BlackRock Greater Europe (BRGE)

BlackRock Greater Europe (BRGE) owns a concentrated portfolio of c. 30-40 European companies designed to generate capital growth, with the top ten stocks making up c. 50% of the whole. With a bias toward quality growth companies, BRGE predominantly focusses on large-cap companies, although the investment mandate leaves scope to invest across the market-cap spectrum. Investing with the expectation of owning companies for many years, BRGE’s long-term outperformance has been driven by its focus on key European sectors such as healthcare, semiconductors, and luxury goods.

BRGE's five-year NAV total return of c. 72% is significantly ahead of the benchmark’s c. 59% and the peer group's c. 54%. Under manager Stefan Gries’ tenure, the trust's NAV total return is c. 123% compared to the benchmark's c. 70%. However, over the last year, the NAV has lagged the benchmark, essentially due to low exposure to European banks, which have performed well. Stefan has managed BRGE since June 2017 and has been with BlackRock since 2008. Co-manager Alexandra Dangoor was appointed in 2023, having worked in BlackRock’s European equity team since 2019.

Gearing was reduced during more volatile markets in 2022 and 2023 and increased back up to c. 10% over the course of 2024 as a sign of the team’s growing confidence in the portfolio, matched by rising markets.

BRGE trades at one of the narrowest discounts in the peer group, currently c. 6%. This is likely a consequence of BRGE's long-term outperformance as well as the board’s active use of share buybacks, which we chart in the Discount section. BRGE yields c. 1.1%, and while the trust is primarily a capital growth vehicle, the dividend has increased for the last 18 years and the trust is part of the AIC's next generation of dividend heroes.

BRGE has a 'Growth' rating under Kepler's rating system.