REG-BlackRock Greater Europe Investment Trust Plc: Final Results
04/11/2025 17:00
BlackRock Greater Europe Investment Trust plc
LEI: 5493003R8FJ6I76ZUW55
Annual Report and Financial Statements 31 August 2025
Overview and performance
Performance record
As at As at
31 August 31 August
2025 2024
Net assets (£’000) 1 569,079 640,300
Net asset value per ordinary share (pence) 598.05 644.60
Ordinary share price (pence) 570.00 601.00
Discount to cum income net asset value 2 4.7% 6.8%
FTSE World Europe ex UK Index 3 2461.90 2219.24
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Annual performance (with dividends reinvested) For the year For the year
ended ended
31 August 31 August
2025 2024
Net asset value per share 2 -6.1% 16.4%
Ordinary share price 2 -3.9% 15.5%
FTSE World Europe ex UK Index 3 10.9% 15.8%
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Performance since inception 4 (with dividends reinvested) For the period For the period
since inception since inception
to 31 August to 31 August
2025 2024
Net asset value per share 2 742.7% 797.6%
Ordinary share price 2 714.0% 747.3%
FTSE World Europe ex UK Index 3 522.5% 461.2%
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For the year For the year Change
ended ended %
31 August 31 August
2025 2024
Revenue
Net profit on ordinary activities after taxation (£’000) 6,684 7,379 -9.4
Revenue earnings per ordinary share (pence) 5 6.89 7.35 -6.3
Dividends (pence)
Interim dividend 1.75 1.75 –
Final dividend 5.40 5.25 +2.9
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Total dividends payable/paid 7.15 7.00 +2.1
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1 The change in net assets reflects payments for shares
repurchased into treasury, portfolio movements and dividends paid.
2 Alternative Performance Measures, see Glossary
contained within the Annual Financial Report.
3 Reference index.
4 20 September 2004.
5 Further details are given in the Glossary contained
within the Annual Financial Report.
Chairman’s Statement
Performance
For the year ended 31 August 2025, the Company’s net asset value
per share (NAV) returned -6.1% and the share price -3.9%.
In comparison, the FTSE World Europe ex UK Index (the Company’s reference
index) returned +10.9% (all percentages calculated in Sterling terms with
dividends reinvested).
This disappointing performance was driven by a range of sector and stock
specific factors, with Novo Nordisk (the portfolio’s largest holding at the
end of the prior financial year) being the single largest detractor in the
period under review. In addition, the portfolio’s underweight exposure to
financials and overweight positioning in technology stocks were also headwinds
to relative performance. Part of the broader challenge for the Company this
year was the continuing trend for the type of quality growth stocks which have
performed so well for your Company over the longer-term to remain out of
favour and disappoint. Investors have preferred to focus instead on European
value stocks (which they perceive as underpriced). This trend has been ongoing
for some time, and the Board notes that the Company’s performance is also
behind the reference index over both three years and five years. However, over
a ten-year period the Company’s NAV per share has outperformed the reference
index by 13.1%.
Market overview
Overall, European equity markets outperformed their US counterparts for much
of the first half of 2025. After a period of outflows, European equity funds
received inflows from both domestic and international investors. Policy
uncertainty, a potentially inflationary trade war, a declining US Dollar and
high valuations have led to investors diversifying their portfolios away from
US assets, benefiting European markets. One of the advantages in Europe has
been the European Central Bank (ECB) anticipating low inflation and cutting
interest rates accordingly, whilst the US Federal Reserve is wanting more
clarity on whether President Trump’s policy shifts on global trade and
tariffs will be inflationary or recessionary.
More details on this and the significant contributors to and detractors from
performance during the year are given in the Investment Manager’s Report
below.
Portfolio manager changes
The Board notes that the underperformance of growth-oriented funds is a factor
of the challenging market backdrop that we are currently facing. With this in
mind, our Manager has proposed adopting a more balanced approach by giving
greater consideration to investing selectively in quality value ideas, which
should help to dampen fund volatility, ultimately resulting in enhanced return
outcomes over time. Any changes will be implemented carefully, in line with
the opportunity set presenting itself in markets. Importantly, the core of the
portfolio will remain invested in Europe’s most compelling quality growth
stocks, and the Board are conscious that the Company has outperformed its
growth focused peers in the period under review.
The Board believes the adoption of this approach is in the best interests of
shareholders, and to facilitate this Brian Hall will be appointed as a
co-portfolio manager. Brian is a multi-award-winning portfolio manager with 26
years of investment experience, and has worked with Stefan for nearly 19 years
having joined BlackRock in 2007. Brian runs the European Core strategy which
has returned 4.3% annualised relative outperformance since inception in 2019.
His detailed biography can be found within the Investment Manager’s report
below. The Board believes that the addition of Brian as an experienced
investor with a quality value focus will bring the flexibility needed to
ensure future success of the portfolio. These changes will take immediate
effect. No changes are proposed to the Company’s investment objective and
policy. Alexandra Dangoor will step down as co-manager and the Board thank her
for her commitment and contribution to the Company.
Reduction in management fee
I am pleased to report that, following a further review of management fees and
engagement with BlackRock, and as announced on 30 September 2025, the Board
reached an agreement to amend the Company’s management fee arrangements.
With effect from 1 September 2025, the Company’s annual management fee,
which is payable quarterly in arrears, reduced from 0.85% per annum of net
asset value on net assets up to £350 million and 0.75% per annum of net asset
value above £350 million to 0.65% of net assets up to and including £400
million, 0.60% of net assets in excess of £400 million up to and including
£1 billion and 0.525% of net assets in excess of £1 billion, representing a
significant decrease.
This revised fee will result in a blended annual management fee rate for the
Company of 0.634% based on the Company’s average net assets for the year to
31 August 2025 of £593.3 million. It is estimated that the Company’s
ongoing charges ratio (OCR) will reduce, allowing it to achieve an
illustrative OCR of 0.775% 1 (based on average net assets
for the year ended 31 August 2025), representing a material improvement to the
Company’s OCR of 0.95% for the year ended 31 August 2025 .
Revenue earnings and dividends
Your Company’s total revenues each year are a reflection of the
dividends we receive from portfolio companies. The revenue return per share
for the year ended 31 August 2025 amounted to 6.89p per share, which compares
with 7.35p per share for the previous year, a decrease of 6.3%.
At present, the dividends paid from the Russian securities in the Company’s
portfolio are held in a custody ‘S’ account in Moscow. The balance as at
31 August 2025 was equivalent to approximately £2.69 million at the exchange
rate applicable on that date. As there is significant uncertainty that the
sums in the ‘S’ account will ever be received by the Company, they are not
recognised in the Company’s net asset value or in its income statement.
The Board also monitors the underlying local value of the Russian securities
on the Moscow Stock Exchange which at 31 August 2025 were approximately £29.0
million at the exchange rate applicable on that date, although again there is
much uncertainty of these values ever being realisable by the Company. These
investments have been held at a nominal value of £0.01 in the net asset value
at 31 August 2025.
In May the Board declared an interim dividend of 1.75p per share (2024: 1.75p)
and the Board is proposing the payment of a final dividend of 5.40p per share
for the year (2024: 5.25p). This, together with the interim dividend, makes a
total dividend for the year of 7.15p per share (2024: 7.00p), an increase of
2.1% and the 19th successive increase, meaning that the Company has now
increased its dividend every year since inception. The dividend will be funded
from revenue received in the year together with a transfer from revenue
reserves of £74,000. Subject to shareholder approval, the dividend will be
paid on 19 December 2025 to shareholders on the Company’s register on 21
November 2025, the ex-dividend date being 20 November 2025.
Management of share rating
Over the year to 31 August 2025, the Company’s shares have traded
at an average discount of 6.2%. During the year, the Company purchased
4,176,739 ordinary shares at an average price of 579.18p per share and an
average discount of 6.2% for a total cost of £24,191,000. Since the year end
up to 31 October 2025, a further 1,171,315 ordinary shares have been bought
back at an average price of 589.72p per share for a total cost of £6,908,000.
All shares have been placed in treasury. To put this in
context, share buy back activity remains elevated across the closed end fund
sector as a whole as boards grapple with investor selling pressure, reaching a
record high of £6.6 billion for 2025 year to date (an increase of 40% from
the equivalent period in 2024).
As reported in the Half Yearly Financial Report, the Directors exercised their
discretion not to operate the half yearly tender offers in November 2024 and
May 2025. It was also announced on 22 September 2025 that the Board had
decided not to proceed with the semi-annual tender offer in November 2025. The
Board believes that the share buyback activity undertaken has been beneficial
in improving the Company’s share rating and is in shareholders’ interests.
As the Company’s discount was trading at 5.0% on 19 September 2025 and
trading within the discount range of its peer group, the Board concluded that
it was not in the interests of shareholders as a whole to implement the
November 2025 semi-annual tender offer.
The Directors recognise the importance to investors that the market price of
the Company’s shares should not trade at a significant premium or discount
to the underlying NAV. Accordingly, in normal market conditions, the Board may
use the Company’s share buy back and share issue powers, or operate six
monthly tender offers, to ensure that the share price does not go to an
excessive discount or premium to the underlying NAV. Resolutions to renew the
Company’s semi-annual tender offers and the authorities to issue and buy
back shares will be put to shareholders at the forthcoming Annual General
Meeting.
Board composition
I previously advised that it was my intention to step down from the
Board, subject to a suitable successor being identified. As announced in
March, Andrew Impey was appointed as a non-executive Director of the Company
with effect from 28 April 2025 and I am now very pleased to report that it has
been agreed he will succeed me as Chairman following the conclusion of the
Annual General Meeting in December. Andrew is currently non-executive chair of
the Pacific Assets Trust plc and has over 34 years’ experience in
institutional investment management and wealth management.
It has been a privilege to be Chairman of your Company for the past nine
years. I would like to thank all shareholders for their support, as well as
thanking my Board colleagues and the team at BlackRock for making my tenure as
Chairman as rewarding and enjoyable as it has undoubtedly been. I leave the
Company in the capable hands of the Board and Investment Manager and wish it
every success for the future.
Board engagement
The Board takes its governance duties very seriously and in June 2025 joined
representatives of the Investment Manager on a three-day trip to Amsterdam to
meet the management teams of some of the companies we invest in. The aim of
the trip, which represented a significant time commitment from the Board, was
to gain a deeper understanding of the Portfolio Manager’s due diligence
processes when meeting with investee companies, as well as gaining enhanced
knowledge of these companies, their governance policies and business models
and the operational challenges that they are facing in current markets. During
the course of the visit the Board undertook site tours and met with
representatives from Adyen, ASM International, IMCD, ASML and BE Semiconductor
Industries (collectively representing 12.9% of the Company’s portfolio as at
31 August 2025).
Shareholder communications
The Board appreciates how important access to regular information is
to our shareholders. To supplement our website, we offer shareholders the
ability to sign up to the Trust Matters newsletter which includes information
on the Company, as well as news, views and insights. Further information on
how to sign up is included on the inside cover of the Annual Report and
Financial Statements.
Outlook
Since the financial year end and up to close of business on 31
October 2025, the Company’s NAV has increased by 5.7% compared with a rise
in the reference index of 5.6% over the same period.
After a good start to the year, European equities are more expensive than they
were earlier in 2025 but still remain at a considerable discount to US stocks.
Additionally, although the US has been favoured for a long time, policy
uncertainty under President Trump means that view is being reassessed and
Europe has a good selection of attractively valued leading global businesses.
The ECB has halved its interest rate to 2% and monetary policy will contribute
to the region’s growth outlook. Germany’s fiscal package and increased
defence spending in the European Union are also likely to support growth from
2026 onwards and greater unity and a pro-growth agenda across Europe could
also boost activity. There is, however, a question mark over the speed and
extent to which these will feed through into growth.
The Board is aware that after a period of exceptionally strong performance,
the Company’s performance in recent years has been less successful, as
growth has significantly underperformed value in European markets and there
have been some stock-specific disappointments. Despite this, the portfolio
managers are long-term investors and follow a well-defined investment process.
Their focus will continue to be on selecting high-quality companies with a
unique product or service that generate high and predictable returns on
capital and capable management teams with a track record of value creation.
Annual General Meeting (AGM) arrangements
The Annual General Meeting of the Company will be held in person at
the offices of BlackRock at 12 Throgmorton Avenue, London EC2N 2DL on
Thursday, 11 December 2025 at 12 noon. Details of the business of the meeting
are set out in the Notice of Annual General Meeting within the Annual Report.
The Board very much looks forward to meeting shareholders and answering any
questions you may have on the day.
For the benefit of shareholders who are unable to attend this year’s AGM in
person, we have arranged for the proceedings to be viewed via a webinar. You
can register to watch the AGM by scanning the QR Code inside the cover of the
Annual Report or by visiting our website at
www.blackrock.com/uk/brge and clicking on the
registration banner.
Please note that it is not possible to speak or vote at the AGM via this
medium and joining the webinar does not constitute attendance at the AGM.
Shareholders wishing to exercise their right to attend, speak and vote at the
AGM should either attend in person or exercise their right to appoint a proxy
to do so on their behalf. For further details please refer to the Annual
Report.
1 Alternative Performance Measure.
ERIC SANDERSON
Chairman
4 November 2025
Investment Manager’s Report
Market review
For the year ended 31 August 2025, the share price of the Company
fell 3.9%, while the net asset value per share fell by 6.1%. The reference
index gained 10.9% over the same period. All percentages in Sterling terms
with dividends reinvested.
We must acknowledge disappointment in having experienced several large
setbacks in our portfolio positions over the year and not moving faster or
more decisively as the outlook for earnings for individual companies started
to deteriorate. This included a position in Novo Nordisk (which was ultimately
exited in August) and the Company’s semiconductor holdings (ASML, ASMi, BE
Semiconductor), which are discussed in greater detail later in the report. We
believe it is also important to note the difficult market backdrop which has
existed for most active market participants. Although the broad European
market rose, this was driven by a narrow range of stocks and themes and the
portfolio’s quality growth positioning remained out of favour.
In anticipation of the US presidential elections in November 2024, US
exceptionalism was at the forefront and interest in Europe remained relatively
muted. However, European markets started 2025 strongly as hopes for a
Ukraine-Russia ceasefire, increased German fiscal spending plans, and
increased commitment to defence spending boosted the region. This momentum was
derailed by the emergence of tariff and trade war risks, triggering a broad
risk-off move across global markets.
The end of the first quarter of 2025 was characterised by strong momentum
reversals as share price trends flipped sharply both on policy speculation and
potential earnings change. While defensive and domestic European positioning
rallied, global cyclicals fell and “growth” companies underperformed
“value” companies by more than 11% in Europe over the quarter (see chart
in the Annual Report and Financial Statements), a level only exceeded during
extreme events such as the dot-com bubble in 2000, the global financial crisis
(GFC) in 2008 and the COVID-19 pandemic in 2020.
This period also saw a strong resurgence in European domestic equities,
particularly those operating in traditionally defensive areas of the market
with depressed valuations. European utilities make an interesting case study:
in the six weeks to the end of the first quarter of 2025, utilities went from
deeply oversold levels versus the European market to significantly overbought
(see chart in the Annual Report and Financial Statements). The 15%
outperformance during these six weeks has only ever been witnessed five times
in history, all of which occurred during significant market events such as
Black Monday in 1987, the GFC and at the height of COVID-19. On those
occasions, the broader market was down 20% or more, whilst in this instance
the market was down around 5%.
