Updated 4th February 2011
Which investment funds have the highest exposure to oil?
Back in October I tweeted a link to a story from the Daily Telegraph which claimed 'Oil price to double' – how private investors can profit.’
The article stated that ‘the risk that oil prices could rise dramatically is worrying the Government so much that officials have been told to carry out an assessment of the likely impact on the economy. Investors, though, will be wondering whether they should increase their exposure – and how to go about it.’
The article neatly summarised a few ways investors can increase their exposure, namely by:
- buying an exchange traded fund (ETF)
- investing in oil company shares
- spread betting
- investing in a suitable investment fund
For the majority of investors the last option would be the route they would choose, particularly if they have existing investments and pensions which give access to numerous invest funds. The first three choices require a certain level of investment knowledge and are arguably riskier options.
So what investment funds give the biggest exposure to oil?
Obviously if you want to chose investment funds based purely on their exposure to oil this is tricky to find out. With over 2,500 retail unit trusts and OEICS out there alone trawling their individual stock constituents would seem an impossible task. But fortunately I’ve done it for you. (Yes, I know I should get out more).
So below is a list of the top 5 unit trusts with the highest exposure to oil producers, refiners and services companies. In addition they have large investments in natural gas:
- Investec - Global Energy – 95.80 % (exposure to oil and natural gas) as at 3rd Feb
- Martin Currie - Global Energy – 69.20% as at 31st Dec
- CF - Walker Crips UK High Alpha – 29.70% as at November
- CF JM Finn - UK Portfolio - 29.00% as at 31st December
- SWIP - UK Advantage– 27.90% as at 3rd Feb
(data according to Financial Express)