Transition of the portfolio

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About this investment trust

The Company aims to achieve an annual dividend target and, over the long term, capital growth by investing primarily in securities of companies operating in the mining and energy sectors.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Why choose it?

Economic policies across the globe may reinvigorate the performance of commodity companies. Investment in a specialist commodities trust with exposure to a broad range of companies can help deliver dividend income and long-term growth. Diversification and asset allocation may not fully protect you from market risk.

Suited to…

Investors wanting to diversify their portfolios by including commodities and who are targeting dividend income and long-term returns but with a tolerance for market uncertainty and volatility. This means shares prices may rise and fall more frequently.

What are the risks?

  • Capital at risk.The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
  • Overseas investment will be affected by movements in currency exchange rates.
  • Emerging market investments are usually associated with higher investment risk than developed market investments. Therefore the value of these investments may be unpredictable and subject to greater variation.
  • Mining shares typically experience above average volatility when compared to other investments. Trends which occur within the general equity market may not be mirrored within mining securities.
  • Investment strategies, such as borrowing, used by the Trust can result in even larger losses suffered when the value of the underlying investments fall.

Useful information

Fees & Charges

Annual Expenses as at Date: 30/11/2019

Ongoing Charge (including any Performance Fee): For the year to 30 November 2019, the Company’s Ongoing Charges were 1.45% of net assets. With effect from 17 March 2020, the Manager has agreed to cap the Company’s Ongoing Charges (as defined in the Glossary of the annual report for the year to 30 November 2019) at 1.25% of net assets. Based on current levels of estimated expenditure, and with the cap applying pro-rata, the Company’s Ongoing Charges are estimated at 1.3% of net assets for the year to 30 November 2020, falling to 1.25% of net assets thereafter.

Management Fee Summary: With effect from 17 March 2020, the Company’s management fee is 80bps on gross assets per annum (previously the fee was 95bps per annum on the first £250 million of gross assets and 90bps per annum thereafter).

  • ISIN: GB00B0N8MF98

    Sedol: B0N8MF9

    Bloomberg: BERI:LN

    Reuters: BERI.L

    Ticker: BERI/LON

  • Name of Company: BlackRock Fund Managers Limited

    Telephone: 020 7743 3000

    Email: cosec@blackrock.com

    Website: www.blackrock.com/uk

    Correspondence Address: Investor Services,

    BlackRock Investment Management (UK) Limited

    12 Throgmorton Avenue

    London

    EC2N 2DL

    Name of Registrar: Computershare PLC

    Registered Office: 12 Throgmorton Avenue

    London

    EC2N 2DL

    Registrar Telephone: +44 (0)370 707 1476

    Place of Registration: England

    Registered Number: 5612963

  • Year End: 30 November

    Results Announced: July (half yearly), January/February (final)

    AGM: March

    Dividends Paid: April/July/October and January (quarterly)

  • BlackRock is aware of a company, "BlackRock Commodities", which is fraudulently claiming to be affiliated to this Company and is quoting the BlackRock Investment Management (UK) Limited London office. "BlackRock Commodities" is not a regulated firm and is not authorised to perform the duties that they currently promote. Please read our latest shareholder communication for further details and an example of the fraudulent communication from "BlackRock Commodities".

Fund manager commentary

31 May 2020

Please note that the commentary below includes historic information in respect of the performance of portfolio investments, index performance data and the Company’s NAV and share performance.

The figures shown relate to past performance. Past Performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

The Company’s NAV increased by 6.9% during the month of May (in Sterling terms).

Global equity markets continued to recover in May as signs of activity restarting and the hopes for antiviral treatments and a vaccine improved equity market sentiment. For reference, the MSCI All Country World Index rose by 4.2%. Elsewhere, tensions between the US and China escalated as markets reacted to China’s move to impose new national security legislation on Hong Kong. China also dropped its annual gross domestic product (GDP) target and instead adopted a target to keep urban unemployment below 6% and promised monetary policy support of credit growth “significantly higher” than last year.

Against this backdrop, oil prices experienced their best month on record, with Brent and WTI (West Texas Intermediate) indices rising by 88.6% and 78.9%, to end the month at prices of $37/bbl and $35/bbl respectively. The oil price was boosted by anticipation of improved demand after some lockdown measures were eased globally, in conjunction with OPEC cuts being implemented. The US oil and natural gas rig count also slipped to 333 by the end of the month, plummeting from 835 in early March. 

