InvestmentsMay 5 2015

Top5/Bottom5: Technology & Telecommunications

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Top5/Bottom5: Technology & Telecommunications

With earnings season around the corner, investors are glued to their screens to gauge stock performances. Technology stocks finished flat on Wall Street yesterday but have fallen 13 per cent in the cash market last week as Q4 performance of several key tech companies failed to meet market expectations.

A total of 15 funds sit in the Technology and Telecommunications sector with Fidelity’s Global Technology fund as the best performer in the group. The fund saw a return of £1,365 based on an initial investment of £1,000 over one year to 5 May.

The £306.4m fund aims to provide long-term capital growth with the level of income expected to be low. The fund invests at least 70 per cent in the shares of companies throughout the world and aims to benefit significantly from technological advances and improvements in relation to products, processes or services. At least 64.9 per cent of the fund is invested in US equities, with a large portion of its exposure in Google.

AXA Framlington Global Technology fund is also in the top five performing with a return of £1,362 on an initial £1,000, followed by GLG Technology Equity fund which returned £1,325 over the year.

The £216.8m GLG Technology Equity fund aims to achieve capital growth through investing, directly or indirectly, in an international portfolio of securities of companies involved in technology, media and telecommunications. The fund invests 41.49 per cent in US equities and its biggest holding is Apple Inc at 9.38 per cent.

The worst performing fund as of today is MFM Technivest Technology with a return of £1,119. The £42.5m fund invests 65 per cent in US equities, 27 per cent in UK equities and the remaining in Canadian equities. The fund’s top holding is 3.5 per cent in Attunity Ltd, a Boston-based information management service provider.

A point worth noting is that the top performing funds have their holdings in large companies such as Google, Apple, Facebook and Visa, while the lowest performing funds stuck to smaller companies like Attunity and Numerex. It should also be noted that technology-driven funds have been performing better than those focused on telecoms.

Best And Worst Technology & Telecoms Funds, One Year To 5 May 2015
Top 5
Fidelity Global Technology £1,365
AXA Framlington Global Technology £1,362
GLG Technology Equity£1,325
L&G Global Technology Index£1,307
Pictet Digital Communications£1,306
Bottom 5
Aberdeen Global Technology Equity£1,215
Cavendish Technology£1,191
Fidelity Global Telecommunications£1,165
LO Funds - Technology Systematic Hedged£1,121
MFM Techinvest Technology£1,119
Figures as of 5 May 2015. Source: FE

Previous Top 5/Bottom 5:

ITs: UK Smaller Companies

Global Emerging Markets

Europe ex-UK