Henderson Global Investors is revamping its offshore Horizon range with the addition of nine new funds, including the Horizon Pan European technology fund.
This Luxemburg-based Sicav aims to deliver long-term capital growth by investing in a diverse portfolio of stocks within the European technology sector. It will focus mainly on small caps, but may also include larger companies in the portfolio if they are significantly undervalued.
A bottom-up approach to stockpicking will be taken, with the fund management team making visits to the companies it is considering for the portfolio and scrutinising each individual stock. Stocks will be analysed in terms of past performance, the quality of management, the stage of development their products are at and future growth prospects.
The fund will diversify across different aspects of the technology sector, including semiconductors and software. The fund management team will go with its own views on particular themes, such as business-to-business, rather than follow the herd. This could be beneficial as some promising stocks could be overlooked by other fund managers who adopt a different view.
Some investors will have been once bitten and twice shy of technology, but looking ahead, it has an important role in the global economy in terms of improving efficiency. Some European technology companies may be under researched and undervalued compared to US technology companies and this could give rise to good investment opportunities for higher-risk investors with a wide portfolio.
According to Standard & Poor's, the Henderson Horizon global technology fund is ranked 3 out of 46 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to December 17, 2001.