Portfolio Update

BLACKROCK GREATER EUROPE INVESTMENT TRUST plc

All information is at 31 July 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)

4.8%

0.0%

14.4%

55.2%

222.5%

Net asset value* (diluted)

4.0%

0.0%

13.3%

53.7%

219.5%

Share price

3.0%

-0.8%

14.4%

56.5%

209.1%

FTSE World Europe ex UK

4.4%

-1.7%

9.6%

55.3%

152.7%

Sources: BlackRock and Datastream

At month end

Net asset value (capital only):

260.49p

Net asset value (including income):

264.12p

Net asset value (capital only)*:

258.43p

Net asset value (including income)*:

261.47p

Share price:

251.50p

Discount to NAV (including income):

4.8%

Discount to NAV (including income)*:

3.8%

Subscription share price:

17.88p

Net gearing:

2.8%

Net yield**:

1.9%

Total assets (including income):

£280.5m

Ordinary shares in issue***:

104,289,064

Subscription shares:

20,565,777

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

35.4

France

19.4

Industrials

17.4

Switzerland

15.7

Consumer Goods

10.5

Italy

11.3

Consumer Services

8.7

Germany

10.7

Technology

7.7

Netherlands

8.4

Health Care

7.4

Sweden

7.6

Basic Materials

5.7

Ireland

6.1

Telecommunications

3.8

Denmark

5.8

Utilities

2.4

Belgium

3.8

Oil & Gas

1.9

Russia

3.7

Net current liabilities

(0.9)

Spain

3.4

-----

Finland

2.5

100.0

Turkey

2.5

=====

Net current liabilities

(0.9)

-----

100.0

=====

Ten Largest Equity Investments

% of

Company

Country

Total Assets

Novartis

Switzerland

5.4

Novo Nordisk

Denmark

4.9

Bayer

Germany

4.0

KBC Groep

Belgium

3.8

LVMH Moët Hennessy

France

2.9

AXA

France

2.8

Zurich Insurance Group

Switzerland

2.7

ASML

Netherlands

2.5

Intesa Sanpaolo

Italy

2.5

Deutsche Telekom

Germany

2.5

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

During the month, the Company’s NAV rose by 4.8% and the share price increased by 3.0%. For reference, the FTSE World Europe ex UK Index was up 4.4% during the period.

As concern faded that Greece will leave the Euro, European equity markets rebounded in July and reversed the losses that were seen in the last few trading days of June. The FTSE World Europe ex UK Index advanced by 4.4% in July, representing the best monthly performance since November 2014. This resulted in Europe outperforming other regions in both local currency and Euro terms. Greece’s impact on the rest of Europe has been alleviated by continued monetary stimulus by the European Central Bank (ECB), whose liquidity and extremely low interest rates have helped to support the credit cycle in the region. Indeed, the latest ECB lending survey shows Euro area credit conditions are easing at the fastest pace since 2006. Concerns over Chinese growth weighed on commodity related sectors, with the basic resources sector falling 6.5% in July; energy prices also continued to fall, with oil reaching $50 per barrel by the end of the month.

Sector allocation drove performance in July with stock selection flat through the period. The Company’s lower exposure to consumer goods and oil & gas saw positive returns on a sector basis. The higher exposure to technology versus the index caused detraction from performance.

The Company’s largest contributor was Italian Asset Manager Anima after announcing Q2 results ahead of consensus. Anima’s lower operating expenses and confirmation of a new strategic alliance to create and distribute funds for Poste Italiane, starting this year, were also taken positively by the market. Novo Nordisk was also a contributor after releasing positive data on their diabetes drug pipeline.

On a less positive note, the Company saw a detraction from Lundin Petroleum, as the stock was hit by the falling oil price. Equally, following the slowdown in the rate of growth for the semiconductor industry, a position in ASML, the largest supplier in the world of photolithography systems, detracted from returns.

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

Outlook

In the face of some concerns around the weakening of global economic conditions, driven by a continued economic slowdown in China in particular, we believe that European equities offer the best earnings momentum globally coupled with attractive valuations. Supportive monetary policy by the ECB, recovering economic momentum and a stabilizing political backdrop, provides a reassuring environment for European equities and is consistent with our thesis that Eurozone economic momentum should continue to improve in H2 2015. Early signs from the second quarter reporting earnings season are robust with European companies demonstrating an acceleration of earnings growth on the back of improving economic conditions, with a weaker Euro and lower commodity prices boosting sales growth. European data is increasingly showing evidence of the recovery; of the 50% of the companies which have reported, 73% of those have beaten or been in line on earnings which coincides with the largest proportion of positive surprises since 2009. Markets might remain volatile though, in particular due to the expected shift in monetary policy by the Federal Reserve, which will open up potential opportunities to pick-up undervalued stocks across the market. Our consistent investment process and bottom-up fundamental analysis, coupled with internal valuation tools, should help us in such an environment.

13 August 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.