Fund of the week: a good time to go green
Managers of 'green' funds sometimes seem more interested in jumping on the green bandwagon than in the performance of the fund itself. This fund is a notable exception.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
table.ben-table table { border: 3px solid #2b1083;font: 0.928em/1.23em verdana, arial, sans-serif;}
th { background: #2b1083; padding: 10px 5px;color: white;font-weight: bold;text-align: center;border-left: 1px solid #a6a6c9;}th.first { border-left: 0; padding: 5px 2px;text-align: left;}
tr {background: #fff;}
tr.alt {background: #f6f5f9; }
td { padding: 5px 2px;text-align: center;border-left: 1px solid #a6a6c9;color: #000;vertical-align: center;}td.alt { background-color: #f6f5f9; }td.bold { font-weight: bold; }td.first { border-left: 0; text-align: left;}
Blackrock New Energy Investment Trust's top ten holdings
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 |
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Will “Liberation Day” strike again?
Donald Trump’s 90-day tariff pause comes to an end on 9 July. Can we expect further market turmoil?
-
Israel claims victory in the '12-day war' with Iran
Donald Trump may have announced a ceasefire in the 12-day war between Israel and Iran, but what comes next depends on what happens internally in Iran