New offshore investment company Bullhound has entered the market with a global technology fund available to websurfing investors.
The fund, which allows individuals to run their investments on the internet, is a Luxembourg domiciled SICAV and is aimed at experienced investors. Mainly those who are looking for growth as well as exposure to the technology market.
Global technology will invest in companies that are involved in areas related to the internet, such as telecommunications equipment, software and semiconductors. It will invest in companies that include the electronic hardware company Bookham and Baltimore Technologies, which makes the software to build secure websites.
Most SICAVs, such as the Henderson horizon global technology fund, have an annual management charge, an initial charge and a performance charge based on the fund outperforming its stated parameters. However Bullhound, is undercutting the opposition by scrapping the initial and annual management charges and retaining the performance charge which is 20 per cent of any growth.
The prospect of not having to pay an annual management charge or initial charge will appeal to many investors, especially as this puts the burden onto Bullhound to provide some growth. However, a charge of 20 per cent of any growth will hit investors hard in the event that the fund manages only mediocre performance.