BlackRock Emerging Europe Plc - Portfolio Update
September 21 2018 - 9:04AM
PR Newswire (US)
BLACKROCK EMERGING
EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
All information is at
31 August 2018 and unaudited. |
Performance at month
end with net income reinvested |
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PLEASE
NOTE THAT THE BOARD OF BLACKROCK EMERGING EUROPE PLC
ANNOUNCED ON 17 AUGUST THAT IT INTENDS TO PUT FORWARD PROPOSALS
TO PUT THE COMPANY INTO VOLUNTARY LIQUIDATION. SHAREHOLDERS WILL BE
GIVEN THE OPTION OF ELECTING TO RECEIVE CASH AT NET ASSET
VALUE LESS COSTS AND/OR ROLLING THEIR INVESTMENT INTO NEW C SHARES
TO BE ISSUED BY BLACKROCK FRONTIERS INVESTMENT TRUST
PLC. A COPY OF THE ANNOUCEMENT CAN BE FOUND AT
www.blackrock.com/uk/individual/literature/shareholder-letters/blackrock-emerging-europe-plc-en-gb-shareholder-letters.pdf.
THE COMPANY'S PORTFOLIO WIL REMAIN FULLY INVESTED ACCORDING TO
ITS INVESTMENT POLICY UNTIL THE ABOVE PROPOSALS HAVE BEEN APPROVED
BY SHAREHOLDERS AT THE RELEVANT GENERAL MEETING (EXPECTED TO BE
HELD IN NOVEMBER 2018). |
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One |
Three |
One |
Three |
Five |
*Since |
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Month |
Months |
Year |
Years |
Years |
30.04.09 |
Sterling: |
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Share price |
-6.5 |
-2.4 |
-2.9 |
83.1 |
33.3 |
130.3 |
Net asset value |
-6.9 |
-4.1 |
-10.1 |
59.4 |
23.4 |
111.1 |
MSCI EM Europe |
-6.2 |
-1.9 |
-9.3 |
43.7 |
3.2 |
65.4 |
10/40(NR) |
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US Dollars: |
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Share price |
-7.3 |
-4.7 |
-2.1 |
54.7 |
11.9 |
102.0 |
Net asset value |
-7.8 |
-6.3 |
-9.4 |
34.9 |
3.7 |
85.2 |
MSCI EM Europe |
-7.1 |
-4.2 |
-8.5 |
21.4 |
-13.3 |
45.1 |
10/40(NR) |
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Sources: BlackRock,
Standard & Poor’s Micropal |
*BlackRock took over
the investment management of the Company with effect from 1 May
2009 |
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At month end |
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US Dollar: |
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Net asset value –
capital only: |
420.30c |
Net asset value* – cum
income: |
429.53c |
Sterling: |
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Net asset value –
capital only: |
323.38p |
Net asset value* – cum
income: |
330.48p |
Share price: |
319.00p |
Total assets^: |
£118.7m |
Discount (share price to
cum income NAV): |
3.5% |
Net gearing at month
end: |
2.2% |
Net yield^^^^: |
3.5% |
Gearing range as a % of
Net assets: |
0-20% |
Issued Capital –
Ordinary Shares^^ |
35,916,028 |
Ongoing charges^^^ |
1.1% |
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* Includes year to date
net revenue equal to 7.10 pence per share. |
^ Total assets include
current year revenue. |
^^ Excluding 5,000,000
shares held in treasury. |
^^^ Calculated as at 31
January 2018, 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 15.00 cents per share, (announced on 23 March 2018,
ex-dividend on 17 May 2018) |
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Sector
Analysis |
Gross
assets (%) |
|
Country
Analysis |
Gross
assets
(%) |
Financials |
37.3 |
|
Russia |
61.8 |
Energy |
35.6 |
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Poland |
18.6 |
Consumer Staples |
7.7 |
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Greece |
6.1 |
Materials |
5.3 |
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Hungary |
5.7 |
Information
Technology |
4.6 |
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Turkey |
2.9 |
Telecommunications
Service |
4.6 |
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Ukraine |
2.4 |
Health Care |
4.2 |
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Pan-Emerging Europe |
3.1 |
Consumer
Discretionary |
1.3 |
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Net Current
Liabilities |
(0.6) |
Net Current
Liabilities |
(0.6) |
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----- |
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----- |
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100.0 |
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100.0 |
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===== |
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===== |
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Fifteen Largest
Investments |
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(in % order of Gross
Assets as at 31.08.18) |
|
Company |
Region of
Risk |
Gross
assets |
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(%) |
Lukoil |
Russia |
12.7 |
Sberbank |
Russia |
11.8 |
Gazprom |
Russia |
8.2 |
Novatek |
Russia |
6.6 |
Rosneft Oil Company |
Russia |
5.7 |
PKO Bank Polski |
Poland |
5.4 |
Alior Bank |
Poland |
4.7 |
PZU |
Poland |
4.4 |
Gedeon Richter |
Hungary |
4.2 |
Norlisk Nickel |
Russia |
4.0 |
Lenta |
Russia |
3.7 |
Mobile Telesystems |
Russia |
3.4 |
Bank Pekao |
Poland |
3.2 |
National Bank of
Greece |
Greece |
3.2 |
Yandex |
Russia |
3.1 |
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Commenting on the
markets, Sam Vecht and Christopher Colunga, representing the
Investment Manager noted; |
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Market
Commentary |
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The MSCI
Emerging Europe 10/40 Index declined by 7.1% in August 2018 (in USD
terms).
Hungary rose by 1.6% and outperformed Poland (+0.8%) and the Czech
Republic (-2.1%) in August. Russia was down by 6.0% mostly from
Ruble weakness despite the strong positive impact on its economy
from the oil price. Russian equities are standing out as having
very attractive valuations as the combination of high oil prices
and a weak Ruble are significantly benefiting the local
economy.
Greece (-9.8%) was down in August, falling in line with the
European financial sell off.
Turkish equities (-29.0%) continued to be under pressure. The
deteriorating external balance and reliance on external funding has
finally impacted all liquid Turkish asset prices. Whilst a lot of
pain has been experienced by the Turkish markets, we expect the
impact on the economy of recent developments to materialize in the
next few months as a significant slowdown in GDP growth.
The Company’s NAV returned -7.8% in August 2018 (in US Dollar
terms), underperforming its benchmark, the MSCI Emerging Europe
10/40 Index, driven primarily by our stock picks in Russia but
offset by our underweight allocation to Turkey.
Sberbank was the main detractor for the month. The threat of new
sanctions hit the stock hard (-22.6%) even as the underlying
operations were seeing earning upgrades. We continue to be of the
view that Russian equities look incredibly cheap to us as does the
currency providing an excellent opportunity once the sanction
threat is lifted.
The underweight in Turkey continued to benefit relative performance
as persistent inflation and concerns around trade continued to put
pressure on the Lira.
The portfolio has an exposure to Turkish listed stocks of 2.9%.
At the end of August, the portfolio is underweight Turkey and
Materials. It is overweight Russia and Financials.
Source: BlackRock, MSCI, data as at end August 2018. |
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21 September 2018 |
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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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