View more on these topics

Invesco GT global dynamic

Last year, everybody was either scrambling to get in on the technology


stock boom or the high-yield corporate bond junket. While the technology


story is still very much in play despite recent market volatility, several


fund managers are looking to give investors a diff- erent offering which


incorporates technology via a global theme fund.


Mercury and CGU have both launched global funds in recent months. But


Invesco GT got there early, launching its fund in 1997. It says technology


funds are thematic investment at its most concentrated and thematic


investment need not necessarily involve putting all your assets into the


high-tech basket.


Fund manager Tim Miller says: “Taking a perspective on industrial groups


rather than geographic regions, we came up with seven dynamic themes which


we believe will increasingly shape the world in the 21st Century.”


He says the seven dynamic themes each represent between 5 and 30 per cent


of the total portfolio They centre on not only the high-profile technology


and telecoms industries, but also consumer prod- ucts and services,


healthcare, financial services, natural resources and infrastructure.


“The full quotient is only around 70 stocks, so a great deal of effort


goes into selection and monitoring. Existing holdings are reviewed


constantly,” says Miller.


“In telecoms, data traffic is growing so fast in many quarters that


infrastructure providers are finding it hard to keep up. Telecoms stocks


are among those we most favour. Dedicated-line growth has exceeded


expectations in each of the last two years and could well do so again this


year.”


Miller believes cable and satellite broadband systems will speed up


delivery of information for companies and will replace analogue lines. Once


consumers get rapid communication speeds at work, he reckons they will want


them at home too.


“There will be pressure upon the network operators to upgrade


infrastructure to deliver information at a faster rate with an emphasis on


reliability. Technology is forming an increasingly important part of daily


lives at home and work. In the US, it is estimated that 50 cents of every


dollar invested in a business goes on technology and that is likely to


rise,” says Miller.


The fund has a substantial exposure to fast-growing technology companies.


It holds Intel, the world&#39s biggest producer of microprocessors for the


personal computer market. The company unveiled the world&#39s fastest


processor in February and has a $1.5bn deal that will involve supplying


chips to Ericsson for the next three years.


Miller says: “Consumer goods and services are a long-term theme fuelled by


rising disposable income and falling trade barriers around the world. We


are particularly excited by media and broadcasting companies.


“New technologies, such as digital TV, digital versatile disk (DVD) and


the downloadable MP3 music format are driving demand for media content.”


Miller says the AOL-Time Warner deal is a reminder of the importance of


having good content. Time Warner is, arguably, the world&#39s top content


company, with a massive library of films, cartoons and TV series. He says:


“In view of the &#39AOL anywhere&#39 strategy, the partnership looks formidable.”


The fund has picked a financial services theme because it sees the


continuing growth in the financial services industry as inevitable, with


provision for retirement falling increasingly on the individual.


An ageing population in the developed world and rising living standards in


emerging countries are driving the healthcare market forward. Miller also


sees a strong recovery in Asia helping to boost infrastructure stocks.


He says the key attraction of the thematic approach is that it enables


Invesco to avoid problematic global sectors such as manufacturing.


“We can take a global perspective on the really exciting industries with


the brightest futures,” he says.

Recommended

Tories writing to all IFAs on FSA dangers

The Conservative Party is writing to all IFAs, spelling out the dangers totheir business from the FSA.A letter has gone out to every constituency office in the country, urgingits members to write to IFAs telling them how the Financial Serv^_ices andMarkets Bill, which puts the FSA on an official footing as a regulator,will be damaging […]

Exchange modifies Cat loans service

The Exchange has launched the third version of its mortgage sourcingservice for IFAs to support Cat-standard mortgages.The system is ready to support Cat-standard mortgages as and when theyappear in the market. As with other product features, IFAs will be able toinclude or exclude Cat products in their search criteria.The new service is in res^_ponse to […]

Network targets fee-based advisers

Consumer demand for fee-based advice has prompted small IFA Paterson-Lloydto set up a network dedicated to fee-based advisers and those frustrated bycommission.The firm of six registered individuals has offices in Croy^_don, Lancing,Eltham, and Wallington and will be targeting IFAs in London and the HomeCounties.Paterson Lloyd IFA Mal^_colm Paterson says the size of the firm means […]

Pressure increases on Standard Life to convert

Pressure has increased on Standard Life to demutualise as one of the largest with-profit policyholders has jumped on the conversion bandwagon.Barclays Global Investors, the second largest institutional investor has publicly lent its support to the cause of carpetbagger Fred Woollard, who is leading the charge to demutualise.Scottish Value Management head Colin McLean, another large investor […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment