Investment Trusts allow you to make a single investment which gives you a share of a much larger ‘pot’. They can be a cost-effective way to spread your risk and access a diversified portfolio, which is one of the golden rules of successful investing.
Allianz Technology Trust invests in a diversified, but focused portfolio of companies that use technology in an innovative way to gain a competitive advantage. Particular emphasis is placed on companies that are addressing major growth trends with innovation that replaces existing technology or radically changes products and services and the way in which they are supplied to customers.
The Manager aims to invest in the most attractive technology shares globally, seeking to identify the leading companies in emerging technology growth sub-sectors.
Modern history has seen a remarkable pace of change in almost every aspect of life. Look behind most of these changes and you will find something in common. Transport, energy, communications, healthcare, manufacturing, entertainment, business, education - all have been transformed by advances in technology.
Allianz Technology Trust PLC (ATT) is an independent company listed on the London Stock Exchange whose investment trust structure provides access to a diversified portfolio.
Investment trusts own shares in a variety of different companies. So buying shares in ATT will effectively give you a diversified portfolio of technology companies. This spreads your risk, as you are not reliant on the success of just one or two companies. And buying shares in an investment trust can be less costly than purchasing the underlying stocks individually.
ATT’s investment manager is accountable to the Trust’s board of directors. The board is completely autonomous and ensures that the interests of shareholders are looked after. The ATT board of directors aims to provide investors with the reassurance of a diligent environment of checks and balances; they also provide the Trust with invaluable knowledge and economic insight, as well as having the final say on deciding on the dividends to be paid to shareholders.
So, why may you want to consider adding Allianz Technology Trust to your portfolio? Well, Technology stocks can offer a valuable long term complement to a portfolio of traditional equities, having outperformed the FTSE All-Share Index over one, five and ten years1. Please note, however, that past performance is no guide to future performance and the value of investments could go down as well as up.
131 May 2018
It’s worth noting that every other sector of the modern economy is reliant on technology to improve quality or productivity, maintain competitiveness or spur expansion. This gives the technology sector unique growth characteristics, although competition among technology companies may result in aggressive pricing of their products and services, which may negatively affect profitability.
Technology has matured as a sector since the dot com boom, developing broader, deeper markets, and has now become the single largest contributor to global economic progress. Evolving technology as a percentage contributor to world output growth has risen from 33% in the mid-20th century to 50% in modern times. And technology’s share of the S&P 500 index has jumped from 6.3% in 1990 to 25.6% in 20181.
1Source: S&P Dow Jones Indices, 2018.
Asset Allocation
The fund managers do not target specific country or regional weightings and aim to invest in the most attractive technology shares on a global basis. The fund managers aim to identify the leading companies in emerging technology growth sub-sectors. The majority of the portfolio will comprise mid and large cap technology shares.
Risk Diversification
The Company aims to diversify risk and no holding in the portfolio will comprise more than 15% of the Company’s assets at the time of acquisition. The Company aims to diversify the portfolio across a range of technology sub-sectors.
Gearing
In normal market conditions gearing will not exceed 10% of net assets but may increase to 20%. The Company’s Articles of Association limit borrowing to one quarter of its called up share capital and reserves.
Liquidity
In normal market conditions the liquidity of the portfolio, that is the proportion of the Company’s net assets held in cash or liquid investments, will not exceed 15% of net assets but may be increased to a maximum of 30%.
Derivatives
The Trust may use derivatives for investment purposes within guidelines set down by the Board.
Foreign Currency
The Company does not currently hedge foreign currency exposure
Benchmark
Dow Jones World Technology Index Sterling Adjusted Total Return.
If you’re new to investment trusts, explore below and in the Education Centre to learn more about how investment trusts work.
Allianz Technology Trust PLC is a listed public company that invests in other companies and is quoted on the London Stock Exchange.
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Allianz Global Investors is one of the world’s leading active investment managers. Understanding our clients’ needs in order to act to their best advantage is embedded in our business, using our insightfulness to partner with clients and to drive performance.
Allianz Global Investors works for many clients around the world. From pension funds, large and small, to blue-chip multinationals, from charitable foundations to families, individuals and their advisers. We have created a business that enables us to meet the demands of our clients on a local basis and that empowers our investment managers to focus on achieving strong and consistent investment results.
