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BlackRock New Engy (BRNE)

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Thursday 21 July, 2011

BlackRock New Engy

Portfolio Update


BLACKROCK NEW ENERGY INVESTMENT TRUST plc
All information is at 30 June 2011 and unaudited.

Performance at month end with net income reinvested
                      One    Three      Six     One     Five   Since Launch
                    Month   Months   Months    Year    Years    (23 Oct 00)
Net asset value*    -1.1%    -8.6%    -3.7%    2.0%     0.2%         -51.1%           
(Undiluted)                                                                   
Net asset value*    -1.1%    -8.6%    -3.7%    2.0%     0.2%         -51.1%           
(Diluted)                                                                     
Share price         -2.9%    -7.8%    -5.4%   -3.6%   -20.4%         -61.6%           
Source: BlackRock

* Net asset value and share price performance include the subscription share
reinvestment, assuming the subscription share entitlement per share was sold
and the proceeds reinvested on the first day of trading.

At month end                                                                   
Net asset value (undiluted):                           45.32p                  
Net asset value (diluted):                             45.32p                  
Share price:                                           37.13p                  
Discount to NAV**:                                     18.07%                  
Subscription Share price:                              2.25p                   
Net yield:                                             n/a                     
Total assets including current year revenue:           £111.852m               
Gearing:                                               Nil                     
Ordinary shares in issue:                              246,782,528             
Subscription shares in issue:                          45,717,283              
                                                                               
** Discount to NAV based on fully diluted NAV.                                 

Benchmark                                                                      
Sector Analysis            % of Total   Country Analysis     % of Total
                               Assets                            Assets
                                                                               
Renewable Energy                 40.7   USA                        35.0
Enabling Energy Technology       29.2   Denmark                     7.8
Alternative Fuels                15.5   United Kingdom              7.7
Materials Technology              8.3   Spain                       7.7
Auto & On-site Generation         1.1   China                       5.9
Energy Storage                    0.3   Germany                     5.7
Net current assets                4.9   Canada                      3.9
                                -----   France                      3.8
                                100.0   South Africa                3.1
                                =====   Belgium                     2.9
                                        Brazil                      2.9
                                        Portugal                    1.9
                                        Switzerland                 1.5
                                        Ireland                     1.1
                                        Luxembourg                  1.0
                                        Italy                       0.9
                                        Austria                     0.8
                                        Finland                     0.5
                                        Japan                       0.5
                                        Russia                      0.5
                                        Net current assets          4.9
                                                                  -----
                                                                  100.0
                                                                  =====

Ten Largest Investments (in alphabetical order)                                 
                                                                               
Company                      Country of Risk                      
Iberdrola Renovables         Spain                               
ITC Holdings                 USA                                 
Johnson Controls             USA                                 
Johnson Matthey              United Kingdom                      
NextEra Energy               USA                                 
Novozymes                    Denmark                             
Quanta Services              USA                                 
Schneider Electric           France                              
Vestas Wind Systems          Denmark                             
Wacker Chemie                Germany                             


Robin Batchelor and Poppy Allonby, representing the Investment Manager, noted:

The NAV of the Company declined by -1.1% in June. For reference, global equity
markets (represented by the MSCI World Index (capital only)) finished the month
0.7% higher.

Markets were volatile over the month on fears of a Greek debt default. As
markets began to price in the risk of this default, equity investors rotated
out of higher risk assets into more defensive sectors and larger cap equities.
Towards the end of the month the Greek parliament approved austerity measures
intended to save the country from defaulting on its debts, and this provided
some respite to the market. Consequently some risk appetite returned, driving a
recovery in equities.

For New Energy, positive news came from the European Union which is looking at
ways to accelerate the regions progress towards the 2020 energy efficiency
target. A new directive is proposing the introduction of energy saving schemes
such as smart metering in order to support the target of increasing energy
efficiency by 20%.

Following on from Germany announcing that they will be phasing out their
nuclear power capacity by 2022, a coalition government in Finland has declared
that they will no longer make any decisions-in-principle on nuclear power over
the course of their 4 year term. This is likely to drive an increase in demand
for both energy efficiency policies and renewable power.

At the start of the month, members of the team attended one of the key solar
conferences of the year, the Intersolar Fair, in Munich Germany. We have been
cautious on the sector over the past year on rising regulatory risks and
competitive pressure. These concerns were validated at the event, which
provided a conservative near-term outlook for pricing and volumes, and in
subsequent sector profit warnings.

Performance
Schneider Electric, Telvent and Johnson Controls, all energy efficiency
companies, positively contributed to performance this month. Johnson Controls
benefited from a well received analyst day. Schneider's announced plans to
acquire smart grid company Telvent; both companies rose on the back of this
news with Telvent returning 16% over the month. Both companies are held in the
portfolio and this strongly contributed to performance for the month.

The Company's exposure to the wind sector, led by Vestas the wind turbine
manufacturer, continued to detract from performance. Ongoing concerns over the
ability of wind companies to meet their 2011 guidance have been a headwind to
the equities.

The Company's holding in Shaw Group also detracted from performance, due to the
latter reporting quarterly results burdened by project cost overruns.

Portfolio Activity
The Company initiated a position in an energy efficiency company and an Indian
renewable energy developer during the month.

We also took profits from some of the strong performers in the portfolio.

Outlook
A number of macro concerns continue to weigh on the market, including European
sovereign risk, China inflation and the planned end of quantitative easing
(QE2) in the US. As a result equities are likely to remain volatile.

There is a real and significant opportunity for renewable energy and energy
efficiency to help offset any slowdown or reversal in nuclear power's
renaissance. Recent events, both in Japan and the Middle East North Africa
(MENA) region, have put energy policy and energy security back on the political
agenda. There now appears scope for renewed regulatory momentum in the sector.
The BGF New Energy Fund is poised to benefit from this new reality with over
70% of its investments exposed to energy efficiency and renewables.

What is more, many of the Company's holdings are trading on historically low
earnings multiples, a fact emphasised by the recent spate of M&A.

21 July 2011

ENDS

Latest information is available by typing www.blackrock.co.uk on the internet,
"BLRKINDEX" on Reuters, "BLRK" on Bloomberg or "8800" on Topic 3 (ICV
terminal). Neither the contents of the Manager's website nor the contents of
any website accessible from hyperlinks on the Manager's website (or any other
website) is incorporated into, or forms part of, this announcement.


       

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