A Top Energy Patch Mutual Fund
If you want exposure to the global energy patch with a natural resources kicker, and that performs year in and year out, look no further than this fund, says Richard C. Young of Intelligence Report.
The New Era Fund (PRNEX) has been a holding of mine for decades. T. Rowe Price created the fund back in 1969, giving investors access to a diversified set of global energy and resources companies.
New Era has a low expense ratio of only 0.67% and no front-end sales loads or 12b-1 marketing fees. New Era's concentration on resources also provides you with a reliable inflation hedge.
About two-thirds of the fund is invested in energy stocks, while the remaining third is invested in mining, agricultural, and diversified resources companies. Loads of research has shown commodity investments to be an effective hedge, both short- and long-term, against the effects of inflation on your portfolio. But you surely recognize this with simple common sense.
Commodities-especially energy resources-are the foundation of the modern economy. Shocks to the money supply will surely affect the prices of basic necessities like oil and agricultural commodities first.
The composition of the New Era Fund's Top Ten holdings includes a new addition to my Common Stock Monster Master List this month: Chevron (CVX), a multinational oil major. Chevron is active in the entire product life cycle of petroleum and natural gas products, including exploration and production, refining and transportation, and the production of petrochemicals.
The oldest part of Chevron was founded as Pacific Coast Oil Company in 1879.