S&W's Frikkee returns to ‘highly profitable' commodity giants

Smith & Williamson's Tineke Frikkee is backing oil producers and miners, as global uncertainty creates value opportunities in the sector.

The manager of the £36m S&W UK Equity Income trust has recently added Shell to the portfolio and has been increasing her stake in BP, eight months after deeming it “too soon” to top up. She said the oil majors’ business models make them less vulnerable to oil price moves, which has been especially important in recent months, with the price of Brent crude more than 25% lower since June. “I have put Shell back into my portfolio despite the weakness of the sector globally, as my judgement is driven by prices, which have gone down, alongside beneficial currency moves. Historically, there ...