Interactive Investor

Marlborough Technology to change name and investment policy

27th July 2021 11:44

Tom Bailey from interactive investor

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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.

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.”

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%.

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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.

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