The IA Technology and Telecoms sector is vast, with companies including Apple, Amazon, Facebook and Visa. Well past the technology bubble bursting in the early 2000s, the sector is booming, and in fact all funds within the Investment Association (IA) sector saw positive returns over the past year. Despite this, it remains one of the smallest sectors, with just 15 funds within the group.
The IA stipulates funds within the sector must invest at least 80 per cent of their assets in the technology and telecommunications sectors as defined by major index providers. There is no geographical limits to the funds in the sector, although the majority will have the highest allocations to the US because of companies such as Google and Apple.
The AXA Framlington Global Technology fund is the best performing over one year to 15 June, according to FE data. Over that period the fund returned £1,304 on an initial £1,000 investment. The £252.9m fund, managed by Jeremy Gleeson, has an 84 per cent allocation to North America, and its largest holding is in Apple (9.5 per cent) followed by Google (6.5 per cent). The fund not only invests in telecoms, media and technology but also in hardware solutions, such as Qualcomm, a semiconductor company which designs wireless products and services.
At the bottom of the Table is the Fidelity Global Telecommunications fund, which still returned £1,099 on an initial £1,000 investment. The £122.3m fund, managed by Aditya Shivram, has the majority of its portfolio invested in telecommunications companies. Its highest allocation is to American phone network, Verizon (8.9 per cent).
Best And Worst Tech & Telecoms Funds, 1 year to 15 June 2015 | |
| Top 5 | |
AXA Framlington Global Technology | £1,285 |
GLG Technology Equity | £1,276 |
Fidelity Global Technology | £1,254 |
Pictet Digital Communication | £1,249 |
Polar Capital Global Technology | £1,244 |
| Bottom 5 | |
Cavendish Technology | £1,151 |
Aberdeen Global Technology Equity | £1,137 |
MFM Techinvest Technology | £1,128 |
LO Funds Technology | £1,104 |
Fidelity Global Telecommunications | £1,095 |
Notes: Figures as at 15 June 2015. Source: FE. | |
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