• Technology equities surged over the past year, with IT (+67.3%) and Communication Services (+30.6%) outperforming broader markets, driven by hyperscaler AI capex from Microsoft, Alphabet, Amazon, and Meta Platforms, fuelling a strong semiconductor demand cycle led by names like NVIDIA and TSMC.
• The Eastspring Investments Unit Trusts — Global Technology Fund is a high-conviction global tech mandate, focusing on companies with AI-driven or technology-enabled competitive advantages, with SGD 1.07 billion AUM.
• The fund delivered strong returns across cycles, evident in a 1-year return of 58.3% (above benchmark +56.1%) and a 3-year annualised +33.3% (well ahead of peers).
• The portfolio is heavily tilted toward AI infrastructure, with a large overweight in semiconductors (45.1%), and key positions in Broadcom, Micron Technology, Amazon, and Alphabet, while significantly underweighting Apple and Microsoft versus the benchmark.
• The fund exhibits high active risk (tracking error 7.2%, volatility 22.3%) but strong risk-adjusted returns (Sharpe ratio of 1.3), reflecting concentrated bets on AI and semiconductors; overall it is positioned as a high-conviction way to capture the structural AI investment cycle.

The past 12 months have seen global technology equities stage one of the most powerful sector rallies. The MSCI All Country World Index (ACWI) Information Technology Index returned 67.3% over the year to 31 May 2026, while the MSCI ACWI Communication Services Index delivered 30.6%.

The common thread is artificial intelligence (AI).

Hyperscaler capital expenditure on AI infrastructure (data centres, accelerator chips, and networking equipment) has surged. Microsoft, Alphabet, Amazon, and Meta are committing hundreds of billions in combined AI investment over the coming years. This spending wave has created an unprecedented demand cycle for advanced semiconductors. This has elevated NVIDIA to a USD 5.1 trillion market capitalisation and is driving outsized earnings upgrades across the semiconductor supply chain, from foundry (TSMC) to memory (Micron, SK Hynix) to custom silicon (Broadcom).

Within communication services, the AI monetisation story has played out through advertising. Alphabet and Meta (which together account for over 60% of the MSCI ACWI Communication Services Index by weight) have leveraged AI to improve ad targeting precision and platform engagement. This has also driven strong revenue and earnings beats.

For investors seeking a single, professionally managed vehicle to capture both dimensions of this theme, a technology-focused fund with exposure across both sectors offers a compelling proposition.

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A concentrated, high-conviction technology mandate

The  Eastspring Investments Unit Trusts — Global Technology Fund aims to maximise long-term total returns by investing in technology companies globally. As of 31 May 2026, the fund held SGD 1.07 billion in assets under management.  The fund is managed by Eastspring Investments (Singapore) Limited, with Janus Henderson Investors UK Limited serving as the investment sub-manager.

The fund's customised benchmark is a blend of the MSCI ACWI Information Technology Index and the MSCI ACWI Communication Services Index, reflecting the sub-manager's mandate to invest across the full technology and communication services universe.

The fund's top ten holdings include NVIDIA (8.0%), Broadcom (5.7%), Amazon (5.6%), Micron Technology (5.3%), dual-class Alphabet (8.3% combined), TSMC (4.3%), Apple (4.2%), Meta (3.1%), and Microsoft (3.0%). This reflects a deliberate concentration in US-listed AI infrastructure and internet platform leaders.

Performance: outperforming across most time horizons

As of 31 May 2026, the fund's one-year return of 58.3% outpaces both the blended benchmark (56.1%) and the peer average (56.4%). The outperformance is most pronounced over the three-year horizon, where the fund's 33.3% annualised return exceeds the peer average by 5.6 percentage points and the benchmark by 1.5 percentage points.

Over five years, the fund returned 17.1% annualised versus the peer average of 10.4% — a 6.7 percentage point advantage — though it trails the benchmark's 18.1% over this period.

Figure 1: Performance Comparison (as of 31 May 2026)

The five-year benchmark-relative lag is attributable to the 2022 drawdown (-35.2% versus the benchmark's -32.6%), though notably the peer average fell even further (-41.3%), suggesting that the fund held up better than most peers in the downturn.

Examining individual calendar years, the fund delivered standout returns in 2023 (47.9% versus the benchmark's 45.2% and the peer average's 40.4%) and 2024 (37.1% versus the benchmark's 36.1% and the peer average's 27.8%), consistently ranking in the upper tier of its peer group.

In 2022, the fund fell 35.2%. Though this is deeper than the benchmark's 32.6%, it is materially better than the peer average's 41.3% decline.

In 2021, the fund returned 20.5% versus the benchmark's 24.8% and the peer average's 13.6%, lagging the index but outperforming peers.

Figure 2: Calendar-year Performance Comparison

Portfolio positioning: active bets versus the benchmark

Looking at the fund’s top ten holdings relative to the benchmark, the most striking difference is Apple: the fund holds it at 4.2% versus 10.9% in the benchmark (6.7 percentage points underweight). This likely reflects the fund’s capital rotation towards AI infrastructure. Similarly, Microsoft is held at 3.1% versus 7.6% (4.5 percentage points underweight).

