BlackRock Greater Europe Investment Trust
Consistency in philosophy and approach
6 July 2021
BlackRock Greater Europe Investment Trust (BRGE) has a long-term record of outperformance versus its peers and the broad European market. It has two co-managers: Stefan Gries, since June 2017, covering developed European markets (c 90% of the fund); and Sam Vecht, since the trust’s launch in September 2004, covering emerging European markets (c 10% of the fund). While all the trust’s positions are selected following thorough fundamental analysis rather than taking a view on the macro environment, Gries is optimistic about the prospects for an upcoming economic recovery in Europe. So far, its vaccine program has lagged the pace of other regions such as the US and the UK, so there is potential to catch up, and there is a coordinated €750bn EU Recovery Fund in place to be spent on green initiatives, which has not yet been employed. MORE »
Evidence of a successful investment process
16 March 2021
BlackRock Greater Europe Investment Trust (BRGE) has two co-managers: Stefan Gries (since June 2017, developed Europe – c 90% of the fund) and Sam Vecht (since launch in September 2004, emerging Europe – c 10% of the fund). This note focuses on a recent webinar with Gries where he discussed BRGE’s investment strategy, the fund’s 2020 performance and his outlook for Europe and the trust’s prospects. For more information about BRGE please see our latest review, published on 19 November 2020. MORE »
Philosophy and process shining through
19 November 2020
BlackRock Greater Europe Investment Trust (BRGE) has passed an important test, with its investment philosophy and process continuing to deliver despite an unprecedented shock to markets and economic growth. Co-managers Stefan Gries (developed Europe) and Sam Vecht (emerging Europe) remain constructive on the outlook for Europe in 2021; they believe the region is dealing with the coronavirus outbreak better than some other areas and there has been an enormous fiscal and monetary response to the crisis. Although timelines have been pushed out, the managers are confident that a new economic cycle is underway in Europe, a region that is very geared into the health of the global economy. They believe that if the risk premium declines, Europe will become a more investible market, and in the meantime, they are still finding attractive, high-growth companies that are creating long-term value for shareholders. MORE »
Finding new opportunities in the market volatility
4 May 2020
BlackRock Greater Europe Investment Trust (BRGE) is co-managed by Stefan Gries (developed markets) and Sam Vecht (emerging markets). Gries explains that one of their jobs as active investors is to identify parts of the market that will be problematic and therefore will not create value on a multi-year basis. This informs their focus on high-quality growth businesses that can be held for the long term and on avoiding ‘value traps’. Gries believes that ultimately, the coronavirus-led market sell-off will provide a real opportunity for investors to return to Europe, a market that already had a low allocation from global investors. It will benefit from any improvement in the global economy as c 60% of its revenues are generated outside of the region, ‘which makes me quite excited’, he adds. MORE »
Continued outperformance for quality portfolio
7 November 2019
BlackRock Greater Europe Investment Trust (BRGE) is co-managed by Stefan Gries (since June 2017) and Sam Vecht (since launch in 2004). Gries believes that investors do not have to be positive on the prospects for Europe to consider this trust, as it seeks to invest in companies with potential to create shareholder wealth over the medium to long term. He says that investor sentiment towards the region is very negative, which may provide an incremental opportunity when opinions change. Gries remains optimistic about the prospects for BRGE’s portfolio of high-quality companies, based on his assessment that there will be no major economic slowdown or recession in the coming year. MORE »
Exposure to niche, attractively valued companies
24 May 2019
BlackRock Greater Europe Investment Trust (BRGE) has been co-managed by Stefan Gries since June 2017. Since then, there has been a marked improvement in the trust’s investment performance. Gries is constructive on the prospects for the trust, suggesting it provides access to winning franchises in niche, attractively valued companies that ‘just happen to be based in Europe’. In aggregate, BRGE’s portfolio companies have a meaningfully higher return on capital and greater forecast earnings growth compared with the reference index (FTSE World Europe ex-UK), which the trust has outperformed over one, three, five and 10 years. It also offers exposure to the potentially higher-returning emerging markets in Europe. MORE »
Building on the record of outperformance
15 October 2018
