Dresdner RCM has added a global technology fund to its Luxembourg umbrella. It is a mirror of a simi...
Dresdner RCM has added a global technology fund to its Luxembourg umbrella.
It is a mirror of a similarly-named US fund that has been run out of San Francisco by Walter Price and Huachen Chen for the past four years.
The Dresdner Global Technology fund, currently $76m in size, is a sub-fund of the Luxembourg-domiciled Dresdner Global Distributor fund.
The launch will effectively give UK and European investors access to Price and Chen's fund, which aims to provide long-term capital growth by investing in a portfolio of transferable, equity-related securities of technology companies worldwide.
The UK Financial Services Authority has confirmed its recognition of the fund and it is Dresdner's intention to achieve UK distributor status.
The fund has a minimum investment of £2,500 and an annual management charge of 1.5%. It is not mandated to use a benchmark - indeed it would be hard to find an appropriate one.
Dresdner occasionally measures their fund against the Lipper Science and Technology Index and the Russell Midcap Index, but this is done as a gauge of performance rather than as a tool to help design and manipulate the portfolio.
Other benchmarks Dresdner use for reference include the Hambrecht & Quest Growth Index and the Morgan Stanley High Tech 35 Index. However, along with the new European version of the fund, the company will start to use some of Micropal's indices for comparative purposes.
Over the last four years, for example, the US version of the fund has outperformed the Micropal Offshore Global Technology Sector Index. The index grew 359.8% in the four years to 31 December, while the Dresdner fund achieved 632.2%. This is the equivalent of an annual return of 64.4% for the fund and 46.4% return for the index.
The fund analysis company Morningstar has awarded the fund a five-star rating.
Nick Hodgeson, head of mutual fund sales and marketing at Dresdner RCM in London, said: "This fund has been set up in direct response to requests from our intermediary investors and direct investors. It enables investors to benefit from the growth of technology companies around the world, without being limited to one particular market."
Fund manager Walter Price said: "Technology will remain a dominant theme in world stockmarkets over the next decade. The growth in usage, demand and new applications will continue to provide attractive investment opportunities.
"Dresdner RCM's global research approach is well placed to access these opportunities, especially in Europe, Asia and Japan, where technology-driven change is only just getting underway. Investors have consistently underestimated the growth rates of the best technology companies and we think they will continue to do so."
As of 20 January, the biggest holding by a wide margin was JDS Uniphase at 5.35% of the fund. This was closely followed at 4.76% by Globespan. Check Point Software and E-tek Dynamite comprised 3.72% and 3.15% respectively.
The remaining companies each took up less than 2.5% of the fund each and included companies like Tyco, Veritas, ASM Lithography, Ciena and Applied Materials.
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From 1 March