In their place, Micron Technology (5.2% versus 2.6%) is held at a meaningful overweight as a direct play on AI-driven memory demand, while Amazon (5.6%, not a constituent of either benchmark index) provides exposure to hyperscaler cloud infrastructure spending.

Notably, despite NVIDIA's dominance of the AI semiconductor narrative, the fund holds it at 7.8%. This represents a 4.4 percentage point underweight relative to its 12.2% benchmark weight. This suggests the sub-manager's semiconductor conviction is expressed predominantly through Broadcom and Micron rather than concentrating further in NVIDIA, which already commands an outsized benchmark weight following its sharp re-rating.

Table 1: Top ten holdings comparison

#	Stock	Fund (%)	Benchmark (%)	Relative
1	Alphabet Inc.	8.3	9.6	-1.3
2	NVIDIA Corporation	7.8	12.2	-4.4
3	Taiwan Semiconductor Manufacturing Company Limited	7.3	4.4	+2.9
4	Broadcom Inc.	5.8	4.8	+1.0
5	Amazon.com, Inc.	5.6	0.0	+5.6
6	Micron Technology, Inc.	5.2	2.6	+2.6
7	Apple Inc.	4.2	10.9	-6.7
8	Meta Platforms, Inc.	3.1	3.3	-0.2
9	Microsoft Corporation	3.1	7.6	-4.5
10	Applied Materials, Inc.	2.9	0.9	+2.0
	Total	53.3	56.3	-
Source: Eastspring Investments. Data as of 31 May 2026.

In terms of sub-sector, the fund's largest allocation is semiconductors at 45.8%, which represents a 6.2 percentage point overweight relative to the benchmark's 39.6%.

At the stock level, this overweight is expressed predominantly through US-listed names rather than Asian semiconductor names. This is reflected in the fund's geographical allocation, where the US holds the largest weight of 79.6% (3.1 percentage points overweight).

South Korea is underweighted by 4.5 percentage points, with the fund holding no disclosed position in Samsung Electronics or SK Hynix within its top ten holdings, instead favouring Micron as its primary memory exposure. However, TSMC is held at 7.3% versus the benchmark weight of 4.4%, suggesting the sub-manager is selective in its Asian semiconductor exposure rather than avoiding the region entirely.

Table 2: Sub-sector allocation versus benchmark.

Sub-sector	Fund (%)	Benchmark (%)	Relative
Semiconductors & Semiconductor Equipment	45.8	39.6	+6.2pp
Interactive Media & Services	13.2	14.1	-0.9pp
Electronic Equipment Instruments & Components	9.6	4.2	+5.4pp
Broadline Retail	7.0	0.0	+7.0pp
Software	6.7	14.5	-7.8pp
Technology Hardware Storage & Peripherals	6.4	16.0	-9.6pp
Electrical Equipment	3.3	0.0	+3.3pp
Entertainment	3.2	2.5	+0.7pp
Communications Equipment	2.5	2.5	-0.1pp
Others	2.5	6.7	-4.2pp
Source: Eastspring Investments. Data as of 31 May 2026.

Table 3: Market allocation versus benchmark.

Country	Fund (%)	Benchmark (%)	Relative
United States	79.6	76.5	+3.1pp
Taiwan	7.5	7.2	+0.3pp
China	4.3	1.8	+2.5pp
Germany	2.8	1.1	+1.7pp
Netherlands	2.0	1.8	+0.2pp
Sweden	1.0	0.4	+0.6pp
Japan	0.9	3.1	-2.3pp
Argentina	0.9	0.0	+0.9pp
South Korea	0.6	5.1	-4.5pp
United Kingdom	0.5	0.3	+0.2pp
Others	0.0	2.8	-2.8pp
Source: Eastspring Investments. Data as of 31 May 2026.

Risk profile: high conviction, compensated volatility

Table 4: Key risk metrics (3-year, Class SGD).

Risk metric	3-year value
Tracking error (%)	7.2
Sharpe ratio	1.3
Volatility (%)	22.3
Source: Morningstar, as of 31 May 2026.

A tracking error of 7.2% reflects that the fund takes meaningful active risk relative to its blended benchmark. Generally, a tracking error of 5% to 10% is normal territory for fundamentally active equity strategies.

Three-year annualised volatility of 22.3% is high in absolute terms, though this is roughly consistent with a concentrated sector fund running a 45% semiconductor weight.

Taking into consideration the active risk taken and total risk carried, the three-year Sharpe ratio of 1.3 indicates that this has been broadly compensated on a risk-adjusted return basis over the period.

Conclusion

The Eastspring Investments Unit Trusts — Global Technology Fund offers investors an actively managed vehicle for capturing the structural AI and semiconductor demand cycle. Over the three years to 31 May 2026, the fund delivered 33.3% annualised against a peer average of 27.7%. As of 31 May 2026, the fund's active bets are clear and deliberate: overweight semiconductors and the United States, underweight software, hardware, and Asian technology names.

Our team currently prefers Asia Technology over US Technology, given the more attractive valuations and market conditions. As this fund is predominantly invested in US equities, we would recommend it only for investors who already hold meaningful exposure to Asian semiconductor names such as TSMC or SK Hynix.

This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report — including all investment theses, ratings, and conclusions — has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.