16 Mar 2017 13:37
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, March 16
| BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
| All information is at 28 February 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 | 3.8% | 12.1% | 53.6% | 27.9% | 14.8% | 114.2% | ||||||||||
| Net asset value | 1.6% | 10.7% | 51.6% | 32.4% | 17.0% | 112.0% | ||||||||||
| MSCI EM Europe | -0.8% | 9.6% | 42.9% | 9.5% | -5.4% | 62.3% | ||||||||||
| 10/40(NR) | ||||||||||||||||
| US Dollars: | ||||||||||||||||
| Share price | 2.7% | 11.7% | 37.2% | -5.0% | -10.5% | 80.0% | ||||||||||
| Net asset value | 0.5% | 10.3% | 35.4% | -1.7% | -8.8% | 78.1% | ||||||||||
| MSCI EM Europe | -1.9% | 9.2% | 27.6% | -18.7% | -26.3% | 36.3% | ||||||||||
| 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: | 425.99c | |||||||||||||||
| Net asset value* – cum income: | 433.24c | |||||||||||||||
| Sterling: | ||||||||||||||||
| Net asset value – capital only: | 342.33p | |||||||||||||||
| Net asset value* – cum income: | 348.15p | |||||||||||||||
| Share price: | 311.88p | |||||||||||||||
| Total assets^: | £125.0m | |||||||||||||||
| Discount (share price to cum income NAV): | 10.4% | |||||||||||||||
| Net cash at month end: | 3.1% | |||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||
| Issued Capital – Ordinary Shares^^ | 35,916,028 | |||||||||||||||
| Ongoing charges^^^ | 1.3% | |||||||||||||||
| * Includes year to date net revenue equal to 5.82 pence per share. | ||||||||||||||||
| ^ Total assets include current year revenue. | ||||||||||||||||
| ^^ Excluding 5,000,000 shares held in treasury. | ||||||||||||||||
| ^^^ Calculated as at 31 January 2016, in accordance with AIC guidelines. | ||||||||||||||||
| Sector | Gross assets (%) | Country | Gross assets | |||||||||||||
| Analysis | Analysis | (%) | ||||||||||||||
| Financials | 37.4 | Russia | 50.3 | |||||||||||||
| Energy | 25.3 | Turkey | 20.4 | |||||||||||||
| Consumer Staples | 8.7 | Poland | 7.9 | |||||||||||||
| Industrials | 6.2 | Greece | 7.7 | |||||||||||||
| Information Technology | 5.3 | Ukraine | 5.7 | |||||||||||||
| Health Care | 3.2 | Czech Republic | 4.9 | |||||||||||||
| Telecommunication Services | 2.9 | Romania | 0.5 | |||||||||||||
| Utilities | 2.9 | Net current assets | 3.1 | |||||||||||||
| Materials | 2.8 | |||||||||||||||
| Consumer Discretionary | 2.7 | |||||||||||||||
| Net current assets | 3.1 | |||||||||||||||
| ----- | ----- | |||||||||||||||
| 100.5 | 100.5 | |||||||||||||||
| ===== | ===== | |||||||||||||||
| Short positions | (0.0) | (0.0) | ||||||||||||||
| Fifteen Largest Investments | ||||||||||||||||
| (in % order of Gross Assets as at 28.02.17) | ||||||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||||||
| (%) | ||||||||||||||||
| Sberbank | Russia | 9.7 | ||||||||||||||
| Gazprom | Russia | 9.1 | ||||||||||||||
| Novatek | Russia | 6.5 | ||||||||||||||
| Lukoil | Russia | 5.7 | ||||||||||||||
| Moneta Money Bank | Czech Republic | 4.9 | ||||||||||||||
| PKO Bank Polski | Poland | 4.1 | ||||||||||||||
| Lenta | Russia | 4.0 | ||||||||||||||
| PZU | Poland | 3.8 | ||||||||||||||
| Halk Bank | Turkey | 3.8 | ||||||||||||||
| Globaltrans | Russia | 3.5 | ||||||||||||||
| Tupras | Turkey | 3.2 | ||||||||||||||
| MD Medical Group | Russia | 3.2 | ||||||||||||||
| National Bank of Greece | Greece | 3.0 | ||||||||||||||
| Turkcell | Turkey | 2.9 | ||||||||||||||
| Inter RAO | Russia | 2.9 | ||||||||||||||
| 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 1.9% in February in USD terms. The Company outperformed the index and was up by 0.5% in USD terms. | ||||||||||||||||
| The Central and Eastern European markets performed well, in line with the continued reflation trade. Poland (+5.1%) led, Czech Republic was up (+2.5%) whilst Hungary lagged (-2.8%). | ||||||||||||||||
| Turkey (+5.5%) was the best performing country in the region as the market rallied sharply after the central bank tightened effective rates and the currency rallied from its oversold levels. Poland (+5.1%) continued to rally, driven by the refinery names, PKN Orlen and Grupa Lotos, as refining margins surprised positively. Greece (+3.1%) rose over the month as the Greek government indicated that they were willing to meet many creditor demands, thus increasing the probability of a successful conclusion of the second review. | ||||||||||||||||
| Conversely, Russia (-6.3%) performed poorly in February as expectations diminished regarding a quick resolution on Russian sanctions. | ||||||||||||||||
| Focus on: MD Medical | ||||||||||||||||
| MD Medical is the leading player in the Russian private healthcare market for women and children, offering a full range of high-quality services including infertility treatment, diagnostics and familial care. In 2016 the company delivered strong results with 20% year on year growth in the number of deliveries and 51% year on year increase in the total number of IVF cycles driven by the ramp-up of its flagship hospitals. The company remains committed to structural growth and outlined a long-term strategy with a target to launch ten new hospitals and seven clinics by 2021. This ambitious regional expansion plan, combined with the recovery in the Russian economy, should have a big positive effect on the company’s revenues and earnings. Over the last year the stock performed well and was one of the top contributors to performance on strong margins and domestic expansion. We continue to hold the stock given its strong expansion pipeline, pricing power and inexpensive valuation. | ||||||||||||||||
| 16 March 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. | ||||||||||||||||