Risks and Features

 

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Investment trusts are quoted companies listed on the London Stock Exchange. Their share prices are determined by factors including the balance of supply and demand in the market, which means that the shares may trade below (at a discount to) or above (at a premium to) the underlying net asset value.

Competition among technology companies may result in aggressive pricing of their products and services, which may affect the profitability of the companies in which the Trust invests. In addition, because of the rapid pace of technological development, products or services developed by these companies may become rapidly obsolete or have relatively short product cycles. This may have the effect of making the Trust’s returns more volatile than the returns of a fund that does not invest in similarly related companies.

Investment trusts can enhance returns through gearing. This can boost a Trust’s returns when investments perform well, though losses can be magnified when investments lose value. This Trust does not currently employ gearing. Derivatives are used to manage the Trust efficiently.

Asset allocation
The fund managers do not target specific country or regional weightings and aim to invest in the most attractive technology shares on a global basis. The fund managers aim to identify the leading companies in emerging technology growth sub-sectors. The majority of the portfolio will comprise mid and large cap technology shares.
Risk Diversification
The Company aims to diversify risk and no holding in the portfolio will comprise more than 15% of the Company’s assets at the time of acquisition. The Company aims to diversify the portfolio across a range of technology sub-sectors.
Gearing
In normal market conditions gearing will not exceed 10% of net assets but may increase to 20%. The Company’s Articles of Association limit borrowing to one quarter of its called up share capital and reserves.
Liquidity
In normal market conditions the liquidity of the portfolio, that is the proportion of the Company’s net assets held in cash or liquid investments, will not exceed 15% of net assets but may be increased to a maximum of 30%.
Derivatives
In normal market conditions the liquidity of the portfolio, that is the proportion of the Company’s net assets held in cash or liquid investments, will not exceed 15% of net assets but may be increased to a maximum of 30%.
Foreign Currency
The Company does not currently hedge foreign currency exposure
Benchmark
Dow Jones World Technology Index Sterling Adjusted Total Return.
 
 
 
 
 
 

"The rise of the smartphone and tablet computer is illustrated by the explosive growth in the creation and sale of Apps. Apple alone has seen 85 billion Apps downloaded by its users, as of October 2014."

Walter Price
Fund Manager

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"From entertainment to manufacturing, from business to the environment, from education to energy, technology has the ability to change lives on a global scale..."

Walter Price
Fund Manager

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"Cloud computing could displace businesses like Oracle or SAP. Amazon, for example, is offering a service where you can buy time on their servers for very little money - attractive proposition for start-up companies."

Michael Seidenberg
Portfolio Analyst

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