(Alliance News) - BlackRock Greater Europe Investment Trust PLC on Tuesday said its net asset value per share rose in its most recent financial year, with now-exited state-owned Russian financial services firm PJSC Sberbank proving the top performing position during the period.
As at August 31, the investor's NAV per share stood at 399.52 pence, up 4.5% from 382.17p year-on-year.
With dividends reinvested, the rise was a sharper 6.3%. While Blackrock Greater Europe does not have a benchmark it does review its "performance in the context of the performance of the FTSEWorld Europe ex UK Index" which rose 4.8% in the year.
Investment managers Stefan Gries and Sam Vecht said: "Sberbank was the top performing position in the portfolio over the period. We had initiated the holding on the expectation that the earnings revision cycle was underestimated by the market. Following easing of sanctions towards Russia and realisation of improving earnings the stock rallied. As it reached what we deemed to be its fair value, we exited the position."
Other strong performers were Royal Unibrew AS, Ferrari NV, and Adidas AG.
BlackRock Greater Europe has proposed a final 4.10p per share dividend, up from 4.0p, lifting the total dividend for the year by 1.7% to 5.85p per share from 5.75p per share.
Chair Eric Sanderson said: "The near-term outlook for markets remains uncertain with concerns that the global trade wars could escalate or broaden to Europe and other economies, hitting market sentiment and leading to an extended lull in major economies thus weighing on global growth. The impact of the ongoing Brexit negotiations also continues as a risk on the horizon. However, the decisively dovish stance by the ECB should provide a tailwind and help to mitigate any potential negative effects that may arise.
"The company's portfolio managers will continue to position the portfolio to focus on quality companies with strong cash flows and the ability to grow to create value for shareholders over the long term."
Shares in BlackRock Greater Europe closed up 0.7% at 371.45p in London on Tuesday.
By Anna Farley; annafarley@alliancenews.com
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BlackRock Greater Europe Investment Trust (BRGE)