Investec has announced that investors in its Global Technology fund have overwhelmingly voted to expand the fund’s remit. The fund will be renamed the Investec Global Dynamic fund and will be managed as an onshore mirror of the offshore Investec GSF Global Dynamic fund.
Investec says the conversion of the fund is not a consequence of concerns about the technology sector. The changing of the fund’s remit is a reflection of the fact that the sector has gone mainstream over the past 10 years and although certain stocks still present interesting investment opportunities, diversification is beneficial.
Technology stocks will remain an important part of the portfolio but the fund will no longer have to restrict itself to companies within the sector.
The onshore fund will be managed using Investec’s “4Factor” bottom-up approach looking at companies that have a combination of value, a good track record, growth potential and an upward trend in their share price. The offshore version has delivered 20% returns since Jacob Robbins took over two years ago. The new fund will also be headed by Robbins and aims to provide long-term capital growth with a minimum of two-thirds of its investment in global equity instruments.
Mark Breedon, head of Global Equities at Investec Asset Management, says the decision to convert the fund was taken to offer the product to new investors.
“We wanted to be able to offer the performance that we’ve had [in the offshore fund] to the onshore market,” Breedon says. “The fund offers great opportunities to outperform the benchmark.”
Adapting to the challenges posed by the current volatility on global financial markets will be key to the funds’ success and is already a high priority, says Breedon.
“We can certainly say that we’ve been steered to more defensive stocks,” he says. “We’re moving towards areas like utilities and pharmaceuticals in order to ensure cash flows.”