BLACKROCK NEW ENERGY INVESTMENT TRUST PLC: Portfolio Update
BLACKROCK NEW ENERGY INVESTMENT TRUST plc All information is at 31 August 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) -3.3% -0.7% 5.3% 21.7% -39.5% -54.2% Share price -2.8% 0.0% 6.8% 28.0% -42.7% -60.1% Source: BlackRock
At month end Net asset value - capital only (undiluted): 43.16p Net asset value - cum income (undiluted): 43.53p Net asset value - capital only (diluted): 43.16p Net asset value - cum income (diluted): 43.53p Share price: 39.50p Discount to cum income NAV*: 9.26% Subscription share price: 0.250p Net yield**: 0.38% Total assets including current year revenue: £102.28m Gearing: Nil Ordinary shares in issue***: 234,985,619 Subscription shares in issue: 45,614,192
* Discount to NAV based on cum income undiluted NAV. ** Based on a final dividend of 0.15p per share in respect of the year ended 31 October 2012. *** Excludes 11,900,000 shares held in treasury.
Benchmark Sector Analysis Total Assets (%) Country Analysis Total Assets (%)
Enabling Energy & Infrastructure 27.8 USA 31.5 Energy Efficiency 23.2 United Kingdom 8.4 Renewable Energy Developers 22.3 Denmark 8.0 Alternative Fuels 13.7 China 6.7 Renewable Energy Technology 8.8 France 6.7 Net current assets 4.2 Canada 6.6
----- Germany 5.7 100.0 Portugal 3.9 ===== Switzerland 3.3 Finland 3.1 South Africa 2.3 Ireland 2.2 Italy 2.1 Belgium 1.8 Australia 1.6 Brazil 1.1 Japan 0.8 Net current assets 4.2 ----- 100.0 ===== 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 fell by 3.3% in August. For reference, the MSCI World Index returned -4.0% and the WilderHill New Energy Global Innovations, an index that is representative of the sector, lost -4.2% (DataStream, in sterling terms). August saw increased volatility in equity markets as political tension in the Middle East and North Africa escalated. The increased uncertainty took a toll on global equities which posted negative returns. The intensification of the war in Syria prompted a spike in oil prices on fears of contagion to neighbouring countries. On the economic front, data from China and Europe surprised on the upside with PMIs remaining above 50. Leading indicators from the US were slightly more mixed with weak durable orders and a lower than expected Empire State index but strong consumer confidence and significantly better existing home sales. The solar market continued to benefit from the end of the trade dispute between China and Europe and better than expected quarterly results in the industry. Towards the end of July, the European commission and the Chinese government agreed on a minimum price for Chinese solar panels that is only 5% higher than the current average price. This came as a relief as it is likely only to have a limited impact on demand. Despite encouraging developments, we remain selective in our exposure as the sector continues to struggle with over-supply. Performance Stocks exposed to the Chinese solar market were the main beneficiaries of the end of the dispute and names including Trina Solar and Yingli Green Energy were among top contributors to portfolio returns. The increase in the oil price on the back of the political unrest in the Middle East was favourable to our oil-levered holdings, especially in the alternative fuels sector. Shares of Sasol and Oil Search contributed positively to returns over the month. As macroeconomic data beat expectations, confidence started to build in August around a potential recovery in Europe which helped stocks with exposure to the European end market. In the Company, the improving outlook was supportive of our holdings in Kingspan. On the negative side, after a strong run we saw some profit taking in Vestas Wind. The company recently reported solid Q2 results and a change in CEO was generally well received by the market. Itron was also among the worst performers. The company reported poor Q2 results and continued delays in the roll out of smart meters in Europe. Portfolio Activity Over the month, we exited one enabling energy name and took profit from a renewable energy technology stock following strong year-to-date performance. Elsewhere we rotated some of our positions in the energy efficiency space. 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 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 sector and continue to prefer opportunities among the Renewable Energy developers. At the other end of the spectrum, and with some positive momentum due to a more optimistic industrial outlook, lie the Enabling Energy and Infrastructure companies and certain Energy Efficiency players which are enjoying bumper growth. The natural 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. 16 September 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. -0- Sep/16/2013 13:16 GMT