The Lemon Fool

Yes, a couple of months ago when I saw the projected GDP nos for China. Bought for exactly the reasons you state. Bit of a rally since I bought (for once) so surprised it's still at a discount. Welcome counterweight to PFC ....

It's a 10 from me

Dove

Hmmm. I held BERI for a while in 2018 and 2019 and it was a dog, just drifted down. Now since Nov 1 st its shot up from ~60p to ~80p and now it’s close to its 2015 high of ~89p, still trading at a discount and going like a train I can see that. All miners and commodity stocks so likely to be a bumpy ride whatever it does, but personally I wouldn’t buy something now that’s just gone up 33%, but that’s just cautious old me.

Wish you luck with it anyway. A strong recovery in 2021 and maybe it’ll do well.

ATB

Pref

I hold BERI for income.
Topped up a little in recent times.
For me it's also a way of easing into 'renewables' without having to decide which renewables.

V8

Likewise recently bought BERI (76 pence) on basis it does two things for my overall portfolio: a) a small tilt towards some protection if inflation does surprise on the upside in years to come and b) like others, some exposure to the long-term trend towards cleaner energy (as they have announced they will increase exposure to this theme in months and years to come). Other Trusts focusing purely on this are all at a premium so happy to have started position as a discount. A 1% position for me and aim to retain for long-term with an attractive yield. Negatives: it's smaller than I would like for an Investment Trust (Total Assets c. £105m and ideally would like £500m+), but expecting it to grow in size in years to come as its focus attracts more investor interest. Also poor dividend growth record which I hope will improve, but amended focus could see this remaining a challenge. Overall it has a place for me as it is a form of portfolio insurance (a cost I'm happy to pay for) whilst being exposed to a long-term growth market (energy / clean energy and resources). We will see!

88V8 wrote:For me it's also a way of easing into 'renewables' without having to decide which renewables.

So V8, I read your post about holding BERI for its involvement in renewables and I thought, “What is this guy smoking ?. The BERI i know is chock full of miners and commodity stocks and not renewables !”. Checked the latest fact sheet on the AIC dated October 2020, loads of miners and commodity stocks and 4% renewables – thought that can’t be it.

Finally found a Kepler review dated November 2020 which said that the trust had appointed a new co-manager and was adding “energy transition” to their mandate and stocks in that domain now amounted to 31.8% of the portfolio, and when you added exposure to copper producers more like 50%.

So now I can finally see why the trust share price has been improving since November. Shame that the article I found gives no clue as to what renewable energy stocks they’ve been investing in.

This has piqued my interest though and I just might buy some BERI now. (I’m a fan of renewables and dividend stocks generally). So thanks for your thought provoking input !.

ATB

Pref

An update from the managers about the changed strategy: https://www.blackrock.com/uk/individual ... transition

Also see here:

viewtopic.php?f=8&t=25219&p=339852&hilit=brwm#p339852

I have bought into BERI (Blackrock Energy & Resources Income Trust). (Formerly known as Blackrock Commodities & Income Trust)?

It invests in miners, including gold miners, energy including Chevron oil, and renewable energy through Next Era Energy and Vestas Wind.

It certainly enhances the dividend income with a yield of: c 6.0%. Discount to NAV 12.3%

Top Ten holdings:

BHP Group 6.94%
Rio Tinto 4.72%
Barrick Gold 4.64%
Newmont Corp 4.34%
Vale SA ADR 3.57%
Enel Eur 1 3.47%
Chevron Corp 3.45%
First Quantum Minerals Ltd. 7.25% 3.29%
NextEra Energy 2.94%
Vestas Wind 2.71%

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

richfool wrote:Top Ten holdings:

BHP Group 6.94%
Rio Tinto 4.72%
Barrick Gold 4.64%
Newmont Corp 4.34%
Vale SA ADR 3.57%
Enel Eur 1 3.47%
Chevron Corp 3.45%
First Quantum Minerals Ltd. 7.25% 3.29%
NextEra Energy 2.94%
Vestas Wind 2.71%

Hi richfool, Not much in the way of renewables in that list though, not exactly INRG is it !. But at least there’s a decent dividend. I’ll have to watch the video, can’t do it now as I’m in bed and I need the sound on. Interesting anyway, certainly improved the previous lacklustre performance of BERI.

ATB

Pref

Factsheet data...the HL sheet is out of date.

Company Region of Risk % of Total Assets
BHP Global 7.3
Rio Tinto Global 5.2
Vale Latin America 5.2
Freeport-McMoran USA 4.1
First Quantum Minerals* Global 3.8
NextEra Energy USA 3.6
Anglo American Global 3.5
Vestas Global 3.4
Enel Global 3.2
EDP Renovaveis Global 3.0

24th Nov RNS 'portfolio update' is extensive, recent and 'horses mouth' and all that.

W.

A decent dividend yield, but AFAIK it's been static for a long time.
I had BERI for quite a while, along with BRWM thinking they would take the burden off choosing companies in those sectors. I sold out about a year ago as they seemed more like fixed income and my BHP invesment was progressing better. I also wanted to tidy up and reduce the number of investments I had and just go more "generalist" rather than niche.

Whether I should have held on, we'll see.

Arb.

monabri wrote:Factsheet data...the HL sheet is out of date.

Company Region of Risk % of Total Assets
BHP Global 7.3
Rio Tinto Global 5.2
Vale Latin America 5.2
Freeport-McMoran USA 4.1
First Quantum Minerals* Global 3.8
NextEra Energy USA 3.6
Anglo American Global 3.5
Vestas Global 3.4
Enel Global 3.2
EDP Renovaveis Global 3.0

The above was a quote was from a previous post on the other thread. If you go to the HL link/factsheet and then click on the fact sheet (lower right side, under the section "Annual & Interim Reports"), it takes you to the trust's own factsheet, as at 31st October.. The latter gives a much fuller breakdown and listing of holdings, sectors etc.
Or of course one can go to BERI's own website.

