Allianz Technology ‘new tech generation is growing faster than the overall market’


#1

Originally published at: http://whichinvestmenttrust.com/allianz-technology-new-tech-generation-is-growing-faster-than-the-overall-market/
We last reviewed this trust a year ago and we liked what we saw and it joined our buy list. One year on we’ve taken a look at it again to see if there are still opportunities in the sector or if it is time to take profits. Fast Facts Managed from the US by…


#2

I have Polar Technology but looking at the stats this has performed better over the long term. Food for thought. Don’t think I’ll switch because firstly of the cost of doing so and secondly the Polar trust gets close to this but if I was starting out now I’d probably go for this instead.


#3

I see the move to Cloud and software as a service where I work too. Fascinating impact it’s having, and it’s still in its early days.

Wait until departments of Government, local Government, Police, NHS etc start adopting it. I can see why Walter Price describes it as the area he’s most excited about.


#4

Where are the more general technology trusts and funds? Too many “technology” investments seem to focus almost entirely on information technology - usual suspects: Apple, Facebook, Microsoft and so on. Where are the funds or trusts which might also invest in nanotechnology, medical devices, materials, innovative engineering and so on? I am keen to invest in innovative technologies but not solely on information technology. Ideas???


#5

You want a lot there @alant01.

There are loads of green tech trusts so you’re ok there.

As for nano tech, doesn’t Katie Potts at Herald invest in some of that.

Any fund/trust investing in the engineering sector will give you your tech exposure there. Lowland comes to mind or HOT from the same manager (Henderson opportunities).

Medical devices is spread across a number of different trusts that see it as being less risky than investing in Biotech.

You want to start your own fund Alan. I’ll buy some mate.


#6

His thesis on Clous/Saas (I always though that was a type of pension for company Directors) gaining traction because companies harv had the opportunity to play around with it is interesting.

At my company when we first started using cloud we were frightened of the effect of servers/internet connection going down and the consequence of that and although that has happened it’s so rare, and we are using cloud even more and Saas too, though it’s only by reading this article that it occurred to me that that’s what we’ve moved to.

I don’t have any technology specific funds or trusts but it occurs to me that it would be interesting to know the percentage of the investments that I do hold that have exposure to the tech sector.

Allianz Technology make a pretty good case for investing in tech, but I just wonder how much I have already without knowing it.

I’m toying with putting a little bit in ATT in my SIPP, not too much, just 3-4% maybe. I am looking for growth for the next 15 or more years leading up to my retirement.


#7

I think putting 3-4% in to tech, maybe even 5% makes sense. Like the analyst (journo?) said:

(the tech industry)the driving industrial force of our age

If you believe this and I do then you need to have something invested here surely.

My favourite quote though it:

In around two years from now you will be able to fall sleep at your wheel, and wake up at your destination, according to Tesla’s Elon musk, but it’ll be another 3 years until regulators approve it.

Can’t wait for this to happen :grin:


#8

@stromer, as ever, which og Polar or Allianz has outperformed depends upon your starting point! And there have been times where a decision based upon past performance would have favoured the former.

In the first instance it will be worth looking at the more generalist investments already held to see what allocations they have to these sectors. A North American fund is likely to have the likes of Apple, Amazon, Microsoft, etc, and a UK fund might have Arm and any number of mid-caps. Might come down to what the particular definition is of ‘technology’ (trains and cars being cutting-edge technologies of their day). Holding the likes of Scottish Mortgage might be quite adequate for the job.

In addition to the previously mentioned Herald, there are the Biotech ITs to consider. Woodford Patient Capital? Posssibly some of the smaller companies trusts with more concentrated holdings, lso might be worth looking at private equity ITs. I would have said VCTs for too, but the proposed changes to the eligible companies might mean that it’s better to let this bed down for now.


#9

I favour the Allianz trust over Polar because I rate Walter Price so highly. that’s not to say that Ben Rogoff isn’t a good manager too because he self evidently is and until relatively recently I would have favoured his fund because it’s larger and more liquid but this is getting to a decent enough size now. Especially after they reduced the management fee and performance fee.

@alant01 You’re not going to find one fund to do all that you’re looking for and some of what you’re looking for is very high risk. Consider some of the suggestions from @arkwelder. You tend to find higher risk investments in VCTs or EIS’.


#10

The internet of things is something that really excites me and not just for my car though I really do fancy a close of Kit from KnightRider!

It will eventually become cheap enough to put chips and basic computers in everything from toasters, to microwave ovens, to your home cooker.

It’s interesting that the biggest holding in this fund is Microsoft at almost 8%. Even Visa makes his top 10 and it’s not a company you immediately think of as a tech stock, though no doubt its benefitting from rolling out new payment systems.

A lot of people seem tempted by this fund in this forum and I think I’m in that category too. I don’t own a specific tech fund and nether do I have Scottish Mortgage. This look like a good option to me.


#11

I’m watching Humans on C4 right now, getting a little bit scared about progress technology - my internet of things toaster might just jump up and kill me @anthonys :hushed:


#12

Meaning, @jkstowe, that you would be…toast…

(sorry:grinning:ish! )


#13

Herald Investment Trust used to be a great performer but it’s slipped lately.

I hold Scottish Mortgage which has a lot of tech but I’m wondering if I should have a little bit more. I’d have to sell something though so I might just watch this for a bit.


#14

Haha, you’re too funny @arkwelder - well you made me smile :grinning:


#15

I have Scottish Mortgage too but if you look at the top 10 holdings you see how different they are and you can in fact own both, which as of yesterday I now do. I bought a holding in Allianz Technology yesterday.

If you believe Walter Price that the trends he’s backing and especially Cloud and Saas are just going through their real growth phase then there is a lot of money to be made here in the next few years and I back him to choose and invest in the winners.

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#16

Amazon and Facebook are the only two companies they have in common. I would like to see the top 30 or 50 to see just how much of whatever company you are owning by investing in both trusts, but on the evidence of the top 10 it isn’t a lot.

The top 10 for Scottish Mortgage makes up 50% of the trust whilst the top 10 of Allianz Technology makes up 40%. Both high numbers and evidence of managers who have real conviction.

I am glad the performance fee and management fees have come down for Allianz but when you look at the size of this you have to think why isn’t this a £1 or £2 billion trust and maybe it is the charges. I’d like to see the performance fee go altogether and to see the trust grow towards the £1 billion mark. He is obviously a very talented asset manager with a good track record.

I will buy it at this level because I think it will do well despite the performance fee but I wonder if it will still put some people off.