The RCM Technology Trust provides the first opportunity for UK investors to access RCM’s US-based global technology team via a London-listed, UK-domiciled investment trust.
Investing in technology is a specialist’s game
We believe technology is different. Investing in the technology sector is a specialist’s game where backing future market leaders early is all important because, in technology, the rewards filter through to the few. This requires specialist understanding and an intimate knowledge of technology and technology companies; in fact we believe there are opportunities to create whole new sub-industries within technology.
Competition among technology companies may result in aggressive pricing of their products and services, which may affect the profitability of the companies in which the Trust invests. In addition, because of the rapid pace of technological development, products or services developed by these companies may become rapidly obsolete or have relatively short product cycles. This may have the effect of making the Trust’s returns more volatile than the returns of a fund that does not invest in similarly related companies.
Why RCM?
Identifying technology opportunities requires an in-depth understanding of individual companies and growth trends within technology. RCM believes it has this expertise and experience. RCM is the specialist global equity company within Allianz Global Investors. Organised on a global basis, RCM has offices strategically located in the US, Europe and Asia, where bottom-up research is used to identify investment opportunities by our global research platform of sector-based career analysts. This investment philosophy was founded in the 1970s and continues to be the cornerstone of RCM’s process today.
Grassroots® Research
We also believe that RCM’s proprietary Grassroots® Research is an essential and complementary tool when investing in technology companies. Blending market research with investigative journalism, Grassroots® Research’s mission is to provide our investment professionals with timely, original and customised research. A Grassroots® Research project manager will draw up a plan, working out what questions need to be asked and who needs to be contacted; for example, interviews might include dialogues with resellers and channel monitors about changing semiconductor inventories. Using a network of over 50,000 industry contacts, Grassroots® Research produces 50 to 60 studies per month which help our fund managers to anticipate industry trends and surprises ahead of the market.
Other important factors to consider
An investment trust’s shares may trade below (at a discount to) or above (at a premium to) the underlying net asset value.
Please remember that past performance is no guide to future performance. The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.
The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation and anyone who acts on it, or changes their opinion thereon, does so entirely at their own risk. The opinions expressed are based on information which we believe to be accurate and reliable; however, these opinions may change without notice.
How to invest
You can invest in the Allianz Global Investors managed Investment Trusts - including RCM Technology Trust - through the ISA, PEP and Share Plan wrappers of a number of suppliers, including Alliance Trust Savings. Investment Trusts are also available to buy via a stockbroker, and there are now a number that offer an online stockbroking service. You are strongly advised that if you are unsure about the most suitable option for your needs that you contact a Financial Adviser.
25/06/2007
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