Bestinvest says
This is one of the few retail fund available to UK investors that provides direct exposure to oil and gas companies. The managers are experienced and have the considerable resources of Investec behind them. The fund is a more cautious way to play the sector, the managers are not looking to invest in small exploration plays but large and mid cap stocks that they believe are undervalued.
At anyone time approximately 70% of the portfolio will consist of core ideas, the balance trading opportunities. Stocks are weighted according to conviction and liquidity. The team conduct all fundamental company research in house, and they have developed a company commodity indicator, which identifies the potential for share price change implied by changes in underlying energy based commodity prices.
The fund has a rough 50/50% weighting to Oil and Gas with the managers increasing exposure to whichever of the two they have the greatest conviction in or where they find the best ideas.