The Foreign & Colonial Pep and Isa Investment Trust is retaining a large exposure to old economy com...
The Foreign & Colonial Pep and Isa Investment Trust is retaining a large exposure to old economy companies over new economy tech stocks.
Graham Ross Russell, chairman of the trust, said: "Although this had a negative effect on portfolio performance when these sectors performed strongly, since the speculative bubble burst one year ago the portfolio's relative performance against its main benchmark, the FTSE All-Share Index, has been very strong."
Julian Cane, fund manager, said the trust's biggest position is in banks, with a lot held in the Bank of Scotland, which over the six months saw its share price rise from £6 to £7, compared with a 10% drop in the market. The trust also has a large position in utilities, with Scottish and Southern Electricity being a good performer, its share price over the same time rising from 540p to 640p.
Although it is underweight in technology, Cane said the trust will be looking closely at the software, hardware and telecom sectors as valuations have come back a long way and are looking attractive. "We do not want to be caught out if the sector does bounce, if there is value there we want to pick it up," he said.
Over six months to 31 March 2001, the NAV declined by 3.8% to 198.06p, compared with a fall of 10.5% in the FTSE All-Share Index. The share price fell by 4.6% to 165.00p.
On 30 September 2000, the company had a loan outstanding of £5.4m, over the six months to 31 March 2001 this was reduced to £11.5m through disposals.
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