Junior Oils Trust
A Financial Conduct Authority (FCA) authorized and regulated Unit Trust.
The investment objective of the Junior Oils Trust is to provide long-term capital growth from a global portfolio of small to medium capitalisation companies specialising in oil exploration and production. There may be occasions in light of adverse market conditions where the Investment Manager chooses to hold a high level of bonds and government securities.
Why Invest in Oil?
The era of abundant cheap oil is at an end. Even though new reserves are being found in some parts of the world, these are increasingly expensive to deliver to the market due to difficult geological or technical conditions. Growth in reserves in North America, Brazil and Africa is counterbalanced by declines in mature basins such as the North Sea. Global demand, nevertheless, continues to grow at a rapid pace. Emerging and fast-growing economies need increasing amounts of oil to support a rise in living standards. Most forecasters expect that world demand will continue to outstrip supply well into the next decade even though oil-trade flows may change. Furthermore, geopolitical instability, particularly in the Middle-East, upsets some of the world’s largest producers of oil. Oil prices fell sharply and abruptly in late 2014 primarily due to the rapid growth in supply from North American shale projects. The price weakness has caused massive cut-backs in capital expenditure across the industry and this will most certainly lead to a significant drop in supplies, not only from the more costly shale projects but from the longer-term more significant areas such as Canadian tar sands, Arctic oil developments and the Brazilian pre-salt basins. In spite of this short term weakness, it is likely that the price of oil will continue its long-term uptrend with the possibility of super-spikes caused by supply disruption due to geopolitical upheaval.
The fund is advised by Sector Investment Managers Limited (SIM), and authorised and regulated by the FCA.
Angelos Damaskos who is the Principal Adviser, is one of the largest shareholders in SIM. The other fund managed by SIM and advised by Angelos Damaskos is Junior Gold which invests primarily in gold mining companies with benchmark the FTSE Gold Mines index.
Junior Oils Trust was co-founded by Angelos Damaskos and the late Jim Slater on 11th October 2004. Jim Slater’s estate is a founding investor of Junior Oils Trust and shareholder of Sector Investment Managers. For Jim’s biography please visit: www.jimslater.org.uk.