BlackRock Energy and Resources Income Trust Plc Portfolio Update

 
TIDMBERI 
 
BLACKROCK ENERGY AND RESOURCES INCOME INVESTMENT TRUST PLC (LEI: 
54930040ALEAVPMMDC31) 
 
All information is at 31 May 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                   -4.4%      -0.8%                   3.6%     -8.8%                      45.2%                                             -5.0% 
 
Share price                       -7.8%      -5.7%                   1.9%     -9.2%                      33.7%                                            -13.6% 
 
Sources: Datastream, BlackRock 
 
At month end 
 
Net asset value - capital only:                                                                 75.63p 
 
Net asset value cum income*:                                                                    76.62p 
 
Share price:                                                                                    70.00p 
 
Discount to NAV (cum income):                                                                     8.6% 
 
Net yield:                                                                                        5.7% 
 
Gearing - cum income:                                                                             6.4% 
 
Total assets:                                                                                   GBP98.5m 
 
Ordinary shares in issue:                                                                  115,580,243 
 
Gearing range (as a % of net assets):                                                            0-20% 
 
Ongoing charges**:                                                                                1.4% 
 
* Includes net revenue of 0.99p. 
^ Includes current year revenue. 
** 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^       Country Analysis                                                                                          % Total^ 
                                         Assets                                                                                                                   Assets 
 
 
Integrated Oil                             29.3       Global                                                                                                        63.1 
 
Diversified Mining                         22.8       USA                                                                                                           11.7 
 
Gold                                       11.0       Canada                                                                                                        10.4 
 
Copper                                      9.6       Latin America                                                                                                  4.4 
 
Exploration & Production                    8.3       Australia                                                                                                      4.2 
 
Industrial Minerals                         4.4       Asia                                                                                                           1.2 
 
Silver                                      3.1       Africa                                                                                                         0.7 
 
Diamonds                                    2.4       Net current assets                                                                                             4.3 
 
Distribution                                2.3                                                                                                                    ----- 
 
Electricity                                 2.0                                                                                                                    100.0 
 
Steel                                       0.7                                                                                                                    ===== 
 
Basic Materials                            -0.2 
 
Net current assets                          4.3 
 
                                          ----- 
                                          100.0 
                                          ===== 
 
^ Total Assets for the purposes of these calculations exclude bank overdrafts, 
and the net current assets figure shown in the tables above therefore excludes 
bank overdrafts equivalent to 6.4% of the Company's net asset value. 
 
Ten Largest Investments 
 
Company 
 
                                                     Region of Risk                                          % Total Assets 
 
BHP                                                          Global                                                     7.2 
 
First Quantum Minerals                                       Global                                                     6.9 
 
Royal Dutch Shell 'B'                                        Global                                                     6.8 
 
BP Group                                                     Global                                                     5.4 
 
Rio Tinto                                                    Global                                                     4.7 
 
Chevron                                                      Global                                                     4.7 
 
Exxon Mobil                                                  Global                                                     4.5 
 
Barrick Gold                                                 Global                                                     3.8 
 
Newmont Mining                                               Global                                                     3.6 
 
Vale - ADS                                            Latin America                                                     3.0 
 
 
Commenting on the markets, Olivia Markham and Tom Holl, representing the 
Investment Manager noted: 
 
 
The Company's NAV decreased by 4.4% during the month of May (in GBP terms). 
 
Global equity markets declined in May, putting a halt to the strong start to 
the year, as the MSCI World Index declined by 5.8%. Protectionist policy from 
the Trump administration led to escalating trade tensions between the US and 
China and also Mexico which affected global growth estimates. In addition, the 
US imposed sanctions on Chinese firm Huawei, placing it on its 'Entity List' 
which restricts its ability to buy and sell hardware, software and services to 
and from US suppliers. Many are fearing that the currently inverted US 
treasuries yield curve points to an imminent recession and economic data 
releases also came out weaker than expected as US and China PMIs (Purchasing 
Managers Index), which provide insight on the direction of their respective 
manufacturing sectors fell on the month, with the former reaching its lowest 
level for almost a decade. 
 
Against this macroeconomic backdrop, concerns around demand led to the price of 
Brent and WTI (West Texas Intermediate) coming under pressure, falling by 8.0% 
and 16.2%, to finish the month at $66/bbl and $53/bbl respectively. Despite 
this negativity, OPEC held a pre-meeting ahead of the full meeting occurring in 
June.  The group stated that they are maintaining production cuts and aiming to 
drive inventories lower, which was a small positive for the oil price. 
 
Most mined commodity prices retreated, with the base metals, which are 
typically more economically sensitive, particularly weak. The copper price was 
off 9.7%, for example, but this appeared to be driven more by speculation in 
the futures market than by supply and demand fundamentals in our view. Iron 
ore, however, continued to perform strongly with the iron ore (62% fe) price 
rising 9.3% over the month, to a near 5-year high of $101/tonne. Production 
stoppages at some of Vale's assets in Brazil following the Brumadinho dam 
rupture, cyclone activity impacting production in Western Australia and falling 
iron ore inventories in China have contributed to the 42.6% rise in the iron 
ore (62% fe) price year-to-date. 
 
All data points in US dollar terms unless otherwise specified. Commodity price 
moves sourced from Thomson Reuters Datastream. 
 
 
18 June 2019 
 
ENDS 
 
 
 
END 
 

(END) Dow Jones Newswires

June 20, 2019 04:36 ET (08:36 GMT)