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21 Sep 2018 15:04
BlackRock Emerging Europe Plc - Portfolio UpdateBlackRock Emerging Europe Plc - Portfolio Update
PR Newswire
London, September 21
| BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) | ||||||||||||
| All information is at 31 August 2018 and unaudited. | ||||||||||||
| Performance at month end with net income reinvested | ||||||||||||
| PLEASE NOTE THAT THE BOARD OF BLACKROCK EMERGING EUROPE PLC ANNOUNCED ON 17 AUGUST THAT IT INTENDS TO PUT FORWARD PROPOSALS TO PUT THE COMPANY INTO VOLUNTARY LIQUIDATION. SHAREHOLDERS WILL BE GIVEN THE OPTION OF ELECTING TO RECEIVE CASH AT NET ASSET VALUE LESS COSTS AND/OR ROLLING THEIR INVESTMENT INTO NEW C SHARES TO BE ISSUED BY BLACKROCK FRONTIERS INVESTMENT TRUST PLC. A COPY OF THE ANNOUCEMENT CAN BE FOUND AT www.blackrock.com/uk/individual/literature/shareholder-letters/blackrock-emerging-europe-plc-en-gb-shareholder-letters.pdf. THE COMPANY'S PORTFOLIO WIL REMAIN FULLY INVESTED ACCORDING TO ITS INVESTMENT POLICY UNTIL THE ABOVE PROPOSALS HAVE BEEN APPROVED BY SHAREHOLDERS AT THE RELEVANT GENERAL MEETING (EXPECTED TO BE HELD IN NOVEMBER 2018). | ||||||||||||
| One | Three | One | Three | Five | *Since | |||||||
| Month | Months | Year | Years | Years | 30.04.09 | |||||||
| Sterling: | ||||||||||||
| Share price | -6.5 | -2.4 | -2.9 | 83.1 | 33.3 | 130.3 | ||||||
| Net asset value | -6.9 | -4.1 | -10.1 | 59.4 | 23.4 | 111.1 | ||||||
| MSCI EM Europe | -6.2 | -1.9 | -9.3 | 43.7 | 3.2 | 65.4 | ||||||
| 10/40(NR) | ||||||||||||
| US Dollars: | ||||||||||||
| Share price | -7.3 | -4.7 | -2.1 | 54.7 | 11.9 | 102.0 | ||||||
| Net asset value | -7.8 | -6.3 | -9.4 | 34.9 | 3.7 | 85.2 | ||||||
| MSCI EM Europe | -7.1 | -4.2 | -8.5 | 21.4 | -13.3 | 45.1 | ||||||
| 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: | 420.30c | |||||||||||
| Net asset value* – cum income: | 429.53c | |||||||||||
| Sterling: | ||||||||||||
| Net asset value – capital only: | 323.38p | |||||||||||
| Net asset value* – cum income: | 330.48p | |||||||||||
| Share price: | 319.00p | |||||||||||
| Total assets^: | £118.7m | |||||||||||
| Discount (share price to cum income NAV): | 3.5% | |||||||||||
| Net gearing at month end: | 2.2% | |||||||||||
| Net yield^^^^: | 3.5% | |||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||
| Issued Capital – Ordinary Shares^^ | 35,916,028 | |||||||||||
| Ongoing charges^^^ | 1.1% | |||||||||||
| * Includes year to date net revenue equal to 7.10 pence per share. | ||||||||||||
| ^ Total assets include current year revenue. | ||||||||||||
| ^^ Excluding 5,000,000 shares held in treasury. | ||||||||||||
| ^^^ Calculated as at 31 January 2018, 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 15.00 cents per share, (announced on 23 March 2018, ex-dividend on 17 May 2018) | ||||||||||||
| Sector Analysis | Gross assets (%) | Country Analysis | Gross assets (%) | |||||||||
| Financials | 37.3 | Russia | 61.8 | |||||||||
| Energy | 35.6 | Poland | 18.6 | |||||||||
| Consumer Staples | 7.7 | Greece | 6.1 | |||||||||
| Materials | 5.3 | Hungary | 5.7 | |||||||||
| Information Technology | 4.6 | Turkey | 2.9 | |||||||||
| Telecommunications Service | 4.6 | Ukraine | 2.4 | |||||||||
| Health Care | 4.2 | Pan-Emerging Europe | 3.1 | |||||||||
| Consumer Discretionary | 1.3 | Net Current Liabilities | (0.6) | |||||||||
| Net Current Liabilities | (0.6) | ----- | ||||||||||
| ----- | 100.0 | |||||||||||
| 100.0 | ===== | |||||||||||
| ===== | ||||||||||||
| Fifteen Largest Investments | ||||||||||||
| (in % order of Gross Assets as at 31.08.18) | ||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||
| (%) | ||||||||||||
| Lukoil | Russia | 12.7 | ||||||||||
| Sberbank | Russia | 11.8 | ||||||||||
| Gazprom | Russia | 8.2 | ||||||||||
| Novatek | Russia | 6.6 | ||||||||||
| Rosneft Oil Company | Russia | 5.7 | ||||||||||
| PKO Bank Polski | Poland | 5.4 | ||||||||||
| Alior Bank | Poland | 4.7 | ||||||||||
| PZU | Poland | 4.4 | ||||||||||
| Gedeon Richter | Hungary | 4.2 | ||||||||||
| Norlisk Nickel | Russia | 4.0 | ||||||||||
| Lenta | Russia | 3.7 | ||||||||||
| Mobile Telesystems | Russia | 3.4 | ||||||||||
| Bank Pekao | Poland | 3.2 | ||||||||||
| National Bank of Greece | Greece | 3.2 | ||||||||||
| Yandex | Russia | 3.1 | ||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | ||||||||||||
| Market Commentary | ||||||||||||
| The MSCI Emerging Europe 10/40 Index declined by 7.1% in August 2018 (in USD terms). Hungary rose by 1.6% and outperformed Poland (+0.8%) and the Czech Republic (-2.1%) in August. Russia was down by 6.0% mostly from Ruble weakness despite the strong positive impact on its economy from the oil price. Russian equities are standing out as having very attractive valuations as the combination of high oil prices and a weak Ruble are significantly benefiting the local economy. Greece (-9.8%) was down in August, falling in line with the European financial sell off. Turkish equities (-29.0%) continued to be under pressure. The deteriorating external balance and reliance on external funding has finally impacted all liquid Turkish asset prices. Whilst a lot of pain has been experienced by the Turkish markets, we expect the impact on the economy of recent developments to materialize in the next few months as a significant slowdown in GDP growth. The Company’s NAV returned -7.8% in August 2018 (in US Dollar terms), underperforming its benchmark, the MSCI Emerging Europe 10/40 Index, driven primarily by our stock picks in Russia but offset by our underweight allocation to Turkey. Sberbank was the main detractor for the month. The threat of new sanctions hit the stock hard (-22.6%) even as the underlying operations were seeing earning upgrades. We continue to be of the view that Russian equities look incredibly cheap to us as does the currency providing an excellent opportunity once the sanction threat is lifted. The underweight in Turkey continued to benefit relative performance as persistent inflation and concerns around trade continued to put pressure on the Lira. The portfolio has an exposure to Turkish listed stocks of 2.9%. At the end of August, the portfolio is underweight Turkey and Materials. It is overweight Russia and Financials. Source: BlackRock, MSCI, data as at end August 2018. | ||||||||||||
| 21 September 2018 | ||||||||||||
| 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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