Artificial intelligence is creating investment opportunities far beyond the handful of US technology giants dominating headlines. From Nvidia’s (NASDAQ:NVDA) processors and Asian semiconductor manufacturing to the data centres, fibre networks and enterprise software needed to run AI, the investment chain is becoming increasingly diverse.
For UK retail investors, investment trusts offer several ways to participate. Some invest directly in listed technology leaders; others back private AI developers, smaller technology suppliers or the infrastructure required to power increasingly demanding AI workloads.
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The attraction is diversification and access. Rather than selecting individual shares, investors can buy a single London-listed trust with exposure to a portfolio of businesses. Some trusts also provide access to private companies that are difficult for ordinary investors to own directly.
But the risks are substantial. High valuations, AI monetisation questions, rising capital expenditure, semiconductor cyclicality and the possibility that AI investment outpaces demand could all hurt returns. Private company valuations and investment trust discounts add further layers of uncertainty.
The key question for investors is not simply which trust owns the most AI stocks, but which offers the best combination of AI exposure, valuation, diversification, fees and risk.
The 10 trusts at a glance
The shortlist spans four distinct investment strategies. They should not be treated as interchangeable: a technology trust betting on chipmakers has a very different risk profile from an infrastructure lender earning interest on data-centre loans.
1. Polar Capital Technology Trust (LON:PCT)
Direct AI exposure
Semiconductors, cloud computing, AI platforms and technology infrastructure. One of the most direct ways to invest in listed technology companies.
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2. Allianz Technology Trust (LON:ATT)
Global technology growth, with exposure to AI hardware, software and companies developing new applications.
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3. Scottish Mortgage Investment Trust (LON:SMT)
Listed and private growth companies, offering a mix of AI infrastructure and disruptive technology businesses.
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4. RIT Capital Partners (LON:RCP)
A diversified, multi-asset approach with private-market exposure. AI is one potential return driver rather than the central investment thesis.
5. Baillie Gifford US Growth Trust (LON:USA)
High-conviction US growth investing, including the possibility of private-company exposure before a stock market listing.
6. Cordiant Digital Infrastructure (LON:CORD)
Data centres, fibre networks and telecommunications infrastructure: the physical assets that enable AI workloads.
7. Sequoia Economic Infrastructure Income (LON:SEQI)
Infrastructure lending, including loans financing data centres and power-related assets. More income-oriented than a conventional technology fund.
8. HgCapital Trust (LON:HGT)
Private equity exposure to enterprise software and business technology, where AI could improve productivity and product capabilities.
9. Herald Investment Trust (LON:HRI)
Smaller technology and communications companies, potentially capturing niche suppliers beyond the largest AI stocks.
10. Templeton Emerging Markets Investment Trust (LON:TEM)
Emerging market equities, including Asian semiconductor and electronics supply chains. A geographically broader route to AI hardware.
Investment metrics: price, discount, charges and returns
The table below uses the latest verifiable figures available from the sources consulted. Dates differ by trust, so these are not a perfectly synchronised market snapshot. Returns are total returns where specified, meaning dividends are included or assumed reinvested.
| Trust | Share price | Discount to NAV | Ongoing charges | 1-year share-price total return | 3-year share-price total return |
| Polar Capital Technology (PCT) | 770p | -8.5% | 0.69% | +58.3% | +213% |
| Allianz Technology (ATT) | 774p | -6.85% | 0.62% | +52.9% | +192% |
| Scottish Mortgage (SMT) | £16.23 | -8.1% | 0.33% | +39.2% | +139 |
| RIT Capital Partners (RCP) | £24.50 | -23.4% | 0.73% | +25.6% | +38.4% |
| Baillie Gifford US Growth (USA) | 390.5p | -3% | 0.70% | +41% | +157% |
| Cordiant Digital Infrastructure (CORD) | 117.5p | -19.6% | 1.12% | +31.3% | +99.0% |
| Sequoia Economic Infrastructure Income (SEQI) | 83.6p | -9.4% | 1.01% | +16.7% | +32.0% |
| HgCapital Trust (HGT) | 365p | -31.1% | 1.5% | −23.7% | +0.3% |
| Herald Investment Trust (HRI) | £29.35 | -13.6% | 1.08% | +19.4% | +72.1% |
| Templeton Emerging Markets (TEM) | 332p | -7.3% | 0.86% | +53.1% | +143.5% |
Source: AIC
Pros and cons of each investment trust
1. Polar Capital Technology Trust
Investment case: PCT is one of the clearest choices for investors seeking direct exposure to the AI investment cycle. Its global technology mandate gives it access to semiconductor designers, chip manufacturers, cloud platforms and software companies.