As the European rally continued into the second quarter of 2025, market
leadership remained unusually narrow, with only four industries driving more
than 80% of year-to-date returns: banks, aerospace and defence, insurance and
utilities. Although earnings and conference seasons refocused attention on
company fundamentals, volatility and extreme share price movements have
persisted, even with decreasing levels of uncertainty as trade agreements
progressed. In fact, the earnings season of the second quarter of 2025 saw the
second largest average moves after results in Europe since 2010, despite the
average magnitude of earnings per share (EPS) surprises being at historical
lows.
These unfavourable market conditions (characterized by strong momentum
reversals, heightened market volatility, narrow market leadership) made it
challenging for investors seeking to outperform the market. This was felt
across the European Growth landscape as 95% of active managers failed to beat
the market over the one-year period to 31 August 2025. For context, over three
years this number still sits at 90%, which is unprecedented in the recent
history of the industry. Whilst we do not see this as an excuse for the
underperformance of the Company over the period, we believe it helps
contextualise the adverse backdrop for managing a quality growth portfolio.
The quality growth focus of the portfolio has remained a performance headwind
for a sustained period (European Growth has underperformed European Value by
5.3% a year over the past five years). Therefore, we believe it has been
important to evolve the investment philosophy to account for the changing
market regime. At the core, our focus remains on investing in enablers of
change linked to long duration investment cycles. However, we have also added
more balance to the portfolio by expanding into sectors which have seen a
systemic evolution, benefiting the outlook for the long-term earnings power of
certain industries. We have seen this in the European defence sector. This was
previously a low -growth, mid -return -on -equity (ROE) industry; however,
recent changes have substantially increased both earnings growth and the
visibility of those earnings. European banks have also experienced a
meaningful change as higher interest rates boosted profitability and capital
returns to investors. Allocations to both these sectors have been
significantly increased.
We believe the addition of Brian Hall as a portfolio manager complements the
evolving philosophy. With 26 years of investment experience, including 15
years managing European value, income and core portfolios, Brian will bring
differentiated insights of quality value opportunities in the European market.
This should help to create further balance, enhance returns and relieve
pressures stemming from an extended style cycle.
Brian is a Managing Director and a member of the European Equity team within
BlackRock’s Fundamental Equity Group and is a co-Manager for the European
Income and European Value portfolios. Prior to joining BlackRock in 2007,
Brian was with Lehman Brothers, where he was a Director responsible for Equity
Research on the European Capital Goods team. He began his career with Lehman
in 1999. Brian earned a BSc. degree, first class honours in Economics with
study in Continental Europe from Bristol University in 1999.
Portfolio performance
Novo Nordisk (Novo)
Novo was the top detractor over the last twelve months. The Danish
pharmaceutical company endured a difficult year with performance hampered by
clinical trial disappointments, intensifying competitive pressures and a
series of strategic missteps. While it has been a long-standing holding in the
Company and remains one of the top contributors over the past five years,
recent developments have significantly weighed on sentiment.
Shares fell sharply on the day of the long anticipated CagriSema Phase III
trial results in late December. Investors were disappointed with the 22.7%
weight loss achieved which fell short of the expected 25% target and delivered
no clear market leading advantage over existing treatments. An additional
trial in March also delivered disappointing results, with only 62% of patients
reaching the highest dose.
A longer-than-expected overhang of compounders (companies which produce
medication not approved by the Food and Drug Administration in the US) added
to our concerns. These compounders, initially introduced during supply
shortages, captured meaningful market share and undermined Novo’s ability to
deliver growth in prescriptions. Although regulatory efforts to remove the
compounded drug supply have been made, prescription data failed to
reaccelerate, causing us to significantly reduce our holding in the first
quarter.
As a result of faltering prescription trends, Novo had to issue a profit
warning for 2025 in July, citing slower-than-expected growth, both in US and
international obesity markets. The announcement coincided with the appointment
of a new CEO following a brief search, which further disappointed investors
who had hoped for an external, commercially focused leader to revamp strategy
and execution. The company’s overall lack of shareholder focus, combined
with changing fundamentals of the obesity market’s growth potential, finally
led us to fully exit the position in August.
Luxury goods
Share price performance for the Company’s luxury goods holdings
– Hermès, Compagnie Financière Richemont (Richemont),
Ferrari and LVMH
– has been mixed over the period. Despite a strong end to 2024 with an
improved perception of trading for the industry, it has since become clear
that the pricing boom from the COVID-19 period has led to a longer period of
digestion. With the benefit of hindsight, it now appears that “soft”
luxury goods companies (making fashion, handbags and accessories) raised
prices too much during the pandemic, while lacking the innovation required to
retain demand. This was evident for aspirational brands such as Louis Vuitton
when LVMH reported an unprecedented 9% decline in sales for their Fashion
Leather Goods division during the second quarter of 2025.
At this stage, we prefer “hard” luxury goods companies, (making watches
and fine jewellery), such as Richemont, which followed a prudent pricing
strategy with only moderate increases, thus retaining an element of pricing
power in the future.
Further headwinds dampened sentiment for the consumer discretionary sector.
These included lower levels of US tourism to Europe due to the weakening US
Dollar which contributed to a reduction in consumer spending. Increasing raw
material costs and unfavourable currency dynamics have also put pressure on
margins.
Going forward, we believe selectivity will be key. We retain long-term
conviction in top brands appealing to high-end consumers who tend to be less
sensitivity to price increases. For example, Hermès’ timeless brand does
not rely on the success of seasonal designers in the same way as Gucci, or
even Louis Vuitton. Ferrari have also demonstrated their ability to endure
weaker consumer trends by building an order book which underpins earnings
extending to 2027.
Semiconductors
The Company’s holdings in semiconductor companies –
ASML , ASM International
and BE Semiconductor
– were among the top detractors over the period. Artificial intelligence
(AI) remains a strong theme, despite concerns about spending plans and demand
in January when Chinese AI startup DeepSeek caused a significant technology
sell-off. However, traditional end markets such as smartphones, personal
computers and automobiles have remained weak.
ASML have had several idiosyncratic challenges which ultimately led to the
holding being significantly reduced to an underweight position. Despite its
monopolistic position in the global lithography machine market, a slow-down in
Moore’s Law (the principle that states that the speed and capability of
computers can be expected to double every two years, as a result of the number
of transistors a microchip can contain) means that productivity gains are no
longer sufficient to justify the US$400 million price tag for its Extreme
Ultraviolet (EUV) lithography machines. Additionally, with two out of ASML’s
three logic foundry clients struggling to produce chips effectively (Intel and
Samsung), only TSMC is capable of innovating to the smaller 5 nanometer (nm)
and 3nm node sizes. It is only once 1.7nm chips are capable of being produced
and hybrid bonding techniques are adopted that an inflection in efficiency
will be seen and once again benefit ASML.
These issues amounted to a meaningful reduction in 2025 revenue guidance by
ASML in October, driven by a decrease in the assumptions for EUV tool
shipments (from 70 to 51) and a significant haircut to expected sales into
China as the US holds the power to restrict ASML selling to the region. The
outlook for the company continues to be unclear with ASML failing to commit to
growth in 2026, further concerning investors.
Banks
Banks were a consistent source of positive attribution over the
period, with holdings in Allied Irish Banks
, KBC Groep and
Caixabank benefiting from strong earnings momentum.
Earnings have remained robust, supported by positive trends related to strong
deposit and loan growth, as well as well-capitalised balance sheets – all
positive trends which have arguably been observed for some time. Importantly,
net interest income has remained resilient through the toughest period of the
rate cutting cycle. We maintain our conviction in the banks over the medium
term due to their high and attractive shareholder returns and modest valuation
compared to historic averages, despite the recent strong performance.
Aerospace and defence
Industrials were the top sectoral contributor to active returns over
the period, primarily driven by the Company’s overweight allocation to
aerospace and defence. Although these industries are often grouped together,
we see two different, yet exciting, investment opportunities in this sector.
Firstly, in civil aerospace, aeroplanes are flying for longer than ever and
with that comes an increased demand for spare parts and maintenance. This
provides healthy end markets for engine companies such as
Safran whose first quarter 2025 earnings included a 25%
organic revenue growth for their spare parts business, 10% above consensus
estimates. It has also been encouraging that despite macro uncertainties,
management teams have not seen a change in airline behaviour and zero tariff
agreements on aerospace goods shield these companies from US policy disruption
Second, defence companies benefited greatly from the agreement made between
the North Atlantic Treaty Organisation (NATO) allies to spend 5% of their
gross domestic product (GDP) on defence, and related infrastructure and
security by 2035. This equates to US$371 billion extra spending on core
defence over the next 10 years. The long-term commitment to defence spending
underpins our belief that the industry is well set to outperform the market on
a multiple year basis, particularly for equipment companies which are likely
to receive a higher allocation of government budgets. Although shares have
re-rated significantly since the start of the year, we believe the market is
not yet close to pricing in the real long-term impact of the fiscal stimulus
to come. However, it should be noted that the high expectations set for these
companies bring the risk of volatility in the short term, as it has become
common for small disappointments in earnings to be punished by the market.
This could be seen when shares in Kongsberg Gruppen
fell over 15% after the second quarter 2025 earnings included a
slight miss in orders and revenues, driven by weakness in its Maritime
division.
Data centre capital expenditure
Within construction we have seen a bifurcation of trends as tariff
uncertainty has further delayed a recovery in residential end markets, while
companies linked to the AI theme have thrived. The rising demand for AI
capabilities and the race for innovation that comes with it, means
hyperscalers must increase capital expenditure and investment in data centre
infrastructure. Swiss heating, ventilation and air conditioning (HVAC)
specialist Belimo performed strongly,
reporting 22% organic revenue growth in the first quarter of 2025, as the
company continues to benefit from the need for liquid cooling systems for
NVIDIA’s Blackwell chips. Belimo showed confidence in their near-term
outlook by raising full year sales and margin expectations on the back of
strong order visibility.
Portfolio changes
We have long been of the view that to manage equity portfolios
successfully through changing market regimes, we must be both pragmatic and
intellectually honest. In that regard we have taken time to reflect on the
Company’s disappointing performance to question what we could have done
differently. Based on this analysis, we have taken away three main points:
1 – We must pay close attention to companies that appear to be overearning.
Contrary to expectations, the COVID-19 pandemic propelled
earnings of certain businesses to previously unseen levels. Dutch chemical
distribution business IMCD – a well-run capital light business led by an
exceptional management team – saw its gross profit expand from €599
million pre-COVID-19 at the end of 2019 to €1,147 million by the end of
2022; that is an increase of over 90% in just three years. Investors vividly
remember supply shortages across numerous end markets, a key feature during
the pandemic years. IMCD managed to capitalise on those shortages as it acted
as a middleman between producers and end users of sophisticated chemical
compounds. Knowing what we know now it is maybe not surprising that this
period of unprecedented profit expansion was followed by a period of muted
growth, which is what IMCD has experienced for the past three years,
depressing its share price.
2 – We must remain vigilant when expectations of market growth move quickly
to extended levels. We have observed this over the past 12
months in the obesity markets a rapid reversal. This meant that the previous
assumption of a US$120 billion obesity market by 2035 was too optimistic and
had to be revised down to US$100 billion as the disruption of new entrants –
like the compounders discussed above - coupled with patents on key drugs
eventually expiring, introduced a high degree of pricing pressure. While this
will be of great benefit to society as a whole, it has been a negative for
earnings revisions on key producers like Novo Nordisk. Three exceptionally
strong years in terms of share price performance, coupled with elevated
forecast expectations in a changing market, should have served as a red flag.
3 – We must be prepared to create greater balance in the portfolio after a
period of strong performance. The Company’s portfolio
employs a low turnover strategy to capitalise on the power of compounding
returns through time; however, as position sizes grow organically, large
drawdowns become a larger risk to performance. We have worked tirelessly to
become more disciplined in balancing the benefit of compounding and the risk
of severe drawdowns by introducing new positions that should help alter the
risk profile of the Company, creating more balance to the portfolio overall.
Over the course of the financial year, portfolio turnover was 34%. This is
higher than turnover rates seen in recent years and the portfolio’s expected
level of circa 20%. This reflects the vastly changing market environment which
has been observed within the past year. As discussed above, key transactions
over the period included the sale of Novo Nordisk and ASML.
As detailed previously, our preference within luxury goods companies has
shifted this year towards “hard” luxury goods companies with strong brand
momentum. We added Richemont, a Swiss jewellery, watches and accessories
specialist, to the portfolio in December. Richemont has experienced healthy
brand momentum in its Jewellery Maisons business – Cartier, Van Cleef,
Bucellati – and has been executing strongly with a lower exposure to China
versus peers. Sustained double -digit growth in the core jewellery brands is
driven by a strong presence in the US market and growing penetration in
Europe. The company’s valuation has remained reasonable at 22 times price to
earnings for 2027.
This new position was funded by significantly reducing, and eventually
exiting, French luxury goods conglomerate LVMH. This was trimmed in
anticipation of ‘Liberation Day’ US trade tariff announcement as we
reduced exposure to global cyclicals where there was a risk of US policy
negatively impacting earnings in the near-to-medium term. LVMH was then sold
in May as we were underwhelmed by management’s second quarter update and the
continued lack of brand and earnings momentum.
The Company’s exposure to aerospace and defence companies has increased
significantly over the period, moving from a 1% overweight to an 11% active
position versus the reference index. This included new positions initiated in
Kongsberg Gruppen, Thales and
MTU Aero Engines (MTU) . Kongsberg specialises
in high-technology systems for various industries including marine, aerospace
and defence. We believe the company is well positioned for European rearmament
given 45-50% of its revenues come from domestic Europe, in addition to having
significant contracts with the US. Thales is also set to benefit from European
rearmament and French budget increases. There is a particular need for
investment in ammunition, electronics and air defence which suits the products
and services offered by the company. MTU was added as the company offers
indirect exposure to the European defence industry, as well as an attractive
aftermarket business within the fast-growing narrow -body engine market.
During periods of US policy uncertainty and market volatility, there were few
safe havens as even traditional “defensive” sectors, such as healthcare
and consumer staples, came into the firing line due to the tariff threats
looming. This led us to search for the new generation of defensives, companies
offering strong recurring revenues, mission-critical services and stable cash
flow growth with a more attractive risk-return profile than traditional
defensive sectors where structural growth challenges continue to exist. An
example of a name added under this theme is German software company
SAP . The company is benefiting from trends of
digitalization and growth in their cloud business is expected to accelerate
from 2025 to 2027, with most of these revenue streams being recurring in
nature. SAP offers high-quality, defensive earnings that should continue to
grow even if economic growth prospects are subdued.
Outlook
Looking ahead into 2026, we remain optimistic about the outlook for
European equities, leading to our Company being constructively positioned as
we approach the end of this calendar year. Stock markets are discounting
mechanisms which require investors to stay forward looking. Obsessing about
the current macro environment or political headlines of today appears somewhat
futile knowing that the real driver of future market returns will be economic
realities experienced from the second half of 2026 onwards.
