Portfolio Update

BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31)

All information is at 30 September 2020 and unaudited.

Performance at month end with net income reinvested

One

Three

Six

One

Three

Five

Month

Months

Months

Year

Years

Years

Net asset value

-1.8%

2.1%

33.0%

-6.4%

6.1%

62.1%

Share price

2.8%

13.9%

45.6%

-6.1%

3.5%

50.0%

Sources: Datastream, BlackRock

At month end

Net asset value – capital only:

68.22p

Net asset value cum income*:

69.26p

Share price:

62.50p

Discount to NAV (cum income):

9.8%

Net yield:

6.4%

Gearing - cum income:

3.0%

Total assets:

£78.6m

Ordinary shares in issue:

113,470,349

Gearing range (as a % of net assets):

0-20%

Ongoing charges**:

1.5%

* Includes net revenue of 1.04p. ** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2019.

Sector Overview

Mining

51.60%

Energy Transition

31.80%

Energy

18.20%

Cash & Cash Equivalents

-1.60%

-----

100.00%

=====

Sector Analysis

% Total Assets^

Country Analysis

% Total Assets^

Mining:

Diversified

21.8

Global

62.5

Copper

13.7

USA

14.4

Gold

7.3

Latin America

6.8

Industrial Minerals

3.5

Australia

4.3

Diamonds

1.9

Canada

4.3

Platinum

1.2

Germany

2.5

Steel

1.0

South Africa

1.6

Nickel

0.7

France

1.3

Iron

0.5

Ireland

1.2

Subtotal mining:

51.6

Norway

1.1

United Kingdom

0.9

Energy:

Brazil

0.4

Integrated

9.5

Africa

0.3

E&P

4.1

Other Net Liabilities^

-1.6

Distribution

3.0

-----

Refining & Marketing

1.2

100.00

Oil Services

0.4

=====

Subtotal Energy:

18.2

Energy Transition:

Electrification

14.6

Energy Efficiency

8.9

Renewables

6.0

Transport

1.4

Storage

0.9

Subtotal Energy Transition:

31.8

Net Current Liabilities^

-1.6

----

100.0

=====

^ Total Assets for the purposes of these calculations exclude bank overdrafts, and the net current liabilities figure shown in the tables above therefore exclude bank overdrafts equivalent to 1.4% of the Company’s net asset value.

Ten Largest Investments

Company

Region of Risk

% Total Assets

BHP

Global

8.0

First Quantum Minerals*

Global

7.4

Rio Tinto

Global

5.5

Vale

Latin America

5.1

Vestas

Global

4.2

NextEra Energy

USA

3.6

Enel

Global

3.5

Freeport-McMoran

USA

3.4

Anglo American

Global

3.3

Chevron

Global

3.1

*The holding in First Quantum Minerals includes both an equity holding and a holding in several bonds.

Commenting on the markets, Tom Holl and Mark Hume, representing the Investment Manager noted:

The Company’s NAV decreased by 1.8% during the month of September (in Sterling terms with dividends reinvested). Global equity markets lost ground in September, amid rising infection rates across much of Western Europe and renewed concerns about the strength of the global economic recovery (for reference the MSCI AC World Index fell by 3.4%). Elsewhere, the US Federal Reserve disappointed expectations with respect to further stimulus to spur inflation and support the economy on a short-term basis, potentially driving the tick up in real interest rates. The mining sector pulled back in September following a strong run in August. Most mined commodities were down over the month, with US Dollar strength acting as a headwind. For reference, copper, gold and iron ore (62% fe.) prices fell 0.4%, 3.5% and 4.4% respectively, albeit remaining at elevated prices, all still well above where they started the year. Market sentiment appeared to be negatively impacted by mounting fears around a second wave of COVID-19. Economic activity data continued to be encouraging, with China’s manufacturing PMI coming in at 51.5, up from 51.0 in August. China also announced an aim to achieve carbon neutrality before 2060 during the month in a move seen as hugely significant in the fight against climate change. Within the conventional energy sector, OPEC oil production rose, as Libyan oil output hit 300,000bpd, following the partial lifting of a blockade on the country’s energy facilities. However, despite this increase in supply, OPEC continues to put pressure on those countries not complying with the agreed cuts. Against this backdrop of increased oil supply and sluggish demand, oil prices came under pressure, with Brent and WTI falling by 10.9% and 6.0% respectively, ending the month at $40/bbl.  Within the energy transition space, at the State of the Union Address, the European Commission President Ursula von der Leyen announced plans to increase emission reduction targets to -55% by 2030 (from current target of -40% vs 1990 levels).  Funding of the €750bn NextGenerationEU budget will also see 30% raised via green bonds and 37% of the funding will be invested in European Green Deal objectives. This was viewed as positive for the sustainable energy sector. Within transportation CO2 emissions are targeted to be 50% below 2021 levels (the current plan is at 62g/km and this new proposal would reduce emissions to 43g/km). This forms part of the EU's target to be zero-emissions by 2050. Finally, China announced it will aim to hit peak emissions before 2030 and for carbon neutrality by 2060, which was viewed as positive for clean energy technologies given the high level of investment required to meet these ambitions. All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream. 13 October 2020

ENDS

Latest information is available by typing www.blackrock.com/uk/beri 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.