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Baring takes five

Baring Asset Management is taking a novel approach to global sector funds with the introduction of the leading sector fund.

This unit trust aims to produce capital growth by investing in financials, technology, healthcare, telecommunications and the media within the fund.

Financials and technology will be the heaviest sector weightings. The financial sector is a good growth prospect at the moment because the ageing population has increased the need for pension provision and the generation needing income in retirement. Technology was chosen despite its volatility, because it is likely to have a great influence on the future. This fund will avoid dot-coms and will concentrate instead on business-to-business software companies that develop e-commerce for other companies.

Technology, media and telecommunicatins (TMT) investors had a bumpy ride last year and some are unwilling to take a gamble in these sectors. But on the positive side, many TMT stocks are currently undervalued and could provide excellent returns if the sector recovers.

The fund is likely to appeal to experienced investors with a long-term view who believe that investing across the five areas is likely to spread the investment risks associated with a single sector.

Of Baring&#39s 18 existing unit trusts, nine have Standard & Poor&#39s fund ratings as at February 9, 2001. The UK growth fund is the best, with an AAA fund rating and Korea trust, portfolio and UK smaller companies are the worst with an A fund rating.


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