BlackRock Emerging Europe plc
Half Yearly Financial Results Announcement for the Six Months ended 31 July
2017
FINANCIAL HIGHLIGHTS
As at As at
31 July 2017 31 January 2017 Change
Attributable to ordinary shareholders (unaudited) (audited) %
US dollar
Net assets (US$'000) 165,552 154,951 6.8
Net asset value per ordinary share (US$ cents) 460.94c 431.28c 6.9
- with income reinvested 8.6
MSCI Emerging Europe 10-40 Index (net return)1 434.23 404.84 7.3
Ordinary share price (mid-market)2 427.33c 378.06c 13.0
- with income reinvested 15.0
-------- -------- --------
Sterling
Net assets (£'000)2 125,570 123,163 2.0
Net asset value per ordinary share2 349.62p 342.80p 2.0
- with income reinvested 3.7
MSCI Emerging Europe 10-40 Index (net return)1 329.37 321.79 2.4
Ordinary share price (mid-market)2 324.13p 300.50p 7.9
- with income reinvested 9.8
-------- -------- --------
Discount to net asset value 7.3% 12.3% -
-------- -------- --------
Gross market exposure3 99.2% 103.1% -
======= ======= =======
Sources: BlackRock and Datastream.
1 Net return indices calculate the reinvestment of dividends net of
withholding taxes using the tax rates applicable to institutional investors who
are not resident in the local market.
2 Based on a £:US$ exchange rate of 1.3184 (31 January 2017: 1.2581).
3 Long positions plus short positions as a percentage of net assets.
For the six For the six
months months
ended ended
31 July 2017 31 July 2016 Change
(unaudited) (unaudited) %
Revenue
Net revenue after taxation (US$'000) 4,854 2,341 107.3
Revenue return per ordinary share 13.51c 6.47c 108.8
======== ======== ========
Source: BlackRock.
CHAIRMAN'S STATEMENT
for the six months ended 31 July 2017
MARKET OVERVIEW
The Company has made good progress in the period under review. Greece in
particular performed very strongly on the back of a successful resolution to
discussions on its third bailout and its return as a borrower to the
international bond markets. Turkey also performed well, as the referendum on
constitutional change removed some of the political uncertainty, allowing
investors to focus on the improving economic and earnings outlook. Despite an
improving economy, returns in Russia lagged those of the wider region,
principally due to the likelihood of a continuation of US sanctions, which some
had hoped might be reduced under the new US administration. Elsewhere in the
region Hungary, Poland and the Czech Republic also performed strongly on the
back of expectations of an improving global growth outlook.
PERFORMANCE
The Company's net asset value ("NAV") returned 8.6% and the share price 15.0%
in US dollar terms (3.7% and 9.8% respectively in sterling terms). The MSCI
Emerging Europe 10-40 Index returned 7.3% and 2.4% in US dollar and sterling
terms. Since the appointment of BlackRock as investment manager on 1 May 2009
the Company's NAV has increased by 92.7% in US dollar terms and 116.5% in
sterling terms, compared with the benchmark returns of 48.9% and 67.4%
respectively (all percentages with income reinvested).
Details of the factors which have contributed to performance are set out in the
Investment Manager's Report.
Since the period end and up until the close of business on 26 September 2017
the Company's NAV has increased by 5.5% in US dollar terms and increased by
3.6% in sterling terms compared with an increase in the benchmark of 4.5% in US
dollar terms and an increase of 2.7% in sterling terms (all percentages with
income reinvested).
EARNINGS
In the six months to 31 July 2017, revenue earnings per share were 13.51 cents
(31 July 2016:6.47 cents) reflecting, inter alia, the portfolio's increased
exposure to higher yielding Russian companies. It is expected that the Company
will pay a dividend based on the net revenue generated by the portfolio in
respect of the year ended 31 January 2018.
PERIODIC OPPORTUNITIES FOR RETURN OF CAPTIAL
Shareholders should note that it was agreed in June 2013 that, prior to 21 June
2018, the Board would formulate and submit proposals (which may constitute a
tender offer and/or other method of distribution) to provide shareholders with
an opportunity to realise the value of their investment in the Company at NAV
less applicable costs.
As we approach June 2018 your Board has been considering several different
options for the future of the Company. Clearly we will be seeking the support
of shareholders for any proposals that we make and an announcement will be made
once the Board has completed its deliberations.
DISCOUNT TO NAV
The Board operates a discount control policy to manage the discount within a
10% target. Our ability to do this is driven by several factors including fund
performance, the periodic opportunity to realise value at close to NAV, an
interim performance based tender offer and intermittent share buybacks, where
shares are seen as overhanging the market. I am pleased to report that the
combination of these factors has seen our discount narrow substantially during
the period, not least driven by the Company's performance. We have demonstrated
consistent outperformance of both our benchmark index and the Morningstar peer
group over one year, three years and since BlackRock started managing the
portfolio in 2009*. Our discount as at close of business on 26 September 2017
was 5.5% which compares favourably with the averages achieved in our sector.
SHARE BUYBACKS
During the period under review, the Company repurchased 11,800 ordinary shares
at an average price of 311.13p and at an average discount to NAV of 10.6% and a
total cost of £37,000 including stamp duty and commission. No further shares
have been repurchased since the period end up to close of business on 26
September 2017.
OUTLOOK
Whilst many commentators are concerned that the major developed markets are now
at - or approaching - their all-time peaks, Emerging European equity markets
stand out as a rare value opportunity. Indeed, even after the strong gains of
the last eighteen months, the index is still 40% below its pre-crisis peak and
the portfolio managers refer to a 'lost decade' of performance. We believe that
Emerging Europe will continue to benefit from economic recovery and that the
attractive valuations provide compelling opportunities for investors in our
region. Your Board therefore view the outlook for the region with considerable
confidence.
Neil England
28 September 2017
*periods to 31 August 2017.
INTERIM MANAGEMENT REPORT AND RESPONSIBILITY STATEMENT
The Chairman's statement and the Investment Manager's Report give details of
important events which have occurred during the period and their impact on the
financial statements.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks faced by the Company can be divided into various areas as
follows:
* Counterparty risk;
* Investment performance risk;
* Legal & compliance risk;
* Operational risk;
* Market risk (including political risk);
* Financial risk; and
* Marketing risk.
