Sharechat Logo

BT launches Time technology fund in volatile global market

By Chris Hutching

Friday 19th May 2000

Text too small?
CRAIG STOBO: 'Global mix of technology securities offering greater diversity was an attraction to investors'
Volatility among listed technology stocks has boosted support for a new fund being promoted around the country by senior executives from BT Funds Management this week, chief investment officer Craig Stobo says.

The Time global share fund has attracted $A120 million from Australian investors since it was launched there in early March.

Mr Stobo said many investors had been attracted to the fund during the recent correction phase because of the greater diversity offered from the global mix of technology securities.

The fund invests in telecommunications, information technology and media enterprises rather than selected dotcom-type companies, of which there were only a handful, representing just 2% of the 180 companies in the fund, he said.

During the period of the Australian launch at the beginning of March until the end of April the Nasdaq had fallen 25% but the value of the fund had eased just 8%, demonstrating the benefits of stock research carried out by the fund managers, he said.

Although volatility would remain a feature of the fund it was expected to outperform in the longer term. Some analysts have pointed to 15-20% returns per annum in the longer term.

The fund is being measured against a new index set up by Morgan Stanley Capital International called the MSCI-BT Time Index, which measures the performance of technology stocks in main western countries rather than the US-focused Nasdaq.

They include internet and software developers, computer and electronic-equipment manufacturers, telecommunication services, biotechnology and pharmaceuticals.

Mr Stobo said the reason there were no New Zealand stocks and few Australian stocks in the fund was they simply did not have the "global reach" or management depth of the international stocks included in the fund. The stocks include US-based Cisco which was largely unaffected by recent volatility. Most of the stocks in the fund are based in Europe, the US and Japan.

A feature of the fund is a drip-feed savings plan where investors set up a direct debit from a New Zealand bank account into Time. BT Funds Management has been promoting the fund through financial intermediaries and marketing.



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

World Week Ahead: Data back in focus
New Zealanders' confidence in financial markets improves: FMA survey
Banks Shoes chain becomes latest retailer to call in receivers
MARKET CLOSE: NZ shares rise, led by F&P Healthcare, Sky TV; Ebos falls
Govt edges towards review of low-user electricity tariff
Zespri 2016/17 grower returns sag despite big jumps in volume and turnover
Trilogy meets guidance with 19% gain in full-year earnings, cites raw material costs
RBNZ approves ASX-listed Wolfstrike's purchase of lender
Mitre 10 chair Dippie's own stores still at odds with union after 3 1/2 years
McIntosh can keep $500k initial investment in RAM, must return 'profits', Supreme Court rules

IRG See IRG research reports