Investec Guinness Flight is offering an Isable unit trust version of its offshore Wired Index fund, ...
Investec Guinness Flight is offering an Isable unit trust version of its offshore Wired Index fund, with a 2% discount off the initial charge until the end of April.
The unit trust, to be launched 17 January, features charges of 5% initial and 1.25% annual and offers 3% initial commission to IFAs as well as 0.5% renewal on the unit trust and the Isa. The group launched its Guernsey based dollar-denominated Wired fund earlier in the autumn and already had a US mutual fund version. Since launch the funds have attracted more than US$200m.
The Wired index was created by the US based Wired Magazine to track the growth of companies that are building the new economy, which is characterised by the intelligent use of technology and by rapid business change.
As reported in Investment Week in November, the group was looking to launch a unit trust version because the Guernsey fund was not Isable.
Jamie MacLeod, managing director of Investec Guinness Flight Fund Managers, said: "Globalisation is an accepted phenomenon but this is not reflected in investors' portfolios. Figures from Autif show that only 17% of retail investments in 1999 were invested outside the EU. This launch offers a twofold opportunity - it enables investors to embrace the wider investment parameters of Isas and to tap into the current global investment theme - the emergence of a new economy.
"Unlike traditional technology sector funds, the Wired trust is designed to capitalise upon a much broader investment theme as opposed to opportunities in an individual industry sector.
The portfolio consists of 40 stocks, the new blue chips, spread over eight sectors, which are exploiting technology to radically change the rules of the game in their respective industries."
The group believes the fund will be listed in the Global Growth sector since the aim of the trust is to achieve capital growth.
The unit trust, as with the offshore and US versions, will be managed by Doug Blatch, a quantitative analyst based in Cape Town, South Africa.
The fund has a 25% weighting in electronics and computer hardware, 16.2% in telecommunications, 15.4% in new media and the internet, 13% in financials, 10.2% in retailers and leisure, 7.6% in natural resources/industrials, 7.4% in transport, 4.2% in biotechnology and 1% in other investments. Some of the companies included in the fund are Microsoft, MCI WorldCom, AIG, Cable & Wireless, Sony, Reuters, Wal-Mart, Yahoo and SmithKline Beecham.
The Wired index is not formulated like traditional indices on a straight market capitalisation basis, MacLeod said. The index constituents are market cap weighted up to $10bn, above which their individual weightings in the index are not increased. Stocks which exceed that amount will be top sliced back to an appropriate index weighting.
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