Two funds to extract big value from big oil

Two high-quality funds from Guinness offer very different ways to invest in the energy industry – and one looks exceptionally cheap now.

Oil workers © Brittany Sowacke/Bloomberg via Getty Images
Oil-drilling activity remains depressed
(Image credit: Oil workers © Brittany Sowacke/Bloomberg via Getty Images)

In the late 1990s when both the oil price and oil shares were languishing, Tim Guinness, then co-CEO of Guinness Flight, was under pressure from colleagues to close their energy fund, which had barely £1m of assets. He resisted, arguing that the sector would recover and he rather fancied running the fund himself, which he did.

Guinness Flight was sold to Investec some years later but Guinness continued to manage the fund, producing great performance and taking assets to over £2bn. In the meantime, he had set up his own investment management company, so when Investec took over the management of what was now its energy fund in 2008, Guinness started his own, the Guinness Global Energy Fund. The previous year, he had launched one of the first alternative energy funds, now Guinness Sustainable Energy fund.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.