Join our community of smart investors

Blackrock has eyes on White House new energy drive

FUND PROFILE: Blackrock New Energy Investment Trust aims to benefit from Obama's energy policy
June 9, 2009

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)
PRICE44pNAV48.42p
SIZE OF FUND£118 millionPRICE DISCOUNT TO NAV-9.12%
No OF HOLDINGSn/a1 YEAR PRICE PERFORMANCE-41.33
SET UP DATE23-Oct-003 YEAR PRICE PERFORMANCE-8.81
MANAGER START DATE23-Oct-005 YEAR PRICE PERFORMANCE81.44
TURNOVERn/aTOTAL EXPENSE RATIO*1.5
VOLATILITY13YIELDn/a
TRACKING ERRORn/aGEARING100
SHARPE RATIO*-0.03MORE DETAILSwww.blackrock.co.uk

Source: Blackrock, Datastream, *Morningstar

TOP TEN HOLDINGS (alphabetical order)

HoldingCountry
American SuperconductorUSA
ArcherDaniels MidlandUSA
Climate ExchangeUnited Kingdom
FPL GroupUSA
Gamesa Corp TechnologicaSpain
IberdrolaSpain
Iberdrola RenovablesSpain
ItronUSA
SasolSouth Africa
Vestas Wind SystemsDenmark

ASSET ALLOCATION

Sector%
Renewable Eenrgy47.2
Enabling Energy Technology19.3
Alternative Fuels15.2
Materials Technology4.8
Energy Storage0.9
Auto & On-site Generation0.5
Net current assets12.1