Disclosure – Non-Independent Marketing Communication
This is a non-independent marketing communication commissioned by BlackRock Energy and Resources Income. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.
- Over the year ended 30 November 2020, BERI produced NAV total returns of 13.9% and share price returns of 16.0%. Although a formal mining and energy sector benchmark is not used by the board, to offer context the EMIX Global Mining Index rose by 19.6% and the MSCI World Energy Index fell by 32.6% over the same period.
- The portfolio was realigned in June and the managers increased the portfolio’s emphasis towards energy transition stocks, with the aim that the trust will have up to 30% of NAV invested in this area. This change has already been a significant contributor to returns, as sustainability trends have continued to progress further in 2020 and 2021. This shift comes with a change to the management team, with energy specialist Mark Hume replacing Olivia Markham – who continues to work as co-manager on BlackRock World Mining Trust – in early 2020.
- The income from the underlying companies in the portfolio remained relatively robust. Revenue return for the year was 4.31 pence per share (2019: 3.97 pence), boosted by a one-off corporation tax refund. The current target from the board is to pay quarterly dividends of at least 1.00 pence per share, representing a yield of 5.6% based on the share price of 71.40 pence per share as at 30 November 2020.
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