The FSA Spy market buzz – 15 November 2024
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HEAD-TO-HEAD: Henderson vs Polar Capital
FSA compares the Henderson Horizon Global Technology Fund with the Polar Capital Global Technology Fund.
Pictured: Samuel Meakin, Morningstar analyst
While technology is often referred to as a sector, it actually spans many different traditional industry sectors. This makes the task of technology fund managers trickier as they must keep their eyes open to many sectors to identify companies for which new technologies are the main driver of business.
A technology mutual fund must invest across different industry categories, for example consumer, energy, manufacturing, financials and media.
Amazon, for example, is traditionally classified in the consumer sector, wind, solar and battery manufacturing companies fall under the energy sector and robotics companies are under manufacturing, yet they are all in technology funds.
“Technology affects all traditional sectors and industries,” said Samuel Meakin, manager research analyst at Morningstar. “It therefore affects the investment decisions of active managers across the board.”
The technology investment landscape has seen the arrival of ever more index-based products, in particular exchange-traded funds (ETFs). Considering that investors can get inexpensive exposure to technology indices via ETFs, active fund managers face an increasing challenge to outperform them.
In this context, FSA compares two global technology funds: the Henderson Horizon Global Technology Fund and the Polar Capital Global Technology Fund.
| Henderson Horizon Global Technology Fund | Polar Capital Global Technology Fund | |
| Size | $2.44bn | $1.53bn |
| Inception | 16 October 1996 | 19 October 2001 |
| Manager | Stuart O’Gorman (since 2001)
Alison Porter (since 2014) |
Nick Evans (since 2007) |
| Morningstar Rating | ***** | ***** |
| Morningstar Analyst Rating | Neutral | Bronze |
| FE Crown Fund Rating | *** | ***** |
| Fees | OCF: 1.0% + 20% perf. fee | OCF: 1.16% + 10% perf. fee |
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