Investors Explore Tech Funds for Growth Amid AI Boom
As technology continues to drive growth across various markets, artificial intelligence (AI) stands out as a major player, capturing attention for its potential to deliver high returns for investors. With this in mind, many are turning to specialized tech funds to capitalize on the ongoing digital revolution.
One such fund gaining significant popularity is the Polar Capital Global Technology fund. Over the past year, it has been one of the most researched funds, boasting a size of $22.1 billion. This fund is well-regarded for its experienced management team, impressive long-term performance, and a balanced investment strategy that includes both large U.S. companies and smaller, emerging tech firms, according to Rob Morgan, chief investment analyst at Charles Stanley.
“This fund appeals to investors who want exposure to core technology themes and are interested in the AI sector, while also supporting smaller companies adapting to technological changes,” Morgan explained. Polar Capital has consistently delivered strong returns, ranking in the top tier within its sector for one, three, five, and even ten years, with a remarkable gain of 938.9% over the last decade alone.
In recognition of its performance, Polar Capital Global Technology received an Elite Rating from FundCalibre earlier this year and is featured in best-buy lists by AJ Bell and Barclays.
Aside from Polar Capital, there are other funds that investors might consider to tap into the long-term growth of technology. Morgan pointed out Allianz Technology, a well-established option that focuses on tech innovators. This fund is described as a more adventurous alternative, targeting areas like AI, semiconductors, and cloud computing.
In its recent full-year results, lead manager Mike Seidenberg emphasized a strong focus on AI-driven growth and the ongoing demand for technology following the pandemic. A key advantage of Allianz Technology is its closed-end structure, which allows for a concentrated investment in large tech companies and greater flexibility to explore smaller, high-potential firms. Currently, the trust is trading at a 7.4% discount to its net asset value.
Another fund to consider is Threadneedle CT (Lux) Global Technology, recommended by Paul Angell, head of investment research at AJ Bell. Managed by a team based in Silicon Valley and New York, this fund invests across various tech areas, particularly in smaller and mid-sized companies positioned for growth.
Angell noted that unlike many other tech funds, this one maintains a careful approach to valuations, avoiding mere momentum chasing. Over the last ten years, Threadneedle has achieved an impressive 885% return, closely trailing Polar Capital.
Additionally, Liontrust Global Technology is another viable option. Co-managed by Storm Uru and Clare Pleydell-Bouverie, this fund not only focuses on tech growth but also emphasizes innovation. According to Angell, Liontrust seeks companies that exhibit strong management and high returns on investment. Recently, it has benefitted from investing in key AI companies, resulting in a return of 64.6% in just six months.
For those looking for a slightly different perspective, Richard Evans, an investment writer at Fidelity International, suggested WS Blue Whale Growth. Managed by Stephen Yiu, this fund, though not classified as a tech fund, holds a significant number of tech stocks, including well-known names like Nvidia and Alphabet. It combines tech investments with a more defensive stance, involving sectors like industrials, allowing the manager flexibility based on market conditions. Since launch, WS Blue Whale Growth has appreciated by 341.8%, significantly outperforming the sector average.
In summary, as investors look to make the most of the fast-evolving technology landscape, they have a variety of funds to explore, each with its own unique strategy and potential for growth.
