BlackRock Energy & Resources TrustFind Ratings Reports
- Last Ratings Update:06/30/2016
- Price as of 06/30/2016 :$14.19
- Net Assets:$418.98 Million
- Peer Rank:47 of 121
- 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 4.21% since inception. More recently, the fund has generated a total return of -4.10% in the last five years, -6.21% in the last three years, and -11.15% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 20% of them. It has also outpaced 14% of its competitors on a three year basis and 19% of them over the last year for the period ending 6/30/2016. On a year to date basis, BGR has returned 18.74%.
Downside risk has been above average. BGR has a draw down risk of -55.80%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 23.1%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months. As of 6/30/2016, the fund was trading at a price of $14.19, which is 3.3% below its 52-week high of $14.68 and 5.6% above its 52-week low of $13.44.
High expense ratio hinders performance. On total assets of $418.98 million, BGR maintains a high expense ratio compared to its Sector - Energy/Natural Res peers of 1.26% 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 lacks tenure and 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 only 4 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than just 35% of other fund managers.