Fund Profile

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
Despite ATT’s strong long-term performance, it trades at an attractive discount…
Overview

Allianz Technology Trust (ATT) aims to capitalise on the most exciting companies within the global technology sector. Run by lead portfolio managers Walter Price and Huachen Chen, who each have approximately four decades of industry experience, the team follow a bottom-up approach to stock selection that blends a thematic approach to investing with a highly diversified portfolio.

Recently the team have found new opportunities in the semiconductor and cyber security sectors, with recent developments leading to their increased confidence, as we discuss in the Portfolio section. The team are also increasingly confident in the long-term tailwinds behind the broader technology sector, given the increasing gap between the demand for the services the sector provides and its ability to fulfil them. The team have also re-initiated a large position in Tesla in recent months, encouraged by the company’s increasing production levels and profitability.

ATT has been able to demonstrate enviable long-term performance, beating both its benchmark and closest peer over the last five years. However, ATT has underperformed over the last 12 months, though this is primarily a consequence of the team’s commitment to diversification, which prevents them from overweighting the mega-cap technology stocks that dominate its benchmark. We describe ATT’s recent returns, as well as the long-term potential of the strategy, in the Performance section.

ATT has recently seen its Discount widen, likely as a result of the volatility which growth stocks have seen in light of increased inflation rates. ATT currently trades on a 7.4% discount, which is wider than its five-year average.

Analyst's View

In our view, ATT continues to represent one of the most compelling ways to access the technology sector, and by extension provides an opportunity for investors looking to add a growth-factor strategy to their portfolio. Given ATT’s formidable track record, the team’s thematic approach to stock selection has clearly been a benefit. Yet what is arguably more of an advantage is the team’s commitment to diversification, as it allows ATT to offer investors a truly diversified portfolio of global technology stocks. This attribute, along with ATT’s allocation to mid-cap stocks, differentiates the trust from wider global and technology indices, which are increasingly dominated by mega-cap tech stocks. We also note that the team’s enormous amount of experience is a clear advantage for the trust (see Management), as it has allowed the managers to witness the rise and fall of numerous trends within the tech sector.

While unfortunate, we believe ATT’s recent performance should not be a concern for long-term investors. It is natural for growth stocks like many of ATT’s holdings to be broadly sold off in an inflationary environment as investors react to levels of inflation not seen in four decades. Given the macro-driven nature of the sell-off, investors may view the resulting discount that ATT currently trades on as an attractive entry point, given the team’s faith in the secular trends driving growth in their underlying companies.

BULL BEAR
Highly diversified portfolio in a sector dominated by a handful of companies
Potential to underperform in certain market environments, given its active approach
Strong track record of outperformance relative to both benchmark and wider peers
Higher risk profile may be unsuitable for cautious investors
Discount potentially offers attractive entry point
Pays no dividend
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

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...
View all

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