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 December 15, 2015 - 5:21 AM EST
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All information is at 30 NOVEMBER 2015 and unaudited.
Performance at month end with net income reinvested
One Three One Three Launch
Month Months Year Years (20 Sep 04)
Net asset value* (undiluted) 2.3% 3.5% 6.9% 37.5% 218.2%
Net asset value* (diluted) 2.2% 3.1% 6.2% 36.8% 216.6%
Share price 1.3% 2.2% 7.9% 38.8% 206.5%
FTSE World Europe ex UK 0.8% 2.5% 0.2% 34.4% 144.4%
Sources: BlackRock and Datastream
At month end
Net asset value (capital only): 257.27p
Net asset value (including income): 257.18p
Net asset value (capital only)*: 255.74p
Net asset value (including income)*: 255.67p
Share price: 246.00p
Discount to NAV (including income): 4.3%
Discount to NAV (including income)*: 3.8%
Subscription share price: 10.40p
Net gearing: 1.5%
Net yield**: 2.0%
Total assets (including income): £268.3m
Ordinary shares in issue***: 104,312,765
Subscription shares: 20,542,076
Ongoing charges****: 0.89%
* Diluted for subscription shares and treasury shares.
** Based on a final dividend of 3.35p and an interim dividend of 1.65p per share for the year ended 31 August 2015.
*** Excluding 5,488,898 shares held in treasury.
**** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs, after relief for taxation for the year ended 31 August 2015.
Sector Analysis Total Assets  Country Analysis Total Assets 
(%)  (%) 
Financials 29.6  France 18.6 
Industrials 18.0  Switzerland 15.6 
Health Care 14.5  Germany 13.7 
Consumer Goods 12.7  Italy 8.5 
Consumer Services 8.9  Netherlands 8.5 
Technology 8.2  Sweden 8.3 
Telecommunications 4.0  Denmark 7.7 
Basic Materials 3.9  Ireland 7.4 
Oil & Gas 1.7  Finland 4.8 
Net current liabilities (1.5)  Belgium 2.7 
-----  Turkey 2.3 
100.0  Spain 1.7 
=====  Russia 1.7 
Net current liabilities (1.5) 
Ten Largest Equity Investments
% of
Company Country Total Assets
Novo Nordisk Denmark 4.8
Novartis Switzerland 4.8
AXA France 4.0
Bayer Germany 3.9
Heineken Netherlands 2.8
Deutsche Telekom Germany 2.7
RELX Netherlands 2.6
Ryanair Ireland 2.6
Capgemini France 2.5
Sampo Oyj Finland 2.5
Commenting on the markets, Vincent Devlin, representing the Investment Manager noted:
During the month, the Company’s NAV rose 2.3% and the share price rose by 1.3%. For reference, the FTSE World Europe ex UK Index was up 0.8% during the period.
European equity markets gained in November, although returns in sterling were moderated by a weak Euro. The market was boosted by a combination of solid economic data (Euro-area composite Purchasing Manager’s Index touched 54) and anticipation of further stimulatory measures from the European Central Bank in December’s governing council meeting. Indeed, a further 4% weakening of the Euro against the dollar – a net positive for European corporate earnings – was perhaps the most notable movement in the month as prominent ECB council members referenced the low inflation rate in the run up to the meeting. On a sector basis, autos & parts performed best along with industrials, but basic resources and real estate lagged the broad market.
Stock selection drove the Company’s performance when compared with the reference index during November, whilst the contribution from sector allocation was flat. The gains incurred on a sector basis from the Company’s lower weight to utilities, were offset by the losses from the higher weighting to the financials sector. A lower weighting to the oil & gas sector also negatively impacted performance as the commodities complex saw some relief at the onset of the month.
Pharmaceutical and health care equipment and services names featured highly amongst top contributors. Whilst holdings in Novo Nordisk and William Demant performed strongly, driven by solid trial data and acquisition actions respectively, not holding Sanofi proved the largest relative contributor over the month. The stock fell almost 10% on the back of a profit warning.
Holdings in a number of industrial names also provided positive returns. Kingspan exhibited strong performance following expectations from management that full year trading profits for 2015 would be 7-8% ahead of consensus.  Additionally, Assa Abloy and Saft Groupe contributed positively, the latter rallying 20% with the announcement of a capital repurchase programme.
The Company saw detractions from LVMH on the back of weak trading in the US. Travel provider Tui and Aeroports De Paris also detracted from performance amid the heightened terror alerts across Europe following the tragic attacks in Paris.
At the end of the period, the Company had higher weightings when compared with the reference index to financials, technology, consumer services, industrials and health care. The Company had lower exposure to consumer goods, basic materials, oil & gas, utilities and telecoms.
Despite an overall disappointing third quarter earnings reporting season, we remain constructive on European equities which are showing a degree of resilience in the face of divergence of monetary policy cycles between the US and Europe. The incremental support from the ECB, through expansion of the current Quantitative Easing programme, will in our view have a further positive impact on European GDP growth and the credit cycle. However, one question mark remains over earnings growth next year which we forecast to be mid-to-high single digit level, still impacted by energy and materials sectors but benefiting from the Euro weakness. European valuations are not as attractive as they were twelve months ago, and we believe that we need to see the earnings coming through to drive further meaningful upside next year.  In our view, a weak Euro, subdued wage growth and expanding domestic credit should all support corporate earnings in 2016 in Continental Europe. In this context, stock selection remains critical and we remain of the view that consumers will continue to lead the recovery globally, specifically in Europe where domestic companies fared better this year overall.
15 December 2015
Latest information is available by typing 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.

Source: PR Newswire (December 15, 2015 - 5:21 AM EST)

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