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Philip Ripman, Senior Portfolio Manager, Storebrand Global Solutions
Solutions 3 min read time

Your global fund owns the tech giants. But what is it missing?

By Philip Ripman Senior Portfolio Manager

A global fund may sound like it gives you exposure to the whole world. But many global index funds are heavily weighted towards a handful of US technology giants. Philip Ripman, Portfolio Manager of Storebrand Global Solutions, explains where he sees opportunities beyond the market’s most prominent names, and how active management can help broaden your portfolio.

 

Past performance is no guarantee of future returns. The value of investments in funds may rise as well as fall, and you may not get back the full amount invested. Key information documents, fund information, sustainability-related disclosures and information about investors’ rights are available at www.storebrandam.com

1. What are you looking for that others might be missing?

We spend a lot of time looking at the companies behind the major trends. Take AI, for example. Everyone is talking about the technology itself, but making it work requires enormous amounts of electricity, new data centres, expanded power grids and stronger cybersecurity. That creates opportunities for companies that may not always be in the spotlight.

One example is Prysmian, a fund holding that manufactures power cables used to transmit electricity over long distances, including subsea. Another is CrowdStrike, which develops technology to detect and prevent cyberattacks.

2. What other opportunities do you see?

We look for companies addressing long-term needs across areas such as energy, water, healthcare and digital infrastructure. Water is a good example. Huge volumes of drinking water are lost through leaking pipes, creating both economic costs and pressure on an already scarce resource. Xylem, one of the fund’s holdings, develops smart water meters and technology that can help detect those leaks.

We also see opportunities in expanding access to digital and financial services. Helios Towers operates telecom towers across nine markets in Africa and the Middle East, where internet penetration remains relatively low and smartphone adoption is growing. Vodacom, another fund holding, is helping expand access to affordable smartphones and also owns M-Pesa, a mobile payments platform that allows people to send, receive, save and pay money without a traditional bank account.

These are not short-lived trends. They are driven by large and persistent needs, which is precisely where we believe interesting long-term investment opportunities can emerge.

3. I already have a global index fund. What does Storebrand Global Solutions add?

A global index fund is a good foundation for many investors. But global does not necessarily mean broadly diversified. Today, a relatively small number of US technology companies account for a significant share of many global indices.

Storebrand Global Solutions gives us the freedom to look beyond those companies and invest in businesses with different drivers of long-term growth. That can make it a useful complement to an index fund.

I have managed the fund since 2015, based on the conviction that tomorrow’s winners may be found among the companies solving problems the world cannot afford to ignore.

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The companies named are examples of holdings in the fund and should not be considered recommendations to buy or sell individual securities. Holdings may change.

Past performance is no guarantee of future returns. The value of investments in funds may rise as well as fall, and you may not get back the full amount invested. Key information documents, fund information, sustainability-related disclosures and information about investors’ rights are available at www.storebrandam.com

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More about Solutions

Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager’s skills, the fund’s risk profile and management fees. The return may become negative as a result of negative price developments. There is risk associated with investing in funds due to market movements, currency developments, interest rate levels, economic, sector and company-specific conditions. Returns may increase or decrease as a result of currency fluctuations. Prior to making a subscription, we encourage you to read the fund's prospectus and key investor information document which contain further details about the fund's characteristics and costs.