News from our advisers

Our principal specialist energy fund advisers wrote at the end of June:

Our integrated and similar stock exposure (c30%) is comprised of a mix of midand large-cap stocks. Mid-caps are Conoco-Phillips, Statoil, OMV, Hess and Petro Canada. Our three large-caps are Royal Dutch Shell, BP and Chevron. The median price/earnings /(PE) ratio of this group is 10.8x 2007 earnings, which looks cheap when you consider that Exxon is on 12.7x 2007 earnings.

GTI comment: we’ve written enough on energy. Suffice it to say that this is our biggest single theme at present and we are unabashed bulls. All the more so as the energy sector is cheap (see above) and under-represented in global portfolios.