Robinson, left, head of private banking, London, for Schroders
Private Bank, and Ray Sumairsingh, sector head, financial
services, ANSA McAL Group.
Photo: JENNIFER WATSON
funds target clientele is not mass retail but
high net worth
to target investors who want to
invest a minimum
as opposed to US$1,000.
If todays global demand for 85 billion barrels of
oil is considered high, Schroders Private Banks Rupert
Robinson figures thats guaranteed to treble in 25
Imagine what that will do to the world price of oil, which
peaked at US$104 and settled at US$102 on Tuesday.
next 25 years is going to treble the world oil demand from
85 billion barrels today to near 250 billion barrels,
said Robinson, head of private banking, London, for Schroders
Schroders International Select Energy Fund has been registered
with the Securities and Exchange Commission (SEC).
The funds target clientele is not mass retail but
high net worth individuals and pension funds.
looking to target investors who want to invest a minimum
of US$10,000 as opposed to US$1,000.
prospectus actually allows investors with US$1,000 to invest,
but the target market is more US$10,000 and up.
were very excited about this fund is it has a very
long track record, Robinson said in an interview last
Schroders has partnered with ANSA Merchant Bank for the
distribution of its investment products and services.
The fund has been registered and is available for purchase
in T&T through the ANSA Merchant Bank, which will handle
all the applications and the cash transfers to Schroders.
The relationship between the two started in 2003, with Schroders
managing money for Tatil Life Assurance Ltd.
is really an extension of that relationship, Robinson
said. What we want to do is to build our brand recognition
Ray Sumairsingh, sector head, financial services, in the
ANSA McAL Group, said ANSA Merchant has targeted institutional-oriented
investors with some individuals in-between.
He said even though the bank has approval from the SEC to
conduct investments with US$1,000, thats a retail
dont really want to be in a retail market. We are
carefully targeting those who have a genuine interest in
investing for the outlook of this particular fund.
The private bank, which recorded unaudited profit before
tax to December 31, 2007, of £392.5 million, has been
managing dedicated energy investments since the 1980s.
initially managed it for a specific Asian institution and
then made that more widely available in Southeast Asia.
the last 15 to 20 years, we have generated returns in excess
of 150 per cent, which compares with the World Energy Index,
which is up 250 per cent.
the last five years, it has generated on average within
the fund over 30 per cent per annum through investment,
which is a fairly attractive level of return, Robinson
Only ten years ago, the world oil price was US$30 a barrel.
think we are at the early stages of the investment cycle,
where generally companies have under-invested for some considerable
period of time.
have got huge demand, you have got too little supply and,
therefore, you have got shortage of capacity.
Robinson spoke of the demand pull from the aggressive industrialisation
programmes of China and India.
Robinson said its certain that a level of speculation
will always be associated with oil prices.
think that you are always going to get a geopolitical premium
associated with oil.
of the themes were playing within our fund, in particular,
is the whole issue of accessibility of oil today.
you look at where a lot of the oil reserves lie, whether
it be in Russia, whether it be in Nigeria, whether it be
in Venezuela, or in other countries where the geopolitical
got Hugo Chavez nationalising all the oil reserves in Venezuela.
Its less about whether there is enough oil to meet
demand and more about accessing the precious resource.
How the fund works
Robinson said investors will own units in the fund, which
comprises no more than 30 global companies that Schroders
has invested in.
fund is valued daily at net asset value reflecting the underlying
holdings of that fund.
Features of the fund:
n It is priced on Bloomberg daily
n Investors will receive monthly fact sheets giving underlying
performance and holdings of the fund
will be total transparency around what we own, what themes
we are playing with in the fund, why it is performing well,
why it is performing less well during periods.
is a high conviction portfolio of no more than 25 to 30
second thing is that it really de-emphasises the big integrated
oil companies, the likes of Exxon Mobil, Chevron, Shell,
BP. We dont think thats where the opportunity
or the value lies.
fund is going down the capitalisation scale, so we are looking
at businesses with market caps of US$100 million upwards.
Big on natural gas
are very big believers in the natural gas story, with advances
in technology now rather than building the pipelines to
turn it into liquid gas, you then transport it. What you
are seeing is a global convergence of gas prices around
you look at our fund and the historical performance relative
to both the index and relative to the competition, we are
consistently number one and by some considerable margins.
Robinson said Schroderswhich has a presence in 27
countrieshas invested more than US$20 billion in energy
companies worldwide on behalf of its clients.
As to the expectations of investing in Schroders International
Select Energy Fund, Robinson said six, even 18 months, is
too short a time to measure success.
is built on relationships and building relationships is
based on trust, respect, integrity, delivering results.
one is to give a measure of success, I think we need to
be having this conversation, probably in three and five