Banking

Sarasin to merge away Digital Opportunities fund

In a letter seen by Investment Week, Sarasin told investors that the markets the digital fund invests in “have changed significantly since it launched”.

“The markets appear to favour a small number of ‘mega-cap’ technology companies over the small and medium-sized companies such as those in which the fund invests,” the letter stated. “Sarasin doesn’t foresee a scenario, within the next two to three years at least, which would see investors focus again on the small and mid-sized digitalisation companies within the fund’s investment strategy.”

The Digital Opportunities fund, which is co-managed by Josh Sambrook-Smith and Alex Cobbold, has fallen from about £50m assets under management at the beginning of 2021 to just £2.3m at the end of March, according to FE fundinfo.

Since its launch in July 2020 it has lost 16.2%, while the MSCI ACWI TR has returned 25.5% and the Investment Association Technology and Technology Innovations sector returned 14%, FE fundinfo shows.

Troy to merge Spectrum and Trojan Global Equity funds

The fees are slightly higher on the Responsible Global Equity fund, at 0.92% versus 0.91% for the effective OCF. The costs of realigning the portfolio, which are estimated not to exceed 0.01%, will be borne by the fund.

The merger is subject to shareholder approval and would take place on 20 May.

The Responsible Global Equity fund invests at least 80% in the shares of large and medium sized companies from around the world, while avoiding companies “materially engaged in certain sectors”, including the production or distribution of tobacco, alcohol, armaments, gambling, adult entertainment and the extraction of fossil fuels.

It also favours organisations that fulfil an environmentally or socially beneficial role and that employ high standards of governance.

The fund, which launched in 2011, has returned 44% in the three years until 2 May, while the IA Global total return index experience a 34% return.

Most Related Links :
todayuknews Governmental News Finance News

Source link

Back to top button