BLACKROCK GREATER EUROPE INVESTMENT TRUST PLC: Portfolio Update
BLACKROCK GREATER EUROPE INVESTMENT TRUST plc All information is at 28 February 2013 and unaudited.
Performance at month end with net income reinvested
One Three One Three Since launch
Month Months Year Years (20 Sep 04) Net asset value (Undiluted) 3.4% 15.8% 26.5% 40.3% 167.8% Net asset value (Diluted) 3.4% 15.8% 26.9% 40.3% 167.9% Share price 4.2% 18.4% 24.6% 47.0% 161.4% FTSE World Europe ex UK 1.4% 13.1% 18.6% 21.7% 105.7% Sources: BlackRock and DataStream
At month end Net asset value (capital only): 229.47p Net asset value (including income): 230.07p Net asset value (capital only)*: 229.47p Net asset value (including income)*: 230.07p Share price: 223.50p Discount to NAV (including income): 2.9% Discount to NAV (including income)*: 2.9% Gearing: 0.5% Net yield: 1.9% Total assets (including income): £269.0m Ordinary shares in issue**: 116,285,355
* Diluted for treasury shares. ** Excluding 6,052,299 shares held in treasury.
Benchmark Sector Analysis Total Assets (%) Index (%) Country Analysis Total Assets (%)
Consumer Goods 21.3 19.5 Switzerland 24.6 Health Care 16.0 13.0 Germany 24.3 Financials 15.1 20.8 France 19.9 Basic Materials 15.0 8.4 Denmark 6.0 Industrials 13.0 15.4 Russia 5.6 Consumer Services 8.2 5.3 Belgium 4.9 Technology 5.8 3.7 Netherlands 4.8 Oil & Gas 4.0 6.2 Finland 2.6 Telecommunications 2.5 3.7 Ireland 2.3 Utilities - 4.0 Portugal 2.2 Net current liabilities (0.9) - Hungary 1.6
----- ----- Sweden 1.5 100.0 100.0 Other 0.6
===== ===== Net current liabilities (0.9)
----- 100.0 ===== Ten Largest Equity Investments (in alphabetical order) Company BASF Germany Cie Financière Richemont Switzerland Continental Germany Novo Nordisk Denmark Pernod Ricard France Roche Switzerland Sanofi France Schneider Electric France Swiss Re Switzerland Zurich Insurance Switzerland Commenting on the markets, Vincent Devlin, representing the Investment Manager noted: During the month, the Company's NAV rose by 3.4% and the share price increased by 4.2%. For reference, the FTSE World Europe ex UK Index rose 1.4% during the same period. European markets concluded February with the benchmark reporting a ninth straight monthly gain. However, the month was characterized by a rise in political uncertainties around the Italian elections and contributed to an overall "risk-off" mood. A divergence in performance has been seen mostly between countries with the political stalemate in Italy sending the FTSE MIB Index down by over 9% (EUR terms). Both stock selection and sector allocation drove returns during February. The decision to mostly avoid telecoms proved successful as the sector continued to underperform (-7% in the month). Lower weightings to oil & gas, financials and utilities also proved successful when comparing returns with the reference index. At a stock level, positions in industrials fared best, especially through holdings in Finnish elevator and escalator company Kone and French electrical engineer Schneider Electric. Within autos, a holding in Renault performed well after reporting robust numbers against a backdrop of very weak European car sales. We view Renault as an interesting opportunity on a depressed valuation, especially taking into account its solid dividend and the performance of its Dacia brand. Elsewhere, the Company benefited from a holding in German airline Deutsche Lufthansa, which offers significant potential for earnings progression over the coming years. A position in PernodRicard rose after reporting good numbers, supported by strong cognac shipment in January in China. Less successful positions included a holding in Telefonica Deutschland, which fell despite reporting solid cash flows and announcing a 45c dividend, giving a 7.7% dividend yield. At the end of the month, the Company had higher weightings (when compared with the reference index) in basic materials, consumer goods, consumer services, technology and health care and lower weightings in oil & gas, industrials, utilities, financials and telecoms. Outlook After a trough in activity in the summer of 2012, global leading economic indicators have been improving across the US, Europe and China and the outlook for 2013 looks brighter than for 2012. This background is supportive for equities. Macro momentum remains supportive, with leading indicators continuing to improve. Earnings growth profile for European companies remains supportive, although the recent FX moves could put pressure on our 9% earnings growth prediction. Investor positioning remains low versus history, even if flows have been coming into the asset class. 14 March 2013 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. -0- Mar/14/2013 11:55 GMT