Join our community of smart investors

Opportunistic investing through the energy transition

BlackRock Energy And Resources Income Trust is looking to capitalise on the energy revolution while maintaining an attractive dividend
Opportunistic investing through the energy transition
  • BlackRock Energy And Resources Income was a traditional energy fund but has repositioned to have a greater focus on clean energy
  • Its revenue position has been weakened by dividend cuts last year

Given the rate at which the world is shifting away from fossil fuels, a fund with a 20 per cent allocation to oil, gas and nuclear does not appear an attractive prospect. But presented as a fund focused on investing through the energy transition while paying a yield of 5 per cent adds to its appeal. 

There’s no hiding from the fact the long-term performance of BlackRock Energy And Resources Income Trust (BERI) has been weak. Historically, it invested 50 per cent in traditional energy companies (mainly oil and gas) and 50 per cent in mining companies – two sectors which, while essential to our economies, face structural headwinds. 

To continue reading...
OR
Register for free
Read 3 articles for free each month
* Excl. premium articles
Have an account? Sign in