11 Apr 2014 15:37
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, April 11
BLACKROCK EMERGING EUROPE PLC All information is at 31 March 2014 and unaudited. Performance at month end with net income reinvested One Three One Three *Since Month Months Year Years 30.04.09 Sterling:Share price -3.2% -11.1% -10.5% -27.4% 62.2%Net asset value (undiluted) 1.1% -9.3% -11.8% -28.7% 62.0%Net asset value (diluted) 1.1% -9.3% -9.9% -26.1% 62.1%MSCI EM Europe 10/40(TR) 1.4% -7.0% -16.4% -24.9% 50.2% US Dollars:Net asset value (undiluted) 0.6% -8.7% -3.1% -25.8% 82.4%Net asset value (diluted) 0.6% -8.7% -1.1% -23.1% 82.5%MSCI EM Europe 10/40(TR) 0.8% -6.3% -8.2% -21.9% 69.0% Sources: BlackRock, Standard & Poor's Micropal *BlackRock took over the investment management of the Company with effect from1 May 2009 Annual Performance to the Last Quarter End (Sterling) 31/3/13 31/3/12 31/3/11 31/3/10 31/3/09 31/3/14 31/3/13 31/3/12 31/3/11 31/3/10 NAV Performance -11.8% 4.0% -22.3% 21.9% 136.3%Share Price Performance -10.5% -0.7% -18.3% 18.3% 136.6% At month endNet asset value - capital only: 266.35pNet asset value** - cum income: 268.05pShare price: 238.00pTotal assets^: £107.0mDiscount (share price to cum income NAV): 11.2%Gross market exposure^^^: 110.7%Gearing range as a % of net assets: 0-20%Net Yield: 0.9%*Issued Capital - Ordinary Shares^^ 36,242,928 *Based on a dividend of 3.50 cents per share for the year ended 31 January 2014,declared on 24 March 2014 and payable on 1 July 2014 to shareholders on theregister on 23 May 2014. **Includes year to date net revenue equal to 1.7p 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 % TotalAnalysis Exposure Analysis ExposureFinancials 45.7 Russia 51.8Energy 31.4 Turkey 21.0Consumer Staples 12.7 Poland 13.4Industrials 5.9 Hungary 8.4Information Technology 5.5 Turkmenistan 6.8Materials 4.3 Romania 4.3Telecommunications 2.2 Ukraine 3.2Consumer Discretionary 1.8 Lithuania 1.8Health Care 1.2 ----- ----- 110.7 110.7 ===== ===== Short Positions 0.0Short Positions 0.0 Fifteen Largest Investments(in % order of Total Market Value as at 31.03.14) Total MarketCompany Region of Risk Value %Sberbank Russia 10.2Turkiye Halk Bankasi Turkey 7.4Turkiye Garanti Bankasi Turkey 7.0Dragon Oil Turkmenistan 6.4Surgutneftegas Russia 6.3Gazprom Russia 5.8Novatek Russia 5.3OTP Bank Hungary 4.7Jeronimo Martins Poland 4.5Magnit Russia 4.5KGHM Polska Miedz Poland 4.1Moscox Exchange MICEX Russia 4.0Globaltrans Investment Russia 3.4Mail.Ru Russia 3.3TSKB Turkey 3.3 Commenting on the markets, Sam Vecht and David Reid, representing theInvestment Manager noted; Market overviewIn March the MSCI Emerging Europe 10/40 Index returned +0.8% (in US Dollarterms). During the month, politics were a significant driver of security markets in bothRussia and Turkey. At the beginning of the month, attention was focused on events in Ukraine,particularly in the Crimean peninsula. The Russian market fell precipitously onreports that deposed Ukrainian President, Viktor Yanukovych, had requested theuse of force from the Russian military. A referendum on 16 March resulted in adeclaration of secession of Crimea, with the European Union and the United Statesdisputing the legality of the plebiscite. Consequently, travel bans and asset freezeswere placed on several Russian and Crimean officials. In subsequent weeks, tensions havesubsided somewhat as Vladimir Putin ordered a partial withdrawal of troops onthe Russian border with Eastern Ukraine. In Turkey, the market recovered strongly from the weakness at the beginning ofthe year. International investor returns were boosted by a 10% rise in the lirafrom the lows. The strength in the currency has been driven by a long awaitedreturn to a positive real interest rate environment. The campaign for municipal elections was dominated by corruption allegationssurrounding senior members of the government. In the event, the ruling AK Partysecured victory with 45% of the vote and the market has been strong, particularlyin the financial sector where banks have risen by close to 50% from their lows in February. Focus on: NovatekNovatek is Russia's largest independent gas producer. Novatek's assets are primarily centredaround Western Siberia with proven reserves of 12.5 billion barrels of oil equivalent (BOE). We believe that market expectations for operating profit underestimate thecontribution from several factors including benefits from last year's gas priceincrease, export duty tax breaks and processing at the recently launched gasprocessing facility - the Ust-Luga Complex. The company regards the processingplant as a key component in the expansion of production and allows Novatek todiversify further its revenue streams. The company has a strong productiongrowth profile and low maintenance capital expenditure plans, relative to freecash flow generation ActivityThe Company took the opportunity to add to selected positions in Russia. Thisincluded the position in Russian trading bourse, Moscow Exchange. Despite theuncertainty created by the issues in Ukraine, recent results demonstrated thatthe company has been able to grow trading volumes and increase interest incomewhile controlling operating expenses. 11 April 2014 ENDS Latest information is available by typing www.estplc.co.uk on the internet,"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICVterminal). Neither the contents of the Manager's website nor the contents ofany website accessible from hyperlinks on the Manager's website (or any otherwebsite) is incorporated into, or forms part of, this announcement.