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19 Jul 2016 10:42
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, July 15
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 30 June 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 | 4.9% | 5.0% | 10.9% | -5.5% | -25.0% | 59.6% | |||||||||||||
| Net asset value | 5.5% | 3.6% | 11.0% | -5.7% | -24.4% | 60.4% | |||||||||||||
| MSCI EM Europe 10/40(NR) | 8.2% | 3.5% | 4.0% | -19.5% | -31.9% | 32.2% | |||||||||||||
| US Dollars: | |||||||||||||||||||
| Share price | -3.6% | -2.4% | -5.8% | -16.7% | -37.5% | 44.1% | |||||||||||||
| Net asset value | -1.8% | -2.3% | -4.4% | -15.7% | -36.2% | 46.8% | |||||||||||||
| MSCI EM Europe 10/40(NR) | -0.6% | -3.8% | -11.6% | -29.1% | -43.3% | 19.3% | |||||||||||||
| 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: | 263.45p | ||||||||||||||||||
| Net asset value** – cum income: | 267.11p | ||||||||||||||||||
| Share price: | 232.38p | ||||||||||||||||||
| Total assets^: | £96.5m | ||||||||||||||||||
| Discount (share price to cum income NAV): | 13.0% | ||||||||||||||||||
| Gross market exposure^^^: | 105.6% | ||||||||||||||||||
| Gearing at month end: | 3.8% | ||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,136,128 | ||||||||||||||||||
| Ongoing charges* | 1.3% | ||||||||||||||||||
| * Calculated as at 31 January 2016, in accordance with AIC guidelines. | |||||||||||||||||||
| ** Includes year to date net revenue equal to 3.66 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 | 38.7 | Russia | 48.0 | ||||||||||||||||
| Energy | 23.2 | Turkey | 19.9 | ||||||||||||||||
| Information Technology | 8.8 | Poland | 12.3 | ||||||||||||||||
| Basic Materials | 8.6 | Greece | 6.7 | ||||||||||||||||
| Consumer Staples | 8.2 | Ukraine | 6.5 | ||||||||||||||||
| Utilities | 4.3 | Kazakhstan | 3.9 | ||||||||||||||||
| Consumer Discretionary | 3.9 | Romania | 1.7 | ||||||||||||||||
| Industrials | 3.7 | Lithuania | 1.5 | ||||||||||||||||
| Health Care | 1.1 | Net current liabilities | -0.5 | ||||||||||||||||
| Net current liabilities | -0.5 | ||||||||||||||||||
| ----- | ----- | ||||||||||||||||||
| 100.0 | 100.0 | ||||||||||||||||||
| ===== | ===== | ||||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||||
| (in % order of Total Market Exposure as at 30.06.16) | |||||||||||||||||||
| Total Market | |||||||||||||||||||
| Company | Region of Risk | Exposure % | |||||||||||||||||
| Sberbank | Russia | 9.6 | |||||||||||||||||
| Novatek | Russia | 5.7 | |||||||||||||||||
| PKO Bank Polski | Poland | 5.5 | |||||||||||||||||
| Gazprom | Russia | 5.4 | |||||||||||||||||
| Norilsk Nickel | Russia | 5.2 | |||||||||||||||||
| Halk Bank | Turkey | 5.2 | |||||||||||||||||
| Lukoil | Russia | 4.9 | |||||||||||||||||
| Inter RAO | Russia | 4.3 | |||||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 3.9 | |||||||||||||||||
| Mail.Ru | Russia | 3.8 | |||||||||||||||||
| Globaltrans | Russia | 3.7 | |||||||||||||||||
| TSKB | Turkey | 3.6 | |||||||||||||||||
| Luxoft | Ukraine | 3.6 | |||||||||||||||||
| Garanti Bank | Turkey | 3.5 | |||||||||||||||||
| PZU | Poland | 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 fell by 0.6% in June in USD terms. June was a month dominated by international headlines. Following weak US payroll numbers, a dovish statement from the Federal Reserve in June delayed rate hike expectations and helped emerging market equities outperform their developed peers. Later in the month, the Brexit vote had an immediate impact globally, and whilst the Emerging Europe universe was mostly flat in June, we witnessed a great deal of disparity between countries and sectors. Within the region, Greece was the worst performer falling by 25% in USD terms. Greece started the quarter strongly following positive progress on the bailout programme, before giving these gains back in June after the Brexit vote. Russia was up by 1.7% during June and the country remains the best performing market YTD in Emerging Europe. A new easing cycle was started as core inflation appears to be moderating in Russia. Turkey managed to return 1.7% as macro data was mostly positive. Poland (-3%), Hungary (-3%) and the Czech Republic (-6%) all posted negative returns on the back of the Brexit vote. Focus on: Financials and Utilities After a positive performance in May, European financials, especially Greek banks, reversed post Brexit on recession concerns and a potential EU breakup. Our positions in Alpha Bank and National Bank of Greece were not immune and proved to be the top detractors for the month. Similarly Luxoft, a Ukrainian IT services firm with European financial market clients, weighed on the Company amid concerns over a slowdown in discretionary spending amongst the European banks. Benefitting the Company was our position in Russian utility Inter RAO which benefitted after reporting strong first quarter results and announcing the sale of non-core assets. The stock has had a fantastic run and we continue to like it given the cheap valuation and potential to raise dividends significantly going forward. | |||||||||||||||||||
| 19 July 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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