Fund Profile

Allianz Technology Trust 02 October 2019

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

Technology has been one of the most prominent investment themes globally in recent years, and the sector is growing to encompass an ever more diverse array of companies. One option for investors looking to exploit this theme with a highly experienced specialist investment team and strong long-term track record is Allianz Technology Trust (ATT).

The ATT team, led by Walter Price and Huachen Chen, are focused on areas of ‘innovative disruption’, looking to construct a portfolio of around typically 50-70 technology stocks (currently 72) that in their view are best placed to exploit opportunities for disruption.

With a focus on companies with strong growth prospects, the company typically has a relative bias towards mid-cap stocks as compared to passive tech exposure. The preference for profitable companies means, however, that these are generally established companies, and ATT is not seeking to operate as a quasi-venture capital fund for speculative start-ups. Nor is the team generally interested in cyclical companies masquerading as technology companies.

The team is cognisant of the wider macroeconomic and market picture, and incorporates thematic considerations into their portfolio construction. The most prominent of these themes at this time remains ‘software as a service’, with a particular focus on the possibilities for growth available to companies providing solutions in cloud computing and software security. Manager Walter Price believes that we are currently experiencing a rare epoch change as businesses shift to cloud operating systems. Although 2019 has posed some headwinds from a top-down economic perspective, operationally Walter continues to note resilience and positivity in these companies, which he expects to improve further with a stabilising global economy in 2020.

Although the portfolio typically exhibits a tendency to take greater risk exposure to the mid-cap sector of the market, the investment mandate remains flexible. As such, the managers tend to actively manage and adjust the portfolio regularly. Historically this has seen a reasonable degree of variation in geographic and market cap exposure, and the portfolio’s largest holdings can be relatively fluid.

At present the ATT management team notes that their portfolio has seen significantly greater earnings per share growth over the past three years compared to the benchmark (21.3% p.a. vs 14.7% p.a. respectively). They foresee this pattern continuing over the coming 3-5 years, with anticipated EPS growth of 24% against expected growth from the benchmark of 15%. An acknowledged risk is that ATT’s portfolio trades on a valuation premium to the wider benchmark, but the managers are satisfied that the superior growth profile adequately compensates for this.

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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

27 Jul 2022 Has the comeback begun?
Our analysts debate whether the market has fully priced in the current inflation and looming recession…
22 Jul 2022 The mother of invention (and returns?)
Finding companies that cater to an urgent need is easier than figuring out who the next Bill Gates is going to be…
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 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...
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...
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
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...
View all

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