BlackRock Energy and Resources TrustFind Ratings Reports
- Last Ratings Update:05/31/2018
- Price as of 05/31/2018 :$14.86
- Net Assets:$471.06 Million
- Peer Rank:40 of 102
- Investment Rating:D+
We rate BlackRock Energy & Resources at D+. Negative factors that influence this rating include a well below average total return. The fund invests approximately 100% of its assets in stocks and may be considered for investors seeking a Sector - Energy/Natural Res strategy.
POSITIVES AND RISKS
Total return ranks well below peers over the last three years. The BlackRock Energy & Resources has returned an annual rate of 4.95% since inception. More recently, the fund has generated a total return of -0.54% in the last five years, -0.97% in the last three years, and 21.05% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 18% of them. It has also outpaced 14% of its competitors on a three year basis and 89% of them over the last year for the period ending 5/31/2018. On a year to date basis, BGR has returned 8.71%.
Downside risk has been above average. BGR has a draw down risk of -39.86%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 22.4%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months. As of 5/31/2018, the fund was trading at a price of $14.86, which is 4.9% below its 52-week high of $15.63 and 3.1% above its 52-week low of $14.42.
High expense ratio hinders performance. On total assets of $471.06 million, BGR maintains a high expense ratio compared to its Sector - Energy/Natural Res peers of 1.18% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As BGR is a closed end fund, it has no front end or back end load.
Manager tenure is a net positive but performance record lags managerial peers. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The BlackRock Energy & Resources has been managed by Christopher M. Accettella for the last 6 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 23% of other fund managers.