The changes will give the manager greater freedom to invest in stocks outside the official technology sector.
Marlborough Technology fund has announced that it will be changing both its name and investment policy in September, giving the manager the freedom to invest in a wider range of equities.
The fund’s name will be changed to Marlborough Global Innovation fund. This will reflect a simultaneous change in the fund’s investment policy allowing manager Guy Feld to invest in more companies that are not formally categorised as part of the technology sector.
- Insider: share buying at two fallen giants
- Richard Beddard: a high-scoring stock with a trick up its sleeve
- Take control of your retirement planning with our award-winning, low-cost Personal Pension
As it currently stands, 80% of the fund’s portfolio must be invested in the shares of companies that are formally classified as either in the technology or telecommunications sector. However, many companies popularly considered “tech” are often classified in other sectors.
As Feld notes: “There are so many companies not formally classified as ‘technology’ companies that generate value through being technology-enabled.
“We’re hugely interested in these technology-enabled companies, those with strong and distinctive intellectual property and those that are putting great tech to work in innovative and creative ways to shake up existing markets or open up new ways of doing things.”
For example, Alphabet (NASDAQ:GOOGL) and Facebook (NASDAQ:FB) are considered part of the “consumer services” sector rather than technology. However, it should be noted that the fund is not changing the mandate to focus on these popular mega-cap tech stocks. Feld says: “Rather than focusing on the ‘mega-techs’, we’re looking for the companies with the potential to grow into the technology giants of tomorrow. We’re also looking for opportunities where market inefficiencies have resulted in attractively priced small-cap and mid-cap situations.”
- Taking a chance on two US funds
- How Saltydog invests: a guide to its momentum approach
- Should investors prepare for an autumn market correction?
The change in investment policy will also see the newly named fund moved to the IA Global sector, from the IA Technology and Telecommunications sector.
The fund has enjoyed relatively strong performance recently. Year-to-date, it has returned 16.4%, total return in sterling terms. In contrast, the IA Technology & Telecommunications sector has returned 12.7%. On a one-year basis, the fund has returned 44.5% and on a three-year basis 91.2%.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.