The Board reported on the principal risks and uncertainties faced by the
Company in the Annual Report and Financial Statements for the year ended 31
January 2017. A detailed explanation can be found on pages 9 to 11 and in note
18 on pages 56 to 66 of the Annual Report and Financial Statements which are
available on the website maintained by BlackRock, at www.blackrock.co.uk/beep.
In the view of the Board, there have not been any changes to the fundamental
nature of these risks since the previous report and these principal risks and
uncertainties are equally applicable to the remaining six months of the
financial year as they were to the six months under review.
GOING CONCERN
The Board will submit proposals at a General Meeting immediately following the
Company's Annual General Meeting in June 2018 whereby shareholders will have
the opportunity to realise the value of their investment in the Company at NAV
less applicable costs. As at the date of this report, the voting intentions of
the majority of shareholders are not known and will be further influenced by
events leading up to the proposals being presented.
Given that the outcome of the proposals to be put to shareholders is uncertain,
the Directors are satisfied that the Company has adequate resources to continue
in operational existence for the foreseeable future and is financially sound.
For this reason they continue to adopt the going concern basis in preparing the
financial statements. The Company has a portfolio of investments which are
considered to be readily realisable and is able to meet all of its liabilities
from its assets and income generated from these assets. Ongoing charges
(excluding finance costs and taxation) for the year ended 31 January 2017 were
approximately 1.2% of net assets.
RELATED PARTY DISCLOSURE AND TRANSACTIONS WITH THE INVESTMENT MANAGER
BlackRock Fund Managers Limited (BFM) was appointed as the Company's AIFM with
effect from 2 July 2014. BFM has (with the Company's consent) delegated certain
portfolio and risk management services, and other ancillary services, to
BlackRock Investment Management (UK) Limited (BIM (UK)). Both BFM and BIM (UK)
are regarded as related parties under the Listing Rules. Details of the
management fees payable are set out in note 4 and note 12.
The related party transactions with the Directors are set out in note 11.
DIRECTORS' RESPONSIBILITY STATEMENT
The Disclosure and Transparency Rules ("DTR") of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Management Report and Financial
Statements.
The Directors confirm to the best of their knowledge that:
* the condensed set of financial statements contained within the half yearly
financial report has been prepared in accordance with the Financial
Reporting Council's Standard, FRS 104 'Interim Financial Reporting'; and
* the Interim Management Report together with the Chairman's Statement and
Investment Manager's Report, include a fair review of the information
required by 4.2.7R and 4.2.8R of the FCA's Disclosure and Transparency
Rules.
The half yearly financial report has not been audited or reviewed by the
Company's Auditor.
The half yearly financial report was approved by the Board on 28 September 2017
and the above responsibility statement was signed on its behalf by the
Chairman.
Neil England
For and on behalf of the Board
28 September 2017
INVESTMENT MANAGER'S REPORT
MARKET REVIEW
In the six months to 31 July 2017, the MSCI Emerging Europe 10-40 Index gained
7.3% in US dollar terms and 2.4% in sterling terms (all percentages with income
reinvested).
Greece and Turkey were the main drivers of performance, while Russia was the
largest detractor in the region over the period.
Greece experienced a strong rally of +41.9% in US dollar terms over the 6
months as progress was made on the second review of the country's third
bailout. Greece agreed a deal with its creditors and enacted the necessary
reforms enabling it to receive the next €8.5bn tranche of its bailout.
Moreover, the successful conclusion allowed Greece to return to the bond
markets for the first time since 2014. The 5 year Euro bonds were priced to
yield 4.625%, below the initial guidance of 4.875% on the back of high demand.
Moody's upgraded Greece's credit rating to Caa2 with a positive outlook and S&P
raised Greece's sovereign credit-rating outlook to positive from stable.
Turkey returned +36.1% in US dollar terms over the period. The constitutional
referendum in April alleviated investor concerns regarding political
uncertainty. The 'Yes' vote won the referendum with 51.4% of the vote to change
Turkey from a parliamentary democracy into a presidential republic, cementing
Erdogan's leadership position. With political clarity restored, the markets
focused on the improving economy and significant growth in earnings, lifting
the market higher.
In the Central and Eastern European region, Hungary (+22.9%), Poland (+29.5%)
and the Czech Republic (+21.7%) (all in US dollar terms) also joined in the
rally in the period, reacting positively to rising global reflation
expectations. These economies performed well with accelerating wage growth,
unemployment at multi-decade lows, and a pickup in investment spending. The mix
of rising consumer confidence coupled with higher inflation should allow the
regional banks to recover from the damaging effects of years of low interest
rates.
Russia was the regional laggard, falling by 9.9% in US dollar terms over the
period. The market's initial excitement that the incoming Trump administration
might lift sanctions against Russia was met with disappointment, culminating in
the US Congress passing a bill to impose incremental sanctions and to codify
the existing sanctions, thus ensuring that President Trump wouldn't be able to
remove sanctions without the approval of Congress. Despite this disappointment,
the Russian economy continued to recover with expanded industrial production
numbers, solid wage growth and credit impulse (change in net new credit issued
as % of GDP over last four quarters) turning positive. The period also
witnessed inflation falling rapidly and reaching the Central Bank of Russia's
target of 4% faster than expected, allowing the bank to reduce interest rates
and bring down the cost of borrowing.
PERFORMANCE REVIEW
The Company delivered +8.6% in US dollar terms (3.7% in sterling terms) for the
six month period ending 31 July 2017, which outperformed the MSCI Emerging
Europe 10-40 Index by +1.3% in US dollar terms (1.3% in sterling terms) over
the same time period.
Once again, our off-benchmark stocks provided the largest contribution to
performance. In Russia, our off-benchmark position in Mail.Ru (+51.6% in US
dollar terms), Russia's leading social network, contributed positively. Mail.Ru
reported strong results as investors gained confidence in management's ability
to put adjacent businesses (Youla, Delivery Club) onto the social networking
platform. Also off-benchmark in Russia, Globaltrans (+33.2% in US dollar
terms), the leading private freight rail transportation company, continued to
benefit from rising transportation tariffs in Russia.
In Turkey, Turk Hava Yollari performed strongly on the back of improving
passenger numbers and higher margins, driving positive EPS revisions. We also
made profits in our overweight in Turkish oil refiner, Tupras, supported by
improving refining margins.
In Greece, our overweight positions in banks, National Bank of Greece and Alpha
Bank, benefited from the successful completion of the Second Review and the
fall in Greek bond yields. Greek gaming company, OPAP (Greek Organisation of
Football Prognostics), also performed well and we took profits as the company
reached our target price.
