The two leading retail energy funds in the UK seem to have small holding in nuclear power companies and hence, may be marginally affected due to the Japanese nuclear disaster.
The recent blast in the Fukushima nuclear plant and the subsequent fear of a core meltdown has been driving global nuclear energy suppliers and manufacturers stocks down.
However, an analysis of the £296.8 million Investec Global Energy OEIC and the £3.4 billion BlackRock World Energy SICAV fund shows insignificant holding of nuclear power stocks.
BlackRock’s portfolio has maximum exposure in the energy exploration and production segment with 48.8 percent share, followed by oil and gas sector with 22.3 percent. It holds a small 3.2 percent of its investments in coal and uranium sector.
The Investec Global Energy fund predominantly invests in the oil and gas sector with 48.2 percent of the portfolio allocation going into oil and gas integrated and 33.2 percent invested in exploration and production. Only 3.5 percent of the total fund is invested in other forms of energy.
Analysts believe that the closure of nuclear power stations in Japan will stimulate demand for thermal coal, oil and gas, which may benefit energy funds in the long run.