Southesk: a low cost energy fund: Southesk Energy Limited is a low cost fund that invests in small and medium-sized oil and gas companies

Money Digest, Dec, 1996

Some stocks held by Southesk

Stock                  Symbol  Exchange


Canadian Conquest      CCN     Toronto
Draig Resources Ltd.   DRG     Alberta
Fossil Oil & Gas       FOL     Toronto
Hurrican Hydrocarbons  HHL     Toronto
Newport Petroleum      NPP     Toronto
Oiltec Resources       OLT     Toronto
Palliser Energy        PSR     Toronto
Raider Resources       RDR     Alberta
Saxon Petroleum        SXN     Alberta,
                               Toronto
Westward Energy        WEL     Toronto
Zargon Oil & Gas       ZAR     Toronto

Most small investors put their money in mutual funds that invest in a variety of industries. The main reason for this is that investing in a specific sector, such as energy, requires specialized knowledge. More importantly, it is difficult for a small investor to diversify properly within a sector. But there are ways to overcome this problem.

For instance, if you are interested in investing in the energy sector, you may want to invest in a closed-end fund such as Southesk Energy Limited (Alberta Stock Exchange; SEE, $3.15), Southesk invests in small and medium size energy companies. Energy stocks are bought with a view to selling at a profit within a few months.

Since its inception in June 1994, Southesk has risen almost 50%. To make it attractive to investors from a tax point of view, Southesk proposed to invest 10% of its funds in oil and gas exploration companies. If you are interested in investing in oil and gas companies but lack the resources, time or knowledge to trade, you may want to consider Southesk Energy as an effective, low cost alternative.