Energy

Introduction to Energy

Many people believe that the search for alternative energy sources will be one of the defining investment themes of the next 20 years. Emerging nations are already struggling with pollution and seeking to develop their energy production in a different way to the West. As a result, a number of funds have been launched to exploit this theme.

These may invest exclusively in alternative energy companies, or they may also invest in traditional energy companies that are building alternative energy production from within. Equally, there are a number of thematic funds investing in, for example, power and water.

A lot of these funds will have high weightings to the US, where many of the world's largest and most technically advanced energy companies are found. As they are relatively concentrated, they will tend to show greater volatility than more broadly based equity funds. Energy consumption is often geared to the economic cycle, with consumers tending to use more energy at times of economic expansion. As a result, energy funds often do better in bull market conditions.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. 

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
Artemis Global Energy I Acc37.12-23.54-26.3842.400.94Buy
BlackRock Natural Resources Growth & Income D Acc49.1019.7117.7444.292.94Buy
Investec Enhanced Natural Resources I Acc GBP56.9619.649.1599.831.07Buy
JPM Natural Resources C Acc69.56-2.45-35.36717.470.82Buy
JPM Natural Resources B Acc69.11-3.22-35.72717.470.65Buy
MFM Junior Oils Trust P26.42-44.63-52.7713.60-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
BlackRock GF World Energy D4RF GBP28.84-1.31-1.221,953.53-Buy
BlackRock Natural Resources Growth & Income D Inc49.1019.7817.9344.292.95Buy
JPM Natural Resources C Inc69.48-2.52-35.42717.470.82Buy
Pictet Clean Energy I dy GBP18.4620.3152.05525.36-Buy
Schroder ISF Global Energy C Dis GBP29.81-28.77-33.72465.700.09Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Baker Steel Resources Trust50.00-42.55-72.24-36.6242.60Buy
Foresight Solar Limited10.9923.79-4.02100.70Buy
Geiger Counter Ord49.47-27.55-67.43-9.9419.71Buy
New City Energy Ord17.29-48.22-62.04-15.2715.49Buy
Premier Energy&Water Trust Securities PLC Ord23.6025.17110.96-8.95175.73Buy
Premier Energy&Water Trust Securities PLC 2020 ZDP 1P-----Buy
Tiger Resource Finance PLC Ord 0.1P-14.29-76.00-82.69-45.120.82Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Amundi ETF MSCI Europe Energy GBP26.8431.787.6215.35GBXCommodity & EnergyBuy
DB WTI Crude Oil Booster3.89-10.24-64.61-66.91USDCommodity & EnergyBuy
DB X-Trackers STOXX Europe 600 Oil & Gas UCITS ETF 1C GBP23.5729.674.8112.13GBXCommodity & EnergyBuy
ETFS 1x Daily Short Brent Crude USD-4.44-15.9187.82-USDCommodity & EnergyBuy
ETFS 1x Daily Short Natural Gas USD-18.35-16.0632.3070.31USDCommodity & EnergyBuy
ETFS 1x Daily Short WTI Crude Oil USD-1.86-5.6674.2573.36USDCommodity & EnergyBuy
ETFS 2x Daily Long Brent Crude USD----USDCommodity & EnergyBuy
ETFS 2x Daily Long Gasoline USD-11.03-34.96-84.85-77.92USDCommodity & EnergyBuy
ETFS 2x Daily Long Heating Oil USD-9.90-20.12-87.56-88.26USDCommodity & EnergyBuy
ETFS 2x Daily Long Natural Gas USD----USDCommodity & EnergyBuy
ETFS 2x Daily Long Petroleum USD----USDCommodity & EnergyBuy
ETFS 2x Daily Long WTI Crude Oil USD----USDCommodity & EnergyBuy
ETFS Brent 1mth GBP11.7817.25-57.27-52.93GBXCommodity & EnergyBuy
ETFS Brent 1yr0.94-2.52-55.88-52.19USDCommodity & EnergyBuy
ETFS Brent 2yr0.46-5.29-49.22-45.90USDCommodity & EnergyBuy
ETFS Brent 3yr-0.96-7.13-45.03-43.13USDCommodity & EnergyBuy
ETFS Brent Crude USD-4.08-5.27-67.50-USDCommodity & EnergyBuy
ETFS Energy USD-0.77-6.75-60.06-65.97USDCommodity & EnergyBuy
ETFS Heating Oil-1.94-2.26-57.96-57.87USDCommodity & EnergyBuy
ETFS Longer Dated Natural Gas5.28-0.66-45.35-64.42USDCommodity & EnergyBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC D---100.99-0.98-VCT Specialist Environmental Pre QualifyBuy
Hazel Renewable Energy VCT1 PLC A Shs 0.1P0.508,668.418,668.410.104,949.85-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC Ord 0.1P8.7857.4646.26116.58-8.654.69VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC A Shs 0.1P0.508,668.418,668.410.104,949.85-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC Ord 0.1P20.5458.2646.99111.62-4.584.69VCT Specialist EnvironmentalBuy
Ventus VCT21.0250.00126.68110.46-4.0415.09VCT Specialist EnvironmentalBuy
Ventus VCT 26.5647.31156.8275.70-8.857.61VCT Specialist EnvironmentalBuy

Disclaimer

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