HSBC is set to launch a Global Technology fund as part of its Luxembourg Sicav. The fund will be ma...
HSBC is set to launch a Global Technology fund as part of its Luxembourg Sicav.
The fund will be managed by the global technology team of ten specialists based in HSBC's offices worldwide, and will be led by Stephen MacInnes from Vancouver.
The fund will employ a blend of top-down sector and theme analysis with bottom up stock selection, with a particular focus on business cycle analysis characteristic of the company's investment style.
Top-down analysis will examine factors such as global economic conditions, new technology developments and technology spending trends.
Principal stock selection criteria will be the stock's relationship to global themes, the stock's status as an industry leader with a competitive advantage and the quality of management displayed.
The team will work together to shape the overall portfolio while each member will have responsibility for stock selection in specific sub sectors such as semiconductors, IT hardware, IT software, media and telecom services.
The portfolio will be concentrated in 40-60 stocks with a minimum 1% of the portfolio in each stock. Strict monitoring of positions and strong buy/sell disciplines will be used to ensure that stocks are bought or sold if fundamentals change.
Generally around 80% of assets will be invested in large liquid companies with the remainder in mid and small cap stocks. The benchmark will be the MSCI TMT index.
In terms of sectoral positioning, the initial portfolio will be overweight IT hardware, semiconductors and IT software, while underweighting media and telecoms.
Rob Fisher, communications manager at HSBC, said: "We have had a strong global technology capability for some time and this fund should provide a good shop window for them.
It will be a fairly low-key launch and will be marketed primarily to our existing clients at first but will also be sold in Hong Kong and progressively through-out Europe as it becomes registered in individual jurisdictions."
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