Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 May 2015 and unaudited.

Performance at month end with net income reinvested

One

Three

One

Three

Launch

Month

Months

Year

Years

(20 Sep 04)

Net asset value* (undiluted)

0.2%

4.9%

6.1%

67.1%

223.1%

Net asset value* (diluted)

0.2%

4.2%

5.5%

65.5%

220.1%

Share price

0.6%

7.7%

4.6%

70.5%

213.4%

FTSE World Europe ex UK

-0.2%

2.8%

4.7%

70.2%

156.5%

Sources: BlackRock and Datastream

At month end

Net asset value (capital only):

261.43p

Net asset value (including income):

264.67p

Net asset value (capital only)*:

259.24p

Net asset value (including income)*:

261.96p

Share price:

255.00p

Discount to NAV (including income):

3.7%

Discount to NAV (including income)*:

2.7%

Subscription share price:

19.00p

Net gearing:

2.4%

Net yield**:

1.9%

Total assets (including income):

£285.8m

Ordinary shares in issue***:

105,743,866

Subscription shares:

20,565,777

Ongoing charges****:

0.94%

* Diluted for subscription shares and treasury shares. ** Based on a final dividend of 3.20p for the year ended 31 August 2014 and an interim dividend of 1.65p per share for the year ending 31 August 2015. *** Excluding 5,561,653 shares held in treasury. **** Calculated as a percentage of average net assets and using expenses, excluding performance fees and interest costs, after relief for taxation for the year ended 31 August 2014.

Sector Analysis

Total Assets

Country Analysis

Total Assets

(%)

(%)

Financials

34.4

France

18.6

Industrials

18.9

Switzerland

15.5

Consumer Goods

13.0

Italy

11.4

Health Care

8.6

Netherlands

8.7

Consumer Services

8.3

Germany

8.4

Technology

6.5

Sweden

8.2

Basic Materials

4.0

Ireland

7.3

Utilities

2.5

Denmark

5.5

Telecommunications

2.0

Spain

4.6

Oil & Gas

2.0

Belgium

3.6

Net current liabilities

(0.2)

Finland

3.1

-----

Turkey

2.8

100.0

Russia

2.5

=====

Net current liabilities

(0.2)

-----

100.0

=====

Ten Largest Equity Investments

% of

Company

Country

Total Assets

Novartis

Switzerland

5.3

Novo-Nordisk

Denmark

4.7

KBC Groep

Belgium

3.6

Banco Santander

Spain

3.1

Bayer

Germany

2.8

ASML

Netherlands

2.8

LVMH Moët Hennessy

France

2.7

AXA

France

2.7

Heineken

Netherlands

2.5

Enel

Italy

2.5

Commenting on the markets, Vincent Devlin, representing the Investment Manager noted:

During the month, the Company’s NAV rose by 0.2% and the share price increased by 0.6%. For reference, the FTSE World Europe ex UK Index was down 0.2% during the period.

European markets posted positive returns in May, as the effects of ECB quantitative easing continued. Market leadership came from the information technology sector, with utilities and telecoms also performing. As commodities retraced their strong April and concerns resurfaced about the pace of fixed capital formation in China, the materials, industrials and energy sectors lagged. European macro-economic data continued to develop positively overall, with PMI's gaining, led by the periphery and solid GDP numbers. Continuing expectations of a US rate hike and Mario Draghi’s reiterated call for Eurozone countries to reform their economies, helped the Euro fall from a mid-month peak of 1.145 against the US dollar.

Stock selection drove the Company’s performance in May, when compared with the reference index, with sector allocation also additive. The Company’s very low exposure to the oil & gas sector contributed to returns as this sector resumed the downward momentum seen earlier in the year; however, with concerns over capital expenditure in China, the Company’s higher exposure to the industrials sector detracted from returns.

Ryanair performed well during the month after delivering strong full year results and positive forward guidance. Results show forward bookings for the summer are running 4% ahead of last year and revenues per seat up 6%, indicating the relative success of the brand’s new corporate strategy. Despite the financial sector being flat over the month, with underwhelming Q1 results announced from a number of Spanish, German and French banks, the Company saw stock specific returns from a number of positions within the sector. KBC Groep and Intesa realised gains amid strong Q1 results. Not holding Syngenta detracted from performance as the share price rallied 15% during the month on news of a bid from Monstanto.

At the end of the period, the Company had higher weightings when compared with the reference index to financials, consumer services, technology, industrials and health care. The Company had lower exposure to basic materials, consumer goods, telecoms, oil & gas and utilities.

Outlook

European equities have performed strongly since the beginning of the year, driven by the tailwinds coming from the supportive ECB action, the depreciation of the Euro and the lower oil price. After seven years of underperformance relative to the S&P, we believe European equities have the market conditions to support sustained outperformance this year. Not only have we seen a pick-up in economic data in the region with consumer confidence increasing, unemployment falling and PMI’s remaining well above 50, we have also seen 1Q 2015 reported earnings surprise on the upside, leading to earnings revisions turning positive for the first time since early 2010. Although momentum remains strong in Europe in our view, it is worth bearing in mind that markets are likely to remain volatile, with the recent bond sell-off being a good reminder of this and with the uncertainty around the Greek negotiations being the nearer term source of potential further volatility. Active management and careful stock-picking will remain critical in the current market context in our view, given that Europe continues to offer a number of companies with attractive valuations, superior dividend yields and potentially significant upside potential.

15 June 2015

ENDS

Latest information is available by typing www.brgeplc.co.uk on the internet, "BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV terminal).  Neither the contents of the Manager’s website nor the contents of any website accessible from hyperlinks on the Manager’s website (or any other website) is incorporated into, or forms part of, this announcement.