BLACKROCK EMERGING EUROPE PLC
BLACKROCK EMERGING EUROPE PLC
All information is at 31 December 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 7.0% 12.9% 47.5% 12.0% 30.7% 104.3%
Net asset value 7.7% 14.0% 47.9% 15.5% 37.2% 106.3%
MSCI EM Europe 10.5% 15.0% 49.9% 1.3% 15.8% 63.5%
10/40(NR)
US Dollars:
Share price 5.8% 7.4% 23.7% -16.4% 4.0% 70.5%
Net asset value 6.5% 8.4% 24.0% -13.8% 9.2% 72.1%
MSCI EM Europe 9.2% 9.4% 25.7% -24.4% -7.9% 36.4%
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: 410.94c
Net asset value** - cum income: 418.61c
Sterling:
Net asset value - capital only: 332.57p
Net asset value** - cum income: 338.78p
Share price: 297.50p
Total assets^: £121.7m
Discount (share price to cum income NAV): 12.2%
Net cash at month end: 1.7%
Gearing range as a % of Net assets: 0-20%
Issued Capital - Ordinary Shares^^ 35,933,428
Ongoing charges* 1.3%
* Calculated as at 31 January 2016, in accordance with AIC guidelines.
** Includes year to date net revenue equal to 6.21 pence per share.
^ Total assets include current year revenue.
^^ Excluding 5,400,000 shares held in treasury.
Sector Gross Country Gross
assets assets
(%) (%)
Analysis Analysis
Financials 41.3 Russia 51.9
Energy 25.9 Turkey 18.6
Consumer Staples 6.1 Poland 8.0
Industrials 5.6 Greece 7.6
Information Technology 5.5 Ukraine 5.8
Materials 4.2 Czech Republic 4.8
Utilities 3.1 Romania 1.8
Health Care 3.1 Kazakhstan 1.4
Telecommunication Services 2.9 Net current assets 1.7
Consumer Discretionary 2.2
Net current assets 1.7
----- -----
101.6 101.6
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Short positions (0.0) (0.0)
Fifteen Largest Investments
(in % order of Gross Assets as at 31.12.16)
Company Region of Risk Gross assets
(%)
Sberbank Russia 10.6
Gazprom Russia 8.9
Novatek Russia 6.7
Lukoil Russia 6.2
Globaltrans Russia 5.6
Garanti Bank Turkey 5.1
Moneta Money Bank Czech Republic 4.8
PZU Poland 3.5
PKO Bank Polski Poland 3.5
Halk Bank Turkey 3.3
Inter RAO Russia 3.1
MD Medical Group Russia 3.1
Mail.Ru Russia 3.0
Alpha Bank Greece 2.9
Turkcell Turkey 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 returned +9.2% in December in USD terms.
The Company underperformed the index and was up +6.5% in USD terms.
Every country in the region posted positive performance led by Russia (+12.6%),
Poland (+8.1%) and Hungary (+7.6%); whilst Czech Republic (+3.5%), Turkey
(+2.4%) and Greece (+1.5%) rose to a lesser extent in December.
Russia was the best performing country in the region in December following the
30 November OPEC agreement to cut oil production, which saw oil rise 20%+ and
the Rouble strengthen almost 6% from pre-agreement levels. Financials in Poland
and Hungary performed well amidst rising global reflation expectations as the
Federal Reserve hiked rates 25 bps and surprised the market by projecting three
hikes in 2017 vs the previous two it had forecast in its September dot plot. In
Turkey the rebound was muted as declining PMI and GDP data, coupled with a
dovish central bank, lead to the Lira weakening further. Following a strong
November, Greece took a breather in December as European creditors suspended
proposed debt-relief measures for Greece after the Greek government surprised
by announcing it would boost welfare benefits for low-income pensioners.
Following talks between the Greek government and the European creditors the
suspension appears to be temporary, and may be reinstated in January.
Focus on: Sberbank
Sberbank is Russia's largest state-owned bank with branches throughout the
country and a 50% share in the retail deposit market. The stock has performed
well over the past year on the back of the Central Bank maintaining high rates,
the Russian macro recovery as well as the recent OPEC production cut agreement.
Additionally, the bank continues to build on its restructuring strategy which
has driven much of its success over the past few years, improving its services
and customer offering, enhancing its efficiency, and investing heavily in IT to
both modernise the bank and prepare it for the future evolution of investment
services. At the recent analyst day in December the bank gave much better
efficiency and cost targets than we had anticipated, suggesting the bank can
continue to deliver positive results over the next couple of years. Coupling
these improvements with one of the most attractive valuations in our markets
explains why we continue to believe that Sberbank is well positioned to perform
well.
19 January 2017
ENDS
BLACKROCK EMERGING EUROPE : Portfolio Update
January 20, 2017 at 05:42 am
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© PRNewswire - 2017
