Blackrock Greater Europe to change name, upgrade dividend policy

Blackrock Greater Europe Investment Trust PLC on Tuesday unveiled a new strategy and announced plans to change its name following a year of underperformance against its benchmark.

The investment trust, which focuses on small-, mid- and large-cap European companies, said net assets rose 1.4% to £577.2 million in the financial year ended August 31, compared with £569.1 million a year earlier. Net asset value per share increased 7.6% to 643.30 pence from 598.05 pence.

NAV total return was 8.8%, while the FTSE World Europe ex UK Index returned 21% in the period.

The firm said Duiven, Netherlands-based BE Semiconductor Industries NV was the largest individual contributor. The manufacturer of semiconductor assembly and packaging equipment benefitted from accelerating investment in artificial intelligence infrastructure, amid increasing complexity of the chips required to support it.

Meanwhile, a detractor was Amsterdam-based financial technology firm Adyen NV, which slightly reduced its 2026 revenue growth guidance. Blackrock Greater Europe said: "The market had little appetite for disappointment against a backdrop of heightened fears around AI replacing existing products or services, amplifying the share-price reaction."

The company said it ultimately exited Adyen.

Chair Andrew Impey said: "This disappointing relative performance primarily reflects a continued challenging environment for quality growth investing. Stock selection has also been a negative factor."

Impey said that management had now refined the trust's investment approach to place "greater emphasis on the price paid for quality investments, whilst continuing to focus on quality companies with good long-term growth potential."

Blackrock Greater Europe proposed a final dividend of 6.25 pence per share, bringing the total dividend for 2026 to 8.00 pence per share, up 12% from 7.15 pence a year earlier.

The trust announced a new strategy under which it will target an annual dividend equivalent to 4.5% of the company's NAV at the end of the last financial year, payable in four quarterly instalments.

Blackrock Greater Europe said it will change its name to BlackRock European Growth & Dividend Trust in December to reflect the enhanced dividend policy.

Additionally, the trust said it will reduce management fees and introduce a new 5-year performance-linked tender offer to give shareholders a partial exit opportunity, should they not be satisfied with the company's performance. Finally, the company said it aims to use gearing more strategically, depending on market conditions.

Blackrock Greater Europe shares fell 1.0% to 554.50 pence on Tuesday morning in London.

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