– Net assets underperform benchmark by 7% in 2022

– NAV discount widens to 12.two%, versus three.four% 5-year typical

– Megacap tech now dominates portfolio’s best stakes list

Shopping for much more Apple (AAPL:NASDAQ), Microsoft (MSFT:NASDAQ) and Alphabet (GOOG:NADAQ) exposure is what Allianz Technologies Trust (ATT) has been undertaking.

1 of the UK’s most well known tech funds with retail investors, the investment trust has traditionally held bigger weightings in larger development, mid cap providers, but this had to modify, the trust’s lead manager Mike Seidenberg decided final year.

This was the location hit hardest in 2022 as investors reappraised valuations in light of the altering interest price atmosphere. It now suggests that the 3 technologies giants talked about earlier are now its best tree holdings.

Not that this saved Allianz Technologies from underperforming its Dow Jones Technologies Index benchmark via 2022. NAV, or net asset worth – the valuation of its portfolio holdings collectively – fell 34% through the year, the trust’s complete year benefits confirmed, 7% much more than the benchmark’s 27% decline, with the fund ‘behind the mark in terms of lowering danger in the portfolio,’ according to Stifel analysts.

The share price tag fell much more sharply nonetheless, down 40.four% as the trust’s discount widened. The discount to NAV at present stands at -12.two%, versus a 5-year typical -three.four%. Allianz shares declined a tiny much more than two% to 211.5p in response to the announcement.


For instance, cybersecurity firm Okta (OKTA:NASDAQ) struggled to integrate its Auth0 acquisition and the manager exited the position. Seidenberg also best-sliced the trust’s extended-standing exposure to Tesla (TSLA:NASDAQ), not mainly because he likes to investment case any significantly less, but basically mainly because the holdings had turn out to be ‘overweight’ in the portfolio, exerting as well substantially influence on functionality.

Allianz Technologies also held a reasonably higher level of money through the year – about six% on typical. ‘This was a reflection of the uncertainty of the atmosphere and a wish to retain optionality in the portfolio,’ stated Stifel.


The Allianz Technologies Trust nonetheless believes in the extended-term sweet spot to obtain quick-increasing, dynamic technologies providers.

Optimism for extended-term development prospects for lots of higher development providers in locations such as cloud computing, information analytics and cyber safety remains, and these themes stay reflected in the portfolio mix.

Nonetheless, the trust recognises that sentiment is probably to be against them whilst the financial climate remains weak.

Nevertheless, share rates have fallen a extended way, as Stifel notes, and now reflect substantially of the implied unfavorable financial news. ‘Many technologies providers continue to provide robust earnings in spite of the financial situations and have a important runway of development ahead of them,’ believes Allianz Technologies.

Equally, the trust also believes that prospective weakness in the dollar ‘should enable these technologies providers with big international markets, such as Apple and Microsoft.’

DISCLAIMER: The author of this post, Steven Frazer, owns shares in Allianz Technologies Trust.

Problem Date: 13 Mar 2023    

By Editor

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