Opinion
- Editorial- Commentary
Anthony
Wilson :
Energy Fund most welcome
Over the years, one of the strongest and most consistent
positions that I have taken on this page has been
in support of mechanisms to promote greater ownership
by locals of T&T’s energy assets.
On
November 3, 2005, I wrote a column headlined, “Owning
the oil plantation,” in which I pointed to
several developments that were ongoing at that
time.
These included the signing of a Memorandum of
Understanding between the Government and a group
of local investors calling themselves Trinidad
Energy Investment Ltd (TEIL) who were looking to
establish a new US$650 million ammonia and urea
plant at Point Lisas.
What ever became of them?
In
that column, I wrote, “What’s missing
from the local ownership equation is an energy
mutual fund that would allow the proverbial man-in-the-street
to take his few dollars and invest it for the long
term.
“In a sense, this is a product that one
would have expected the Unit Trust Corporation
to have launched maybe two years ago. Luckily for
us, it is not too late for the UTC people to introduce
such a fund which—because of its marketing
and distribution prowess—is likely to be
a success.
Hmmm.
I wonder if there are any lights on at the UTC
head office?”
Having
called for it on several occasions, I am delighted
that the UTC Energy Fund is finally here.
Having called for a mutual fund that would allow
the “proverbial man-in-the-street” to
invest in it, I do feel somewhat duty-bound to
make an investment.
I
like the concept and wish the fund all the very
best, but I do have some issues (I don’t
do advertisements).
The first thing is that the fee structure seems
quite high.
I understand that this is an equity-based mutual
fund that is investing in one of the most volatile
sectors in the world and that the Energy Fund would
be considered high risk. But even so, one wonders
whether the UTC would reconsider its fee structure?
Just a suggestion.
Also, conceptually, I feel the fund should have
been sold in TT but I can see the logic of the
decision that the UTC took to sell it in US$.
Anthony
Wilson is
an editorial writer with the Trinidad Guardian.
Petroleumworld not necessarily share these views.
Editor's
Note: This article was first publish in Business
Guardian, Sunday,Anthony
Wilson.
Petroleumworld reprint this article in the interest
of our readers.
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Petroleumworld
07/01/07
Copyright ©2006
Anthony
Wilson.
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