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BlackRock New Engy (BRNE)

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Monday 15 July, 2013

BlackRock New Engy

Portfolio Update

All information is at 30 June 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)         -3.0%     1.5%     16.0%    21.3%   -39.6%         -55.2%
Share price         -4.4%    -2.6%     14.9%    27.5%   -49.2%         -61.9%
Source: BlackRock
At month end
Net asset value - capital only (undiluted):                    42.16p
Net asset value - cum income (undiluted):                      42.53p
Net asset value - capital only (diluted):                      42.16p
Net asset value - cum income (diluted):                        42.53p
Share price:                                                   37.75p
Discount to cum income NAV**:                                  11.24%
Subscription share price:                                      0.250p
Net yield****                                                   0.40%
Total assets including current year revenue:                  £99.93m
Gearing:                                                          Nil
Ordinary shares in issue***:                              234,970,781
Subscription shares in issue:                              45,629,030

** Discount to NAV based on cum income 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.

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

Enabling Energy & Infrastructure  29.1   USA                            32.6
Renewable Energy Developers       23.3   United Kingdom                  8.4
Energy Efficiency                 22.4   Denmark                         7.6
Alternative Fuels                 13.9   Canada                          7.2
Renewable Energy Technology        7.1   France                          6.6
Net current assets                 4.2   China                           6.3
                                 -----   Germany                         5.2
                                 100.0   Portugal                        3.8
                                 =====   Switzerland                     3.4
                                         Finland                         2.9
                                         Italy                           2.2
                                         South Africa                    2.2
                                         Ireland                         2.0
                                         Belgium                         1.7
                                         Australia                       1.4
                                         Brazil                          1.3
                                         Japan                           0.6
                                         Spain                           0.4
                                         Net current assets              4.2

Ten Largest Investments (in alphabetical order)

Company                            Country of Risk
ABB Reg                            Switzerland
EDP Renovaveis                     Portugal
ITC Holdings                       USA
Johnson Controls                   USA
Johnson Matthey                    United Kingdom
NextEra Energy                     USA
Novozymes                          Denmark
Schneider Electric                 France
Scottish & Southern                United Kingdom
Vestas Wind Systems                Denmark

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

The NAV of the Company declined by 3.0% in June.

For reference, the MSCI World Index returned -2.6% and the WilderHill New
Energy Global Innovations, an index that is representative of the sector, lost
5.0% (DataStream, in sterling terms).

Volatility spiked up again in June following further comments from the US
Federal Reserve on the possible 'tapering' of its quantitative easing program.
This resulted in the majority of equity indices posting a negative performance
for the month. While markets focused on monetary policy, macroeconomic
indicators showed signs of improvement, with US and European data surprising on
the upside.

Regulatory uncertainty was the focus for the new energy industry in June. Spain
announced a new reform to its power market, the fifth in as many years, which
is intended to eliminate the tariff deficit (ie the gap between the cost of
production of energy and the price paid by consumers). This announcement spiked
concerns about the sustainability of the subsidies currently in place. More
clarity is expected in July.

Europe continued its anti-dumping trade case against China, the major supplier
of solar panels. Initial tariffs of 12% were introduced early in the month but
will increase to an average of 48% in early August if a compromise is not
reached. At this level, many planned projects in Europe will be uneconomic and
demand substantially affected, adding further supply to an already
over-supplied industry. We maintain a cautious outlook on the solar industry.

Despite the negative effect of the anti-dumping tariffs, the initial rate of
12% was lower than expected which was supportive of Chinese solar names. In the
portfolio, Yingli Green Energy, Trina Solar and Wacker Chemie were among top
contributors to absolute returns.

Renewed macro concerns led to some weakness in the more economically sensitive
companies in the portfolio such as Schneider Electric and Johnson Controls.

EDP Renovaveis, the Spanish renewable energy producer, was among the worst
performers on the back of the uncertainty surrounding the new Spanish energy

Portfolio Activity
Over the month, we rotated some of our solar holdings as well as some of our
North American energy infrastructure names.

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 approximately 70% from the start of
2009 rendering many producers loss making, and, despite demand growth, the
industry remains over-supplied. We continue to believe that consolidation is
required to create a sustainable industry. We remain cautious on investment in
the space and continue to prefer opportunities among the Renewable Energy

At the other end of the 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 natural gas
revolution and power grid expansion in the US have 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

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 July 2013


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.

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