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01

https://www.blackrock.com/uk/individual ... nformation

OR, there is a recent RNS here, dated 24th November, though information as at 31st October:
https://www.investegate.co.uk/blackrock ... 0827PE479/

I would think the performance of BERI is being perked up by its exposure to gold, miners, copper etc.

XD today which encouraged me to take a small holding. Dividend slightly under 5% at today’s SP but that’s not too bad. Just hope I don’t regret ignoring my normal aversion to buying anything that has risen substantially in recent days.

ATB

Pref

ReallyVeryFoolish wrote:I had no idea. That's why it's a bit off this morning. Hope I get the divi now then, unexpected little bonus.

Yes but only 1p per share, don’t spend it all at once !.

ATB

Pref

PrefInvestor wrote:

Hi richfool, Not much in the way of renewables in that list though, not exactly INRG is it !. But at least there’s a decent dividend. I’ll have to watch the video, can’t do it now as I’m in bed and I need the sound on. Interesting anyway, certainly improved the previous lacklustre performance of BERI.

ATB

Pref

There is some more info on this thread, here:

viewtopic.php?f=54&t=23626&p=353528#p353528

monabri wrote:
How about BERI (former BRCI) - miners and oil.

https://www.hl.co.uk/shares/shares-sear ... rd-gbp0.01


Wyneric wrote:
Think it's worth pointing out that they recently issued a statement re change of portfolio...basically...

..."The neutral sector weightings of 50% mining and 50% traditional energy in the current composite index will evolve to 40% mining, 30% traditional energy and 30% sustainable energy sector weightings"....

https://www.investegate.co.uk/blackrock ... 4337P77B2/

richfool wrote:Thanks to Monabri and Wyneric for the above suggestion and information. I must admit when you made the suggestion, I already had historical preconceptions of BERI (formerly BRCI) holding lots of oil companies and I wanted to stay away from oil, so I didn't give full thought to your suggestion or indeed the information Wyneric provided in the link.

However, after recently looking at BRWM, I moved on to look at BERI again, only to properly realise its move away from big oil towards sustainable energy, as well as it including some miners,including several gold miners. In addition it currently offers a dividend yield of 6.47% at a discount of 13.35% discount. So to cut the long story short, I've just bought some BERI. I am looking upon the oil exposure as something of a contrarian/recovery play.

So thanks again for the suggestion and sowing the seed.

My holding of BERI is up 20% since then and the dividend locked in at c 6.4%. (Ex dividend today).

richfool wrote:My holding of BERI is up 20% since then and the dividend locked in at c 6.4%. (Ex dividend today).

Hi richfool, IMV it’s not possible to “lock in” a dividend in the way that you’ve described. Yes the yield WAS over 6% when you first bought, but you’ve made a big capital gain since then, but right now your down to less than 5% like me. The yield is just determined by the dividend income over the share price as far as I’m concerned.

Personally for all my holdings I display both the “initial yield” (ie what the yield was at the purchase price) and the “current yield” (ie what the yield is at the current share price). This helps alert me to any holdings that have done well in capital terms but their dividends have not kept pace and I might be better off selling up, taking the capital gain and investing elsewhere.

That’s how I see it anyway !.

ATB

Pref

PrefInvestor wrote:

richfool wrote:My holding of BERI is up 20% since then and the dividend locked in at c 6.4%. (Ex dividend today).

Hi richfool, IMV it’s not possible to “lock in” a dividend in the way that you’ve described. Yes the yield WAS over 6% when you first bought, but you’ve made a big capital gain since then, but right now your down to less than 5% like me. The yield is just determined by the dividend income over the share price as far as I’m concerned.

Personally for all my holdings I display both the “initial yield” (ie what the yield was at the purchase price) and the “current yield” (ie what the yield is at the current share price). This helps alert me to any holdings that have done well in capital terms but their dividends have not kept pace and I might be better off selling up, taking the capital gain and investing elsewhere.

That’s how I see it anyway !.

ATB

Pref

Yes, I do understand and appreciate those points. It rears its head frequently on the HYP board. Nevertheless I would rather have invested my £1 and be receiving a 6.4% return on it, in addition to it now being worth £1.20; as opposed to investing today and having to pay £1.20 to buy a return of 5% for the same stock.

Yes, I know there are those who will say that I am flattering myself by looking at return on cost, but I am mindful of what my £1 investment is earning, as well as the current yield (on value). Yes, in my spreadsheets I (also) monitor the yield on cost, as well as the yield on current value.

ReallyVeryFoolish wrote:Since it's the IT board, I am allowed to say it's total return that counts. It's money, it's fully fungible and it matters not one jot whether it has an income label, or a capital label. It's exactly the same stuff and it doesn't really matter how you count it. The answer's the same.

RVF

Hi RVF, Yes I would totally agree with your comment about total return, and personally in most situations I like to see both income and growth potential in my investment choices. But on the specific topic of yield I see little point telling yourself that you have “locked in” a 6.4% yield when in reality you are actually getting just under 5% because of your capital gain. Your total return figure will of course include both income and growth components.

ATB

Pref

I'd agree that TR is important as well as income. BERI was more or less fixed income but the TR when I sold (from buying in 2015) was -3.59%. During my five years, the TR was either quite negative or only slightly positive, i.e. +2-3%.

That's essentially why I gave up on BERI. BRWM was similar - a negative TR but the ownership was not so long.

I probably sold at the wrong point as usual, but I reckon taking 5 years to decide counts as evolution not revolution.