In that context, we expect to see inflation lowering towards the 2% target,
central banks providing easing financial conditions, a declining oil price –
equivalent to a tax cut for global consumers – as well as employment levels
that remain healthy both in the US and Europe. Adding to this, increased
government spending in Germany, Europe’s largest economy, and a trade
agreement between Europe and the US point to a much-improved investment
environment for corporates over the coming quarters. Drawing a line under
tariff related volatility and removing trade uncertainty should equally result
in market leadership finally broadening out, which would be welcome news after
a long period of exceptionally narrow markets.
‘Stocks follow earnings’ is an old stock
market axiom that has passed the test of time; we expect greater market
participation of sectors and stocks left behind in this recent market rally as
earnings revisions turn positive, starting a new upgrade cycle among some of
the laggards of this past year. Ultimately, Europe remains home to many
world-class companies owning core technologies that make them the enablers of
some of the large transformational changes going on around us. We aim to align
shareholder capital to those businesses that are exposed to large and enduring
spending streams. Our investment philosophy leads us to favour firms with
predictable business models, higher than average returns on capital, strong
cash flow conversions and opportunities to reinvest that cash flow into future
growth projects at high incremental returns. While this group of international
champions will always remain at the core of this Trust, we acknowledge a
brighter outlook for domestic earners in industries that have undergone
systemic change through new holdings we expect to own for years to come.
Finally, this year, 2025, has shown yet again that while operating in global
markets it pays to be an optimist, as well as the importance of staying
invested. For a brief period post Liberation Day, many commentators – or
doomsayers - called for a degree of economic pain that failed to materialise.
Markets periodically tempt us to take profits and change the composition of
the portfolio. Ultimately, it is those moments of heightened volatility that
create compelling opportunities for the active investor prepared to take the
long-term view.
STEFAN GRIES AND ALEXANDRA DANGOOR
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
4 November 2025
Ten largest investments
Together, the Company’s ten largest investments represented 49.1% of the
Company’s portfolio as at 31 August 2025 (2024: 51.8%)
1 ▲ Safran
(2024: 7th)
Industrials company
Market value: £43,751,000
Share of investments: 7.9%
Safran is a French multinational supplier of systems and equipment for
aerospace, defence and security. Operating in an oligopolistic market, this
industry has emerged from a heavy investment period in new planes and engines
and we see Safran as well placed to benefit from continued strength in its
best-in-class after-market business, as well as strong execution in its LEAP
engine program which should drive growth for the next decade. Additionally,
the company stands to gain from rising defence spending across Europe.
2 ▲ Ferrari
(2024: 5th)
Consumer Discretionary company
Market value: £27,242,000
Share of investments: 4.9%
Ferrari is an Italian luxury sports car manufacturer emphasising exclusivity,
performance and quality globally, with a strong focus on innovation and
delivering unique driving experiences to its clientele. Ferrari enjoys
excellent earnings visibility, with management reiterating their strong order
book, providing coverage into 2027 and a backlog in Asia reaching record
highs. Ferrari’s strategy of focusing on limited production volumes
continues to create elevated levels of desirability, an unparalleled degree of
pricing power and has demonstrably enhanced its earnings resilience over time.
3 ▲ Hermès
(2024: 6th)
Consumer Discretionary company
Market value: £26,462,000
Share of investments: 4.8%
Hermès is a French luxury design house established in 1837, specialising in
leather goods, lifestyle accessories, home furnishings, perfumery, jewellery,
watches and ready-to-wear textiles. Through deliberate brand management and
exceptional craftsmanship, this ultimate
high-end brand remains supply constrained and enjoys strong earnings
visibility, with many iconic products sold on allocation via waiting lists.
Hermès is largely family-owned and has been managed conservatively for
generations, with strategic decisions taken over the longest time horizons.
This business has historically proven resilient during economic downturns, as
its client base is typically less sensitive to weaker macro environments.
4 ▲ Belimo (2024: 17th)
Industrials company
Market value: £26,340,000
Share of investments: 4.8%
Belimo is a Swiss specialist in heating, ventilation and air conditioning
(HVAC) solutions. Their leading technology focuses on reducing the energy
consumption and carbon emission of commercial buildings, such as data centres
where there is strong growth from the demand for cooling systems for
NVIDIA’s Blackwell chips. Belimo’s technological niches mean the company
is well positioned to continue outpacing the wider HVAC industry and benefit
from hyperscalers continuing to increase spending on AI projects.
5 ▲ Schneider Electric
(2024: 8th)
Industrials company
Market value: £25,472,000
Share of investments: 4.6%
Schneider Electric is a French multinational company specialising in digital
automation and energy management across various industries globally. The
company is a key beneficiary of structural investment in energy transition
solutions, with demand driven by three major trends: energy efficiency,
automation and digitisation. We expect sustained growth in its core markets,
supported by government programs promoting green initiatives and strong demand
from data centres, particularly as AI infrastructure expands. Schneider
Electric is a well-managed business offering compounding growth and attractive
returns on capital.
6 ▲ SAP (2024:
n/a)
Technology company
Market value: £25,200,000
Share of investments: 4.6%
SAP is a German multinational software corporation that develops enterprise
application software, specialising in cloud-based solutions and analytics to
help businesses manage operations, processes and customer relationships
efficiently. The company is benefiting from trends of digitalisation and
growth of the Cloud business with revenue expected to accelerate from
2025-2027, with most of these revenue streams being recurring in nature.
7 ▲ KBC Groep (2024: 23rd)
Financials company
Market value: £24,286,000
Share of investments: 4.4%
KBC Groep (KBC) is a Belgian universal multi-channel bank-insurer, focusing on
private clients and small and medium-sized enterprises. KBC is a quality bank
which changed its focus following the Global Financial Crisis, building
resilience through conservative capital positions. KBC delivers above cost of
capital returns in its developed markets, while its Central and Eastern Europe
exposure provides additional growth at higher returns. Strong capital
discipline and cost control underpin profitability, while net interest income
remains robust.
8 ▲
Linde (2024: 10th)
Basic Materials company
Market value: £24,246,000
Share of investments: 4.4%
Linde is a global multinational chemical company and, since 2018, domiciled in
Ireland and headquartered in the United Kingdom. Linde is the world’s
largest industrial gas company by market cap, serving customers in the health
care, petroleum refining, food, beverage carbonation, fibre-optics, steel
making, material handling equipment, chemicals and water treatment industries.
The company is well-positioned to benefit from structural growth in energy
transition investment, while its proven business model offers high earnings
resilience and low financial leverage.
9 ▲ Compagnie Financière Richemont
(2024: n/a)
Consumer Discretionary company
Market value: £24,148,000
Share of investments: 4.4%
Compagnie Financière Richemont (Richemont) is a Swiss luxury goods company
best known for its high-end jewellery and watch brands, including Cartier and
Van Cleef. It is well-positioned in the luxury segment with lower exposure to
China than peers and strong momentum in the hard-luxury category. Long-term
growth drivers for branded jewellery remain compelling and Richemont’s
premier brands enable it to fully capture this opportunity.
10 ▲
Lonza Group (2024: 13th)
Health Care company
Market value: £23,455,000
Share of investments: 4.3%
Lonza Group (Lonza) is a Swiss life-sciences company. Lonza has established
itself as one of the leading manufacturers of high-end biological drugs as
well as cell and gene therapy. Its competitive edge lies in the complexity of
its production processes, which few peers can match, reinforced by high
barriers to entry such as stringent US Food and Drug Administration
certification requirements. These factors underpin Lonza’s strong market
position and long-term growth potential.
All percentages reflect the value of the holding as a percentage of total
investments.
Arrows indicate the change in relative ranking of the position in the
portfolio compared to its ranking as at 31 August 2024.
Investments as at 31 August 2025
Country of Market % of
operation value investments
£’000
Industrials
Safran France 43,751 7.9
Belimo Switzerland 26,340 4.8
Schneider Electric France 25,472 4.6
Adyen Netherlands 22,966 4.2
MTU Aero Engines Germany 19,277 3.5
Kone Finland 18,877 3.4
Atlas Copco Sweden 13,668 2.5
Kongsberg Gruppen Norway 13,158 2.4
Thales France 11,503 2.1
Rational Germany 9,950 1.8
Kingspan Ireland 9,168 1.7
--------------- ---------------
214,130 38.9
========= =========
Technology
SAP Germany 25,200 4.6
RELX United Kingdom 21,794 4.0
Nemetschek Germany 20,214 3.7
BE Semiconductor Netherlands 15,491 2.8
ASML Netherlands 12,254 2.2
ASM International Netherlands 11,188 2.0
--------------- ---------------
106,141 19.3
========= =========
Consumer Discretionary
Ferrari Italy 27,242 4.9
Hermès France 26,462 4.8
Compagnie Financière Richemont Switzerland 24,148 4.4
L’Oréal France 2,915 0.5
LVMH France 623 0.1
--------------- ---------------
81,390 14.7
========= =========
Financials
KBC Groep Belgium 24,286 4.4
Allied Irish Banks Ireland 23,418 4.3
Caixabank Spain 12,327 2.2
Partners Group Switzerland 11,078 2.0
Sberbank* Russia 1 –
--------------- ---------------
71,110 12.9
========= =========
Health Care
Lonza Group Switzerland 23,455 4.3
ChemoMetec Denmark 15,123 2.7
Straumann Switzerland 4,094 0.7
--------------- ---------------
42,672 7.7
========= =========
Basic Materials
Linde United States 24,246 4.4
IMCD Netherlands 9,109 1.7
--------------- ---------------
33,355 6.1
========= =========
Real Estate
Hemnet Group Sweden 2,377 0.4
--------------- ---------------
2,377 0.4
========= =========
Energy
Lukoil* Russia – –
--------------- ---------------
Total investments 551,175 100.0
========= =========
* The investments in Sberbank and Lukoil have been fair
valued to a nominal value of £0.01 due to sanctions imposed on Russia. The
underlying value of the positions on the Moscow Stock Exchange as at 31 August
2025 were £16.0 million and £13.0 million respectively.
All investments are in ordinary shares unless otherwise stated. The total
number of investments held at 31 August 2025 was 34 (2024: 34).
Industry classifications in the table above are based on the Industrial
Classification Benchmark standard for categorisation of companies by industry
and sector.
As at 31 August 2025, the Company did not hold any equity interests comprising
more than 3% of any company’s share capital.
Investment exposure as at 31 August 2025
Market capitalisation
% of portfolio % of portfolio
2025 2024
<€1bn 0.0 1.6
€1bn to €10bn 14.2 12.6
€10bn to €20bn 14.6 10.3
€20bn to €50bn 20.4 22.4
>€50bn 50.8 53.1
Investment size
Number of investments Number of investments 2024 % of portfolio % of portfolio
2025 2025 2024
<£1m 3 2 0.1 0.0
£1m to £3m 2 0 0.9 0.0
£3m to £5m 1 1 0.7 0.4
£5m to £10m 3 5 5.2 5.6
>£10m 25 26 93.1 94.0
Distribution of investments
% of portfolio % of portfolio
2025 2024
Industrials 38.9 26.5
Technology 19.3 18.4
Consumer Discretionary 14.7 23.0
Financials 12.9 8.9
Health Care 7.7 15.4
Basic Materials 6.1 6.9
Real Estate 0.4 0.0
Consumer Staples 0.0 0.9
Source: BlackRock.
Strategic Report
The Directors present the Strategic Report of the Company for the year ended
31 August 2025. The aim of the Strategic Report is to provide shareholders
with the information to assess how the Directors have performed their duty to
promote the success of the Company for the collective benefit of shareholders.
The Chairman’s Statement together with the Investment Manager’s Report
form part of this Strategic Report. The Strategic Report was approved by the
Board at its meeting on 4 November 2025.
Principal activity
The Company carries on business as an investment trust and is listed
on the London Stock Exchange. Its principal activity is portfolio investment.
Investment trusts are pooled investment vehicles which allow exposure to a
diversified range of assets through a single investment, thus spreading
investment risk.
Investment objective
The Company’s objective is the achievement of capital growth,
primarily through investment in a focused portfolio constructed from a
combination of the securities of large, mid and small capitalisation European
companies, together with some investment in the developing markets of Europe.
The Company also has the flexibility to invest in any country included in the
FTSE World Europe ex UK Index (the reference index), as well as the freedom to
invest in developing countries not included in the index but considered by the
Manager and the Directors as part of greater Europe.
Strategy, business model and investment policy
Strategy
The Company invests in accordance with the objective given above.
The Board is collectively responsible to shareholders for the long-term
success of the Company and is its governing body. There is a clear division of
responsibility between the Board and BlackRock Fund Managers Limited (the
Manager). Matters reserved for the Board include setting the Company’s
strategy, including its investment objective and policy, setting limits on
gearing, capital structure, governance, and appointing and monitoring of
performance of service providers, including the Manager.
Business model
The Company’s business model follows that of an externally managed
investment trust. Therefore, the Company does not have any employees and
outsources its activities to third-party service providers including the
Manager, who is the principal service provider. In accordance with the
Alternative Investment Fund Managers’ Directive (AIFMD), as implemented,
retained and onshored in the UK, the Company is an Alternative Investment Fund
(AIF). BlackRock Fund Managers Limited is the Company’s Alternative
Investment Fund Manager.
The management of the investment portfolio and the administration of the
Company have been contractually delegated to the Manager who in turn (with the
permission of the Company) has delegated certain investment management and
other ancillary services to BlackRock Investment Management (UK) Limited (BIM
(UK) or the Investment Manager). The Manager, operating under guidelines
determined by the Board, has direct responsibility for the decisions relating
to the day-to-day running of the Company and is accountable to the Board for
the investment, financial and operating performance of the Company.
The Company delegates fund accounting services to the Manager, which in turn
sub-delegates these services to The Bank of New York Mellon (International)
Limited (BNY). Other service providers include the Depositary (also BNY) and
the Registrar, Computershare Investor Services PLC. Details of the contractual
terms with the Manager and the Depositary and more details of arrangements in
place governing custody services are set out in the Directors’ Report.
Investment policy
The Company’s policy is that the portfolio should consist of
approximately 30-70 securities and the majority of the portfolio will be
invested in larger capitalisation companies, being companies with a market
capitalisation of over €5 billion. Up to 25% of the portfolio may be
invested in companies in developing Europe. The Company may also invest up to
5% of the portfolio in unquoted investments. However, overall exposure to
developing European companies and unquoted investments will not in aggregate
exceed 25% of the Company’s portfolio.
As at 31 August 2025, the Company held 34 investments. None (2024: none) of
the portfolio was invested in developing Europe. The Company had no unquoted
investments.
Investment in developing European securities may be either direct or through
other funds, including those managed by BlackRock Fund Managers Limited,
subject to a maximum of 15% of the portfolio. Direct investment in Russia is
limited to 10% of the Company’s assets. Investments may also include
depositary receipts or similar instruments representing underlying securities.
The Company also has the flexibility to invest up to 20% of the portfolio in
debt securities, such as convertible bonds and corporate bonds. No bonds were
held at 31 August 2025. The use of any derivative instruments such as
financial futures, options and warrants and the entering into of stock lending
arrangements will only be for the purposes of efficient portfolio management.
