By Jean-Baptiste Andrieux, Reporter, Trustnet, 13 March 2024:
Technology has richly rewarded investors since the global financial crisis of 2008 and, more recently, developments in artificial intelligence (AI) have led to surge in US mega-cap tech stocks.
As beneficiaries of the tech boom and AI exuberance, Allianz Technology Trust and Polar Capital Technology Trust were among the top 10 most bought investment trusts on interactive investor’s platform last month.
Below, we’ve analysed both investment trusts individually and asked experts which of the two portfolios they would back.
Allianz Technology Trust looks to capture several secular themes within the technology sector through a bottom-up approach.
Historically, the trust has had a bias toward mid-cap stocks, enabling it to spot companies with high growth potential early on..
While Polar Capital Technology Trust is London-based, it benefits from a strong analyst team, with Ben Rogoff, Fatima Iu, Alastair Unwin, Nick Evans and Xuesong Zhao all co-managing the portfolio.
The trust has taken a big bet on AI, with 80% of the portfolio invested in companies believed to be AI-enablers or beneficiaries, according to Richard Williams, an analyst at QuotedData. In fact, manager Ben Rogoff described himself as an AI-maximalist..
Williams favoured Polar Capital Technology Trust, as Rogoff and his team have taken a bigger bet on AI.
He noted, for instance, the trust’s overweight exposure to Advanced Micro Devices, one of Nvidia’s rivals, that could start taking market share as AI infrastructure spend and chip demand continue to soar.
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