Aim: Growth by investing globally in the energy sector
Minimum investment: Lump sum $1,000, euros 1,000 or currency equivalent
Investment split: 100% in the global energy sector
Place of registration: Luxemburg
Charges: Initial up to 5.25%, annual up to 1.5%,
Commission: Subject to negotiation
Tel: 00352 341342 212
The Schroders global energy fund is a Luxemburg-domiciled Sicav that invests globally in a concentrated portfolio of 20-30 energy companies.
Capital Trust Financial Management partner Bruce MacFarlane says: “This fund is a specialist fund providing IFAs and their clients with exposure to the global energy sector. Global energy and commodity prices have risen sharply over the last couple of years and returns for investors who invested early in this cycle have been excellent.”
MacFarlane feels the fund provides the IFA with a product that is interesting and addresses a topical global theme. “Many IFAs could use it as a talking point when reviewing their clients’ portfolios. The investment strategy is as one would expect from a fund such as this. Also the charges and adviser remuneration are in line with similar funds,” he says.
In MacFarlane’s view, the product and concept are fine. “While the fund shows a launch date of 29006, it uses the track record of the Schroders energy Hong Kong unit trust as a performance proxy to provide a longer-term impressive performance track record back to 1987. “As a global energy fund there is little I could dislike or fault about the product or its performance,” says MacFarlane.
MacFarlane suggests competition could come from Investec global energy fund and other niche market or global energy exchange-traded funds.
“While I don’t see global energy prices falling significantly, I do believe that there is little room for significant upward movement in prices either. Those investing in a global energy fund today may well have missed the majority of the easy money made in the early part of the bull run and would be well placed holding off to see if prices fall back, or investing elsewhere,” he concludes.
Suitability to market: Good
Investment strategy: Good
Adviser remuneration average