The information contained in this release was correct as at
31 October 2021. 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
2021 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) |
5.9% |
4.3% |
50.2% |
102.8% |
814.4% |
Net asset value*
(diluted) |
5.9% |
4.3% |
50.2% |
102.7% |
814.8% |
Share price |
4.8% |
4.2% |
59.9% |
119.5% |
841.0% |
FTSE World Europe ex
UK |
3.0% |
2.2% |
33.8% |
43.0% |
369.8% |
* Diluted for treasury shares and subscription shares.
Sources: BlackRock and Datastream
At month end
Net asset value
(capital only): |
677.06p |
Net asset value
(including income): |
679.59p |
Net asset value
(capital only)1: |
677.06p |
Net asset value
(including income)1: |
679.59p |
Share price: |
692.00p |
Premium to NAV
(including income): |
1.8% |
Premium to NAV
(including income)1: |
1.8% |
Net gearing: |
5.7% |
Net
yield2: |
0.9% |
Total assets
(including income): |
£667.8m |
Ordinary shares in
issue3: |
98,265,411 |
Ongoing
charges4: |
1.02% |
1 Diluted for treasury shares.
2 Based on a final dividend of 4.55p per share and an interim
dividend of 1.75p per share for the year ended 31 August 2021.
3 Excluding 17,573,527 shares held in treasury.
4 Calculated as a percentage of average net assets and using
expenses, excluding interest costs, after relief for taxation, for
the year ended 31 August 2021.
Sector Analysis |
Total Assets
(%) |
Technology |
23.6 |
Industrials |
22.9 |
Health Care |
17.1 |
Consumer Discretionary |
15.0 |
Financials |
9.2 |
Consumer Staples |
4.9 |
Energy |
3.8 |
Basic Materials |
3.5 |
Net Current Liabilities |
- |
|
----- |
|
100.0 |
|
===== |
|
|
Country Analysis |
Total Assets
(%) |
Switzerland |
22.3 |
Netherlands |
18.4 |
Denmark |
16.3 |
France |
11.7 |
Sweden |
8.1 |
United Kingdom |
5.7 |
Italy |
4.7 |
Russia |
3.9 |
Finland |
2.0 |
Ireland |
1.9 |
Spain |
1.9 |
Poland |
1.8 |
Greece |
1.0 |
Israel |
0.3 |
Net Current Liabilities |
- |
|
----- |
|
100.0 |
|
===== |
|
|
Top 10 holdings |
Country |
Fund% |
ASML |
Netherlands |
7.4 |
Lonza Group |
Switzerland |
5.5 |
Novo Nordisk |
Denmark |
4.8 |
LVMH Moët Hennessy |
France |
4.7 |
Sika |
Switzerland |
4.7 |
DSV |
Denmark |
4.1 |
RELX |
United Kingdom |
4.0 |
Royal Unibrew |
Denmark |
3.4 |
IMCD |
Netherlands |
3.1 |
Hexagon |
Sweden |
2.9 |
|
Commenting on the markets,
Stefan Gries, representing the
Investment Manager noted:
During the month, the Company’s NAV rose by 5.9% and the share
price by 4.8%. For reference, the FTSE World Europe ex UK Index
returned 3.0% during the period.
Europe ex UK markets rose
during October. After markets appeared to have been driven by
macroeconomic fears around China
and inflation last month, company fundamentals came through again
in October and markets focused on the ongoing Q3 earnings
season.
The Company outperformed its reference index during the month,
mainly driven by strong stock selection, while sector allocation
was also positive.
In sector terms, the Company’s higher allocation to technology
and lower allocation to telecoms and basic materials was positive
for returns. The Company’s overweight exposure to industrials and
consumer services detracted, although this was more than offset by
strong stock selection. A lower allocation to financials was
negative, however again, this was more than offset by accurate
stock selection.
Zero exposure to utilities detracted as the sector saw a relief
bounce following comments from the Spanish government that it would
introduce exemptions to a policy that was originally expected to
claw back about EUR2.6 billion in
revenues from companies that profit from rising power prices.
The health care sector was the largest contributor to relative
returns in October. Towards the end of the month, dental implant
maker Straumann reported strong results, posting 30% organic
revenue growth during the third quarter, driven by continued strong
patient flow. Momentum remains strong across both their premium and
their value ranges with strength coming from all geographies.
Novo Nordisk, the Danish pharmaceutical company focused on
treating diabetes, published a very positive sales update ahead of
its results in early November and raised its full year guidance,
which reinforced our positive view on the long-term prospects of
the company.
Chemicals distributor IMCD was the single largest contributor to
returns during October. While the company had not reported yet,
markets expected solid numbers as the environment for distribution
businesses is extremely supportive given the supply constraints
many industries are facing. On top of that, IMCD continues to
execute strongly.
Strong contribution also came from the Company’s
semiconductor-exposed names including ASMI, ASML and BE
Semiconductor, all aiding returns. These companies benefited from
strong order intake numbers, as current chip shortages fuel the
need to increase capacity to meet demand. On a longer-term view,
these companies benefit from the ongoing digitalisation of everyday
life which translates into significant demand for semiconductor
components. ASMI for example delivered a 4% revenue beat during Q3,
a strong order intake and upgraded Q4 guidance. ASML also reported
strong numbers during the month with Q3 net sales coming in at €5.4
billion which is a year-on-year increase of 32%. Finally, BE
Semiconductor reported orders growing by 4.5% compared to the
previous quarter.
Elsewhere, the Company benefited from a position in French
luxury company Hermes. The group delivered an increase in Q3 sales,
largely driven by a recovery in Europe while the Americas and Asia also contributed. In particular, the
leather goods division grew strongly, not only compared to Q2 but
also compared to last year and 2019 levels.
Negative contributions came from logistics giant DSV
underperforming the market despite lack of stock specific news.
Profit taking and market participants trying to figure out what a
normalisation of the logistics industry might look like led to some
weakness in the shares. Allegro also detracted with the market
continuing to perceive increased competition from the likes of
Amazon and Alipay entering Poland.
We remain encouraged by data we are monitoring which shows no signs
of market share loss that would warrant the share price
reaction.
At the end of the period, the Company had a higher allocation
than the reference index towards technology, industrials, consumer
discretionary, health care and neutral energy. The Company
had an underweight allocation to financials, utilities, consumer
staples, telecoms, real estate and basic materials.
Outlook
We see recent market strength persisting over the coming months,
aided by better virus testing capabilities, a successful vaccine
rollout and a resilient global consumer, alongside continued
accommodative fiscal and monetary policy. This market recovery is
unlikely to be equal across all sectors: some companies still lack
pricing power and are unable to reinstate dividends; others,
however, such as travel exposed stocks, could see a meaningfully
brighter 2022. Inflation may be on the horizon, but rates will
likely remain low. A period of prolonged negative real rates and
higher nominal growth is needed to allow governments globally to
work their way out of the post pandemic debt overhang. We see this
as being a supportive backdrop for equities overall.
19 November 2021
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.