Munro puts cash to work in technology stocks
There is a seismic shift taking place in technology which will be a benefit for the Munro Global Growth fund, although the outlook is “murkier” for what the new normal will look like after the pandemic.
This shift was affecting holdings in the Munro Global Growth fund including payment provider PayPal, software firm Atlassian and social media giant Facebook, although only Facebook sat in the fund’s top 10 largest holdings at a 3.9% weighting.
Munro chief investment officer Nick Griffin said PayPal and Atlassian had been two of the fund’s biggest contributors to performance during May alongside renewable energy company Orsted, Alphabet and software firm ServiceNow.
“We see a seismic shift occurring in the adoption of digital transformation at both enterprise and consumer levels. Consequently, we see an acceleration ahead for many of our investments.”
In April, the fund had a 14% weighting to cash but this had since fallen to 6% in May and Griffin said the fund was fully invested and was protecting against the downside through hedging tools rather than holding cash.
However, he was hesistant about what the world would like in the future as the world re-emerged from the pandemic.
“The outlook is murkier due to a range of issues including a second COVID-19 wave, social unrest and increasing trade tensions.”
The Munro Global Growth fund has returned 24% over one year to 29 May, according to FE Analytics, versus returns of 8.5% by the global sector.
Performance of Munro Global Growth fund versus global sector over one year to 29 May, 2020
AUTHOR
Laura Dew
Recommended for you
ETF investors would be wise to consider global or European exposure for their equity ETF allocations, according to AXA IM, with US government action expected to hit both its equity and bond performance.
A specialist ETF provider is seeking to become “the new Betashares” with its active ETFs, thanks to its use of algorithms to achieve outperformance.
Platinum Asset Management has entered into binding terms for a merger with L1 Capital with the firm to be renamed upon completion
Prime Value Asset Management has launched a retail fund investing in microcap companies, a new version of its existing wholesale offering.
