BlackRock Global Dividend Fund on Shell
Thesis
Shell detracted during the quarter as oil prices moderated when geopolitical concerns eased. BlackRock nevertheless describes the company's fundamentals as intact and remained constructive on the position. The fund's view is that supportive long-term industry and fundamental drivers outweigh the near-term pressure created by lower energy prices.
“We remained constructive on the fund’s memory exposure, as well as Shell and BAE, given supportive long-term industry and fundamental drivers.”
Key risks
- Lower oil prices can weigh on energy stocks when geopolitical concerns ease