You are here: Home - News -

M&G to launch Global Tech fund next month

by:
  • 01/10/1999
  • 0
M&G is aiming to launch its Global Technology fund in mid-November and, as revealed in Investment W...

M&G is aiming to launch its Global Technology fund in mid-November and, as revealed in Investment Week, the fund will be managed by Greg Kerr, currently fund manager of the American Recovery fund and head of the US desk

The investment objective is to maximise total return through investment in companies around the world with innovative products, processes or services

These investments will include, but are not restricted to, companies whose provision or use of technology gives them a strategic advantage in the market

Commission for IFAs is 3% initial and 0.5% trail for the Isa version of the fund. For the unit trust there is a choice of 3% initial and 0.5% renewal, or 4.25% initial with no trail commission

The charges on both the Isa and unit trust versions of the fund are a 1.5% annual management fee and a 5% initial fee. There are no withdrawal or exit fees

The portfolio will hold about 55 stocks. The holdings will be in mainly blue-chip technology companies and will include all the major sub-sectors such as software, hardware, telecoms and internet. The largest holdings in the model portfolio are Microsoft, Cisco Systems, EMC Corporation, IBM, Sun Microsystems, Motorola, Rohm, Novellus Systems, Analog Devices and Orange

The geographical split will be 76% in the US, 11% in the UK, 9% in Japan, 3% in Europe and 1% in the Far East. By sector, the portfolio will be 12% in telecom services, 18% in telecom equipment, 21% in hardware, 13% in software, 23% in components, 3% in the media and internet sectors, 4% in biotechnology and 6% in other categories

Kerr said: “My investment philosophy is best described as a forward looking value approach. This means we try to work out what profit a company will be making in five years. We then estimate how much the market will be prepared to pay for those profits which in turn will depend on the consistently and sustainability of the company’s growth

“As a general rule, if we think that over a five-year period we can double our money then we will make the investment. This means that sometimes we will be investing in companies that look cheap based on today’s profits and sometimes we will be investing in companies that look expensive. What we will not do is to buy companies simply because everyone else is buying them

The M&G American Recovery fund is ranked 10 out of 85 funds in the sector over one year to 13 October with a return of 53.4%, according to figures from S&P Micropal. The sector average during that time was 38.7%. Over three years, the fund is 59 out of 81 with a return of 49.8

Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
/IMG/677/300677/imla-39.jpg
Comac places emphasis on investor relations

Investor relations activities are becoming even more critical for hedge funds as regulation requirements and greater demand for information by...

Close