Aberdeen Asset Management is offering a 1% discount on its technology fund in the wake of news that ...
Aberdeen Asset Management is offering a 1% discount on its technology fund in the wake of news that Hendersons' technology team is leaving to set up an investment boutique, writes Robert Stock.
However, neither Scottish Equitable Asset Management nor SocGen are currently considering special offers on their technology funds.
Hendersons Global technology is one of the three oldest tech funds having launched in 1984, along with Aberdeen and Scottish Equitable Technology. Alan Torry, fund manager of SocGen Technology, launched the Aberdeen fund in 1982.
Aberdeen will be offering the discount until 31 November.
Jonathan Polin, managing director and head of European sales at Aberdeen, said the discount is in response to a deluge of inquiries from both IFAs and institutional clients currently invested with Hendersons.
The discount will drop the initial charge on the Aberdeen Technology fund to 3.25% with 3% commission for IFAs which can be discounted in full. The annual management fee is 1.5%.
Polin said: "We have been awash with calls from IFAs who are concerned that the Henderson team is going to depart. We have received hundreds of calls. We have never experienced anything like it before.
"Other groups might have had a similar response when William Littlewood left Jupiter, but in this case there are only three of four funds which have a demonstrable track record and of those we have got the longest."
The move comes as Aberdeen has strengthened the technology team with the appointment of Robert Sellar as assistant fund manager to concentrate on pan-European technology stocks.
The Aberdeen Technology Fund, which was launched in February 1982 and is managed by John Pullar-Strecker, is ranked 4 out of 29 funds in the Standard & Poor's Specialist sector with offer to bid returns of 278.5% over the three years to 20 September.
Over the same time period, the Scottish Equitable Technology Fund, which is to be rebranded along with all of Scottish Equitable's funds under the name Aegon later this year, is placed 2 over three years with offer to bid returns of 341.5%.
However Jon Bennett, head of retail fund sales, said: "The way we construct our fund means we see it as complementary to other higher beta technology funds like Aberdeen and Henderson. We have a very risk aware approach which means that a lot of investors will hold our fund as well as an Aberdeen, a SocGen or a Henderson."
According to Standard & Poor's, the Scottish Equitable fund has a volatility of 9.1% compared to the specialist sector average of 10.4%.
Hendersons has a volatility mark of 10.3% and Aberdeen 10.6%.
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£80bn funds under calculation