Feb 2008 Financial News

ANSA Merchant Bank joins with Schroders

Feb 28, 2008

LOCAL conglomerate ANSA McAL announced this week that its subsidiary, the ANSA Merchant Bank, had consummated a five-year relationship with UK-based Schroders Private Bank by establishing an official partnership.

Under the terms of the arrangement, ANSA Merchant Bank will distribute Schroders investment products and services.

Schroders Private Bank is a family-controlled, global asset management company with US$280.5 billion under management as at 30 September 2007. The company was established in 1804 and is listed on the London Stock Exchange.

At a breakfast meeting on Tuesday, officials of Schroders gave a presentation on the company’s global energy equity mutual fund which is registered for sale on the local market.

In speaking about the global energy fund, Rupert Robinson, the head of private banking at the Schroders office in London, said among the reasons for the focus on the fund was that there was not enough money being spent on proving up reserves and demand for energy was outstripping supply.

He said the energy prices seem to move in 12 to 15-year cycles and that the current cycle began in 2002 which meant there was still considerable investment opportunities to go.

Answering the question why Schroders, Robinson said the global energy mutual fund was “very research driven” with four analysts spread throughout the world, and three managers.

He said while many other energy mutual funds focused on the mega energy companies, Schroders had a different focus because it felt that the margins of the large oil companies would be squeezed by high equipment costs.

Focusing on energy equipment and mid-cap upstream stocks, the mutual fund invested in no more than 30 equities, Robinson said.


Source:
The Trinidad Guardian
Business Section, Page 30
Thursday February 28, 2008