19 Jun 2017 17:01
BlackRock Emerging Europe Plc - Portfolio UpdateBlackRock Emerging Europe Plc - Portfolio Update
PR Newswire
London, June 19
| BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
| All information is at 31 May 2017 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 | 3.1% | 7.2% | 51.0% | 28.6% | 57.4% | 129.7% | ||||||||||||||
| Net asset value | -0.2% | 2.3% | 42.6% | 23.3% | 50.2% | 116.9% | ||||||||||||||
| MSCI EM Europe | -1.3% | 0.8% | 33.9% | 4.2% | 19.2% | 63.6% | ||||||||||||||
| 10/40(NR) | ||||||||||||||||||||
| US Dollars: | ||||||||||||||||||||
| Share price | 2.9% | 11.2% | 33.9% | -1.0% | 32.0% | 100.2% | ||||||||||||||
| Net asset value | -0.5% | 6.1% | 26.5% | -5.1% | 26.1% | 89.0% | ||||||||||||||
| MSCI EM Europe | -1.5% | 4.6% | 18.7% | -19.8% | 0.0% | 42.5% | ||||||||||||||
| 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: | 446.64c | |||||||||||||||||||
| Net asset value* – cum income: | 452.27c | |||||||||||||||||||
| Sterling: | ||||||||||||||||||||
| Net asset value – capital only: | 345.97p | |||||||||||||||||||
| Net asset value* – cum income: | 350.33p | |||||||||||||||||||
| Share price: | 328.50p | |||||||||||||||||||
| Total assets^: | £125.8m | |||||||||||||||||||
| Discount (share price to cum income NAV): | 6.2% | |||||||||||||||||||
| Net gearing at month end: | 5.0% | |||||||||||||||||||
| Net yield^^^^: | 1.8% | |||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 35,916,028 | |||||||||||||||||||
| Ongoing charges^^^ | 1.2% | |||||||||||||||||||
| * Includes year to date net revenue equal to 4.36 pence per share. | ||||||||||||||||||||
| ^ Total assets include current year revenue. | ||||||||||||||||||||
| ^^ Excluding 5,000,000 shares held in treasury. | ||||||||||||||||||||
| ^^^ Calculated as at 31 January 2017, in accordance with AIC guidelines. | ||||||||||||||||||||
| ^^^^ Yield calculations are based on dividends announced in the last 12 months as at the date of release of this announcement, and comprise of the final dividend of 7.50 cents per share, (announced on 28 March 2017, ex-dividend on 18 May 2017) | ||||||||||||||||||||
| Sector Analysis | Gross assets (%) | Country Analysis | Gross assets (%) | |||||||||||||||||
| Financials | 31.7 | Russia | 55.8 | |||||||||||||||||
| Energy | 31.4 | Turkey | 15.1 | |||||||||||||||||
| Consumer Staples | 8.6 | Poland | 12.4 | |||||||||||||||||
| Industrials | 6.9 | Greece | 8.8 | |||||||||||||||||
| Information Technology | 4.8 | Ukraine | 4.9 | |||||||||||||||||
| Telecommunication Services | 4.4 | Czech Republic | 4.4 | |||||||||||||||||
| Health Care | 3.1 | Net current liabilities | (1.7) | |||||||||||||||||
| Utilities | 3.0 | |||||||||||||||||||
| Real Estate | 2.8 | |||||||||||||||||||
| Consumer Discretionary | 2.4 | |||||||||||||||||||
| Basic Materials | 2.3 | |||||||||||||||||||
| Net current liabilities | (1.7) | |||||||||||||||||||
| ----- | ----- | |||||||||||||||||||
| 99.7 | 99.7 | |||||||||||||||||||
| ===== | ===== | |||||||||||||||||||
| Short positions | (1.7) | (1.7) | ||||||||||||||||||
| Fifteen Largest Investments | ||||||||||||||||||||
| (in % order of Gross Assets as at 31.05.17) | ||||||||||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||||||||||
| (%) | ||||||||||||||||||||
| Gazprom | Russia | 10.5 | ||||||||||||||||||
| Sberbank | Russia | 9.1 | ||||||||||||||||||
| Novatek | Russia | 6.6 | ||||||||||||||||||
| Lukoil | Russia | 5.0 | ||||||||||||||||||
| Moneta Money Bank | Czech Republic | 4.4 | ||||||||||||||||||
| Rosneft | Russia | 4.2 | ||||||||||||||||||
| PKO Bank Polski | Poland | 4.2 | ||||||||||||||||||
