Allianz Technology Trust is best in breed - annual report summary

allianz-technology-trust-annual-report

Our annual report summary series delivers a condensed analysis of a selected investment trust's annual report, including details of the trust's aim, investment style, portfolio focuses, gearing policy, charges and performance.

ALLIANZ TECHNOLOGY TRUST

Allianz Technology Trust (ATT) targets long-term capital growth through investments in listed technology companies on a global basis. Its report and accounts for the year to 30 November 2015 shows shareholders' assets of £175.7 million.

Walter Price has been manager of ATT since Allianz Global Investors (AGI) won the mandate in April 2007. He heads an experienced four-strong global technology team, based in San Francisco. They are supported by 10 global sector analysts and AGI's Grassroots Research team.

Price favours companies using technology in an innovative way to gain a competitive advantage, particularly those addressing major growth trends with innovations that replace existing technologies or radically change the way products and services are supplied to customers.

allianz-technology-trust-performanceAt its year end, ATT's portfolio was concentrated on 61 companies. The top three holdings were industry giants Amazon, Microsoft and Alphabet, but it was overweight in high-growth, mid-cap companies.

US-based companies accounted for 83 per cent of the portfolio, with 7 per cent in China and 3.3 per cent in the UK.

Gearing is usually low, and was nil at the financial year end. Ongoing charges were 1.1 per cent. No dividends have been paid since AGI took charge.

Last year's net asset value (NAV) and share price total returns of 10.3 per cent and 9.6 per cent respectively were both ahead of the 7 per cent total return on ATT's benchmark, the Dow Jones World Technology Index Sterling Adjusted.

Over three, five and 10 years, its NAV total returns were the best in the closed-ended technology sector. They were also well ahead of its benchmark over all three periods, and even further ahead of the FTSE All-Share index.

The board is prepared to buy back shares when the discount exceeds 7 per cent, and to reissue them at a narrower discount. The trust reissued 300,000 shares last year at an average discount of nearly 3 per cent.

See the full annual report on the Allianz website.


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