Swiss bank Lombard Odier has set up the LO Invest infology fund to allow UK investors to benefit from capital gains tax allowances that come with offshore investing.
This Luxemburg-based Sicav is a UK clone for a fund that is distributed solely in Switzerland. It aims to provide capital growth by investing in technology, media and telecommunications companies around the world.
Although technology, media and telecommunications stocks have been knocked off their perch recently, this means investors are no longer paying inflated prices for stocks. They can pick up more stocks for their money, which might boost their return if the value of these stocks subsequently rises.
The global nature of the fund enables the fund manager to create a geographically diverse portfolio. Although European technology is on the up, the US is still the dominant force in the sector but its economy is not as strong as it was during the technology boom.
These conditions make the fund a risky option for many investors, but it could attract the more adventurous ones. Those who are looking for a tax-efficient investment might also find it suitable because it is also available within an individual savings account (Isa) wrapper.