The portfolio is overweight in high-growth, medium-sized firms the manager Walter Price expects to become sector leaders.
Allianz Technology Trust (ATT) targets long-term capital growth through investments in global technology companies. Its report and accounts for the year to 30 November 2017 show shareholders’ assets of £313 million.
Manager Walter Price, who heads a four-strong global technology team, likes companies that use technology to gain competitive advantage, particularly those addressing growth trends with innovations that replace existing technologies or radically change the way products and services are supplied.
The portfolio is overweight in high-growth, medium-sized firms Price expects to become sector leaders. At the end of November, 10 companies accounted for over 40 per cent. More than 80 per cent was invested in US-quoted firms, 5 per cent in China and 4 per cent in the UK.
Software accounted for 25 per cent, semiconductors and semiconductor equipment for 19 per cent, and internet software and services for 15 per cent.
Last year’s net asset value (NAV) total return of 41 per cent substantially outperformed the 31.5 per cent return on ATT’s benchmark, the Dow Jones World Technology index. With the shares moving to a 1.8 per cent premium, share price total returns were 50.2 per cent.
ATT’s five-year NAV total return of 234 per cent was well ahead of its benchmark’s 184 per cent and dwarfed the 57 per cent from the FTSE All-Share index. No dividends are paid. Ongoing charges were 1.02 per cent, plus a performance fee of £433,476.
A new tiered structure reduces the management fee from 0.8 per cent to 0.6 per cent on market capitalisation in excess of £400 million.