Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 AUGUST 2015 and unaudited.

Performance at month end with net income reinvested

One Month

Three Months

One Year

Three Years

Launch (20 Sep 04)

Net asset value (undiluted)

-4.7%

-4.9%

7.9%

44.7%

207.5%

Net asset value (diluted)

-3.9%

-4.1%

7.6%

44.9%

206.9%

Share price

-3.0%

-4.3%

9.1%

49.9%

199.9%

FTSE World Europe ex UK

-5.6%

-7.0%

1.3%

41.3%

138.5%

Sources: BlackRock and Datastream

At month end

Net asset value (capital only):

248.16p

Net asset value (including income):

251.82p

Net asset value (capital only)*:

248.13p

Net asset value (including income)*:

251.19p

Share price:

244.00p

Discount to NAV (including income):

3.1%

Discount to NAV (including income)*:

2.9%

Subscription share price:

12.63p

Net cash:

0.4%

Net yield**:

2.0%

Total assets (including income):

£262.7m

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 ended 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

31.5

France

18.8

Industrials

15.3

Switzerland

15.6

Health Care

12.5

Netherlands

11.8

Consumer Goods

11.8

Italy

11.3

Consumer Services

9.1

Germany

10.3

Technology

7.3

Sweden

7.9

Basic Materials

3.9

Ireland

6.4

Telecommunications

3.8

Denmark

5.8

Utilities

2.5

Belgium

3.9

Oil & Gas

1.9

Finland

2.4

Net current assets

0.4

Turkey

2.3

-----

Spain

1.9

100.0

Russia

1.2

=====

Net current assets

0.4

-----

100.0

=====

Ten Largest Equity Investments

Company

Country

% of Total Assets

Novartis

Switzerland

5.5

Novo Nordisk

Denmark

4.9

Bayer

Germany

3.9

KBC Groep

Belgium

3.9

AXA

France

2.9

Zurich Insurance Group

Switzerland

2.9

LVMH Moët Hennessy

France

2.8

Ryanair

Ireland

2.6

Intesa Sanpaolo

Italy

2.5

Unibail-Rodamco

France

2.5

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

During the month, the Company’s NAV fell by 4.7% and the share price decreased by 3.0%. For reference, the FTSE World Europe ex UK Index was down 5.6% during the period.

In August, global equity markets fell sharply reflecting an extreme risk aversion. European indices recorded the worst monthly performance since August 2011, with the FTSE World Europe ex UK Index falling by 5.6%. All major sectors declined during the month, with not much discrimination, but nevertheless with commodity related sectors performing the worst. The market sell-off was triggered by the fear of a sharp economic slowdown in China, with concerns about broader weakness in emerging markets Asia-Pacific. Markets also experienced higher levels of volatility in the month with the VIX hitting an intra-month high at approximately 40 having started the month around 12, reflecting the extent of the risk aversion that has built into the market in a short period of time.

Stock selection drove performance in August, with sector allocation marginally additive. On a sector basis, the Company saw the greatest returns through its lower exposure to basic materials, as the sector was hit especially hard as fears over China and emerging market growth prospects and market stability increased. A greater exposure to consumer services also proved beneficial.

Travel sector stocks Ryanair and Tui contributed to returns over the month. The latter experienced a solid beat on earnings and improved estimates on earnings growth. Primarily, this was driven by the hotels and cruise divisions as well as strong tour operator numbers in the UK and Nordics. As uncertainty over the Greek political situation subsided, the company also reported a recovery in Greek holiday bookings.

The Company also realised a positive return from a holding in implant and restorative dentistry business Straumann. The company’s results illustrated solid organic growth driven by demand in Europe with earnings numbers also ahead of consensus. Pandora also released results 4% ahead of consensus and saw resultant upgrades. We continue to believe the stock is a high quality compounder offering the potential of attractive cash returns to investors.

Holdings within the luxury sector detracted from performance as stocks with perceived exposures to China sold off following the decision of the People’s Bank of China to devalue the currency. LVMH Moët Hennessy, for example, fell by over 10% during the month. Likewise, Pernod Ricard detracted from performance, suffering also from poor sales in the US as consumer taste trends prove to be shifting away from vodka and towards bourbon, causing the company to experience subsequent downgrades. Unilever also detracted as it was sold off with emerging market exposed stocks.

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 exposures to consumer goods, basic materials, oil & gas, health care, utilities and telecoms.

Outlook

Despite the performance of European equities year-to-date and recent market volatility, we continue to favour European equities given that macroeconomic momentum remains positive and monetary policies remain supportive. The recent correction has made investors somewhat fearful, even of equities with limited or zero exposure to China. At the same time, some specific equities with emerging market exposure have been marked down extremely aggressively and are in oversold territory in our view. For companies with more domestic exposure, European equity earnings momentum remains robust.

11 September 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.