BLACKROCK EMERGING EUROPE PLC
BLACKROCK EMERGING EUROPE PLC
All information is at 31 December 2015 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 -4.8% 9.9% 1.8% -20.8% -36.5% 38.5%
Net asset value -2.1% 8.9% 0.3% -20.9% -33.4% 39.5%
MSCI EM Europe -4.6% -2.5% -9.8% -36.6% -41.2% 9.1%
10/40(NR)
US Dollars:
Share price -6.8% 6.9% -3.7% -28.1% -40.1% 37.8%
Net asset value -4.2% 6.0% -5.2% -28.2% -37.3% 38.8%
MSCI EM Europe -6.6% -5.1% -14.7% -42.5% -44.7% 8.5%
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
Net asset value - capital only: 227.00p
Net asset value** - cum income: 229.08p
Share price: 201.63p
Total assets^: £86.7m
Discount (share price to cum income NAV): 12.0%
Gross market exposure^^^: 100.0%
Gearing at month end: 2.3%
Gearing range as a % of Net assets: 0-20%
Issued Capital - Ordinary Shares^^ 36,242,928
Ongoing charges* 1.3%
* Calculated as at 31 January 2015, in accordance with AIC guidelines.
** Includes year to date net revenue equal to 2.08 pence per share.
^ Total assets include current year revenue.
^^ Excluding 5,400,000 shares held in treasury.
^^^ Long positions plus short positions as a percentage of net asset value.
Sector % Total Country % Total
Analysis Exposure Analysis Exposure
Financials 42.7 Russia 42.8
Energy 24.9 Turkey 22.9
Consumer Staples 9.0 Poland 12.6
Consumer Discretionary 6.4 Greece 10.2
Information Technology 5.2 Kazakhstan 4.9
Industrials 4.4 Ukraine 2.9
Basic Materials 3.6 Romania 2.8
Telecommunications 1.9 Lithuania 1.6
Utilities 1.7 Net current liabilities (0.7)
Health Care 0.9
Net current liabilities (0.7)
----- -----
100.0 100.0
===== =====
Short positions (0.0) (0.0)
Fifteen Largest Investments
(in % order of Total Market Exposure as at 31.12.15)
Total Market
Company Region of Risk Exposure %
Sberbank Russia 7.3
Halk Bank Turkey 6.6
PKO Bank Polski Poland 6.1
Novatek Russia 5.7
Gazprom Russia 5.2
Lukoil Russia 5.2
KazMunaiGas Exploration Production Kazakhstan 4.9
OPAP Greece 4.8
Globaltrans Russia 4.4
TSKB Turkey 4.1
Garanti Bank Turkey 3.7
KGHM Poland 3.6
Coca Cola Icecek Turkey 3.5
Petrol Rafinerileri Turkey 3.1
Yandex Russia 3.1
Commenting on the markets, Sam Vecht and David Reid, representing the
Investment Manager noted;
Market Commentary
The MSCI Emerging Europe 10/40 Index returned -6.6% in December in USD terms.
Against a backdrop of the US Federal Reserve raising interest rates for the
first time in 9 years, emerging European equities endured a torrid month.
Russia was weak as the WTI oil price fell to below $33 per barrel. The ruble
depreciated and equity markets followed. Although a soft oil price places
Russia's economy under pressure, the Russian Reserve Fund is sufficiently large
to support government spending, at least in the medium-term. Crucially, the
willingness to date of the Russian monetary authorities to allow the ruble to
adjust to lower oil prices has allowed the Russian economy to adapt more
quickly to the new pricing environment and allowed manufacturers and other
exporters to regain competitiveness.
Greece returned +2% during December. However, this obscures large disparities
in individual stock performance. Alpha Bank rose by 9% as it successfully
completed its capital raising and was up-weighted in various market indexes.
Focus On: Greek Pension Reforms
As part of the third bail-out program agreed in the summer, the Greek economy
was required to undertake economic reforms. The government has made headway on
restarting its privatisation program and recapitalising the banking system. In
addition, reforming the pension system is now high on the priority list for
both the government and the European institutions. Prime Minister Tsipras has
highlighted that the mandated savings rate of 1% of GDP does not have to be
borne entirely by direct pension cuts and has proposed increasing contributions
from employers and reducing administration costs by consolidating existing
pension funds. The European institutions are currently assessing the proposals,
and we may see a period of debate before the details are finally settled and
Greece enters the First Review of the bailout program. These reforms are key to
Greece accessing financing from the European Quantitative Easing program and
should open up discussion on debt relief, and so achieving progress here should
have a notable positive impact on the Greek economy and the valuation of Greek
assets.
18 January 2016
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.
BLACKROCK EMERGING EUROPE : Portfolio Update
January 18, 2016 at 06:37 pm IST
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© PRNewswire - 2016
