What is the Guinness Atkinson Global Energy Fund all about?
The Guinness Atkinson Global Energy Fund is a fund which primarily invests in stocks of companies which are engaged in the production, exploration, discovery or distribution of energy, including the research and development of alternative energy sources.
This fund attempts to gain capital appreciation in the long term by banking on the ever growing energy demand, especially on the energy hungry developing countries like India and China.
Though there are many funds offering investments in the alternative energy mutual funds, the traditional sources of energy through fossil fuels – like oil, natural gas, coal, and other fossil fuels will continue to remain the important energy source for years and decades.
The Guinness Atkinson Global Energy Fund is banking for its performance on the above assumption.
What criteria is followed while selecting companies for investment by Guinness Atkinson Global Energy Fund?
• The Guinness Atkinson Global Energy Fund invests in energy companies worldwide without regard to market capitalization, and in companies domiciled in the U.S. and foreign countries, including, potentially, companies domiciled or traded in emerging markets.
• Energy includes oil, natural gas, coal, nuclear, utilities, and alternative energy. Activities include exploration, discovery, production, and distribution.
What are the risks involved in investments in Guinness Atkinson Global Energy Fund?
Apart from the risk of oil prices cooling off which may lead to prices of these stocks and hence the Guinness Atkinson Global Energy Fund NAV value may go down substantially. There are other risks also. Since the Guinness Atkinson Global Energy Fund invests on a global basis in both foreign and domestic energy companies, there is a forex risk or foreign currency risk. This also relates to geo-political risk, market specific volatility and problems with local taxes and accounting methods.
At the end of the day, investor is concerned about his investment value and its returns (profit/loss). Hence, there are substantial amount of risks involved.
What has been the performance of the Guinness Atkinson Global Energy Fund?
The Guinness Atkinson Global Energy Fund was started in June 2004. Since inception, it has given a return of around 37% (as per their website).
Morningstar has assigned a rating of 3 stars for the Guinness Atkinson Global Energy Fund, which is exactly mid way average for the category.
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What is the expense ratio for Guinness Atkinson Global Energy Fund?
As per their latest prospectus (dated May 30, 2009), the gross expense ratio for Guinness Atkinson Global Energy Fund is 1.34% while the net expense ratio is 1.37%.
On the geographical front, what has been the investment pattern of Guinness Atkinson Global Energy Fund?
The maximum exposure (47%) has been on the US energy companies, followed by Canada (16.6%). Then the remaining countries stand at less than 5% each and are primarily concentrated in Europe and South America.
Where can I get more information on the Guinness Atkinson Global Energy Fund?
| Interested investors can call the Guinness Atkinson Global Energy Fund helpline (toll free from US) 800-915-6566. | Table of Contents |
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