CF Oceanic Australian Natural Resources Fund Income Units

The shares of resources companies have fallen significantly this year as the extent of the global recession continues to concern stock markets. Shares in the sector’s smaller companies have been especially badly hit, as befits the higher risk part of a sector that is itself higher risk and volatile.

The Oceanic Australian Natural Resources Fund, which invests in smaller companies, has therefore endured a year of poor performance. Dealing in the fund was suspended on Thursday 23rd October by Capita, the fund’s administrators, as low liquidity meant that it wasn’t possible to attach an entirely fair price to some of the fund’s holdings. Dealing in the fund resumed on Tuesday 18th November.

We expect that Oceanic will merge the Australian Natural Resources Fund with their Global Resources Fund in the near future. The Global Resources Fund is more diversified and defensive in nature (although must still be considered a high risk investment) and focuses on large and medium-sized companies. As the name suggests, it also invests globally instead of being confined to Australia. We will be in touch with investors as soon as details regarding any merger become available.

As a result of these events we have removed the Oceanic Australian Natural Resources Fund from the Wealth 150, our list of favourite funds in each sector. We will keep investors updated with any change of opinion.