Allianz Technology

Tech-focused investment trust Allianz Technology (LSE: ATT) has reaped the benefits, it is now up an astonishing 512% in the last 10 years, making it the best performing fund in the investment trust sector, slightly ahead of Scottish Mortgage at 509%, according to figures from the Association of Investment Companies.

It has achieved this by investing in a spread of mostly US stocks – the fund has 90% exposure to the States. It is crammed with familiar tech names, with Microsoft its biggest holding at 7.60% of the portfolio, while Facebook, Apple and Alphabet also figure in its top 10 holdings, alongside Taiwan Semiconductor and MasterCard.

The fund has consistently performed the IT Technology & Media sector and still has momentum, up 38% in the last year. Unsurprisingly, it trades at a narrow discount to net asset value of just -0.8%, slightly more expensive than its long-term average of -3.4%.

Allianz Technology is clearly a good fund, the big question is what happens to the sector next. You should never buy an investment purely on past performance, as the chances of a repeat are slim. Nobody can bank on getting another 500% growth in the next 10 years.

I still believe the tech charge has further to go, as it embeds itself ever more closely into our lives. The revolution may still be at an early stage, and this fund could be a good way to play it without the risk of buying individual stocks.

Finsbury Growth & Income

These days everybody loves Nick Train, who co-founded Lindsell Train Limited in 2000, and has become one of the UK’s most renowned fund managers. He runs several hugely successful and popular unit trusts with co-manager Michael Lindsell, and has his own investment trust, too, Finsbury Growth & Income (LSE: FGT).

This operates in the UK equity income sector, where it has done brilliantly well, returning a total of 366.43% over the last 10 years, including reinvested dividends.

Top holdings include familiar FTSE 100 names such as Diageo, Unilever, Burberry Group, Schroders and Hargreaves Lansdown, but this is no closet tracker filled with the same old stocks, as you often see in the equity income sector. Train is picking his stocks carefully, and well.

Last time I looked at his trust, it was trading at a premium to net asset value. Today, you can buy it at a small discount of -2.4%, which is actually below its long-term average premium of 0.5%, making this a potentially better entry point. Nobody likes overpaying if they can help it.

In fact, these two funds could complement each other nicely. Allianz Technology will give you a spread of racy tech stocks, mostly from the US, while Finsbury Growth & Income will give you a solid blend of UK income stocks.

Both should make good long-term portfolio holds.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Alphabet (A shares), Amazon, Apple, Facebook, Mastercard, Microsoft, Netflix, and Unilever. The Motley Fool UK has recommended Burberry, Diageo, and Hargreaves Lansdown and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Vote of confidence

Online platform Interactive Investor has just announced the most popular trusts among its investors, and it’s an impressive bunch. The top two are stellar performers Scottish Mortgage Investment Trust and City of London Investment Trust.

I’m a long-standing admirer of Scottish Mortgage, a global fund that has delivered 180% growth over the past five years, against just 88% on its benchmark IT global sector. However, Rupert Hargreaves covered this beauty yesterday, saying he’d buy this FTSE 100 investment trust right now.

I’m also a fan of City of London, fabled for increasing its dividend every year for more than 50 years, but I sung its praises less than a month ago. That’s okay, though, because the next two also merit close attention.

Tech hero

The third most popular investment trust in the UK is Allianz Technology Trust (LSE: ATT), which aims to deliver long-term capital growth by investing in technology companies around the world. Incredibly, it has even outperformed Scottish Mortgage, returning a simply massive 253% over the last five years.

The trust has clearly benefited from being in the most buoyant sector of all, as its benchmark IT Tech, Media & Telecomm sector grew a storming 213% on average over the same period. Obviously, the trust is a goodie but you cannot expect it to deliver a repeat performance, as sectoral performance tends to be cyclical. 

