We have met the fund manager in the past but this is the first time for a while that we have had an update from the team. This is a pure technology fund. Jeremy uses an unconstrained multi-cap approach but looks to avoid blue sky or concept technology where there are no commercial opportunities. He believes that there are plenty of opportunities without taking this level of risk. To take this one stage further, he explained that 86% of the holdings they have reported higher than expected earnings. Compared to the benchmark, this figure is around 68%. This has been consistent over the time Jeremy has managed the fund.
Our concern with any technology fund is twofold; firstly, perhaps 10 to 15 years ago you needed a technology fund, but this has changed as many of the holdings can be found in regional and global funds. Secondly technology has been the place to be over the last ten years, and does a strategy like this give the same flexibility over the next ten years?….read more