Colonial First State is to launch its Global Technology and Communications Oeic, in early November. ...
Colonial First State is to launch its Global Technology and Communications Oeic, in early November.
The fund will be a mirror version of one launched to the Australian market and managed by Graham Hay and Stephen Arnold, from London since November 1999. Since inception, that fund has returned 68.7%, compared to 24.42% in the MSCI Global Technology and Communications index.
Hay said the fund contains a concentrated portfolio of around 40 holdings. The investment style is flexible and the managers seek long-term growth companies through a bottom-up, research-based investment process seeking companies with strong technology franchises in attractive industries.
Although there is no prerequisite on the market capitalisation size within the portfolio, the Australian fund has ended up skewed toward medium-sized companies, where the managers are identifying some of the strongest growth opportunities.
The fund's investment themes include DSL (digital subscriber lines) which will speed up internet access to the home and office, security of and enterprise storage.
Among key stock bets in the portfolio are Checkpoint Software, the Israeli company which provides firewalls and other security systems. Hay said this company is outsourcing its sales force and delivering on growth expectations, which are above average compared to competitors.
The holding in this company is a play on securing corporate computer networks, Hay believes this is a must as companies open their networks up to customers' suppliers and employees travelling, which will increase in popularity as staff require higher security in their electronic communications, both from remote locations and internally. The fund managers note that storage is growing from an industry which today is $15bn to beyond $50bn by the end of 2003.
This is creating numerous opportunities for companies participating in this industry. Some of the key positions of the fund are EMC, Veritas and QLogic. The managers are based in London and will call on the resources of Colonial's geographic equity teams.
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