BlackRock Greater Europe (BRGE)

29/10/2020

Final results analysis from Kepler Trust Intelligence

BlackRock Greater Europe (BRGE) released its annual results for the year ending 31 August last week. During the period the NAV of the trust rose 16.9%, considerably outperforming its benchmark, the FTSE World Europe ex UK Index, which returned 0.7%. Over the same period, the share price rose 18.0%, with the discount narrowing to 4.6%.

Kepler View

Looking over the longer term, BRGE is a standout trust for investors searching for European exposure in our opinion. As we discuss in our recent research note, the manager Stefan Gries has an extensive track record, with returns increasingly driven by the more concentrated high-conviction approach he has progressively been taking. A key part of the trust's success, particularly throughout 2020, appears to us to have been Stefan's emphasis on the sustainability of cash returns and the unique business franchises he invests in.

As we discuss in the full report, the outlook for Europe also continues to be attractive and Stefan believes that "the European market remains home to many exceptional businesses that have and will continue to provide compelling investment opportunities regardless of the wider economic outlook".

Currently the trust is trading at a discount of 4.6%, one of the narrowest discounts in the sector. However, this is still wider than the trust's one year average, potentially offering an attractive entry point in our opinion.

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