The trust’s recent performance illustrates both the opportunity and the risks: its share-price total return was 58.3% over one year and 213.0% over three years to 7 October 2026.
Pros
- Broad exposure across the technology value chain rather than a single AI company.
- Potential to benefit from semiconductor demand, cloud spending and AI adoption.
- A relatively competitive ongoing charge of 0.69%.
Cons
- Technology valuations can fall sharply if earnings disappoint or interest rates rise.
- Heavy exposure to AI infrastructure may leave the trust vulnerable if chip demand or data centre spending slows.
- A discount of around 10% is not a guarantee of a bargain; it can widen further.
Investor verdict: A strong candidate for investors who want AI to be a meaningful driver of portfolio returns and can tolerate significant volatility. It is less suitable as a complete, diversified investment portfolio on its own.
2. Allianz Technology Trust
Investment case: ATT takes an active approach to global technology investing, seeking growth opportunities across hardware, software and emerging applications. This can provide a different portfolio mix from a trust focused primarily on the largest AI infrastructure companies.
Its one-year share-price total return of 52.9% and three-year return of 191.8% to 7 October 2026 show the strength of the technology rally, although past returns should not be extrapolated.
Pros
- Exposure to both AI infrastructure and companies developing commercial applications.
- Active stock selection can identify winners beyond the most obvious mega-cap stocks.
- Diversification across different technology subsectors.
Cons
- Stock selection can underperform a technology index when a narrow group of companies dominates returns.
- High-growth software businesses can be vulnerable to competition and changing valuations.
- Investors should compare the latest charge and discount figures before buying.
Investor verdict: A credible alternative to PCT for investors who prefer an actively managed technology portfolio. Compare the two trusts’ current holdings and concentration before deciding whether owning both would add genuine diversification.
3. Scottish Mortgage Investment Trust
Investment case: SMT combines listed equities with private growth companies, aiming to capture businesses that could compound over many years. It is not a pure AI fund, but its mandate can provide exposure to AI infrastructure, technology platforms and privately held innovators.
As at early October 2026, the trust’s published share price was £16.375, against an estimated NAV of £17.97, representing a discount of 8.9%. Its ongoing charge was 0.33%.
Pros
- Access to public and private growth companies in one listed vehicle.
- Low ongoing charges relative to many specialist technology trusts.
- A long investment horizon allows managers to back companies through periods of volatility.
Cons
- Private holdings are harder to value and sell than listed shares.
- Growth stocks can be particularly sensitive to interest rates and changes in market sentiment.
- AI is only one part of a broader portfolio, which also carries exposure to other disruptive themes.
Investor verdict: A compelling option for investors who want AI exposure alongside other long-term growth opportunities. The broad mandate means its performance will not necessarily track the AI sector closely.
4. RIT Capital Partners
Investment case: RIT is a multi-asset investment trust seeking long-term capital growth while managing risk through diversification. Its private-market investments can offer access to opportunities that are not readily available on public markets.
Its share-price total return was 25.6% over one year and 38.4% over three years to 7 October 2026, compared with NAV total returns of 14.7% and 40.1%, respectively.
Pros
- Exposure to several asset classes and investment strategies.
- Private-market investments can provide access to businesses before a public listing.
- Less dependent on AI stock performance than a specialist technology trust.
Cons
- AI is not the primary investment objective, so exposure may be limited or indirect.
- Multiple asset classes and private holdings can make the portfolio harder to analyse.
- Diversification may dilute returns if AI-focused equities continue to outperform.
Investor verdict: Better suited to investors seeking a diversified core holding with some potential exposure to private AI innovation than to those looking for a concentrated AI investment.
5. Baillie Gifford US Growth Trust
Investment case: USA invests in high-conviction US growth businesses, with the flexibility to invest up to 50% of NAV in private companies at the time of purchase. Its manager has discussed exposure to AI models and infrastructure, including companies such as Anthropic, alongside listed technology businesses.
The ability to invest before an IPO is potentially attractive, but it also introduces additional valuation and liquidity risks.
Pros
- Access to private and listed US growth companies.
- Potential to participate in value creation before a company goes public.
- Ongoing charges of around 0.70%.
Cons
- Concentrated growth investing can produce substantial losses during market corrections.
- Private valuations can be uncertain and may adjust more slowly than public share prices.
- The trust’s AGM and shareholder governance situation is an additional issue investors should examine before investing.
Investor verdict: Potentially attractive for investors who specifically want US growth and private-market exposure, but the governance situation and the latest portfolio disclosures deserve close attention.
