Singapore-based UOB Asset management said today it hopes to raise at least S$30m (E18.2m) initially from a new fund, United EuroTech Fund, to invest in leading European technology, internet and telecom stocks, Reuters reports.
The fund is due to be launched on 15 January and will be managed by UOB Asset Management and sub-managed by Louvre Gestion, a wholly-owned asset management unit of France’s Banque de Louvre.
Referring to caution about technology stocks, UOB Asset Management managing director Daniel Chan said the response to the new fund could be quite measured, but added time was ripe for investors to pick up technology shares again.
The news service reports Emeric Preaubert, a fund manager at Louvre Gestion, who told a news conference that the European technology sector looked set for earnings per share (EPS) growth of 32 per cent in 2001, against 18 per cent for US technology companies, and an average 11 per cent for the European market.
“We’ve seen many profit warnings from US companies, but there have been fewer profit warnings in Europe and the slowdown in Europe is less acute than that in the United States,” he said.
UOB Asset Management, a unit of United Overseas Bank, manages $4bn of assets, while the Banque de Louvre group manages over E6bn worth of assets.