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Some examples of the sectors and trends that may provide attractive investment opportunities:
• The continuing adoption of a digital lifestyle by consumers, with digital music players, digital video recorders, digital televisions and other devices;
• Internet-enabled mobile devices becoming pervasive;
• The migration of advertising spending to the internet;
• Voice over IP (VOIP) gaining popularity as a replacement for traditional telephone lines;
• The increasing use of broadband and broadband services;
• Identity verification and security;
• NAND-flash memory technology used in personal electronics to store photographs, music and videos;
• Outsourcing and offshore location of manufacturing and services;
• The emergence of China, India and other developing countries as substantial markets and as originators of technology products and services.
We believe that overall spending on technology products and services will increase over the next few years but that growth will be modest, because spending on next-generation equipment will be offset by lower prices and a decline in the sale of legacy equipment. Superior investment returns, therefore, will require the ability to identify companies that can best exploit those market sub-sectors and geographies where substantial growth is most likely to occur. We believe that our investment approach, which uses market research techniques alongside traditional financial analysis, will help us identify some of the most rapidly growing areas of the market.
Competition among technology companies may result in aggressive pricing of their products and services, which may affect the profitability of the companies in which the Trust invests. In addition, because of the rapid pace of technological development, products or services developed by these companies may become rapidly obsolete or have relatively short product cycles. This may have the effect of making the Trust’s returns more volatile than the returns of a fund that does not invest in similarly related companies.
Other important factors to consider
An investment trust’s shares may trade below (at a discount to) or above (at a premium to) the underlying net asset value.
Please remember that past performance is no guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation and anyone who acts on it, or changes their opinion thereon, does so entirely at their own risk. The opinions expressed are based on information which we believe to be accurate and reliable; however, these opinions may change without notice.
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