6. Cordiant Digital Infrastructure
Investment case: CORD provides exposure to the physical infrastructure underpinning digital services, including data centres, fibre and telecommunications networks. It is an indirect AI investment: the potential benefit comes from demand for connectivity, computing capacity and digital infrastructure rather than owning AI software or chipmakers directly.
At 7 October 2026, its share price was 117.5p against NAV of 146.06p, a discount of 19.6%. Its ongoing charge was 1.12%. Share-price total returns were 31.3% over one year and 99.0% over three years, while NAV total returns were 7.5% and 43.4%.
Pros
- Exposure to the essential physical assets supporting AI and cloud computing.
- Infrastructure revenue may be supported by long-term contracts.
- A wide discount could provide a potential entry point if NAV is reliable and sentiment improves.
Cons
- Infrastructure is capital-intensive and sensitive to financing costs.
- Data centre demand does not automatically translate into higher returns for shareholders.
- The gap between share-price and NAV performance shows how discounts can amplify volatility.
Investor verdict: One of the more interesting ways to diversify away from AI chip valuations, but investors should assess debt, asset valuations, occupancy, power availability and contract terms rather than relying on the AI theme alone.
7. Sequoia Economic Infrastructure Income
Investment case: SEQI lends to infrastructure projects rather than buying technology companies. Its portfolio includes financing linked to data centres and other digital infrastructure. This gives investors an indirect way to participate in AI-related investment while retaining an income-oriented mandate.
At the latest available AIC snapshot, its share price was 83.8p, NAV was 92.24p and the discount was 9.2%. Ongoing charges were 1.01%, with a reported dividend yield of approximately 8.2%. Share-price total returns were 16.7% over one year and 32.0% over three years to 9 September 2026.
Pros
- Potential income from contractual interest payments.
- Exposure to infrastructure investment without relying solely on equity-market valuations.
- Data centre and power projects may benefit from growing AI-related demand.
Cons
- Credit defaults, refinancing costs and falling collateral values can impair returns.
- High headline yields may reflect perceived risk rather than a free investment advantage.
- Rising interest rates can affect both borrowers’ financial health and the relative attraction of the trust’s income.
Investor verdict: Worth considering for income-oriented investors who want indirect exposure to AI infrastructure. It should be assessed as a credit investment first and an AI investment second.
8. HgCapital Trust
Investment case: HGT invests in private equity businesses, particularly enterprise software and technology-enabled services. AI could help these companies automate tasks, improve customer service and add new functionality to existing products.
However, the benefit depends on each company’s ability to integrate AI profitably and defend its competitive position.
Pros
- Exposure to enterprise software businesses that may use AI to improve margins.
- Potential value creation through operational improvements and product development.
- Diversification away from publicly listed mega-cap technology stocks.
Cons
- Private equity valuations are less transparent than daily market prices.
- Debt, refinancing and weaker business growth can weigh heavily on returns.
- The trust’s recent performance has been weak: share price total returns were −23.7% over one year and +0.3% over three years to 7 October 2026, against NAV returns of −2.8% and +11.2%.
Investor verdict: An interesting longer-term AI productivity play, but not a pure AI investment. Investors should look for evidence that AI is translating into revenue growth, pricing power or lower costs rather than simply being added to product marketing.
9. Herald Investment Trust
Investment case: Herald targets smaller quoted companies in technology and communications. These can include specialist equipment makers, semiconductor suppliers and niche software or communications businesses.
The attraction is the possibility of finding tomorrow’s important AI suppliers before they become large index constituents.
Pros
- Potential access to under-researched small and mid-cap technology businesses.
- Less dependence on the handful of dominant US technology giants.
- Exposure to specialist suppliers that could benefit from AI infrastructure spending.
Cons
- Smaller companies can have limited liquidity, weaker balance sheets and greater business risk.
- The portfolio may be volatile and can underperform when investors favour large, liquid growth stocks.
- A technology supplier can lose out even when the overall AI sector expands.
Investor verdict: A differentiated choice for investors who can tolerate small-company risk. The key is to examine actual holdings and determine how much revenue is genuinely connected to AI rather than assuming all technology exposure benefits equally.
10. Templeton Emerging Markets Investment Trust
Investment case: TEM invests across emerging markets, including Asian economies that play a major role in semiconductor manufacturing and electronics. Its AI exposure comes through companies in the wider supply chain, not from a dedicated AI mandate.
As at 7 October 2026, TEM’s share price was 336p, NAV was 364.28p and the discount was 7.8%. Ongoing charges were 0.86%. Its share-price total return was 53.1% over one year and 143.5% over three years.
Pros
- Exposure to Asian semiconductor and electronics supply chains.
- Geographic diversification beyond US technology shares.
