Portfolio & Performance

ISINGB0003390720
SEDOL0339072

Share Price is the price of a single ordinary share, as determined by the stock market. The share price above is the mid-market price at market close.
Share Price
1828.0p


Net Asset Value (NAV) per Share is calculated as available shareholders’ funds divided by the number of shares in issue, with shareholders’ funds taken to be the net value of all the company’s assets after deducting liabilities. The NAV figure above is based on the fair/market value of the company’s long-term debt and preference shares (known as debt at market value). This allows for the valuation of long-term debt and preference shares at fair value or current market price, rather than at final repayment value (known as debt at par).
NAV per Share
1819.5p


Premium/Discount. Since investment company shares are traded on a stock market, the share price that you get may be higher or lower than the NAV. The difference is known as a premium or discount.
Premium/-Discount
0.5%


Dividend Yield is calculated using the latest full year dividend divided by the current share price. Allianz Technology Trust does not currently pay a dividend.
Dividend Yield
0.0%

Data source DataStream and Allianz Global Investors as at 21.01.2020 based on market close mid price.

Awards & Ratings

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Money Observer Investment Trust Awards 2019: Allianz Technology Trust won the Best Large Trust category, in recognition of its consistent, high achievement. The publication noted that ATT achieved the highest returns among this year’s award-winners (performance measured over three years to 31 January 2019), calling it “a worthy winner of our most prestigious sector award”. This accolade is an independent, statistical and qualitative assessment of ATT’s performance and highlights the Trust’s outperformance both in its class and against its peers.
X
Money Observer Rated Fund 2019: Allianz Technology Trust has been included in Money Observer’s Rated Funds list for 2019. The list recognises open-ended funds and close-ended investment companies that have demonstrated consistent outperformance or that have been chosen as ideal routes into specific markets and sectors, reflecting the current investment environment.
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Investment Week Investment Company of the Year Award 2019, Specialist category: Allianz Technology Trust won this coveted award in November 2019, having also been victorious in 2018, 2017 and 2015. This award recognises excellence in closed-ended fund management and highlights ATT’s consistent performance over time. The judging panel was made up of some of the UK's leading researchers and investors in investment trusts and closed-ended companies, as well as several senior board members with many years' experience in the industry.
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Citywire's A fund manager rating 2019: Citywire is the only firm to exclusively rate managers, not funds. The manager’s track record is scrutinised with a methodology approved by an independent actuary. The ratings take account of a three-year performance record and is updated every month. It is entirely quantitative with the analysis being based on the information ratio, a recognised measure of risk-adjusted performance. It also takes into account career moves and all the funds a manager runs. In order to be rated, a fund manager will need to beat his or her benchmark over a three-year period. A benchmark is often the relevant stock market index. Fewer than 25% of fund managers tracked by Citywire will actually achieve this.
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Morningstar Rating: Allianz Technology Trust has a 5 star rating with Morningstar. This is a risk-adjusted, cost-adjusted comparison of fund performance within fund categories. The underlying methodology is robust and accounts for periods of volatility-downward volatility in particular-and also adjusts for fund expenses, including sales charges. That means the more expensive the fund is, the harder it will be for the fund to earn a high star rating.
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Best Investment Trust for The Online Personal Wealth Awards: We are pleased to announce that the trust has been selected as Best Investment Trust for 2018 again by the users of MoneyAM. The trust was previously selected in 2017 too.
Source and copyright of Citywire. Walter Price is ‘A’ rated by Citywire for his three year risk-adjusted performance for the period 30/09/2016 to 30/09/2019. Citywire awards apply to the Manager, rather than the Fund.
© 2019 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Portfolio

The data shown is not constant over time and the allocation may change in the future. Totals may not sum to 100.0% due to rounding. All data source Allianz Global Investors unless otherwise stated.

Top 10 Holdings (%)

Microsoft
7.8
Apple
4.5
Facebook
4.3
Taiwan Semiconductor
3.5
Paycom Software
3.3
Mastercard
2.8
Samsung
2.6
Teradyne
2.6
Fortinet
2.3
RingCentral
2.3

Data as of 31.12.2019

Geographic Breakdown (%)

North America 87.7
Europe ex UK 5.4
Far East & Pacific 2.6
UK 1.8
Cash 2.6

Data as of 31.12.2019

Sector Breakdown (%)

Technology
77.1
Consumer Services
6.4
Industrials
4.9
Financials
4.7
Consumer Goods
3.5
Utilities
0.7
Cash
2.6

Data as of 31.12.2019

Market Cap Breakdown (%)

Over US $100bn 36.5
US $10bn to 100bn 42.9
US $1bn to 10bn 17.3
Under US $1bn 0.7
Cash 2.6

Data as of 31.12.2019

Fund Manager Comments

Portfolio Overview

The Allianz Technology Trust’s NAV returned -0.9% in December, underperforming the Dow Jones World Technology Index return of 2.6%. During the month, both stock selection and industry allocation detracted from relative performance.

