Fund of the week: Profit from a ‘seismic shift’ in tech

London’s first ‘technology week’ launched to much fanfare recently, with the city being described as the “digital capital of Europe”. But like it or not, what really matters to investors is not Silicon Roundabout but Silicon Valley, says Laura Shannon in The Mail on Sunday.

The portfolio of stocks held by Walter Price, manager at Allianz, proves the point. “US companies make up 85% of the trust”, with Chinese firms second at 4%.

San Francisco-based Price thinks US tech firms are at the forefront of a “seismic shift” in the sector. The rise of cloud computing (where firms and individuals rent storage and software, rather than having to own it) and smartphone-based internet browsing could transform tech’s share of the stock market, he tells The Mail on Sunday.

He holds the sector’s big names in the RCM Technology Trust (LSE: RTT), including Apple, Facebook and Microsoft, and reckons the large-cap firms could raise their dividend payments substantially. But his main interest is cloud computing, which he believes is a development “of a magnitude that only happens every 15 or 20 years”.

RCM Technology Trust share price chartAround 20% of the investment trust is in cloud-computing firms, such as Amazon, Salesforce, Rackspace and NetSuite, which help start-ups save on IT costs. He focuses on mid-to-large-caps that he believes have higher growth potential than the mega-caps, aiming to find the sector’s “next Apple”.

His approach has mostly paid off. The performance is not especially impressive over five years – 144.4% compared to 160.9% for its benchmark technology, media and telecoms index. But over one and three years it’s beaten the market, delivering 31.5% and 49% returns respectively. The ongoing fee is 1.32%.

RCM Technology Trust top ten holdings
Name of holding % of assets
Apple 7.60%
Palo Alto Networks 4.70%
SanDisk Corp 4.60%
Sunpower Group 4.50%
Microsoft 4.10%
ServiceNow 4.00%
Tesla Motors 3.30%
Facebook 3.20%
Western Digital 3.10%
Micron Technology 2.70%


66% off newsstand price

12 issues (and much more) for just £12

That’s right. We’ll give you 12 issues of MoneyWeek magazine, complete access to our exclusive web articles, our latest wealth building reports and videos as well as our subscriber-only email… for just £12.

That’s just £1 per week for Britain’s best-selling financial magazine.

Click here to take advantage of our offer

Britain is leaving the European Union. Donald Trump is reducing America’s role in global markets. Both will have profound consequences for you as an investor.

MoneyWeek analyses the critical issues facing British investors on a weekly basis. And, unlike other publications, we provide you with the solutions to help you turn a situation to your financial advantage.

Take up our offer today, and we’ll send you three of our most important investment reports:

All three of these reports are yours when you take up our 12 issues for £12 offer today.

MoneyWeek has been advising private British investors on what to do with their money since 2000. Our calls over that period have enabled our readers to both make and save a great deal of money – hence our position as the UK’s most-trusted investment publication.

Click here to subscribe for just £12