Alliance Capital is to launch its offshore European technology fund on 26 May, aimed at retail and i...
Alliance Capital is to launch its offshore European technology fund on 26 May, aimed at retail and investors seeking long-term capital growth.
As first reported in Investment Week, the ACM European Technology Fund is designed to complement the American finance giant's Luxembourg-based range of funds which boasts an International Technology Fund mainly investing into the US, and an Asian Technology Fund.
There will be three classes of shares issued in US dollars or euros on the fund, which will be marketed entirely through IFAs and direct on Alliance Capital's website.
A-class shares have a discretionary IFA commission of up to 6.25%, but have no front end charge. B-class shares have an IFA commission of 4%, and although they have no initial charge there is a redemption fee of 4% in the first year of the investment, 3% in the second year, 2% in the third year, and 1% in the fourth year.
There is no initial charge on the institutional I-class shares, which have a minimum investment of $1m.
There is a minimum investment of US$2,000 in the A and B share classes. There is an annual renewal of 0.75% on share classes A and B, although one is not available on the I-class shares.
Details of the annual management charges on each of the share classes have not yet been released.
Geoffrey Hyde, senior vice president of global business development at Alliance Capital, which is the USA's largest publicly traded asset manager with US$368bn under management, said: "It is an addition to our family of funds in Luxembourg. It will be run from out of our London office by Leslie Manookian and our team of research analysts that cover technology.
"The timing is good on this launch. We have got access to the markets of Europe and realise there are great things going on. It is now possible to bring the fund out at the current level of stocks and not have to cope with frothy premiums."
He said that investors appetite for technology was still strong and that the fund would focus on areas of the technology, media and telecommunications sectors where Europe had either a position of global leadership, such as in wireless technology, or where it had potential to establish a strong global position.
Manookian, who is senior vice president and director of European research, is also the head portfolio manager of the US$354.54m ACM European Fund.
The ACM European Fund is heavily weighted in technology with Vodafone Airtouch, BSkyB, United pan-European Communications, Nokia, ST Microelectronics, and British Aerospace among the top 10 holdings.
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