M&G fund manager Aled Smith is looking to increase the £941.3m M&G American fund’s exposure to internet-related businesses.
Smith told the Fund Strategy Investment Summit in Kitzbühel, Austria last week that US equity managers need to explore this sector in greater detail after he became concerned they are under-exposed to the rapidly growing area.
He said: “If there is one thing that you can be certain of in the next 10 years, it is that the internet is going to create a huge change in our lives and internet business models and commerce are going to be bigger than they are today.
“When you look at my portfolio and many other US portfolios, we own only one or two stocks that exploit that – it feels like that is not enough.”
Smith’s fund owns online auction business eBay in his top 10 although it does not hold other leading internet businesses such as Amazon and Facebook. However, he is starting to look at these names more closely.
He said: “The most dangerous thing in fund management is to think ‘that is just not for me’ so we are forcing ourselves to take a look in areas that historically we might have avoided.”