| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 181.69 | -67 |
| Intrinsic value (DCF) | 154.43 | -72 |
| Graham-Dodd Method | 10.52 | -98 |
| Graham Formula | 20.24 | -96 |
Allianz Technology Trust PLC (ATT.L) is a UK-domiciled closed-ended equity mutual fund managed by Allianz Global Investors GmbH, focusing on global technology, media, and telecom (TMT) sectors. Launched in 1995, the fund targets mid- to large-cap companies, employing a bottom-up, fundamental stock-picking strategy to outperform the Dow Jones World Technology Index (sterling-adjusted, total return). With a market cap of £1.45 billion, it offers investors concentrated exposure to high-growth tech equities, including AI, cloud computing, and digital infrastructure. Unlike open-ended funds, its closed-end structure allows for illiquid investments without redemption pressures. The fund’s German parent, Allianz SE, provides institutional expertise, though it does not distribute dividends, prioritizing capital appreciation. ATT.L appeals to investors seeking passive-like tech sector exposure with active management alpha potential.
Allianz Technology Trust PLC presents a compelling niche investment for exposure to global tech equities, combining Allianz’s institutional rigor with a closed-end structure ideal for volatile sectors. Its low beta (0.62) suggests relative resilience versus pure-play tech ETFs, though the zero-dividend policy may deter income-focused investors. The fund’s £460M net income (FY 2024) reflects strong stock selection, but reliance on TMT sector performance introduces cyclical risks. With no debt and £33.8M cash, it maintains balance sheet flexibility. However, the active management fee structure and concentrated bets may underperform during tech downturns. Attractive for long-term growth portfolios, but sensitivity to interest rates and tech valuations warrants caution.
Allianz Technology Trust PLC differentiates itself through its closed-end structure, allowing illiquid tech investments without liquidity mismatches—a key edge over open-ended peers like Scottish Mortgage Investment Trust (SMT.L). Its focus on fundamental bottom-up analysis contrasts with passive tech ETFs (e.g., Invesco QQQ), offering alpha potential but at higher fees. The fund’s German management provides European institutional depth, yet its UK listing limits USD-denominated tech exposure compared to US-based rivals. Competitive strengths include Allianz’s global research network and mid-cap inclusion, but its concentrated portfolio (~50 holdings) increases idiosyncratic risk versus diversified index funds. The lack of leverage (0% debt) reduces downside volatility but may cap returns in bull markets. Performance is tightly correlated to the Dow Jones Tech Index, suggesting limited alpha in recent years despite active fees. Its small size (£1.45B AUM) versus giants like ARKK allows agility but lacks economies of scale.