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Iimia fuelling funds with new energies

Iimia’s multi-manager team has begun to invest in alternative energies across its fund range, predicting that governments will raise taxes on oil firms.

Chief investment officer Nick Greenwood believes the price of oil is going to stay high for some time.

However, he says there is a risk that some governments will want to increase their tax take in order to access some of the higher revenue being generated by oil firms.

As an alternative, he is investing in new energy funds such as the Merrill Lynch new energy tech fund, managed by Poppy Buxton.

Greenwood describes such funds as always promising jam tomorrow but feels that they may now be in a position to deliver.

The Merrill Lynch fund invests in companies such as Vestas Wind Systems, a wind-energy firm, and Can Hydro Developers, a hydroelectric specialist.

Greenwood says: “This is a different way of playing the high oil price. Despite the oil price being at $60 a barrel rather than $30, all this potential being predicted for oil companies may never actually be realised if the governments of countries like Venezuela and Russia decide to raise taxes.

“The profits being factored in to the high valuations of oil companies may not be delivered.”

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