While the Company may hold shares in other investment companies (including
investment trusts), the Board has agreed that the Company will not invest more
than 15%, in aggregate, of its total assets in other listed closed-ended
investment funds.
In order to comply with the current Listing Rules, the Company will also not
invest more than 10% of its gross asset value in other listed closed-ended
investment funds which themselves may invest more than 15% of their gross
assets in other listed closed-ended investment funds. This restriction does
not form part of the Company’s investment policy.
The Company achieves an appropriate spread of risk by investing in a
diversified portfolio of securities.
The Investment Manager believes that appropriate use of gearing can add value
over time. This gearing typically is in the form of an overdraft facility
which can be repaid at any time. The level and benefit of any gearing is
discussed and agreed regularly by the Board. The Investment Manager generally
aims to be fully invested and it is anticipated that gearing will not exceed
15% of net asset value (NAV) at the time of drawdown of the relevant
borrowings. At the balance sheet date, the Company had net cash of 3.1% (2024:
net gearing of 8.0%).
Performance
In the year to 31 August 2025, the Company’s NAV per share
decreased by 6.1% (compared with an increase in the reference index of 10.9%)
and the share price fell by 3.9% (all percentages calculated in Sterling terms
with dividends reinvested). The Investment Manager’s Report includes a
review of the main developments during the year, together with information on
investment activity within the Company’s portfolio.
Results and dividends
The results for the Company are set out in the Income Statement in
the Financial Statements. The total loss for the year, after taxation, was
£40,196,000 (2024: profit of £91,610,000) which is reflected in the decrease
in the net asset value of the Company. The revenue return amounted to
£6,684,000 (2024: £7,379,000) and relates to net revenue earnings from
dividends received during the year after adjusting for expenses allocated to
revenue.
As explained in the Company’s Half Yearly Financial Report, the Directors
declared an interim dividend of 1.75p per share (2024: 1.75p). The Directors
recommend the payment of a final dividend of 5.40p per share, making a total
dividend of 7.15p per share (2024: 7.00p). Subject to approval at the
forthcoming Annual General Meeting, the dividend will be paid on 19 December
2025 to shareholders on the register of members at the close of business on 21
November 2025.
Future prospects
The Board’s main focus is to achieve capital growth. The future
performance of the Company is dependent upon the success of the investment
strategy and, to a large extent, on the performance of financial markets. The
outlook for the Company is discussed in both the Chairman’s Statement and
Investment Manager’s Report.
Social, community and human rights issues
As an investment trust, the Company has no direct social or
community responsibilities or impact on the environment and the Company has
not adopted an ESG investment strategy or exclusionary screens. However, the
Directors believe that it is important and in shareholders’ interests to
consider human rights issues and environmental, social and governance factors
when selecting and retaining investments. Details of the Company’s approach
to ESG integration and socially responsible investment is set out below.
Modern Slavery Act
As an investment vehicle the Company does not provide goods or
services in the normal course of business and does not have customers.
Accordingly, the Directors consider that the Company is not required to make
any slavery or human trafficking statement under the Modern Slavery Act 2015.
In any event, the Board considers the Company’s supply chains, dealing
predominantly with professional advisers and service providers in the
financial services industry, to be low risk in relation to this matter.
Directors, gender representation and employees
The Directors of the Company on 31 August 2025 are set out in the
Directors’ Biographies contained within the Annual Financial Report. The
Board currently consists of four male Directors and two female Directors. The
Company’s policy on diversity is set out within the Annual Financial Report.
The Company does not have any executive employees.
Key performance indicators
At each Board meeting, the Directors consider a number of
performance measures to assess the Company’s success in achieving its
objectives. The key performance indicators (KPIs) used to measure the progress
and performance of the Company over time, and which are comparable to other
investment trusts, are set out below. As indicated in footnote 2 to the table,
some of these KPIs fall within the definition of ‘Alternative Performance
Measures’ (APMs) under guidance issued by the European Securities and
Markets Authority (ESMA) and additional information explaining how these are
calculated is set out in the Glossary within the Annual Financial Report
Additionally, the Board regularly reviews the performance of the portfolio, as
well as the net asset value and share price of the Company and compares this
against various companies and indices. The Company does not have a benchmark.
However, the Board reviews performance and ongoing charges against a peer
group of European investment trusts and open-ended funds, as well as the
reference index.
Year ended Year ended
31 August 31 August
2025 2024
Net asset value per share 598.05p 644.60p
Share price 570.00p 601.00p
Net asset value total return 1, 2 -6.1% 16.4%
Share price total return 1, 2 -3.9% 15.5%
Discount to net asset value 2 4.7% 6.8%
Revenue return per share 6.89p 7.35p
Ongoing charges 2, 3 0.95% 0.95%
========= =========
1 This measures the Company’s net asset value and share
price total return, which assumes dividends paid by the Company have been
reinvested.
2 Alternative Performance Measures, see Glossary
contained within the Annual Financial Report.
3 Ongoing charges represent the management fee and all
other operating expenses, excluding finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items, as a % of average daily net
assets.
Principal risks
The Company is exposed to a variety of risks and uncertainties. As
required by the UK Corporate Governance Code (the UK Code), the Board has in
place a robust ongoing process to identify, assess and monitor the principal
risks and emerging risks facing the Company, including those that would
threaten its business model, future performance, solvency or liquidity. A core
element of this process is the Company’s risk register which identifies the
risks facing the Company and assesses the likelihood and potential impact of
each risk and the quality of controls operating to mitigate it. A residual
risk rating is then calculated for each risk based on the outcome of the
assessment.
The risk register, its method of preparation and the operation of key controls
in BlackRock’s and third-party service providers’ systems of internal
control, are reviewed on a regular basis by the Audit and Management
Engagement Committee. In order to gain a more comprehensive understanding of
BlackRock’s and other third-party service providers’ risk management
processes and how these apply to the Company’s business, BlackRock’s
internal audit department provides an annual presentation to the Audit
Committee chairs of the BlackRock investment trusts setting out the results of
testing performed in relation to BlackRock’s internal control processes. The
Audit and Management Engagement Committee also periodically receives and
reviews internal control reports from BlackRock and the Company’s service
providers.
The Board has undertaken a robust assessment of both the principal and
emerging risks facing the Company, including those that would threaten its
business model, future performance, solvency or liquidity. For instance, the
risk that unforeseen or unprecedented events including (but not limited to)
heightened geo-political tensions such as the war in Ukraine and conflict in
the Middle East, inflation and the current cost of living crisis has had a
significant impact on global markets. The Board has taken into consideration
the risks posed to the Company by these events and incorporated them into the
Company’s risk register.
Emerging risks are considered by the Board as they come into view and are
incorporated into the existing review of the Company’s risk register.
Additionally, the Manager considers emerging risks in numerous forums and the
Risk and Quantitative Analysis team produces an annual risk survey. Any
material risks of relevance to the Company identified through the annual risk
survey will be communicated to the Board.
Emerging risks that have been considered by the Board over the year include
the impact of climate change, escalating geo-political conflict and
technological advances.
The key emerging risks identified are as follows:
Climate change: Investors can no longer ignore the impact that the world’s
changing climate will have on their portfolios, with the impact of climate
change on returns, including climate-related natural disasters, now
potentially significant and with the potential to escalate more swiftly than
one is able to predict. The Board receives ESG reports from the Manager on the
portfolio and the way ESG considerations are integrated into the investment
decision-making, so as to mitigate risk at the level of stock selection and
portfolio construction.
Artificial Intelligence (AI): Advances in computing power means that AI has
become a powerful tool that will impact a huge range of areas and with a wide
range of applications that have the potential to dislocate established
business models and disrupt labour markets, creating uncertainty in corporate
valuations. The significant energy required to power this technological
revolution will create further pressure on environmental resources and carbon
emissions.
Geo-political risk: Escalating geo-political tensions (including, but not
limited to tensions in the Middle East and the ongoing war in Ukraine, or
deteriorating relations between China and the US/other countries) have a
significant negative impact on global markets, with an increasing use of
tariffs and domestic regulations making global trade more complex and driving
economic fragmentation.
The Board will continue to assess these risks on an ongoing basis. In relation
to the UK Code, the Board is confident that the procedures that the Company
has put in place are sufficient to ensure that the necessary monitoring of
risks and controls has been carried out throughout the reporting period.
The principal risks and uncertainties faced by the Company during the
financial year, together with the potential effects, controls and mitigating
factors are set out below.
Investment performance
Principal risk
Returns achieved are reliant primarily upon the performance of the
portfolio.
The Board is responsible for:
- deciding the investment strategy to fulfil the
Company’s objective; and
- monitoring the performance of the Investment Manager
and the implementation of the investment strategy.
An inappropriate investment strategy may lead to:
- underperformance compared to the reference index and
the Company’s peer group;
- a reduction or permanent loss of capital; and
- dissatisfied shareholders and reputational damage.
The Board is also cognisant of the long-term risk to performance from
inadequate attention to ESG issues and in particular the impact of climate
change.
Mitigation/Control
To manage this risk the Board:
- regularly reviews the Company’s investment mandate
and long-term strategy;
- has set investment restrictions and guidelines which
the Investment Manager monitors and regularly reports on;
- receives from the Investment Manager a regular
explanation of stock selection decisions, portfolio exposure, gearing and any
changes in gearing and the rationale for the composition of the investment
portfolio;
- monitors the maintenance of an adequate spread of
investments in order to minimise the risks associated with particular
countries or factors specific to particular sectors, based on the
diversification requirements inherent in the investment policy; and
- receives and reviews regular reports showing an
analysis of the Company’s performance against the reference index and other
similar indices.
ESG analysis is integrated into the Manager’s investment process as set out
within the Annual Financial Report. This is monitored by the Board.
Legal and regulatory compliance
Principal risk
The Company has been approved by HM Revenue & Customs as an
investment trust, subject to continuing to meet the relevant eligibility
conditions and operates as an investment trust in accordance with Chapter 4 of
Part 24 of the Corporation Tax Act 2010. As such, the Company is exempt from
corporation tax on capital gains on the profits realised from the sale of its
investments.
Any breach of the relevant eligibility conditions could lead to the Company
losing investment trust status and being subject to corporation tax on capital
gains realised within the Company’s portfolio. In such event, the investment
returns of the Company may be adversely affected.
A serious regulatory breach could result in the Company and/or the Directors
being fined or the subject of criminal proceedings, or the suspension of the
Company’s shares which could in turn lead to a breach of the Corporation Tax
Act 2010.
Amongst other relevant laws, the Company is required to comply with the
provisions of the Companies Act 2006, the Alternative Investment Fund
Managers’ Directive, the UK Listing Rules and Disclosure Guidance and
Transparency Rules, the Sanctions and Anti-Money Laundering Act 2018 and the
Market Abuse Regulation.
Mitigation/Control
The Investment Manager monitors investment movements, the level and
type of forecast income and expenditure and the amount of proposed dividends
to ensure that the provisions of Chapter 4 of Part 24 of the Corporation Tax
Act 2010 are not breached. The results are reported to the Board at each
meeting.
Compliance with the accounting rules affecting investment trusts are also
carefully and regularly monitored.
The Company Secretary and the Company’s professional advisers provide
regular reports to the Board in respect of compliance with all applicable
rules and regulations. The Board and the Manager also monitor changes in
government policy and legislation which may have an impact on the Company.
The Company’s Investment Manager, BlackRock, at all times complies with the
sanctions administered by the UK Office of Financial Sanctions Implementation,
the United States Treasury’s Office of Foreign Assets Control, the United
Nations, European Union member states and any other applicable regimes.
Market
Principal risk
Market risk arises from volatility in the prices of the Company’s
investments. It represents the potential loss the Company might suffer through
realising investments in the face of negative market movements.
Changes in general economic and market conditions, such as currency exchange
rates, interest rates, rates of inflation, industry conditions, tax laws and
political events can also substantially and adversely affect the securities
and, as a consequence, the Company’s prospects and share price.
Market risk includes the potential impact of events which are outside the
Company’s control, including (but not limited to) heightened geo-political
tensions and military conflict, a global pandemic and high inflation.
Companies operating in the sectors in which the Company invests may be
impacted by new legislation governing climate change and environmental issues,
which may have a negative impact on their valuation and share price.
Mitigation/Control
The Board considers the diversification of the portfolio, asset
allocation, stock selection and levels of gearing on a regular basis and has
set investment restrictions and guidelines which are monitored and reported on
by the Investment Manager.
The Board monitors the implementation and results of the investment process
with the Investment Manager.
The Board also recognises the benefits of a closed-end fund structure in
extremely volatile markets such as those experienced during the Russia/Ukraine
and Middle East conflicts, as well as recent trade and tariff related
disruptions. Unlike open-ended counterparts, closed-end funds are not obliged
to sell down portfolio holdings at low valuations to meet liquidity
requirements for redemptions. During times of elevated volatility and market
stress, the ability of a closed-end fund structure to remain invested for the
long term enables the portfolio managers to adhere to disciplined fundamental
analysis from a bottom-up perspective and be ready to respond to dislocations
in the market as opportunities present themselves.
The portfolio managers spend a considerable amount of time understanding the
environmental, social and governance (ESG) risks and opportunities facing
companies and industries in the portfolio. The Company does not exclude
investment in stocks based on ESG criteria, but the portfolio managers
consider ESG information when conducting research and due diligence on new
investments and again when monitoring investments in the portfolio.
Operational
Principal risk
In common with most other investment trust companies, the Company
has no employees. The Company therefore relies on the services provided by
third parties and is dependent on the control systems of the Manager, the
Depositary and Fund Accountant which maintain the Company’s assets, dealing
procedures and accounting records.
The security of the Company’s assets, dealing procedures, accounting records
and adherence to regulatory and legal requirements depend on the effective
operation of the systems of these other third-party service providers. There
is a risk that a major disaster, such as floods, fire, a global pandemic, or
terrorist activity, renders the Company’s service providers unable to
conduct business at normal operating capacity and effectiveness.
Failure by any service provider to carry out its obligations to the Company
could have a material adverse effect on the Company’s performance.
Disruption to the accounting, payment systems or custody records (including
cyber security risk) could prevent the accurate reporting and monitoring of
the Company’s financial position.
Mitigation/Control
Due diligence is undertaken before contracts are entered into with
third-party service providers. Thereafter, the performance of the provider is
subject to regular review and reported to the Board.
The Board reviews on a regular basis an assessment of the fraud risks that the
Company could potentially be exposed to and also a summary of the controls put
in place by the Manager, Depositary, Custodian, Fund Accountant and Registrar
specifically to mitigate these risks.
Most third-party service providers produce Service Organisation Control (SOC
1) reports to provide assurance regarding the effective operation of internal
controls as reported on by their reporting accountants. These reports are
provided to the Audit and Management Engagement Committee for review. The
Committee would seek further representations from service providers if not
satisfied with the effectiveness of their control environment.
The Company’s financial instruments held in custody are subject to a strict
liability regime and, in the event of a loss of such financial instruments
held in custody, the Depositary must return financial instruments of an
identical type or the corresponding amount, unless able to demonstrate the
loss was a result of an event beyond its reasonable control.
The Board reviews the overall performance of the Manager, Investment Manager
and all other third-party service providers on a regular basis and compliance
with the Investment Management Agreement annually.
