Fund Management
Martin Currie Changes Global Energy Fund Exposure
Martin Currie is increasing the exposure of its global energy fund to oil services and refining but is increasingly selective about investing in exploration, production and integrated oil and gas companies, citing weakness in these sectors.
The company rebalanced the fund as conditions are more favourable in the services and refining sectors relative to production and exploration, and major oil companies lag behind the recovery, the company said in a press statement.
“The fund is now in an interesting position, owning few of the biggest index players and looking very different to what you would expect from the ‘classic’ energy fund,” said Ruairidh Stewart, co-manager of the fund.
Many production projects stalled due to low oil prices and lack of credit over 2008. However as demand picks up due to economic recovery, particularly in Asia, oil prices have rebounded. In the medium term this should prompt more investment in recovery and production. Oil service companies are well placed to benefit from renewed investment in projects, the company said in a press statement.