The main detractors from performance were in Poland and Russia. In Poland, an
underweight in the refining sector, hurt relative returns. In addition, our
off-benchmark positioning in Griffin Real Estate detracted as the stock
continued to underperform post its IPO, though we maintain conviction in the
company given attractive valuations. In Russia, the sanctions news hurt our
holdings in Rosneft Oil Company and Novatek.
OUTLOOK
Emerging Europe is just beginning to leave behind a lost decade of performance.
The strong gains of 2016 and the first six months of 2017 still leave the index
more than 40% below its pre-crisis peak. Compared to the US S&P which is more
than 55% above its pre-crisis peak, we believe that Emerging Europe continues
to provide a fertile ground to deliver further returns. Emerging Europe
valuations are still below historical trends, investor positioning remains
light and the region has the potential to benefit from several positive
developments. The equities trade on less than half the multiple of its
developed peers, despite having higher dividend yields, growing earnings and
strong free cash flows.
In the Central European economies of Poland, Czech Republic and Hungary,
inflationary pressures continue to build, giving the potential for the region's
banking sector to break away from the destructive low rate environment. After
several years of inflation rates being around zero and in some cases negative,
we are seeing inflation returning to these countries on the back of accelerated
wage growth, lower levels of unemployment and increased investment spending in
the region. In particular, banks present an investment opportunity in our view
given their sensitivity to a rise in interest rates.
In Greece, we have seen successful progress made on the second review of the
country's third bailout. Greece has just been able to access the financial
markets for the first time in several years, which we feel will unlock
significant pent-up investment demand into the country. The Greek financial
sector is still much cheaper than its peers, reflecting its recent difficulties
and provides room for substantial improvement if the situation normalises.
Furthermore, the recent successful conclusion of the Second Bailout Review may
eventually lead to the subsequent admission of Greek bonds into the ECB
quantitative easing program, providing the government with a lower cost of debt
and reassuring investors. This coupled with an acceleration of GDP growth
should prove to be just what the banks need to leave behind any questions on
solvency.
In Russia, the sanctions noise has proved a headwind, however the positive
monetary and fiscal policies are continuing. With the economy in good shape,
improving consumer sentiment and record low inflation, there is room for
interest rates to be cut, further aiding the economic recovery. Valuations are
low, dividend yields are high and the potential remains for the market to
re-rate on lower interest rates.
Finally, Turkey remains a trading market prone to fits of exuberance and
excessive pessimism. The economy has been normalizing and we expect further
improvement in tourism trends. The expectations of falling interest rates
coupled with the government's Credit Guarantee Fund are supporting the market,
specifically the financial sector. However, the challenging political backdrop
coupled with the spectre of tighter global liquidity constrains the upside in
our view.
Taken together, we believe that the economic recovery of the region, the
uncorrelated equity returns of the different regional markets, the attractive
valuations supported by high dividend yields, and the lost decade of
performance yet to be recovered, continue to make the Emerging European
equities an attractive opportunity for investors.
Sam Vecht and Christopher Colunga
BlackRock Investment Management (UK) Limited
28 September 2017
PORTFOLIO ANALYSIS
as at 31 July 2017
%
% MSCI EM
Net % % Europe
current Net Net 10-40
% % % % % % assets/ assets assets Index
Russia Turkey Poland Greece Ukraine Other (liabilities) 31.07.17 31.01.17 31.07.17
Consumer - - - - - - - - 2.3 4.6
Discretionary
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Consumer Staples 4.2 2.1 - - 2.6 - - 8.9 4.8 6.1
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Energy 26.7 2.5 (1.9) - - - - 27.3 25.3 30.0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Financials 9.7 3.3 7.6 7.2 - - - 27.8 41.9 36.8
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Health Care 2.5 - - - - - - 2.5 3.2 1.1
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Industrials 3.6 4.2 - - - - - 7.8 6.9 2.6
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Information 2.6 - - - 2.5 - - 5.1 5.4 -
Technology
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Materials 2.7 2.3 - - - - - 5.0 7.4 10.3
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Telecommunication 5.3 2.9 - - - - - 8.2 3.0 4.8
Services
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Real Estate - - 2.9 - - - - 2.9 - 0.5
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Utilities - - - - - - - - 2.9 3.2
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Other - - - - - - 4.5 4.5 (3.1) -
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
% net assets 57.3 17.3 8.6 7.2 5.1 - 4.5 100.0 - -
31.07.17
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
% net assets 48.1 23.5 9.0 7.2 8.8 6.5 (3.1) - 100.0 -
31.01.17
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
% MSCI EM Europe 47.7 18.4 20.2 5.8 - 7.9 - - - 100.0
10-40 Index
31.07.17
======== ======== ======== ======== ======== ======== ======== ======== ======== ========
The table above shows the analysis of the net assets as at 31 July 2017 by
sector and region, compared with the net assets as at 31 January 2017 and the
MSCI EM Europe 10-40 Index breakdown as at 31 July 2017.
FIFTEEN LARGEST INVESTMENTS
as at 31 July 2017
Gazprom - 10.4% (2017: 9.0%) is Russia's largest gas producer and transporter,
with a pipeline export monopoly. Despite its status as one of the most
profitable companies in the region, the Russian energy giant has been out of
favour with investors. We believe that the risks to Gazprom are more than
priced into the valuation and the company pays an attractive dividend yield.
Sberbank - 9.7% (2017: 10.4%) is Russia's largest bank, state-owned. It has
branches throughout the country and a 46% share in the retail deposit market.
The bank continues to build on its restructuring strategy which has driven much
of its success over the past few years, improving its services and the
efficiency with which they are delivered.
Novatek - 6.7% (2017: 6.4%) is Russia's largest independent natural gas
producer. The company is set to enter a new phase of growth through its Yamal
LNG project, whilst the capital expenditure burden for the company is set to
become much lighter, allowing the company to generate increasing amounts of
free cash flow.
Lukoil - 5.2% (2017: 6.0%) was formed in 1991 following the merger of three
state-run companies in western Siberia. The three companies were called
Langepasneftegaz, Urayneftegaz, and Kogalymneftegaz and this heritage is
preserved in the company's current name. Today, the company is the largest
privately-owned company by proved oil reserves. Lukoil is a highly competitive
oil producer even at current low oil prices and generates significant free cash
flow.