| Lenta | Russia | 4.1 | ||||||||||||||||||
| PZU | Poland | 3.8 | ||||||||||||||||||
| Globaltrans | Russia | 3.5 | ||||||||||||||||||
| National Bank of Greece | Greece | 3.5 | ||||||||||||||||||
| Turk Hava Yollari | Turkey | 3.4 | ||||||||||||||||||
| Tupras | Turkey | 3.2 | ||||||||||||||||||
| MD Medical Group | Russia | 3.1 | ||||||||||||||||||
| Inter RAO | Russia | 3.0 | ||||||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted: | ||||||||||||||||||||
| Market Commentary | ||||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned -1.5% in May in USD terms. The Company outperformed the index and returned -0.5% in USD terms. | ||||||||||||||||||||
| All countries in the regions posted positive returns except Russia, which was down over the month. | ||||||||||||||||||||
| Greek markets (+14.0%) rallied following the Greek government and its creditors finally reaching a preliminary agreement on details of the reforms to unlock the next disbursement from its €86bn bailout. Current expectations are that a final agreement may be reached as soon as the end of June. | ||||||||||||||||||||
| Turkish 1Q earnings beat expectations causing analysts to lift their full year estimates and the market to rise by +3.1% during May. In Central Europe, Hungary (+10.9%) and Czech (+6.2%) outperformed the region while Poland (+0.2%) lagged. The region got a boost from the stronger EUR vs USD (+3.2%) while each currency in CE3 also appreciated against the EUR: Zloty +1.1% stronger, Koruna +1.8% and Forint +1.5%. The region has also posted strong GDP vs consensus for the first quarter and the central banks in the region decided to leave rates on hold in May. | ||||||||||||||||||||
| Russia (-6.2%) declined over the month in line with oil producing countries in EM. Brent crude saw its fifth straight monthly decline despite OPEC led output cuts being extended by nine months to March 2018. The extension caused a brief rally in Brent to $54.55 on May 24, however, over the month as a whole, Brent fell back to $50 on soaring US crude oil production. | ||||||||||||||||||||
| Focus on: Greece bailout review progress | ||||||||||||||||||||
| Following an 11% gain in April, the Greek market jumped by 14% in May as progress was made on the 2nd review of the third bailout. In early May, Greece agreed a preliminary deal with its creditors and the International Monetary Fund on reforms that would need to be enacted before the country would receive the next tranche of its bailout. The deal covers a wide range of fiscal and structural measures, from fresh cuts in pensions to liberalising Sunday trading. In total 140 actions were required and by the end of the month more than 115 had been completed. | ||||||||||||||||||||
| With the Greek government close to completing their requirements the discussion will now turn to what sort of debt relief the IMF and Euro Working Group can agree on. As always, the hardest part of the discussions is usually at the final stages, but talks appear to be making progress towards a solution acceptable to all sides. For the Greek government the optimum outcome would be to achieve a comprehensive deal that would allow Greek government debt to be eligible for the ECB’s quantitative easing program, thus lowering funding costs and providing confidence to international investors that Greece is once more open for business. If this is achieved we believe that it’s likely the market will continue its positive trajectory. | ||||||||||||||||||||
| 19 June 2017 | ||||||||||||||||||||
| 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. | ||||||||||||||||||||