Manager Review
The Investec fund is co-managed by Charles Whall and Tom Nelson, who both started managing the fund at the beginning of 2013.
“The team tends to adjust the sector weightings following their fundamental views on the energy markets. The Investec fund used to have a higher weighting in oil and gas exploration and production companies a year ago, but now it has a stronger focus on integrated businesses in the sector,” he said.
For the Schroder fund, John Coyle and Mark Lacey have been managing the fund together for a decade.
“The Schroders’ team has a stronger growth focus and it tends to pursue a higher beta strategy by maintaining longer term overweighting positions in the upstream sub-sector in oil and gas exploration and production,” he said.
Fees
The latest ongoing charges (OCF) of various share classes of the Investec fund are from 1.93% to 2.68%, and those from the Schroder product range from 1.91% to 2.41%, Ng said.
“Costs of both funds are among the higher end in the sector,” he said.
Conclusion
With a higher sensitivity to oil prices movements, the Schroder fund tends to fit investors who are positive on oil demand. A surge in oil prices would be expected to have a strong positive impact on the fund, Ng said.
On the other hand, the Investec fund would be suitable for investors who would like to include the energy sector in their overall portfolio because the fund is diversified more among various types of businesses. The team would adjust these weightings accordingly through different market conditions, he said.
“For investors who are looking for long-term returns and want to avoid oil price volatility, the Investec fund would be a better option.”