PKO Bank Polski - 4.6% (2017: 3.8%) is Poland's largest bank. PKO has one of
the strongest deposit franchises in the country, meaning it has a structurally
lower cost of funding than its peers. The bank trades at attractive valuations
relative to other Polish banks.
Rosneft Oil Company - 4.4% (2017: nil) is the leader of Russia's petroleum
industry include exploration, production, and refining. The company has been
undergoing a restructuring phase, increasing efficiency, acquiring new assets
within Russia and abroad, whilst disposing of stakes in mature fields. The
production growth profile coupled with improving cash flow make the company
attractive.
Lenta - 4.2% (2017: nil) is one of the largest retail chains in Russia and the
country's largest hypermarket chain founded in 1993 in St. Petersburg. Lenta
operates 195 hypermarkets in 78 cities across Russia and 59 supermarkets in the
Moscow, St. Petersburg, Novosibirsk and the Central region with a total of
approximately 1,173,416 sq.m. of selling space. The company continues to grow
its business, should benefit from improved consumer spending on the back of
macro recovery with its stock trading at attractive valuations.
National Bank of Greece - 4.2% (2017: 2.5%) is a leading banking and financial
services company in Greece. It has one of the strongest capital bases in the
country and has been showing steady improvement in the quality of its loan
book.
Turk Hava Yollari - 4.2% (2017: 2.7%) is the national carrier of Turkey with
its headquarters in Istanbul. Leveraging its geographic location as a transit
hub between Europe, Asia and Africa, the company has managed to grow its fleet
of aircraft to over 300 and is one of the largest airlines in the world as
measured by destinations served - reaching over 100 countries globally. We hold
the stock on the expectation of improving margins and increasing passenger
volumes.
Globaltrans - 3.6% (2017: 4.2%) is a leading freight rail transportation group
with operations in Russia, the CIS and the Baltic countries. The company
provides services to more than 500 customers and its key customers include
companies in, or suppliers to, a number of large Russian industrial groups in
the metals and mining and the oil products and oil sectors.
Mobile Telesystems (MTS) - 3.5% (2017: nil) is the largest mobile operator in
Russia and CIS. The company provides mobile and fixed line voice and data
telecommunications services, including data transfer, broadband, pay-television
and various value-added services, as well as selling equipment and accessories.
The industry has improving competitive dynamics and the stock pays an
attractive dividend yield.
TSKB - 3.3% (2017: 2.3%) is a Turkish development bank which focuses on lending
to infrastructure projects. The bank's high-margin, stable revenue projects
combined with their long funding maturities mean that TSKB has one of the most
sustainable earnings streams in the Turkish banking sector.
PZU - 3.0% (2017: 3.8%) is Poland's largest insurance company, active in both
the life and non-life segments for over 16m customers. Its scale and
unparalleled distribution network - both through direct sales and 12 thousand
agents - provide a strong competitive advantage that enables the company to
generate attractive returns.
Alpha Bank - 3.0% (2017: 2.5%) is the fourth largest Greek bank by total
assets, and the largest by market capitalization. The bank offers a wide range
of high-quality financial products and services, including retail banking, SMEs
and corporate banking, asset management and private banking, the distribution
of insurance products, investment banking, brokerage and real estate
management.
Turkcell - 2.9% (2017: 3.0%) is the leading mobile phone operator in Turkey
with a dominant market share position. Improved industry dynamics coupled with
recent regulatory changes led us to believe that earnings had troughed.
All percentages reflect the value of the holding as a percentage of net assets.
Percentage in brackets represents the value of the holding at 31 January 2017.
Together, the fifteen largest investments represents 72.9% of net assets (31
January 2017: 72.9%).
INVESTMENTS
as at 31 July 2017
Market value/
Country of exposure % of
operation US$'000 net assets
Financials
Sberbank Russia 16,018 9.7%
PKO Bank Polski Poland 7,651 4.6%
National Bank of Greece Greece 7,026 4.2%
TSKB Turkey 5,479 3.3%
PZU Poland 5,046 3.0%
Alpha Bank Greece 4,886 3.0%
Aviva Emeklilik ve Hayat Turkey - 0.0%
-------- --------
46,106 27.8%
-------- --------
Energy
Gazprom Russia 17,159 10.4%
Novatek Russia 11,090 6.7%
Lukoil Russia 8,621 5.2%
Rosneft Oil Company Russia 7,310 4.4%
Tupras Turkey 4,242 2.5%
Short CFD Position Poland (3,145) (1.9%)
-------- --------
45,277 27.3%
-------- --------
Consumer Staples
Lenta Russia 7,050 4.2%
MHP Ukraine 4,260 2.6%
Coca Cola Icecek Turkey 3,486 2.1%
-------- --------
14,796 8.9%
-------- --------
Telecommunication Services
Mobile Telesystems (MTS) Russia 5,824 3.5%
Turkcell Turkey 4,790 2.9%
Sistema Russia 2,901 1.8%
-------- --------
13,515 8.2%
-------- --------
Industrials
Turk Hava Yollari Turkey 6,847 4.2%
Globaltrans Russia 5,989 3.6%
-------- --------
12,836 7.8%
-------- --------
Information Technology
Mail.Ru Russia 4,219 2.6%
Luxoft Ukraine 4,170 2.5%
-------- --------
8,389 5.1%
-------- --------
Materials
Norilsk Nickel Russia 4,408 2.7%
Eldorado Gold Turkey 3,848 2.3%
-------- --------
8,256 5.0%
-------- --------
Real Estate
Long CFD Position - Griffin Premium Poland 4,766 2.9%
-------- --------
4,766 2.9%
-------- --------
Health Care
MD Medical Group Russia 4,070 2.5%
-------- --------
4,070 2.5%
-------- --------
Total investments - gross exposure 158,011 95.5%
-------- --------
Less: net exposure on CFDs (1,621) (1.0%)
-------- --------
Equity investments held at fair value 156,390 94.5%
Net current assets 9,181 5.5%
Preference shares (19) 0.0%
-------- --------
Net assets 165,552 100.0%
-------- --------
Long positions 161,156 97.3%
Short positions 3,145 1.9%
-------- --------
Gross positions 164,301 99.2%
======== ========
The total number of investments (excluding CFD positions) held at 31 July 2017
was 25 (31 January 2017: 29). All investments are in equity shares unless
otherwise stated.
