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Investec mirrors offshore magic

Investec Asset Management

Global Energy Fund

Type: Oeic

Aim: Growth by investing globally in companies involved in the exploration, production or distribution of oil, gas and other energy sources

Minimum investment: Lump sum 1,000, monthly 100

Investment split: 45% US, 22% Canada, 7% UK, 4% Hong Kong, 4% Brazil, 4% Austria, 11% others, 3% cash

Isa link: Yes

Pep transfers: Yes

Charges: Initial 4.5%, annual 1.5%

Commission: Initial 3%, 0.5% renewal

Tel: 020 7597 1900

Investec Asset Management has established an onshore mirror of its offshore global energy fund which invests globally in the exploration, production and distribution of oil, gas and other energy sources.

Chase de Vere research manager Justine Fearns feels the fund will not appeal to a wide audience but highlights the offshore funds strong track record and experienced fund manager. She says: “Tim Guinness has managed the offshore fund since 1998, with a slight change in 2003 when he set up his own company and continued managing the fund on an investment consultancy basis.”

Fearns points out that the fund is theme driven, with strong stock selection being the only driver to geographical positioning. She says: “Short-term cycles within the longer-term trend for the energy sector are exploited and the fund will be heavily invested in oil stocks.”

Fearns observes that the energy sector is in heavy demand. She says: “The sector is subject to substantial geopolitical influence and potentially huge changes, which can lead to investment opportunities if exploited correctly. The fund will also offer indirect exposure to developing regions, such as China.”

On the drawbacks of the fund Fearns says: “Care needs to be taken that it is being brought to the UK retail market for the right reasons and not only to encourage people to jump on the China bandwagon. That said, I think Investec is bringing this onshore for the right reasons and has a good story to back its decision.”

She also feels the offshore funds increase from $14m to $101m in the 12 months to April 2004 is something to keep an eye on, as the level of funds under management can have an effect on the management of a fund and the potential returns.

Comparing the fund with possible competitors Fearns says: “Although they are very different products, the main competitors will be UK domiciled natural resource funds, such as JPMF natural resources. However, there will also be offshore competition such as Merrill Lynch world energy.”


Suitability to market: Good
Investment strategy: Good
Charges: Average
Adviser remuneration: Average

Overall 7/10


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