| BLACKROCK GREATER
EUROPE INVESTMENT TRUST plc |
|
| All information is at
30 NOVEMBER 2015 and unaudited. |
|
|
|
| Performance at month
end with net income reinvested |
|
|
One |
Three |
One |
Three |
Launch |
|
|
Month |
Months |
Year |
Years |
(20 Sep
04) |
|
| Net asset value*
(undiluted) |
2.3% |
3.5% |
6.9% |
37.5% |
218.2% |
|
| Net asset value*
(diluted) |
2.2% |
3.1% |
6.2% |
36.8% |
216.6% |
|
| Share price |
1.3% |
2.2% |
7.9% |
38.8% |
206.5% |
|
| FTSE World Europe ex
UK |
0.8% |
2.5% |
0.2% |
34.4% |
144.4% |
|
| Sources: BlackRock
and Datastream |
|
|
|
| At month
end |
|
| Net asset value (capital
only): |
257.27p |
|
| Net asset value
(including income): |
257.18p |
|
| Net asset value (capital
only)*: |
255.74p |
|
| Net asset value
(including income)*: |
255.67p |
|
| Share price: |
246.00p |
|
| Discount to NAV
(including income): |
4.3% |
|
| Discount to NAV
(including income)*: |
3.8% |
|
| Subscription share
price: |
10.40p |
|
| Net gearing: |
1.5% |
|
| Net yield**: |
2.0% |
|
| Total assets (including
income): |
£268.3m |
|
| Ordinary shares in
issue***: |
104,312,765 |
|
| Subscription
shares: |
20,542,076 |
|
| Ongoing
charges****: |
0.89% |
|
|
|
|
* Diluted
for subscription shares and treasury shares.
** Based on a final dividend of 3.35p and an interim dividend of
1.65p per share for the year ended 31 August 2015.
*** Excluding 5,488,898 shares held in treasury.
**** Calculated as a percentage of average net assets and using
expenses, excluding performance fees and interest costs, after
relief for taxation for the year ended 31 August 2015. |
|
| Sector Analysis |
Total
Assets |
|
Country
Analysis |
Total
Assets |
|
(%) |
|
|
(%) |
|
|
|
|
|
| Financials |
29.6 |
|
France |
18.6 |
| Industrials |
18.0 |
|
Switzerland |
15.6 |
| Health Care |
14.5 |
|
Germany |
13.7 |
| Consumer Goods |
12.7 |
|
Italy |
8.5 |
| Consumer Services |
8.9 |
|
Netherlands |
8.5 |
| Technology |
8.2 |
|
Sweden |
8.3 |
| Telecommunications |
4.0 |
|
Denmark |
7.7 |
| Basic Materials |
3.9 |
|
Ireland |
7.4 |
| Oil & Gas |
1.7 |
|
Finland |
4.8 |
| Net current liabilities |
(1.5) |
|
Belgium |
2.7 |
|
----- |
|
Turkey |
2.3 |
|
100.0 |
|
Spain |
1.7 |
|
===== |
|
Russia |
1.7 |
|
|
|
Net current
liabilities |
(1.5) |
|
|
|
|
----- |
|
|
|
|
100.0 |
|
|
|
|
===== |
|
|
|
|
|
| Ten Largest Equity
Investments |
|
|
|
%
of |
|
| Company |
Country |
Total
Assets |
|
|
|
|
|
| Novo Nordisk |
Denmark |
4.8 |
|
| Novartis |
Switzerland |
4.8 |
|
| AXA |
France |
4.0 |
|
| Bayer |
Germany |
3.9 |
|
| Heineken |
Netherlands |
2.8 |
|
| Deutsche Telekom |
Germany |
2.7 |
|
| RELX |
Netherlands |
2.6 |
|
| Ryanair |
Ireland |
2.6 |
|
| Capgemini |
France |
2.5 |
|
| Sampo Oyj |
Finland |
2.5 |
|
|
|
|
|
| Commenting on the
markets, Vincent Devlin, representing the Investment Manager
noted: |
|
| During the month, the
Company’s NAV rose 2.3% and the share price rose by 1.3%. For
reference, the FTSE World Europe ex UK Index was up 0.8% during the
period. |
|
| European equity markets
gained in November, although returns in sterling were moderated by
a weak Euro. The market was boosted by a combination of solid
economic data (Euro-area composite Purchasing Manager’s Index
touched 54) and anticipation of further stimulatory measures from
the European Central Bank in December’s governing council meeting.
Indeed, a further 4% weakening of the Euro against the dollar – a
net positive for European corporate earnings – was perhaps the most
notable movement in the month as prominent ECB council members
referenced the low inflation rate in the run up to the meeting. On
a sector basis, autos & parts performed best along with
industrials, but basic resources and real estate lagged the broad
market. |
|
| Stock selection drove
the Company’s performance when compared with the reference index
during November, whilst the contribution from sector allocation was
flat. The gains incurred on a sector basis from the Company’s lower
weight to utilities, were offset by the losses from the higher
weighting to the financials sector. A lower weighting to the oil
& gas sector also negatively impacted performance as the
commodities complex saw some relief at the onset of the month. |
|
| Pharmaceutical and
health care equipment and services names featured highly amongst
top contributors. Whilst holdings in Novo Nordisk and William
Demant performed strongly, driven by solid trial data and
acquisition actions respectively, not holding Sanofi proved the
largest relative contributor over the month. The stock fell almost
10% on the back of a profit warning. |
|
| Holdings in a number of
industrial names also provided positive returns. Kingspan exhibited
strong performance following expectations from management that full
year trading profits for 2015 would be 7-8% ahead of
consensus. Additionally, Assa Abloy and Saft Groupe
contributed positively, the latter rallying 20% with the
announcement of a capital repurchase programme. |
|
| The Company saw
detractions from LVMH on the back of weak trading in the US. Travel
provider Tui and Aeroports De Paris also detracted from performance
amid the heightened terror alerts across Europe following the
tragic attacks in Paris. |
|
| At the end of the
period, the Company had higher weightings when compared with the
reference index to financials, technology, consumer services,
industrials and health care. The Company had lower exposure to
consumer goods, basic materials, oil & gas, utilities and
telecoms. |
|
| Outlook |
| Despite an overall
disappointing third quarter earnings reporting season, we remain
constructive on European equities which are showing a degree of
resilience in the face of divergence of monetary policy cycles
between the US and Europe. The incremental support from the ECB,
through expansion of the current Quantitative Easing programme,
will in our view have a further positive impact on European GDP
growth and the credit cycle. However, one question mark remains
over earnings growth next year which we forecast to be mid-to-high
single digit level, still impacted by energy and materials sectors
but benefiting from the Euro weakness. European valuations are not
as attractive as they were twelve months ago, and we believe that
we need to see the earnings coming through to drive further
meaningful upside next year. In our view, a weak Euro,
subdued wage growth and expanding domestic credit should all
support corporate earnings in 2016 in Continental Europe. In this
context, stock selection remains critical and we remain of the view
that consumers will continue to lead the recovery globally,
specifically in Europe where domestic companies fared better this
year overall. |
|
| 15 December 2015 |
|
| ENDS |
|
| Latest information is
available by typing www.brgeplc.co.uk on the internet, "BLRKINDEX"
on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager’s website nor
the contents of any website accessible from hyperlinks on the
Manager’s website (or any other website) is incorporated into, or
forms part of, this announcement. |