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Analysis of the BlackRock Global Funds – World Technology Fund

An active thematic fund, with nearly 30 years of history, which invests in global technology companies respecting ESG principles.

16 DEC, 2024

By Andrea Sepúlveda from LatamSelf

The fund BlackRock Global Funds - World Technology is a thematic global equity fund domiciled in Luxembourg. Its main objective is to invest in companies globally whose core business belongs to the technology sector (at least 70% of its assets), always respecting ESG principles (Environment, Social and Governance).

Characteristics of the BlackRock Global Funds - World Technology fund

The fund was launched at the beginning of 1995, so it boasts almost 30 years of history. In addition, it is classified as article 8 according to the SFDR regulation. Thanks to its results and its management process, the strategy has received recognition and ratings from important financial information platforms globally.

Investment strategy: the fund's management is active, which gives the investment team the power to freely select investment opportunities.
Benchmark index: the active approach allows managers to include instruments not present in the benchmark, which is the MSCI AC World Information Technology 10/40 index, to take advantage of opportunities identified in the market. However, the index is considered for portfolio construction, for proper risk management and to compare performance results.
Investment team: the team is led by Tony Kim, who has over 22 years of experience. He is the General Manager of BlackRock, where he joined in 2013, and a member of the Fundamental Active Equity division. He is responsible for the fund's strategy and leader of the technology sector. Reid Menge, co-manager of the portfolio, is also the company's General Manager with over 20 years of experience. Having joined BlackRock in 2014, he is responsible for managing global equity strategies in the technology sector and covering the sector.
Assets: as of October 2024, the BGF World Technology Fund had over 12 billion dollars under management.
Management Company: BlackRock is the largest asset manager in the world, with over 10 trillion dollars under management. It has more than 19,000 employees spread across over 40 countries. Its solutions include investment products, mutual funds, iShares ETFs, alternative assets and technological platforms such as Aladdin and Efront for portfolio management.

Fund Evolution

The data shown refers to past performance. Past performance is not a reliable indicator of future results and should not be the only factor considered in the selection of a product or strategy. The class of shares and benchmark returns are expressed in EUR, while the benchmark return of the hedge fund is expressed in USD. The returns shown are based on the net asset value (Net Asset Value, NAV), with reinvestment of gross proceeds, where applicable. If the investment was made in a currency other than that used for the last calculation of the return, the return on your investment may be higher or lower depending on currency fluctuations.
Source: Factsheet BGF World Technology Fund I2 EUR to October 2024

The fund has shown mixed returns over different time horizons. Looking at the annualized results, the strategy does not stand out compared to the benchmark in the long term, a relevant aspect for institutional investors. However, its performance and selectivity shown in the last year are noteworthy.

**Source**: https://markets.ft.com/data/funds/tearsheet/risk?s=LU2134542260:USD as of 31/10/2024

Using external sources to the manager and considering the USD class over a 3-year time horizon, the fund shows a negative alpha, confirming the trend observed towards performance. The beta is slightly less than 1, indicating a risk profile similar to that of the reference market (MSCI ACWI Information Technology 10/40 Index).

In the short term (1 year), the numbers change: the fund presents a positive alpha. However, it is not enough for a long-term strategy (more than 5 years), where consistency in results is fundamental to stay in the portfolio for a long time.

Other fund indicators

**Source**: Factsheet BGF World Technology Fund I2 EUR in October 2024

The charts show that the investment team adopts an active approach, with overweights or underweights in some sectors or countries, the result of an active bottom-up process.

Interesting to note that in October 2024 the fund had about 2% of investments in small cap companies, a type that the benchmark considers marginally.