Bestinvest says
Since the technology bubble burst in 2000 the vast majority of specialist technology funds failed to stay the course and have subsequently closed and of those that lasted, many have failed to add any consistent relative value. Henderson Global Technology is a rarity having outperformed its benchmark with reasonable consistency. However, this is a large cap approach to the sector and we prefer those technology funds which have a more pragmatic approach to blending large cap with small cap/early stage technology companies. Note performance fee may act as a severe drag on performance.
The investment objective of the Global Technology Fund is to seek long term capital appreciation by investing in a globally diversified portfolio of technology related companies. The Fund aims to take advantage of market trends as they move from one region of the globe to another. The Fund is denominated in US$.
Views on sub-sectors affect allocation but the primary portfolio driver is bottom-up stock selection based on extensive company contacts. Companies are assessed in terms of where they are on the technology life cycle, the managers break this down into, Emerging, "Hot Box", Consolidating, Dominant, Consumer Penetration and Commoditised. There is no set or target allocation amongst these with risk and price potential and ultimately valuation the final determinants. Emerging themes are generally played by a number of small positions.