Fund Profile

Disclaimer

This is a non-independent marketing communication commissioned by Allianz Global Investors. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
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Overview

Allianz Technology Trust (ATT) offers investors a specialist, bottom-up investment approach to the global technology sector, with the sole objective of total return maximisation. ATT is led by an experienced four-strong team, with the lead managers Walter Price and Huachen Chen having been working together for over 30 years.

The team often follow a thematic approach to their stock selection, believing their holdings to be the ‘winners’ of the emerging trends within technology by (for example) offering ground-breaking cloud computing or providing new technological solutions to society’s problems, such as the current tight labour market. The team are conscious of the market’s current sentiment about pandemic recovery stocks, and so have repositioned ATT’s portfolio towards cyclical stocks to capitalise on the market rotation. We cover the team’s approach to investing, and the recent changes made, in the Portfolio section.

ATT’s performance is enviable, with the trust having outperformed both its benchmark and closest peer over the long and short term, as we outline in the Performance section. While the team’s trend-centric approach is conducive to long-term growth, ATT has been a standout performer since the start of 2020 with NAV returns over three times those of global equities, outperforming by 64%. As a growth-oriented strategy ATT carries with it enhanced volatility; however, its strong return profile more than makes up for this, with the trust having delivered attractive risk-adjusted returns.

ATT currently trades on a 7% discount which, as we describe in the Discount section, is anomalous compared to its long-term average.

Kepler View

We believe ATT continues to offer investors a differentiated way of accessing the long-term growth potential from technology companies. ATT’s attributes include the continuity and experience of the trust’s management team, their long-term approach to stock selection and trend identification, and ATT’s continued track record of outperformance (although past performance should never guide one’s expectations of future returns).

ATT also brings with it unique factors which further enhance its attractiveness. The team continue to hold a substantial weighting to mid-cap stocks, which not only enhances ATT’s potential returns given the higher growth rates the team associate with the sector, but also improves the diversification benefits. We believe that ATT’s higher volatility is offset not only by its strong performance, but also by its unexpected downside protection because of its low downside capture ratio relative to both global equities and its benchmark, a result of its idiosyncratic portfolio and high active share.

Our confidence in the strategy is bolstered by the team’s recent changes to ATT’s portfolio, which demonstrate that the team are not only able to identify the emerging trends within technology, but are also able to adapt the portfolio to near-term market dynamics. This is an important consideration given the volatile period growth stocks have seen since Q4 2020. As a result, we believe that ATT’s current discount is an anomalous but attractive entry point which is the result of near-term aversion to high-growth strategies, rather than a reflection on ATT’s long-term prospects.

bull bear
Strong track record of outperformance relative to both benchmark and wider peers Does not pay a dividend
Highly experienced management team, with the two lead managers having had a long tenure at the trust Higher volatility compared to benchmark
Current anomalous discount may offer an attractive entry point Growth stocks may remain out of favour during the pandemic recovery
Continue to Portfolio
2022 Kepler Growth Rated Fund

This trust has been awarded a rating by Kepler Trust Intelligence for growth... Find out more