It can’t go on

Top 10 holdings include Amazon and Facebook, while its biggest single position at 5.20% is Google owner Alphabet. The trust is almost 90% invested in the US, whose tech sector has smashed allcomers over the past five years. Hence its performance, and popularity.

Allianz Technology now trades at a discount of just 0.1 and my concern is obvious. US tech has been on such an amazing run, but nothing lasts forever. You risk jumping on the bandwagon just as it hits a wall. On the other hand, US tech has defied the doubters before. It’s your call.

Train of thought

The UK’s fourth most loved investment trust is Finsbury Growth & Income Trust (LSE: FGT), which invests primarily in UK-listed companies. It has outshone its rivals, growing almost 95% over the past five years, against just 30% across the UK equity income sector. It’s up 18% over last year, against just 2% for its benchmark.

All becomes clear when you discover this £1.65bn fund is run by ace manager Nick Train, whose joint venture with Michael Lindsell, Lindsell Train Global Equity, is the UK’s second most popular unit trust (after FundSmith Equity).

Man of conviction

Top holdings include familiar names such as Diageo, Relx and Unilever. The fact that these three stocks each make up around 10% of the fund shows this is a conviction play, rather than a safety-first closet tracker.

Finsbury Growth & Income also trades at a slight premium, in this case 0.8, which is a vote of confidence from investors. You’re unlikely to find it much cheaper given that the long-term average premium is 0.5. These two trusts may not always be the best in the world, but they’ll take some beating.

The post Are these the best investment trusts in the world? appeared first on The Twelfth Magpie.

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Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

One of the best in that area over the past few years has been the Allianz Technology Trust (LSE: ATT). As its name suggests, ATT invests in technology stocks with its largest holdings compromising Amazon, Microsoft and Facebook.

And although the technology sector as a whole has done well, with the benchmark Dow Jones World Technology index up 181% in the five years to June 29, ATT’s managers have done even better. Over this period they’ve delivered shareholders a whopping 256% share price increase.  

Looking ahead, there are certainly headwinds approaching for the technology sector ranging from investor unease over relatively high valuations to increased regulatory scrutiny of the sector. However, tech firms by and large are continuing to post record revenue and profit growth, which should reassure investors who remember the dotcom bubble. The fund is also well diversified with a total of 67 portfolio companies.

For UK investors, another benefit is that the trust offers exposure to international stocks that can otherwise be expensive to purchase through some retail investment platforms. As of June, a full 86% of the trust’s assets were American firms with a further 5% coming from Chinese companies and the rest a smattering of European stocks.

The fund currently trades at a marginal 0.9% premium to its net asset value (NAV), so investors shouldn’t worry about paying too much over the odds for the fund. All told, I think these qualities maker Allianz Technology Trust worth taking a closer look at for investors seeking to remedy the dearth of tech stocks listed on the LSE.

Offering growth and income

But if you’re worried by tech valuations or overexposure to foreign equities, one option closer to home is Picton Property Income (LSE: PCTN). The fund invests in UK commercial property and over the past five years its share price has risen 123% against a 43% gain for its benchmark, the IPD UK All Property TR index.

The fund’s properties are made up of 41% industrial locations, 36% offices and the rest are retail and leisure properties. And before would-be investors become too worried by this exposure to retail outlets, much of its activity in this sector is to very in-demand warehouses with only 11.4% of its total portfolio tied to high streets.

This diversified approach means it has benefited from a generally buoyant economy and has served Picton well with the company reporting a rock-bottom 4.2% vacancy rate at year-end and securing rent rises in recent years. This has flowed through to the bottom line with its NAV per share steadily rising from 77p in 2016 to 90p last year.

Earnings per share last year jumped from 3.8p per share to 4.2p, which allowed management to boost its dividend payout to 3.4p per share. This works out to a dividend yield of 3.8% at its current share price. This high dividend combined with a solid record of capital appreciation means investors bullish on the UK economy in general and property in particular may find Picton Property Income an intriguing investment trust to consider for their retirement portfolio. 

