Aim: Growth by investing in companies involved in the exploration,development, production, distribution and transportation of energy and companies serving the energy industry
Minimum investment: Lump sum £1,000, monthly £100
Investment split: 100% globally in companies involved in and serving the energy industry
Isa link: Yes
Charges: Initial 5%, annual 1.5%
Commission: Initial 3%, renewal up to 0.5%
Tel: 020 7907 1660
Martin Currie¹s global energy fund is based on the energy component of the company¹s offshore global resources fund and will use the same investmentprocess and strategy. Fund managers Duncan Goodwin and Ruairidh Stewart, who also manage the offshore fund, will fill the portfolio with 30 to 50 of their best ideas.
Capital Trust Financial Management partner Bruce MacFarlane observes that the fund is classified as a specialist fund. “Specialist sector funds are a niche group of funds that offer IFAs and their clients access to a more focused investment approach in sectors such as natural resources or property.
“In this case, the Martin Currie global energy fund aims to provide investors with capital growth by investing in companies whose principle activity is focused on the global energy sector,” says MacFarlane.
He points out that the fund is unconstrained by any benchmark and has a global investment mandate which allows the fund managers to adopt a bestideas and high conviction approach to their asset allocation. “For IFAs looking to give their clients exposure to the global energy market, this fund is well worth their consideration,” says MacFarlane.
The fund charges are regarded as the norm for this sort of fund and MacFarlane feels the fund managers’ track record in this sector confirms their ability to consistently generate alpha for shareholders. He says: “Martin Currie has a well respected and experienced investment team. The fund is managed by Duncan Goodwin and Ruairidh Stewart who have a strong track record in both the natural resource and energy sectors.”
MacFarlane struggles for something negative to say about the fund. “I like this product and feel Martin Currie¹s timing for launch is good. There has been a significant fall in the price of energy companies which now look to offer good stock picking opportunities for the fund management team,” he says. He adds that there is ample historic evidence between an increase in money supply, rising inflation and energy prices.
Considering the potential competitors, MacFarlane says: “There are a number of funds and products which offer exposure in this sector, such as the Investec global energy fund and a range of alternatives such as exchange traded funds.”
Suitability to market: Good
Investment strategy: Good
Adviser remuneration: Average