Fidelity Funds - Global Technology Fund W-Acc-GBP
Rated Fund 2017-19. Looks for the best part of the technology chain
This is a Luxembourg-domiciled fund that invests in companies throughout the world that have, or will, develop products, processes or services that provide technological advances and improvements, or benefit significantly from them with a view to producing long-term capital growth.
The fund has been managed since 2013 by HyunHo Sohn, who had previously been involved in researching global technology stocks. He takes a bottom-up, stock-picking approach and seeks to identify quality companies with sustainable growth prospects trading at attractive valuations. He believes that understanding technology trends, innovations and new technologies are key to identifying long-term leaders in the industry.
An important element of his investment process is value chain analysis, which he uses in order to buy the companies that he believes are best able to profit from a particular product’s life cycle, whether it is producing the component parts or selling the finished product.
The investment opportunities he favours tend to fall into three categories – growth, cyclical and special situations. Growth companies are those focused on innovations or with disruptive technology that are set to experience high growth. Cyclical opportunities are found in sub-sectors and typically have strong market positions, while special situations are mispriced businesses with recovery potential.
At the end of 2018 his top three holdings were Alphabet (Google’s parent company), Intel and Apple. Much of the portfolio was invested in the US, which accounted for 66% of assets, but other key holdings included Germany’s SAP, South Korea’s Samsung Electronics and China’s Baidu. Overall, Sohn had around 60 holdings with the top 10 accounting for 40% of the portfolio.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Samsung Electronics Co Ltd Participating Preferred||6.88 %|
|Alphabet Inc A||5.65 %|
|Apple Inc||5.60 %|
|Intel Corp||5.04 %|
|Microsoft Corp||4.26 %|
|International Business Machines Corp||3.84 %|
|SAP SE||3.47 %|
|KLA Corp||3.36 %|
|NXP Semiconductors NV||2.99 %|
|Electronic Arts Inc||2.82 %|
|United States||61.50 %|
|Asia - Developed||11.85 %|
|Asia - Emerging||10.22 %|
|Consumer Cyclical||8.65 %|
Data provided by Morningstar.
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