Six technology and innovation investment trusts to consider
Technology, and its ever-present subsector artificial intelligence (AI), are perhaps the hottest topics in investment – and have been for several years.
Information technology officially accounts for 32% of the MSCI ACWI Index. Yet in reality, what we’d all intuitively think of as ‘tech’ companies account for a greater proportion of this, since MSCI officially designates companies like Alphabet, Amazon, Meta and Tesla into industry sectors other than information technology.
This concentration brings risks with it. Passive tracker funds act to condense stock markets into the biggest names, and investors therefore run the risk of being over-exposed to the sector – which can exhibit volatility when times get tough.
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There is also the intensely competitive nature of tech growth to contend with. Nascent, disruptive technologies like AI can create as many losers as winners, if not more. Knowing which stocks to invest in can be difficult, even for the professionals.
An investment trust – which is by definition actively managed – has the potential to mitigate some of these risks, and the vehicles offer some structural advantages too.
“The closed-ended nature of investment trusts makes them well-suited to technology investing,” said Alex Trett, investment trust research analyst at Winterflood Securities.
“The permanent capital allows managers to take a genuinely long-term approach, supporting investments in private companies and giving them the patience to see investment theses play out over time.
“The structure can also facilitate exposure to smaller-cap technology businesses, where liquidity can be a constraint for other investment vehicles. In addition, it enables managers to build concentrated, high-conviction portfolios, allowing them to express their strongest investment ideas.”
Here’s six of the best-known investment trusts that can offer you exposure to some of the world’s most innovative technology companies.
Scottish Mortgage
Just as many ‘big tech’ companies aren’t designated tech, one of the biggest investment trusts that many people think of as ‘tech-focused’ isn’t actually a technology trust.
Scottish Mortgage (LON:SMT) aims to own “the world’s most exceptional public and private growth companies”. As it happens, a lot of these are tech companies, but the trust emphasises that its focus is on long-term growth potential, whatever sector that may be in.
Still, buy Scottish Mortgage now and you’ll get a lot of tech. As of 30 June, SpaceX accounted for over 25% of the portfolio, followed by Taiwan Semiconductor (6.4%), Nvidia (5.0%) and TikTok’s owner Bytedance (4.2%).
ByteDance and, until recently, SpaceX have exemplified part of the appeal of SMT: its ability to hold private companies alongside publicly listed ones, tapping into the future growth potential they offer. The heavy weighting towards SpaceX is largely a consequence of this and its recent initial public offering (IPO); Trett expects the position to be trimmed once lock-up periods permit.
|
Symbol |
Market cap (£ million) |
Discount / premium (%) |
1yr share price return (%) |
10 yr share price return (%) |
Dividend yield (%) |
|
SMT |
17,009 |
-8.5 |
27.8 |
403.0 |
0.34 |
Source: Association of Investment Companies, as of 21/07/26.
Polar Capital Technology
Polar Capital (LON:PCT) has focused its approach on the hardware and infrastructure underpinning the buildout of artificial intelligence (AI).
“The managers believe these areas offer greater earnings visibility and forecastability, with semiconductors representing the largest exposure at 44% of the portfolio, followed by equipment, components and storage including Advanced Micro Devices and LAM Research,” said Trett.
|
Symbol |
Market cap (£ million) |
Discount / premium (%) |
1yr share price return (%) |
10 yr share price return (%) |
Dividend yield (%) |
|
PCT |
7,233 |
-9.2 |
62.6 |
847.2 |
0.0 |
Source: Association of Investment Companies, as of 21/07/26.
Allianz Technology Trust
All of these trusts are listed in the UK, but Allianz Technology (LON:ATT) is distinctive in having its management team based in San Francisco, giving it close access to many of the companies in its portfolio – approximately 90% of which is allocated to North America, as of 30 June.
“The portfolio provides broad exposure across the technology and AI ecosystem,” said Trett.
“The managers have highlighted the role of technology in creating differentiation across a wide range of industries [and] believe the AI opportunity is continuing to broaden beyond the initial infrastructure buildout, supporting a more diversified and durable phase of growth across the technology sector”.
|
Symbol |
Market cap (£ million) |
Discount / premium (%) |
1yr share price return (%) |
10 yr share price return (%) |
Dividend yield (%) |
|
ATT |
2,582 |
-8.8 |
49.6 |
875.1 |
0.0 |
Source: Association of Investment Companies, as of 21/07/26.
Schiehallion
Like Scottish Mortgage, Schiehallion (LON:MNTN) is managed by Baillie Gifford and, depending on how pedantic you’re feeling, isn’t technically a technology investment trust.
But it has an interesting focus on early-stage companies – even more so than SMT, given that it invests in later-stage private companies.
“While not a dedicated technology fund, technology represents around 47% of the portfolio, with holdings including Anthropic, Bending Spoons, SpaceX, ByteDance and Databricks,” said Trett.
|
Symbol |
Market cap (£ million) |
Discount / premium (%) |
1yr share price return (%) |
10 yr share price return (%) |
Dividend yield (%) |
|
MNTN |
2,031.67 |
-15.37 |
69.0 |
N/A |
0.0 |
Source: Association of Investment Companies, as of 21/07/26.
Herald Investment Trust
Again, Herald Investment Trust (LON:HRI) technically belongs in the Global Smaller Companies category, but it has a strong focus on technology and communications companies.
It was the subject of a bid from Saba Capital Management to displace its board, which led to a tender offer and for the trust to become part of Aberdeen.
Trett picks out Super Micro Computer, BE Semiconductor Industries, Celestica and Fabrinet as among its key holdings.
|
Symbol |
Market cap (£ million) |
Discount / premium (%) |
1yr share price return (%) |
10 yr share price return (%) |
Dividend yield (%) |
|
HRI |
565.46 |
-11.3 |
21.7 |
305.1 |
0.0 |
Source: Association of Investment Companies, as of 21/07/26.
Manchester and London
Some people use investment trusts to diversify away from big tech concentration. Manchester & London (LON:MNL) is an investment trust for people that want to lean into it.
The fund takes a concentrated approach to investing and predominantly holds large-cap stocks, with AI a high-conviction play for the managers.
“The fund’s concentrated portfolio allows it to hold significant positions in its preferred ideas; Nvidia represented 43.6% of net assets in January before being subsequently reduced to 9.0% as at 30 June,” said Trett.
|
Symbol |
Market cap (£ million) |
Discount / premium (%) |
1yr share price return (%) |
10 yr share price return (%) |
Dividend yield (%) |
|
MNL |
498.75 |
-25.29 |
19.0 |
429.4 |
2.9 |
Source: Association of Investment Companies, as of 21/07/26.
