Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc

All information is at 30 SEPTEMBER 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)

-2.3%

-2.4%

5.8%

38.6%

200.4%

Net asset value* (diluted)

-2.1%

-2.1%

5.8%

39.6%

200.6%

Share price

-3.3%

-3.4%

7.1%

39.4%

190.1%

FTSE World Europe ex UK

-3.2%

-4.6%

-1.2%

34.6%

130.9%

Sources: BlackRock and Datastream

At month end

Net asset value (capital only):

242.43p

Net asset value (including income):

246.01p

Net asset value (capital only)*:

242.43p

Net asset value (including income)*:

246.01p

Share price:

236.00p

Discount to NAV (including income):

4.1%

Discount to NAV (including income)*:

4.1%

Subscription share price:

10.25p

Net gearing:

0.2%

Net yield**:

2.1%

Total assets (including income):

£257.1m

Ordinary shares in issue***:

104,309,663

Subscription shares:

20,545,178

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 5,488,898 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

31.7

France

20.6

Industrials

17.6

Switzerland

14.9

Health Care

12.3

Italy

11.5

Consumer Services

9.8

Germany

11.1

Consumer Goods

8.4

Netherlands

7.9

Technology

7.6

Sweden

7.8

Telecommunications

4.0

Ireland

6.5

Basic Materials

3.8

Denmark

5.9

Utilities

2.5

Finland

5.4

Oil & Gas

1.9

Belgium

2.9

Net current assets

0.4

Turkey

2.1

-----

Spain

1.7

100.0

Russia

1.3

=====

Net current assets

0.4

-----

100.0

=====

Ten Largest Equity Investments

% of

Company

Country

Total Assets

Novartis

Switzerland

5.3

Novo Nordisk

Denmark

4.9

Bayer

Germany

3.8

AXA

France

3.7

LVMH Moët Hennessy

France

2.9

KBC Groep

Belgium

2.8

Deutsche Telekom

Germany

2.7

Ryanair

Ireland

2.7

Zurich Insurance Group

Switzerland

2.6

Heineken

Netherlands

2.6

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

During the month, the Company’s NAV fell by 2.3% and the share price decreased by 3.3%. For reference, the FTSE World Europe ex UK Index was down 3.2% during the period.

European equity markets fell again in September. The market is down almost 11% since its peak in April. The market was led down by especially poor performance in banks, basic resources and autos as a combination of stock-specific issues (such as the news that Volkswagen had used a ‘cheat’ device on their diesel cars) and concerns over a slowdown in China dented sentiment. Weakness in basic resources was exacerbated by China’s manufacturing PMI (Purchasing Manager’s Index) hitting a three-year low. Monetary policy remained loose in developed markets, with the Federal Reserve further delaying a potential rate hike and the European Central Bank continuing its Quantitative Easing programme. Despite concerns over Chinese growth, economic data for Europe remained steady as signalled by both Eurozone manufacturing PMI’s and the German business confidence indicator.

Stock selection drove performance in September, with sector allocation marginally detracting. On a sector basis, the Company saw the greatest returns through exposure to the technology and consumer services sectors. A lower exposure relative to the index in consumer goods detracted from returns, as investor capital flowed into this ‘defensive’ sector in response to global growth concerns.

Ryanair contributed strongly to returns as they raised their net income guidance for the full year by 25%. In addition, the share price responded positively to the news that the proceeds from the sale of Aer Lingus would be distributed to shareholders in the near term. Avoiding VW, which saw its share price plunge by over 40% in reaction to the company’s emissions scandal, was also beneficial to relative performance.

Luxury names LVMH and Luxottica also contributed to performance, beginning to bounce back from a seemingly oversold position in August. Avoiding Banco Santander continued to benefit the Company. The share price fell as it experienced downgrades following a cautious tone on targets delivered at their investor day.

Not holding Nestlé, which makes up over 4% of the index, detracted from returns. The share price increased as investors fled to safety. Zurich Insurance was also a negative contributor to returns. Confidence in management was weakened when the decision to walk away from the RSA deal was announced. Additionally, some concerns surrounding the non-life business and losses sustained in this area have grown. We believe, however, that this stock continues to exhibit an attractive and secure dividend yield and has a strong capital position. Türkiye Halk Bankasi also detracted as heightened investor concerns around the implications of a US rate hike and domestic political uncertainty was reflected in the share price.

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

Outlook

Despite the uncertainties and worries which have dominated the market since the summer, we remain constructive on European equities. Recent European leading indicators suggest that the European economy has a degree of resilience in the face of increased concerns over a global slowdown. The European Commission's Economic Sentiment Indicator (ESI), Business Climate, Industrial Confidence and Services Confidence indicators have all showed signs of progress in September, defying expectations of a decline. For companies with more domestic exposure, European equity earnings momentum remains robust. The European Central Bank’s programme of Quantitative Easing remains in place and is having a positive impact on the credit cycle and European GDP growth. Over the long term, we continue to believe that the corporate earnings and cash generation of companies are the key drivers of equity returns.

14 October 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.