Last checked at 20 May 2009 15:56
BLACKROCK GREATER EUROPE INVESTMENT TRUST plcAll information is at 30 April 2009 and unaudited.
Performance at month end with net income reinvested
One Three One Three Since Month Months Year Years Launch (20 Sep 04)Net asset value 10.1% 3.9% -23.0% -15.6% 41.5%Share price 9.5% -5.7% -26.4% -21.3% 28.8%
FTSE World Europe ex UK 11.5% 8.6% -26.3% -11.1% 36.1% Sources: BlackRock and Datastream
At month end
Net asset value (capital only): 131.49p Net asset value (including income): 133.19p* * includes net revenue of 1.7p
Share price: 121.00p Discount to NAV (capital only): 8.0% Discount to NAV (including income): 9.2% Gearing (including income): 1.3% Net yield: 2.5% Total assets: £144.1m** Ordinary shares in issue: 106,820,690*** ** Including current year revenue.
*** Excluding 5,568,268 shares held in treasury.
Benchmark Sector Analysis Total Assets Index (%) Country Analysis Total Assets (%) (%) Financials 26.8 24.5 France 26.4 Industrials 13.9 13.1 Germany 15.8 Health Care 10.7 9.0 Switzerland 15.5 Consumer Services 9.8 5.6 Netherlands 10.6 Consumer Goods 9.0 14.1 Spain 10.2 Oil & Gas 7.1 7.5 Emerging Europe 6.0 Telecommunications 6.9 7.4 Denmark 4.4 Basic Materials 4.9 6.5 Italy 4.0 Technology 4.2 4.0 Portugal 3.1 Utilities 2.0 8.3 Luxembourg 2.8 Other Investments 6.0 Finland 1.4 Net current liabilities (1.3) Russia 0.7 ----- ----- Ireland 0.4 100.0 100.0 Net current liabilities (1.3) ===== ===== ----- 100.0 ===== Ten Largest Equity Investments Company Country of Risk AXA France Banco Santander Spain BlackRock Eurasian Frontiers Hedge Fund Emerging Europe Credit Suisse Switzerland MAN AG Germany Nestl© Switzerland Novo-Nordisk Denmark Telef³nica Spain Total France Vivendi Universal France
Commenting on the markets, Vincent Devlin, representing the Investment Manager noted:
Following March's global fiscal stimulus and monetary easing policies, risk appetite increased in April as signs of stabilisation boosted confidence in the markets. The FTSE World Europe ex UK Index returned 11.5% in the strongest rally year to date. Aggressive sector rotation into cyclical names characterised the month as investors moved in tandem to avoid missing the rally.
During the month, the Company's NAV underperformed the reference index, returning 10.1%. The contribution from the Emerging Europe region was negative overall due to a holding in the BlackRock Eurasian Frontiers Hedge Fund which again, despite posting positive returns in the month, underperformed the market. Underperformance was also caused by being underweight in Sweden and Finland in particular, both of which experienced strong rallies in the month.
The Company suffered particularly from defensive positions which had performed strongly at the start of the year but lagged in the cyclical-led rally. In particular, media detracted as an overweight position in Vivendi underperformed and fixed line telecommunications hurt the Company as overweights in Telefonica and KPN also detracted. Elsewhere, positions in pharmaceutical companies Novo Nordisk and Sanofi Aventis detracted as the market continued to rotate out of defensives.
In contrast, the Company benefited particularly from positions in industrials, consumer goods and financials. Industrial engineer MAN AG gained from the signs of stabilisation in industrial products and inventory management. In addition, construction firms Bouygues and Lafarge contributed positively, as did positions in Banco Santander and non-life insurer AXA as perceived stability in financials saw investors continue to return to the sector.
During the month, the Company increased its exposure to the basic materials sector, adding a position in German chemical company Lanxess. The Company also re-allocated its position in financials, selling out of insurance and adding to investment and private banking, and reduced its exposure to utilities by selling out of Red El©ctrica.
On a sector view, the Company currently has a bias to consumer services, financials, industrials and health care, broadly neutral oil & gas and technology and underweight utilities, telecoms, consumer goods and basic materials.
Global economic activity deteriorated significantly in the first quarter of the year. Markets appeared to have ignored this news suggesting that much of it had already been anticipated and investors had begun to focus beyond the latest round of results. There is some early evidence of a recovery in leading indicators and earnings downward revisions have begun to slow in their magnitude. European valuations are now offering significant potential upside in a number of areas and, in particular, within the oversold mid and small capitalisation areas of the market.
Latest information is available by typing www.blackrock.co.uk/its on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).
20 May 2009
vendor