TIDMBRGE 
 
BLACKROCK GREATER EUROPE INVESTMENT TRUST plc (LEI - 5493003R8FJ6I76ZUW55) 
All information is at 30 November 2018 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)           -1.1%     -9.4%      2.0%     40.1%        345.7% 
 
Net asset value* (diluted)            -1.1%     -9.4%      2.2%     40.9%        346.1% 
 
Share price                           -0.2%     -9.2%     -1.9%     39.6%        328.0% 
 
FTSE World Europe ex UK               -0.5%     -7.0%     -4.6%     33.8%        227.0% 
 
* Diluted for treasury shares and subscription shares. 
Sources: BlackRock and Datastream 
 
 
At month end 
 
Net asset value (capital only):                                                 341.90p 
 
Net asset value (including income):                                             342.22p 
 
Net asset value (capital only)1:                                                341.90p 
 
Net asset value (including income)1:                                            342.22p 
 
Share price:                                                                    325.50p 
 
Discount to NAV (including income):                                                4.9% 
 
Discount to NAV (including income)1:                                               4.9% 
 
Net cash:                                                                          0.9% 
 
Net yield2:                                                                        1.8% 
 
Total assets (including income):                                                GBP295.7m 
 
Ordinary shares in issue3:                                                   86,409,691 
 
Ongoing charges4:                                                                 1.09% 
 
1  Diluted for treasury shares. 
2  Based on a final dividend of 4.00p per share and an interim dividend of 
1.75p per share for the year ended 31 August 2018. 
3  Excluding 23,919,247 shares held in treasury. 
4  Calculated as a percentage of average net assets and using expenses, 
excluding interest costs, after relief for taxation, for the year ended 
31 August 2018. 
 
Sector Analysis                 Total     Country Analysis             Total 
                               Assets                                 Assets 
                                   (%)                                    (%) 
 
Industrials                       28.4    Switzerland                    18.2 
 
Health Care                       24.4    France                         15.1 
 
Technology                        13.4    Germany                        12.2 
 
Financials                        11.6    Denmark                        11.5 
 
Consumer Goods                     9.5    Netherlands                     9.5 
 
Consumer Services                  4.8    Italy                           6.0 
 
Basic Materials                    3.4    Russia                          4.7 
 
Telecommunications                 2.0    Sweden                          4.3 
 
Oil & Gas                          1.6    United Kingdom                  4.0 
 
Net Current Assets                 0.9    Israel                          3.6 
 
                                 -----    Spain                           2.4 
 
                                 100.0    Finland                         2.3 
 
                                 =====    Ireland                         2.3 
 
                                          Belgium                         2.0 
 
                                          Greece                          1.0 
 
                                          Net Current Assets              0.9 
 
                                                                        ----- 
 
                                                                        100.0 
 
                                                                        ===== 
 
 
 
Ten Largest Equity Investments 
 
Company                                           Country                          % of 
                                                                           Total Assets 
 
Lonza Group                                       Switzerland                       7.8 
 
Safran                                            France                            6.6 
 
Novo Nordisk                                      Denmark                           5.9 
 
SAP                                               Germany                           5.6 
 
Sika                                              Switzerland                       4.4 
 
ASML                                              Netherlands                       4.2 
 
RELX                                              United Kingdom                    4.0 
 
Unilever                                          Netherlands                       3.6 
 
Thales                                            France                            3.3 
 
Sberbank                                          Russia                            3.1 
 
Commenting on the markets, Stefan Gries, representing the Investment Manager 
noted: 
 
During the month, the Company's NAV fell by 1.1% and the share price decreased 
by 0.2%. For reference, the FTSE World Europe ex UK Index returned -0.5% during 
the period. 
 
European ex UK markets fell in November, led lower by oil & gas and basic 
materials, as commodity prices came under pressure. The best performing sectors 
were the telecommunications and utilities sectors, as investors moved capital 
into more defensive areas of the market, given the cocktail of global risks 
which are presenting potential further downside pressure for markets. 
 
