Technology ITs

[nathan]

I do quite a bit of technology investing through EIS, but I’m looking for more international exposure. I’ve been researching two Investment Trusts, both with about 1% annual management fees, but would appreciate the wisdom of the fools. both have rather different investment strategies and have generated returns of approx 540% over 10 years (18% IRR) but with zero yield.

Polar Capital Technology Trust (PCT) c. £1,900m assets, discount 2.3% to NAV
Allianz Technology Trust (ATT) c. £500m assets, premium to NAV 0.52%

Does anybody here have experience with these two? The long term returns look tasty and worth the management fees, even for a skinflint like me...

[Urbandreamer]

No experience with either.

PCT has a very good rep, and the manager talks a great talk, but they do charge quite a bit. View points differ, but there is some evidence that they earn their money.

Another to consider is Scottish Mortgage (SMT). Yes, despite the name, it is a Technology IT. It began by providing money (mortgages) to rubber plantations at the dawn of the Motor car. It's currently 10% invested in Amazon and holds a very concentraited portfolio (54% in 10 shares).

Very definately not for everyone, but I and my kids have some, and it may suit you.

Oh, and it's charges are low and it does provide a very small yield.

[OLTB]

I do quite a bit of technology investing through EIS, but I’m looking for more international exposure. I’ve been researching two Investment Trusts, both with about 1% annual management fees, but would appreciate the wisdom of the fools. both have rather different investment strategies and have generated returns of approx 540% over 10 years (18% IRR) but with zero yield.

Polar Capital Technology Trust (PCT) c. £1,900m assets, discount 2.3% to NAV
Allianz Technology Trust (ATT) c. £500m assets, premium to NAV 0.52%

Does anybody here have experience with these two? The long term returns look tasty and worth the management fees, even for a skinflint like me...

Hi nathan - I follow John Baron’s IT portfolio recommendations and he recommends ATT for his ‘Summer’ portfolio.

Cheers, OLTB.

[Nocton]

The thing about Scottish Mortgage IT that I like is that it is not a technology IT. What it does is invest in a relatively small portfolio of perceived growth shares. for the last 10 years or so they have been technology shares, but it probably won't be the same in the next 10 or 20 years when Facebook, Google etc. have been treated as the monopolies they are and have become regulated utilities. But that is where I like SMT as they will then have moved into the next growth sector - renewable power? IMO SMT is very suitable for a long-term hold with divis re-invested, such as for our grandchildren.

[Peter1B1]

I have held Polar CT since 2012, reinvesting in four of the subsequent years for daughters' SIPPs. Total holding has doubled in value. What do I know about technology - and how would I pick and choose between the myriad options available? I am very happy to leave Mr Rogoff and his pals to do that for me: he has skin in the game and is doing a good job. I don't know about Allianz but am not inclined to switch - though the sector is big enough to justify more than one stake.

I also hold SMT in the same way and have been very happy with performance. I agree that it is not 'pure' tech but takes long bets on future winners, as it perceives them. I think Baillie Gifford are the managers and they have been long into Tesla since before I ever heard of the car. You pay the annual fee to have people like them pouring over market opportunities and I am very OK with that.

Good luck with tech as part of a diversified investment approach.

[tractorian]

You might be interested in the following podcast (others are available via Google).

https://www.ii.co.uk/analysis-commentar ... y-ii509193

[vagrantbrain]

I hold ATT and have previously held PCT - The biggest difference i've noticed between them is that ATT invests almost exclusively in the US (zero holdings in the far east) whereas PCT has about 20% exposure to Samsung, Tencent, Alibaba etc. ATT has performed slightly better long term but taken a bit of a dip compared to PCT recently. I don't think either is a bad investment and i'd expect long term performance to be broadly similar given that they share much of the same holdings.