Sarasin is removing the technology theme from its global investment process, writes Ruth Alexander i...
Sarasin is removing the technology theme from its global investment process, writes Ruth Alexander in Investment Week.
The group runs multi-theme portfolios and Guy Monson, Sarasin's chief investment officer, said the exceptional features that first made technology a core component when this concept was started almost five years ago are no longer evident.
Monson said: "Technology firms are not displaying exceptional and consistent growth, they are not contributing to exceptional corporate profits and there is little reason to think they will contribute to super-normal stock market returns for some time. What we are left with is a dynamic, forward thinking and powerful global industry that deserves a place in all diversified portfolios but one that has lost the exceptional features that justified its premium ratings."
At the same time, the group is widening its existing global energy theme to include electricity and energy supply, coal and gas, as well as its original focus, oil. This is due to the dearth in energy and electricity supply in the US at present.
Monson said Sarasin is also considering replacing the technology theme with a new one. Demographics, climate change and transport infrastructure are all under consideration.
These changes will affect two of the sub-funds in the Sarasin Oeic: the EquiSar Global Thematic fund, run by Michael Jennings, and the GlobalSar fund, which is run by Rolf Stadler.
Sarasin's strategy over the past five years has been to have no more than four or five themes but to change and develop these as global shifts take place and new trends emerge. The other themes in the portfolios at present are e-commerce, corporate restructuring and pricing power.