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool’s board of directors. LinkedIn is owned by Microsoft. Ian Pierce owns shares of Amazon. The Motley Fool UK owns shares of and has recommended Amazon and Facebook. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The FTSE 100, considered to be the a leading indicator of UK stocks, hasn’t had the best starts to 2018 either — it’s broadly unchanged since the start of the year. That’s because, besides ongoing uncertainty about the UK’s long-term relationship with the EU, worries over global trade and the prospect of an interest rate hike later this year have weighed heavily on the share index.

Outperforming the FTSE 100

Still, there may be some value to knowing which funds have been significantly outperforming the FTSE 100 so far this year. This short period is significant because, whether you’re a trader or a long-term investor, the first six months can give some meaningful clues about where the market could be headed next.

For example, sector funds which are leading the market right now can tell us about investible themes and help us to identify bullish trends. Meanwhile, country-specific or regional funds can inform us about which markets are holding up better than the rest.

With this in mind, here’s a look at three investment trusts that have been outpacing the FTSE 100 so far this year. These may not the absolute top performers of the year, but I reckon they are among the most outstanding and insightful of the top-performing investment trusts in 2018.

Technology

Technology has, once again, been the standout sector in the market this year. And one fund in particular which has really taken off is the Allianz Technology Trust (LSE: ATT).

Driven by stocks such as Amazon and Netflix, which have gained 50% and 118%, respectively, since the start of the year, the Allianz Technology Trust is up by just under 30% so far. This performance compares favourably not only against the FTSE 100, but also against its benchmark index, the Dow Jones World Technology Index, which returned only 15% over the same period.

Strong earnings expectations

Despite a wobbly start in the first quarter of 2018, the technology sector has picked up some steam in the second quarter. Buoyed by strong earnings expectations, technology stocks have shaken off much of the regulatory and protectionist concerns that had been holding them back earlier in the year.

Still, not everyone is enthused. Analysts from Morgan Stanley reckon that already priced into tech valuations is an expected strong earnings season, while sector valuations trade at a significant premium to the market even as uncertainty created by US tariffs (and the threat of retaliatory tariffs) looms large.

Track record

With the FTSE 100 having so few technology stock constituents, the Allianz Technology Trust is a particularly good choice for domestically-exposed investors to get more exposure to the technology sector. The fund has an impressive long-term track record of delivering attractive capital growth, with a five-year cumulative share price return of 260%.

Emerging markets

Surprisingly, another fund which also did particularly well since the start of the year was one which invested in emerging markets. Even as trade war anxiety ruffled on emerging equity markets, the Gulf Investment Fund (LSE: GIF) was one of the best performing funds after having delivered total shareholder return of 14% since the start of the year.

The fund, which seeks exposure to emerging investment opportunities in the Gulf Cooperation Council, or the GCC region, has no doubt benefited from the region’s much-improved economic prospects, which look a lot brighter thanks to rising oil prices.

Financial sector

But although the region is heavily exposed to the oil and gas sector, the fund manager is more keenly invested in the financial stocks, which account for 48.9% of its total assets. The utilities sector is its next biggest exposure, representing 9.6% of assets. This is followed by the energy sector, which represents a further 8.6%.

The fund’s investment adviser believes the GCC banking sector enjoys strong capitalisation and is well placed to benefit from increased infrastructure spending, improving economic growth, and favourable demographic trends. Banking stocks are also attractive due to strong government support for the sector and the recent string of rate hikes by the region’s central banks, which is expected to improve their profitability.

Certainly, the Gulf Investment Fund may not be suitable for all investors as the value of its investments can experience high levels of volatility. That said, as shares in the trust trade at a 15% discount to its net asset value (NAV), it may be worth a closer look for those with a bigger risk appetite seeking an undervalued opportunity.

UK smaller companies

Meanwhile, the BlackRock Throgmorton Trust (LSE: THRG) is a fund to consider for investors seeking to invest closer to home. Shares in the UK smaller companies investment trust have gained 18% year-to-date, making it one of the best-performing funds in the UK small- and mid-cap space.