During the period, the Company entered into CFDs to gain long and short
exposure on individual securities. At the period end, one short CFD was
outstanding (31 January 2017: nil) with a fair value profit of US$56,000 (31
January 2017: US$nil) and an underlying market value of US$3,145,000 (31
January 2017: US$nil). In addition, one long CFD position was held (31 January
2017: one) with a net fair value profit of US$24,000 (31 January 2017:
US$71,000) and an underlying market value of US$4,766,000 (31 January 2017:
US$2,680,000).
INCOME STATEMENT
for the six months ended 31 July 2017
Revenue US$'000 Capital US$'000 Total US$'000
Six Six Six Six Six Six
months months Year months months Year months months Year
ended ended ended ended ended ended ended ended ended
31.07.17 31.07.16 31.01.17 31.07.17 31.07.16 31.01.17 31.07.17 31.07.16 31.01.17
Notes (unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited) (unaudited) (unaudited) (audited)
Gains on - - - 9,364 17,682 40,597 9,364 17,682 40,597
investments
held at fair
value
through
profit or
loss
Gains on - - - 6 38 171 6 38 171
foreign
exchange
Income from 3 5,987 2,998 3,921 - - - 5,987 2,998 3,921
investments
held at fair
value
through
profit or
loss
(Losses)/ 3 (93) 56 47 (347) 32 302 (440) 88 349
gains on
contracts
for
difference
Other income 3 3 1 20 - - - 3 1 20
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total income 5,897 3,055 3,988 9,023 17,752 41,070 14,920 20,807 45,058
-------- -------- -------- -------- -------- -------- -------- -------- --------
Expenses
Investment 4 (204) (167) (337) (475) (391) (785) (679) (558) (1,122)
management
fees
Other 5 (168) (201) (502) (40) (60) (76) (208) (261) (578)
operating
expenses
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total (372) (368) (839) (515) (451) (861) (887) (819) (1,700)
operating
expenses
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net profit 5,525 2,687 3,149 8,508 17,301 40,209 14,033 19,988 43,358
on ordinary
activities
before
finance
costs and
taxation
Finance (9) (13) (16) (21) (31) (37) (30) (44) (53)
costs
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net profit 5,516 2,674 3,133 8,487 17,270 40,172 14,003 19,944 43,305
on ordinary
activities
before
taxation
Taxation (662) (333) (428) - - - (662) (333) (428)
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net profit 4,854 2,341 2,705 8,487 17,270 40,172 13,341 19,611 42,877
on ordinary
activities
after
taxation
-------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings per 7 13.51 6.47 7.50 23.63 47.74 111.31 37.14 54.21 118.81
ordinary
share (US$
cents)
======== ======== ======== ======== ======== ======== ======== ======== ========
The total column of this statement represents the Company's profit and loss
Account. The supplementary revenue and capital columns are both prepared under
guidance published by the Association of Investment Companies (AIC). All items
in the above statement derive from continuing operations. No operations were
acquired or discontinued during the period.
The net profit for the period disclosed above represents the Company's total
comprehensive income.
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 July 2017
Called up Share Capital
share premium redemption Capital Revenue
capital account reserve reserves reserve Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
For the six months ended 31 July 2017
(unaudited)
At 31 January 2017 4,133 41,684 5,889 114,768 (11,523) 154,951
Total comprehensive income:
Profit for the period - - - 8,487 4,854 13,341
Transactions with owners, recorded
directly to equity:
Ordinary shares purchased for cancellation (1) - 1 (46) - (46)
Treasury shares cancelled (40) - 40 - - -
Dividend paid1 - - - - (2,694) (2,694)
-------- -------- -------- -------- -------- --------
At 31 July 2017 4,092 41,684 5,930 123,209 (9,363) 165,552
-------- -------- -------- -------- -------- --------
For the six months ended 31 July 2016
(unaudited)
At 31 January 2016 4,162 41,684 5,860 75,565 (14,228) 113,043
Total comprehensive income:
Profit for the period - - - 17,270 2,341 19,611
Transactions with owners, recorded
directly to equity:
Ordinary shares purchased for cancellation (9) - 9 (293) - (293)
-------- -------- -------- -------- -------- --------
At 31 July 2016 4,153 41,684 5,869 92,542 (11,887) 132,361
-------- -------- -------- -------- -------- --------
For the year ended 31 January 2017
(audited)
At 31 January 2016 4,162 41,684 5,860 75,565 (14,228) 113,043
Total comprehensive income:
Profit for the year - - - 40,172 2,705 42,877
Transactions with owners, recorded
directly to equity:
Ordinary shares purchased for cancellation (29) - 29 (969) - (969)
-------- -------- -------- -------- -------- --------
At 31 January 2017 4,133 41,684 5,889 114,768 (11,523) 154,951
======== ======== ======== ======== ======== ========
1 In respect of the year ended 31 January 2017 a final dividend of 7.50 cents
per share was declared on 28 March 2017 and paid on 28 June 2017.
