Credit Suisse Asset Management Funds UK is bringing out a global technology, media and telecoms fund...
Credit Suisse Asset Management Funds UK is bringing out a global technology, media and telecoms fund in the belief that the falls in these sectors present a buying opportunity, writes Leo Bland.
The Oeic fund launches on 29 January and will hold between 90 and 110 stocks. The model portfolio for the fund has around 59% in North America, 16.4% in Europe and 6.7% in Asia, excluding Japan.
Credit Suisse Global TMT will be managed from New York by Scott Lewis and Vincent McBride and the top 10 stocks will include Alcatel and Sun Microsystems.
Lewis said: "Pockets within the technology, media and telecoms sector are now at more realistic valuations since their dramatic fall from hugely inflated prices at the beginning of 2000. Our research-driven, bottom-up investment approach will allow us to pick stocks that will continue to exceed other sectors' growth rates over the long term."
Credit Suisse pointed out that between its peak on 24 March 2000 and 9 January this year Vodafone has fallen by 41.3% while Microsoft has fallen by 53.4% over the same time period. AT&T has seen its share price come down by 61.7% over the period between 24 March and 9 January while Cisco's shares have fallen by 52.8%. Each of these stocks is in the fund's model portfolio.
Lewis said: "January's long overdue interest rate cut of 50 basis points has gone some way to improve the US market environment. Contrary to some predictions an economic downturn will not slow the pace of technology development."
The Oeic is available as a mini or maxi Isa and the initial charge will be discounted for the Isa season by 2%. This will take the initial charge to 3.25% from 5.25%. The annual management fee is 1.5%. The minimum lump sum investment is £1,000 while the minimum regular Oeic investment is £50 a month and £100 a month for Isas. IFA commission on the fund is 3% initial and 0.5% renewal.
The model portfolio of the fund has a 17.5% weighting in telecom equipment and 26.8% in telecom services. Credit Suisse Global TMT also has around 10.14% in software, 7.36% in semiconductors and 7.88% in media. Other model portfolio sector weightings include 4% in computers and devices, 4% in contract manufacturing, 5.3% in healthcare technology, 7% in wireless hardware, 1.86% in tech services and 6.8% in cash.
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