Fund Profile

Allianz Technology Trust 31 October 2018

Disclaimer

Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by Allianz Technology Trust. 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

Around a year after it developed a specific “Brexit” page, the FT newspaper app now has a dedicated Technology section. Either this marks the very top of the market (we think not), or it is a rather late acknowledgement from the FT that the technology sector impinges ever more in every aspect of our lives and at the same time has delivered exceptionally strong returns for investors in these companies.

Allianz Technology Trust (ATT) is a very actively managed specialist investment trust, managed by one of the most experienced technology investment teams in the world, which has delivered excellent returns over the years.

Despite some clouds continuing to hang over the technology sector’s largest names, the portfolio has witnessed a significant re-shaping since September 2017. It has shifted capital away from mega caps to mid caps, and has continued to increase the number of stocks held. The ATT team now has around 50% of the portfolio exposed to companies expected to benefit from “the cloud”, and has slashed exposure to China and semi-conductors.

This represents a marked change in risk appetite and the re-positioned portfolio now offers, according to Allianz Global Investors' (AllianzGI’s) estimates, earnings growth for the next 12 months of 20%+, nearly twice that of the benchmark. Recognising that interest rates and discount rates are rising, manager Walter Price is mindful of valuations, and whilst the portfolio is expensive on a forward P/E of 33x, the realised PEG (or PE to Growth) ratio will be lower than the benchmark in the year ahead.

Walter and his team in San Francisco have developed a long-term track record stretching back several decades. The team took over management of ATT over ten years ago, over which period the trust has generated NAV total returns (to 30th Sept) of 593%, outperforming the benchmark by 202%. Over one year ATT has posted a strong relative performance against both the wider market and the DJ World Technology Index, up 10.1% in the year to 28th October 2018, against the benchmark return of 4.3%. ATT has total assets of £463m.

William Heathcoat Amory
William Heathcoat Amory is a co-founding partner of Kepler Partners LLP and leads the Kepler investment trust research team. William has over 20 years of experience as an investment company analyst. Prior to co-founding Kepler Partners in 2008, he was part of the Extel number 1 rated research team at JPMorgan Cazenove.
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2022 Kepler Growth Rated Fund

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

Fund History

22 Jun 2022 Spider's web
We outline our new quantitative system for mapping the crucial performance characteristics of investment trusts…
06 Apr 2022 Investing in technology using investment trusts
How closed-ended funds can support an active approach to the sector…
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…
04 Feb 2022 The dogs bark, the caravan moves on
A recent sell-off in tech stocks may not be an indicator of future trends…
15 Dec 2021 Investing in a world of labour shortages
A scarcity of workers may harm the economy but it doesn’t have to damage your portfolio…
21 Sep 2021 Standing out from the (discounted) crowd
A historically-wide discount is throwing ATT’s outperforming returns into a new light…
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…
11 May 2021 The infrastructure of everything
Investing in technology is no longer about a niche set of businesses – it’s universal…
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...
08 Apr 2021 Looking beyond the FAANGs for technology exposure
A reckoning for the US technology giants earlier this year has shown why a dedicated technology allocation could be vital to achieving success in this sector…
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 seems to beat every other sector hands down – in both up and down markets – but nothing lasts forever. Where else should investors be looking for secular growth themes?
20 May 2020 Riding for a fall?
We ask what could derail the multi-year tech boom…
14 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...
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...
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 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
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?
09 Mar 2018 Keep calm and carry on...
We examine the reaction of investment trust discounts amid recent market volatility...
05 Oct 2017 Winners and losers from tomorrow’s world
We highlight a subsection of managers and strategies which aim to identify and profit from innovative disruption in the global economy...
04 Oct 2017 Fund Analysis
A highly-active, concentrated and stockpicking trust aiming to deliver long-term returns by focusing on technology companies from around the world...
28 Feb 2017 Don’t wanna be an American idiot…
After such a chaotic start to Donald Trump's presidency, we look at potential options for investors in the US equity space...
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