BlackRock Emerging Europe delivers strong performance on fifth anniversary
BlackRock Emerging Europe Trust plc. has reported that in the five years to 30th April 2014 the trust has outperformed its benchmark the MSCI EM Europe 10/40 by 17.0% on a share price total return basis.
Over that time period this performance record makes it the top-performing fund in the Morningstar Emerging European equity sector.
Neil England, chairman of the Trust commented: “We took the decision to move the mandate to BlackRock five years ago so this is an important landmark and a good point to reflect and judge performance.
“Despite the headwinds we have faced the Trust has performed very strongly both in absolute terms and relative terms versus its benchmark. Over the five year period to the 30th April 2014 the Trust has generated an annualised share price total return of 10.0% per annum versus the benchmark which has returned 7.6% per annum.”
Commenting on the drivers of this performance, David Reid commented:
“The outperformance of the Trust over this period has been driven by three important factors. Firstly our investment philosophy; we look for companies that can generate strong future cash flow returns and are priced at attractive valuations. We aim to deploy our capital where it is required and respected, not in the latest crowded trade.
“Looking ahead and despite the strong performance of markets over the past five years the emerging Europe region is still trading at very low valuations. Valuations are currently at under six times price-to-earnings*, not far from valuations last seen in the 2008 financial crisis, which means that if we’re looking ahead to the next five years there’s potentially another opportunity ahead of us to make some really good returns.”
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