This Investment Trust is a pure play on the mining and energy sector. It has a focus of delivering an income in the region of 5.7% per annum, any growth being secondary to the aims of the strategy. Income is delivered via dividends, fixed income, gearing and options.
The fund has lagged the broader market, but they feel there is a discount between these stocks and the broader global market. This means they believe valuations are very attractive.
In terms of oil prices, they expect these to be around $60. For energy stocks this is important because they are attractively valued against their own history and the broader equity markets. Added to this, many of the businesses have better capital discipline. A stable oil price, attractive valuations and capital discipline, they believe, will help to improve the sector….read more