SLI's Moore buys into the 'new religion' in the resources sector

Allocated to six companies

Standard Life Investments (SLI) fund manager Thomas Moore has started adding again to the resources sector on the UK Equity Income Unconstrained fund, after reducing the position to zero at the start of 2016, as he said the sector is embarking on a new phase of profitability.

The manager of the £1.2bn fund said he now has 14% allocated to resources after initially taking a small position in Rio Tinto last year and significantly adding to this as he "gained confidence" in the sector. Moore now holds 3% each in Rio Tinto, BP and Royal Dutch Shell, 1.5% each in Anglo American and Glencore, and 2% in mid-cap oil services company Wood Group.  "The mining majors have a focus on improving capital discipline. They are focusing on returns rather than just revenue. We think demand for resources is going up as most of the tough decisions have now been taken," he said...