Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
An account already exists for this email address, please log in.
Wind is in the sails of BlackRock
With a £100bn plan announced to boost renewable energy in the UK, the BlackRock New Energy Trust is well placed to capitalise – the sector accounts for 40% of its portfolio.
In what is billed the "most dramatic change in our energy policy since the advent of nuclear power", Gordon Brown last week announced a £100bn plan to boost renewable energy in the UK. With wind turbines at the heart of the new strategy, the BlackRock New Energy Trust is in a perfect position to capitalise the sector accounts for 40% of its portfolio.
Robin Batchelor, a geology graduate and BlackRock employee since 1996, manages the fund, which has risen 370% over the past five years against 70% for the FTSE World Index. It invests in firms working on alternative energy technologies, which are undergoing a boom period as oil and gas prices hit hew highs. This helps to improve "the economics for alternative energy", as Batchelor tells the FT. He likes the wind sector, which he sees as the "affordable, low-carbon, scalable power generation technology of choice".
Buoyant conditions look set to continue emerging market demand and fragile supply mean the outlook for oil prices remains strong, believes Batchelor. "If China and India were to increase their consumption per person to current US levels, these two countries alone would require 160 million barrels per day, more than twice the world's supply of oil today," he says in Money Marketing.
Start your trial of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Investors clearly agree; the trust trades on a 2.9% premium to its net asset value, a little pricey compared with the one-year average discount of around 1.1%. But for those who want exposure to the sector, it's worth monitoring the trust and buying on any dips.
Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis 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.
