Jupiter’s multi-manager team is aiming to boost its exposure in the technology sector by introducing the Polar Capital global technology fund to its worldwide portfolio.
The move comes after the addition of the Henderson global technology income fund to Jupiter’s growth portfolio in September.
Tech funds have seen a turnround in fortunes in the past 12 months, with the average fund in the Investment Management Association technology and telecommunications sector up by 20.4 per cent.
Head of independent funds John Chatfeild-Roberts says: “We have started investing in technology funds because we believe many companies in the sector are in much better shape than several years ago, with cash on their balance sheets and valuations that do not look excessive, yet
“There is a good chance the launch of Windows 7 will drive an upgrade cycle. Vista was not that popular as an operating system and so most people are still using Windows XP, which is several years old.”
Jupiter merged its £28m global technology fund into its £182m global managed fund in April 2009. It says although there are still some good tech companies in operation, the bursting of the dotcom bubble resulted in a geographic narrowing of the sector.
Hargreaves Lansdown senior analyst Meera Patel says: “The technology sector has done well but lots of managers, particularly those in the unconstrained area, already invest there, so investors will have exposure.”
The multi-manager team at Jupiter has also added the Schroder income fund to its Merlin income portfolio in a bid to widen the number of recovery plays. The £1.1bn fund, managed by Nick Purves, is top of the IMA UK equity income sector over three years.
The £3.5bn multi-manager range has seen strong inflows of £250m over the past month.