When fund managers launch ‘green’ funds, they can sometimes seem more interested in the marketing opportunities to be gained by jumping on the green bandwagon than in the performance of the fund itself. The Blackrock New Energy Investment Trust (LSE: BRNE) is a notable exception. It’s up 67.96% over five years, against a 33.8% rise for its nearest rival, Impax Environmental Markets.
Robin Batchelor and Poppy Allonby, who have managed the fund since launch in February 2000, invest the fund’s assets in new energy companies. That’s green-investment-speak for firms focused on alternative energy technologies such as renewable energy, alternative fuels and energy storage. Up to 25% of the fund’s holdings can be held in unquoted firms, enabling retail investors to get exposure to areas that would normally be closed
to them.
With governments still promoting green technology, even in the downturn, they believe now is a good a time to invest in the sector. For example, Chancellor Alistair Darling has promised to subsidise environmentally friendly industries, while Chinese solar power subsidies and the US economic stimulus package, which included $40bn (£27bn) in clean-energy incentives, have also boosted the sector.
So it’s no surprise to find that 40% of the fund’s assets are invested in US stocks, such as American Superconductor Corp. and Itron, a Washington State-based smart meter company. Up 10.9% year-to-date against a 3% drop for the FTSE 100, the trust levies a pretty standard total expense ratio of 1.5% and trades on a 6.5% discount to net asset value.
Contact: 020-7743 3000.
Blackrock New Energy Investment Trust’s top ten holdings
| Name of holding |
|---|
| American Superconductor Corp |
| Archer-Daniels-Midland Co |
| Climate Exchange VCT Plc |
| FPL Group Inc |
| Gamesa Corporacion Tecnologica SA |
| Iberdrola SA |
| Iberdrola Renovables SA |
| Itron Inc |
| Sasol |
| Vestas Wind Systems |