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16 Jun 2016 14:34
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, June 16
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 31 May 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 | -3.3% | 9.1% | -4.5% | -16.2% | -29.4% | 52.1% | |||||||||||||
| Net asset value | -3.3% | 8.8% | -4.4% | -16.0% | -28.8% | 52.1% | |||||||||||||
| MSCI EM Europe 10/40(NR) | -5.9% | 7.6% | -9.2% | -30.6% | -35.7% | 22.2% | |||||||||||||
| US Dollars: | |||||||||||||||||||
| Share price | -3.9% | 14.0% | -8.9% | -19.6% | -37.5% | 49.5% | |||||||||||||
| Net asset value | -3.9% | 13.6% | -8.8% | -19.4% | -37.0% | 49.5% | |||||||||||||
| MSCI EM Europe 10/40(NR) | -6.6% | 12.4% | -13.4% | -33.4% | -43.1% | 20.0% | |||||||||||||
| 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: | 247.65p | ||||||||||||||||||
| Net asset value** – cum income: | 249.76p | ||||||||||||||||||
| Share price: | 221.50p | ||||||||||||||||||
| Total assets^: | £90.4m | ||||||||||||||||||
| Discount (share price to cum income NAV): | 11.3% | ||||||||||||||||||
| Gross market exposure^^^: | 107.5% | ||||||||||||||||||
| Gearing at month end: | 5.8% | ||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,186,128 | ||||||||||||||||||
| Ongoing charges* | 1.3% | ||||||||||||||||||
| * Calculated as at 31 January 2016, in accordance with AIC guidelines. | |||||||||||||||||||
| ** Includes year to date net revenue equal to 2.11 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 | 39.9 | Russia | 46.2 | ||||||||||||||||
| Energy | 22.1 | Turkey | 18.9 | ||||||||||||||||
| Information Technology | 9.8 | Poland | 12.2 | ||||||||||||||||
| Basic Materials | 8.3 | Greece | 8.9 | ||||||||||||||||
| Consumer Staples | 7.7 | Ukraine | 6.5 | ||||||||||||||||
| Consumer Discretionary | 4.4 | Kazakhstan | 4.0 | ||||||||||||||||
| Industrials | 3.6 | Romania | 1.6 | ||||||||||||||||
| Utilities | 3.1 | Lithuania | 1.4 | ||||||||||||||||
| Health Care | 0.8 | Net current assets | 0.3 | ||||||||||||||||
| Net current assets | 0.3 | ||||||||||||||||||
| ----- | ----- | ||||||||||||||||||
| 100.0 | 100.0 | ||||||||||||||||||
| ===== | ===== | ||||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||||
| (in % order of Total Market Exposure as at 31.05.16) | |||||||||||||||||||
| Total Market | |||||||||||||||||||
| Company | Region of Risk | Exposure % | |||||||||||||||||
| Sberbank | Russia | 9.9 | |||||||||||||||||
| PKO Bank Polski | Poland | 5.6 | |||||||||||||||||
| Novatek | Russia | 5.4 | |||||||||||||||||
| Norilsk Nickel | Russia | 5.3 | |||||||||||||||||
| Gazprom | Russia | 5.2 | |||||||||||||||||
| Halk Bank | Turkey | 5.0 | |||||||||||||||||
| Mail.Ru | Russia | 4.3 | |||||||||||||||||
| Lukoil | Russia | 4.2 | |||||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 4.0 | |||||||||||||||||
| Luxoft | Russia | 3.8 | |||||||||||||||||
| PZU | Poland | 3.6 | |||||||||||||||||
| Globaltrans | Russia | 3.6 | |||||||||||||||||
| Alpha Bank | Greece | 3.5 | |||||||||||||||||
| TSKB | Turkey | 3.4 | |||||||||||||||||
| Garanti Bank | Turkey | 3.2 | |||||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | |||||||||||||||||||
| Market Commentary | |||||||||||||||||||
| The MSCI EM Europe 10/40 Index returned -6.6% in May in US dollar terms. The Emerging Europe universe struggled in May giving up some of the gains of the last three months. While the region’s equity markets have enjoyed one of the strongest starts to a year in a decade and some of the strongest outperformance relative to global equities in almost two decades, emerging markets overall reacted negatively to Federal Reserve minutes that were more hawkish therefore putting a possible June rate hike back on the table. Within the region, and within emerging markets overall, Greece was the best performer returning +12% in US dollar terms. Greece rallied as the country continued to make progress towards a bailout programme. Conversely, the Russian equity market fell by almost 6% in May, but remains a strong performer in the year to date. Turkey fell by almost 14% in May as politics continued to dominate the headlines in that country. April’s speculation turned into May’s reality as President Erdogan dismissed the Prime Minister early in the month. These events drove the currency lower leading to its worst month since December 2013, which, interestingly, was also full of political risks too. Focus on: KazMunaiGaz, Alpha Bank and Halkbank In Greece, the expected Eurogroup approval of the First Review of the Third Memorandum (bailout programme), along with the indication of IMF support helped drive that market higher. The Company benefited from its position in Alpha Bank. We remain positive on our holding in Alpha Bank which, along with the Greek economy and assets, stands to benefit from a finalized bailout package. Our position in KazMunaiGaz in Kazahkstan benefited the Company as Brent rose to over $48 and even briefly traded above $50 for the first time since October 2015. We like the stock given it is deep value, has a very large cash pile and is a potential M&A target. Conversely, weighing on the Company was Halk Bank in Turkey, which as a state bank, has been under pressure with regards to the flare up in the political situation in May. We remain positive on the stock because it has one of the highest profitability levels at one of the cheapest valuations in the sector. | |||||||||||||||||||
| 16 June 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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