Slow energy sector momentum hits BlackRock

The after-effects of the credit crunch combined with a lacklustre UN Climate Change Conference have led the BlackRock New Energy trust to underperform, its managers say.

For the six months to 30 April, the trust's NAV increased by 4.5%, compared to a rise of 16.7% in the MSCI World Developed Markets index. The share price also fell 2.3% over the period. Robin Batchelor and Poppy Allonby, the managers of the £117m trust, say there are four major reasons why the new energy sector has underperformed compared to broader equity markets. As well as the lingering effects of the credit crunch and the lack of positive legislation momentum following the UN summit, the managers blame the bureaucracy involved in government stimulus packages and the fall in electr...