The Board also considers the business continuity arrangements of the
Company’s key service providers on an ongoing basis and reviews these as
part of its review of the Company’s risk register. The Board considers the
portfolio managers’ succession plans so far as they affect the services
provided to the Company.
Financial
Principal risk
The Company’s investment activities expose it to a variety of
financial risks which include interest rate risk, counterparty credit risk and
liquidity risk.
Mitigation/Control
Details of these risks are disclosed in note 16 to the Financial
Statements, together with a summary of the policies for managing these risks.
Marketing
Principal risk
Marketing efforts are inadequate or do not comply with relevant
regulatory requirements. There is a failure to communicate adequately with
shareholders or reach out to potential new shareholders resulting in reduced
demand for the Company’s shares and a widening of the discount.
Mitigation/Control
The Board reviews marketing strategy and initiatives and the Manager
is required to provide regular updates on progress. BlackRock has a dedicated
investment trust sales team visiting both existing and potential clients on a
regular basis. Data on client meetings and issues raised are provided to the
Board on a regular basis.
All investment trust marketing documents are subject to appropriate review and
authorisation.
Viability statement
In accordance with provision 31 of the 2018 UK Corporate Governance
Code, the Directors have assessed the prospects of the Company over a longer
period than the twelve months referred to by the ‘Going Concern’
guidelines. The Company is an investment trust with the objective of achieving
capital growth.
The Directors expect the Company to continue for the foreseeable future and
have therefore conducted this review for the period up to the Annual General
Meeting in 2030. The Directors believe that five years is an appropriate
investment horizon to assess the viability of the Company. This is based on
the Company’s long-term mandate, the low turnover in the portfolio and the
investment holding period investors generally consider while investing in the
European sector.
In making an assessment on the viability of the Company, the Board has
considered the following:
- the impact of a significant fall in European equity
markets on the value of the Company’s investment portfolio;
- the ongoing relevance of the Company’s investment
objective, business model and investment policy in the prevailing market;
- the principal and emerging risks and uncertainties, as
set out above, and their potential impact;
- the level of ongoing demand for the Company’s shares;
- the Company’s share price discount/premium to NAV;
- the liquidity of the Company’s portfolio; and
- the level of income generated by the Company and future
income and expenditure forecasts.
The Directors have concluded that there is a reasonable expectation that the
Company will continue in operation and meet its liabilities as they fall due
over the period of their assessment based on the following considerations:
- the Investment Manager’s compliance with the
investment objective and policy, its investment strategy and asset allocation;
- the portfolio is liquid and mainly comprises of readily
realisable assets, which continue to offer a broad range of investment
opportunities for shareholders as part of a balanced investment portfolio;
- the operational resilience of the Company and its key
service providers and their ability to continue to provide a good level of
service for the foreseeable future;
- the effectiveness of business continuity plans in place
for the Company and its key service providers;
- the ongoing processes for monitoring operating costs
and income which are considered to be reasonable in comparison to the
Company’s total assets;
- the Board’s discount management policy; and
- the Company is a closed-end investment company and
therefore does not suffer from the liquidity issues arising from unexpected
redemptions.
In addition, the Board’s assessment of the Company’s ability to operate in
the foreseeable future is included in the Going Concern Statement which can be
found within the Annual Financial Report in the Directors’ Report.
Section 172 Statement: promoting the success of the Company
The Companies (Miscellaneous Reporting) Regulations 2018 require
directors to explain in greater detail how they have discharged their duties
under Section 172(1) of the Companies Act 2006 in promoting the success of
their companies for the benefit of members as a whole. This includes the
likely consequences of their decisions in the longer term and how they have
taken wider stakeholders’ needs into account.
The disclosure that follows covers how the Board has engaged with and
understands the views of stakeholders and how stakeholders’ needs have been
taken into account, the outcome of this engagement and the impact that it has
had on the Board’s decisions. As the Company is an externally managed
investment company and does not have any employees or customers, the Board
considers the main stakeholders in the Company to be the shareholders, the
Manager and Investment Manager. In addition to this, the Board considers
investee companies and key service providers of the Company to be
stakeholders; the latter comprise the Company’s Custodian, Depositary,
Registrar and Broker.
Stakeholders
Shareholders
Continued shareholder support and engagement are critical to the
continued existence of the Company and the successful delivery of its
long-term strategy. The Board is focused on fostering good working
relationships with shareholders and on understanding the views of shareholders
in order to incorporate them into the Board’s strategy and objectives in
delivering long-term capital growth.
Manager and Investment Manager
The Board’s main working relationship is with the Manager, who is
responsible for the Company’s portfolio management (including asset
allocation, stock and sector selection) and risk management, as well as
ancillary functions such as administration, secretarial, accounting and
marketing services. The Manager has sub-delegated portfolio management to the
Investment Manager. Successful management of shareholders’ assets by the
Investment Manager is critical for the Company to successfully deliver its
investment strategy and meet its objective. The Company is also reliant on the
Manager as AIFM to provide support in meeting relevant regulatory obligations
under the AIFMD and other relevant legislation.
Other key service providers
In order for the Company to function as an investment trust on the
London Stock Exchange’s (LSE) main market for listed securities and
generally function as an investment trust with a listing on the official list
of the FCA, the Board relies on a diverse range of advisors for support in
meeting relevant obligations and safeguarding the Company’s assets. For this
reason, the Board considers the Company’s Custodian, Depositary, Registrar
and Broker to be stakeholders. The Board maintains regular contact with its
key external service providers and receives regular reporting from them
through the Board and committee meetings, as well as outside of the regular
meeting cycle.
Investee companies
Portfolio holdings are ultimately shareholders’ assets and the
Board recognises the importance of good stewardship and communication with
investee companies in meeting the Company’s investment objective and
strategy. The Board monitors the Manager’s stewardship arrangements and
receives regular feedback from the Manager in respect of meetings with the
management of portfolio companies.
A summary of the key areas of engagement undertaken by the Board with its key
stakeholders in the year under review and how Directors have acted upon this
to promote the long-term success of the Company are set out below.
Area of Engagement
Investment mandate and objective
Issue
The Board is committed to promoting the role and success of the
Company in delivering on its investment mandate to shareholders over the long
term. The Board also has responsibility to shareholders to ensure that the
Company’s portfolio of assets is invested in line with the stated investment
objective and in a way that ensures an appropriate balance between spread of
risk and portfolio returns.
Engagement
The Board worked closely with the Investment Manager throughout the
year in further developing investment strategy and underlying policies, not
simply for the purpose of achieving the Company’s investment objective but
in the interests of shareholders and future investors. In addition to the
scheduled Board meetings each year, the Board holds a Strategy session which
is dedicated to an in-depth review of the Company’s strategy in conjunction
with key advisers, including the Company’s Broker.
As a result of discussions undertaken through the course of the year, the
Board has agreed with the Manager a proposal to amend the portfolio management
arrangements for the Company, with Brian Hall replacing Alexandra Dangoor as
co-portfolio manager, alongside Stefan Gries.
The Company does not exclude investment in stocks based on Environmental,
Social and Governance (ESG) criteria, but the approach of the portfolio
managers to the consideration of ESG factors in respect of the Company’s
portfolio, as well as engagement with investee companies, is to encourage the
adoption of sustainable business practices which support long-term value
creation.
Impact
The portfolio activities undertaken by the Investment Manager can be
found in their report above.
The Investment Manager aims to construct a portfolio that is high conviction
and concentrated in nature but diversified by end market exposures.
Brian Hall will replace Alexandra Dangoor as co-portfolio manager from the
date of this report. Brian is a multi-award winning portfolio manager with 26
years of investment experience, and has worked with Stefan for nearly 19 years
having joined BlackRock in 2007. The Board believes that the addition of Brian
as an experienced investor with a quality value focus will bring the
flexibility needed to ensure future success of the portfolio. The new
arrangements will enable a more balanced approach through giving greater
consideration to investing selectively in quality value ideas. This should
help to dampen fund volatility, ultimately resulting in enhanced return
outcomes over time.
Details regarding the Company’s NAV and share price performance can be found
in the Chairman’s Statement and in this Strategic Report above.
Shareholders
Issue
Continued shareholder support and engagement are critical to the
continued existence of the Company and the successful delivery of its
long-term strategy.
Engagement
The Board is committed to maintaining open channels of communication
and to engage with shareholders. The Company welcomes and encourages
attendance and participation from shareholders at its Annual General Meetings.
Shareholders will have the opportunity to meet the Directors and Investment
Manager and to address questions to them directly. The Investment Manager will
also provide a presentation on the Company’s performance and the outlook.
The Annual Report and Half Yearly Financial Report are available on the
BlackRock website and are also circulated to shareholders either in printed
copy or via electronic communications. In addition, regular updates on
performance, monthly factsheets, the daily NAV and other information are also
published on the Manager’s website at
www.blackrock.com/uk/brge .
The Board also works closely with the Manager to develop the Company’s
marketing strategy, with the aim of ensuring effective communication with
shareholders. Unlike trading companies, one-to-one shareholder meetings
normally take the form of a meeting with the portfolio managers as opposed to
members of the Board. The Company’s willingness to enter into discussions
with institutional shareholders is also demonstrated by the programmes of
institutional presentations by the portfolio managers.
If shareholders wish to raise issues or concerns with the Board, they are
welcome to do so at any time. The Chairman is available to meet directly with
shareholders periodically to understand their views on governance and the
Company’s performance where they wish to do so. He may
be contacted via the Company Secretary whose details are given within the
Annual Financial Report.
Impact
The Board values any feedback and questions from shareholders ahead
of and during Annual General Meetings in order to gain an understanding of
their views and will take action when and as appropriate. Feedback and
questions will also help the Company evolve its reporting, aiming to make
reports more transparent and understandable.
Feedback from all substantive meetings between the Investment Manager and
shareholders will be shared with the Board. The Directors will also receive
updates from the Company’s Broker on any feedback from shareholders, as well
as share trading activity, share price performance and an update from the
Investment Manager.
The portfolio management team attended a number of professional investor
meetings and held discussions with a number of wealth management desks and
offices in respect of the Company during the year under review. The portfolio
managers also held group webcasts in the year to provide investors with
portfolio updates.
Portfolio holdings are ultimately shareholders’ assets and the Board
recognises the importance of good stewardship and communication with investee
companies in meeting the Company’s investment objective and strategy. The
Board monitors the Manager’s stewardship activities and receives regular
feedback from the Investment Manager in respect of meetings with the
management of portfolio companies.
Responsible investing
Issue
Good governance and consideration of sustainable investment are key
factors in making investment decisions. Climate change is becoming a defining
factor in companies’ long-term prospects across the investment spectrum,
with significant and lasting implications for economic growth and prosperity.
Engagement
The Company does not exclude investment in stocks based on ESG
criteria but the Board believes that responsible investment and sustainability
are integral to the longer-term delivery of the Company’s success. The Board
works closely with the Investment Manager to regularly review the Company’s
performance, investment strategy and underlying policies to ensure that the
Company’s investment objective continues to be met in an effective and
responsible way in the interests of shareholders and future investors.
The Investment Manager’s approach to the consideration of ESG factors in
respect of the Company’s portfolio, as well as the Investment Manager’s
engagement with investee companies are kept under review by the Board. The
Board also expects to be informed by the Manager of any sensitive voting
issues involving the Company’s investments.
The Investment Manager reports to the Board in respect of its ESG policies and
how these are integrated into the investment process; a summary of
BlackRock’s approach to ESG is set out within the Annual Financial Report.
The Investment Manager’s engagement and voting policy is detailed below and
on the BlackRock website.
Impact
The Investment Manager believes there is likely to be a positive
correlation between strong ESG practices and investment performance over time.
Details of the Company’s performance in the year are given in the
Chairman’s Statement and the Performance Record above. The Company does not
meet the criteria for Article 8 or 9 products under the EU Sustainable Finance
Disclosure Regulation and the investments underlying this financial product do
not take into account the EU criteria for environmentally sustainable economic
activities.
Management of share rating
Issue
The Board recognises that it is in the long-term interests of
shareholders that shares do not trade at a significant discount or premium to
their prevailing NAV. Therefore, where deemed to be in shareholders’
long-term interests, the Board may exercise its powers to issue shares or buy
back shares with the objective of ensuring that an excessive premium or
discount does not arise.
Engagement
The Board monitors the Company’s share rating on an ongoing basis
and receives regular updates from the Manager and the Company’s Broker
regarding the level of discount or premium and the drivers behind this. The
portfolio managers provide regular performance updates and detailed
performance attribution.
The Board believes that the best way of maintaining the share rating at an
optimal level over the long term is to create demand for the shares in the
secondary market. To this end, the Investment Manager is devoting considerable
effort to broadening the awareness of the Company, particularly to wealth
managers and to the wider retail shareholder market.
In addition, the Board has worked closely with the Manager to develop the
Company’s marketing strategy, with the aim of ensuring effective
communication with existing shareholders and to attract new shareholders to
the Company in order to improve liquidity in the Company’s shares and to
sustain the share rating of the Company.
Impact
The Board will continue to monitor the Company’s premium/discount
to NAV and will look to issue, buy back shares and/or operate six monthly
tender offers if it is deemed to be in the interests of shareholders as a
whole.
The Board decided not to implement a semi-annual tender offer in November 2025
as, over the six months to 31 August 2025, the average discount to NAV (cum
income) was 5.3%. It also decided not to implement the May 2025 semi-annual
tender offer, as over the six months to 28 February 2025, the average discount
to NAV (cum income) was 7.1%. As the Company’s one-year average discount to
NAV on a cum income basis (diluted for treasury shares) was second narrowest
within its peer group, the Board concluded that it was not in the interests of
shareholders to implement the latest semi-annual tender offers.
During the financial year the Company did not reissue any ordinary shares from
treasury. The Company bought back 5,348,054 ordinary shares both during the
financial year and since the year end (up to close of business on 31 October
2025). As at 31 October 2025 the Company’s shares were trading at a discount
of 5.2% to the cum income NAV.
Service levels of third-party providers
Issue
The Board acknowledges the importance of ensuring that the
Company’s principal suppliers are providing a suitable level of service,
including the Manager in respect of investment performance and delivering on
the Company’s investment mandate; the Custodian and Depositary in respect of
their duties towards safeguarding the Company’s assets; the Registrar in its
maintenance of the Company’s share register and dealing with investor
queries; and the Company’s Broker in respect of the provision of advice and
acting as a market maker for the Company’s shares.
Engagement
The Manager reports to the Board on the Company’s performance on a
regular basis. The Board carries out a robust annual evaluation of the
Manager’s performance, their commitment and available resources.
The Board performs an annual review of the service levels of all third-party
service providers and concludes on their suitability to continue in their
role. The Board receives regular updates from the AIFM, Depositary, Registrar
and Broker on an ongoing basis.
The Board works closely with the Manager to gain comfort that relevant
business continuity plans are in place and operating effectively for all of
the Company’s key service providers.
The Board monitors the fees paid to third party providers and works closely
with the Manager to ensure that fees are competitive and in line with market
levels.
Impact
All performance evaluations were performed on a timely basis and the
Board concluded that all key third-party service providers, including the
Manager, were operating effectively and providing a good level of service.
