SVM's McLean optimistic on outlook for resources sector

Colin McLean has taken SVM UK Active to near its maximum allowed exposure to resources firms on expectations of drilling success and M&A.

The £60m fund has 48% in the sector, up from 37% in June and within 2% of its internal upper limit. SVM UK Active has been above the FTSE All Share’s 28.5% weighting all year. The fund has benefitted from one holding, Nautical Petroleum, more than doubling in price since July, while shares in Gulfsands Petroleum and miner Centamin Egypt have also risen. Gulfsands, which makes up 4% of the portfolio, has a handful of drilling prospects over the next six months which, if successful, could attract a second takeover approach this year, McLean said. In March the firm rejected a 350p ...