Trinity SMF

The Energy sector is focused on companies that source and develop the raw materials are used in the production of energy and power including oil, gas, coal renewables, nuclear and alternatives. The sector has a large macro influences and commodity prices; oil, gas and coal are it’s main driver. Supply and demand and politics influence these prices. Due to large upfront fixed costs companies in the sector undergo large capital expenditure cycles to fully develop resources.

The Basic Materials Sector is comprised of companies involved with the discovery, development and processing of raw materials. This involves the mining and refining of metals, the production of chemicals and forestry products. Companies in the basic materials sector are sensitive to the business cycle and produce highly commoditised products. The sector is sensitive to supply and demand fluctuations because the price of the underlying raw materials is largely demand driven.

The Consumer sector is made up of staple and discretionary consumer goods companies

The Consumer Staples sector consists of companies which manufacture and market consumer goods such as food, beverages, tobacco and personal & household products. The sector is principally exposed to commodity price volatility, trends in consumer preferences and product differentiation strategies. Unlike other sectors, the demand for products made by consumer staples companies often isn’t adversely affected by an economic slowdown. Therefore, these defensive consumer staple companies have a proven record of stability, making it an appealing sector for investors looking for a “safe-haven” and steady income flows.

The Consumer Discretionary Sector, comprised of a broad set of sub-sectors, is based on our indulgent consumption behaviour. It includes all those businesses that sell giffen or luxury goods and services to the consumer. Therefore, the sector consists of a wide range of different companies, which compete for market share by product differentiation.

Including hospital management, health maintenance organizations, pharmaceutical companies, and biotech firms producing a variety of medical products and devices. The healthcare sector is classed as defensive tends to be quite steady over the business cycle as medical spending is not a discretionary choice largely. The primary driver for success in the industry is innovative research and effective development of a pipeline of new products.

The Financials Industry is composed of banks, insurance and asset managers. The core drivers of value in Financials are interest rates, capital adequacy, liability and asset management, asset quality and profitability. Regulatory changes have greatly impacted Financials, particularly in light of 2008. In comparison to other sectors, it is a highly levered industry because funding after consumer deposits is largely provided for in short term money markets.

The Industrials sector, broadly defined covers automobiles, business services, industrial goods, chemicals and construction. Industrial stocks are highly cyclical, driven by fluctuating GDP particularly investment demand and/or consumer demand. Industrial companies are generating revenue growth primarily through exposure to emerging markets, which have surging investment requirements largely met by the Industrials group.

The Telecommunications Industry spans internet services, fiber optic networks, cable systems and the provision of wireless and satellite communications. Rapid deregulation and innovation has fueled Sector growth in recent years, with successful consolidation playing a key role in driving the Industry forward. The Utilities Sector is comprised of companies such as electric, power, gas and water firms and other integrated providers that are seen as essential household staples. Because utilities require significant infrastructure, these firms often carry large amounts of debt. With a high debt load, utilities companies become sensitive to changes in the interest rate.

The technology sector is the category of stocks which relate to the research, development, manufacture and distribution of technologically based goods and services. This sector contains companies which involve the creation of consumer and commercial electronics, software, computers and services which relate to information technology.