Fund manager Dan Whitestone reckons there isn’t an industry that’s not facing some form of disruption and that this new wave of disrupters is changing consumer behaviour. As such, his strategy rests on identifying those companies that are disrupting established industries.

Holy trinity

Whitestone has a preference towards companies that have in place the “holy trinity” of a strong management team, a great product, and one that is operating in an attractive sector. The fund’s top five holdings at the end of May included Ascential, Dechra Pharmaceuticals, Integrafin, Robert Walters and Fevertree Drinks.

Fees for the BlackRock Throgmorton Trust are moderate, with an ongoing charges ratio (including performance fees) of 2.2% for its last financial year.

The post 3 investment trusts that have been smashing the FTSE 100 so far this year appeared first on The Twelfth Magpie.

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Jack Tang has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

As collective investment vehicles, they enable people to pool their money together to get exposure to many different companies through a single investment. But unlike unit trusts and Open-Ended Investment Companies (OEICs), investment trusts are listed companies with shares that trade on the London Stock Exchange.

Long-term growth potential

One top performer that may be worth a closer look is the Edinburgh Worldwide Investment Trust (LSE: EDI). The fund has a global investment remit and primarily looks at small and mid-cap firms which are believed to offer long-term growth potential.

The fund does not seek to track any particular index, although it does compare its performance against the S&P Global Small Cap Index. Over the past three years, Edinburgh Worldwide has handsomely outperformed its comparative index, with a total return of 55% compared to the benchmark’s gain of 39%.

Douglas Brodie, its portfolio manager since 2014, seeks out dynamic growth businesses that are shaping tomorrow’s world. He has a preference for immature entrepreneurial companies that have the potential to grow to become many times their current size.

A look at the portfolio shows the fund is heavily weighted towards North America, which accounts for 56% of its total assets. Its five biggest holdings are MarketAxess Holdings (6.2%), Alnylam Pharmaceuticals (5.0%), LendingTree (4.8%), IPG Photonics Corp (2.9%) and Ocado Group (2.6%).

There’s one major downside to investing in the fund right now. The trust is in high demand, causing its shares to currently trade at a 3% premium to its net asset value (NAV).

Technology stocks

In the sector-specific space, I reckon the Allianz Technology Trust (LSE: ATT) is a solid pick for investors who are optimistic about the technology sector in general.

Technology stocks have been on a tear over the past few years, but in recent weeks, they’ve hit a snag and have been underperforming the broader equity markets amid growing regulatory concerns and rising fears of protectionism.

Still, some analysts sense a buying opportunity. As earnings growth in the tech sector is expected to continue to outpace other sectors in the coming years, the party may not be over for tech stocks. Despite potential headwinds, the long-term fundamental drivers for the sector remain intact as technology megatrends continues to disrupt the traditional business landscape.

UK investors

And given the very low number of technology companies listed on the London Stock Exchange, the technology fund is particularly useful for UK investors who seek greater exposure to the sector but don’t want to directly invest in foreign technology stocks.

It’s probably not a good idea to invest in this fund on its own though, because of the sector-specific risks which could cause many stocks within the same sector to fall in price at the same time.

As expected, North American stocks dominate its portfolio, accounting for 89% of its total assets. Top holdings include some well-recognised brands and other exciting names, such as Amazon (7.3%), Microsoft (4.6%), ServiceNow (4.1%), Netflix (3.4%) and Square (3.2%).

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Jack Tang has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, the prospects for share prices in the long run remain generally positive with the world economy continuing to deliver relatively high growth. As such, these two investment trusts could be worth buying at the present time.

Strong performance

Reporting on Friday was Allianz Technology Trust (LSE: ATT). The company enjoyed a strong year, outperforming its benchmark by a large margin. In the year to 30 November 2017 its net asset value per share increased by 41%. The Dow Jones World Technology benchmark increased by 31.5% during the same time period, which means the company’s outperformance was 9.5%.

