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FAANG club remains active, but tech investors have grown more wary

In print this week

FAANG club remains active, but tech investors have grown more wary

Jeffrey Tan Published on Thu, Nov 15, 2018 / 9:55 PM GMT+8

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SINGAPORE (Nov 12): In the last few years, anyone who had invested in global technology stocks was likely to have earned a handsome return — usually better than that of other sectors. The sterling performance of these stocks has enabled funds that invest in them to perform well too.

Yet, over a three-year period, many of the 16 Singapore-registered technology-focused funds have underperformed their respective benchmarks. Although all the funds have generated positive returns, they fall below 20%, according to Morningstar data. This compares to the MSCI ACWI Information Technology index, which returned 56.4%. The index comprises large- and mid-cap technology stocks across 23 developed markets and 24 emerging markets.