The Board has received updates in respect of business continuity planning from
the Company’s Manager, Custodian, Depositary, Fund Accountant, Registrar,
Printer and Broker and is confident that arrangements in place are
appropriate.
During the year the Board entered into negotiations with the Manager over the
level of management fee paid and it agreed that a reduced fee would apply with
effect from 1 September 2025, whereby a rate of 0.65% would apply on net
assets up to and including £400 million, 0.60% on net assets in excess of
£400 million up to and including £1 billion and 0.525% on net assets in
excess of £1 billion. This significant decrease in the management fee
increases shareholders’ investment returns and is estimated to reduce the
ongoing charges ratio to approximately 0.775%.
Board composition
Issue
The Board is committed to ensuring that its own composition brings
an appropriate balance of knowledge, experience and skills, and that it is
compliant with best corporate governance practice under the UK Code, including
guidance on tenure and the composition of the Board’s committees.
Engagement
During 2025 the Board engaged the services of an external search
consultant, Sapphire Partners, to identify potential candidates to replace Mr
Sanderson who will retire as Chairman following the Annual General Meeting on
11 December 2025. The Nomination Committee agreed the selection criteria and
the method of selection, recruitment and appointment.
All Directors are subject to a formal evaluation process on an annual basis
(more details and the conclusions of the 2025 evaluation process are given
within the Annual Financial Report. All Directors stand for re-election by
shareholders annually.
Shareholders may attend the Annual General Meeting and raise any queries in
respect of Board composition or individual Directors in person or may contact
the Company Secretary or the Chairman using the details provided within the
Annual Financial Report with any issues.
Impact
As a result of the recruitment process, Mr Andrew Impey was
appointed as a Director of the Company on 28 April 2025.
As at the date of this report, the Board was comprised of four men and two
women. Two Board Directors, Mr Sanderson and Mr Baxter, have a tenure in
excess of nine years. As mentioned in the Chairman’s Statement, Mr Sanderson
will be retiring following the forthcoming Annual General Meeting and Mr Impey
will become Chair. Although the Board is not compliant with the
recommendations of the Parker Review and the FTSE Women Leaders Review at the
date of this report, the Board will have a 60:40 male to female gender ratio
again when Mr Sanderson retires.
Details of each Directors’ contribution to the success and promotion of the
Company are set out in the Directors’ Report within the Annual Financial
Report and details of Directors’ biographies can be found within the Annual
Financial Report.
The Directors are not aware of any issues that have been raised directly by
shareholders in respect of Board composition in the year under review. Details
of the proxy voting results in favour and against individual Directors’
re-election at the 2024 Annual General Meeting are given on the Manager’s
website at www.blackrock.com/uk/brge
.
Environmental, Social and Governance issues and approach
The Company’s approach to ESG
Environmental, social and governance (ESG) issues can present both
opportunities and risks to long-term investment performance. Whilst the
Company does not exclude investment in stocks purely on ESG criteria, material
ESG analytics are integrated into the investment process when weighing up the
risk and reward benefits of investment decisions and the Board believes that
communication and engagement with portfolio companies is important and can
lead to better outcomes for shareholders and the environment than merely
excluding investment in certain areas.
More information on BlackRock’s global approach to ESG integration, as well
as activity specific to the BlackRock Greater Europe Investment Trust plc
portfolio, is set out below. BlackRock has defined ESG integration as the
practice of incorporating financially material E, S and/or G data and
information and consideration of sustainability risks into investment
decisions with the objective of enhancing risk-adjusted returns. ESG
integration does not change the Company’s investment objective. More
information on sustainability risks may be found in the AIFMD Fund Disclosures
document of the Company available on the Company’s website at
https://www.blackrock.com/uk/literature/policies/itc-disclosures-blackrock-greater-europe-investment-trust-plc.pdf
.
BlackRock’s approach to material ESG integration
BlackRock’s clients have a wide range of perspectives on a variety
of issues and investment themes, including sustainable and low-carbon
transition investing. Given the wide range of unique and varied investment
objectives sought by its clients, BlackRock’s investment teams have a range
of approaches to considering financially material E, S, and/or G factors. As
with other investment risks and opportunities, the financial materiality of E,
S and/or G considerations may vary by issuer, sector, product, mandate, and
time horizon. Depending on the investment approach, this financially material
E, S and/or G data or information may help inform due diligence, portfolio or
index construction, and/or monitoring processes of client portfolios, as well
as BlackRock’s approach to risk management.
BlackRock’s ESG integration framework is built upon its history as a firm
founded on the principle of thorough and thoughtful risk management. Aladdin,
BlackRock’s core risk management and investment technology platform, allows
investors to leverage financially material E, S and/or G data or information
as well as the combined experience of BlackRock’s investment teams to
effectively identify investment opportunities and investment risks.
BlackRock’s heritage in risk management combined with the strength of the
Aladdin platform enables BlackRock’s approach to ESG integration.
BlackRock’s ESG Integration Statement can be found at
https://www.blackrock.com/corporate/literature/publication/blk-esg-investment-statement-web.pdf
.
Investment Stewardship
BlackRock Greater Europe Investment Trust plc –
Investment Stewardship engagement with portfolio companies for the year ended
31 August 2025
The BlackRock portfolio management team has excellent access to
company management teams and undertakes about 700 company meetings each year
to identify high quality, cash generative businesses with strong management
teams that are able to generate growth in a more challenging economic
environment. In addition, BlackRock also has a separate stewardship function.
Effective from 1 January 2025, BlackRock’s stewardship policies are being
developed and implemented by two independent, specialist teams: BlackRock
Investment Stewardship (BIS) and BlackRock Active Investment Stewardship
(BAIS). BIS is responsible for activities in relation to clients’ assets
managed by certain index equity portfolio managers, while BAIS partners with
BlackRock’s active investment teams on company engagement and voting in
relation to their holdings. Since 1 January 2025, BAIS has overseen investment
stewardship for the Company’s portfolio holdings.
The respective investment stewardship teams engage with companies, vote
proxies on behalf of clients, contribute to industry dialogue on stewardship
and report on its activities. The teams aim to maintain a globally consistent
approach while acknowledging the unique markets and sectors in which companies
operate.
For the year to 31 August 2025, the stewardship teams at BlackRock engaged on
a range of governance issues with the management teams of 8 companies in the
portfolio of BlackRock Greater Europe Investment Trust plc, representing 19.5%
of the portfolio holdings at 31 August 2025. Additional information is set out
in the table and charts below as well as the key engagement themes for the
meetings held in respect of the Company’s portfolio holdings.
Year ended
31 August
2025
Number of engagements held 1 11
Number of companies met 1 8
% of equity investments covered 2 19.5%
Shareholder meetings voted at 3 30
Number of proposals voted on 3 554
Number of votes against management 1 46
% of total items voted represented by votes against management 6.8%
=========
1 Source: BlackRock as at 31 August 2025.
2 Source: BlackRock. As a percentage of total portfolio
holdings at 31 August 2025.
3 Source: BlackRock, Institutional Shareholder Services
as at 31 August 2025.
Investment stewardship policies
The benchmark investment stewardship policies, which include BIS’
Global Principles, regional voting guidelines and Engagement Priorities, and
BAIS’ Global Engagement and Voting Guidelines, set out the core elements of
corporate governance that guide the investment stewardship teams’ efforts.
Each team takes a globally consistent approach, while recognising the unique
markets and sectors in which companies operate.
These benchmark policies are reviewed annually to reflect changes in market
standards, regulations, and feedback from clients and companies.
BlackRock is committed to transparency in terms of disclosure of its
stewardship activities on behalf of clients. The investment stewardship teams
publish their voting policies to help BlackRock’s clients understand their
work to advance clients’ interests as investors in public companies.
BlackRock’s stewardship policies and reporting are available at
www.blackrock.com/corporate/insights/investment-stewardship
.
BY ORDER OF THE BOARD
LUCY DINA
FOR AND ON BEHALF OF
BLACKROCK INVESTMENT MANAGEMENT (UK) LIMITED
Company Secretary
4 November 2025
Related party transactions
BlackRock Fund Managers Limited (BFM, AIFM or the Manager) was appointed as
the Company’s AIFM with effect from 2 July 2014. BlackRock Investment
Management (UK) Limited (BIM (UK) or Investment Manager) acts 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.
The management contract is terminable by either party on six months’ notice.
The Board continues to be independent from the AIFM. The agreement provides
the appropriate balance between the Board’s control over the Company, its
investment policies and compliance with regulatory obligations. The AIFM has
(with the Company’s consent) delegated certain portfolio and risk management
services, and other ancillary services, to the Investment Manager.
The AIFM received an annual management fee which was calculated based on 0.85%
per annum of the month-end net asset value up to £350 million and 0.75% per
annum of the month-end net asset value above £350 million for the year ended
31 August 2025. With effect from 1 September 2025, the Company’s annual
management fee reduced to 0.65% of net assets up to and including £400
million, 0.60% of net assets in excess of £400 million up to and including
£1 billion and 0.525% of net assets in excess of £1 billion.
The Company does not have any performance fee arrangements in place. Where the
Company invests in other investments or cash funds managed by BIM (UK), any
underlying fee charged is rebated. The management fee is charged on the Base
Management Fee Net Asset Value, which is the net asset value of the Company on
the last business day of the calendar month, adjusted by adding all dividends
declared by the Company in respect of which shares have gone ‘ex div’ in
that calendar month. No penalty on termination of the investment management
contract would be payable by the Company in the event that six months’
written notice is given to the Manager. There are no provisions relating to
the payment of fees in lieu of notice. The Company contributes to a focused
investment trust sales and marketing initiative operated by BlackRock on
behalf of the investment trusts under its management. The Company’s
contribution to the consortium element of the initiative, which enables the
trusts to achieve efficiencies by combining certain sales and marketing
activities, represents a budget of up to 0.025% per annum of its net assets
(£573.8 million as at 31 December 2024) and this contribution is matched by
BIM (UK). In addition, a budget of a further £21,000 has been allocated for
Company specific sales and marketing activity. Total fees paid or payable for
these services for the year ended 31 August 2025 amounted to £101,000
(excluding VAT) (2024: £157,000). The purpose of the programme overall is to
ensure effective communication with existing shareholders and to attract new
shareholders to the Company. This has the benefit of improving liquidity in
the Company’s shares and helps sustain the stock market rating of the
Company. BFM and BIM (UK) are subsidiaries of BlackRock Inc., which is a
publicly traded corporation on the New York Stock Exchange operating as an
independent firm.
The Board currently consists of six non-executive Directors, all of whom are
considered to be independent of the Company’s Manager. Provision 9 of the UK
Code which relates to the combination of the roles of the chairman and chief
executive does not apply as the Company has no executive directors. The UK
Code recommends that the Board should appoint one of the independent
non-executive directors to be the senior independent director to provide a
sounding board for the Chairman and to serve as an intermediary for the other
Directors when necessary. The Code states that the senior independent director
should be available to shareholders if they have concerns which contact
through the normal channel of the chairman has failed to resolve or for which
such contact is inappropriate. Dr Subacchi is the Company’s Senior
Independent Director. The Board’s primary purpose is to direct the Company
to maximise shareholder value within a framework of proper controls and in
accordance with the Company’s investment objective.
Statement of Directors’ Responsibilities in respect of the Annual Report and
Financial Statements
The Directors are responsible for preparing the Annual Report and the
Financial Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law they have elected to prepare the financial
statements in accordance with applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice).
Under company law, the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company as at the end of each financial year and of the profit
or loss of the Company for that period. In preparing those financial
statements, the Directors are required to:
- present fairly the financial position, financial
performance and cash flows of the Company;
- select suitable accounting policies and then apply them
consistently;
- present information, including accounting policies, in
a manner that provides relevant, reliable, comparable and understandable
information;
- make judgements and estimates that are reasonable and
prudent;
- state whether applicable UK Accounting Standards have
been followed, subject to any material departures disclosed and explained in
the financial statements; and
- prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the Company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company’s transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Company
and hence for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The Directors are also responsible for preparing the Strategic Report, the
Directors’ Report, the Directors’ Remuneration Report, the Corporate
Governance Statement and the Report of the Audit and Management Engagement
Committee in accordance with the Companies Act 2006 and applicable
regulations, including the requirements of the Listing Rules and the
Disclosure Guidance and Transparency Rules. The Directors have delegated
responsibility to the Manager for the maintenance and integrity of the
Company’s corporate and financial information included on the BlackRock
website. Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation in other
jurisdictions.
Each of the Directors at the date of this report, whose names are listed
within the Annual Financial Report confirm to the best of their knowledge
that:
- the financial statements, prepared in accordance with
applicable accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit of the Company; and
- the Strategic Report contained in the Annual Report and
Financial Statements includes a fair review of the development and performance
of the business and the position of the Company, together with a description
of the principal risks and uncertainties that it faces.
The UK Corporate Governance Code also requires Directors to ensure that the
Annual Report and Financial Statements are fair, balanced and understandable.
In order to reach a conclusion on this matter, the Board has requested that
the Audit and Management Engagement Committee advise on whether it considers
that the Annual Report and Financial Statements fulfils these requirements.
The process by which the Committee has reached these conclusions is set out in
the Audit and Management Engagement Committee’s Report within the Annual
Financial Report. As a result, the Board has concluded that the Annual Report
and Financial Statements for the year ended 31 August 2025, taken as a whole,
are fair, balanced and understandable and provide the information necessary
for shareholders to assess the Company’s position, performance, business
model and strategy.
FOR AND ON BEHALF OF THE BOARD
ERIC SANDERSON
Chairman
4 November 2025
Income Statement for the year ended 31 August 2025
2025 2024
Notes Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(Losses)/gains on investments held at fair value through profit or loss 10 – (41,608) (41,608) – 88,991 88,991
(Losses)/gains on foreign exchange – (249) (249) – 1,075 1,075
Income from investments held at fair value through profit or loss 3 9,223 – 9,223 11,969 31 12,000
--------------- --------------- --------------- --------------- --------------- ---------------
Total income 9,223 (41,857) (32,634) 11,969 90,097 102,066
========= ========= ========= ========= ========= =========
Expenses
Investment management fee 4 (954) (3,818) (4,772) (994) (3,976) (4,970)
Other operating expenses 5 (826) (15) (841) (2,420) (9) (2,429)
--------------- --------------- --------------- --------------- --------------- ---------------
Total operating expenses (1,780) (3,833) (5,613) (3,414) (3,985) (7,399)
========= ========= ========= ========= ========= =========
Net profit/(loss) on ordinary activities before finance costs and taxation 7,443 (45,690) (38,247) 8,555 86,112 94,667
Finance costs 6 (297) (1,190) (1,487) (467) (1,870) (2,337)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities before taxation 7,146 (46,880) (39,734) 8,088 84,242 92,330
Taxation charge 7 (462) – (462) (709) (11) (720)
--------------- --------------- --------------- --------------- --------------- ---------------
Net profit/(loss) on ordinary activities after taxation 9 6,684 (46,880) (40,196) 7,379 84,231 91,610
========= ========= ========= ========= ========= =========
Earnings/(loss) per ordinary share (pence) 9 6.89 (48.30) (41.41) 7.35 83.88 91.23
========= ========= ========= ========= ========= =========
The total columns of this statement represent the Company’s profit and loss
account. The supplementary revenue and capital accounts 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 year. All income is attributable to
the equity holders of the Company.
