View more on these topics

Gam tech fund looks past the bubble

GAM has introduced a technology fund to benefit from opportunities that have emerged in the sector since the bubble burst in 2000.

GAM Star technology will invest globally but the bulk of the portfolio will be invested in the US, where many technology firms are based. It aims to outperform the MSCI World Information Technology index by 10 per cent a year

GAM investment director Mark Hawtin manages the fund. He joined GAM in 2008, having previously managed a technology hedge fund at Marshall Wace, theMarshall Wace eureka interactive technology hedge fund.

Hawtin feels the technology sector is unloved, under-researched and undervalued, which gives rise to price inefficiencies that result in some strong investment opportunities. Many Investors had their fingers burnt in 2000 and have been put off the sector since then. The years of underperformance that followed the bursting of the tech bubble and negative investor sentiment has contributed to the pricing of good companies at cheap valuations that are attractive to fund managers.

Internet companies will feature strongly in the portfolio as Hawtin believes broadband to be transforming the way companies do business. As well as established firms needing to invest in new technology to carry out their usual business, the fund will also benefit from trends such as the popularity of the smart phone and i-pad, and the of new technology for connecting to the internet and communication.

Poor performance and a lack of investor interest following 2000 caused a number of technology funds to close, so investors who want specific exposure to the technology sector have had limited choice. This fund increases choice in the market, but some investors may still be wary of the technology sector. Offshore technology funds that could compete with GAM include those from Fidelity, Aberdeen and Invesco International. Onshore competition may come from Axa Framlington and GLG.

Recommended

2

Eviction notice

The total number of repossessions has remained low throughout the financial crisis and the numbers have been falling over the last 12 months. Recent figures from the Council of Mortgage Lenders show repossessions for the whole of 2010 were 24 per cent lower than in 2009. A total of 36,300 homes were repossessed last year, […]

3

Buckles set for restricted advice

Buckles is likely to move to a restricted advice model after the RDR as it believes it will be commercially unviable to continue to operate as an IFA. In an interview with Money Marketing, Buckles executive chairman Nigel Speirs says it will be too costly for big distributors to operate as IFAs under the RDR.He […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.

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