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BlackRock New Engy (BRNE)


Thursday 13 January, 2011

BlackRock New Engy

Portfolio Update

All information is at 31 December 2010 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*
(Undiluted)           5.0%     1.5%     5.8%   -11.4%    16.9%         -49.3%
Net asset value*
(Diluted)             5.0%     1.5%     5.8%    -9.3%    16.9%         -49.3%
Share price           6.1%     3.3%     1.9%   -18.7%    -1.0%         -59.4%
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):                           47.05p                  
Net asset value (diluted):                             47.05p                  
Share price:                                           39.25p                  
Discount to NAV**:                                    -16.58%                 
Subscription Share price:                               3.13p                   
Net yield:                                                n/a                     
Total assets including current year revenue:        £116.077m               
Gearing:                                                  Nil                     
Ordinary shares in issue:                         246,706,012             
Subscription shares in issue:                      45,793,799              
** Discount to NAV based on fully diluted NAV.                                 

Sector Analysis                  % of Total  Country Analysis     % of Total
                                     Assets                           Assets
Renewable Energy                       40.6  USA                        41.4
Enabling Energy Technology             27.3  Denmark                     7.9
Alternative Fuels                      16.3  Germany                     7.1
Materials Technology                    8.6  China                       6.9
Auto & On-site Generation               1.2  Spain                       6.2
Electronic & Electrical Equipment       0.9  Canada                      4.8
Aerospace & Defence                     0.5  United Kingdom              4.8
Energy Storage                          0.3  France                      3.9
Net current assets                      4.3  Belgium                     3.7
                                     ------  Brazil                      2.3
                                     100.00  South Africa                2.1
                                     ======  Portugal                    1.7
                                             Ireland                     1.1
                                             Luxembourg                  0.9
                                             Russia                      0.5
                                             Austria                     0.4
                                             Net current assets          4.3

Ten Largest Investments (in alphabetical order)                                 
Company                        Country of Risk                      
American Superconductor        USA                                 
Archer Daniels Midland         USA                                 
Iberdrola Renovables           Spain                               
Itron                          USA                                 
Johnson Controls               USA                                 
Johnson Matthey                United Kingdom                      
NextEra Energy                 USA                                 
Novozymes                      Denmark                             
Vestas Wind Systems            Denmark                             
Wacker Chemie                  Germany

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

The NAV of the Company gained 5.0% over the month of December. For reference
global equity markets (represented by the MSCI World Index (capital only))
gained 6.7%.

Strength returned to financial markets as positive macro economic data
bolstered investors' appetite for risk assets.

The New Energy sector received some positive momentum from the UN Climate
Change Conference held in Cancun. Expectations going in to this annual event
were modest. Indeed, as expected, no comprehensive deal to cut carbon emissions
was announced. However, the compromise that was agreed provides a platform to
structure a new global treaty when the Kyoto treaty expires at the end of 2012.

The Spanish government approved cuts to solar subsidies as they attempt to
address the effect of the subsidies on consumer electricity bills. These cuts
have been the subject of intense discussion and speculation for months. The
resolution has removed some of the uncertainty plaguing the sector.

In the US, the extension of the Investment Tax Credit cash grant for one year
was positively received as this extends the tax credits for both renewables and

The US government said that it was requesting consultations with China at the
World Trade Organisation to end the unfair subsidisation of Chinese renewable
equipment manufacturers. This negatively impacted Chinese renewable equipment
manufacturers as a resolution may increase competition from foreign companies.

Following the reforms to Spanish subsidies and the greater clarity that this
has provided to the market, Iberdrola Renovables and EDPR both performed
strongly contributing positively to the performance of the Company.

Johnson Matthey performed well largely as a result of increased demand for
platinum. As a leading producer of catalytic converters they benefited from
strength in the automotive industry which was shown by improved truck sales in
2010 (+21%).

REpower Systems, a German technology company engaged in the development and
production of wind turbines, released a profit warning. This was predominantly
due to project delays and as a result the stock fell, detracting from

Good performance came from a recent investment in Canada Lithium. The stock
rose following positive feasibility results at their project in Quebec.

Portfolio Activity
The investment team initiated a position in a private company, LS9 Inc., a
leading developer of second-generation biofuels. The company is developing
technology to produce `drop-in' alternative fuels at lower cost and with
superior characteristics than first-generation biofuels such as ethanol
produced from sugarcane and corn.

A position was also initiated in RusHydro, an owner and developer of
hydroelectric power in Russia.

The Company's exposure to solar companies was reduced over the month rotating
into energy efficiency companies.

The global financial crisis created a challenging short-term environment for
much of the New Energy sector. While some of these headwinds remain, many
others have been removed over the course of the last financial year or are
rapidly fading. Furthermore, the sector continues to enjoy significant
government support from around the globe. When set against the expectations of
ongoing energy price increases, we continue to believe that the long-term
outlook for the New Energy sector remains robust.

13 January 2011


Latest information is available by typing 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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