Eastern European trust changes name and investment policy

The Eastern European investment trust has amended its investment policy and changed its name after shareholders voted in favour of the move.

The trust, which will now be known as BlackRock Emerging Europe, will reduce its number of holdings to run a more concentrated portfolio. It has typically held about 50 investments but this will be brought down to between 20 and 30 stocks.

Managers Sam Vecht and David Reid will be able to adopt a more conviction-based approach thanks to the move.

The trust’s benchmark has been kept as the MSCI Emerging Europe 10/40 Index but the managers will not be constrained by it, with weightings determined by the managers’ conviction in stocks rather than with reference to their presence in the benchmark.

Vecht says: “We look forward to managing the company’s investment portfolio under this conviction-led policy.

“The region has many attractive long-term investment opportunities, which remain cheaply valued in both absolute terms and relative to their own history.

“As an investment trust, we believe that the company’s structure is ideally suited to investing in emerging European markets, where liquidity can often be lower than in more mature stockmarkets.”