The £45m Framlington Smaller Companies fund has been rebranded Framlington Nasdaq, to better reflect...
The £45m Framlington Smaller Companies fund has been rebranded Framlington Nasdaq, to better reflect the type of companies it holds in the portfolio, writes Jenne Mannion.
Stephen Kelly has also changed the fund's benchmark from the Russell 2000 to the Nasdaq.
Although there is still scope to hold non-Nasdaq companies in the portfolio, the unit trust is currently 100% invested in Nasdaq. Prior to the changes, the fund was 65-70% invested in this market.
Lesley Hankin, marketing manager at Framlington, said: "The range of investments is far broader now. Nasdaq holds some 5,000 companies, of which 4,500 are smaller companies. The Russell 2000 holds just 2,000 companies.
The fund currently holds 65 stocks, however Kelly is looking to reduce this slightly and will target between 50 and 60 companies in order to hold a more focused portfolio.
Kelly said: "The Nasdaq index was hit quite hard when the correction in technology stocks started back in March. However, in the period since, we have experienced a recovery and the index is now virtually unchanged for the year."
At 26 July, the fund was 27.8% invested in technology, 21.4% in industrials, 17.2% in healthcare, 15.9% in consumer goods, 2.5% in materials, 3.1% in financials and 12.1% in telecoms.
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