The transaction costs incurred on the acquisition and disposal of investments
are included within the capital reserves and amounted to US$204,000 for the six
months ended 31 July 2017 (six months ended 31 July 2016: US$68,000; year ended
31 January 2017: US$248,000).
BALANCE SHEET
as at 31 July 2017
31 31 31
July 2017 July 2016 January 2017
Notes US$'000 US$'000 US$'000
(unaudited) (unaudited) (audited)
Fixed assets
Investments held at fair value 156,390 137,362 157,134
through profit or loss
-------- -------- --------
Current assets
Debtors 5,136 1,472 387
Cash and cash equivalents 5,084 - 1
Collateral pledged in respect of 557 - -
contracts for difference
Derivative financial assets 80 56 71
-------- -------- --------
10,857 1,528 459
-------- -------- --------
Creditors - amounts falling due
within one year
Bank overdraft - (5,215) (1,496)
Amounts payable in respect of (433) - -
contracts for difference
Other creditors (1,243) (1,295) (1,127)
-------- -------- --------
(1,676) (6,510) (2,623)
-------- -------- --------
Net current assets/(liabilities) 9,181 (4,982) (2,164)
-------- -------- --------
Total assets less current liabilities 165,571 132,380 154,970
-------- -------- --------
Creditors - amounts falling due after
more than one year
Preference shares of £1.00 each 8 (19) (19) (19)
(one quarter paid)
-------- -------- --------
Net assets 165,552 132,361 154,951
-------- -------- --------
Capital and reserves
Called up share capital 9 4,092 4,153 4,133
Share premium account 41,684 41,684 41,684
Capital redemption reserve 5,930 5,869 5,889
Capital reserves 123,209 92,542 114,768
Revenue reserve (9,363) (11,887) (11,523)
-------- -------- --------
Total shareholders' funds 165,552 132,361 154,951
-------- -------- --------
Net asset value per ordinary share 7 460.94 366.41 431.28
(US$ cents)
======== ======== ========
STATEMENT OF CASH FLOWS
for the six months ended 31 July 2017
Six months Six months
ended ended Year ended
31 July 2017 31 July 2016 31 January 2017
US$'000 US$'000 US$'000
(unaudited) (unaudited) (audited)
Operating activities
Net profit before taxation 14,003 19,944 43,305
Add back finance costs 30 44 53
Gains on investments and derivatives (9,033) (17,736) (40,945)
Net gains on foreign exchange (6) (38) (171)
Sales of investments 65,641 24,426 77,638
Purchases of investments (58,742) (27,257) (76,329)
Realised (losses)/gains on contracts for (340) (90) 189
difference
(Increase)/decrease in debtors (1,827) (552) 21
Increase/(decrease) in other creditors 611 (223) (848)
Net movement in collateral pledged with (124) 204 204
brokers
Tax on investment income (870) (329) (414)
-------- -------- --------
Net cash generated from/(used in) operating 9,343 (1,607) 2,703
activities
-------- -------- --------
Financing activities
Purchase of ordinary shares (46) (325) (1,039)
Interest paid (30) (44) (53)
Dividend paid (2,694) - -
-------- -------- --------
Net cash used in financing activities (2,770) (369) (1,092)
-------- -------- --------
Increase/(decrease) in cash and cash 6,573 (1,976) 1,611
equivalents
-------- -------- --------
Cash and cash equivalents at the start of the (1,495) (3,277) (3,277)
period
Effect of foreign exchange rate changes 6 38 171
-------- -------- --------
Cash and cash equivalents at end of period 5,084 (5,215) (1,495)
-------- -------- --------
Comprised of:
Cash at bank 5,084 - 1
Bank overdraft - (5,215) (1,496)
-------- -------- --------
5,084 (5,215) (1,495)
======== ======== ========
NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 31 July 2017
1. PRINCIPAL ACTIVITY
The principal activity of the Company is that of an investment trust company
within the meaning of section 1158 of the Corporation Tax Act 2010.
2. BASIS OF PREPARATION
The Company presents its results and positions under FRS 102, 'The Financial
Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102),
which forms part of revised Generally Accepted Accounting Practice (New UK
GAAP) issued by the Financial Reporting Council (FRC) in 2013.
The condensed set of financial statements has been prepared on a going concern
basis in accordance with FRS 102 and FRS 104, 'Interim Financial Reporting'
issued by the FRC in March 2015 and the revised Statement of Recommended
Practice - 'Financial Statements of Investment Trust Companies and Venture
Capital Trusts' (SORP) issued by the Association of Investment Companies (AIC)
in November 2014.
The Company's cash flow statement reflects the presentation requirements of FRS
102, which are different to that prepared under FRS 1. In addition, the
Statement of Cash Flows reconciles to cash and cash equivalents whereas under
previous UK GAAP the cash flow statement reconciled to cash. Cash and cash
equivalents are defined in FRS 102 as 'cash in hand and demand deposits, short
term highly liquid investments that are readily convertible to known amounts of
cash and that are subject to an insignificant risk of changes in value and bank
overdraft which forms an integral part of the Company's cash management policy'
whereas cash is defined in FRS 1 as 'cash in hand and deposits repayable on
demand with any qualifying institution, less overdrafts from any qualifying
institution repayable on demand'.
The accounting policies applied for the condensed set of financial statements
are as set out in the Company's Annual Report and Financial Statements for the
year ended 31 January 2017. This reflects the Company's application of FRS 102.
3. INCOME
Six months Six months
ended ended Year ended
31 July 2017 31 July 2016 31 January 2017
US$'000 US$'000 US$'000
(unaudited) (unaudited) (audited)
Investment income:
UK dividends 2 - -
Overseas dividends 5,964 2,998 3,620
Overseas special dividends - - 301
UK special dividends 21 - -
-------- -------- --------
5,987 2,998 3,921
-------- -------- --------
Net (loss)/income from contracts for (93) 56 47
difference
-------- -------- --------
5,894 3,054 3,968
-------- -------- --------
Other income:
Deposit interest 3 1 1
Other income - - 19
-------- -------- --------
Total income 5,897 3,055 3,988
======== ======== ========
Dividends and interest received during the period amounted to US$4,023,000 and
US$3,000 (six months ended 31 July 2016: US$2,543,000 and US$1,000; year ended
31 January 2017: US$3,881,000 and US$1,000) respectively.
4. INVESTMENT MANAGEMENT FEE
Six months ended Six months ended Year ended
31 July 2017 31 July 2016 31 January 2017
(unaudited) (unaudited) (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Investment management 204 475 679 167 391 558 337 785 1,122
fee
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total 204 475 679 167 391 558 337 785 1,122
======== ======== ======== ======== ======== ======== ======== ======== ========
BFM was appointed as the Company's AIFM with effect from 2 July 2014, having
been authorised as an AIFM by the FCA on 1 May 2014. The management contract is
terminable by either party on six months' notice. Prior to this, BIM (UK) was
appointed as Investment Manager and Company Secretary on 1 May 2009. BIM (UK)
continues to act as the Company's Investment Manager under a delegation
agreement with BFM. BIM (UK) also acted as the Secretary of the Company
throughout the year.
With effect from 1 April 2017 the management fee has been reduced from 1.0% per
annum of the Company's average daily market capitalisation to 0.80% per annum
of the Company's average daily net asset value.
The management fee is allocated 70% to capital reserves and 30% to the revenue
reserve.
5. OTHER OPERATING EXPENSES
Six months Six months
ended ended Year ended
31 July 2017 31 July 2016 31 January 2017
US$'000 US$'000 US$'000
(unaudited) (unaudited) (audited)
Custody fee1, 2 8 33 67
Depositary fees 9 7 15
Audit fee2 20 20 39
Registrar's fees 14 19 29
Directors' fees2 64 84 171
Marketing fees 23 14 27
Marketing fees written back (7) (39) (60)
Other administration costs 37 63 214
-------- -------- --------
168 201 502
-------- -------- --------
Transaction costs taken to capital 40 60 76
-------- -------- --------
208 261 578
======== ======== ========
1 The custody fees at 31 July 2017 include expenses of US$33,000 in respect of
the current period and a write-back of US$25,000 in respect of prior periods.
