Wells Fargo & Co. and Federated Investors each launched mutual funds Tuesday that invest in companies looking to benefit from the integration of the Internet into the national economy.
The Wells Fargo OTC Growth Fund invests in companies in the computer hardware, software, telecommunications, retail/wholesale trade, and biotechnology sectors, the San Francisco banking company said in a press release. It is only available as a no-load fund through Wells' online brokerage, the company said.
The fund will have 70 to 85 stocks in its portfolio at any given time and aims to outperform the Nasdaq 100, the release said. Wells hired Golden Capital Management in Charlotte, N.C., to manage the fund. Greg W. Golden and Jeff C. Moser will be the portfolio's managers.
Federated's New Economy Fund is available through traditional brokerage and banking channels, the Pittsburgh fund company said. It invests primarily in well-capitalized companies but also buys shares of small- and mid-cap companies when appropriate, the company said.
The Federated portfolio is not exclusively a technology sector fund but invests in sectors, such as biotechnology and retail, that are poised to benefit from the spread of the Internet, the company said in a press release. The fund blends growth companies and value strategies and is benchmarked to the Standard & Poor's 500, Federated said.