Kuala Lumpur, 17 February 2020 – TA Investment Management Berhad has declared a unit split of (1:5) one additional unit for every five units held for TA Global Technology Fund to the registered unit holders of the Fund as at 14th February 2020 following the Fund’s strong performance in the past six months.
TAGTF aims to seek long term capital appreciation by investing in a collective investment scheme which invests mainly in a globally diversified portfolio of technology related companies. As at 31st January 2020, the Fund has returned 29.0%1 over the past one-year period.
According to the target Fund Manager (Henderson Global Investors Limited) of TAGTF, while the presidential election year in the United States and geopolitical factors will likely drive ongoing volatility, they remain constructively biased on the long-term outlook for technology equities with rising adoption of technology into the 2020s. Over the past decade, half the world now has a smartphone which enables us to stay connected to anyone at anytime from almost anywhere. The cloud now enables any new company or service to scale to billions of users faster and cheaper than ever beforea nd digital payments are now mainstream, allowing these new services to monetise instantly. The confluence of this technology infrastructure has already proved incredibly disruptive in retailing, music, TV, travel, ride hailing and even dating. Artificial intelligence is now leveraging that existing technology infrastructure to disrupt new industries like financial services (notably in China and India), industrials and the healthcare and medical sectors. The disruption plays a role in decreasing the cost of services, spurring more efficiency and more productivity. This will enable technology to continue gaining in its share of the global economy.
The TA Investment Fund Manager remains focused on finding the long-term winners within the mega themes of internet transformation, payment digitisation, next-generation infrastructure and artificial intelligence at a reasonable price. Using their experience as active stock pickers, the Fund Manager intends to take advantage of market volatility to hunt for opportunities – in the past year, their dynamic allocation to cyclical technology stocks such as semiconductors has been a good example of how they have created value for investors. Following a strong year led by multiple expansions in 2019, Fund Manager expects an improvement in cyclical profitability this year and continues to look for companies where the magnitude of earnings growth is unappreciated and unexpected. Fund Manager remains consistent in applying their unique approach of navigating the hype cycle and applying valuation discipline and identifying attractive growth/valuation combinations. This is a style that the Fund will be particularly suited for in the environment of 2020.