Rothschild Asset Management's Gary Potter and Robert Burdett are looking to expand the number of fun...
Rothschild Asset Management's Gary Potter and Robert Burdett are looking to expand the number of funds they hold in the recently launched Five Arrows Technology Plus, writes Robert Stock.
Potter and Burdett are planning to add around five new holdings to the current 15 positions in the fund of funds and are considering the addition of regional technology exposure in Asia.
They also believe if a technology rally is to come in the following months it will be led by larger cap stocks and, as a result, are looking to branch out into funds with large cap exposure.
Rothschilds is also watching developments at Hendersons, whose technology team is leaving to set-up an investment boutique. Burdett and Potter are prepared to move their money to the new operation if Hendersons does not establish a credible new technology team.
Potter said: "If technology is going to have a rally from here, it is going to be the big, quality technology companies that will lead it. We have been looking at adding to our positions in the Flemings, Invesco and Scottish Equitable funds to benefit from that.
"We haven't any pure Asian technology exposure yet which is a position that has been proved right by the way the markets have performed but maybe now it is time to put a little bit more into the regional pot."
At launch, he said the fund was positioned with an aggressive strategy which was designed to capture the upside potential of greatly reduced technology valuations. Along with Burdett, he is now looking to broaden the base of the portfolio. Potter added: "The list of holdings in the fund will expand over the next six months as the availability and diversity of technology investment options increases and we meet more of the managers in the technology arena."
The pair are not afraid to make qualitative assessments of new funds, especially as only 20% of their investment universe of more than 120 technology funds worldwide, has a five-year track record. They took positions at launch in new technology funds from Royal & SunAlliance and Edinburgh, each of which make up just under 6% of the fund.
The fund is structured around three themes with 60% considered as a neutral weighting in international/global technology funds. The fund holds around 65% in global funds with the largest weightings in Finsbury Technology, Scottish Equitable Technology, and Framlington International Portfolio technology. The most recent addition to global technology exposure is a 9% stake in the Invesco GT Technology Fund run from New York by Jay Nakahara since 1997.
The other two themes are regional and specialist funds.
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