Public Trust adds to new tech fund offerings

By Chris Hutching

Friday 5th May 2000

Public Trust is the latest financial services company to offer clients investment - this time in a UK technology fund established two years ago called Wired Index Fund.

Public Trust joins a rash of other offerings including BT Funds Management's Time Fund launched this week and a recently launched US-managed technology fund being promoted by Money Managers. A member of Ord Minnett's Australian investment team is also due to promote a new venture capital fund this week.

New Zealanders will also soon be able to invest in AMP's Henderson Global Technology Fund, one of the first UK funds to become available under special exemptions gazetted by the Securities Commission in January.

Telecom New Zealand shareholders will also become new technology investors with plans by the company to invest $40 million in TMT Ventures involving telecommunications, media and technology stocks and management input by Direct Capital Corporation.

Public Trustee David Hutton said the fund would facilitate the flight to quality that had become evident recently. The fund has a steep 5% entry fee but expectations for longer-term performance are also higher. The fund invests in 40 companies from data processing, mining, agribusiness and networked media.

"What they all have in common is that they are using technology, networks and information to reshape their businesses and ultimately the global economy," Mr Hutton said. Fund manager Investec Guinness Flight has created a number of funds to track the Wired Index. One is US-based and the other is a UK-domiciled unit trust. Public Trust is promoting the UK version of the fund in New Zealand initially through its own network of advisers.

Research house IPAC Securities general manager David Schaardenburg said the recent volatility of technology stocks appeared to have had little effect on the amount of money flowing into managed funds generally and New Zealanders' exposure so far had been limited. The kind of funds that might be affected by the recent volatility would be those described as "emerging market" funds. But most funds were pitched at long-term investors.

March quarter statistics showed inflows had picked up in the March quarter and there were no indications of a dramatic fall since that time. The overall net funds flow was $257 million compared to $199 million in the previous quarter.

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