European Central Bank (ECB) President Mario Draghi reiterated that the bank 
remains on track to end bond purchases of currently EUR15 billion a month in 
December, despite ongoing 'prominent' risks. Draghi and the bank's chief 
economist, Peter Praet, both emphasised that the end of new bond buying would 
not signify the end of stimulus given the reinvestment of maturing assets. 
 
The highlighted risks include a deepening economic slowdown, with GDP growth 
slipping to 0.2% in the third quarter from 0.4% in the quarter before. Headline 
consumer price inflation slipped to 2.0% from 2.2% in October. Stripping out 
volatile food and fuel prices, core inflation edged lower to 1.0% from 1.1%. 
 
Italy also remains a risk for the region, with the country's populist 
government under threat of disciplinary action over its spending plans and 
budget deficit for 2019. The yield on the 10-year Italian government bond 
initially rose to 3.62%, before falling steeply to end November 22 bps lower on 
the month at 3.21% after the government indicated that it would review its 
budget plans. 
 
The Company underperformed the market over the month, with both stock selection 
and sector allocation denting performance. 
 
The higher allocation to industrials versus the reference index proved 
disappointing for relative returns. This was also true of the lower weighting 
to the utilities sector, which moved higher over the month as investors move 
more capital into defensive areas of the market given concerns around the 
economic cycle. Positively, the greater allocation to health care aided 
returns. 
 
A holding in dental implant manufacturer, Straumann, proved negative for 
performance. The stock has sold off over recent months as momentum has reversed 
in the market, punishing 'well loved' stocks with higher valuation. We do not 
believe the underlying fundamentals of the business have changed and are 
confident in the growth trajectory; therefore we continue to hold the position. 
 
Not holding Roche also detracted from returns as capital flowed into large-cap 
defensive stocks. Whilst we recognise that Roche has a relatively robust 
Research & Development engine, we believe there are large risks to their 
topline posed by biosimilars. 
 
Positively, a position in Novo Nordisk aided returns as trials for 
cardiovascular outcomes on their oral semaglutide drug were favourable. This 
should allow the company to apply to the FDA for a cardiovascular label for 
their existing injectable drug, which could prove a boost to sales in the 
future. 
 
At the end of the period the Company had a higher allocation than the reference 
index towards industrials, technology, consumer services and health care. A 
lower allocation was held in financials, consumer goods, utilities, 
telecommunications, basic materials and oil & gas. 
 
Outlook 
 
The range of potential economic outcomes is widening. Whilst stimulus has 
helped to push US growth ahead, pockets of slower growth are appearing across 
regions and industries. Overall, as with the onset of this year, we think 
global growth will become more moderate, but do not yet believe we are moving 
towards a recessionary environment, either in Europe or globally. In saying 
this, we are increasingly sceptical of the situation in Italy and believe there 
is greater downside risk emanating from this region. Increased risks of 
contagion may dampen our view on European fundamentals. At present, however, we 
continue to see a relatively robust environment for the consumer, who is 
enjoying wage increases but a low level of inflation, as well as strength in 
certain industries such as construction, where order books are improving. 
Following the market re-set, valuation risk also appears less extended and 
intra-market positioning less extreme. As the economic situation unfolds in the 
global arena and fixed income markets potentially stabilise, there may be 
opportunities to add to attractively valued companies which are exhibiting 
strong earnings power. In the near-term, we have moved our portfolios more 
defensive at the margin acknowledging potential risks on the horizon. 
 
20 December 2018S 
 
Latest information is available by typing www.brgeplc.co.uk 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. 
 
 
 
END 
 

(END) Dow Jones Newswires

December 20, 2018 09:26 ET (14:26 GMT)

Blackrock Greater Europe... (LSE:BRGE)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Blackrock Greater Europe... Charts.
Blackrock Greater Europe... (LSE:BRGE)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Blackrock Greater Europe... Charts.