Sarasin to merge away Digital Opportunities fund

Investor focus shifted

Sarasin has decided to merge its Digital Opportunities fund with the Sarasin Responsible Global Equity fund as it does not “foresee a scenario” that would “bring about an upturn in the fund’s performance and long-term viability”.

In a letter seen by Investment Week, Sarasin told investors that the markets the digital fund invests in "have changed significantly since it launched". "The markets appear to favour a small number of ‘mega-cap' technology companies over the small and medium-sized companies such as those in which the fund invests," the letter stated. "Sarasin doesn't foresee a scenario, within the next two to three years at least, which would see investors focus again on the small and mid-sized digitalisation companies within the fund's investment strategy." The Digital Opportunities fund, which is co...