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BlackRock New Engy (BRNE)

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Wednesday 15 May, 2013

BlackRock New Engy

Portfolio Update


BLACKROCK NEW ENERGY INVESTMENT TRUST plc
All information is at 30 April 2013 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)          0.3%     6.5%     18.3%    14.7%   -39.3%         -55.7%
Share price         -2.6%     6.7%     20.8%    26.4%   -46.9%         -61.9%
Source: BlackRock

At month end
Net asset value - capital only (undiluted):                    41.89p
Net asset value - cum income (undiluted):                      42.06p
Net asset value - capital only (diluted):                      41.89p
Net asset value - cum income (diluted):                        42.06p
Share price:                                                   37.75p
Discount to cum income NAV**:                                  10.25%
Subscription share price:                                      0.275p
Net yield****                                                   0.40%
Total assets including current year revenue:                  £98.82m
Gearing:                                                          Nil
Ordinary shares in issue***:                              234,970,407
Subscription shares in issue:                              45,629,404

** Discount to NAV based on fully diluted NAV.
*** Excludes 11,900,000 shares held in treasury.
**** Based on a final dividend of 0.15p per share in respect of the year ended
31 October 2012.

Benchmark
Sector Analysis       Total Assets (%)   Country Analysis   Total Assets (%)

Enabling Energy & Infrastructure  30.8   USA                            33.8
Renewable Energy Developers       23.4   United Kingdom                  8.5
Energy Efficiency                 22.1   Canada                          7.9
Alternative Fuels                 14.2   Denmark                         7.0
Renewable Energy Technology        4.8   France                          6.8
Net current assets                 4.7   China                           4.8
                                 -----   Germany                         4.6
                                 100.0   Portugal                        3.8
                                 =====   Switzerland                     3.5
                                         Finland                         2.9
                                         South Africa                    2.4
                                         Italy                           2.2
                                         Brazil                          1.6
                                         Belgium                         1.6
                                         Australia                       1.5
                                         Ireland                         1.3
                                         Japan                           0.6
                                         Spain                           0.5
                                         Net current assets              4.7
                                                                       -----
                                                                       100.0
                                                                       =====

Ten Largest Investments (in alphabetical order)

Company                            Country of Risk
ABB Reg                            Switzerland
Altagas                            Canada
EDP Renovaveis                     Portugal
ITC Holdings                       USA
Johnson Controls                   USA
NextEra Energy                     USA
Novozymes                          Denmark
Quanta Services                    USA
Schneider Electric                 France
Transcanada                        Canada

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

The NAV of the Company appreciated by 0.3% in April.

For reference, the MSCI World Index returned +0.4% and the WilderHill New
Energy Global Innovations, an index that is representative of the sector, rose
by 3.7% (DataStream, in sterling terms).

In April, the market became slightly more cautious on the global economy as a
number of economic data points missed expectations.  The US jobs report,
Chinese industrial production and both Chinese and US GDP disappointed, causing
equity markets to suffer a slight correction.  This was only a temporary
setback and the market quickly shook off these concerns to end the month in
positive territory.

An update from the IMF highlighted that the global economy is likely to
continue to grow at the same pace as growth in 2012, however we are now in a
three-speed recovery with the US economy outpacing other advanced economies
such as Europe. 

The carbon price fell during the month as a vote by the European Union
parliament failed to muster enough support to backload carbon allowances to
2019-2020.  This news disappointed the market, acting as a headwind for both
power prices and electricity producers in the near term. 

The US Internal Revenue System (IRS) provided improved clarity on how wind farm
developers would qualify for tax breaks approved by the Obama administration
for 2013.  The newly defined rules indicated that a wind farm developer that
commences construction during 2013 will qualify for the tax benefits.  This was
viewed as a positive for the wind industry as a whole and should provide
support for the construction of new wind farms in the 2013-2014 period.

The market received mixed messages from China on the solar industry during the
month.  The Chinese regulator expressed caution on further lending to the solar
market, however this was followed by news that Yingli Green Energy had been
approved for a $165m loan from China Development Bank.  Solar companies
responded positively to this news and the Company's allocation to this sector
delivered strong absolute performance during the month.

In M&A news, Power One a manufacturer of solar invertors announced they would
be acquired by ABB.  This deal highlights further the attractive opportunities
available in the new energy sector. 

Performance
During the month Enel Green Power, the renewable energy utility company,
announced plans to invest €6.1bn over the 2013-2017 period.  The company
highlighted that this strong growth plan would be self-financed by current
operations and focussed on development across emerging markets.  This news was
well received by markets and the stock price rose strongly. The Company's
holding contributed positively to performance during the month.

Itron, the smart meter technology company, disappointed the market with their
first quarterly results as they announced a miss on earnings and revenues.  The
company is suffering from declining volumes in the US as stimulus projects roll
off as well as delays to new contracts being awarded in Europe.  The Company's
holding in Itron was the largest detractor from absolute performance as the
market digested this news.

Portfolio Activity
We continued to take profits from the alternative fuels sector rotating this
capital into companies servicing the build out of natural gas infrastructure
across the US.

Outlook
The Company has been positioned to benefit from areas of the New Energy sector
that are experiencing strong near-term growth.

The pain that the Renewable Energy Technology sub-sector has suffered is
showing little sign of imminent relief despite some recent positive newsflow.
The price of a solar module has fallen by over 75% from the start of 2009
rendering many producers loss making.  The solar industry is reaching the point
of consolidation and with a much more competitive cost structure should enjoy
resurgence at some point.  That moment is sufficiently distant in our view for
us to remain cautious on investment in the area and we continue to prefer
opportunities amongst the Renewable Energy Developers.

At the other end of the sector spectrum, and with a contrasting set of industry
fundamentals, lie the Enabling Energy and Infrastructure companies and certain
Energy Efficiency players who are enjoying bumper growth.  The shale gas
revolution and power grid expansion in the US has sparked an investment
up-cycle in energy infrastructure spending which continues to gather momentum.
Energy Efficiency has also benefitted from corporate and government cost
saving - legislation to incentivize the adoption of energy efficiency
technology is a more appealing option to a cash strapped government than
renewable energy subsidy.

We believe that sector valuations are generally attractive, both relative to
history and to broader equity markets, and there is scope for the positive
sector fundamentals to be supported by continued M&A.

At a General Meeting of the Company held on 25 July 2012 shareholders approved
the removal of the requirement for an annual continuation vote and replaced it
with the obligation for the Board to put forward proposals that shareholders be
given the opportunity to elect to receive an amount per share in cash of NAV
less applicable costs, shortly after the AGM in 2014.

15 May 2013

ENDS

Latest information is available by typing www.brneplc.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.

a d v e r t i s e m e n t