2 The custody fee, Audit fee and Directors' fees are paid in sterling and are
therefore subject to exchange rate fluctuations. Directors' fees paid to 31
July 2017 also include a write-back of US$22,000 in respect of fees from prior
periods.
6. DIVIDENDS
In accordance with FRS 102, Section 32 'Events After the End of the Reporting
Period', dividends payable on the ordinary shares are not included as a
liability in the financial statements, as dividends are only recognised when
they have been paid.
The Board has not declared an interim dividend (six months ended 31 July 2016:
nil; year ended 31 January 2017: 7.50 cents).
7. EARNINGS AND NET ASSET VALUE PER ORDINARY SHARE
Six months Six months
ended ended Year ended
31 July 31 July 31 January
2017 2016 2017
(unaudited) (unaudited) (audited)
Net revenue profit attributable to ordinary 4,854 2,341 2,705
shareholders
Net capital profit attributable to ordinary 8,487 17,270 40,172
shareholders
-------- -------- --------
Total profit (US$'000) 13,341 19,611 42,877
-------- -------- --------
Equity shareholders' funds (US$'000) 165,552 132,361 154,951
-------- -------- --------
Earnings per share
The weighted average number of ordinary shares 35,916,680 36,179,196 36,087,772
in issue during each period on which the basic
return per ordinary share was calculated was:
-------- -------- --------
The actual number of ordinary shares in issue 35,916,028 36,124,128 35,927,828
at the end of each period on which the
undiluted net asset value was calculated was:
-------- -------- --------
Calculated on weighted average number of
ordinary shares
Revenue profit (cents) 13.51 6.47 7.50
Capital profit (cents) 23.63 47.74 111.31
-------- -------- --------
Total (cents) 37.14 54.21 118.81
======== ======== ========
As at As at As at
31 July 31 July 31 January
2017 2016 2017
(unaudited) (unaudited) (audited)
-------- -------- --------
Net asset value per share (cents) 460.94 366.41 431.28
-------- -------- --------
Ordinary share price* (cents) 427.33 323.29 378.06
======== ======== ========
* The Company's share price is quoted in sterling and the above represents
the US dollar equivalent
8. CREDITORS - AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Six months Six months
ended ended Year ended
31 July 2017 31 July 2016 31 January 2017
US$'000 US$'000 US$'000
(unaudited) (unaudited) (audited)
Allotted, issued and one quarter paid: 19 19 19
-------- -------- --------
Shares in issue at 31 July 2017, 50,000 19 19 19
preference shares of £1.00 each
======== ======== ========
The preference shares confer no right to receive notice of or attend or vote at
any general meeting of the Company except upon any resolution to vary the
rights attached to the preference shares. They carry the right to receive a
fixed dividend of USD0.01 per preference share per annum, payable on demand. On
a winding up or return of capital, the preference shares confer the right to be
paid, out of the assets of the Company available for distribution, the capital
paid up on such shares pari passu with and in proportion to any amounts of
capital paid to ordinary shareholders, but do not confer any right to
participate in the surplus assets of the Company. In the period to 31 July 2017
and the previous year, the preference shareholders waived their rights to any
preference dividend.
9. SHARE CAPITAL AND SHARES HELD IN TREASURY
Ordinary Treasury Total Nominal
shares shares shares value
number number number US$'000
Allotted, called up and fully
paid share capital comprised:
Ordinary shares of 10 cents each
-------- -------- -------- --------
At 1 February 2017 35,927,828 5,400,000 41,327,828 4,133
-------- -------- -------- --------
Shares repurchased/cancelled (11,800) (400,000) (411,800) (41)
-------- -------- -------- --------
At 31 July 2017 35,916,028 5,000,000 40,916,028 4,092
======== ======== ======== ========
During the period, 11,800 ordinary shares were repurchased and cancelled (31
July 2016: 92,800; 31 January 2017: 289,100) for a total consideration of
US$46,000 (31 July 2016: US$293,000; year ended 31 January 2017: US$969,000)
and 400,000 shares were cancelled from treasury (31 July 2016: nil; 31 January
2017: nil).
10. VALUATION OF FINANCIAL INSTRUMENTS
For the six months ended 31 July 2017 and 31 July 2016 and the year ended 31
January 2017, the Company had early adopted the amendments to FRS 102 'Fair
value hierarchy disclosure' effective for annual periods beginning on or after
1 January 2017. These amendments improve the consistency of fair value
disclosure for financial instruments with these required by EU adopted IFRS.
Financial assets and financial liabilities are either carried in the Balance
Sheet at their fair value (investments) or at an amount which is a reasonable
approximation of fair value (due from brokers, dividends and interest
receivable, due to brokers, accruals, cash and cash equivalents and
overdrafts). Section 11 of FRS 102 requires the Company to classify fair value
measurements using a fair value hierarchy that reflects the significance of
inputs used in making the measurements. The valuation techniques used by the
Company are explained in the accounting policies note on page 49 of the Annual
Report and Financial Statements for the year ended 31 January 2017.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to the fair value measurement of the
relevant asset.
The fair value hierarchy has the following levels:
Level 1 - Quoted prices for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if quoted
prices are readily and regularly available from an exchange, dealer, broker,
industry group, pricing service or regulatory agency and those prices represent
actual and regularly occurring market transactions on an arm's length basis.
The Company does not adjust the quoted price for these instruments.
Level 2 - Valuation techniques using observable inputs
This category includes instruments valued using quoted prices for similar
instruments in markets that are considered less than active, or other valuation
techniques where all significant inputs are directly or indirectly observable
from market data.
Level 3 - Valuation techniques using significant unobservable inputs
This category includes all instruments where the valuation technique includes
inputs not based on observable data and the unobservable inputs could have a
significant impact on the instrument's valuation.
This category also includes instruments that are valued based on quoted prices
for similar instruments where significant entity determined adjustments or
assumptions are required to reflect differences between the instruments and
instruments for which there is no active market. The Investment Manager
considers observable data to be that market data that is readily available,
regularly distributed or updated, reliable and verifiable, not proprietary, and
provided by independent sources that are actively involved in the relevant
market.
