Talking Point  

Advisers back specialist funds for next gen tech exposure

 Advisers back specialist funds for next gen tech exposure

Most advisers prefer specialist funds when it comes to trying to gain exposure to the next generation of technology companies, according to the latest FTAdviser poll for Talking Point.

The poll, which was conducted online, found that 70 percent prefer specialist funds, while 30 per cent choose to go with generalist funds with large tech exposures.

Tim Morris, an independent financial adviser at Russell & Co Financial Advisers, said although he liked some specialist tech funds, it was “very much a case of sorting the wheat from the chaff”.

He added that access to ‘Megatrends’ through ETFs provided some interesting opportunities, while they tended to have an element of active management (aka smart passives). 

Morris said: “Due to the high number of highly speculative companies in this space, a safe pair of hands is welcome. However, themes such as cloud computing & cybersecurity are very much linked to the fortunes of other tech funds. 

“And for me, you may as well have a passive play in this sector. Especially when more than 80 per cent of tech returns were from the FAANG stocks. Other themes such as the cannabis fund fad in recent years proved worth avoiding. Many of those stocks literally went up in smoke.

“The recently launched Metaverse & Blockchain EFTs undoubtedly offer massive potential yet are still in their infancy. And while Zuckerberg is at the forefront of the former theme, to realise the full potential, we need more pioneers such as the next Bezos or Musk to lead the way.”