Sarasin is to launch a technology-based Websar (GB) fund to the UK market at the start of March, wri...
Sarasin is to launch a technology-based Websar (GB) fund to the UK market at the start of March, writes Jenne Mannion.
Minimum lump sum investment is £2,500 and the fund will also be Isable. The front-end charge is 5% plus a 1.75% annual fee. There is 3% front end commission and 0.5% renewal.
Websar (GB), part of Sarasin's Oeic, will mirror the group's existing Luxembourg-Sicav which was launched on 1 October 1999. This fund has raised £77m and produced a return of 33.1% in sterling terms over the three months since launch, according to Sarasin. Websar (GB) will contain a global portfolio of between 50 and 60 blue chip stocks and be managed by Paul Cooper.
Guy Monson, chief investment officer at Sarasin, said Websar (GB) will buy into large cap companies which are aggressively embracing the commercial opportunities provided by the internet in addition to traditional technology stocks. He added that less than 30% of the assets in the Luxembourg portfolio are recognisable as the traditional technology stocks.
The Websar fund will contain four themes. The first is called growth enhancer and contains conventional companies that use the web to boost sales and enhance their strong position in the 'real economy' through a proactive internet strategy. Examples of these are Dixons, Prudential and WH Smith which have coherent web strategies in place, according to Sarasin. Companies under this theme account for 35% of the fund's assets.
The second theme called productivity enhancer, which accounts for 25% of the portfolio, represents those traditional companies using the web to cut costs in the exchange of data, knowledge, products and capital to gain a significant advantage compared to their peer group. Examples in this category include TMP Worldwide which owns the Yellow Pages in the US, Barclays, General Electic, Pearson and Wells Fargo.
The first of the traditional technology themes is the virtual internet companies, those companies that owe their existence to the internet, namely Amazon, Yahoo and Softbank. In total they represent 12% of the fund.
The final theme, worth 17.5% of the fund, is the networked world, those companies that represent the plumbing and content of the e-commerce revolution, for example Legend Holdings, Mannesmann and Vodafone.
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