By James Thorneley and Jenne Mannion Edinburgh Fund Managers is one of five fund management groups w...
By James Thorneley and Jenne Mannion
Edinburgh Fund Managers is one of five fund management groups which are launching technology funds.
The others, all coming out within the next few months are Royal & SunAlliance, Martin Currie, Britannic and Newton.
The Edinburgh Technology fund, managed by Alistair Currie, will be a sub-fund of the group's Oeic. During the fund's launch period of 10 April to 28 April IFAs can expect to receive up to 3.5% commission and 0.75% trail on the Isable and Pep transferable class 'A' shares. After the launch period Edinburgh will keep 0.5% of the initial 3.5% charge with inter- mediaries able to claim up to 3% commission. Renewal commission will be 0.5% of the 1.5% annual management fee. The minimum investment on the class 'A' shares is £2,000. On the 'B' class shares, which have a zero front-end charge, the minimum contribution is £500,000.
Edinburgh UK Smaller Companies fund, which has around 40% of its portfolio in technology stocks, has outperformed both the Aberdeen and Henderson technology unit trusts for the year to 1 March. During the 12 months the fund, managed by Currie, rose by 210% while Aberdeen Technology increased by 178.4% and Henderson Global Technology advanced by 202.5% all on an offer to bid basis.
Initially the Edinburgh Technology fund will be invested in UK stocks. But over time the portfolio will begin to be invested in some European stocks. The investment approach will be bottom-up with no more than 50 companies in the portfolio, which will be benchmarked against the FTSE techMARK index.
Britannic's launch is still around two months away. The fund is likely to be called Britannic New Economies and will be run by the US team headed by Terry Ewing. The portfolio is planned to be slightly more diverse than traditional technology funds and will follow the theme of the new economy.
Newton expects to launch a technology unit trust next month, it will be managed by Trish Bridson who currently runs Newton's North American fund with a strong technology bias. Late last year Bridson said she was positioning Newton's North American fund for a second wave of internet usage, as businesses to business e-commerce increased.
Martin Currie's fund, which is to be domiciled offshore, will invest in global technology stocks and be managed by Grant Wilson. Wilson is a manager on the group's US desk and is known to prefer running relatively concentrated portfolios with the emphasis on stock selection rather than sectors.
Royal & SunAlliance next month is to launch a pan-European technology fund. The group is likely to draw on the expertise of Julian Cooke who was formerly the US tech stock analyst with the group before becoming a North American fund manager.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged