7% | 20.3% | 106.4% | |||||||||||
| Net asset value | 1.2% | 8.2% | 55.8% | 29.4% | 24.1% | 108.7% | |||||||||||
| MSCI EM Europe | 0.0% | 6.7% | 48.6% | 10.9% | 2.0% | 63.5% | |||||||||||
| 10/40(NR) | |||||||||||||||||
| US Dollars: | |||||||||||||||||
| Share price | 2.8% | 10.2% | 39.6% | -6.1% | -4.1% | 75.3% | |||||||||||
| Net asset value | 3.0% | 11.6% | 38.2% | -0.9% | -1.0% | 77.3% | |||||||||||
| MSCI EM Europe | 1.8% | 10.0% | 31.8% | -15.1% | -18.7% | 38.8% | |||||||||||
| 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: | 423.76c | ||||||||||||||||
| Net asset value* – cum income: | 431.22c | ||||||||||||||||
| Sterling: | |||||||||||||||||
| Net asset value – capital only: | 336.80p | ||||||||||||||||
| Net asset value* – cum income: | 342.73p | ||||||||||||||||
| Share price: | 300.50p | ||||||||||||||||
| Total assets^: | £123.1m | ||||||||||||||||
| Discount (share price to cum income NAV): | 12.3% | ||||||||||||||||
| Net gearing at month end: | 1.5% | ||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 35,927,828 | ||||||||||||||||
| Ongoing charges^^^ | 1.3% | ||||||||||||||||
| * Includes year to date net revenue equal to 5.93 pence per share. | |||||||||||||||||
| ^ Total assets include current year revenue. | |||||||||||||||||
| ^^ Excluding 5,400,000 shares held in treasury. | |||||||||||||||||
| ^^^ Calculated as at 31 January 2016, in accordance with AIC guidelines. | |||||||||||||||||
| Sector | Gross assets (%) | Country | Gross assets | ||||||||||||||
| Analysis | Analysis | (%) | |||||||||||||||
| Financials | 41.9 | Russia | 48.1 | ||||||||||||||
| Energy | 25.4 | Turkey | 23.5 | ||||||||||||||
| Materials | 7.4 | Poland | 9.0 | ||||||||||||||
| Industrials | 6.9 | Ukraine | 8.8 | ||||||||||||||
| Information Technology | 5.4 | Greece | 7.2 | ||||||||||||||
| Consumer Staples | 4.7 | Czech Republic | 4.8 | ||||||||||||||
| Health Care | 3.2 | Romania | 1.7 | ||||||||||||||
| Telecommunication Services | 3.0 | Net current liabilities | (0.6) | ||||||||||||||
| Utilities | 2.9 | ||||||||||||||||
| Consumer Discretionary | 2.3 | ||||||||||||||||
| Net current liabilities | (0.6) | ----- | |||||||||||||||
| ----- | 102.5 | ||||||||||||||||
| 102.5 | ===== | ||||||||||||||||
| ===== | |||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||
| (in % order of Gross Assets as at 31.01.17) | |||||||||||||||||
| Company | Region of Risk | Gross assets | |||||||||||||||
| (%) | |||||||||||||||||
| Sberbank | Russia | 10.4 | |||||||||||||||
| Gazprom | Russia | 9.0 | |||||||||||||||
| Novatek | Russia | 6.4 | |||||||||||||||
| Lukoil | Russia | 6.0 | |||||||||||||||
| Garanti Bank | Turkey | 5.0 | |||||||||||||||
| Moneta Money Bank | Czech Republic | 4.8 | |||||||||||||||
| Globaltrans | Russia | 4.2 | |||||||||||||||
| PKO Bank Polski | Poland | 3.8 | |||||||||||||||
| Ferrexpo | Ukraine | 3.8 | |||||||||||||||
| PZU | Poland | 3.8 | |||||||||||||||
| Halk Bank | Turkey | 3.6 | |||||||||||||||
| MD Medical Group | Russia | 3.2 | |||||||||||||||
| Turkcell | Turkey | 3.0 | |||||||||||||||
| Tupras | Turkey | 3.0 | |||||||||||||||
| Inter RAO | Russia | 2.9 | |||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | |||||||||||||||||
| Market Commentary | |||||||||||||||||
| The MSCI Emerging Europe 10/40 Index rose by 1.8% in January in USD terms. The Company outperformed the index and was up by 3.0% in USD terms. | |||||||||||||||||
| The Central and Eastern European markets performed well in the month amidst reflation expectations accelerating as inflation surprised on the upside and confidence indicators hit 8 to 10 year highs across the region. Financials led the charge as the spectre of destructive low rates began to diminish. Poland (+10.5%) was the best performing country, followed by Hungary (+4.4%) and also the Czech Republic (+2.3%). Turkey (+3.6%) also performed well as the Lira outlook stabilised amid central bank efforts to tighten liquidity. Russia was flat for the month as the market waited to see what action President Trump would take towards sanctions. The Finance Ministry and Central Bank of Russia confirmed their intention to smooth the impact of volatile oil prices on the economy through FX interventions of buying USD when the Urals price is above $40 per barrel, and selling when the price is below $40. | |||||||||||||||||
| Greece (-7.9%) was the regional laggard on the lack of progress regarding the terms and conditions to Greece’s latest bailout review. | |||||||||||||||||
| Focus on: CEE Reflation | |||||||||||||||||
| The potential for global reflation is one of the central questions in global macro markets for 2017, and in emerging markets this theme is playing out with a particular twist with reflation prospects being clearest in Central and Eastern European Countries (CEE). In the economies of Poland, the Czech Republic and Hungary, inflationary pressures are building on the back of accelerating wage growth, unemployment at multi-decade lows and a pickup in investment spending. This cocktail is creating the potential for the regional banking sector to break away from the destructive low rate environment. We believe that a mix of continued loan growth coupled with higher margins will be accretive for the banks’ earnings, and we continue to be overweight in the sector. | |||||||||||||||||
| 14 February 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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