BlackRock Emerging Europe Plc - Portfolio Update
20 September 2017 - 11:44PM
PR Newswire (US)
BLACKROCK EMERGING EUROPE PLC
(LEI - 549300OGTQA24Y3KMI14) |
All information is at 31 August
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 |
|
Sterling: |
|
|
|
|
|
|
|
Share price |
4.7% |
3.3% |
37.6% |
47.1% |
47.2% |
137.2% |
|
Net asset value |
8.5% |
8.3% |
34.3% |
46.3% |
42.4% |
135.0% |
|
MSCI EM Europe |
9.0% |
11.5% |
31.2% |
21.0% |
16.6% |
82.4% |
|
10/40(NR) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US Dollars: |
|
|
|
|
|
|
|
Share price |
2.4% |
3.1% |
35.3% |
14.1% |
19.4% |
106.3% |
|
Net asset value |
6.1% |
8.1% |
32.1% |
13.4% |
15.5% |
104.4% |
|
MSCI EM Europe |
6.5% |
11.3% |
29.1% |
-6.1% |
-5.4% |
58.6% |
|
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 |
|
|
|
At month end |
|
|
US Dollar: |
|
|
Net asset value –
capital only: |
476.20c |
|
Net asset value* – cum
income: |
488.94c |
|
Sterling: |
|
|
Net asset value –
capital only: |
369.58p |
|
Net asset value* – cum
income: |
379.47p |
|
Share price: |
339.25p |
|
Total assets^: |
£136.3m |
|
Discount (share price to
cum income NAV): |
10.6% |
|
Net cash at month
end: |
3.6% |
|
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 9.89 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 |
30.3 |
|
Russia |
55.6 |
Energy |
30.2 |
|
Turkey |
18.0 |
Consumer Staples |
8.4 |
|
Poland |
11.7 |
Telecommunication
Services |
8.3 |
|
Greece |
7.0 |
Industrials |
5.4 |
|
Ukraine |
4.5 |
Materials |
4.7 |
|
Net current assets |
3.4 |
Information
Technology |
4.3 |
|
|
|
Real Estate |
2.6 |
|
|
|
Health Care |
2.6 |
|
|
|
Net
current assets |
3.4 |
|
|
|
|
----- |
|
|
----- |
|
100.2 |
|
|
100.2 |
|
===== |
|
|
===== |
|
|
|
|
|
Short positions |
(1.9) |
|
|
(1.9) |
|
|
|
|
|
Fifteen Largest
Investments |
|
|
|
|
(in % order of Gross
Assets as at 31.08.17) |
|
|
|
|
Company |
Region of
Risk |
Gross
assets |
|
|
|
(%) |
|
Sberbank |
Russia |
10.2 |
|
Gazprom |
Russia |
9.6 |
|
Novatek |
Russia |
7.1 |
|
Lukoil |
Russia |
5.1 |
|
PKO Bank Polski |
Poland |
4.2 |
|
Rosneft Oil Company |
Russia |
4.0 |
|
Lenta |
Russia |
4.0 |
|
National Bank of
Greece |
Greece |
3.8 |
|
Mobile Telesystems |
Russia |
3.7 |
|
Alpha Bank |
Greece |
3.2 |
|
Turk Hava Yollari |
Turkey |
3.1 |
|
PZU |
Poland |
3.0 |
|
TSKB |
Turkey |
3.0 |
|
Garanti Bank |
Turkey |
2.9 |
|
Turkcell |
Turkey |
2.7 |
|
|
|
|
|
Commenting on the
markets, Sam Vecht and Christopher Colunga, representing the
Investment Manager noted: |
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Market
Commentary |
|
|
|
|
|
The MSCI Emerging
Europe 10/40 Index returned +6.5% in August in US Dollar terms. The
Company underperformed the index and returned +6.1% in US Dollar
terms. |
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|
All countries in the
index posted positive returns. Russia (+8.0%) led the region as the
Ruble strengthened by 3.0% helped by higher oil prices and a
positive 2nd quarter earnings season. On the economic
front, flash estimate for 2nd quarter GDP growth at
+2.5% was better than consensus estimates: +1.7% and the
1st quarter: +0.5% (all over the last 12 months). Also,
consumer inflation in July grew by 3.9% over the year and was less
than expected, creating room for the central bank to continue the
interest rate cut cycle further and bring down the cost of
borrowing as the economy continues to recover. |
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|
|
|
|
Central European
countries also performed strongly with Hungary (+7.6%) leading,
followed by Poland (+6.7%) and Czech Republic (+1.8%). The region
benefitted from a strong 2nd quarter earnings season, in
particular for the banks. |
|
|
|
|
|
Turkey (+4.6%) rose
over the month as the Turkish Lira strengthened by 1.9% to the end
of the month. The 2nd quarter earnings season beat
expectations, especially for the large banks. The 12-month current
account deficit contracted to US$ 34.3bn (4.1% of GDP) in June from
US$ 35.5bn (4.3% of GDP) in May primarily due to the 13%
contraction in the merchandise trade deficit and the 30% increase
in tourism revenues over the year. |
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|
After a strong rally in
summer, Greece cooled down in August although it ended the month in
positive territory (+1.1%). The 2nd quarter GDP grew
+0.5% vs expectations of 0.2% over the quarter, ESI (Economic
Sentiment Indicators) were up to a two-year high of 99.0 and July
PMI (Purchasing Manager Index) rose to 52.2 marking its highest
reading since August 2008. |
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Focus on:
Sberbank |
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Sberbank is Russia’s
largest bank, state-owned. It has branches throughout the country
and a 46% share in the retail deposit market. The stock performed
well in 2016 amid Russian macro recovery and strong performance
post OPEC production cut agreement, as well as continuing company’s
restructuring strategy to improve its services and enhance
efficiency. |
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We have been adding to
our position in the stock since March 2017 on the basis of its
strong fundamentals, attractive valuation, low cost of risk and
ability to continue optimising the costs. Furthermore, as the
Russian economy and consumer sector continue to recover and the
central bank cuts the key policy rate, we expect the bank to see
increased loan growth, in particular in mortgages. The stock has
seen a pick-up in its price over the last 4 months in line with its
strong 2nd quarter results and the lift in guidance on
loans picking up. The recent strengthening in the Ruble and the
interest rate cuts provided a further support to the bank’s NIMs
(Net Interest Margins) through the year end. |
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20 September 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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