In terms of its share price, there was a 50.2% gain in the same timescale. Of course, it was an exceptional year for the technology sector and for a number of the trust’s major holdings. The likes of Amazon, Apple, Facebook and Microsoft enjoyed strong gains as investors became increasingly positive on the prospects for the US and global economies. With those four stocks its major holdings, they were able to deliver a positive contribution to the trust during the year.

Looking ahead, there could be increased volatility in the wider technology sector. Higher inflation in the US could spark a more risk-off attitude among investors. This may mean that the company’s performance in the current year fails to match its 50%+ gain in its last financial year. However, with it trading on a 1% discount to its net asset value, it appears to offer excellent exposure to what may prove to be a growing technology sector.

High total returns

Also offering the potential for high returns in the long run is the Edinburgh Investment Trust (LSE: EDIN). It trades at a 10% discount to its net asset value, which suggests that it could offer good value for money. Furthermore, a number of its major holdings are relatively defensive. For example, British American Tobacco, Altria and AstraZeneca are among its top 10 holdings. They could provide stability and resilience during possible market turbulence over the medium term. They may also offer significant upside potential in the long run.

Additionally, the trust also has a relatively impressive income outlook with a dividend yield of 4.1% at present. This is likely to remain above inflation and could mean that investor demand for the company increases over time. This may help to reduce or even eradicate its current discount.

With the Edinburgh Investment Trust’s net asset value per share having beaten the performance of the UK Equity Income benchmark by over 10% in the last five years, it appears to have a solid track record which could be repeated in future.

The post Looking to invest £2,000? Here are two investment trusts to consider appeared first on The Twelfth Magpie.

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Peter Stephens owns shares in AstraZeneca, British American Tobacco and Altria. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool’s board of directors. LinkedIn is owned by Microsoft. The Motley Fool UK owns shares of and has recommended Amazon, Apple, and Facebook. The Motley Fool UK has the following options: long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, short March 2018 $200 calls on Facebook, and long March 2018 $170 puts on Facebook. The Motley Fool UK has recommended AstraZeneca. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The BB Healthcare Trust (LSE: BBH) does all the work for you when it comes to picking the best healthcare firms. Indeed, the trust holds healthcare investments of all shapes and sizes including biotechs, distributors, generic drug producers, managed care operators, speciality pharmaceuticals businesses and other companies in the business of selling treatments to customers, such as Walgreens Boots.

This defensive collection of stocks has yielded an impressive return for investors, even though the trust is only a little over a year old. For the year to 30 November 2017, BB Healthcare’s net asset value per ordinary share rose 17.2%, beating its benchmark, the MSCI World Healthcare Total Return Index by 2.8% over the same period. 

Defensive income 

Founded as an income-yielding healthcare play, BB Healthcare also offers something for dividend investors. Alongside the trust’s full-year 2017 results, which were published today, management announced that the company would be paying a distribution of 1.75p to investors for a full-year payout of 3.5p. Management expects there to be more cash available for distribution during 2018 and is planning a total payout of 4p. 

While the income is a nice touch, BB Healthcare’s most attractive quality is the company’s exposure to the healthcare sector. With an ever-growing, ageing global population, it’s almost certain that the demand for healthcare and profits of providers will rise steadily going forward, virtually guaranteeing returns for investors. 

That’s why I believe that this investment trust is one of the best investments for beginners as there’s not much that can really go wrong over the next few decades.

Diversified tech play 

Another investment trust that I believe would fit perfectly into a beginner’s portfolio is Allianz Technology (LSE: ATT). This is an excellent buy for both experienced and beginner investors alike due to its exposure to the fast-growing US tech sector. 

