HWTF Current Market Background

The TMT sector is now globally very large, and technology is mission critical for businesses and governments alike. Penetration of mobile telephones and networked personal computers has risen dramatically. Does the sector still have attractions?

1) The sector generally has little debt, and many substantial companies have significant cash balances. This proved a drag on the sector in relative terms, when there was a credit boom, but has provided resilience in the downturn, and offers the potential for earnings enhancing acquisitions, at prices reasonable for the sellers, while cash yields so little. Furthermore, products and services are not generally acquired with debt as in sectors such as property and cars.

2) There is a significant amount of non discretionary recurring expenditure – maintenance, data centres, security such as unified threat management, rental and hosted software models, domain names, etc. Companies with recurring models may not offer the highest growth rates, but should command a premium for certainty.

We continue to be excited about our sector.

SCAM ALERT!

Have you received calls or emails from people claiming to represent Herald Investment Trust? They don’t! It’s a scam.

They’ll say they can get back – for an upfront fee – money you lost investing in binary options and carbon credits or in unregulated investment schemes now being wound up in the High Court - like Essex & London Properties, African Land, or Manor Rose Limited. They can’t! Don’t send them any money! Call Herald Investment Management immediately on 020 7553 6300 and ask to speak to one of our compliance team.

Warning issued 18th February 2020

Welcome to the website for Herald Investment Management Limited (HIML). These pages provide a brief introduction to HIML and details of the funds it manages, currently Herald Investment Trust Plc, the Herald Worldwide Technology Fund and two venture capital limited partnerships.

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