BlackRock Greater Europe Investment Trust (BRGE) has two co-managers: Stefan Gries focuses on developed markets in Europe (the large majority of the portfolio), while Sam Vecht focuses on emerging markets. Gries believes that the investment backdrop remains relatively robust, but stresses the importance of remaining selective. He seeks quality companies that can be held for the long term, where their earnings and cash flow potential is not reflected in their current share prices. Since Gries became co-manager in June 2017, BRGE has outperformed the FTSE World Europe ex-UK index by c 12pp. He continues to find attractive investment opportunities, and comments that the broad-based sell-off in emerging markets means there is potential for a higher emerging Europe allocation in the trust’s portfolio in coming months. MORE »
Improved performance under new co-manager
11 April 2018
BlackRock Greater Europe Investment Trust (BRGE) is co-managed by Stefan Gries (appointed on 20 June 2017), who focuses on developed European markets, and Sam Vecht, who focuses on emerging Europe. They aim to generate long-term capital growth from a relatively concentrated portfolio of 35-40 European equities, mostly from developed markets. BRGE’s investment performance has improved following Gries’ appointment, since when the trust has outperformed the FTSE World Europe ex-UK reference index by c 5pp. As well as positive contributions from portfolio companies, both in developed and emerging Europe, BRGE has benefited from not holding some of the larger European companies that have underperformed the broader market. MORE »
Improved performance under new co-manager
11 April 2018
BlackRock Greater Europe Investment Trust (BRGE) is co-managed by Stefan Gries (appointed on 20 June 2017), who focuses on developed European markets, and Sam Vecht, who focuses on emerging Europe. They aim to generate long-term capital growth from a relatively concentrated portfolio of 35-40 European equities, mostly from developed markets. BRGE’s investment performance has improved following Gries’ appointment, since when the trust has outperformed the FTSE World Europe ex-UK reference index by c 5pp. As well as positive contributions from portfolio companies, both in developed and emerging Europe, BRGE has benefited from not holding some of the larger European companies that have underperformed the broader market. MORE »
New co-manager appointed in June 2017
11 August 2017
BlackRock Greater Europe Investment Trust (BRGE) aims to generate capital growth from a relatively concentrated portfolio invested across the greater European region. In June 2017, it was announced that Stefan Gries would replace Vincent Devlin as co-manager. He will continue to adopt BRGE’s flexible bottom-up stock selection approach, drawing on the wider resources of BlackRock’s European and emerging markets equity teams, but is reducing the number of holdings and intends opportunistically to make fuller use of the emerging European allocation. The trust is referenced against the FTSE World Europe ex-UK index and its NAV total return has outperformed over three and 10 years and is broadly in line over five years, while lagging over the last 12 months. Although the primary aim is capital growth, BRGE has a progressive dividend policy. Its current dividend yield is 1.7%, which is in line with its peer group average. MORE »
Finding attractive investment opportunities
10 November 2016
BlackRock Greater Europe Investment Trust (BRGE) invests in continental European equities across the market cap spectrum; it is a concentrated portfolio and up to 25% may be invested in companies listed in developing European markets. The primary aim is long-term capital growth; however BRGE has a progressive dividend strategy – ordinary dividends have increased in every year since fund launch in 2004. Despite modest economic growth and political uncertainties in the region, managers Vincent Devlin and Sam Vecht continue to identify attractive investment opportunities. Following significant fund outflows from European equities, any change in investor sentiment would be supportive for the asset class. MORE »
Intensively researched stock selection
21 March 2016
BlackRock Greater Europe Investment Trust (BRGE) invests primarily in developed European equites across the capitalisation spectrum, with the primary aim of achieving long-term capital growth. Up to 25% of the trust may be invested in developing European markets (currently c 5%). The portfolio is concentrated, typically holding between 45 and 65 securities. Vincent Devlin (developed Europe) and Sam Vecht (emerging Europe) have managed BRGE since July 2008 and fund inception respectively. It has outperformed the benchmark FTSE World Europe ex-UK index over one, three, five and 10 years and the dividend has been increased each year since the trust’s inception in 2004; the current dividend yield is 2.0%. MORE »
