BlackRock increases coal investments

BlackRock's Daniel Tubbs has increased the £200m Emerging Market fund's exposure to coal companies in the past three months on the view demand for this will soar this winter.

Tubbs has taken the fund’s exposure from a 1% underweight to 1.5% overweight, which he says has boosted performance on the back of rising coal prices. “Demand for coal is going through the roof in China with 70% to 80% of the country’s energy needs met by coal, and demand will be particularly high this season due to the cold winter forecast,” said Tubbs. Tubbs added the constricted supply of coal in Indonesia and Australia following prolonged wet weather is further boosting the rapidly rising price. Brazil is the fund’s largest overweight at 18.8% and Tubbs is continuing to invest ...