Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc
All information is at 30 JUNE 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)			2.9%	3.4%				9.4%		26.4%	236.7%
Net asset value* (diluted)			2.9%	4.4%				9.7%		26.4%	237.0%
Share price			3.4%	3.9%				6.5%		28.4%	219.8%
FTSE World Europe ex UK			3.8%	4.2%				6.0%		24.8%	156.6%
Sources: BlackRock and Datastream
At month end
Net asset value (capital only):					267.19p
Net asset value (including income):					270.42p
Net asset value (capital only)*:					267.19p
Net asset value (including income)*:					270.42p
Share price:					255.00p
Discount to NAV (including income):					5.7%
Discount to NAV (including income)*:					5.7%
Net cash:					2.9%
Net yield**:					2.0%
Total assets (including income):					£277.7m
Ordinary shares in issue***:					102,703,113
Ongoing charges****:					0.89%
* Diluted for treasury shares. ** Based on a final dividend of 3.35p for the year ended 31 August 2015 and an interim dividend of 1.65p per share for the year ending 31 August 2016. *** Excluding 7,625,825 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
	(%)											(%)
Industrials	24.9						France					16.6
Financials	22.1						Denmark					11.6
Consumer Goods	14.4						Switzerland					11.1
Health Care	12.9						Germany					10.1
Technology	9.2						Finland					7.6
Consumer Services	7.6						Netherlands					7.6
Basic Materials	4.6						Italy					6.3
Telecommunications	1.4						Ireland					6.3
Net current assets	2.9						Sweden					5.2
	-----						Luxembourg					3.2
	100.0						Russia					3.0
	=====						Turkey					2.2
							Belgium					2.0
							Spain					1.5
							Ukraine					1.4
							Poland					1.4
							Net current assets					2.9
												-----
												100.0
												=====
Ten Largest Equity Investments
									% of
Company		Country							Total Assets
Novo Nordisk		Denmark							4.4
Adidas		Germany							3.4
Zurich Insurance Group		Switzerland							3.3
Tenaris		Luxembourg							3.1
RELX		Netherlands							2.8
Vinci		France							2.8
Unibail-Rodamco		France							2.7
Capgemini		France							2.2
Sampo Oyj		Finland							2.2
Thales		France							2.2

Commenting on the markets, Vincent Devlin, representing the Investment Manager noted: During the month, the Company’s NAV rose by 2.9% and the share price increased by 3.4%. For reference, the FTSE World Europe ex UK Index rose by 3.8% during the period. Europe ex UK equities were up in June, aided largely by the sharp depreciation in Sterling following the UK’s surprise decision to leave the EU. Although the unexpected ‘Brexit’ vote initially led to a significant market sell-off, we saw a slight recovery over the following days. Adding to uncertainties around the ‘Leave’ outcome, we are facing some key events in the coming months such as the Italian referendum on the constitution in October, the US elections in November, as well as several general elections in European countries in 2017. Defensive sectors such as consumer staples and health care performed well while financials across Europe, specifically periphery banks, were affected the most by the risk-off sentiment. Compared to the reference index, we saw positive returns from stock selection, whilst sector allocation detracted. In particular, the lower weighting to consumer goods, oil & gas and utilities detracted from performance. These sectors were the best performing over the month as capital moved quickly following the referendum into more defensive and under-owned areas of the market. Holding cash (2.5% average over the month), aided performance as the market sold off sharply following the UK’s vote to leave the EU. On a stock basis, the largest detractors were those seen to be most directly impacted by the UK's 'Leave' vote. In particular, this was evident within the financial sector, with Intesa Sanpaolo and Bank of Ireland detracting. We continue to hold both positions, although at lower weights. Bank of Ireland, in particular, remains a good franchise relative to most European banks, in a more resilient economy. Not holding Nestlé also detracted from performance as capital fled into 'safe haven' assets. On a positive note, we saw continued strong performance from a holding in Adidas, which is enjoying strong brand momentum and saw record football sales of €2.5bn amid the Euro 2016 boost. At the end of the period the portfolio had higher weightings when compared with the reference index to industrials, technology, financials and consumer services. The portfolio had a lower weighting towards consumer goods, oil & gas, utilities, basic materials, telecoms and health care. Outlook While it is tempting to reach broad brush and instant investment conclusions, this is an unusual environment where a UK exit is one part of a complex macro picture. The decision to leave clearly represents a material disruption for the UK economy and, to a lesser extent, to the broader EU. The process of a major country leaving the EU has no precedent, so we should expect an ongoing period of market volatility as implications are digested. Present political risks have the greatest ability to impact equity valuation first via a heightened equity risk premium and subsequently via potential impact on earnings.  Earnings momentum had just started to improve following the downgrades seen in Q1 but we do need to see earnings growth come through for markets to move on significantly from where we currently are. However, this current period of volatility and dislocation is likely to offer entry opportunities in some parts of the market. The additional extensive measures announced by the European Central Bank (ECB) in March further compressed yields in the Eurozone and the search for yield remains a powerful driver of demand from investors. In the current low growth environment, we believe that companies with high cash flow will do better because they tend to be more resilient in an economic downturn than the companies which have higher debt and less cash. As always, we will be guided by our detailed fundamental investment process: this will continue to incorporate any risk to earnings that might arise from political risk including potential developments around common market access, the Schengen agreement and also any shifts within the currency. 18 July 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.