Big-caps focus of Fidelity tech, telecoms funds

PUBLISHED : Wednesday, 22 September, 1999, 12:00am
UPDATED : Wednesday, 22 September, 1999, 12:00am

Fidelity Investments is set to take advantage of the race for technology and telecommunications stocks with the launch yesterday of two sector funds for Hong Kong investors.

The world's largest independent fund management organisation said the technology and telecommunications funds would invest globally, with a strong bias towards large-cap stocks.

The telecommunications fund could include in its portfolio regional stocks such as SmarTone Telecommunications Holdings, Cable & Wireless HKT, Singapore Telecommunications, Korea Telecom Corp and Telstra Corp.

'I think we have a very wide selection of companies in the [Asian] region,' country fund manager Pratima Abichandani said. 'I think a big chunk of the [telecommunications] fund will initially be the large-cap companies and we are looking all the way from developed markets like Australia, Hong Kong and Singapore to developing markets like Korea and Thailand.' Fidelity said it was interested in Internet companies, but this area alone was still a growth sector and participation in the sector could be through leading telecommunications firms which had expanded into this area.

Fund manager Wanni Lin said it was difficult in Asia to single out a potentially dominant Internet provider.

Ms Lin said: 'In Asia, the markets are a little bit different from the US . . . you have different countries speaking different languages so it's more difficult to identify any particular company that may dominate in Asia.'