16th Sep 2016 08:48
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, September 15
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 31 August 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 | 3.1% | 13.3% | 37.1% | -0.2% | -3.4% | 72.4% | |||||||||||
| Net asset value | 4.1% | 15.0% | 32.1% | 2.3% | 1.8% | 74.9% | |||||||||||
| MSCI EM Europe 10/40 (NR) | 3.2% | 13.8% | 20.8% | -13.2% | -16.3% | 39.0% | |||||||||||
| US Dollars: | |||||||||||||||||
| Share price | 1.7% | 2.0% | 16.7% | -15.5% | -22.3% | 52.5% | |||||||||||
| Net asset value | 2.7% | 3.5% | 12.7% | -13.4% | -18.0% | 54.7% | |||||||||||
| MSCI EM Europe 10/40 (NR) | 1.8% | 2.4% | 2.8% | -26.5% | -32.6% | 22.9% | |||||||||||
| 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: | 370.05c | ||||||||||||||||
| Net asset value** – cum income: | 376.24c | ||||||||||||||||
| Sterling: | |||||||||||||||||
| Net asset value – capital only: | 282.53p | ||||||||||||||||
| Net asset value** – cum income: | 287.26p | ||||||||||||||||
| Share price: | 251.00p | ||||||||||||||||
| Total assets^: | £103.6m | ||||||||||||||||
| Discount (share price to cum income NAV): | 12.6% | ||||||||||||||||
| Net cash at month end: | 1.4% | ||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,073,828 | ||||||||||||||||
| Ongoing charges* | 1.3% | ||||||||||||||||
| * Calculated as at 31 January 2016, in accordance with AIC guidelines. | |||||||||||||||||
| ** Includes year to date net revenue equal to 4.73 pence per share. | |||||||||||||||||
| ^ Total assets include current year revenue. | |||||||||||||||||
| ^^ Excluding 5,400,000 shares held in treasury. | |||||||||||||||||
| Sector | Gross assets (%) | Country | Gross assets | ||||||||||||||
| Analysis | Analysis | (%) | |||||||||||||||
| Financials | 41.8 | Russia | 48.2 | ||||||||||||||
| Energy | 23.1 | Turkey | 22.0 | ||||||||||||||
| Consumer Staples | 8.6 | Poland | 11.2 | ||||||||||||||
| Basic Materials | 8.0 | Greece | 7.8 | ||||||||||||||
| Information Technology | 6.1 | Ukraine | 5.6 | ||||||||||||||
| Utilities | 4.7 | Kazakhstan | 3.7 | ||||||||||||||
| Industrials | 3.9 | Romania | 2.0 | ||||||||||||||
| Consumer Discretionary | 2.9 | Net current assets | 1.4 | ||||||||||||||
| Health Care | 1.4 | ||||||||||||||||
| Net current assets | 1.4 | ||||||||||||||||
| ----- | ----- | ||||||||||||||||
| 101.9 | 101.9 | ||||||||||||||||
| ===== | ===== | ||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||
| (in % order of Total Market Exposure as at 31.08.16) | |||||||||||||||||
| Company | Region of Risk | Gross assets | |||||||||||||||
| (%) | |||||||||||||||||
| Sberbank | Russia | 10.0 | |||||||||||||||
| Novatek | Russia | 6.1 | |||||||||||||||
| Garanti Bank | Turkey | 5.9 | |||||||||||||||
| Halk Bank | Turkey | 5.2 | |||||||||||||||
| Lukoil | Russia | 5.2 | |||||||||||||||
| Norilsk Nickel | Russia | 5.0 | |||||||||||||||
| Gazprom | Russia | 5.0 | |||||||||||||||
| Inter RAO | Russia | 4.7 | |||||||||||||||
| PZU | Poland | 4.3 | |||||||||||||||
| Globaltrans | Russia | 3.9 | |||||||||||||||
| PKO Bank Polski | Poland | 3.9 | |||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 3.8 | |||||||||||||||
| TSKB | Turkey | 3.6 | |||||||||||||||
| Mail.Ru | Russia | 3.5 | |||||||||||||||
| Coca Cola Icecek | Turkey | 3.4 | |||||||||||||||
| 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 August in USD terms. The Company outperformed the index and was up by 2.7% in USD terms. Most of the region’s equity markets saw positive returns in August with the exception of the Czech Republic, which suffered as key stocks surprised negatively on dividends. While Hungary (+2.8%), Russia (+2.6%) and Poland (+1.8%) were top performers, Greece (+0.3%) and Czech (-10.2%) were the laggards. Hungary reported solid 2Q16 GDP expansion of 4.5% quarter on quarter and a strong pick-up in the annual growth rate, both of which helped bolster that market. In Poland, the market reacted favourably to a revised proposal for the conversion of CHF mortgages which would significantly reduce the cost for banks. Russia reversed course in August buoyed by strong 2Q earnings and the rise in oil. Turkey also rebounded from July’s politically driven lows. President Erdogan’s response to last month’s failed coup attempt has helped his approval rating move to an all-time high. Turkey is also working on improving relations with Russia, which should have a positive read across for tourism revenue in Turkey. Greece was flat for the month despite the banks reporting good results for 2Q16. Focus on: Poland’s CHF mortgage conversion proposal Poland continues to work towards a solution for the conversion of CHF mortgages. In August, President Duda announced a revision to his previous proposal which would appear to have very positive implications for the banks. The revised proposal envisions lowering the costs for banks from PLN 9-15 billion to PLN 3-4 billion. In return the banks will be encouraged to voluntarily convert the loans from CHF to PLN or face higher capital weights. This news combined with strong results from PKO Bank led to the stock being a top performer for the Company in August. PKO Bank is Poland's largest bank. It has one of the strongest deposit franchises in the country, helping it to have a structurally lower cost of funding than its peers. We like the company given its attractive valuation relative to the other Polish banks. | |||||||||||||||||
| 16 September 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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