- Emerging-market growth can offer opportunities beyond the most highly valued AI businesses.
Cons
- Political risk, trade restrictions and Taiwan-related geopolitical tensions can affect holdings.
- Currency movements can boost or reduce sterling returns.
- The trust has broad emerging-market exposure, so AI is only one of several drivers of performance.
Investor verdict: A useful way to add an Asian dimension to an AI-focused portfolio. Its appeal rests on the underlying companies and valuations, not simply on the popularity of AI.
Which trusts look most interesting for next phase of AI boom?
For UK investors, the strongest shortlist depends on which part of the AI investment cycle they want to own.
Best for direct AI exposure: Polar Capital Technology
Its dedicated technology mandate and strong recent returns make it a natural starting point for investors seeking listed AI winners. The main question is how much future growth is already reflected in share prices.
Best for private and listed growth: Scottish Mortgage
Its broad growth mandate and relatively low ongoing charge offer a different route to AI participation, including private businesses, although private valuations add risk.
Best for physical infrastructure: Cordiant Digital Infrastructure
It offers exposure to the data centres and connectivity behind digital growth. The discount is potentially interesting, but NAV quality, debt and financing costs need scrutiny.
Best for income-oriented AI infrastructure exposure: Sequoia Economic Infrastructure Income
Its lending model provides a different return profile from technology equities. Credit quality, defaults and the sustainability of the dividend are more important than AI enthusiasm alone.
Best for geographic diversification: Templeton Emerging Markets
Its exposure to emerging-market companies provides access to Asian semiconductor supply chains alongside other growth opportunities.
These are categories of interest, not a forecast that these five will outperform the others. Current valuations, portfolio holdings and the investor’s existing investments should determine the final selection.
Bull case vs bear case: investing in AI through trusts
| 🐂 Bull case | 🐻 Bear case |
| AI adoption creates sustained demand for chips, computing capacity, networking and power. | AI infrastructure spending could grow faster than the revenue and profits it ultimately generates. |
| Enterprise AI tools could unlock new revenue streams and productivity gains. | Competition could commoditise AI models and applications, squeezing margins. |
| Private-market trusts may gain from successful companies before they list publicly. | Private valuations can lag market reality and are difficult to realise in a downturn. |
| Infrastructure trusts offer alternatives to expensive technology shares. | Higher financing costs, credit defaults and weak asset valuations can undermine infrastructure returns. |
| Investment trust discounts can improve prospective returns if they narrow. | Discounts can widen further, even when the underlying portfolio performs well. |
What should UK retail investors check before buying?
- Look through the trust to its holdings. Two trusts may both advertise AI exposure but have very different concentrations in chips, software, private companies and infrastructure.
- Compare NAV returns with share price returns. A narrowing discount can boost returns temporarily; it is not necessarily evidence of stronger underlying investments.
- Check ongoing charges and other costs. A low management charge does not eliminate transaction costs, financing expenses or other potential charges.
- Assess the discount alongside NAV quality. A wide discount can signal an opportunity, but it can also reflect concerns about debt, liquidity or private-asset valuations.
- Consider the role in your portfolio. A specialist technology trust is generally better viewed as a satellite holding than an automatic replacement for a diversified global fund.
For investors using a UK Stocks and Shares ISA or SIPP, these London-listed investment trusts can generally be held within those wrappers, subject to the provider’s eligibility and dealing arrangements. Tax advantages depend on the individual’s circumstances.
Sharesify investor verdict
Artificial intelligence is creating investment opportunities far beyond the handful of US technology giants which means the AI investment boom is not a single trade. Semiconductor manufacturers, software developers, private growth businesses and infrastructure lenders all have different routes to generating returns, and different ways of losing money.
PCT and ATT are the most direct listed-technology routes; SMT and USA offer broader growth and private-market exposure; CORD and SEQI provide infrastructure alternatives; and TEM adds emerging-market exposure. RCP, HGT and HRI offer additional diversification, but their AI exposure should be established from their latest holdings rather than assumed from their investment mandates.
How to invest in technology stocks: A UK beginner’s guide 2026
One final qualification: the performance figures above have different reporting dates, and several trusts’ latest price, discount and charge figures were not independently verified in the sources consulted. The table is therefore a research starting point, not a fully synchronised live-price ranking. Before publication, verify the figures and refresh all 10 trusts to the same valuation date.
The most attractive trust will ultimately be the one where the underlying assets, earnings prospects and purchase price offer the best balance of potential returns and risk—not necessarily the one with the strongest recent performance.
Disclaimer: The author Steven Frazer has a personal interest in Allianz Technology, Polar Capital Technology, Scottish Mortgage and HgCapital.
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