Mined commodity prices were up almost across the board as positive economic data from China indicated a recovery in industrial activity. For example, the Caixin China Manufacturing Purchasing Managers’ Index rose to 50.7 in May, up from 49.4 in April. The copper price rose by 3.7% over the month, whilst the iron ore (62% fe) price rose by 21.3% to $102.5/tonne. The iron ore (62% fe) price was boosted by improving steel demand as well as supply concerns as COVID-19 cases began to rise sharply in Brazil.

All data points in US Dollar terms unless otherwise specified. Commodity price moves sourced from Thomson Reuters Datastream.

Information correct as at 16 June 2020. Any opinions or forecasts represent an assessment of the market environment at a specific time and are not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research, investment advice or a recommendation.

 

Portfolio manager biographies

Tom Holl is co-manager of the BlackRock Energy and Resources Income Trust plc and is a member of BlackRock's Natural Resources team. Tom is responsible for the nutrition strategy, the gold and mining sectors and co-manages a number of the team's gold and mining portfolios as well as income strategies. He moved to his current role in 2008, but his service with the firm dates back to 2006. Previously, Tom was a member of the Global Equity team and the Real Estate team. Tom has a degree, with honours in land economy.

Mark Hume is co-manager of the BlackRock Energy and Resources Income Trust plc and is a member of the Natural Resources team within the Fundamental Equity division of BlackRock's Active Equity Group. He is responsible for covering the energy and new energy sectors.

Prior to joining BlackRock in 2017, Mark was an energy portfolio manager at Colonial First State Global Asset Management. He had previously worked at Bank of America Merrill Lunch, Credit Suisse, JP Morgan and Wood Mackenzie as a senior equities analyst covering large-cap energy stocks. He holds a MEng in Petroleum Engineering from Heriot-Watt University, and a BSc in Mathematics from the University of Edinburgh.

Tom Holl profile photo
Tom Holl
Portfolio Manager
Mark Hume profile photo
Mark Hume
Portfolio Manager

Board of directors

All of the Directors are non-executive and are independent of the Investment Manager.

* Denotes Member of the Audit and Management Engagement Committee.

Ed Warner (Chairman) was appointed to the Board on 1 July 2013 and became Chairman on 17 March 2015. Ed is Chairman of Grant Thornton UK LLP's Partnership Oversight Board, LMAX Ltd, HarbourVest Global Private Equity and Air Partner plc. He was previously Chairman of Panmure Gordon & Co Plc and of UK Athletics, and a Non-Executive Director of Clarkson plc, BlackRock Emerging Europe plc (formerly the Eastern European Trust), and Chairman of the Standard Life Private Equity Trust plc. He was also formerly the Chief Executive of IFX Group and of Old Mutual Financial Services UK, Head of Pan European Equities at BT Alex Brown, and Head of Global Research at both NatWest Markets and Dresdner Kleinwort Benson.

Dr Carol Bell* (appointed 1 December 2014) A Non-Executive Director of Tharisa plc, Bonheur ASA, TransGlobe Energy Corporation and a Trustee of the National Museum Wales. Dr Bell was formerly a Managing Director of Chase Manhattan Bank's Global Oil & Gas Group, Head of European Equity Research at JP Morgan and an Equity Research Analyst in the oil and gas sector at Credit Suisse First Boston and UBS. She has also previously been a Non-Executive Director of Petroleum Geo-Services ASA and Ophir Energy plc and a Director of Salamander Energy plc, Hardy Oil & Gas plc, Det norske oljeselskap ASA and Caracal Energy Inc. (now Glencore E&P (Canada) Inc.).

Adrian Brown* (appointed 10 December 2019) Mr Brown is a senior advisor for MJ Hudson Allenbridge. He was formerly an Investment Analyst and Corporate Finance Manager at Morgan Grenfell & Co before joining Pearson plc as a Corporate Resources Executive. In 1992 he joined Boots plc, holding a range of senior roles before returning to work in the financial services sector in 2006 as a Senior Portfolio Manager in the Equity / Multi-Asset Group at AllianceBernstein LP and subsequently at JPMorgan Asset Management, where he was a Managing Director and Client Portfolio Manager in the Global / International Equity Group from 2011 until his retirement in 2018.

Michael Merton* (appointed 13 July 2010) was previously Head of Global Business Services at Rio Tinto and a member of its Executive Committee. Mr Merton has considerable experience in the commodities sector. He is a director of the trustee board of Universities Superannuation Scheme Limited. He was formerly chairman of the J Sainsbury Pension Scheme and its investment committee and non-executive director of Cape plc and a director and trustee of the HALO Trust.

 


Contact

To get in touch contact us on: 
Telephone: 020 7743 3000 
Email: cosec@blackrock.com 

 


 

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