Merrill Lynch New Energy

robp

I'm interested in adding a new energy fund to my SIPP for the long term.

This one looks to have made some good progress over the last couple of years, and with oil at a record high, this could make people invest more in new energy companies.

Does anyone have any thoughts regarding this train of thought?

Is there a reason that one should avoid this as an addition to a portfolio?

My current SIPP appears nicely balanced, so I'm looking for something somewhat different to add some more flavour!

Thanks,

Rob

robp

No takers eh? ;o)

Aegis

I don't know anything about the fund...

However, I do think there's a promising future for alternative energy companies sooner or later, so at some point funds with that as a focus will take off. The problem is predicting when it will really start to happen. News sources are constantly telling everyone that switching to alternative supplies is 100% essential right now, but it doesn't really seem to be taken up by many.

All in all, I'm a "maybe" on this one.

See why I didn't reply now?

robp

Thanks Aegis.

You confirmed my thoughts really. It's good to hear peoples opinions, so I appreciate your response.

I imagine others would have a similar outlook, so will let this one lie for now and keep an eye on it.

Looks like Neptune Russia will be getting my next wodge!

Rob

Aegis

robp wrote: »

Looks like Neptune Russia will be getting my next wodge!

I was really skeptical about getting into Russia, but since I invested into that fund it's gone from strength to strength. It's actually about the only thing that's kept my portfolio growth going for the last few months.

I recently locked in a few gains and switched out some of the units to another one, but I'm still loving this fund at the moment.

Liz_the_Whizz

Neptune Russia is the top pick of 2008 for Mark Dampier of Hargreaves Lansdown.

I bought into it last year, after which it plummeted but I hung on and over the year returned a 40% increase.

Interesting article in FT giving the political background. Sounds as if the presidential election goes the way the markets want, it could be a very good year:

http://www.ft.com/cms/s/a3050b9e-ae5d-11dc-97aa-0000779fd2ac.html

Could be nice timing for my 2008/9 Stocks and Shares ISA.

wombat42_2

Liz_the_Whizz wrote: »

Neptune Russia is the top pick of 2008 for Mark Dampier of Hargreaves Lansdown.

I bought into it last year, after which it plummeted but I hung on and over the year returned a 40% increase.

Interesting article in FT giving the political background. Sounds as if the presidential election goes the way the markets want, it could be a very good year:

http://www.ft.com/cms/s/a3050b9e-ae5d-11dc-97aa-0000779fd2ac.html

Could be nice timing for my 2008/9 Stocks and Shares ISA.

Around 20 to 25% of Neptune Global Equity is currently in Russia. You might prefer this fund for built in flexibility and diversification.

http://www.h-l.co.uk/fund_research/security_details/sedol/3067905.hl

Liz_the_Whizz

Thanks wombat42 - already got a bit in that one too;) .

Though must admit my favourite global fund last year was Allianz BRIC Stars as it additionally offers exposure to India and especially Brazil, one of last years' best performing markets.

Admittedly more risky than Neptune Global Equity as it is 100% in emerging markets as opposed to c. 40%, but who knows what will be safe in 2008?

wombat42_2

Neptune Global Equity is currently 50% plus in emerging markets and also quite a lot in the resource sector. What i like about Neptune Global Equity is that I am leaving things to the fund manager who may in his judgement shift out of emerging markets completely if necessary but you would have to go to the trouble of using your own judgement of selling BRIC at the right time. I feel comfortable with sticking with Neptune Global Equity for the long term as it has built in diversification and flexibility. I also have other global funds (such as Artemis Global Browth). BRIC may be good for now but it may not be good in a few years time.

takoo

Hi Robp

I have been in ML New Energy from the start - with a now 30p-ish loss (1000). I then bought more at 68p (1000) and am just about breaking even. I bought even more at the sump price of 28p (3000) and am about 2.5 PEG on that.

I reckon that the management have served shareholders well with new energy technology.

Reading the very big picture (where I was when ML started),the UK government have (at last) plus other governments which have, and eventually the USA government will come on board etc etc. It will be disasterous not to keep boosting new energy technologies.

I won't be buying more - new fields are offering discovery etc - have to await ML or others to catch up with another IT in the newer technologies.

Good luck with 2008
Takoo

robp

Thanks Takoo.

I read an interesting article from Slashdot which itself referred to an article in Scientific American magazine, that proposed a change of the US power infrastructure to use Solar and DC power distribution.

They reckon it would require investment of 400 billion dollars (similar to what the US has spent on the latest wars it appears).

Probably not a goer for them, but might spark more interest in alternative power.

With Honda launching the worlds first fuel cell car, things seem to be slowly changing but I bet it won't happen fast.

Good luck,

Rob