REG-BlackRock Greater Europe Investment Trust Plc: Portfolio Update

Blackrock Greater Europe Investment TrustAnnouncement

Thu 17:15

The information contained in this release was correct as at                   
              31 October 2025                               . Information on
the Company’s up to date net asset values can be found on the London Stock
Exchange website at:

 

https://www.londonstockexchange.com/exchange/news/market-news/market-news-home.html
                              .           

 

 

 

BLACKROCK GREATER EUROPE INVESTMENT TRUST PLC (LEI - 5493003R8FJ6I76ZUW55)

All information is at                                  31 October 2025        
                       and unaudited.          
          
                     Performance at month end with net income reinvested      
             
           

                              One  Month  Three  Months  One  Year  Three  Years  Launch  (20 Sep 04)  
                                                                                                       
 Net asset value (undiluted)  1.9%        3.2%           7.0%       39.7%         790.5%               
 Share price                  0.8%        2.6%           9.9%       40.1%         755.4%               
 FTSE World Europe ex UK      3.0%        6.9%           21.3%      58.3%         557.5%               

Sources: BlackRock and Datastream                    
           

 

At month end

 Net asset value (capital only):      625.45p     
 Net asset value (including income):  631.94p     
 Share price:                         599.00p     
 Discount to NAV (including income):  5.2%        
 Net gearing:                         1.1%        
 Net yield 1 :                        1.2%        
 Total assets (including income):     £593.9m     
 Ordinary shares in issue 2 :         93,984,107  
 Ongoing charges 3 :                  0.95%       
                                                  

 

1                      Based on an interim dividend of 1.75p per share and a
final dividend of 5.40p per share for the year ended 31 August 2025.

2                      Excluding 23,944,831 shares held in treasury.         

          3                      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, write back of prior year expenses and certain non-recurring items
for the year ended 31 August 2025.

 

                         
 Sector Analysis         Total Assets (%)  
 Industrials             39.6              
 Technology              18.9              
 Consumer Discretionary  15.2              
 Financials              12.7              
 Health Care             8.5               
 Basic Materials         4.7               
 Net Current Assets      0.4               
                         -----             
                         100.0             
                         =====             
                                           
                                           
                                           
                                           
                                           
                                           
                                           
                                           
                                             
 Country Analysis        Total Assets (%)  
 France                  25.2              
 Switzerland             16.4              
 Netherlands             12.4              
 Germany                 11.9              
 Ireland                 6.1               
 Spain                   4.6               
 Belgium                 4.2               
 Denmark                 3.9               
 United States           3.6               
 United Kingdom          3.5               
 Finland                 3.4               
 Sweden                  2.5               
 Norway                  1.9               
 Net Current Assets      0.4               
                         -----             
                         100.0             
                         =====             
                                           
                                           
                                           
                                           
                                           
                                           

 


 

 Top 10 holdings                 Country      Fund %  
 Safran                          France       8.0     
 Schneider Electric              France       5.0     
 Compagnie Financiere Richemont  Switzerland  4.7     
 Hermès                          France       4.6     
 Allied Irish Banks (AIB)        Ireland      4.6     
 Belimo                          Switzerland  4.4     
 SAP                             Germany      4.3     
 KBC Groep                       Belgium      4.2     
 Adyen                           Netherlands  4.0     
 ASML                            Netherlands  4.0     
                                                      

 

Commenting on the markets, Stefan Gries and Alexandra Dangoor, representing
the Investment Manager noted:

                       

During the month, the Company’s NAV rose by 1.9% and the share price rose
0.8%. For reference, the FTSE World Europe ex UK market returned by 3.0%
during the period.

 

As the Q3 earnings season kicked off, we continue to navigate a weaker back
drop in terms of the real economy, outside of AI spending. The year thus far
has been characterised by the corporate ‘haves’ and ‘have nots’, and
while there is some incremental change possible through results season, on
balance we continue to see a market dichotomy in the near-term. Incredibly
strong capex commitments from hyperscalers have re-ignited what was already a
dominant AI equity market theme. However, we also continue to see
opportunities outside of this singular topic, including real economy stocks
such as European banks. The timing of other real economy end-markets such as
construction, chemicals, and consumer goods continues to be a debate.

