BLACKROCK EMERGING EUROPE PLC | BLACKROCK EMERGING EUROPE PLC (LEI - 549300OGTQA24Y3KMI14) |
| All information is at 30 September 2018 and unaudited. |
| Performance at month end with net income reinvested |
PLEASE NOTE THAT PROPOSALS HAVE NOW BEEN PUBLISHED FOR THE RECONSTRUCTION AND WINDING UP OF THE COMPANY. DETAILS OF THESE PROPOSALS CAN BE FOUND ON THE COMPANY’S WEBSITE https://www.blackrock.com/uk/individual/products/investment-trusts/our-range/blackrock-emerging-europe-investment-trust/trust-information.
| One | Three | One | Three | Five | *Since | |||||||||||||||||||||||
| Month | Months | Year | Years | Years | 30.04.09 | |||||||||||||||||||||||
| Sterling: | ||||||||||||||||||||||||||||
| Share price | 2.4 | 0.3 | -1.5 | 87.0 | 29.1 | 135.8 | ||||||||||||||||||||||
| Net asset value | 4.0 | 0.3 | -2.4 | 71.4 | 22.4 | 119.5 | ||||||||||||||||||||||
| MSCI EM Europe | 6.1 | 4.0 | 1.6 | 56.9 | 4.8 | 75.5 | ||||||||||||||||||||||
| 10/40(NR) | ||||||||||||||||||||||||||||
| US Dollars: | ||||||||||||||||||||||||||||
| Share price | 2.7 | -0.9 | -4.3 | 60.9 | 3.9 | 107.5 | ||||||||||||||||||||||
| Net asset value | 4.3 | -0.9 | -5.2 | 47.5 | -1.5 | 93.2 | ||||||||||||||||||||||
| MSCI EM Europe | 6.4 | 2.7 | -1.2 | 35.1 | -15.62 | 54.4 | ||||||||||||||||||||||
| 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: | 437.08c | |||||||||||||||||||||||||||
| Net asset value* – cum income: | 448.03c | |||||||||||||||||||||||||||
| Sterling: | ||||||||||||||||||||||||||||
| Net asset value – capital only: | 335.15p | |||||||||||||||||||||||||||
| Net asset value* – cum income: | 343.55p | |||||||||||||||||||||||||||
| Share price: | 326.50p | |||||||||||||||||||||||||||
| Total assets^: | £123.4m | |||||||||||||||||||||||||||
| Discount (share price to cum income NAV): | 5.0% | |||||||||||||||||||||||||||
| Net cash at month end: | 1.0% | |||||||||||||||||||||||||||
| Net yield^^^^: | 3.4% | |||||||||||||||||||||||||||
| Gearing range as a % of Net assets: | 0-20% | |||||||||||||||||||||||||||
| Issued Capital – Ordinary Shares^^ | 35,916,028 | |||||||||||||||||||||||||||
| Ongoing charges^^^ | 1.1% | |||||||||||||||||||||||||||
| * Includes year to date net revenue equal to 8.40 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) | ||||||||||||||||||||||||||||
| Sector Analysis | Gross assets (%) | Country Analysis | Gross assets (%) | |||||||||||||||||||||||||
| Energy | 38.3 | Russia | 64.4 | |||||||||||||||||||||||||
| Financials | 35.3 | Poland | 15.9 | |||||||||||||||||||||||||
| Consumer Staples | 10.4 | Hungary | 5.4 | |||||||||||||||||||||||||
| Materials | 5.2 | Greece | 4.4 | |||||||||||||||||||||||||
| Health Care | 3.9 | Turkey | 3.6 | |||||||||||||||||||||||||
| Information Technology | 3.1 | Pan-Emerging Europe | 3.0 | |||||||||||||||||||||||||
| Consumer Discretionary | 1.5 | Ukraine | 2.3 | |||||||||||||||||||||||||
| Telecommunications Service | 1.3 | Net Current Assets | 1.0 | |||||||||||||||||||||||||
| Net Current Assets | 1.0 | ----- | ||||||||||||||||||||||||||
| ----- | 100.0 | |||||||||||||||||||||||||||
| 100.0 | ===== | |||||||||||||||||||||||||||
| ===== | ||||||||||||||||||||||||||||
Fifteen Largest Investments | ||||||||||||||||||||||||||||
| (in % order of Gross Assets as at 30.09.18) | ||||||||||||||||||||||||||||
| Company | Region of Risk | Gross assets | ||||||||||||||||||||||||||
| (%) | ||||||||||||||||||||||||||||
| Sberbank | Russia | 14.2 | ||||||||||||||||||||||||||
| Lukoil | Russia | 13.7 | ||||||||||||||||||||||||||
| Gazprom | Russia | 9.0 | ||||||||||||||||||||||||||
| Rosneft Oil Company | Russia | 7.1 | ||||||||||||||||||||||||||
| Novatek | Russia | 6.1 | ||||||||||||||||||||||||||
| PKO Bank Polski | Poland | 5.3 | ||||||||||||||||||||||||||
| Alior Bank | Poland | 4.2 | ||||||||||||||||||||||||||
| Norlisk Nickel | Russia | 4.0 | ||||||||||||||||||||||||||
| Gedeon Richter | Hungary | 3.9 | ||||||||||||||||||||||||||
| Yandex | Russia | 3.1 | ||||||||||||||||||||||||||
| Magnit | Russia | 3.0 | ||||||||||||||||||||||||||
| Lenta | Russia | 3.0 | ||||||||||||||||||||||||||
| Bank Pekao | Poland | 2.8 | ||||||||||||||||||||||||||
| PZU | Poland | 2.7 | ||||||||||||||||||||||||||
| MHP | Ukraine | 2.3 | ||||||||||||||||||||||||||
| Commenting on the markets, Sam Vecht and Christopher Colunga, representing the Investment Manager noted; | ||||||||||||||||||||||||||||
| Market Commentary | ||||||||||||||||||||||||||||
| The MSCI Emerging Europe 10/40 Index returned +6.4% in September 2018 (in US Dollar terms). Turkey (+20.6%) was the best performing country in the region as it rallied from the August lows when the market and the currency sold off. The central bank in Turkey finally decided to hike rates in September, which restored some investor confidence and put a stop to the market correction, however the market still returned -20% over the quarter. Russia (+9.6%) rose thanks to the strong oil price. Russian equities are standing out as very attractive as the combination of high oil prices and a weak Ruble continue to benefit the local economy. Greek markets (-7.9%) were weak on renewed tension in the Eurozone banking sector. Hungary (+0.5%) rose and outperformed Czech Republic (+0.3%) and Poland (-1.1%) in September. The Company’s net asset value per share returned +4.3% in September 2018 (in US Dollar terms), underperforming its benchmark, the MSCI Emerging Europe 10/40 Index, driven primarily by our stock picks in Greece but offset by our stock selection in Russia. In Greece, renewed tensions in the Italian financial sector reignited fears of a Euro crisis, putting pressure on Greek banks. This was further exacerbated by those banks reporting slower than anticipated recovery of non-performing exposures. Consequently, our positions in National Bank of Greece and Alpha Bank were the main detractors to the portfolio. Within Russia, the overweight in Russian Sberbank and energy names, such as Rosneft and Lukoil, contributed after the stocks rallied with the rest of the market in Russia. We continue to be of the view that Russian equities look cheap as does the currency, providing excellent investment opportunities. At the end of September, the company is most underweight Turkey and Materials. It is most overweight Russia and Financials. Source: BlackRock, MSCI, data as at end September 2018. | ||||||||||||||||||||||||||||
| 22 October 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. | ||||||||||||||||||||||||||||
