This is just prudent diversification. If you work at Google and your personal capital is tied to Tech, go easy on Tech stocks in the retirement account. Bankers who held too many financial services stocks in 2008 saw their 401Ks crater at the same time they lost their jobs.
If the fund is to diversify away from oil, silly to buy oil stocks. If oil does well, they have more in the ground.
Interestingly, I believe this is a part of Eugene Fama's original argument for the value premium (workers buying stocks in industries outside their own).
If the fund is to diversify away from oil, silly to buy oil stocks. If oil does well, they have more in the ground.