Global Energy - December Commentary
Jonathan Waghorn Portfolio Manager, Specialist Team
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Will Riley Portfolio Manager, Specialist Team
This is a marketing communication. Please refer to the prospectus, supplement and KID/KIID for the Funds before making any final investment decisions. Past performance does not predict future returns.
OIL
Spot prices broadly flat in November
Brent and WTI spot oil prices ended flat to up $1/bl in November with WTI closing the month at $69/bl and Brent at $74/bl. Tensions in the Middle East eased somewhat as there were steps towards an Israel-Lebanon ceasefire. Meanwhile all eyes were on OPEC+ in the run-up to their December 5 meeting, at which the decision was taken to delay any production increases for a further three months.
NATURAL GAS
International gas prices move higher
International gas prices rose in November, with UK NBP up by $2/mcf to $14.9/mcf and Japanese LNG up $1.3/mcf also to $14.9/mcf. Higher European demand, combined with concerns around Russian gas availability into Eastern Europe in the new year, combined to push prices higher.
EQUITIES
Energy outperforms the broad market in November
The MSCI World Energy Index (net return) rose by 5.1% (USD) in November, beating the MSCI World Index (net return) which rose by 4.6%. Year-to-date, MSCI World Energy is up by 11.2% vs the MSCI World Index up 21.9%.
CHART OF THE MONTH
Sharp draw in European gas inventories in November
A combination of cold weather and low wind speeds across Europe in late October and November resulted in a hike in the demand for gas for power and heating. Total gas in storage remains at a comfortable level, but Europe remains vulnerable to spiking prices through the winter.
European gas withdrawal from storage (Nov, TWh)
Source: Bloomberg; Dec 2024
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The Guinness Global Energy Funds invest in listed equities of companies engaged in the exploration, production and distribution of oil, gas and other energy sources. We believe that over the next twenty years the combined effects of population growth, developing world industrialisation and diminishing fossil fuel supplies will force energy prices higher and generate growing profits for energy companies. The Funds are actively managed and use the MSCI World Energy Index as a comparator benchmark only.
Documentation
The documentation needed to make an investment, including the Prospectus, the Key Information Document (KID) / Key Investor Information Document (KIID) and the Application Form, is available from the website www.guinnessgi.com, or free of charge from:
- the Manager: Waystone Management Company (IE) Limited (Waystone IE), 2nd Floor 35 Shelbourne Road, Ballsbridge, Dublin DO4 A4E0; or,
- the Promoter and Investment Manager: Guinness Asset Management Ltd, 18 Smith Square, London SW1P 3HZ.
Waystone IE is a company incorporated under the laws of Ireland having its registered office at 35 Shelbourne Rd, Ballsbridge, Dublin, D04 A4E0 Ireland, which is authorised by the Central Bank of Ireland, has appointed Guinness Asset Management Ltd as Investment Manager to this fund, and as Manager has the right to terminate the arrangements made for the marketing of funds in accordance with the UCITS Directive.
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In countries where the Funds are not registered for sale or in any other circumstances where their distribution is not authorised or is unlawful, the Funds should not be distributed to resident Retail Clients. NOTE: THIS INVESTMENT IS NOT FOR SALE TO U.S. PERSONS.
Structure & Regulation
The Fund is a sub-fund of Guinness Asset Management Funds PLC, an open-ended umbrella-type investment company, incorporated in Ireland and authorised and supervised by the Central Bank of Ireland, which operates under EU legislation. The Fund has been approved by the Financial Conduct Authority for sale in the UK. If you are in any doubt about the suitability of investing in the Fund, please consult your investment or other professional adviser.
WS Guinness Global Energy Fund
Documentation
The documentation needed to make an investment, including the Prospectus, the Key Investor Information Document (KIID) and the Application Form, is available in English from https://www.waystone.com/our-funds/waystone-fund-services-uk-limited/ or free of charge from:-
Waystone Management (UK) Limited, PO Box 389, Darlington DL1 9UF.
General enquiries: 0345 922 0044
E-Mail: investorservices@linkgroup.co.uk
Waystone Management (UK) Limited is authorised and regulated by the Financial Conduct Authority.
Residency
In countries where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful, the Fund should not be distributed to resident Retail Clients.
Structure & regulation
The Fund is an Authorised Unit Trust authorised by the Financial Conduct Authority.