The net profit/(loss) on ordinary activities for the year disclosed above
represents the Company’s total comprehensive income/(loss).
Statement of Changes in Equity for the year ended 31 August 2025
Notes Called Share Capital Special Capital Revenue Total
up share premium redemption reserve reserves reserve £’000
capital account reserve £’000 £’000 £’000
£’000 £’000 £’000
For the year ended 31 August 2025
At 31 August 2024 118 85,325 130 58,331 484,862 11,534 640,300
Total comprehensive (loss)/income:
Net (loss)/profit for the year – – – – (46,880) 6,684 (40,196)
Transaction with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 14,15 – – – (24,099) – – (24,099)
Share repurchase costs 14,15 – – – (91) (1) – (92)
Dividends paid 1 8 – – – – – (6,834) (6,834)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 2025 118 85,325 130 34,141 437,981 11,384 569,079
========= ========= ========= ========= ========= ========= =========
For the year ended 31 August 2024
At 31 August 2023 118 85,325 130 68,558 400,631 10,948 565,710
Total comprehensive income:
Net profit for the year – – – – 84,231 7,379 91,610
Transaction with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 14,15 – – – (10,171) – – (10,171)
Share repurchase costs 14,15 – – – (56) – – (56)
Dividends paid 2 8 – – – – – (6,793) (6,793)
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 2024 118 85,325 130 58,331 484,862 11,534 640,300
========= ========= ========= ========= ========= ========= =========
1 Interim dividend paid in respect of the year ended 31
August 2025 of 1.75p per share was declared on 6 May 2025 and paid on 18 June
2025. Final dividend paid in respect of the year ended 31 August 2024 of 5.25p
per share was declared on 5 November 2024 and paid on 20 December 2024.
2 Interim dividend paid in respect of the year ended 31
August 2024 of 1.75p per share was declared on 2 May 2024 and paid on 19 June
2024. Final dividend paid in respect of the year ended 31 August 2023 of 5.00p
per share was declared on 8 November 2023 and paid on 20 December 2023.
For information on the Company’s distributable reserves, please refer to
note 15 below.
Balance Sheet as at 31 August 2025
Notes 2025 2024
£’000 £’000
Non current assets
Investments held at fair value through profit or loss 10 551,175 691,831
Current assets
Current tax asset 4,229 3,100
Debtors 11 640 748
Cash and cash equivalents – cash at bank 576 8
Cash and cash equivalents – cash fund 1 16,221 –
--------------- ---------------
Total current assets 21,666 3,856
========= =========
Current liabilities
Cash and cash equivalents – bank overdraft 13, 16(c) (1,468) (50,150)
Other creditors 12 (2,294) (5,237)
--------------- ---------------
Total current liabilities (3,762) (55,387)
--------------- ---------------
Net current assets/(liabilities) 17,904 (51,531)
========= =========
Net assets 569,079 640,300
========= =========
Equity
Called up share capital 14 118 118
Share premium account 15 85,325 85,325
Capital redemption reserve 15 130 130
Special reserve 15 34,141 58,331
Capital reserves 15 437,981 484,862
Revenue reserve 15 11,384 11,534
--------------- ---------------
Total shareholders’ funds 9 569,079 640,300
========= =========
Net asset value per ordinary share (pence) 9 598.05 644.60
========= =========
1 Cash fund represents funds held on deposit with the
BlackRock Institutional Cash Series plc - Euro Liquid Environmentally Aware
Fund.
Statement of Cash Flows for the year ended 31 August 2025
Note 2025 2024
£’000 £’000
Operating activities
Net (loss)/profit on ordinary activities before taxation 1 (39,734) 92,330
Add back finance costs 1,487 2,337
Losses/(gains) on investments held at fair value through profit or loss 41,608 (88,991)
Losses/(gains) on foreign exchange 249 (1,075)
Sale of investments held at fair value through profit or loss 302,212 134,209
Purchase of investments held at fair value through profit or loss (203,164) (142,473)
Net amount for capital special dividends received (net of withholding tax) – (20)
Decrease/(increase) in debtors 108 (21)
(Decrease)/increase in creditors (3,131) 630
Taxation on investment income (3,247) (2,291)
Interest paid (1,487) (2,337)
Refund of withholding tax reclaims 1,656 821
--------------- ---------------
Net cash generated from/(used in) operating activities 96,557 (6,881)
========= =========
Financing activities
Ordinary shares repurchased into treasury (24,003) (9,926)
Dividends paid 8 (6,834) (6,793)
--------------- ---------------
Net cash used in financing activities (30,837) (16,719)
========= =========
Increase/(decrease) in cash and cash equivalents 65,720 (23,600)
========= =========
Effect of foreign exchange rate changes (249) 1,075
Cash and cash equivalents at the start of the year (50,142) (27,617)
--------------- ---------------
Cash and cash equivalents at the end of the year 15,329 (50,142)
========= =========
Comprised of:
Cash at bank 576 8
Cash fund 2 16,221 –
Bank overdraft (1,468) (50,150)
--------------- ---------------
15,329 (50,142)
========= =========
1 Dividends and interest received in cash during the year
amounted to £6,719,000 and £1,000 (2024: £8,119,000 and £nil).
2 Cash fund represents funds held on deposit with the
BlackRock Institutional Cash Series plc - Euro Liquid Environmentally Aware
Fund.
Notes to the Financial Statements for the year ended 31 August 2025
1. Principal activity
The Company was incorporated on 1 June 2004 and its principal
activity is that of an investment trust company within the meaning of Section
1158 of the Corporation Tax Act 2010.
2. Significant accounting policies
The principal accounting policies adopted by the Company are set out
below:
(a) Basis of preparation
The financial statements have been prepared on a going concern basis
in accordance with The Financial Reporting Standard applicable in the UK and
Republic of Ireland (FRS 102) 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 October 2019 and updated in July 2022, and the provisions of the Companies
Act 2006.
Substantially, all of the assets of the Company consist of securities that are
readily realisable and, accordingly, the Directors are satisfied that the
Company has adequate resources to continue in operational existence for the
period to 31 August 2027, being a period of at least 12
months from the date of approval of the financial statements, and therefore
consider the going concern assumption to be appropriate. The Directors have
reviewed compliance with covenants associated with the bank overdraft
facility, income and expense projections and the liquidity of the investment
portfolio in making their assessment.
The Directors have considered the impact of climate change on the value of the
investments included in the Financial Statements and have concluded that there
was no further impact of climate change to be considered as the investments
are valued based on market pricing as required by FRS 102.
None of the Company’s other assets and liabilities were considered to be
potentially impacted by climate change.
The principal accounting policies adopted by the Company are set out below.
Unless specified otherwise, the policies have been applied consistently
throughout the year and are consistent with those applied in the preceding
year. All of the Company’s operations are of a continuing nature.
The Company’s financial statements are presented in Sterling, which is the
functional currency of the Company and the primary economic environment in
which the Company operates. All values are rounded to the nearest thousand
pounds (£’000) except where otherwise indicated.
(b) Presentation of Income Statement
In order to better reflect the activities of an investment trust
company and in accordance with guidance issued by the AIC, supplementary
information which analyses the Income Statement between items of a revenue and
a capital nature has been presented alongside the Income Statement.
(c) Segmental reporting
The Directors are of the opinion that the Company is engaged in a
single segment of business being investment business.
(d) Income
Dividends receivable on equity shares are treated as revenue for the
year on an ex-dividend basis. Where no ex-dividend date is available,
dividends receivable on or before the year end are treated as revenue for the
year. Provisions are made for dividends not expected to be received.
Special dividends are recognised on an ex-dividend basis and treated as
capital or revenue depending on the facts or circumstances of each particular
dividend.
Dividends are accounted for in accordance with Section 29 of FRS 102 on the
basis of income actually receivable, without adjustment for tax credits
attaching to the dividend. Dividends from overseas companies continue to be
shown gross of withholding tax.
Deposit interest receivable is accounted for using the effective interest rate
method in accordance with Section 11 of FRS 102.
Where the Company has elected to receive its dividends in the form of
additional shares rather than in cash, the cash equivalent of the dividend is
recognised as revenue. Any excess in the value of the shares received over the
amount of the cash dividend is recognised in capital.
(e) Expenses
All expenses, including finance costs, are accounted for on an
accruals basis. Expenses have been charged wholly to the revenue account of
the Income Statement, except as follows:
- expenses which are incidental to the acquisition or
disposal of an investment are treated as capital. Details of transaction costs
on the purchases and sales of investments are disclosed in note 10 contained
within the Annual Financial Report.
- expenses are treated as capital where a connection with
the maintenance or enhancement of the value of the investments can be
demonstrated; and
- the investment management fee and finance costs have
been allocated 20% to the revenue account and 80% to the capital account of
the Income Statement in line with the Board’s expected long-term split of
returns, in the form of capital gains and income respectively, from the
investment portfolio.
(f) Taxation
The tax expense represents the sum of the tax currently payable and
deferred tax. The tax currently payable is based on the taxable profit for the
year. Taxable profit differs from net profit as reported in the Income
Statement because it excludes items of income or expenses that are taxable or
deductible in other years and it further excludes items that are never taxable
or deductible. The Company’s liability for current tax is calculated using
tax rates that were applicable at the balance sheet date.
The current tax effect of different items of expenditure is allocated between
capital and revenue on the marginal basis using the Company’s effective rate
of corporation tax for the accounting period.
Deferred taxation is recognised in respect of all timing differences at the
financial reporting date, where transactions or events that result in an
obligation to pay more taxation in the future or right to less taxation in the
future have occurred at the balance sheet date. Deferred taxation is measured
on a non-discounted basis, at the average tax rates that are expected to apply
in the periods in which the timing differences are expected to reverse based
on tax rates and laws that have been enacted or substantively enacted by the
balance sheet date. This is subject to deferred taxation assets only being
recognised if it is considered more likely than not that there will be
suitable profits from which the future reversal of the timing differences can
be deducted.
(g) Investments held at fair value through profit or loss
The Company’s investments are classified as held at fair value
through profit or loss in accordance with Sections 11 and 12 of FRS 102 and
are managed and evaluated on a fair value basis in accordance with its
investment strategy.
All investments are classified upon initial recognition as held at fair value
through profit or loss. Purchases of investments are recognised on a trade
date basis. Sales are recognised at the trade date of the disposal and the
proceeds are measured at fair value, which is regarded as the proceeds of the
sale less any transaction costs.
The fair value of the financial investments is based on their quoted bid price
at the balance sheet date on the exchange on which the investment is quoted,
without deduction for the estimated future selling costs.
Unquoted investments are valued by the Directors at fair value using
International Private Equity and Venture Capital Valuation Guidelines. This
policy applies to all current and non-current asset investments of the
Company.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Income Statement as
‘Gains or losses on investments held at fair value through profit or
loss’. Also included within this heading are transaction costs in relation
to the purchase or sale of investments.
The fair value hierarchy consists of the following three levels:
Level 1 – Quoted market price for identical instruments in active markets.
Level 2 – Valuation techniques using observable inputs.
Level 3 – Valuation techniques using significant unobservable inputs.
(h) Debtors
Debtors include sales for future settlement, other debtors and
prepayments and accrued income in the ordinary course of business. If
collection is expected in one year or less, they are classified as current
assets. If not, they are presented as non-current assets.
(i) Creditors
Creditors include purchases for future settlement, interest payable,
share buy back costs and accruals in the ordinary course of business.
Creditors are classified as creditors - amounts due within one year if payment
is due within one year or less (or in the normal operating cycle of business
if longer). If not, they are presented as creditors - amounts due after more
than one year.
(j) Dividends payable
Under Section 32 of FRS 102, final dividends should not be accrued
in the financial statements unless they have been approved by shareholders
before the balance sheet date. Dividends payable to equity shareholders are
recognised in the Statement of Changes in Equity when they have been approved
by shareholders and have become a liability of the Company. Interim dividends
are only recognised in the financial statements in the period in which they
are paid.
(k) Cash and cash equivalents
Cash comprises cash in hand and on demand deposits. Cash equivalents
include bank overdrafts repayable on demand and 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.
The Company’s investment in the Cash Fund is managed as part of the
Company’s investment policy and, accordingly, the investment is managed as
part of the Company’s cash and cash equivalents as defined under FRS 102 and
is presented as a cash equivalent in the Financial Statements.
(l) Foreign currency translation
In accordance with Section 30 of FRS 102, the Company is required to
nominate a functional currency being the currency in which the Company
predominately operates. The functional and reporting currency is Sterling,
reflecting the primary economic environment in which the Company operates.
Transactions in foreign currencies are translated into Sterling at the rates
of exchange ruling on the date of the transaction. Foreign currency monetary
assets and liabilities are translated into Sterling at the rates of exchange
ruling at the balance sheet date. Profits and losses thereon are recognised in
the capital account of the Income Statement and taken to the capital reserves.
(m) Share repurchases, share reissues and new share issues
Shares repurchased and subsequently cancelled – share capital is
reduced by the nominal value of the shares repurchased and the capital
redemption reserve is correspondingly increased in accordance with Section 733
of the Companies Act 2006. The full cost of the repurchase is charged to the
special reserve.
Shares repurchased and held in treasury – the full cost of the repurchase is
charged to the special reserve.
Where treasury shares are subsequently reissued:
- amounts received to the extent of the repurchase price
are credited to the special reserve and capital reserves based on a weighted
average basis of amounts utilised from these reserves on repurchases; and
- any surplus received in excess of the repurchase price
is taken to the share premium account.
Where new shares are issued, the par value is taken to called up share capital
and amounts received to the extent of any surplus received in excess of the
par value are taken to the share premium account.
Share issue costs are charged to the share premium account. Costs on share
reissues are charged to the special reserve and capital reserves.
(n) Bank borrowings
Bank overdrafts are recorded as the proceeds received. Finance
charges are accounted for on an accruals basis in the Income Statement.
(o) Critical accounting estimates and judgements
The Company makes estimates and assumptions concerning the future.
The resulting accounting estimates and assumptions will, by definition, seldom
equal the related actual results. Estimates and judgements are regularly
evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the
circumstances. The Directors do not believe that any accounting judgements or
estimates have a significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the next financial year.
3. Income
2025 2024
£’000 £’000
Investment income:
UK dividends 656 807
Overseas dividends 8,442 10,687
Overseas special dividends 124 475
--------------- ---------------
Total investment income 9,222 11,969
========= =========
Other income:
Interest received 1 –
--------------- ---------------
Total other income 1 –
========= =========
Total 9,223 11,969
========= =========
Dividends and interest received in cash during the year amounted to
£6,719,000 and £1,000 respectively (2024: £8,119,000 and £nil).
No special dividends have been recognised in capital during the year (2024:
£31,000).
4. Investment management fee
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 954 3,818 4,772 994 3,976 4,970
--------------- --------------- --------------- --------------- --------------- ---------------
Total 954 3,818 4,772 994 3,976 4,970
========= ========= ========= ========= ========= =========
Up to 31 August 2025, the investment management fee was levied quarterly based
on a tiered basis: 0.85% per annum of the month-end net asset value up to
£350 million and 0.75% per annum of the month-end net asset value above £350
million.
