Fund Profile

Allianz Technology Trust 26 November 2024

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
ATT offers access to the market-leading tech titans for 10% below the market price…
Overview

Allianz Technology Trust (ATT) aims to harness the extraordinary growth unlocked by new developments in the tech sector, as they spread out from early adopters to become embedded across the economy. Over the last decade the trust has delivered over 730% to investors. This is a hard figure to picture, so might be better thought of as 25% a year, each year, for ten years. As we highlight in the Performance section, the trust performed outstandingly well in both the first five years and the second five years of this period, as the technology ecosystem has transformed itself but maintained exceptionally high earnings growth.

The trust is managed by Mike Seidenberg, a multi-decade specialist in the sector, who works with an equally experienced and equally specialist team based in Silicon Valley. The managers have great access to corporate management teams and to competitors, suppliers and clients in the tech ecosystem. Mike aims to diversify the portfolio across the key themes he sees as likely to deliver growth in the coming years, and identify those businesses best able to lead the way by generating high levels of free cash flow. As well as AI, key themes in the current portfolio are cybersecurity and the cloud, while Mike has built up a meaningful overweight to software, in recognition of what he sees as attractive valuations.

Discounts widened across the investment trust sector in 2022 and 2023, and ATT did not escape, despite the strong returns delivered in 2023 and in 2024 so far. The discount is 10% at the time of writing, with the board having implemented a meaningful buyback programme.

Analyst's View

In our view the double-digit Discount on ATT and its sector peers’ shares stands out as one of the most attractive opportunities in today’s investment trust sector. The technology sector has delivered exceptional returns over the past two years, backed up by stellar earnings growth from some of its largest components. NVIDIA’s latest quarterly earnings were up 122% on last year’s and Meta’s 19%, while Microsoft has posted 19% earnings growth for its 2024 financial year. ATT has ridden this wave to NAV returns of c. 36% over 12 months, yet the shares trade on a 10% discount. In our view, this makes no sense, and is a glaring opportunity to access the hottest sector in global markets, which is being fuelled by the transformative power of AI and trades on healthy stock-level valuations, on a 10% discount. The reasons for that discount seem to us to be technical, and to do with the UK investor hiding in high interest cash accounts and bonds. This has not worked well.

We think ATT is an attractive way to access the growth opportunities in the tech sector. Mike and the team are on the ground in the thick of the action, and between them have many decades of experience specialising in the sector. The approach is measured, with considerable attention paid to diversifying the risks in the portfolio, which we think is prudent, given the potential volatility in the sector. In particular, we note that the portfolio has the potential to benefit if the heat comes out of the AI trade and investor attention broadens out into other themes where the growth opportunity looks good but the valuations are less aggressive.

Bull

  • Discount may offer a great long-term entry opportunity
  • More diversified technology exposure, greater focus lower down the market-cap spectrum
  • Strong performance track record, may continue in an easing macro-environment

Bear

  • At times volatility can be higher than more diverse global equity strategies
  • Single sector focus increases sector-specific risk
  • High growth strategy may underperform in a value-driven market
Continue to Portfolio

Fund History

27 Nov 2024 What would Kenny Rogers do?
As the world waits for the Trump show to start in earnest, should you hold ‘em, fold ‘em, walk away or run?
26 Nov 2024 Fund Analysis
ATT offers access to the market-leading tech titans for 10% below the market price…
30 Oct 2024 Cream of the crop
We identify those trusts that use the distinctive features of investment trusts to the full…
04 Sep 2024 Five reasons to be cheerful about the outlook for your portfolio
Our analysts think global markets look likely to continue their ascent…
10 Aug 2024 Don’t tell ‘em your name, Pike
Market turmoil throws up opportunities…
03 Jul 2024 A really great stockmarket, the best, some tell me the best they’ve ever seen
US equities should be the bedrock of any diversified portfolio…
10 May 2024 O' fickle fortune!
The Magnificent Seven have replaced the FAANGS as the darlings of the stock market, but we think it pays to bear in mind how quickly things can change…
26 Mar 2024 Fund Analysis
ATT offers significantly discounted exposure to the technology sector…
22 Mar 2024 Trend setters
We take a look at four mega-trends to future-proof your portfolio…
13 Mar 2024 Roller coaster ride
Thematic funds have seen significant outflows over the past two years…
20 Mar 2024 Allianz Technology Trust
Michael Seidenberg
Rewatch this webinar as part of our month-long online series 'Themes for your ISA in 2024' hosted by the team at Kepler Trust Intelligence throughout March...
Watch Recording
14 Feb 2024 Rise of the Machines
We look at some potentially exciting technology themes outside of the AI realm and share ways for investors to gain exposure without the hefty price tag…
02 Feb 2024 Extra chips with that please
We take a closer look at the booming semiconductor sector and how investors can tap into its growth potential….
10 Jan 2024 Definitely maybe
Fund flows and discounts may shed some light on a once-in-a-generation opportunity…
27 Oct 2023 What else?
Some trusts still offer attractive return potential, without the high valuations the US offers...
18 Oct 2023 Computer says no
Markets are fixated on replacing humans with AI, rather than maintaining them with biotech. Could this be an opportunity to rotate profits?
18 Aug 2023 Fund Analysis
ATT offers stock selection prowess in a high growth sector, yet is trading at a wide discount…
28 Jul 2023 It’s Déjà vu all over again
US stocks continue to trade at high valuations. Is that warranted and are there other options for investors looking to get exposure to the world’s largest economy?
19 Jul 2023 Simply the Best
Investing in high quality companies was a successful strategy for many years, but has its time passed?
23 Jun 2023 Mind games
AI may be dominating headlines but investors need not redraw their portfolios…
19 Apr 2023 Are we nearly there yet?
We look at which trusts have done best year to date, and ask where there may be value…
10 Mar 2023 The first course: week one of our ISA event in review
We look at the first four presentations of our ISA season event…
08 Mar 2023 Allianz Technology Trust - Live from Silicon Valley
Michael Seidenberg
Rewatch this webinar from our month-long online series 'A feast of ideas for your ISA' hosted by the team at Kepler Trust Intelligence throughout March…
Watch Recording
20 Jan 2023 Is demography destiny?
China may get old before it gets rich...
21 Dec 2022 Reasons to be cheerful
We find reasons to be cheery this Christmas in the long-term trends which are going to transform society and generate returns…
23 Nov 2022 Guns n’ roses
A sustainable future for the free world may depend on investments in weapons and oil as well as traditional ESG friendly assets…
13 Oct 2022 Fund Analysis
Robust portfolio, a sector sell-off, and a wide discount make ATT a ‘buy the dip’ opportunity…
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 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
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

Welcome to Kepler Trust Intelligence

Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a trust
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
Please select an option
{{item.msg}}
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.