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12 Feb 2016 08:57
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, February 11
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 31 January 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 | -5.3% | -5.5% | -4.6% | -29.5% | -38.8% | 31.1% | ||||||||||||
| Net asset value | -4.0% | -3.3% | -4.9% | -29.4% | -36.7% | 33.9% | ||||||||||||
| MSCI EM Europe | 0.9% | -5.0% | -9.1% | -39.8% | -40.4% | 10.0% | ||||||||||||
| 10/40(NR) | ||||||||||||||||||
| US Dollars: | ||||||||||||||||||
| Share price | -8.9% | -13.2% | -9.9% | -36.9% | -45.7% | 25.6% | ||||||||||||
| Net asset value | -7.6% | -11.2% | -10.2% | -36.8% | -43.9% | 28.3% | ||||||||||||
| MSCI EM Europe | -2.9% | -12.8% | -14.2% | -46.2% | -47.2% | 5.3% | ||||||||||||
| 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 | ||||||||||||||||||
| Net asset value – capital only: | 218.03p | |||||||||||||||||
| Net asset value** – cum income: | 219.97p | |||||||||||||||||
| Share price: | 190.88p | |||||||||||||||||
| Total assets^: | £79.7m | |||||||||||||||||
| Discount (share price to cum income NAV): | 13.2% | |||||||||||||||||
| Gross market exposure^^^: | 100.0% | |||||||||||||||||
| Gearing at month end: | 5.9% | |||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,216,928 | |||||||||||||||||
| Ongoing charges* | 1.3% | |||||||||||||||||
| * Calculated as at 31 January 2015, in accordance with AIC guidelines. | ||||||||||||||||||
| ** Includes year to date net revenue equal to 1.94 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 | 42.9 | Russia | 43.5 | |||||||||||||||
| Energy | 26.8 | Turkey | 23.3 | |||||||||||||||
| Consumer Staples | 8.0 | Poland | 15.2 | |||||||||||||||
| Consumer Discretionary | 8.0 | Greece | 9.8 | |||||||||||||||
| Basic Materials | 5.2 | Kazakhstan | 4.7 | |||||||||||||||
| Information Technology | 5.0 | Ukraine | 2.7 | |||||||||||||||
| Industrials | 4.2 | Romania | 2.0 | |||||||||||||||
| Utilities | 2.1 | Lithuania | 1.7 | |||||||||||||||
| Health Care | 0.7 | Net current liabilities | (2.9) | |||||||||||||||
| Net current liabilities | (2.9) -------- | -------- | ||||||||||||||||
| 100.0 | 100.0 | |||||||||||||||||
| ===== | ===== | |||||||||||||||||
| Short positions | (0.0) | (0.0) | ||||||||||||||||
| Fifteen Largest Investments | ||||||||||||||||||
| (in % order of Total Market Exposure as at 31.01.16) | ||||||||||||||||||
| Total Market | ||||||||||||||||||
| Company | Region of Risk | Exposure % | ||||||||||||||||
| Sberbank | Russia | 7.6 | ||||||||||||||||
| Halk Bank | Turkey | 6.9 | ||||||||||||||||
| Novatek | Russia | 6.5 | ||||||||||||||||
| PKO Bank Polski | Poland | 6.4 | ||||||||||||||||
| Lukoil | Russia | 5.9 | ||||||||||||||||
| PZU | Poland | 5.4 | ||||||||||||||||
| Gazprom | Russia | 5.1 | ||||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 4.7 | ||||||||||||||||
| OPAP | Greece | 4.3 | ||||||||||||||||
| TSKB | Turkey | 4.3 | ||||||||||||||||
| Globaltrans | Russia | 4.2 | ||||||||||||||||
| Tupras | Turkey | 3.6 | ||||||||||||||||
| KGHM | Poland | 3.4 | ||||||||||||||||
| Coca Cola Icecek | Turkey | 3.3 | ||||||||||||||||
| Garanti Bank | Turkey | 3.2 | ||||||||||||||||
| Commenting on the markets, Sam Vecht and David Reid, representing the Investment Manager noted; | ||||||||||||||||||
| Market Commentary | ||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned -2.9% in USD terms in January. January proved to be a month of two halves. The first half of the month continued the negative trends of 2015 as markets digested the impact of the decision of the US Federal Reserve to raise interest rates. Sentiment was further dented by concerns over an economic growth slowdown in China. However, some of the lost ground was recovered in the last two weeks of the month as market expectations of tight monetary policy rapidly diminished. Greece was the weakest performer in January, falling by 20% in USD terms. Investors were concerned over progress of the negotiations to review the country’s bailout program and open the door to debt reduction talks, although in reality the process is still in its infancy and it is still too early to pass judgement. We believe that although the negotiation points are not trivial, all parties are incentivised to work towards a solution. The market reaction has been aggravated in the short-term by funding stresses emerging in European banks. Turkey ended the month in positive territory. Investors were cheered by positive economic data which illustrated the continued improvement in current account deficit. As an energy importer, Turkey is a beneficiary of lower commodity prices. Focus On: Norilsk Nickel Norilsk Nickel is a Russian miner with operations in the Russian Arctic. The region has large deposits of metals such as nickel and palladium. The company is the lowest-cost producer of nickel globally, thanks to accessible, high-grade ore, rich in by-products. The recent weakness in the commodity complex has also impacted the price of nickel, but the fall in nickel prices has been cushioned by the fall in the ruble as a commodity-linked currency, meaning the company can still generate significant free cashflow margins. We believe that as a result of this, the company’s healthy dividend remains supported and under-appreciated by the market. | ||||||||||||||||||
| 12 February 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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