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Main energy funds ‘not greatly exposed to Japan’s nuclear problem’

The two main energy funds open to UK retail investors do not appear to have significant holdings in nuclear power, which may limit their exposure to the ongoing problems in Japan.

As fears of meltdown continue at the quake-hit Fukushima Daiichi nuclear plant in Japan, stocks in several nuclear-linked companies such as uranium miners and reactor suppliers fell on the markets.

However, analysis of the £3.4 billion BlackRock world energy sicav and the £296.8m Investec global energy Oeic show neither has strong holdings in nuclear stocks.

The BlackRock world energy fund holds just 3.2 per cent of its portfolio in the coal & uranium sector. Its strongest holding is exploration & production, which accounts for 48.8 per cent of the portfolio, followed by oil & gas integrated with 22.3 per cent.

Meanwhile, the vast majority of the Investec global energy fund is held in stocks linked to the oil & gas sector. Oil & gas integrated makes up 48.2 per cent of the portfolio and 33.2 per cent is in exploration & production. Only 3.5 per cent portfolio is allocated to other forms of energy.

A number of analysts suggest the problems with Japan’s nuclear reactors could lead to an increase in demand for thermal coal, gas and oil, which may bode well for energy funds.

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