Energy strategy exposure: OSK-UOB Energy Fund

I have blogged about energy for several times - started from calling it a bubble to cheer leading after the collapsed in July 2008. I touched on those topics at fairly conceptual level but did not make specific actionable investment idea. One of the things that I am planning to do for Turtle portfolio is to buy into OSK-UOB Energy Fund.

This fund will allow me to have exposure into energy, commodities future and some energy related stocks. As many of you have been reading my thoughts that hard asset exposure is important for the next few years as I am betting on reflation. Why am I so stubborn insisting on reflation and not deflation? It's simply because I know government around the world will do whatever it takes to defeat deflation. I am confident they will win because they have the ultimate weapon -- printing press !

In a nutshell, this fund will have exposure to :
60% of JPMorgan Commmodity Curve Index(JPMCCI) Energy Excess Return Index(Index)
20% of Energy Select Sector SPDR Fund(ETF-XLE)
20% of Powershares WilderHill Clean Energy Portfolio(ETF-PBW)

JPMCCI Index will exposre to about 33 kind of commodities as you can see in below chart.



JPMorgan Index has slight different sector exposure compared to S & P GSCI and DJ-AIGCI. The energy exposure is not as high as S & P GSCI but higher than DJ-AIGCI. Personally I think this is quite a balance index.



XLE Index is basically an ETF that holds large US oil companies like Exxon Mobil, Chevron, ConocoPhilips and etc.



The third component of the fund expose to alternative energy stocks(PBW).