BlackRock Emerging Europe Plc - Portfolio Update
November 21 2017 - 9:25AM
PR Newswire (US)
BLACKROCK EMERGING EUROPE PLC
(LEI - 549300OGTQA24Y3KMI14) |
All information is at 31 October
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 |
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|
Sterling: |
|
|
|
|
|
|
|
|
Share price |
2.2 |
7.9 |
26.7 |
56.3 |
43.8 |
144.6 |
|
|
Net asset value |
1.3 |
5.3 |
18.2 |
46.4 |
35.0 |
127.9 |
|
|
MSCI EM Europe |
0.9 |
4.1 |
13.7 |
19.9 |
7.7 |
74.3 |
|
|
10/40(NR) |
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|
|
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|
US Dollars: |
|
|
|
|
|
|
|
|
Share price |
1.1 |
8.8 |
37.8 |
29.7 |
18.5 |
119.2 |
|
|
Net asset value |
0.3 |
6.0 |
28.5 |
21.5 |
11.3 |
104.3 |
|
|
MSCI EM Europe |
-0.1 |
4.9 |
23.7 |
-0.5 |
-11.24 |
56.2 |
|
|
10/40(NR) |
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Sources: BlackRock,
Standard & Poor’s Micropal |
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*BlackRock took over
the investment management of the Company with effect from 1 May
2009 |
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At month end |
|
|
|
US Dollar: |
|
|
|
Net asset value –
capital only: |
473.47c |
|
|
Net asset value* – cum
income: |
488.77c |
|
|
Sterling: |
|
|
|
Net asset value –
capital only: |
356.52p |
|
|
Net asset value* – cum
income: |
368.04p |
|
|
Share price: |
349.75p |
|
|
Total assets^: |
£132.2m |
|
|
Discount (share price to
cum income NAV): |
5.0% |
|
|
Net cash at month
end: |
3.1% |
|
|
Net yield^^^^: |
1.7% |
|
|
Gearing range as a % of
Net assets: |
0-20% |
|
|
Issued Capital –
Ordinary Shares^^ |
35,916,028 |
|
|
Ongoing charges^^^ |
1.2% |
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* Includes year to date
net revenue equal to 11.52 pence per share. |
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^ Total assets include
current year revenue. |
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^^ Excluding 5,000,000
shares held in treasury. |
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^^^ Calculated as at 31
January 2017, in accordance with AIC guidelines. |
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^^^^ 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 7.50 cents per share, (announced on 28 March 2017,
ex-dividend on 18 May 2017) |
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|
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|
Sector
Analysis |
Gross
assets (%) |
|
Country
Analysis |
Gross
assets
(%) |
|
Energy |
33.1 |
|
Russia |
56.1 |
|
Financials |
31.2 |
|
Poland |
18.1 |
|
Telecommunication
Services |
10.5 |
|
Turkey |
11.6 |
|
Consumer Staples |
7.5 |
|
Greece |
6.3 |
|
Materials |
4.4 |
|
Ukraine |
4.0 |
|
Information
Technology |
4.2 |
|
Romania |
1.0 |
|
Real Estate |
2.6 |
|
Net current assets |
2.9 |
|
Health Care |
2.4 |
|
|
|
|
Industrials |
1.2 |
|
|
|
|
Net
current assets |
2.9 |
|
|
|
|
|
----- |
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|
----- |
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|
100.0 |
|
|
100.0 |
|
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===== |
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===== |
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Short positions |
(2.0) |
|
|
(2.0) |
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Fifteen Largest Investments |
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|
(in % order of Gross
Assets as at 31.10.17) |
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|
Company |
Region of
Risk |
Gross
assets |
|
|
|
(%) |
|
Gazprom |
Russia |
10.2 |
|
Lukoil |
Russia |
8.2 |
|
Sberbank |
Russia |
6.6 |
|
PKO Bank Polski |
Poland |
6.4 |
|
Novatek |
Russia |
4.9 |
|
Rosneft Oil Company |
Russia |
4.2 |
|
Lenta |
Russia |
4.0 |
|
Mobile Telesystems |
Russia |
3.9 |
|
Bank Pekao |
Poland |
3.6 |
|
PZU |
Poland |
3.4 |
|
Alpha Bank |
Greece |
3.2 |
|
National Bank of
Greece |
Greece |
3.1 |
|
Norilsk Nickel |
Russia |
2.9 |
|
Megafon |
Russia |
2.8 |
|
Mail.Ru |
Russia |
2.7 |
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Commenting on the
markets, Sam Vecht and Christopher Colunga, representing the
Investment Manager noted; |
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The MSCI
Emerging Europe 10/40 Index was relatively flat in October,
declining -0.1%* in USD terms, as stronger growth outlook in the US
led to higher bond yields, putting pressure on EM currencies. The
Company outperformed the index over the period, returning +0.3%* in
USD terms. |
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Central Europe
outperformed as currencies strengthened against the Euro. Poland
(+3.3%**) and the Czech Republic (+2.1%**) both saw 2Q17 GDP data
surprise to the upside, with support from private consumption.
Hungary (+5.0%**) was the region’s top performer despite slowing
GDP, driven by stronger fixed investment and a rebound in public
consumption, after three quarters of sequential decline. Turkey was
relatively flat through October, despite the Lira depreciating by
-6.0%**, resulting in its lowest monthly close. Bond yields rose to
their highest levels since the financial crisis despite the Central
Bank maintaining their effective lending rate at 12%** in the eyes
of peaking inflation. Greece continues to lag the region, declining
-2.1%** in September as the EU regulator continues its review of
the country’s non-performing exposures and their subsequent
reduction plans. Russia (-2.3%**) was the region’s worst performing
market on specific earnings misses, despite a strong month for oil
prices, given tightness in supply-demand fundamentals and
geopolitical tensions in the Middle East. |
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Focus on: Polish Banks |
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The Central European 3
sub-region has been a standout performer YTD within emerging
markets, on the back of stronger than expected growth, led by
improving consumption and an uptick in fixed investment. Central
European banks have been some of the top performers over this
period despite largely driven by strong loan growth and improving
cost management |
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Within the
region, Polish banks have been our preferred points of exposure
because they are among the most interest rate sensitive given that
the majority of loans in the county are floating. Resultantly even
a mild interest rate hike, ie 100bp, will see bank earnings up
between 20-50% bank dependent. Given the strong economic growth in
the country coupled with a tight labour market as seen in the
rising wage inflation, we believe Poland may have to begin hiking
rates sooner than the market expects. Specifically, PKO and Bank
Pekao are both among the company’s top ten holdings. We’ve recently
increased our position in Pekao as it has lagged peers following
the polish government buying a stake. We are of the opinion that
the dividend is likely to continue to be paid, and as such saw the
sell off as overdone given the strong underlying dynamics at the
bank. |
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*Source: BlackRock, data as at end October 2017.
**Source: JPM, data as at end October 2017. |
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21 November 2017 |
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ENDS |
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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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