3 / 5 Stars
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Zacks Investment Research
Standard & Poor's
3 / 5 Stars
#28 in Technology
U.S. News evaluated 51 Technology Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.
The fund has returned 24.25 percent over the past year, 9.06 percent over the past three years, and 23.07 percent over the past five years.
|Trailing Returns||Updated 01.31.2014|
|Year to date||-2.7%|
|3 Years (Annualized)||9.1%|
|5 Years (Annualized)||23.1%|
|10 Years (Annualized)||9.3%|
Investors in Henderson Global Technology have been on quite the ride.
As of February 05, 2014, the fund has assets totaling almost $384.75 million invested in 54 different holdings. Its portfolio consists of shares of technology companies.
This fund's first mistake was bad timing. It launched in late 2001, when the fallout from the bursting of the tech bubble was still punishing the returns of tech companies. In 2002, the fund's first full year in existence, it lost 37 percent. The next year, when tech stocks came roaring back, it gained a whopping 62 percent. That made the nauseating swings during the 2008-2009 market cycle seem like deja vu, with a 43 percent loss followed by a 67 percent gain. The bottom line: This fund, like all of its companions in the tech sector, is not for the faint of heart. In any given year, it is prone to deviate significantly from the broader market. Over longer periods, however, the potential for above-average returns is certainly present. As of the end of June, the fund's trailing five-year returns beat those of the S&P 500 by an average of 7.5 percentage points per year.
As of the end of the first quarter, just under 60 percent of the fund's assets were invested in the United States. Outside of the United States, the fund has positions in a number of countries, including Germany and China. The fund also makes currency bets. For instance, as of the end of the first quarter, it had fairly sizeable exposure to Taiwanese currency. So far this year, the fund has been outperforming the competition, thanks in large part to its positions in Baidu and Netflix. The fund has returned 24.25 percent over the past year, 9.06 percent over the past three years, and 23.07 percent over the past five years.
According to the fund's prospectus: "Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of technology-related companies. Equity securities include common stocks and related securities, such as preferred stock, convertible securities and depositary receipts. Technology-related companies are defined as those companies that the managers believe will benefit significantly from advances or improvements in technology. Technology-related companies include those that are principally engaged in producing, developing, selling, using or distributing technology products, processes or services."
Role in Portfolio
This fund could lend support to a well-balanced portfolio.
Ian Warmerdam and Stuart O'Gorman run the fund.
Henderson Global Technology Fund has an expense ratio of 1.49 percent.
Like all stock funds, this one comes with some risks.