Blackrock Greater Europe Trust remains upbeat about the prospects for European equities, but adds that market valuations have started to normalise and, although they remain attractive, the market overall is no longer looking very cheap.

The Trust's NAV fell to 164.29p from 169.98p in the year to August, compared with a fall in its benchmark of 5.8%.

"We believe the economic recovery is gaining momentum and that current earnings forecasts may be too low in the face of further aggressive cost cutting and a recovery in demand. However, we believe that we could now enter a period of market consolidation in the wake of the recent strong rally," it said.

Revenue return per share for the year amounted to 3.26p compared with 3.73p for the previous year, representing a fall of 12.6%.

The Trust has recommended a final dividend of 3.15p per share, up 5% on the previous year.

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