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24 Nov 2015 11:23
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, November 24
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 31 October 2015 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 | 10.1% | -2.9% | -11.4% | -18.4% | -32.7% | 38.7% | ||||||||||||
| Net asset value | 8.2% | -0.7% | -11.0% | -17.9% | -29.2% | 38.6% | ||||||||||||
| MSCI EM Europe | 3.6% | -5.5% | -20.3% | -28.4% | -34.6% | 15.9% | ||||||||||||
| 10/40(NR) | ||||||||||||||||||
| US Dollars: | ||||||||||||||||||
| Share price | 12.2% | -3.9% | -14.4% | -21.8% | -34.9% | 44.7% | ||||||||||||
| Net asset value | 10.3% | -1.7% | -14.1% | -21.3% | -31.6% | 44.5% | ||||||||||||
| MSCI EM Europe | 5.6% | -6.4% | -23.0% | -31.3% | -36.8% | 20.8% | ||||||||||||
| 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 | ||||||||||||||||||
| Net asset value – capital only: | 225.59p | |||||||||||||||||
| Net asset value** – cum income: | 227.54p | |||||||||||||||||
| Share price: | 202.00p | |||||||||||||||||
| Total assets^: | £87.8m | |||||||||||||||||
| Discount (share price to cum income NAV): | 11.2% | |||||||||||||||||
| Gross market exposure^^^: | 103.3% | |||||||||||||||||
| Gearing at month end: | nil | |||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,242,928 | |||||||||||||||||
| Ongoing charges* | 1.3% | |||||||||||||||||
| * Calculated as at 31 January 2015, in accordance with AIC guidelines. | ||||||||||||||||||
| ** Includes year to date net revenue equal to 1.95 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 | 51.8 | |||||||||||||||
| Energy | 24.5 | Turkey | 24.1 | |||||||||||||||
| Information Technology | 10.0 | Poland | 7.7 | |||||||||||||||
| Consumer Staples | 9.8 | Greece | 4.6 | |||||||||||||||
| Consumer Discretionary | 4.7 | Romania | 4.3 | |||||||||||||||
| Industrials | 4.2 | Kazakhstan | 3.7 | |||||||||||||||
| Telecommunications | 4.1 | Ukraine | 3.4 | |||||||||||||||
| Basic Material | 2.3 | Lithuania | 1.6 | |||||||||||||||
| Utilities Health Care | 0.9 0.8 | |||||||||||||||||
| ----- | ----- | |||||||||||||||||
| 101.2 | 101.2 | |||||||||||||||||
| ===== | ===== | |||||||||||||||||
| Short positions | (2.1) | (2.1) | ||||||||||||||||
| Fifteen Largest Investments | ||||||||||||||||||
| (in % order of Total Market Exposure as at 31.10.15) | ||||||||||||||||||
| Total Market | ||||||||||||||||||
| Company | Region of Risk | Exposure % | ||||||||||||||||
| Sberbank | Russia | 8.4 | ||||||||||||||||
| Halk Bank | Turkey | 8.1 | ||||||||||||||||
| Lukoil Gazprom PKO Bank Polski | Russia Russia Poland | 6.7 5.9 5.3 | ||||||||||||||||
| Novatek | Russia | 4.6 | ||||||||||||||||
| Mail.Ru | Russia | 4.5 | ||||||||||||||||
| BRD Groupe Societe Generale - CFD | Romania | 4.3 | ||||||||||||||||
| Garanti Bank Globaltrans TSKB | Turkey Russia Turkey | 4.2 4.2 4.1 | ||||||||||||||||
| KazMunaiGas Exploration Production Yandex | Kazakhstan Russia | 3.7 3.6 | ||||||||||||||||
| Coca Cola Icecek MHP | Turkey Ukraine | 3.5 3.4 | ||||||||||||||||
| Commenting on the markets, Sam Vecht and David Reid, representing the Investment Manager noted; | ||||||||||||||||||
| Market Commentary | ||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned 5.6% in October in USD Terms. | ||||||||||||||||||
| The performance of the region represented a sharp reversal from previous months. The rally in Emerging Europe was symptomatic of broader Global Emerging Market performance. Previously unfavoured countries such as Greece and Russia performed strongly in the wake of the US Federal Reserve’s decision to delay interest rate rises. The improvement in Chinese economic data also improved risk appetite. | ||||||||||||||||||
| Turkey was able to participate fully in the rally due to the removal of political uncertainty surrounding parliamentary elections. This had concerned investors as the previous election results provided no clear winner and coalition negotiations failed. However, since the month end, new elections paved the way for the AK Party to form a government, providing some much needed stability. | ||||||||||||||||||
| Focus On: Greek Banks | ||||||||||||||||||
| The acute phase of the Greek sovereign debt crisis appeared to conclude with the agreement for a third bailout plan. Although mainstream headlines have receded in recent weeks, it remains vital to continue the economic healing process, with recapitalising the financial sector now a priority. | ||||||||||||||||||
| The European institutions have performed stress tests on the nation’s banks under ‘Baseline’ and ‘Adverse’ scenarios. The authorities ruled that any bank which raises sufficient private capital to meet the Baseline scenario is viable and should have access to state aid in order to reach the threshold to meet the Adverse scenario, where they should be strong enough to resist even a major downturn. The amount the banks were required to raise was substantially lower than expectations, indicating their financial health was somewhat better than some feared, but it is still a large amount of capital. | ||||||||||||||||||
| In the run-up to the capital raises, the team will, as always, be asking ‘what is already reflected in the price?’ With Greek economic data suggesting that the recession is coming to an end and the prospect of fresh capital entering the Greek financial system, close analysis of bank balance sheets could reveal an underappreciated opportunity. | ||||||||||||||||||
| 24 November 2015 | ||||||||||||||||||
| 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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