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Maritime Financial Model Portfolio Report - March 2018 - now available

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London, UK, 01 March 2018:

  • Our model portfolio gained 2.8% between November 2017 and February 2018, outperforming its sector-specific benchmark – Bloomberg’s BI SHIP (down 4.5%) – as a result of the rebound in the dry bulk and LPG shipping stocks. Meanwhile, the performance of the DMFR model portfolio lagged behind that of the global benchmark – the MSCI World Index (up 5.2%) – as we witnessed a disproportionate correction in global shipping stocks since the start of 2018. Our timely increase in allocation to gas shipping stocks benefited the portfolio as value-buying emerged, particularly in the LPG shipping space.
  • In November 2017, we increased our allocation of LPG shipping stocks from 7% to 16% on the back of improving demand-supply fundamentals.
  • The overall LPG vessel fleet is likely to expand 5% in 2018, compared with the average annual growth of 16% in the last two years. We had been confident on the coaster segment since the middle of last year, and our view is substantiated by the increased rates for smaller vessels.
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Gautam Khurana, CFA

Gautam Khurana, CFA

Director, Drewry Maritime Financial Research