Last checked at 14 Dec 2022 07:30
London, UK, 14 December 2022
Edison issues update on BlackRock Greater Europe Investment Trust (BRGE)
BlackRock Greater Europe Investment Trust's (BRGE) manager Stefan Gries (developed markets, c 95% of the fund) is continuing with his successful long-term approach of being 'an investor in businesses rather a trader in shares'. He believes that stock market volatility will persist as the extended period of low interest rates has come to an end, with central banks tightening monetary policy in response to higher inflation. The manager is confident about the earnings prospects for the fund's investee companies, which he suggests are underestimated by the market. While BRGE's performance in 2022 has been negatively affected by the focus on macroeconomic events rather than company fundamentals, the trust has a commendable medium- and longer-term record. Its NAV total return ranks first in the AIC Europe sector over the last five and 10 years, and second over the last three years.
In Q122, BRGE moved from trading at a premium to a discount. This is not unsurprising as in general, investment trust valuations have declined this year during a period of above-average investor risk aversion. Given its medium- and longer-term outperformance, over time BRGE could return to a premium valuation. Its 5.2% share price discount to cum-income NAV is wider than the 2.0% to 3.5% range of average discounts over the last one, three, five and 10 years.
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