Entering text into the input field will update the search result below

Fund Spotlight: AllianzGI Artificial Intelligence & Technology Opportunities Fund


  • AIO is a newer fund launched last October dedicated to the artificial intelligence space. This is mostly marketing pushing a new fund in a hot new area.
  • The fund is 50% in technology stocks that Allianz managers believe will benefit from the AI movement. The rest of the portfolio is in convertibles.
  • We compare the funds to its peers like STK, BST, and BSTZ and see that it's good at keeping up with half of the portfolio in convertibles.
  • The current discount is appealing as at -11.5% and we think fair value may be a few points tighter.
  • Looking for a helping hand in the market? Members of Yield Hunting: Alt Inc Opps get exclusive ideas and guidance to navigate any climate. Get started today »

(This report was published to members of Yield Hunting on May 15. All data is from that date unless otherwise stated.)

AllianzGI Artificial Intelligence & Technology Opportunities Fund (NYSE:AIO)

This is a relatively new fund - now seven months old - with Allianz pushing the marketing of AI. The fund, which came to market on Halloween 2019 IPOd at a $20.00 NAV. The price was also launched at $20 with Allianz eating those offering costs, a trend that's increasingly being used to make CEF IPOs more palatable. We are rarely seeing the old strategy of offering new CEFs at a premium to NAV.

In addition, another trend we are seeing is the shift toward new funds having a term structure. This is a fund that liquidates at a certain date (but not certain price) in the future at NAV. This is a benefit to the shareholder since it tends to tether the price closer to the NAV, especially as the liquidation approaches. I would place little value on this at this point in time. For one, there has been a trend toward funds switching at the last moment to perpetual trusts eliminating the liquidation provision. Second, the offering documents state that they extend by a year without shareholder approval for up to one year and then again for another six months.

The fund does not typically use leverage though they have the ability to through the issuance of preferred shares, bank lines, or other borrowing like reverse repos. The portfolio is mostly made up of technology stocks and convertible securities. We detail more below.

As the name suggests, the marketing wizards at Allianz are pushing a new tech fund with a particular focus on artificial intelligence. The fund can invest across the capital structure (meaning stocks, bonds and everything in between) and in a broad

Our Yield Hunting marketplace service is currently offering, for a limited time only, free trials and 20% off the introductory rate. 

Our member community is fairly unique focused primarily on constructing portfolios geared towards income. The Core Income Portfolio currently yields over 8% comprised of closed-end funds. If you are interested in learning about closed-end funds and want guidance on generating income, check out our service today.  We also have expert guidance on individual preferred stocks, ETFs, and mutual funds.

Check out our Five-Star member reviews.

Click here to learn more.

This article was written by

Alpha Gen Capital profile picture
Targeting 8+% Income Stream using CEFs, ETFs, Munis, Preferreds and REITs
Yield Hunting: Alternative Income Opportunities is a premium service dedicated to income investors who are searching for yield without the high risk of the equity market. We are one of the top experts in closed-end funds ("CEFs") in the country having spoken at many national conferences on how to incorporate CEFs into client portfolios. We manage four portfolios that investors can follow:

- YH Core Income Portfolio: yield ~8%
- YH Flexible Income Portfolio: yield 7.53%
- YH Taxable Core Portfolio: yield 5.24% (some tax free)
- YH Financial Advisor Model

Plus: Muni CEF Shopping List.

Our team includes:

1) Alpha Gen Capital - I am a former financial advisor and investor. Not someone from another career doing this on the side. My analysis is meant to provide safe and actionable insight without the fluff or risky ideas of most other letters. My goal is to provide a relatively safer income stream with CEFs and mutual funds. We also help investors learn about investing and how to properly construct a portfolio.

2) George Spritzer - Another career financial guru who runs a registered investment advisor with a specialization in closed-end funds for individuals. George uses the following investment strategies:1) Opportunistic Closed-end fund investing: Buy CEFs at larger than normal discounts to NAV and sell them when the discounts narrow. 2) Exploit special situations: tender offers, fund terminations, fund activism, rights offerings etc.

3) Landlord Investor- spent his career as a management consultant for public sector clients at a multinational consulting firm in the DC area. He has transitioned to a new career as a full time landlord. His investment portfolio is comprised of two parts -- broad-based index funds and income plays such as preferred stock, CEFs, and REITs. He also owns individual/baby bonds which he buys on margin to boost total return. Landlord is our 'individual preferred stock' expert analyst.


Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.