Liontrust's Bailey cuts oil majors on dividend and oversupply concerns

"Pretty gloomy" sector outlook

Liontrust's Stephen Bailey and Jan Luthman have cut exposure to oil majors to below 1% on their £510.5m Liontrust Macro Equity Income fund despite the recent sterling boost, on a "pretty gloomy" outlook for the sector.

The sector has been rallying since the start of the year, as investors piled into overseas earners and away from domestic-focused stocks following the EU referendum. Year-to-date (to 28 July), the FTSE 350 Oil & Gas Producers index is up 34%, although it has pulled back slightly in July, compared to the FTSE 100 return of 10% over the period, according to FE. Liontrust duo: Buying into miners on price weakness is 'absolutely daft' "There has been a buzz around oil since the Brexit vote as markets have re-priced for a weaker sterling. Investors have been favouring overseas earners, ...