Statement re Transition of the portfolio

BlackRock Energy and Resources Income Trust plc

(LEI:54930040ALEAVPMMDC31)

Transition of the portfolio

The Board of BlackRock Energy and Resources Income Trust plc (the “Company”) announced on 17 March 2020 that, within the parameters of the Company’s existing investment policy, it was the Board’s intention to increase the focus on exposure to stocks that are benefitting from the transition in the energy sector, away from carbon-based energy supplies towards alternative and renewable sources, such that these will represent a greater proportion of the stocks held within the portfolio in the medium term, subject to market conditions.

As from today, 1 June 2020, the Company’s portfolio managers at BlackRock Investment Managers (UK) Limited will begin transitioning the Company’s portfolio to reflect this increased focus on alternative and renewable energy sources. The development of the portfolio is not anticipated to impair the Company’s ability to pay the target dividend on the Company’s shares which will remain at 4.0 pence per share for the current financial year.  This is expected to be delivered primarily from a mix of dividend income from the portfolio and dividend reserves, supported by the payment of income out of capital if required.  

The Board does not formally benchmark the Company’s performance against mining and energy sector indices because meeting a specific dividend target is not within the scope of these indices and there is not an index that appropriately reflects the Company’s blended exposure to the energy and mining sectors. For internal purposes, however, the Board compares the performance of the portfolio against a bespoke internal mining and energy composite index and this will evolve in line with portfolio changes. The neutral sector weightings of 50% mining and 50% traditional energy in the current composite index will evolve to 40% mining, 30% traditional energy and 30% sustainable energy sector weightings. 

Ed Warner, Chairman of the BlackRock Energy and Resources Income Trust commented: “The Board views the global transition to a low-carbon economy as a secular trend and an investment opportunity that demands inclusion in the Company’s portfolio in a significant way. The Company will adopt a balanced approach, also incorporating traditional energy and mining equity investments, as they continue to have a key role to play in the energy transition theme alongside those at the vanguard of sustainable energy production. We look forward to providing further updates to shareholders over the coming quarters”.  

For further information, please contact:

Melissa Gallagher, Managing Director, Investment Companies, BlackRock Investment Management (UK) Limited

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Neil Morgan, Winterflood

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Press enquiries:

Lansons Communications

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