Funds (Global Technology)
In this blog I look at different funds, providing insight for personal investors. The advantage of funds is that they allow retail investors to pool investments so that they can spread risks by having access to a wider portfolio than they otherwise would be able to by themselves.
This blog will focus on funds specifically targeted at the Global technology market, with an emphasis on US technology companies such as Microsoft, Facebook and Alphabet (Google). For private investors in the UK, it can be expensive to invest abroad with higher costs such as currency exchange costs. However, by focusing on the UK in isolation limits your geographical asset allocation. This could increase investment risk but also decrease the potential investment opportunities on offer from foreign markets such as the US.
FUNDS
Three funds that look of interest are Polar Capital Global Technology, Janus Henderson Tech, and AXA Global Tech. I will look at each of the funds' equity allocation in terms of top holdings and how they differ in terms of their product offering.
Polar Capital Global Technology
The fund has a heavy weighting towards Microsoft, with the fund having 7.73% of total asset allocation to the stock. This is relatively high for a fund but highlights a conviction in the stock. If your personal research and hence views align with this, then the fund could be of interest.
Additionally, the fund also allows for investors to have exposure to the Chinese market via the conglomerate Alibaba, the country’s equivalent to Amazon. This allows investors to access the Chinese technology market also, with Alibaba the fund’s second-largest holding of 3.38%.
Top 3 holdings
1. Microsoft Corp.
2. Advanced Micro Devices Inc.
3. Alphabet Inc.
Janus Henderson Technology
This fund actually has a higher conviction in Microsoft, with the fund having a 9.7% allocation to the stock. However, the fund is more focused than Polar Capital Global technology with fewer stocks but as a result, higher allocation per stock.
For example, the second, third and fourth-largest holdings of the fund are Alphabet, Facebook, and Apple with a 9%, 6.10% and 5.60% respectively. This highlights the focus of the fund to a specific selection of stocks.
Alphabet, Facebook, and Apple are actually all part of the US technology stocks group referred to as FAANGs. This allows investors the opportunity to pool investments with others and actually be able to have exposure to a variety of stocks instead of just one or two.
Top 3 holdings
1. Microsoft Corp.
2. Facebook Inc.
3. Apple Inc.
AXA Global Technology
The final fund also has a high weighting towards FAANG stocks, with a weighting of 8.36% to Google Class A stock, 6.22% to Apple and 2.86% to Facebook. Therefore there is little differentiation between the two funds in this regard except the belief in Facebook to drive returns.
The fund however also has a relatively high weighting towards business technology companies such as Visa 4.64%, and Cisco Systems 4.51%. These companies have a focus on credit services and communication equipment respectively, which are perhaps less mainstream than the FAANGs but nevertheless are delivering growth within their respected sectors.
Top 3 holdings
1. Alphabet Inc.
2. Apple Inc.
3. Visa Inc.
GLOBAL TECHNOLOGY
This blog will focus on funds specifically targeted at the Global technology market, with an emphasis on US technology companies such as Microsoft, Facebook and Alphabet (Google). For private investors in the UK, it can be expensive to invest abroad with higher costs such as currency exchange costs. However, by focusing on the UK in isolation limits your geographical asset allocation. This could increase investment risk but also decrease the potential investment opportunities on offer from foreign markets such as the US.
FUNDS
Three funds that look of interest are Polar Capital Global Technology, Janus Henderson Tech, and AXA Global Tech. I will look at each of the funds' equity allocation in terms of top holdings and how they differ in terms of their product offering.
Polar Capital Global Technology
The fund has a heavy weighting towards Microsoft, with the fund having 7.73% of total asset allocation to the stock. This is relatively high for a fund but highlights a conviction in the stock. If your personal research and hence views align with this, then the fund could be of interest.
Additionally, the fund also allows for investors to have exposure to the Chinese market via the conglomerate Alibaba, the country’s equivalent to Amazon. This allows investors to access the Chinese technology market also, with Alibaba the fund’s second-largest holding of 3.38%.
Top 3 holdings
1. Microsoft Corp.
2. Advanced Micro Devices Inc.
3. Alphabet Inc.
Janus Henderson Technology
This fund actually has a higher conviction in Microsoft, with the fund having a 9.7% allocation to the stock. However, the fund is more focused than Polar Capital Global technology with fewer stocks but as a result, higher allocation per stock.
For example, the second, third and fourth-largest holdings of the fund are Alphabet, Facebook, and Apple with a 9%, 6.10% and 5.60% respectively. This highlights the focus of the fund to a specific selection of stocks.
Alphabet, Facebook, and Apple are actually all part of the US technology stocks group referred to as FAANGs. This allows investors the opportunity to pool investments with others and actually be able to have exposure to a variety of stocks instead of just one or two.
Top 3 holdings
1. Microsoft Corp.
2. Facebook Inc.
3. Apple Inc.
AXA Global Technology
The final fund also has a high weighting towards FAANG stocks, with a weighting of 8.36% to Google Class A stock, 6.22% to Apple and 2.86% to Facebook. Therefore there is little differentiation between the two funds in this regard except the belief in Facebook to drive returns.
The fund however also has a relatively high weighting towards business technology companies such as Visa 4.64%, and Cisco Systems 4.51%. These companies have a focus on credit services and communication equipment respectively, which are perhaps less mainstream than the FAANGs but nevertheless are delivering growth within their respected sectors.
Top 3 holdings
1. Alphabet Inc.
2. Apple Inc.
3. Visa Inc.
The key here is to understand that each fund offers its own blend of stocks and it is therefore important to do your own research into the conviction of the fund to see if it aligns with your own views.
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