Trustnet Magazine Issue 39 April 2018 | Page 22

/ FUND, PENSION, TRUST / Trust ALLIANZ TECHNOLOGY TRUST This trust has made more than 400 per cent over the past decade, but manager Walter Price says there is still value to be found in tech FILE MANAGER: Walter Price LAUNCHED: 1995 PREMIUM/DISCOUNT: -1.4% OCF: 1.0% FE CROWN RATING: and you have both demand and supply coming together to meet it,” he explained. “I think the result is that we’re embarking on a very favourable period for enterprise technology, [which] is going to last for another decade. It’s not like a one-year [trend], it’s going to last for a long period of time.” While FAANGs such as Amazon and Netflix feature in the trust’s top-10 holdings, so do a significant number of “as a service” companies, such as cloud computing and some internet firms. The strong performance of technology in recent years may lead new investors to worry they are late to the party. “There’s a tendency in the big run in technology and value creation on the consumer side to say ‘oh, it’s over’, ‘should I be selling?’ and ‘valuations are too high’,” said Price. However, the manager pointed out that valuations – even in more consumer-focused companies – are justified given the cashflows and strong earni