 

Sector allocation effects were negative over the month, driven by underweight
positioning to utilities, energy and consumer staples. An overweight
positioning to technology and an underweight position to financials were
additive.

 

Shares in Ferrari fell after a disappointing capital markets day took place.
The outlook was underwhelming and while we are used to Ferrari's management
team embedding a high degree of conservatism into guidance figures, it posed
questions around the long-term growth rate of the company. There has been
exceptional growth in personalisation, benefitting the price mix, in recent
years but this is expected to moderate going forward. Management communication
was bearish and led us to review the valuation warranted for the company going
forward. As a result, we have sold our position in favour of higher conviction
opportunities in the consumer sector.

 

Defence holdings - Kongsberg, Thales - pulled back as volatility for the
industry remains elevated. Expectations have risen as the market waits for the
benefits of the defence spending boost to become evident. Geopolitical news,
such as the possibility for a ceasefire in Ukraine, also continues to have a
material influence on the share price. Thales reported decent Q3 numbers,
however Kongsberg's earnings disappointed. Although orders beat by 9%,
revenues and EBIT missed by 11% and 13% respectively. News of the demerger of
their Maritime business was also taken negatively by the market. Kongsberg's
portfolio remains one of the best in the sector, well geared to the demand for
air defence equipment. Although near term volatility in the shares is likely
to remain and it will take time for the market to digest the valuation of the
split businesses, we do not see a change to the multi-year investment case for
their defence division.

 

MTU was a detractor this month as, after an impressive run of share price
performance over the past year, some concerns have risen regarding the
longevity of the Company's strong results. MTU delivered impressive Q3
earnings, including a 3% sales beat, a 16% EBIT beat and a guidance raise. We
believe the company’s valuation remains attractive compared to civil
aerospace peers and these concerns from the market have the potential to turn
into alpha opportunities if the company continues to execute well.

 

Nemetschek and RELX continue to be a drag on returns as fears remain regarding
the disruption AI may have on the long-term business models. This negative
narrative is hard to disprove immediately and it will take the continuous
delivery of solid earning to disperse fears. We have reduced the weights of
both holdings over the month as shares are trading on full valuations and
appreciate the time it may take for market sentiment to change.

 

Linde dragged as the company is still yet to see any volume growth or
improvement in earnings as manufacturing end markets remain weak. This remains
a good defensive business with an exceptional management team.               
      However, share price performance remains restricted until there is a
pick-up in volumes. The delayed recovery was also communicated by Saint
Gobain, another company that declined on negative Q3 results. Saint Gobain
remains a well-managed cyclical company, trading on an attractive valuation
and well positioned once end markets eventually pick up.

 

After seeing an improved sentiment for the AI theme in September, European
semiconductor companies continued to rally this month, benefitting the
portfolio's holding in BE Semiconductor. The company reported solid Q3 order
numbers, meeting consensus expectations which had risen significantly and
pointed towards strong order momentum into Q4 with some improvement in
electronics and autos end markets. However, an underweight position in ASML
detracted as the share price rose on this theme.           

 

Despite shares pulling back ahead of a Q3 trading update, Adyen was a positive
contributor as a higher take rate led to a 1% beat in revenues versus
consensus expectations. Focus now turns to the company’s capital markets day
in November where more details on medium term targets are expected to be
given.

 

Chemometec was a positive contributor as the underlying business continues to
operate well, despite broader concerns regarding early-stage funding for life
sciences. Confidence in the company's future performance was confirmed through
a guidance raise of 3% for sales and 7% for EBITDA. We remain impressed by the
new CEO who is driving improvements, particularly around culture.

 

Outlook

 

We expect to see inflation on a continued path of normalisation, central banks
that provide 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 fiscal spend in
Europe’s largest economy in Germany and a trade agreement between Europe and
the US all points 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.

            

Europe remains home to many world-class franchises, 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. Overall,
we retain our core exposure to companies 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.

 

11 December 2025

 

 

ENDS

 

Latest information is available by typing                                 
www.blackrock.com/uk/brge                                on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal).                      Neither the contents of the Manager’s
website nor the contents of any website accessible from hyperlinks on the
Manager’s website (or any other website) is incorporated into, or forms part
of, this announcement.



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