The Blackrock New Energy Investment Trust (formerly known as Merrill Lynch New Energy Technology) was formed in 2000 to generate long-term capital growth through global investment in companies that focus on alternative energy generation or energy technology.
Amid increasing concerns over the high price of oil and the fragility of oil producing nations, governments are putting in place long-term regulation and policies that promote the use of renewables, alternative fuels and incentivise energy efficiency. As a consequence of these developments, the fund's investment universe has grown.
Fund managers Robin Batchelor (who has been in place since the fund's launch) and Poppy Allonby believe the inauguration of Barack Obama as US president was a memorable occasion for investors in the new energy sector, as it introduced a fundamental shift in the direction of the White House energy policy. From a geographic perspective, it is therefore no surprise that 40 per cent of the fund's assets are in US stocks.
The fund's managers point out that both Mr Obama and UK prime minister Gordon Brown have recently highlighted new energy as a focus for economic stimulus packages and to help economies navigate their way out of the current economic mire.
Note that although the company primarily invests in quoted stocks, it involves an above-average risk due to the nature of its other holdings. It may hold up to 25 per cent of its assets in unquoted companies and a large percentage of the fund's assets may also be held in smaller companies.
Blackrock New Energy Investment Trust (BRNE) | |||
PRICE | 44p | NAV | 48.42p |
SIZE OF FUND | £118 million | PRICE DISCOUNT TO NAV | -9.12% |
No OF HOLDINGS | n/a | 1 YEAR PRICE PERFORMANCE | -41.33 |
SET UP DATE | 23-Oct-00 | 3 YEAR PRICE PERFORMANCE | -8.81 |
MANAGER START DATE | 23-Oct-00 | 5 YEAR PRICE PERFORMANCE | 81.44 |
TURNOVER | n/a | TOTAL EXPENSE RATIO* | 1.5 |
VOLATILITY | 13 | YIELD | n/a |
TRACKING ERROR | n/a | GEARING | 100 |
SHARPE RATIO* | -0.03 | MORE DETAILS | www.blackrock.co.uk |
Source: Blackrock, Datastream, *Morningstar
TOP TEN HOLDINGS (alphabetical order)
Holding | Country |
American Superconductor | USA |
ArcherDaniels Midland | USA |
Climate Exchange | United Kingdom |
FPL Group | USA |
Gamesa Corp Technologica | Spain |
Iberdrola | Spain |
Iberdrola Renovables | Spain |
Itron | USA |
Sasol | South Africa |
Vestas Wind Systems | Denmark |
ASSET ALLOCATION
Sector | % |
Renewable Eenrgy | 47.2 |
Enabling Energy Technology | 19.3 |
Alternative Fuels | 15.2 |
Materials Technology | 4.8 |
Energy Storage | 0.9 |
Auto & On-site Generation | 0.5 |
Net current assets | 12.1 |