15 Apr 2016 15:53
BLACKROCK EMERGING EUROPE PLC - Portfolio UpdateBLACKROCK EMERGING EUROPE PLC - Portfolio Update
PR Newswire
London, April 15
| BLACKROCK EMERGING EUROPE PLC |
| All information is at 31 March 2016 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 | 9.1% | 9.8% | 2.0% | -16.1% | -32.0% | 52.1% | |||||||||||||
| Net asset value | 10.7% | 11.0% | 4.2% | -15.7% | -31.9% | 54.8% | |||||||||||||
| MSCI EM Europe 10/40(NR) | 12.6% | 17.2% | -1.1% | -28.9% | -36.1% | 27.8% | |||||||||||||
| US Dollars: | |||||||||||||||||||
| Share price | 12.5% | 7.1% | -1.2% | -20.5% | -39.0% | 47.6% | |||||||||||||
| Net asset value | 14.2% | 8.2% | 0.8% | -20.2% | -38.9% | 50.2% | |||||||||||||
| MSCI EM Europe 10/40 (NR) | 16.1% | 14.3% | -4.3% | -32.7% | -42.7% | 23.9% | |||||||||||||
| Sources: BlackRock, Standard & Poor’s Micropal | |||||||||||||||||||
| *BlackRock took over the investment management of the Company with effect from 1 May 2009 | |||||||||||||||||||
| At month end | |||||||||||||||||||
| Net asset value – capital only: | 253.75p | ||||||||||||||||||
| Net asset value** – cum income: | 254.20p | ||||||||||||||||||
| Share price: | 221.38p | ||||||||||||||||||
| Total assets^: | £92.0m | ||||||||||||||||||
| Discount (share price to cum income NAV): | 12.9% | ||||||||||||||||||
| Gross market exposure^^^: | 108.6% | ||||||||||||||||||
| Gearing at month end: | 6.7% | ||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | ||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 36,186,128 | ||||||||||||||||||
| Ongoing charges* | 1.3% | ||||||||||||||||||
| * Calculated as at 31 January 2016, in accordance with AIC guidelines. | |||||||||||||||||||
| ** Includes year to date net revenue equal to 0.45 pence 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 | % Total | ||||||||||||||||
| Analysis | Exposure | Analysis | Exposure | ||||||||||||||||
| Financials | 42.2 | Russia | 45.3 | ||||||||||||||||
| Energy | 21.5 | Turkey | 20.8 | ||||||||||||||||
| Information Technology | 9.9 | Poland | 16.0 | ||||||||||||||||
| Consumer Discretionary | 6.7 | Greece | 8.3 | ||||||||||||||||
| Basic Materials | 6.5 | Kazakhstan | 4.3 | ||||||||||||||||
| Consumer Staples | 6.1 | Ukraine | 2.6 | ||||||||||||||||
| Industrials | 3.9 | Romania | 1.8 | ||||||||||||||||
| Utilities | 2.9 | Lithuania | 1.5 | ||||||||||||||||
| Health Care | 0.9 | Net current liabilities | (0.6) | ||||||||||||||||
| Net current liabilities | (0.6) | ||||||||||||||||||
| ----- | ----- | ||||||||||||||||||
| 100.0 | 100.0 | ||||||||||||||||||
| ===== | ===== | ||||||||||||||||||
| Short positions | (0.0) | (0.0) | |||||||||||||||||
| Fifteen Largest Investments | |||||||||||||||||||
| (in % order of Total Market Exposure as at 31.03.16) | |||||||||||||||||||
| Total Market | |||||||||||||||||||
| Company | Region of Risk | Exposure % | |||||||||||||||||
| Sberbank | Russia | 8.0 | |||||||||||||||||
| PKO Bank Polski | Poland | 6.6 | |||||||||||||||||
| Halk Bank | Turkey | 6.2 | |||||||||||||||||
| PZU | Poland | 6.0 | |||||||||||||||||
| Gazprom | Russia | 5.1 | |||||||||||||||||
| Novatek | Russia | 4.8 | |||||||||||||||||
| Mail.Ru | Russia | 4.7 | |||||||||||||||||
| KazMunaiGas Exploration Production | Kazakhstan | 4.3 | |||||||||||||||||
| Lukoil | Russia | 4.2 | |||||||||||||||||
| Globaltrans | Russia | 3.9 | |||||||||||||||||
| TSKB | Turkey | 3.7 | |||||||||||||||||
| Coca Cola Icecek | Turkey | 3.6 | |||||||||||||||||
| Luxoft | Russia | 3.5 | |||||||||||||||||
| KGHM | Poland | 3.4 | |||||||||||||||||
| OPAP | Greece | 3.4 | |||||||||||||||||
| Commenting on the markets, Sam Vecht and Chris Colunga, representing the Investment Manager noted; | |||||||||||||||||||
| Market Commentary | |||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned 16.1% in March in USD terms. March was a remarkably strong month across all Emerging Markets and the Emerging European region was no exception. Returns to emerging markets currencies during the month were the highest since 1998, a fact which spurred renewed media interest in the asset class. The momentum was driven by concerns over the hawkishness of central banks and Chinese economic growth subsiding, both of which had been key factors in last year’s Emerging Markets sell-off. Greece was the leading major market in the region, as negotiations on the First Review of the bailout made significant progress. As always, the hardest part of the discussions are usually at the final stages, but the climate of the talks has been much more co-operative than in 2015 and market expectations had been set relatively low. Russia also performed strongly, benefitting from strong oil prices and an improved geo-political climate following the scaling-back of their military operations in Syria and the increased diplomacy that followed. Focus on: Russian Economic Improvements Russia ended 2015 with a GDP contraction of 3.8%. This headline figure is negative although understandable given what has happened to the oil price over the last two years. But it is important to understand that it is a lagging indicator. Higher-frequency data is already starting to point to improvements. Industrial production in February rose year-on-year, for the first time in thirteen months. Inflation in March has dropped to 7.3%, from 16.9% just a year ago. Rail cargo transport of building materials was up by 21% year-on-year in the same month. This all demonstrates that Russia has stabilised its economic activity through a sharp economic adjustment, as the cheap currency has acted to restore economic competitiveness. For example nominal monthly wages in Russia in 2015 ended up even cheaper than China. The country still needs to work on its fiscal position, with a moderate budget deficit of 3% of GDP estimated for this year, but has otherwise put itself in a position to recover as the cycle improves. | |||||||||||||||||||
| 15 April 2016 | |||||||||||||||||||
| 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. | |||||||||||||||||||