BlackRock Energy and Resources Income Trust Plc - Portfolio Update
PR Newswire
London, November 26
| BLACKROCK ENERGY AND RESOURCES INCOME TRUST plc (LEI:54930040ALEAVPMMDC31) | |||||||||||||||||||
| All information is at 31 October 2019 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 | -4.9% | -9.5% | -4.5% | -1.2% | 7.1% | 7.4% | |||||||||||||
| Share price | -5.0% | -9.2% | -8.2% | -2.4% | -2.8% | -4.3% | |||||||||||||
| Sources: Datastream, BlackRock | |||||||||||||||||||
| At month end | |||||||||||||||||||
| Net asset value - capital only: | 73.86p | ||||||||||||||||||
| Net asset value cum income*: | 74.66p | ||||||||||||||||||
| Share price: | 67.80p | ||||||||||||||||||
| Discount to NAV (cum income): | 9.2% | ||||||||||||||||||
| Net yield: | 5.9% | ||||||||||||||||||
| Gearing - cum income: | 10.9% | ||||||||||||||||||
| Total assets: | £94.4m | ||||||||||||||||||
| Ordinary shares in issue: | 114,500,382 | ||||||||||||||||||
| Gearing range (as a % of net assets): | 0-20% | ||||||||||||||||||
| Ongoing charges**: | 1.4% | ||||||||||||||||||
| * Includes net revenue of 0.80p. ** Calculated as a percentage of average net assets and using expenses, excluding any interest costs and excluding taxation for the year ended 30 November 2018. | |||||||||||||||||||
| Sector Analysis | % Total Assets^ | Country Analysis | % Total Assets^ | ||||||||||||||||
| Integrated Oil | 32.9 | Global | 64.8 | ||||||||||||||||
| Diversified Mining | 19.8 | USA | 12.3 | ||||||||||||||||
| Gold | 14.0 | Canada | 11.3 | ||||||||||||||||
| Copper | 10.5 | Australia | 5.3 | ||||||||||||||||
| Exploration & Production | 8.2 | Latin America | 4.2 | ||||||||||||||||
| Industrial Minerals | 4.6 | Asia | 2.1 | ||||||||||||||||
| Silver | 3.5 | Africa | 0.4 | ||||||||||||||||
| Distribution | 2.3 | Net Current Liabilities^ | -0.4 | ||||||||||||||||
| Diamonds | 2.2 | ||||||||||||||||||
| Electricity | 2.0 | ----- | |||||||||||||||||
| Steel | 0.4 | 100.0 | |||||||||||||||||
| Net Current Liabilities^ | -0.4 | ===== | |||||||||||||||||
| ----- 100.0 ===== | |||||||||||||||||||
| ^ Total Liabilities for the purposes of these calculations exclude bank overdrafts, and the net current asset figure shown in the tables above therefore exclude bank overdrafts equivalent to 10.5% of the Company's net asset value. | |||||||||||||||||||
| Ten Largest Investments | |||||||||||||||||||
| Company | |||||||||||||||||||
| Region of Risk | % Total Assets | ||||||||||||||||||
| BHP | Global | 8.6 | |||||||||||||||||
| First Quantum Minerals* | Global | 8.3 | |||||||||||||||||
| Royal Dutch Shell 'B' | Global | 7.0 | |||||||||||||||||
| Barrick Gold | Global | 6.0 | |||||||||||||||||
| BP Group | Global | 5.7 | |||||||||||||||||
| Chevron | Global | 5.3 | |||||||||||||||||
| Exxon Mobil | Global | 4.8 | |||||||||||||||||
| Total | Global | 4.1 | |||||||||||||||||
| ConocoPhillips | USA | 3.8 | |||||||||||||||||
| Rio Tinto | Global | 3.8 | |||||||||||||||||
| *The holding in First Quantum Minerals includes both an equity holding and a holding in several bonds. | |||||||||||||||||||
| Commenting on the markets, Olivia Markham and Tom Holl, representing the Investment Manager noted: | |||||||||||||||||||
| The Company's NAV decreased by 4.9% during the month of October (in Sterling terms). During the month, we saw a degree of thawing in terms of the trade tensions between the US and China. Elsewhere, the yield curve for US 10 year Treasuries reversed and is no longer inverted below the 2 year rate. In other news, at the end of the month, the US Federal Reserve (Fed) cut interest rates to a target range of 1.50% to 1.75%. This was the third rate cut that we have seen from the Fed this year. The Fed also flagged that there are no plans to start raising rates again until they see a significant increase in inflation. In this environment, equity markets posted positive returns, with the MSCI World Index rising by 2.5%. Most mined commodity prices were up over the month. The base metals benefitted from the improvement in the global economic growth outlook, with copper, aluminium and zinc prices up 1.3%, 3.1% and 4.0% respectively. Meanwhile, in the precious metals space, gold and silver prices were up 2.5% and 5.6% respectively as US Dollar weakness provided a tailwind. The bulk commodities were mixed, however, with the coking coal price up 5.2% but the iron ore (62% fe) price off -9.6% to $84/tonne. In the energy sector, the oil price softened, with Brent and West Texas Intermediate (WTI) returning -2.8% and -0.2%, to end the period at prices of $59/bbl and $54/bbl respectively. Natural Gas and Natural Gas Liquids (NGL) prices also continued to weaken during the month, due to an oversupplied market. All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream. 27 November 2019 | |||||||||||||||||||
| ENDS | |||||||||||||||||||
| Latest information is available by typing www.blackrock.co.uk/brci 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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