BlackRock Emerging Europe Investment Trust

BlackRock Emerging Europe Investment Trust is more diversified both in terms of economies and sectors. It is a high conviction concentrated portfolio of 25 stocks (the top ten make up nearly 60% of the fund)

For investors prepared to accept high volatility investing in Eastern Europe can provide greater returns than Western Europe. Russia remains the dominant economy and most funds will be skewed in this direction. This means investors may not fully benefit from the potential upside from other Eastern countries as the Russian weighting is high.

Our Adventurous Portfolios have exposure to Eastern Europe via the JPM New Europe Fund. The manager deploys a high conviction investment style (the top ten holdings account for 50% of the fund), with a bias to Russia (68.5%), Poland (12.8%) and Turkey (8.2%).

As an alternative the BlackRock Emerging Europe Investment Trust is more diversified both in terms of economies and sectors. It is a high conviction concentrated portfolio of 25 stocks (the top ten make up nearly 60% of the fund); with the main exposures in Russia (52.3%), Turkey (21.9%), Poland (14.7%), Hungary (8%) and Turkmenistan (7.2%). Across sectors its focus is on Financials (39.7%), Energy (30%), Consumer Staples (13%) and Information Technology (8.4%).

For investors looking to access the market this appears to be the most diversified fund covering this region. In 2010, 2011, 2013 and 2014 (to date) it outperformed the JPM Fund and as an investment trust it carries a discount of nearly 10%.

Fund Facts Morningstar

Notes

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