20 Dec 2016 18:02
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, December 20
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 30 November 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 | -1.0% | 10.8% | 31.3% | 0.5% | 14.9% | 91.0% | ||||||||||||
| Net asset value | -0.7% | 9.5% | 34.3% | 3.6% | 16.1% | 91.5% | ||||||||||||
| MSCI EM Europe | -3.4% | 6.5% | 29.5% | -11.7% | -4.6% | 48.1% | ||||||||||||
| 10/40(NR) | ||||||||||||||||||
| US Dollars: | ||||||||||||||||||
| Share price | 1.3% | 5.7% | 9.0% | -23.3% | -8.7% | 61.2% | ||||||||||||
| Net asset value | 1.6% | 4.4% | 11.5% | -21.0% | -7.7% | 61.5% | ||||||||||||
| MSCI EM Europe | -1.1% | 1.6% | 7.5% | -32.7% | -24.2% | 24.8% | ||||||||||||
| 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: | 385.30c | |||||||||||||||||
| Net asset value** – cum income: | 392.89c | |||||||||||||||||
| Sterling: | ||||||||||||||||||
| Net asset value – capital only: | 308.39p | |||||||||||||||||
| Net asset value** – cum income: | 314.47p | |||||||||||||||||
| Share price: | 278.13p | |||||||||||||||||
| Total assets^: | £113.1m | |||||||||||||||||
| Discount (share price to cum income NAV): | 11.6% | |||||||||||||||||
| Net cash at month end: | 3.8% | |||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 35,967,728 | |||||||||||||||||
| Ongoing charges* | 1.3% | |||||||||||||||||
| * Calculated as at 31 January 2016, in accordance with AIC guidelines. | ||||||||||||||||||
| ** Includes year to date net revenue equal to 6.08 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 | 38.6 | Russia | 50.3 | |||||||||||||||
| Energy | 26.0 | Turkey | 17.7 | |||||||||||||||
| Consumer Staples | 6.5 | Poland | 8.5 | |||||||||||||||
| Information Technology | 5.5 | Greece | 7.1 | |||||||||||||||
| Industrials | 5.3 | Ukraine | 6.7 | |||||||||||||||
| Basic Materials | 5.2 | Czech Republic | 3.5 | |||||||||||||||
| Utilities | 3.9 | Kazakhstan | 2.4 | |||||||||||||||
| Telecommunications | 2.9 | Romania | 1.8 | |||||||||||||||
| Consumer Discretionary | 2.5 | Net current assets | 3.8 | |||||||||||||||
| Health Care Net current assets | 1.6 3.8 | |||||||||||||||||
| ----- | ----- | |||||||||||||||||
| 101.8 | 101.8 | |||||||||||||||||
| ===== | ===== | |||||||||||||||||
| Short positions | (0.0) | (0.0) | ||||||||||||||||
| Fifteen Largest Investments | ||||||||||||||||||
| (in % order of Gross Assets as at 30.11.16) | ||||||||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||||||||
| (%) | ||||||||||||||||||
| Sberbank | Russia | 10.7 | ||||||||||||||||
| Gazprom | Russia | 8.8 | ||||||||||||||||
| Novatek | Russia | 6.6 | ||||||||||||||||
| Lukoil | Russia | 5.5 | ||||||||||||||||
| Globaltrans | Russia | 5.3 | ||||||||||||||||
| PZU | Poland | 4.2 | ||||||||||||||||
| Inter RAO | Russia | 3.9 | ||||||||||||||||
| Moneta Money Bank | Czech Republic | 3.5 | ||||||||||||||||
| Halk Bank | Turkey | 3.4 | ||||||||||||||||
| PKO Bank Polski | Poland | 3.3 | ||||||||||||||||
| Mail.Ru | Russia | 3.1 | ||||||||||||||||
| Turkcell | Turkey | 2.9 | ||||||||||||||||
| Garanti Bank | Turkey | 2.8 | ||||||||||||||||
| TSKB | Turkey | 2.7 | ||||||||||||||||
| MHP | Ukraine | 2.7 | ||||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | ||||||||||||||||||
| Market Commentary | ||||||||||||||||||
| The MSCI EM Europe 10/40 Index declined -1.1% in November in USD terms. The Company outperformed the index and was up +1.6% in USD terms. Country performance in the region was led by Greece (+9.5%) and Russia (+4.8%); whilst Turkey (-15.1%), Czech (-10.6%), Poland (-7.5%) and Hungary (-4.6%) lagged. Greece was the best performing country in the region in November amid improving GDP growth, continued progress towards the second bailout program review, and Moody's revised outlook on the country's banking system to 'stable'. Russia performed strongly following the US elections in anticipation of a Trump administration looking more favourably on Russia than its predecessor. Conversely, the strong USD and steepening of the US yield curve had a negative impact on most European currencies. Turkey, with its twin deficits, was the biggest laggard in November. However, Hungary, Poland and Czech were not immune and also saw their currencies weakening following Trump's victory. Focus on: Ferrexpo Ferrexpo is a Ukrainian iron-ore producer and a top three supplier of iron ore pellets to the steel industry globally. The company went through a cash crunch in 2015 when some of its funds got locked in a Ukrainian bank that went into administration. This coupled with the collapse in iron ore prices in late 2015 put the company's debt sustainability at risk. Since then it has significantly reduced the cost base, continued to improve its product mix and focused on servicing its debt load. As a result of these efforts Ferrexpo delivered solid first half 2016 financial results, paid-off one of its trade finance loans and demonstrated that it was able to meet the remaining debt obligations going forward. The higher iron ore price and improved investor perception of debt sustainability has resulted in excellent stock performance. We continue to believe that Ferrexpo will generate solid cash flows, and should be able to dramatically reduce its debt burden through 2017, allowing for further stock price gains. 20 December 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. | ||||||||||||||||||