11 May 2017 14:09
BlackRock Emerging Europe Plc - Portfolio UpdateBlackRock Emerging Europe Plc - Portfolio Update
PR Newswire
London, May 11
| BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
| All information is at 30 April 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 | 2.0% | 7.9% | 41.6% | 38.1% | 28.6% | 122.7% | ||||||||
| Net asset value | 1.7% | 4.2% | 38.3% | 40.0% | 28.9% | 117.4% | ||||||||
| MSCI EM Europe | 1.0% | 1.3% | 27.5% | 14.8% | 4.8% | 65.7% | ||||||||
| 10/40(NR) | ||||||||||||||
| US Dollars: | ||||||||||||||
| Share price | 5.5% | 11.0% | 25.1% | 5.8% | 2.5% | 94.6% | ||||||||
| Net asset value | 5.2% | 7.1% | 22.1% | 7.2% | 2.7% | 89.9% | ||||||||
| MSCI EM Europe | 4.4% | 4.2% | 12.6% | -12.0% | -16.5% | 44.6% | ||||||||
| 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: | 449.42c | |||||||||||||
| Net asset value* – cum income: | 461.92c | |||||||||||||
| Sterling: | ||||||||||||||
| Net asset value – capital only: | 347.36p | |||||||||||||
| Net asset value* – cum income: | 357.02p | |||||||||||||
| Share price: | 324.25p | |||||||||||||
| Total assets^: | £128.2m | |||||||||||||
| Discount (share price to cum income NAV): | 9.2% | |||||||||||||
| Net gearing at month end: | 2.1% | |||||||||||||
| 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 9.66 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 | 32.8 | Russia | 60.4 | |||||||||||
| Energy | 32.6 | Turkey | 15.9 | |||||||||||
| Consumer Staples | 9.3 | Poland | 10.6 | |||||||||||
| Industrials | 7.6 | Greece | 8.6 | |||||||||||
| Information Technology | 5.6 | Ukraine | 5.1 | |||||||||||
| Utilities | 3.2 | Czech Republic | 4.4 | |||||||||||
| Health Care | 3.2 | Net current liabilities | (1.5) | |||||||||||
| Telecommunication Services | 2.8 | |||||||||||||
| Materials | 2.8 | |||||||||||||
| Real Estate | 2.8 | |||||||||||||
| Consumer Discretionary | 2.3 | |||||||||||||
| Net current liabilities | (1.5) | |||||||||||||
| ----- | ----- | |||||||||||||
| 103.5 | 103.5 | |||||||||||||
| ===== | ===== | |||||||||||||
| Short positions | (0.9) | (0.9) | ||||||||||||
| Fifteen Largest Investments | ||||||||||||||
| (in % order of Gross Assets as at 30.04.17) | ||||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||||
| (%) | ||||||||||||||
| Gazprom | Russia | 12.7 | ||||||||||||
| Sberbank | Russia | 10.3 | ||||||||||||
| Novatek | Russia | 7.6 | ||||||||||||
| Lukoil | Russia | 5.5 | ||||||||||||
| Lenta | Russia | 4.5 | ||||||||||||
| Moneta Money Bank | Czech Republic | 4.4 | ||||||||||||
| Turk Hava Yollari | Turkey | 4.1 | ||||||||||||
| PKO Bank Polski | Poland | 4.1 | ||||||||||||
| Rosneft | Russia | 3.7 | ||||||||||||
| PZU | Poland | 3.7 | ||||||||||||
| Globaltrans | Russia | 3.5 | ||||||||||||
| National Bank of Greece | Greece | 3.2 | ||||||||||||
| Inter RAO | Russia | 3.2 | ||||||||||||
| Mail.Ru | Russia | 3.2 | ||||||||||||
| MD Medical Group | Russia | 3.2 | ||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | ||||||||||||||
| Market Commentary | ||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned +4.4% in April in USD terms. The Company outperformed the index and was up by 5.2% in USD terms. | ||||||||||||||
| All countries in the region posted positive returns except for Russia, which was slightly down (-0.3%) over the month. | ||||||||||||||
| Turkey (+11.7%) led in the region following the constitutional referendum result which alleviated some investor concerns regarding political uncertainty. The ‘Yes’ vote won the referendum with 51.4% of the vote to change Turkey from a parliamentary democracy to a presidential republic, cementing Erdogan’s position. Poland (+11.5%) continued to perform strongly in anticipation of the reflation trade improving the banks’ earnings. Greece (+11.3%) rallied in expectation of a deal being struck with its creditors, thus breaking the latest deadlock over the country’s rescue and paving the way for €7bn in aid. Czech Republic was up (+5.3%) following the lifting of its FX peg against the Euro. | ||||||||||||||
| Russia fell slightly (-0.3%) in April as Brent crude dropped to US$50.9/bbl on strong US shale production numbers and still high inventories. At the end of April the Central Bank of Russia cut rates by 50 bps, more than the 25 bps consensus, in light of the lower than expected inflation. | ||||||||||||||
| Focus on: Powszechny Zaklad Ubezpieczen (PZU) | ||||||||||||||
| PZU is Poland’s largest insurance company with both life and non-life segments for over 16m customers. Its scale and unparalleled distribution network, both through direct sales and 12 thousand agents, provide a strong competitive advantage that enables the company to generate attractive returns. | ||||||||||||||
| The stock had a difficult 2016 due to poor investment income given depressed bond yields in Poland, and a change in the management team and in strategy creating questions regarding the deployment of excess capital. In 4Q 2016, the company acquired Bank Pekao, one of the largest and most profitable banks in Poland. The deal happened at an attractive price, which allowed PZU to increase investment income yield and maintain a strong dividend. The core insurance business has also seen positive dynamics, with large price hikes and falling operating costs. As a result, since the start of the year, the stock has performed well as the market recognised the significant earnings growth and the company reaffirmed the dividend policy. | ||||||||||||||
| 11 May 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. | ||||||||||||||