Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 MARCH 2016 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)

4.2%

0.5%

1.6%

24.0%

225.6%

Net asset value* (diluted)

3.5%

0.4%

1.7%

22.9%

222.7%

Share price

-0.6%

-4.6%

-3.3%

20.1%

207.7%

FTSE World Europe ex UK

4.1%

0.6%

-4.2%

20.8%

146.3%

Sources: BlackRock and Datastream

At month end

Net asset value (capital only):

261.84p

Net asset value (including income):

263.17p

Net asset value (capital only)*:

259.54p

Net asset value (including income)*:

260.64p

Share price:

247.00p

Discount to NAV (including income):

6.1%

Discount to NAV (including income)*:

5.2%

Subscription share price:

4.88p

Net gearing:

0.9%

Net yield**:

2.0%

Total assets (including income):

£270.9m

Ordinary shares in issue***:

102,836,916

Subscription shares:

20,530,998

Ongoing charges****:

0.89%

* Diluted for subscription shares and treasury shares. ** Based on a final dividend of 3.35p per share and an interim dividend of 1.65p per share for the year ended 31 August 2015. *** Excluding 6,975,825 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 2015.

Sector Analysis

Total Assets

Country Analysis

Total Assets

(%)

(%)

Financials

26.1

France

17.4

Industrials

21.2

Switzerland

15.3

Health Care

17.0

Germany

10.3

Consumer Goods

13.4

Denmark

9.7

Consumer Services

9.9

Netherlands

9.2

Technology

8.9

Ireland

8.8

Telecommunications

4.3

Italy

7.5

Net current liabilities

(0.8)

Finland

5.9

-----

Sweden

5.3

100.0

Russia

3.0

=====

Turkey

2.5

Belgium

2.5

Poland

1.8

Spain

1.6

Net current liabilities

(0.8)

-----

100.0

=====

Ten Largest Equity Investments

% of

Company

Country

Total Assets

Novo Nordisk

Denmark

4.9

Novartis

Switzerland

4.2

Adidas

Germany

3.0

Heineken

Netherlands

2.9

Ryanair

Ireland

2.9

Vinci

France

2.8

Unibail-Rodamco

France

2.8

RELX

Netherlands

2.7

Deutsche Telekom

Germany

2.7

Cap Gemini

France

2.6

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

During the month, the Company’s NAV rose by 4.2% and the share price fell by 0.6%. For reference, the FTSE World Europe ex UK Index was up 4.1% during the period.

After the market sell-off in January and February, stocks were able to bounce back with Europe ex UK markets returning 4.1% (GBP terms, FTSE World Europe ex UK) in March. The rally throughout the month was driven by a normalisation in commodity prices leading to strong performance in the basic materials sector, making up for the year-to-date losses. Although global growth is still sluggish, we have not seen a significant shift in data this year and Europe remains relatively robust, with pockets of strength in consumer-related segments of the economy in particular. After the European Central Bank’s announcement to expand the duration and scope of its stimulus programme, we initially saw mixed reactions from the markets; however, stocks rebounded towards the end of the month as positive data came through from China. Political risk also influenced markets, particularly around the ‘Brexit’ debate.

Stock selection drove performance over the month, whilst sector allocation detracted from returns. Largely, the negative impact of sector allocation was a result of a lower weight relative to the index in basic materials, which rallied over the month. The higher weighting towards health care also detracted as the sector has sold off of late, despite continuing to see relatively robust earnings. The higher weighting towards industrials, however, contributed positively to returns.

Italian asset managers Anima and Azimut were among the top contributors. Both reported strong Q4 results and continued to show solid inflows despite the uncertainties in the Italian financial system, proving the resilience of their business models. Russian internet company Yandex was also a positive contributor to returns given the move upward in Russian stocks and the Ruble with the oil price recovery. Additionally, they successfully launched an important change to their advertising auction system, helping to optimise pricing. Elsewhere within the technology sector, Cap Gemini aided returns given a solid set of results and confirmation of synergies from the acquisition of IGATE.

Paddy Power Betfair proved the top detractor despite both of the underlying companies, which have traded together since the beginning of February, reporting strong results. Both potential changes in UK regulation and a profit warning from William Hill weighed on the shares.

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

Outlook

We recognise that the macroeconomic environment in 2016 across the various global regions remains uncertain. However, we remain constructive on European equities which have a more supportive environment in the face of diverging monetary policy cycles between the US and Europe. The incremental support from the European Central Bank via additional quantitative easing should have a further positive impact on European GDP growth and the credit cycle, especially loans to corporates. The favourable low interest rate environment is key for additional borrowing by firms to finance their needs for capex spend which was underpinned in the last ECB lending surveys. Another positive element is the manufacturing Purchasing Managers Index within Europe which has been in expansionary territory for more than two years, which bodes well for steady growth in the region. While the European macro perspective looks broadly positive, we recognise we need to see earnings growth coming through in order to drive meaningful upside for European equities. We expect earnings growth for FY2016 in the mid-to-high single digit level, regardless of the earnings drag from the energy and materials sectors.

Within this context, we retain a keen eye on valuation and we continue to focus on stock selection against a volatile market. We are sticking to companies that offer higher earnings visibility and attractive stock-specific drivers and looking to avoid value traps in highly cyclical businesses at a time of uncertainty.

18 April 2016

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.