[AskTBM] What Is a Technology Fund? And Why Is Now the Perfect Time to Invest?

Learn more about how a technology fund unlocks the investment opportunities presented by the continued growth of global tech stocks, and how you can invest.

The world has seen the meteoric rise of tech stocks such as Apple, Alphabet and Amazon since their individual Initial Public Offerings (IPOs). This upward trend has continued even in recent years, with tech stocks outperforming the broader S&P 500. At the same time, technology continues to become a larger part of our lives, requiring greater investment in digital infrastructure. And AI is revolutionizing the way we work in new and surprising ways. As our changing world embraces technology, the outlook for tech stocks remains positive. For Filipinos, the questions are clear: How do you invest in global tech stocks? Is there a technology fund that can allow you to reap the benefits of this opportunity?

In the past, local investors may have had limited access to these dollar-denominated assets; however those days are over. Financial products now exist where investors can simply place their money in a peso-denominated technology fund, not unlike a mutual fund or variable universal life (VUL) insurance.

In short, tech companies are driving much of the growth of the world economy. And now, Filipino investors can participate in this growth opportunity through a technology fund. Read on to learn more.

Why Is Now the Perfect Time to Invest?

When it comes to investing in tech stocks or in a technology fund, a number of factors come into play. And while the outcome of the market is never certain, many experts believe that the perfect time to invest could be now.

1. Short-term volatility, long-term growth.

The tech industry has always been prone to short-term volatility, and it is undergoing one such period now. Layoffs by tech companies dominated headlines early this year and questions of overvaluation persist, resulting in drops in stock prices.

Short-term volatility also presents an opportunity. If tech stocks continue to rise in the long-term, price shocks can allow investors to buy into tech stocks at a low cost while the stocks climb in value over the long-term.

And there is reason to believe that tech companies will continue to grow. According to a report by Forbes, tech companies are cash-rich, allowing them to weather current high interest rates in the economy, and they continue to create real revenue growth.

2. Innovations such as AI continue to drive capital investment.

In the same Forbes report, analysts noted that technology spending remains high across many industries. This is driven in large part by the adoption of AI across various business processes. With such strong spending on technology in place, tech companies are ideally positioned for further growth.

What Is the PRULink Global Tech Navigator Fund?

The PRULink Global Tech Navigator Fund by Pru Life UK is a prime example of how Filipino investors can take advantage of the opportunities presented by technology.

According to Pru Life UK Vice President and Chief Product Officer Garen Dee, “The PRULink Global Tech Navigator Fund is proof of our purpose to help Filipinos achieve their financial goals. Through our investment-linked insurance products, we want our customers to have access to the growth of tech-driven companies worldwide with a fund that largely invests through ATRAM in the Fidelity Funds – Global Technology Fund of Fidelity International.”

What should you know about this technology Fund?

1. It is a technology fund that provides access to the world’s leading tech giants.

Through the PRULink Global Tech Navigator Fund, Filipino investors can take part in a fund that invests in the world’s leading tech companies such as Apple, Microsoft, Amazon, Alphabet, and more.

2. It is a peso-denominated fund.

Investors can use Philippine pesos to participate in the Fund. This presents another opportunity: gains can be made by the Fund depending on how it manages foreign exchange rates.

3. It is a feeder fund with investments in the Fidelity Funds-Global Technology Fund.

A feeder fund pools investments from individual clients and invests it in a target fund. In the case of PRULink Global Tech Navigator Fund, it invests in Fidelity Funds-Global Technology Fund of Fidelity International, through ATRAM Investments.

Fidelity Funds is a leading and award-winning global asset manager with over 50 years of experience managing USD 862 billion of assets as of June 30, 2024. The company services 2.57 million clients globally.

With Fidelity at the helm of this fund, investors do not have to manage trading. Investors benefit from the promise of tech stocks without the need to actively participate in the complexities of the stock market.

4. It has a diversified portfolio.

To manage risk, the fund has a diversified portfolio that includes tech-related companies outside the traditional IT sector. These include companies in the larger tech world, in transportation, energy, and entertainment. These investments help to mitigate risk while remaining focused on technology.

Is This Fund For Me?

The PRULink Global Tech Navigator Fund was made for a wide range of investors. Specifically, it was made for these three kinds of investors with an aggressive investment appetite:

1. Tech Natives. Are you a young professional who wants to ride the growth of the tech sector?

2. Growth Seekers. Are you an experienced investor? Are you looking for additional income generation?

3. Wealth Accumulators. Are you a high-net-worth individual? Do you want to diversify your wealth globally?

If these profiles fit your description, the PRULink Global Tech Navigator Fund could be the answer to your financial needs.

What Other Benefits Do I Get?

The PRULink Global Tech Navigator Fund is available with new and existing investment-linked Pru Life UK insurance products. This means you can be financially protected while you grow your wealth.

In addition to the expertise of Pru Life UK, investors to the technology fund also benefit from ATRAM and Fidelity’s world-class fund management, companies whose strong track records speak for themselves.