The level in the fair value hierarchy within which the fair value measurement
is categorised in its entirety is determined on the basis of the lowest level
input that is significant to the fair value measurement. For this purpose, the
significance of an input is assessed against the fair value measurement in its
entirety. If a fair value measurement uses observable inputs that require
significant adjustment based on unobservable inputs, that measurement is a
Level 3 measurement.
Assessing the significance of a particular input to the fair value measurement
in its entirety requires judgement, considering factors specific to the asset
or liability.
The table below gives an analysis of the Company's financial instruments
measured at fair value at the balance sheet date.
Financial assets/(liabilities) Level 1 Level 2 Level 3 Total
at fair value through profit or US$'000 US$'000 US$'000 US$'000
loss at 31 July 2017
Assets:
Equity investments 156,390 - - 156,390
Derivative instruments - CFD's (gross - 4,766 - 4,766
exposure)
Liabilities:
Derivative instruments - CFD's (gross - (3,145) - (3,145)
exposure)
-------- -------- -------- --------
Total 156,390 1,621 - 158,011
======== ======== ======== ========
Financial assets at fair value through profit or Level 1 Level 2 Level 3 Total
loss at 31 July 2016 US$'000 US$'000 US$'000 US$'000
Assets:
Equity investments 137,362 - - 137,362
Derivative instruments - CFD's (gross exposure) - 2,386 - 2,386
-------- -------- -------- --------
Total 137,362 2,386 - 139,748
======== ======== ======== ========
Financial assets at fair value through profit or Level 1 Level 2 Level 3 Total
loss at 31 January 2017 US$'000 US$'000 US$'000 US$'000
Assets:
Equity investments 157,134 - - 157,134
Derivative instruments - CFD's (gross exposure) - 2,680 - 2,680
-------- -------- -------- --------
Total 157,134 2,680 - 159,814
======== ======== ======== ========
CFDs have been classified as Level 2 investments as their valuation has been
based on market observable inputs represented by the underlying quoted
securities to which these contracts expose the Company.
There were no transfers between levels for financial assets and financial
liabilities during the period/year recorded at fair value as at 31 July 2017,
31 July 2016 and 31 January 2017. The Company did not hold any other Level 3
securities throughout the six month period ended 31 July 2017 (six month period
ended 31 July 2016: none; year ended 31 January 2017: none).
11. RELATED PARTY DISCLOSURE
The Board consists of five non-executive Directors, all of whom are considered
to be independent by the Board. None of the Directors has a service contract
with the Company. With effect from 1 February 2017, the Chairman receives an
annual fee of £38,500 (2016: £38,000), the Chairman of the Audit Committee/
Senior Independent Director receives an annual fee of £28,500 (2016: £28,250)
and each of the other Directors receives an annual fee of £24,250 (2016: £
24,000).
At the period end and as at the date of this report members of the Board held
ordinary shares in the Company as set out below:
28 September 31 July
2017 2017
Ordinary Ordinary
shares shares
Rachel Beagles 20,209 20,209
Mark Bridgeman 8,650 8,650
Philippe Delpal 12,000 12,000
Neil England (Chairman) 156,633 156,633
Robert Sheppard 10,000 10,000
======== ========
12. TRANSACTIONS WITH THE AIFM AND THE INVESTMENT MANAGER
BlackRock Fund Managers Limited (BFM) provides management and administration
services to the Company under a contract which is terminable on six months'
notice. BFM has (with the Company's consent) delegated certain portfolio and
risk management services, and other ancillary services, to BlackRock Investment
Management (UK) Limited (BIM (UK)). Further details of the investment
management contract are disclosed in note 4 on page 51 in the Annual Report and
Financial Statements 31 January 2017.
The investment management fee due for the six months ended 31 July 2017
amounted to US$679,000 (six months ended 31 July 2016: US$558,000; year ended
31 January 2017: US$1,122,000).
At 31 July 2017, US$937,000 was outstanding in respect of the investment
management fees (six months ended 31 July 2016: US$558,000; year ended 31
January 2017: US$258,000).
In addition to the above services, BlackRock provided the Company with
marketing services. The total fees paid or payable for the period ended 31 July
2017 amounted to US$23,000 excluding VAT (six months ended 31 July 2016:
US$14,000; year ended 31 January 2017: US$27,000). In addition there was a
write-back of US$7,000 in respect of previous periods (six month ended 31 July
2016: US$39,000; year ended 31 January 2017: US$60,000). Marketing fees of
US$23,000 were outstanding at 31 July 2017 (31 July 2016: US$16,000; 31 January
2017: US$29,000).
13. CONTINGENT LIABILITIES
There were no contingent liabilities at 31 July 2017, 31 July 2016 or 31
January 2017.
14. PUBLICATION OF NON STATUTORY ACCOUNTS
The financial information contained in this half yearly report does not
constitute statutory accounts as defined in section 435 of the Companies Act
2006. The financial information for the six months ended 31 July 2017 and 31
July 2016 has not been audited.
The information for the year ended 31 January 2017 has been extracted from the
latest published audited financial statements, which have been filed with the
Registrar of Companies. The report of the Auditor on those accounts contained
no qualification or statement under sections 498(2) or (3) of the Companies Act
2006.
15. ANNUAL RESULTS
The Board expects to announce the annual results for the year ending 31 January
2018 as prepared under new UK GAAP in March 2018. Copies of the results
announcement can be obtained from the Secretary on 020 7743 3000. The annual
report should be available by early April 2018, with the Annual General Meeting
being held in June 2018.
For further information, please contact:
Simon White, Managing Director, Investment Trusts, BlackRock Investment
Management (UK) Limited
Tel: 020 7743 5284
Press enquiries:
Lucy Horne, Lansons Communications - Tel: 020 7294 3689
E-mail: lucyh@lansons.com
28 September 2017
12 Throgmorton Avenue
London EC2N 2DL
END
The Half Yearly Financial Report will also be available on the BlackRock
Investment Management website at http://www.blackrock.co.uk/beep. 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.
1st Jan change | Capi. | |
---|---|---|
+10.64% | 15.66B | |
+3.53% | 6.37B | |
+15.61% | 4.59B | |
+10.61% | 4.42B | |
-8.18% | 4.04B | |
-6.16% | 3.23B | |
+11.33% | 3.29B | |
+8.10% | 3.14B | |
+0.92% | 2.89B |