BlackRock Greater Europe Investment Trust Plc - Portfolio Update
PR Newswire
LONDON, United Kingdom, August 20
The information contained in this release was correct as at 31 July 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 July 2025 and unaudited.
Performance at month end with net income reinvested
| One Month | Three Months | One Year | Three Years | Launch (20 Sep 04) |
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Net asset value (undiluted) | -2.0% | 5.3% | -2.0% | 25.8% | 762.8% |
Share price | -1.5% | 6.1% | -3.2% | 29.7% | 734.0% |
FTSE World Europe ex UK | 1.4% | 6.0% | 11.3% | 43.8% | 515.1% |
Sources: BlackRock and Datastream
At month end
Net asset value (capital only): | 607.41p |
Net asset value (including income): | 612.28p |
Share price: | 584.00p |
Discount to NAV (including income): | 4.6% |
Net cash: | 0.5% |
Net yield1: | 1.2% |
Total assets (including income): | £584.8m |
Ordinary shares in issue2: | 95,518,569 |
Ongoing charges3: | 0.95% |
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1 Based on a final dividend of 5.25p per share for the year ended 31 August 2024 and an interim dividend of 1.75p per share for the year ending 31 August 2025.
2 Excluding 22,410,369 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 2024.
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Top 10 holdings | Country | Fund % |
Safran | France | 7.6 |
RELX | United Kingdom | 6.9 |
Belimo | Switzerland | 4.9 |
Schneider Electric | France | 4.8 |
SAP | Germany | 4.7 |
Hermès | France | 4.7 |
Ferrari | Italy | 4.4 |
Adyen | Netherlands | 4.2 |
Linde | United States | 4.1 |
Lonza Group | Switzerland | 4.1 |
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Commenting on the markets, Stefan Gries and Alexandra Dangoor, representing the Investment Manager noted:
During the month, the Company's NAV declined by 2.0% and the share price by 1.5%. For reference, the FTSE World Europe ex UK Index returned +1.4% during the period.
The second quarter earnings season in Europe was better than feared, albeit on an absolute basis, still relatively weak. Overall, we note that expectations are still for low growth for 2025, close to flat for the year. Earnings have been impacted by strength in the EUR versus the USD, as well as tariff impacts factored into earnings, which we expect to become more visible through the year. The weaker breadth of earnings was notable in the quarter. By sector, we saw strength in Industrials and Banks with weakness particularly evident in Chemicals, Autos and Energy. Share price reactions have been severe, with the average magnitude of stock moves post results in Europe being the second largest since at least 2010, despite the average magnitude of earnings per share surprises being low versus history (Morgan Stanley, July 2025).
Allocation effects were negative in July, driven by the portfolio's underweight positioning to Financials and overweight positioning to Technology. Overweight positioning to Industrials and underweight to Consumer Staples contributed positively to sector allocation effects.
Semiconductor holdings faced headwinds this month, with ASM International and BE Semiconductor being notable detractors. ASMi reported mixed results, with strong year-over-year revenue growth overshadowed by a significant decline in Q2 bookings and cautious future sales guidance. Despite hyperscalers increasing capital expenditure guidance, European wafer fab equipment players are still yet to see the benefit of this spend. This could also be seen for BESI where Q2 order intake was weak and Q3 guidance was disappointing.
A position in Kongsberg detracted after the Q2'25 earnings results included a slight miss in orders and revenue, driven by weakness in the Maritime division. It has been common for small disappointments in earnings to be punished by the market, especially given the high expectations for defence companies approaching results season. Despite the setback, the anticipated increase in defence budgets and proportion being allocated to equipment, underpins Kongsberg's long-term growth potential.
IMCD detracted this month, primarily due to reduced industrial activity persisting in the market. The company's Q2'25 results disappointed with sales 5% below consensus and gross profit a 4% miss. Despite these challenges, pricing remains positive, positioning the company well for an eventual recovery in volumes.
Shares in luxury goods holdings - Richemont, Ferrari, Hermès - faced challenges this month as consumer end-markets remain subdued. Despite Richemont printing strong 11% growth in its jewellery division, the market was concerned by increasing raw material costs and unfavourable FX dynamics putting the margin under pressure. The company continues to benefit from the strong momentum of the Van Cleef and Cartier brands, however tough comparative growth expectations in the near term have led us to trim the position.
Shares in Novo Nordisk fell further upon news of slower than expected growth for their obesity drugs, both in the US and international markets, leading to a sales and profit warning for 2025 forecasts. In part, this reflects the overhang of compounded GLP-1 drugs which continue to exist in the market. Additionally, the decision to hire a CEO internally after a short search was taken negatively, as hopes were on an external hire coming in to turnaround the company's commercial strategy.
Within Industrials, a position in Belimo continued to be additive with business momentum supported by elements of structural growth, such as datacentres. The company's H1'25 financial results confirmed trends of the pre-released positive warning. Their product excellence has built them a leading position in the rapidly expanding segment of liquid cooling in datacentres, with commensurate improvement in group profitability as these high-value products grow in the sales mix.
Design and build software business, Nemetschek, contributed positively to active returns over the month. The company posted solid results and a guidance increase despite the challenging backdrop in construction end-markets.
Outlook
We are hopeful that the tariff agreement between the US and Europe gives companies the chance to move on from the uncertainty expressed in H1'25 and continue to believe the real-world impact will be manageable and that companies will look to share costs throughout the value chains and geographies. Many of the global companies we own have weathered considerable challenges since the onset of the pandemic - most notably extended supply-chain disruptions - and are in many cases better equipped to navigate today's complex environment. Meanwhile, we continue to see a resilient bottom-up picture which should support a change in market drivers in time once uncertainties clear.
Historically, Europe has been home to many world-class franchises that earn profits globally, including from the US and China. This remains true, but now there is a stronger domestic earnings contribution driven by an improved outlook for the continent. There is potential recovery within rate-sensitive sectors such as construction, as Europe is currently in a rate-cutting cycle. Economic strength in Europe has been evident in the periphery - Spain and Italy, but now there is change in key countries like Germany with a new government forming and releasing fiscal constraints to stimulate the economy.
While the geopolitical landscape is challenging to navigate, especially with US policy keeping investors on their toes, focusing on changing earnings streams can help deliver strong long-term outcomes for investors. 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.
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.
20 August 2025
