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 Reports and Commentary from the Investment World

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Investec Global Energy Fund


Investec Global Energy Fund

Our subscribers quadrupled their money last time we held this fund in our portfolio.

Since the Oil price dived, the unit price of this fund has been hammered. We believe it has been over sold and that the demand for energy is not going away. The oil price has already moved back up above $50 and it will probably go higher this year. This fund can provide a diversified holding of energy companies and it will benefit as energy prices reinflate.

The Fund aims to achieve capital growth by investing in the equity instruments of internationally quoted
companies throughout the world involved in the exploration, production or distribution of oil, gas and other energy sources.

Strategy Overview

The energy sector is an important and distinctive investment area that we believe offers investors a
compelling long-term investment case. In recent years rising demand for energy, and a limited supply of fossil fuels implied strong potential for profits from such energy-based investments. This demand has been driven in particular by the dramatic increase in energy consumption of developing countries, especially BRIC countries.  Meanwhile, in the longer term, relatively fixed supply is likely to pose an increasing upward force on prices as suppliers struggle to meet new demand.

Historically energy equities tend to outperform during significant investment phases such as the current
environment. On current projections of expenditure we believe we are entering one of the longest sustained periods of investment in history.

We believe this positive outlook for energy equities is not reflected in market valuations across a variety of traditional metrics and as such we consider this an excellent opportunity for value investing in the sector.

Top Holdings:
Total SA 9.3%
Royal Dutch Shell 8.1%
Petroleo Brasileiro SA Petr 6.2%
ENI S.P.A. 5.7%
Conocophillips 5.4%
Statoil ASA 4.4%
Baker Hughes Inc. 4.1%
Ultra Pete Corp 3.7%
Weatherford Intl Ltd. 3.6%
Suncor Energy Inc. 3.4%

Fund size: $466.19m
‘A’ Income share class launch date: 25.1.85
Domicile: Luxembourg

Buy Investec Global Energy Fund up to $230


Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.