Blackrock (NYSE:BLK) Greater Europe Inv Tst (LON:BRGE) invests in continental European equities across the market cap spectrum; it is a concentrated portfolio and up to 25% may be invested in companies listed in developing European markets. The primary aim is long-term capital growth; however BRGE has a progressive dividend strategy – ordinary dividends have increased in every year since fund launch in 2004.
Despite modest economic growth and political uncertainties in the region, managers Vincent Devlin and Sam Vecht continue to identify attractive investment opportunities. Following significant fund outflows from European equities, any change in investor sentiment would be supportive for the asset class.
Investment strategy: In-depth, bottom-up research
BRGE’s managers are able to draw on the well-resourced teams within BlackRock to select a concentrated portfolio of European ex-UK equities aiming to achieve long-term capital growth. There is a disciplined process, which distils the investable research universe into a pipeline of companies that are considered for inclusion in the portfolio. Meeting with company managements is a key part of the investment process.
The resulting portfolio typically includes 45-65 securities selected on a bottom-up basis, although the managers acknowledge the importance of taking a view on the macro environment. Over the last three years, portfolio turnover has averaged c 90% per year.
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