Fund History

27 Jul 2022 Has the comeback begun?
Our analysts debate whether the market has fully priced in the current inflation and looming recession…
22 Jun 2022 Spider's web
We outline our new quantitative system for mapping the crucial performance characteristics of investment trusts…
25 Mar 2022 Slides and Audio: Allianz Technology Trust
Download the presentation and listen to the audio from our 'Ideas for your ISA' virtual Spring event on 17 March...
23 Mar 2022 Fifteen ideas for your ISA
Slides and audio from our event last week, featuring fund managers running money in every major market in the world...
23 Feb 2022 Regime change
Ahead of our spring conference, we ask whether investors need to junk their portfolios and start again…
09 Feb 2022 Fund Analysis
Despite ATT’s strong long-term performance, it trades at an attractive discount…
14 Jul 2021 Fund Analysis
ATT's active approach means current discount could offer opportunity…
30 Jun 2021 Inflation – a real threat or hot air?
Two of our analysts ask whether recent high inflation numbers indicate something long-lasting and troubling is happening…
22 Apr 2021 FAANGs for the memories
The massive outperformance of mega-cap tech last year could become a thing of the past if anti-trust legislation and negative sentiment starts to bite...
31 Mar 2021 East End boys and West End girls
Our analysts debate whether the US or Asian stock markets will deliver the best returns over the next decade…
24 Mar 2021 Shoot to Thrill: ISA targets for long term growth
We all intend to invest for the long-term but can often be distracted by the news...
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: Allianz Technology Trust
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 03 March...
20 Jan 2021 Kepler's top-rated investment trusts for 2021
We update our annual quantitative ratings for investment trusts…
16 Dec 2020 Fund Analysis
ATT offers a unique portfolio of technology stocks, performing strongly during COVID-19…
19 Nov 2020 Hope springs eternal
The US election has given long-suffering value investors new hope of a 'great rotation' in their favour, but that light at the end of the tunnel could in fact be a train…
26 Aug 2020 Trump v. Biden
Two of our analysts debate who will win the US election and what that means for markets…
15 Jul 2020 Why stagflation is likely and how to protect your portfolio from it
Our analysis suggests a combination of cost-push inflation and economic hardship could lead to a short, but unpleasant, period of stagflation...
09 Jul 2020 The next big thing: two mega-trends that everyone should own
Tech has beaten almost everything hands down – but nothing lasts forever. Where else should investors be looking for secular growth themes?
16 Jun 2020 Factor performance and the COVID-19 effect
Will value continue to move into the black, or fade to red?
20 May 2020 Riding for a fall?
We consider the risks which could derail the multi-year tech boom…
13 May 2020 Braving the new world
Join 15 of the UK's best known fund managers at the Kepler Trust Intelligence Virtual Summit to find out how they see the world after the pandemic...
13 May 2020 Sea change
While global giants like Amazon still hold the weather gauge, we examine the long term prospects for a shift in the prevailing wind...
15 Apr 2020 Fund Analysis
Active specialist manager, performed strongly in the COVID-19 downturn...
02 Oct 2019 Fund Analysis
The Allianz Technology Trust invests in a portfolio of technology companies, with a bias towards mid-cap companies with significant earnings growth potential...
10 Apr 2019 Because they're worth it
With the rise of the passives putting more pressure on fees than ever before, we argue that performance fees could be the key to encouraging truly active investment trust managers...
29 Mar 2019 Fund Analysis
A very actively managed specialist trust, with one of the most experienced technology investment teams in the world at the helm...
31 Oct 2018 Fund Analysis
Allianz Technology Trust is a very actively managed specialist investment trust, managed by one of the most experienced technology investment teams in the world...
31 Oct 2018 The Trump effect
Two years after the shock election of Donald Trump, we take a look at what the Trump administration has really meant for US markets and the trusts that invest in them...
26 Apr 2018 The $23.9 trillion dollar question*
Are US equities, which have hit record highs on 71 occasions in the last 12 months, overpriced or are they actually trading at a price worth paying?
26 Apr 2018 Fund Analysis
Allianz Technology Trust (ATT) offers exposure to companies involved in 'innovative disruption' in sectors as wide ranging as automobiles, advertising, security, retail and web services
27 Sep 2017 Winners and losers from tomorrow’s world
Searching for the Tesla of tomorrow…
27 Sep 2017 Fund Analysis
A pure exposure to disruptive technology...
21 Feb 2017 Don't wanna be an American idiot
We highlight various routes to US exposure for those who are not sure how much faith they place in the 'Trump Bump'...
16 Feb 2017 Fund Analysis
16 Nov 2016 Fortune favours the brave
Our analysis shows that technology trusts are far less risky than the returns they have generated suggest...
View all

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