NZ Funds Global Technology Fund

Tuesday, May 23rd 2000, 10:01PM

The Global Technology fund is managed by Boston-based Wellington Management Company.

The fund's investment objective is to seek long-term capital growth while maintaining adequate diversification by investing in a portfolio of technology stocks.

It aims to outperform the Goldman Sachs Technology Index or an appropriate global index over a market cycle.

Investment Returns as at December 31
	1yr	2yrs	Since inception*
Global Technology	121.7	96.2	78.0
Goldman Sachs Index	88.6	78.4	58.4
*Wellington Management returns are shown before all investment management fees and custody expenses. Index returns are before transaction costs, management fees and other expenses.

Investment Approach

The manager uses bottom-up security selection based on proprietary fundamental research and valuation analysis

Focus on direct contact with company management and suppliers, and competitors
Determine favourable investment opportunities not yet recognised by the market.

Identify sub-sectors likely to benefit from the intermediate-term environment

Overweight or underweight sub-sectors based on supply and demand characteristics, secular trends, existing product evaluations and new product developments.

The portfolio is made up of four groups, namely:

Information technology services
Communications equipment
Software, Internet and New Media
Semiconductors and equipment, computer hardware and peripherals.

Top 10 Holdings as at December 31
Company	Business	% of equities	% Goldman Sachs index
Microsoft	Software and services	8.6	7.4
Cisco	Computer networking	8.4	9.0
America Online	Online computer services	7.1	4.3
Redback Networks	Computer networking	5.2	0.0
Exodus Communications	ISP	4.7	0.0
Motorola	Semiconductors/comms equipment	4.5	2.3
Hewlett-Packard	Computer services	4.1	3.0
IBM	Consumer prods and services	3.9	4.7
Brightpoint	Wireless communications	3.2	0.0
Lucent Technologies	Telecommunications systems	3.1	6.0