Four ways to invest in technology
Information technology is one of the most exciting sectors – and packed full of innovative companies...
IFSL Marlborough Global Innovation
This fund was formerly known as Marlborough Global Technology, but it was rebranded and taken over by Guy Feld in October 2020. It is now a concentrated portfolio of fast growing, innovative companies. It has a heavy weight to technology firms, but it will invest in innovative disruptive companies from any sector. The fund can invest globally but most of the investments are in the US or the UK. At least 50% of the fund must be invested in smaller companies.
Our opinion
Guy Feld has an exceptional track record, particularly investing in smaller companies. He has always been a specialist in tech and innovation. Marlborough Global Innovation fund is different to his other strategies in that it is more concentrated and focused and has a global mandate rather than just investing in the UK. Guy’s track record is too good to ignore and we are excited about the prospects for this revamped fund. The mixture between US and UK small caps makes it difficult to benchmark and investors should expect the fund’s performance to differ greatly from its IA Global sector peers.
Company description
IFSL Marlborough Fund Managers offers investments across various asset classes, ranging from UK fixed interest to international equities and exchange traded funds (ETFs). It was awarded the Elite Provider for Equities rating each year from 2016 to 2021. IFSL Marlborough’s managers are hand-picked and given freedom to invest as they feel optimal in the fund’s sector.
Hargreave Hale, who are investment managers for some of IFSL Marlborough’s funds, are a merger of Hargreave Investment Management and Hargreave Hale & Co, the former having been founded in 1986. The management of this fund is outsourced to the Hargreave Hale team, who are recognised specialists in the small-cap space.
Fund manager
Guy Feld has more than 20 years’ experience investing in small caps. He joined Marlborough in 2003 and became co-manager of the UK Micro-Cap Growth fund in February 2012. He has run the IFSL Marlborough Nano-cap fund since inception in 2013. He is also a co-manager of the IFSL Marlborough Special Situations fund. Guy's specialist area is tech and growth stocks.
Nothing better than a growth stock on a value rating.
Guy Feld, Richard HallettFund manager
Investment process
Guy believes the speed at which the world is changing has never been greater and there are hugely exciting opportunities for investors. For Guy, innovation means one of three things: developing new technology; using technology in original ways; and generating new ideas in high growth areas.
Guy and the team believe the biggest opportunities are to be found in small-caps, as these stocks get ignored by most other managers and analysts. There is also an opportunity to invest early in these businesses before they are recognised by others.
Marlborough Global Innovation fund targets exciting and innovative businesses – firms that are: using tech in creative ways; have distinct intellectual property; substantial growth potential; are yet to be discovered by other investors; are geared into waves of innovation.
Guy lives and breathes stock picking. He gets information from a wide array of different sources to build up a mosaic picture of what is happening with companies on the ground. In this way, he and his team can get ahead of the latest trends and innovations before they become common knowledge.
The long-term investment themes identified by the team include: digitisation of media, cybersecurity, fraud detection, digital payments, water conservation, US online gambling markets, hybrid cloud services, automation, and radio frequency technology.
Stock ideas are analysed in detail. This is a pragmatic fund and valuations are important but Guy is not afraid to pay up for growth if a company is good enough. The fund typically has a high turnover so this is not a buy and hold strategy although Guy does like to run his winners. That said, every stock must ‘earn its keep’. Stocks will be replaced where they disappoint, or they are superseded by better ideas.
ESG considerations are an important part of the fund’s investment process. Guy and his team believe that companies with sound governance, that act responsibly, are more likely to outperform than those that do not. ESG can be particularly important for smaller companies which may not have the resources to employ specialist ESG personnel. For this reason, Guy and his team believe they make a significant contribution in guiding those firms in a positive ESG direction. They invest with the view to exerting a substantial and continuing positive influence.
ESG
ESG - Integrated
ESG considerations are an important part of the fund’s investment process. Guy and his team believe that companies with sound governance, that act responsibly, are more likely to outperform than those that do not. ESG can be particularly important for smaller companies which may not have the resources to employ specialist ESG personnel. For this reason, Guy and his team believe they make a significant contribution in guiding those firms in a positive ESG direction. They invest with the view to exerting a substantial and continuing positive influence.
Risk
It is a volatile fund, and certainly a lot more volatile than other peers in the IA Global sector. The large weighting to smaller companies (at least 50%), as well as the technology sector and geographical biases will mean that the fund may underperform when these areas are struggling. The fund's high degree of concentration increases the potential risk that it may suffer periods of underperformance.
Read more about this fund
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