UK markets open in 4 hours 48 minutes
  • NIKKEI 225

    27,679.84
    -546.24 (-1.94%)
     
  • HANG SENG

    18,660.34
    -76.10 (-0.41%)
     
  • CRUDE OIL

    81.32
    +0.10 (+0.12%)
     
  • GOLD FUTURES

    1,811.90
    -3.30 (-0.18%)
     
  • DOW

    34,395.01
    -194.76 (-0.56%)
     
  • BTC-GBP

    13,830.31
    -239.67 (-1.70%)
     
  • CMC Crypto 200

    401.01
    -5.14 (-1.27%)
     
  • ^IXIC

    11,482.45
    +14.45 (+0.13%)
     
  • ^FTAS

    4,141.04
    +1.39 (+0.03%)
     

BlackRock Greater Europe Investment Trust Plc - Results analysis from Kepler Trust Intelligence

BlackRock Greater Europe (BRGE)

10/11/2022

Results analysis from Kepler Trust Intelligence

BRGE’s annual results for the year ending 31/08/2022 show a decline in NAV on a total return basis of 29.2% and a share price total return decline of 33.4%. This represents underperformance of the FTSE World Europe ex UK Index (the reference index), which fell by 11.5%. While BRGE has a strong long-term track record of outperformance, in the last financial year its portfolio suffered due to a write-down in Russian stocks after the invasion of Ukraine and a sell-off in long duration growth stocks, as well as a few stock specific issues.

Chairman of the board Eric Sanderson commented: “European equities continue to trade at a discount to global peers, providing attractive investment opportunities for our portfolio managers. The company’s portfolio is also weighted towards companies with well capitalised balance sheets and exceptional businesses that are able to adapt to the shifting market dynamics.”

Kepler View

Stefan Gries and Sam Vecht have a well-defined long-term investment strategy which has served BRGE shareholders well over the long term – in the five years to 31/08/2022 the trust has outperformed the reference index by 26% cumulatively (in NAV total returns). The sell off over the past year has to be seen in this context, and the managers remain committed to their approach. They highlight that operationally most of their long duration growth businesses have been performing well, and what has shifted is market sentiment and the valuation investors are willing to pay for growth.

The managers highlight that many of the best-in-class companies they own are trading at depressed valuations not seen in years, and we note BRGE’s own shares trade on a discount of 5.2% at the time of writing. After such a significant sell off we think the share price is looking increasingly attractive as a potential long-term entry point for those with a long-term view…

CLICK HERE TO READ THE FULL REPORT

Visit http://www.trustintelligence.co.uk/investor for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm’s internal rules. A copy of the firm’s Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.