|
One |
Three |
One |
Three |
Five |
*Since |
|
Month |
Months |
Year |
Years |
Years |
30.04.09 |
Sterling: |
|
|
|
|
|
|
Share price |
1.5 |
3.3 |
20.9 |
81.7 |
41.3 |
147.1 |
Net asset value |
4.2 |
4.3 |
13.8 |
68.7 |
33.1 |
134.7 |
MSCI EM Europe |
5.4 |
4.1 |
9.9 |
48.7 |
4.5 |
79.8 |
10/40(NR) |
|
|
|
|
|
|
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
Share price |
1.4 |
4.1 |
32.3 |
57.6 |
17.6 |
125.6 |
Net asset value |
4.1 |
5.2 |
24.5 |
46.3 |
10.8 |
114.3 |
MSCI EM Europe |
5.4 |
5.0 |
20.3 |
29.0 |
-13.03 |
64.1 |
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: |
496.38c |
Net asset value* – cum
income: |
512.68c |
Sterling: |
|
Net asset value –
capital only: |
366.93p |
Net asset value* – cum
income: |
378.97p |
Share price: |
353.38p |
Total assets^: |
£136.1m |
Discount (share price to
cum income NAV): |
6.8% |
Net gearing at month
end: |
3.5% |
Net yield^^^^: |
1.7% |
Gearing range as a % of
Net assets: |
0-20% |
Issued Capital –
Ordinary Shares^^ |
35,916,028 |
Ongoing charges^^^ |
1.2% |
|
|
* Includes year to date
net revenue equal to 12.04 pence per share. |
^ Total assets include
current year revenue. |
^^ Excluding 5,000,000
shares held in treasury. |
^^^ Calculated as at 31
January 2017, in accordance with AIC guidelines. |
^^^^ 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). |
|
Sector
Analysis |
Gross
assets (%) |
|
Country
Analysis |
Gross
assets
(%) |
Financials |
36.7 |
|
Russia |
54.1 |
Energy |
32.1 |
|
Poland |
17.9 |
Consumer Staples |
8.9 |
|
Turkey |
7.9 |
Telecommunication
Services |
7.5 |
|
Greece |
6.6 |
Health Care |
6.3 |
|
Hungary |
4.1 |
Materials |
4.5 |
|
Ukraine |
3.6 |
Information
Technology |
2.9 |
|
Kazakhstan |
3.2 |
Industrials |
1.2 |
|
Pan-Emerging Europe |
2.7 |
Net
current liabilities |
(0.1) |
|
Net
current liabilities |
(0.1) |
|
----- |
|
|
----- |
|
100.0 |
|
|
100.0 |
|
===== |
|
|
===== |
|
|
|
|
|
Short positions |
(1.7) |
|
|
(1.7) |
|
|
|
|
|
Fifteen Largest Investments |
|
|
|
(in % order of Gross
Assets as at 31.12.17) |
|
Company |
Region of
Risk |
Gross
assets |
|
|
(%) |
Sberbank |
Russia |
8.6 |
Lukoil |
Russia |
8.5 |
Gazprom |
Russia |
8.3 |
PKO Bank Polski |
Poland |
7.3 |
Bank Pekao |
Poland |
5.1 |
Novatek |
Russia |
4.9 |
Lenta |
Russia |
4.1 |
Gedeon Richter |
Hungary |
4.1 |
PZU |
Poland |
3.8 |
Rosneft Oil Company |
Russia |
3.7 |
National Bank of
Greece |
Greece |
3.4 |
Mobile Telesystems |
Russia |
3.2 |
KazMunaiGas Exploration
Production |
Kazakhstan |
3.2 |
Alpha Bank |
Greece |
3.1 |
MHP |
Ukraine |
2.9 |
|
|
|
|
|
|
|
Commenting on the
markets, Sam Vecht and Christopher Colunga, representing the
Investment Manager noted; |
|
The MSCI Emerging
Europe 10/40 Index performed strongly in December, returning +5.4%*
(in USD terms). The Company underperformed the index over the
period, returning +4.1%* (in USD terms). |
|
Greece (+16.6%)** was
the best performer led by banks as the second rescue package from
Europe was approved in principal and on continued signs of
strengthening domestic economy. |
|
Turkey (+13.2%)**
performed strongly too with Lira strengthening 3.2% over the
month.*** The Central Bank of Turkey hiked rates at its 14th
December meeting by 50 bps to 12.75% in its late liquidity window,
although less than the consensus expectations of 100 bps.*** |
|
In Central Europe,
Hungary (+4.8%)**, Poland (+3.5%)** and Czech (+3.3%)** were also
up as the domestic economies continue to benefit from a normalising
European economic cycle. |
|
Russia (+3.0%)** was
lagged as domestic stocks failed to react positively to an
increasing oil price. Brent gained and closed the month at US$ 66.8
per barrel, which marked its highest level since 2014.*** The
Central Bank of Russia cut rates by 50 bps (vs consensus
expectations of 25 bps) at its 15th December meeting, continuing
the monetary easing cycle and supporting the economy
further.*** |
|
Focus on: Gedeon
Richter |
Gedeon Richter is
generic pharmaceuticals producer in Central Eastern Europe and
Russia that is currently in the process of transforming itself into
a specialty pharma company. In the past, it has largely developed
APIs (Active Pharmaceutical Ingredients) and generics, but it is
now starting to generate an increasing share of its profits from
higher margin, innovative drugs both for women’s health care and
the central nervous system. |
|
Our
investment case is based on the premise that these higher margin
and faster growing specialty drugs will drive up both the company’s
revenues and margins. Management has already increased its 2017
operating margin guidance twice this year and we believe further
upgrades are likely. The stock offers a very attractive
high-double-digit earnings growth for the next couple of years and
with strong cash conversion these earnings can either be
distributed to shareholders or reinvested into the business via
M&A transactions. With $300m in cash on its balance sheet and a
strong management team the company appears well placed into the new
year.* |
|
*Source: BlackRock,
data as at end December 2017. |
**Source: BlackRock,
MSCI, data as at end December 2017. |
***Source:
Bloomberg, JPM, data as at end December 2017. |
|
|
16 January 2018 |
|
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. |
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