A tough decision…

With market imbalances and soaring energy prices, the resources sector is posing a moral dilemma for ethical fund managers

Soaring energy and commodity prices at a time when most cyclical markets are contracting has left fund managers with a difficult choice. Either be overweight in resources or risk underperformance. This is not an easy decision when you consider the resources sector alone accounts for a third of the FTSE All Share index and is arguably near the top of its cycle. For green funds, which tend not to hold resources stocks due to their environmental bias, logic suggests the impact of soaring commodity prices on performance would be more acute. However, the relationship between commodity prices...