Comprehensive View of Energy
Why include the end user? In broad terms, our answer to this question lies in our holistic view of energy. Often, the notion of an energy investment fund focuses on only the supply side of the sector, particularly the upstream segment. Investing in such companies that, for instance, produce oil through fracking horizontal wells or provide rigs to a well pad are undoubtedly core to an energy fund. Similarly, pipeline operators and refiners are a natural fit when considering the constituents of an energy portfolio. Nevertheless, to gain a truly comprehensive view of energy, we believe one must also consider the impact energy has on companies that consume hydrocarbons. By doing so, investors can participate in both the cause and effect issues surrounding energy. In other words, what happens in the energy sector has the potential to impact many other industries. Our approach takes this impact into account by selectively investing across those industries, rather than focusing only on traditional “energy.”
TriLine Index Solutions was founded as a natural evolution of our holistic approach to energy investment, as well as a response to the historic meta-shifts currently occurring throughout the global energy landscape. The dynamics of the energy value chain are shifting in the U.S., requiring a redefinition of “energy investment,” and the value of an oil or gas ETF stock. The index solutions TriLine develops reflect the current reality of innovation in energy production and changing global demand themes, and are focused on differentiated energy indices for passively-managed products.