Summary of Investment Objective
The New Energy Fund seeks to maximise total return. The Fund invests globally at least 70% of its total assets in the equity securities of new energy companies. New energy companies are those which are engaged in alternative energy and energy technologies including renewable energy, alternative fuels, automotive and on-site power generation, materials technology, energy storage and enabling energy technologies.
Fund Manager's Report (as at Jul 31, 2010)
The Fund returned 7.5% over the month.
The Fund’s holding in Shaw group was a detractor over the period, as their second quarter results were slightly lower than market expectations. Performance of the Fund was predominantly driven by the Renewable Energy sub-sector, with good returns from Vestas and Iberdrola Renovables. Both companies performed well on the back of good company news and order flows. American Superconductor was also a strong contributor. They raised their full year guidance as a result of a good start to the year and a strong pipeline.
We continue to favour wind within the renewables sector as it is a high-growth, cost-competitive, low carbon and scalable option (and one of the top choices for utilities looking to increase their production capacity). With regards to the solar sector, we have been cautiously adding to positions in those solar companies which are either cost leaders or able to command a premium for their product in niche markets.
We expect the factors constraining growth in the sector, such as reduced debt funding and low electricity demand, to continue to ease through 2010. Recent announcements from China suggest the government will introduce a new 10-year program aiming to make clean energy account for 15% of the total consumption of energy by 2020. Last year renewable energy accounted for 10% of total energy consumption, and recent reports regarding China’s 5-year plan appear to be very supportive of the New Energy sector. The recent oil spill in the Gulf of Mexico has motivated US legislators to review US energy policy which is likely to be beneficial for the New Energy sector.
Fund Fact (as at Jul 31, 2010 )
| Status | Sub-Fund of Luxembourg SICAV |
| Fund Manager | Robin Batchelor/ Poppy Allonby |
| Launch Date | Apr 6, 2001 |
| Base Currency | USD ($) |
| Additional Dealing Currencies | EUR (€), GBP (£) |
| Benchmark | MSCI World (net) |
| Morningstar Sector | Sector - Energy |
| Total Fund Size (m) | USD ($) 2924.8 |
| EUSD Fund Attributes | |
| EUSD Fund Status | out of scope |
| Fees | % |
| Annual Management Fee (A shares) | 1.75 |
| Initial Charge (A shares) | 5 |
| Codes | |
| ISIN | LU0124384867 |
| Bloomberg Equity Ticker - Fund | MERNEWA LX |
| Bloomberg Equity Ticker - Benchmark | NDDUWI |
| Reuters Page Id | BLRKIH |
| Swiss Valoren Number | 1211508 |
| CUSIP | L1049K368 |
| Research Ratings | |
| Morningstar Qualitative Rating | Superior |
| Crosby Forsyth Rating | A |
| S&P Fund Management Rating | AA |
Risk Grading
Low
High
Non-distributing
Important Information
The information on this website is available to Qualified Investors and Professionals in some jurisdictions on a limited private placement basis subject to applicable laws and regulations in the country of distribution. The information is confidential and should not be reproduced or distributed to persons other than the recipient.
The investment objective stated above is a summary of the main objectives of the Fund. Please refer to the BGF prospectus for full details.
A limited range of BGF sub-funds have a distributor status A share class that seeks to comply with UK Distributor Status requirements. Please contact the Manager for more information.
The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment. The fund invests in economies and markets which may be less developed. Compared to more established economies, the value of investments may be subject to greater volatility due to increased uncertainty as to how these markets operate. The fund invests in a limited number of market sectors. Compared to investments which spread investment risk through investing in a variety of sectors, share price movements may have a greater affect on the overall value of this fund. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed.
BlackRock Global Funds (BGF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website. Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised.
Sources: Fund – BlackRock Investment Management (UK) Limited (BIM(UK)L), Indices - Datastream, BIM(UK)L. Quartiles - Standard & Poor's. BIM(UK)L Risk Grading: High Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds with emerging market, small capitalisation, or narrowly focused/concentrated equity mandates, which may restrict liquidity and increase the volatility of returns. It should only be used for comparison with other BlackRock Global Funds (BGF) and, in particular, should not be used in comparison with Funds not provided by BIM(UK)L. The grading is indicative of the level of risk of a particular Fund and is not supposed to be a guarantee of likely returns. If you are in any doubt as to the level of risk that you should take, you should seek Independent Advice. BIM(UK)L Risk Grading: High Risk (on a scale of Low, Medium, Medium/High and High). This grading applies to Funds with emerging market, small capitalisation, or narrowly focused/concentrated equity mandates, which may restrict liquidity and increase the volatility of returns. It should only be used for comparison with other BlackRock Global Funds (BGF) and, in particular, should not be used in comparison with Funds not provided by BIM(UK)L. The grading is indicative of the level of risk of a particular Fund and is not supposed to be a guarantee of likely returns. If you are in any doubt as to the level of risk that you should take, you should seek Independent Advice.Performance is shown as at Jul 31, 2010 in USD on a NAV price basis with income reinvested. Fund performance figures are calculated net of fees.