Tech investing is a risky sport, especially for UK investors who have the added complication of dealing in overseas securities and a different currency so building a diversified portfolio of US tech stocks can become an expensive task. That’s why Allianz is a great buy. The trust has exposure to all of the most significant tech stocks in the US, with Amazon.com, Apple, Microsoft and Facebook accounting for 20.5% of the portfolio, but there are none of the complications that can come with buying US shares. 

Allianz has also proved that it is a safe bet for investors. Over the past five years, the trust has returned 234%, outperforming its benchmark by 23%. The one downside is that the company does not offer shareholders a dividend, although, with an average capital return of 23.7% over the past five years, investors aren’t losing out. 

Allianz is trading at a slight 3% discount to its net asset value, and the fund charges 1% per annum in fees, which looks a tad expensive. But when you consider its historical returns, plus the overseas exposure, it’s not too demanding. 

So for beginners looking for exposure to the fast-growing tech sector as well as the slow and steady healthcare industry, Allianz and BB Healthcare seem to be the perfect duo. 

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Rupert Hargreaves owns no share mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool’s board of directors. LinkedIn is owned by Microsoft. The Motley Fool UK owns shares of and has recommended Amazon, Apple, and Facebook. The Motley Fool UK has the following options: long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, short March 2018 $200 calls on Facebook, and long March 2018 $170 puts on Facebook. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

If you’re unsure of which investment trusts to consider, then you might want to start out by taking a look at these top-performing trusts.

Long-term growth

For investors looking for long-term growth, I reckon the Lindsell Train Investment Trust (LSE: LTI) is worth a closer look. Shares in the investment trust have delivered a total return of 241% over the past five years, allowing it to easily beat the Morningstar Global Investment Trust category performance of 130%.

The Lindsell Train Investment Trust seeks to maximise long-term total return by investing in global equities and other Lindsell Train funds. But what’s unusual about this investment trust is that it also owns a significant minority stake in its investment manager, Lindsell Train Limited. This 24.3% stake in the investment management company co-founded by Michael Lindsell and Nick Train accounts for 37.9% of the value of its portfolio.

With such a large position in a single unquoted investment, investors in the trust are highly exposed to fluctuations in the valuation of that single company. And although its position in Lindsell Train Limited has no doubt played a big role in the fund’s recent outperformance, the opposite can also happen in the future.

Nevertheless, many investors seem confident that the fund will continue to deliver market-beating returns, as shares in the investment trust currently trade at a 25% premium to its net asset value of £680.03 per share.

Japan

The Baillie Gifford Japan Trust (LSE: BGFD) is a standout performer in the Japanese category, with a five-year return of 248%, compared to the average investment trust peer performance of 176%.

The fund has been managed by Sarah Whitley since 1991 and primarily focuses on medium-to-smaller-sized Japanese companies. Despite sluggish economic growth in that country, Whitley reckons there are still good opportunities for many stocks in her portfolio.

She likes to pick stocks with above average growth prospects and top holdings include Softbank (3.6%), Yaskawa Electric (2.9%), Misumi (2.8%), Start Today (2.8%) and Persol Holding (2.5%).

Sector focus

As technology disruption continues to impact the business landscape, the technology sector has proven to be a consistent market leader in recent years. With this in mind, the Allianz Technology Trust (LSE: ATT) is a solid pick for investors expecting further significant gains.

Over the past five years, the trust has delivered a cumulative performance of 217%, earning it a top-quartile ranking in the technology sector category. Many well-known tech brands dominate its portfolio, including Amazon (6.6%), Apple (6.2%) and Facebook (4.3%) — its top three positions. But the fund also holds big positions in lesser known names, such as cloud computing firm Workday (3.7%) and payments solutions company Square (3.2%).

And as expected, the US is by far its largest geographical exposure, representing just over 80% of total assets. This is followed by China (6.6%), France (3.0%) and South Korea (2.7%).

The post Can these top-performing investment trusts help you to achieve financial independence? appeared first on The Twelfth Magpie.

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Jack Tang has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.