Our position in electric vehicle maker, Tesla, was the top relative contributor. Shares gained amid reports that the company’s Chinese plant would soon start making vehicle deliveries. This was ultimately confirmed at the end of the month with the first Model 3 sedans going to company employees. Along with the first deliveries, it was reported that Tesla could reduce price on the Chinese produced models by 20% or more next year as production scales and supply chains mature, which could spur further demand. We acknowledge the high variability of cash flows given the capital intensity of the company’s strategy. This variability of cash flows makes the shares more sensitive to changes in business trajectory and the perception of capital conditions. We are mindful of this sensitivity and manage the position size in the portfolio to reflect these issues.

Our position in semiconductor manufacturer Advanced Micro Devices was also a top relative contributor during the period. Shares gained along with other semiconductor stocks after the US and China reached a phase one trade agreement. AMD has executed solidly and delivered new products (PC Client CPUs, Gaming GPUs, and Server CPUs) enabling unit share gains. The Compute/Graphics business segment (71% of revenues) grew 36% year over year in the third quarter driven by increased shipment of PC client CPUs for desktop and notebook applications.

Other top active contributors included an overweight position in Taiwan Semiconductor, an underweight position in Alphabet (Google’s parent) and not owning Oracle.

Our position in cloud security company Zscaler was a top relative detractor during the period. The company reported strong quarterly results driven by 48% revenue growth, ahead of forecasts of 42%, and 37% orders growth, ahead of forecasts of 25%. Despite the very good results, shares were down in December as most analysts continue to have a hold on the stock and found reasons not to compliment the company. Customers are increasingly adopting Zscaler’s products, which provide a single platform to enforce business and security policy for their users to access multiple applications and services. Our conviction in Zscaler remains high as the company has a significant growth opportunity and compelling competitive advantages with its unique capabilities in cloud security. Additionally, customers are seeing a quick return on their investment, which is a very strong selling point for Zscaler relative to competitors. The company is the leader in cloud security, the fastest growing sector in the security universe.

Our position in Okta was also a top relative detractor despite reporting strong quarterly results with revenue growth of 45% year over year. Management articulated a confident and strong environment for their offering and excitement around some of their new offerings (Access Gateway in particular). The valuation is expensive, which is the biggest investor concern about a company that appears to be in position to becoming a de-facto standard in identity security as companies move to the cloud. The world's largest organisations are increasingly realising that identity security is essential to their cloud, digital transformation, and security initiatives. Okta has a compelling opportunity to disrupt the large market for identity and access management. A growing market opportunity, strong execution, and new product launches should further advance Okta’s leadership in identity security.

Other top active detractors included an underweight position in Apple and overweight positions in Paycom and Roku.

Market Outlook

We continue to believe the technology sector can provide some of the best absolute and relative return opportunities in the equity markets – especially for bottom-up stock pickers. The growth in technology is coming from the creation of new markets, rather than simply Gross Domestic Product (GDP) growth.

Investors need to find companies generating organic growth by creating new markets or effecting significant change on old markets. Industries such as automobiles, advertising, security, retail, and manufacturing are all being shaped and transformed by advances in technology.

We are also finding excellent investment opportunities among more attractively valued areas of technology. In particular, certain technology incumbents are making compelling progress on their “as-a-service” offerings. Artificial Intelligence (AI) is also becoming a significant trend. From consumer goods, such as the Amazon Echo, to autonomous driving, practical applications of AI are emerging.

Finally, we will carefully balance risks and opportunities going forward, leveraging our industry expertise, and emphasising individual stock selection.

Walter Price 16 January 2020

Tesla could reduce price on the Chinese produced models by 20% or more next year as production scales

This is no recommendation or solicitation to buy or sell any particular security.

Performance

Performance (%)

Select period:

    Cumulative Returns (%)

    3M6M1Y3Y5Y
    Share Price3.70.135.0101.0193.6
    NAV5.01.228.996.9176.3
    Benchmark6.913.139.079.0161.6

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return to 31.12.2019.1

    Discrete 12 Month Returns to 31 December (%)

    2019 2018 2017 2016 2015
    Share Price35.04.442.727.015.0
    NAV28.910.538.323.113.9
    Benchmark39.0-0.229.134.88.4

    Source: Thomson Reuters DataStream, percentage growth, mid to mid, total return as at 31.12.2019.1

    1Past performance is not a reliable indicator of future returns. You should not make any assumptions on the future on the basis of performance information. The value of an investment and the income from it can fall as well as rise as a result of market fluctuations and you may not get back the amount originally invested.

    Copyright 2019 © DataStream, a Thomson Reuters company. All rights reserved. DataStream shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

    © Allianz Global Investors GmbH 2020, Registered Office: Frankfurt am Main, Register: HRB 9340, Local court: Frankfurt am Main. All Rights Reserved. Allianz Technology Trust PLC is incorporated in England and Wales. (Company registration no. 3117355). Registered Office: 199 Bishopsgate, London, EC2M 3TY. VAT registration no. 678 1784 81. The Company is a member of the Association of Investment Companies - Category: Sector Specialists - Technology, Media & Telecoms.