|
|
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
Health Care
Net current liabilities |
1.7
0.9
(0.7) |
|
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
Novatek
Gazprom |
Poland
Russia
Russia |
6.1
5.7
5.2 |
|
| Lukoil |
Russia |
5.2 |
|
| KazMunaiGas Exploration Production |
Kazakhstan |
4.9 |
|
| OPAP |
Greece |
4.8 |
|
Globaltrans
TSKB
Garanti Bank |
Russia
Turkey
Turkey |
4.4
4.1
3.7 |
|
KGHM
Coca Cola Icecek |
Poland
Turkey |
3.6
3.5 |
|
Petrol Rafinerileri
Yandex |
Turkey
Russia |
3.1
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
