Blackrock Greater Europe reports "disappointing" return for first half

Wed, 20th May 2026 14:59

(Alliance News) - Blackrock Greater Europe Investment Trust PLC on Wednesday reported an unchanged dividend and improved first-half total return, although this "significantly underperformed" the benchmark.

The investment trust focused on small, mid and large-cap European companies reported a net asset value per share of 635.95 pence as at February 28, up 6.3% from 598.05p at August 31.

The stock was up 0.4% at 559.00p on Wednesday afternoon in London.

Blackrock Greater Europe's NAV total return was plus 7.3% for the six months ended February 28, compared with 0.1% for the previous year.

Its reference index, the FTSE World Europe ex UK, generated a plus 17.3% total return, improved from 4.6%.

The trust declared an interim dividend of 1.75p per share, unchanged from the year before.

Saying the firm's NAV "significantly underperformed" the benchmark, Chair Andrew Impey said: "This disappointing outcome reflected, in part, a continuation of the underperformance of quality growth stocks and market performance being led by a narrow set of stocks. Stock selection was also a contributing factor."

Impey noted that "the background has been difficult for an unusually extended period," saying that while Europe started this year with strong momentum, the outlook for equity markets has become more cautious following the outbreak of the Middle East conflict.

"Higher energy prices present a challenge for Europe, given its dependence on imported energy...While recession fears currently remain contained, expectations for stronger economic growth have weakened, though valuations, which in many cases remain close to or below long-term averages, continue to provide some support," Impey continued.

He added that short-term volatility "is likely to persist".

BlackRock Greater Europe said it benefitted from its lack of a Novo Nordisk holding after its obesity drug trial "failed to show superior results". European banks like Allied Irish Banks (AIB) and Caixabank, meanwhile, "generated strong returns" and "valuations remain attractive".

"BE Semiconductor was one of the strongest contributors to performance, as semiconductor companies benefited from rising demand linked to AI investment," the trust said. It also noted that it increased its ASML stake, "as we believe the semiconductor industry is entering a new growth cycle with potential for earnings to exceed current expectations."

However, BlackRock Greater Europe noted that Relx PLC, Nemetschek SE and SAP SE "were all caught up in the ‘AI-loser’ narrative".

"With the consumer remaining under pressure and key brands facing pricing challenges, we believe it is important to look beyond traditional consumer defensive sectors for resilient earnings," commented BlackRock Investment Management (UK) Ltd's Benjamin Moore and Brian Hall. "Instead, we have favoured Industrials supplying critical services, with recurring income often through aftermarket and maintenance programmes."

By Emma Curzon, Alliance News reporter

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