With effect from 1 September 2025, the Company’s annual management fee was
reduced to the following tiers: 0.65% of month-end net assets up to and
including £400 million, 0.60% of month-end net assets in excess of £400
million up to and including £1 billion and 0.525% of month-end net assets in
excess of £1 billion.
It is estimated that the Company’s ongoing charges ratio (OCR) will reduce,
allowing it to achieve an illustrative OCR of 0.775% (based on average net
assets for the year ended 31 August 2025), representing a material improvement
from the Company’s OCR of 0.95% for the year ended 31 August 2025 as set out
in note 5.
The investment management fee is allocated 20% to the revenue account and 80%
to the capital account of the Income Statement. There is no additional fee for
company secretarial and administration services.
5. Other operating expenses
2025 2024
£’000 £’000
Allocated to revenue:
Broker fees 48 48
Custody fees 68 65
Depositary fees 68 70
Audit fees 1 59 64
Legal fees 11 26
Registrar’s fees 98 94
Directors’ emoluments 2 207 186
Marketing fees 101 157
Postage and printing fees 59 46
AIC fees 23 22
Professional fees 16 37
Stock exchange listing fees 37 30
Write back of prior year expense accruals 3 (10) (12)
Other administration costs 41 30
Provision for doubtful debts 4 – 1,557
--------------- ---------------
Total revenue expenses 826 2,420
========= =========
Allocated to capital:
Custody transaction costs 5 15 9
--------------- ---------------
Total capital expenses 15 9
========= =========
Total 841 2,429
========= =========
2025 2024
% %
Ongoing charges 6 0.95 0.95
========= =========
1 No non-audit services are provided by the Company’s
auditors (2024: none).
2 Further information on Directors’ emoluments can be
found in the Directors’ Remuneration Report within the Annual Financial
Report. The Company has no employees.
3 Relates to legal fees and other administration costs
written back in the year ended 31 August 2025 (2024: professional fees and
postage and printing fees).
4 Provision for doubtful debts of £1,557,000 during the
year ended 31 August 2024 relate to dividend income from Sberbank which has
not been received due to measures imposed by the Russian authorities in
response to the sanctions that have been imposed on Russia as a result of the
invasion of Ukraine.
5 For the year ended 31 August 2025, expenses of £15,000
(2024: £9,000) were charged to the capital account of the Income Statement.
These relate to transaction costs charged by the custodian on sale and
purchase trades.
6 The Company’s ongoing charges are calculated as a
percentage of average daily net assets and using the management fee and all
other operating expenses, excluding finance costs, direct transaction costs,
custody transaction charges, VAT recovered, taxation, prior year expenses
written back and certain non-recurring items. Alternative Performance Measure,
see Glossary contained within the Annual Financial Report.
6. Dividends
Dividends paid on equity shares: Record date Payment date 2025 2024
£’000 £’000
2023 Final dividend of 5.00p 17 November 2023 20 December 2023 – 5,041
2024 Interim dividend of 1.75p 24 May 2024 19 June 2024 – 1,752
2024 Final dividend of 5.25p 22 November 2024 20 December 2024 5,154 –
2025 Interim dividend of 1.75p 23 May 2025 18 June 2025 1,680 –
--------------- ---------------
Accounted for in the financial statements 6,834 6,793
========= =========
The Directors have proposed a final dividend of 5.40p per share in respect of
the year ended 31 August 2025. The final dividend will be paid on 19 December
2025, subject to shareholders’ approval on 11 December 2025, to shareholders
on the Company’s register on 21 November 2025. The proposed final dividend
has not been included as a liability in these financial statements as final
dividends are only recognised in the financial statements when they have been
approved by shareholders.
The total dividends payable in respect of the year which form the basis of
determining retained income for the purpose of Section 1158 of the Corporation
Tax Act 2010 and Section 833 of the Companies Act 2006, and the amount
proposed for the year ended 31 August 2025, meet the relevant requirements as
set out in this legislation.
Dividends paid or proposed on equity shares: 2025 2024
£’000 £’000
Interim paid of 1.75p (2024: 1.75p) 1,680 1,752
Final proposed of 5.40p* (2024: 5.25p) 5,075 5,158
--------------- ---------------
Total for the year 6,755 6,910
========= =========
* Based on 93,984,107 ordinary shares (excluding treasury
shares) in issue 31 October 2025.
All dividends paid or payable are distributed from the Company’s current
year revenue profits and, if required, from brought forward revenue reserves.
7. Earnings and net asset value per ordinary share
Revenue, capital (loss)/earnings and net asset value per ordinary
share are shown below and have been calculated using the following:
2025 2024
Net revenue profit attributable to ordinary shareholders (£’000) 6,684 7,379
Net capital (loss)/profit attributable to ordinary shareholders (£’000) (46,880) 84,231
--------------- ---------------
Total (loss)/profit attributable to ordinary shareholders (£’000) (40,196) 91,610
========= =========
Total shareholders’ funds (£’000) 569,079 640,300
========= =========
Earnings per share
The weighted average number of ordinary shares in issue during the year on which the earnings per ordinary share was calculated was: 97,066,146 100,411,682
The actual number of ordinary shares in issue at the end of the year on which the net asset value per ordinary share was calculated was: 95,155,422 99,332,161
Calculated on weighted average number of ordinary shares:
Revenue earnings per share (pence) – basic and diluted 6.89 7.35
Capital (loss)/earnings per share (pence) – basic and diluted (48.30) 83.88
--------------- ---------------
Total (loss)/earnings per share (pence) – basic and diluted (41.41) 91.23
========= =========
As at As at
31 August 31 August
2025 2024
Net asset value per share (pence) 598.05 644.60
Ordinary share price (pence) 570.00 601.00
========= =========
8. Called up share capital
Ordinary shares Treasury shares Total shares Nominal
number number number value
£’000
Allotted, called up and fully paid share capital comprised:
Ordinary shares of 0.1 pence each:
At 31 August 2023 101,000,161 16,928,777 117,928,938 118
Ordinary shares repurchased into treasury (1,668,000) 1,668,000 – –
--------------- --------------- --------------- ---------------
At 31 August 2024 99,332,161 18,596,777 117,928,938 118
Ordinary shares repurchased into treasury (4,176,739) 4,176,739 – –
--------------- --------------- --------------- ---------------
At 31 August 2025 95,155,422 22,773,516 117,928,938 118
========= ========= ========= =========
During the year, 4,176,739 ordinary shares (2024: 1,668,000) were repurchased
and held in treasury for a net consideration after expenses of £24,191,000
(2024: £10,227,000).
Since 31 August 2025 and up to the latest practicable date of 31 October 2025,
a further 1,171,315 ordinary shares have been repurchased for a net
consideration after expenses of £6,908,000 and placed in treasury.
9. Reserves
Distributable Reserves
Share Capital Special Capital Capital Revenue
premium redemption reserve 1 reserve reserve reserve
account reserve £’000 (arising on (arising on £’000
£’000 £’000 investments revaluation of
sold) investments
£’000 held)
£’000
At 31 August 2023 85,325 130 68,558 251,181 149,450 10,948
Movement during the year:
Total comprehensive income:
Net profit for the year – – – 4,166 80,065 7,379
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (10,171) – – –
Share repurchase costs – – (56) – – –
Dividends paid during the year – – – – – (6,793)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 2024 85,325 130 58,331 255,347 229,515 11,534
Movement during the year:
Total comprehensive income/(loss):
Net profit/(loss) for the year – – – 53,218 (100,098) 6,684
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury – – (24,099) – – –
Share repurchase costs – – (91) (1) – –
Dividends paid during the year – – – – – (6,834)
--------------- --------------- --------------- --------------- --------------- ---------------
At 31 August 2025 85,325 130 34,141 308,564 129,417 11,384
========= ========= ========= ========= ========= =========
1 Relates to amount transferred from the share premium
account to a special reserve pursuant to Court approval received on 15 October
2004.
The share premium account and capital redemption reserve of £85,325,000 and
£130,000 (2024: £85,325,000 and £130,000) are not distributable reserves
under the Companies Act 2006. In accordance with ICAEW Technical Release
02/17BL on Guidance on Realised and Distributable Profits under the Companies
Act 2006, the special reserve and capital reserves may be used as
distributable reserves for all purposes and, in particular, the repurchase by
the Company of its ordinary shares and for payments such as dividends. In
accordance with the Company’s Articles of Association, the special reserve
of £34,141,000 (2024: £58,331,000), capital reserves of £437,981,000 (2024:
£484,862,000) and the revenue reserve of £11,384,000 (2024: £11,534,000)
may be distributed by way of dividend. The gain on the capital reserve arising
on the revaluation of investments held of £129,417,000 (2024: £229,515,000)
is subject to fair value movements and may not be readily realisable at short
notice, as such it may not be entirely distributable. The investments are
subject to financial risks, as such the capital reserves (arising on
investments sold) and the revenue reserve may not be entirely distributable if
a loss occurred during the realisation of these investments.
As at 31 August 2025, the Company’s distributable reserves excluding capital
reserves on the revaluation of investments amounted to £354,089,000 (2024:
£325,212,000).
10. Valuation of financial instruments
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 at bank and bank
overdrafts). Section 34 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 to the Financial
Statements above.
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 market price for identical instruments in active markets
A financial instrument is regarded as quoted in an active market if
quoted prices are readily 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 active, or other
valuation techniques where 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 market data and these 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. 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 including an assessment of the relevant risks including but not
limited to credit risk, market risk, liquidity risk, business risk and
sustainability risk. The determination of what constitutes ‘observable’
inputs requires significant judgement by the Investment Manager and these
risks are adequately captured in the assumptions and inputs used in the
measurement of Level 3 assets or liabilities.
Fair values of financial assets and financial liabilities
The table below is an analysis of the Company’s financial
instruments measured at fair value at the balance sheet date.
Financial assets at fair value through profit or loss Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Equity investments at 31 August 2025 551,174 – 1 551,175
Equity investments at 31 August 2024 691,830 – 1 691,831
========= ========= ========= =========
The Company held two Level 3 securities as at 31 August 2025 (2024: two).
A reconciliation of fair value measurement in Level 3 is set out below.
Level 3 financial assets at fair value through profit or loss
2025 2024
£’000 £’000
Opening fair value 1 942
Loss on investments included in (losses)/gains on investments in the Income Statement – (941)
--------------- ---------------
Closing balance 1 1
========= =========
As at 31 August 2025, the investments in Sberbank and Lukoil have been valued
at a nominal value of £0.01 due to the closure of the Moscow Stock Exchange
to overseas investors and the secondary listings of depositary receipts of
Russian companies having been suspended from trading. At the time of the
invasion of Ukraine on 23 February 2022, the original book cost of these
holdings was £28.7m and its carrying value was £20.7m and these amounts were
fair valued to a nominal value of £0.01 on 3 March 2022.
For exchange listed equity investments, the quoted price is the bid price.
Substantially, all investments are valued based on unadjusted quoted market
prices. Where such quoted prices are readily available in an active market,
such prices are not required to be assessed or adjusted for any business
risks, including climate change risk, in accordance with the fair value
related requirements of the Company’s financial reporting framework.
11. Transactions with the Investment Manager and AIFM
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 the Directors’ Report
within the Annual Financial Report.
The investment management fee is levied quarterly based on a tiered basis:
0.85% per annum on the month-end net asset value up to £350 million and 0.75%
per annum on the month-end net asset value above £350 million. The investment
management fee due for the year ended 31 August 2025 amounted to £4,772,000
(2024: £4,970,000). At the year end, £1,192,000 was outstanding in respect
of the management fee (2024: £3,872,000).
In addition to the above services, BIM (UK) provided the Company with
marketing services. The total fees paid or payable for these services for the
year ended 31 August 2025 amounted to £101,000 excluding VAT (2024:
£157,000). Marketing fees of £168,000 excluding VAT were outstanding at 31
August 2025 (2024: £198,000).
During the year, the Manager pays the amounts due to the Directors. These fees
are then reimbursed by the Company for the amounts paid on its behalf. As at
31 August 2025, an amount of £141,000 was payable to the Manager in respect
of Directors’ fees (2024: £205,000).
The Company has an investment in the BlackRock Institutional Cash Series plc -
Euro Liquid Environmentally Aware Fund of £16,221,000 (2024: £nil) which for
the year ended 31 August 2025 has been presented in the financial statements
as a cash equivalent.
The ultimate holding company of the Manager and the Investment Manager is
BlackRock, Inc., a company incorporated in Delaware, USA.
12. Related party disclosure
Disclosures of the Directors’ interests in the ordinary shares of
the Company and fees and expenses payable to the Directors are set out in the
Directors’ Remuneration Report on within the Annual Financial Report. At 31
August 2025, an amount of £19,000 (2024: £15,000) was outstanding in respect
of Directors’ fees.
Significant holdings
The following investors are:
a. funds managed by the BlackRock Group or are affiliates
of BlackRock Inc. (Related BlackRock Funds); or
b. investors (other than those listed in (a) above) who
held more than 20% of the voting shares in issue in the Company and are, as a
result, considered to be related parties to the Company (Significant
Investors).
Total % of shares Total % of shares held by Number of Significant Investors
held by Related Significant Investors who are who are not affiliates of
BlackRock Funds not affiliates of BlackRock BlackRock Group or
Group or BlackRock, Inc. BlackRock, Inc.
As at 31 August 2025 1.3 n/a n/a
As at 31 August 2024 1.3 n/a n/a
========= ========= =========
13. Contingent liabilities
There were no contingent liabilities at 31 August 2025 (2024: none).
14. Publication of non-statutory accounts
The financial information contained in this announcement does not constitute
statutory accounts as defined in the Companies Act 2006. The Annual Report and
Financial Statements for the year ended 31 August 2025 will be filed with the
Registrar of Companies after the Annual General Meeting.
The figures set out above have been reported upon by the auditor, whose report
for the year ended 31 August 2024 contains no qualification or statement under
Section 498(2) or (3) of the Companies Act 2006.
The comparative figures are extracts from the audited financial statements of
BlackRock Greater Europe Investment Trust plc for the year ended 31 August
2024, which have been filed with the Registrar of Companies. The report of the
auditor on those financial statements contained no qualification or statement
under Section 498 of the Companies Act.
15. ANNUAL REPORT
Copies of the Annual Report and Financial Statements will be published shortly
and will be available from the registered office, c/o The Company Secretary,
BlackRock Greater Europe Investment Trust plc, 12 Throgmorton Avenue, London
EC2N 2DL.
16. ANNUAL GENERAL MEETING
The Annual General Meeting of the Company will be held at the offices of
BlackRock, 12 Throgmorton Avenue, London EC2N 2DL on Thursday, 11 December
2025 at 12 noon.
ENDS
The Annual Report will also be available on the BlackRock website at
www.blackrock.com/uk/brge
. 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.
For further information please contact:
Sarah Beynsberger, Director, Closed End Funds, BlackRock Investment Management
(UK) Limited
Tel: 020 7743 3000
12 Throgmorton Avenue
London
EC2N 2DL
Press enquiries:
Ed Hooper, Lansons Communications
Tel: 020 7294 3620
E-mail:
BlackRockInvestmentTrusts@lansons.com
or EdH@lansons.com
4 November 2025
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