Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc (LEI - 5493003R8FJ6I76ZUW55)

All information is at 28 February 2017 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)

1.2%

8.2%

21.2%

24.5%

278.8%

Net asset value* (diluted)

1.2%

8.2%

21.7%

26.5%

279.2%

Share price

-0.2%

8.6%

16.8%

22.1%

261.5%

FTSE World Europe ex UK

2.1%

9.9%

27.3%

26.9%

201.2%

* Diluted for treasury shares and subscription shares.

Sources: BlackRock and Datastream

At month end

Net asset value (capital only):

299.73p

Net asset value (including income):

300.43p

Net asset value (capital only)1:

299.73p

Net asset value (including income)1:

300.43p

Share price:

284.50p

Discount to NAV (including income):

5.3%

Discount to NAV (including income)1:

5.3%

Net cash:

3.6%

Net yield2:

1.9%

Total assets (including income):

£286.3m

Ordinary shares in issue3:

95,295,953

Ongoing charges4:

1.07%

1  Diluted for treasury shares. 2  Based on a final dividend of 3.65p and an interim dividend of 1.65p per share for the year ended 31 August 2016. 3  Excluding 15,032,985 shares held in treasury. 4  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 2016.

Sector Analysis

Total Assets

Country Analysis

Total Assets

(%)

(%)

Industrials

28.2

France

19.0

Financials

19.8

Netherlands

12.6

Consumer Goods

17.4

Denmark

12.3

Technology

7.5

Germany

8.7

Consumer Services

7.1

Switzerland

7.8

Health Care

6.9

Belgium

7.5

Basic Materials

5.6

Sweden

5.4

Telecommunications

2.5

Ireland

5.0

Oil & Gas

1.4

Finland

4.5

Net current assets

3.6

Russia

4.2

-----

Luxembourg

2.3

100.0

Turkey

2.1

=====

Poland

1.7

Ukraine

1.7

Italy

1.6

Net current assets

3.6

-----

100.0

=====

Ten Largest Equity Investments

% of

Company

Country

Total Assets

AXA

France

3.5

RELX

Netherlands

3.4

Anheuser-Busch Inbev

Belgium

3.3

Bayer

Germany

3.3

ASML

Netherlands

3.2

Vinci

France

2.9

Schneider Electric

France

2.8

KBC Groep

Belgium

2.7

Wartsila

Finland

2.6

Thales

France

2.6

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

During the month, the Company’s NAV rose by 1.2% and the share price fell by 0.2%. For reference, the FTSE World Europe ex UK Index was up 2.1% during the period.

During February, European equities saw positive returns given upbeat economic data and strong Q4 earnings reported by European companies. Although political uncertainties remain with the upcoming Dutch and French elections, improving business confidence and earnings prospects are creating greater positive sentiment for now.

Most sectors were in positive territory during the month, although more defensively orientated sectors outperformed the market and the technology sector also saw strong gains. Following a strong run, the financials sector, in particular banks, gave back some performance.

From a sector perspective, the lower allocation to financials versus the index benefited performance, in particular the lower allocation to banks which proved the worst performing industry over the month as bond yields fell back. In this context, defensive sectors saw some strength over the month, with the Company’s lower weighting towards health care detracting from returns in this respect.

The higher weighting to the industrials sector was positive for performance. The sector has performed well, experiencing the greatest positive earnings revisions in the market. The positive trajectory of the Eurozone Purchasing Managers’ Index and the positive data out of China also continue to support this sector.

In stock specifics, not owning Unilever dented returns on a relative basis as the company’s share price reacted exceptionally positively to news that Kraft-Heinz wished to make a bid for them. Whilst Kraft-Heinz then withdrew their bid, the share price proved relatively resilient at this higher level.

Pandora also detracted from returns. The company posted results which were behind market consensus on sales, with decelerating trends in the US in particular. The company is now in a negative cycle whereby optically, like-for-like sales will be decelerating as sales from brick and mortar stores fall whilst online begins to accelerate. Overall, the company is still delivering well and is ahead of its peers.

A position in Steinhoff rebounded in February after suffering underperformance at the start of the year. An overhang to the stock was removed as ShopRite and Steinhoff announced an end to merger talks. At the end of the month the company reported strong sales momentum across all regions during Q1.

A position in Mail.Ru, a Russian leading social network with associated internet businesses, also contributed positively in February. The company reported strong results on the back of acquired businesses, and investors gained confidence in management’s ability to put adjacent businesses (Youla, Delivery Club) on to the social networking platform.

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

Outlook

After a difficult year in 2016 we think that conditions for Europe are much brighter for 2017. The outlook for the global economy on balance is improving, with leading indicators suggesting more positive signals across regions. European earnings have historically been more sensitive to global economy pick-ups, given the large revenue exposure of European firms to global and emerging markets. The European market is now seeing a more supportive earnings revision trend and margins are now beginning to improve on the back of a better macro backdrop, cost discipline, improvement in pricing power and weaker currencies.

The asset class has been heavily sold down in the last twelve months and is currently out of favour. This can present a good entry point ahead of a potential turning point in sentiment as the economy recovers and earnings benefit from global reflationary trends. There are risks still on the horizon we need to be mindful of, most notably on the political front given the lack of clarity on policies in the US, whilst French and German elections will be the key focal points in Europe, with a fear of populist rise and anti-EU rhetoric potentially bringing some volatility along the way. We think that we should come through those events with no major change in political direction, which could bring further support to markets once this is established.

16 March 2017

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.