View more on these topics

Bates urges switch to Global focus from tech

Bates Investment Services is urging investors in higher-risk sectors to switch from technology funds to global focus funds to escape the volatility it believes plagues the TMT sector.

In a move which could sound the death knell for some smaller funds, the firm is recommending clients to ditch funds in the tech, media and telecoms sector as their performance is unlikely to justify the risks they continue to pose.

Head of investments James Dalby says investors in the medium to high-risk categories should instead move into global focus funds – concentrated portfolios free of benchmark and sector constraints – to chase higher returns with half the volatility.

He says focus funds offer a broader base of investments and do not oblige managers to buy certain stocks, allowing them to invest solely in their best bets. This not only dampens volatility, says Dalby, but also allows investors to benefit from any technology rally as most focus funds hold tech stocks.

Bates&#39s move could come as a boost to Fidelity&#39s global focus fund, which attracted less than £2m in the first few weeks of its launch in mid-January. But it may not be good news for New Star Asset Management, which recently bought the biggest tech fund in the sector – Aberdeen Asset Manage-ment&#39s £400m tech fund – as part of a six-fund deal with AAM.

Dalby says: “We will be telling clients over the next few months to get out of tech. Medium to high-risk investors would be far better off with broader-based focus funds. I cannot see tech outperforming them. It is not worth the risk. ”

New Star tech fund manager John Pullar-Strecker says: “Technology will always be volatile but people do not appreciate how much that balance sheets have been rep-aired. We are pretty optimistic.”

Recommended

Liontrust in bid to unitise knowledge economy trust

Fund manager Liontrust is asking shareholders to approve plans to unitise the knowledge economy investment trust after the trust&#39s discount to net asset value rose to more than 15 per cent.Liontrust is asking shareholders to liquidate the trust and swap their existing shares for units in its intellectual capital unit trust, which is managed with […]

Teather & Greenwood – Property Investment for Pensions Plc

Thursday, 20 March 2003 Type: Exempt unit trust Aim: Growth by investing in London residential property Minimum investment: Lump sum £10,000 Investment split: 100% in London residential property Charges: Initial 7.5 &#45 11%, annual 1.7 &#45 4.8% Commission: Initial 2.5% Tel: 020 7426 9583

People say wages must double to preserve lifestyle

Most people believe they will need to double their income over the next 10 years to maintain their current lifestyle, according to research from fund company Insight Investment.Asked by the HBOS-owned fund firm to estimate the salary they will need in a decade, the average amount suggested by 72 per cent of respondents was £45,729, […]

&#39Shutting down final-salary schemes doesn&#39t worry staff&#39

A tidal wave of companies closing final-salary schemes to new members will gather force as firms realise that staff retention is not affected, the Pensions Policy Institute conference was told last week.Legal & General pensions strategy director Adrian Boulding said employers would find that he savings made by closing defined-benefit schemes to new members would […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com