Launched on 8 October, the Pictet Robotics fund lays claim to be one of the very first funds that, as it names suggests invests in the robotics sector, but also in artificial intelligence technologies.

As a fund management group Pictet is no stranger to running so-called thematic funds; in addition to its latest offering it manages eight portfolios including water, timber and security offerings. If investors feel they might be spreading themselves a bit thin investing in one theme, they can instead opt to invest in the Pictet Global Megatrends fund, which managed by Hans-Peter Portner, invests in each of the thematic funds in equal measure.

In the marketing literature for the fund the group makes a compelling case for the sector, with it aiming to “capitalise on the growth of an industry that is forecast to expand as much as four times faster than the global economy over the next decade”. The problem is that for the less sophisticated investor even a more generic technology-only fund is cause enough for a headache.

It was only 15 years ago that investors were swarming into funds branded Tech Tornado and NetNet as fund manager groups launched funds left right and centre to take advantage of the “new paradigm” and we all know what followed next.

That is not to suggest that the new Pictet will go the same was as Tech Tornado, not if we are to believe the predicted growth rate. However if the prospects for the sector are as strong as we are to believe, less sophisticated investors might want to consider trying to gain access to it through a more generalist vehicle. That way if it does soar they will have gained a portion of the upside, but if things do go sour they are more protected.

Indeed Hargreaves Landown’s head of research Mark Dampier says he does not go near single trend funds. Indeed he has been removing most single strategy funds, including all tech funds, from the firm’s Wealth 150 list of recommended funds.

“The problem is that the asset class will go off like a rocket and then plummet,” he says. “Then it will go sideways for a number of years, clients get bored and move off the new exciting idea. The time to buy such funds is when the sector is flat on its back, which in most cases is a few years after the launch.”

Indeed Dampier admits that most of his problems have arose by not selling funds at the right time. He notes: “Most private clients are not good at making sector calls and would be better off in more generalist funds that can instead pick the right time to invest in such themes as robotics.”

[article_related_posts]