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 Acc29.51-24.75-25.0641.430.96Buy
BlackRock Natural Resources Growth & Income D Acc29.859.7925.9248.972.63Buy
Investec Enhanced Natural Resources I Acc GBP25.158.677.4781.751.19Buy
JPM Natural Resources C Acc41.39-6.99-20.10720.850.64Buy
JPM Natural Resources B Acc41.03-7.70-20.84720.850.42Buy
MFM Junior Oils Trust P24.22-49.84-47.3812.99-Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
BlackRock GF World Energy D4RF GBP20.20-14.923.382,131.15-Buy
BlackRock Natural Resources Growth & Income D Inc29.799.8025.8948.972.63Buy
JPM Natural Resources C Inc41.39-7.03-20.16720.850.66Buy
Pictet Clean Energy I dy GBP35.7727.9580.26583.22-Buy
Schroder ISF Global Energy C Dis GBP16.17-37.14-27.89520.000.29Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Baker Steel Resources Trust71.43-10.56-62.50-27.5749.70Buy
Foresight Solar Limited22.4036.42-7.31105.30Buy
Geiger Counter Ord52.34-20.87-54.47-5.6721.60Buy
Premier Energy&Water Trust Securities PLC Ord37.089.72138.03-4.56172.89Buy
Premier Energy&Water Trust Securities PLC 2020 ZDP 1P6.57----Buy
Tiger Resource Finance PLC Ord 0.1P8.33-60.00-72.69-45.831.20Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Amundi ETF MSCI Europe Energy GBP12.5338.684.7437.55GBXCommodity & EnergyBuy
DB WTI Crude Oil Booster3.47-2.01-70.02-67.36USDCommodity & EnergyBuy
ETFS 1x Daily Short Brent Crude USD-8.26-5.1993.4553.17USDCommodity & EnergyBuy
ETFS 1x Daily Short Natural Gas USD-10.41-24.3579.8016.36USDCommodity & EnergyBuy
ETFS 1x Daily Short WTI Crude Oil USD-4.730.35107.3265.15USDCommodity & EnergyBuy
ETFS 2x Daily Long Brent Crude USD3.24-22.04-93.82-92.86USDCommodity & EnergyBuy
ETFS 2x Daily Long Gasoline USD-1.81-29.80-88.45-84.73USDCommodity & EnergyBuy
ETFS 2x Daily Long Heating Oil USD-0.07-19.60-88.48-88.65USDCommodity & EnergyBuy
ETFS 2x Daily Long Natural Gas USD-5.514.51-93.74-94.55USDCommodity & EnergyBuy
ETFS 2x Daily Long Petroleum USD-0.81-25.98-92.60-91.71USDCommodity & EnergyBuy
ETFS 2x Daily Long WTI Crude Oil USD-4.82-31.51-95.27-94.95USDCommodity & EnergyBuy
ETFS Brent 1mth GBP-0.986.00-59.29-56.06GBXCommodity & EnergyBuy
ETFS Brent 1yr1.52-1.52-57.23-53.60USDCommodity & EnergyBuy
ETFS Brent 2yr-2.73-4.36-52.49-49.19USDCommodity & EnergyBuy
ETFS Brent 3yr-5.41-7.02-49.91-47.10USDCommodity & EnergyBuy
ETFS Brent Crude USD3.82-6.74-68.88-65.24USDCommodity & EnergyBuy
ETFS Energy USD1.71-5.33-66.08-62.46USDCommodity & EnergyBuy
ETFS Heating Oil1.74-6.11-59.51-58.21USDCommodity & EnergyBuy
ETFS Longer Dated Natural Gas8.0711.50-51.20-48.90USDCommodity & EnergyBuy
ETFS Natural Gas GBP-3.6624.53-58.43-56.91GBXCommodity & EnergyBuy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Foresight Solar & Infrastructure VCT PLC D---98.901.11-VCT Specialist Environmental Pre QualifyBuy
Hazel Renewable Energy VCT1 PLC Ord 0.1P-3.2910.3458.04118.10-12.794.85VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT1 PLC A Shs 0.1P-0.508,668.410.104,950.00-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC A Shs 0.1P-0.508,668.410.104,950.00-VCT Specialist EnvironmentalBuy
Hazel Renewable Energy VCT2 PLC Ord 0.1P-3.2910.8958.84117.30-12.194.85VCT Specialist EnvironmentalBuy
Ventus VCT20.2847.22111.21113.20-8.1315.38VCT Specialist EnvironmentalBuy
Ventus VCT 213.5844.96183.1078.20-13.047.72VCT Specialist EnvironmentalBuy

Disclaimer

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