Investors drive AMP fund launch
Responding to investor demand for more specialist investment in technology and telecommunications AMP Financial Services will roll out a new technology spe-cific fund today.
Responding to investor demand for more specialist investment in technology and telecommunications AMP Financial Services will roll out a new technology spe-cific fund today.
Reflecting the widespread popularity of these stocks the AMP Global Technology Fund will not be limited to investors and will have institutional, retail and retail su-perannuation elements and be offered through the AMP financial planner network.
The fund is a mirror of the Henderson Global Technology Fund, which at present has $6.8 billion under management and has been run in the UK since 1984 by Henderson Investors, who are owned by AMP.
Henderson Investors technology investment director Brian Ashford-Russell says the demand for the fund was high but at the time of launch exact expected inflows are hard to measure.
"We hold the leading fund of its type in the UK which currently sees $20 million a day in funds inflow. The same vehicle in Canada sees similar inflows in Canadian dollars and we expect the same trend to occur here," Ashford-Russell says.
"At the same time, since the fund is a mirror of the UK fund, we expect to also see the same returns."
Since its launch the UK fund has had an average return of 34 per cent, leading the field in specific sector funds in the UK and USA according to Ashford-Russell with the last two years pushing earnings as technology moves into the mainstream.
"This fund was up 180 per cent last year but I am keen for people to see that last year was an aberration and emphasise that returns are in the 20 to 25 per cent band," Ashford-Russell says.
"However this sector will continue to go through constant re-invention and across the globe it is a great space in which to invest."
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Jason Spits
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