Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Chuck Jaffe's Money Life Show; Guest: Skip Aylesworth, Manager, Hennessey Gas Utilities Index Fund
Mr Alyesworth mentioned that his index fund (GASFX) is based on NG companies membership in the AGA (American Gas Association). Seems qualifying for this index has a bit to do with your membership dues and lobby efforts. Utilities remain a piece on the monopoly game board. I'm an investor in utilities because I am a user of utilities and much like healthcare I see myself needing their services.
This might be better described as a "managed utility/energy index fund". Once managed by FBR...now part of Hennessey's fund GASFX has had long history of being a "smooth operator" especially with all the volatility in the energy markets. VPU is a true utility index fund (100% Utility)...GASFX blends utilities (61%) with energy (38%) and is more concentrated than VPU. GASFX is also 15 % outside the US. Here are the two funds over the last 10 years:
Here's GASFX 10 yr performance in comparison to oil (USO), Coal (KOL), Natural Gas (UNG), and Energy (XLE):
As an added discussion item: CHP Systems Projects and the companies that provide these systems have political support (law enacted to reduce CO2 emissions and improve electrical generation efficiency) and governmental funding support. Here are some information on these systems:
What are CHP System?: "Combined heat and power or CHP, also called cogeneration or distributed generation, is the simultaneous production of two types of energy – heat and electricity – from one fuel source, often natural gas. The ability to create two forms of energy from a single source offers tremendous efficiency and thus both cost savings and environmental benefits.
The key components of a combined heat and power system are an internal combustion, reciprocating engine driving an electric generator. The clean natural gas fired engine spins a generator to produce electricity. The natural byproduct of the working engine is heat. The heat is captured and used to supply space heating, heating domestic hot water, laundry hot water or to provide heat for swimming pools and spas. The CHP process is very similar to an automobile, where the engine provides the power to rotate the wheels and the byproduct heat is used to keep the passengers warm in the cabin during the winter months" source: americandg.com/clean-energy-technology/cogenerationchp
Maybe the thought here is installing the CHP systems in hotels and hospitals. These systems may provide many benefits...maybe even an interesting "disaster relief" component to these facilities.
Much better choice than the emergency shelter I grew up knowing. My school's basement was equipped with dirty pool water and barrels of dry crackers (remember fall out shelters?).
Comments
Anyway, Here's the AGA's playbook for 2015:
playbook.aga.org/mobile/index.html
This might be better described as a "managed utility/energy index fund". Once managed by FBR...now part of Hennessey's fund GASFX has had long history of being a "smooth operator" especially with all the volatility in the energy markets. VPU is a true utility index fund (100% Utility)...GASFX blends utilities (61%) with energy (38%) and is more concentrated than VPU. GASFX is also 15 % outside the US. Here are the two funds over the last 10 years:
Here's GASFX 10 yr performance in comparison to oil (USO), Coal (KOL), Natural Gas (UNG), and Energy (XLE):
What are CHP System?:
"Combined heat and power or CHP, also called cogeneration or distributed generation, is the simultaneous production of two types of energy – heat and electricity – from one fuel source, often natural gas. The ability to create two forms of energy from a single source offers tremendous efficiency and thus both cost savings and environmental benefits.
The key components of a combined heat and power system are an internal combustion, reciprocating engine driving an electric generator. The clean natural gas fired engine spins a generator to produce electricity. The natural byproduct of the working engine is heat. The heat is captured and used to supply space heating, heating domestic hot water, laundry hot water or to provide heat for swimming pools and spas. The CHP process is very similar to an automobile, where the engine provides the power to rotate the wheels and the byproduct heat is used to keep the passengers warm in the cabin during the winter months"
source:
americandg.com/clean-energy-technology/cogenerationchp
EPA Info:
epa.gov/chp/
Looks like Caterpillar (CAT) is manufacturer of these systems:
3blmedia.com/News/US-EPA-Recognizes-Caterpillar-Award-Winning-CHP-Project
Interesting partnership the CHP industry has with the Hotel and Healthcare lobby groups.
source:
eliteenergysys.com/whatmakesuselite-parteners-and-alliances.aspx
Maybe the thought here is installing the CHP systems in hotels and hospitals. These systems may provide many benefits...maybe even an interesting "disaster relief" component to these facilities.
Much better choice than the emergency shelter I grew up knowing. My school's basement was equipped with dirty pool water and barrels of dry crackers (remember fall out shelters?).
Honda is developing a residential model that can also produce hydrogen for cars.