REG - Allianz Tech Trust - Final Results
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RNS Number : 6727W Allianz Technology Trust PLC 16 March 2026
13 March 2026
ALLIANZ TECHNOLOGY TRUST PLC
LEI: 549300OMDPMJU23SSH75
Final Results for the year ended 31 December 2025
The following comprises extracts from the Company's Annual Financial Report
(AFR) for the period ended 31 December 2025. The full AFR is available to be
viewed on or downloaded from the Company's website at
www.allianztechnologytrust.com. (http://www.allianztechnologytrust.com/)
Copies will be posted to shareholders shortly.
For further information please contact:
Tim Scholefield, Chairman
Telephone: 020 3246 7000
Stephanie Carbonneil, Head of Investment Trusts
Telephone: 020 3246 7539
MANAGEMENT REPORT
Highlights:
· ATT has once again delivered a strong positive absolute return in its
Net Asset Value of +24.7%. Our benchmark index, the Dow Jones World Technology
Index, rose +20.0%, so in relative terms this represents an extremely strong
4.7 percentage point outperformance for the Trust.
· As the discount also narrowed slightly over the year, the share
price total return for shareholders was marginally higher at +25.8%.
· ATT's differentiated approach has provided strong compound
outperformance versus the index from its actively managed portfolio.
Chair's Statement
A good year, despite the geopolitical backdrop
2025 saw its fair share of volatility resulting from the febrile global
geopolitical backdrop and sporadic bouts of nervousness surrounding the
valuations of the listed technology companies the Trust invests in.
Nonetheless, it has been a positive year for us, and one that I am happy to be
reporting on.
Performance
I am pleased to report that ATT has once again delivered a strong positive
absolute return in its Net Asset Value of +24.7%. Our benchmark index, the Dow
Jones World Technology Index, rose +20.0%, so in relative terms this
represents an extremely strong 4.7 percentage point outperformance for the
Trust. As the discount also narrowed slightly over the year, the share price
total return for shareholders was marginally higher at +25.8%.
Regarding drivers, it is interesting to note the strong impact of our
differentiated strategy - not holding the benchmark equivalent weights in the
very largest companies and instead looking for opportunities further down the
market capitalisation spectrum. This year we can no longer say the benchmark
was wholly driven by 'Mag 7' exceptionalism, though those companies still
featured. Nvidia and Alphabet were the largest contributors to the benchmark's
performance, with Microsoft third and Meta rounding out the top ten
contributors. Apple however was lacklustre, yielding a barely positive return.
Our outperformance came from holding higher weights in companies such as
Micron Technology, Lam Research, Celestica, Robinhood Markets and Amphenol. We
hold well over benchmark weights in the former two which respectively focus on
computer memory and semiconductor manufacturing equipment production. The last
three - involved in high-tech electronics manufacturing, electronic trading
and specialist interconnectors - are not part of our benchmark but are highly
exposed to strong secular technology growth themes.
Of the Magnificent 7 companies in the benchmark, the maths can become
interesting. As noted, Nvidia was the largest contributor to the benchmark
return, its winning contribution the result of a dominant 14%-plus index
weight and its respectable 30% return. We maintained slightly less than a 10%
weight during the year. In contrast, Micron Technologies returned around +216%
but only constitutes around 0.6% of the index (we owned a 2.5% position on
average).
In longer 'compound' performance terms, 2025's +24.7% return comes on the back
of 2024's +35.6 % and 2023's +46.4%, a solid +106.7% return over the past
three financial years, representing a +2.7 percentage point outperformance of
the benchmark index over that time. Of course, those with a longer memory will
point out 2022's -33.6%. The point I make is twofold - the volatility
associated with the tech sector can be painful, but the rewards when they do
come have also been substantial. This is the balance one has to remember when
investing in tech.
Discount and buybacks
Given these impressive returns, it can be difficult to rationalise the
persistent discount to Net Asset Value in the price at which the Company's
shares have been trading. The wider environment for investment trusts may have
a bearing - overall levels of discounts across all trusts remain generally
elevated when compared to history. For tech companies a degree of caution over
the sector's short term prospects following a period of very strong
performance may also have provided a headwind in 2025. We hope that
shareholders will remember that our Investment Manager's primary focus is to
extract the best returns over the long term from this tremendously exciting
sector while reducing exposure to risk, which should help investors worry less
about short term newsflow and focus more on their investment returns
compounding over time.
Beyond sales and marketing efforts to encourage demand, the other mechanism by
which the Board can exert some influence on the discount is by buying back the
Company's shares. The Board's policy in respect of buybacks is unchanged. We
would consider buying back shares when the discount is consistently over 7%
and we judge it appropriate to do so given the prevailing market backdrop.
Over the year to 31 December 2025, a total of 26,088,876 shares were bought
back, for an aggregate value of £124,993,000. The Company traded at an
average discount of 9.8% over the period. We ended 2024 at a discount of 8.6%
and were pleased to end 2025 at a slightly lower discount of 7.8%. Since the
end of the financial year and up to 11 March 2026 the Company bought back a
further 4,025,723 shares for an aggregate value of £21,364,000.
It may be easy to suppose that buybacks should be used to initiate a 'zero
discount policy' as some investment trusts have chosen to do. We view them
differently, as a tool to help reduce discount volatility. Moving too far
beyond this however risks overly interfering with the permanent capital pool
that the Investment Manager works with - a key benefit of investment trusts
over open-ended vehicles over the long term. We believe that a balanced
approach with that long term view on shareholder value is the right one to
take. To that end, at the forthcoming AGM, the Board will once again seek
authority to buy back up to 14.99% of the shares in issue.
Investment Company of the Year Awards
I'm delighted to report that the strong three-year performance noted above,
along with recognition of our differentiated strategy and ongoing drive for
consistent shareholder returns, was once again recognised by ATT being named
'2025 Investment Company of the Year' in the 'Technology' category at
Investment Week's prestigious awards in November 2025.
The geopolitical backdrop
For much of 2025 there was considerable uncertainty. The macroeconomic
environment was generally supportive and the year started with some positivity
remaining from the inauguration of President Trump on the basis that he had
been fairly pro-business in his first term. The 'mic-drop' moment came on 2
April with 'Liberation Day', when tariffs on imported goods were proposed
against most countries outside of the US. Markets reacted strongly. Tech was
by no means immune, with multi-jurisdictional supply chains woven into the
very fabric of the industry. However, the nervousness was short lived.
US politics hasn't been the only driver of geopolitical pressure. War still
rages in Ukraine. Israel and Palestine moved towards peace but it remains
fragile. Against this background though, as a key enabler of modern life,
demand for technology continues to accelerate and technology companies have
carried on innovating, growing and ultimately justifying their valuations.
The benefits of a differentiated approach
With the dominance of the largest tech companies over recent periods, it has
been seemingly 'easy' to achieve performance with lower-cost investment
vehicles, like passive funds and ETFs. But that misses the point. ATT has an
approach of focusing lower down the capitalisation scale, in the mid- and
large-cap segments. Over time, despite mega-cap tech stocks having dominated,
ATT's differentiated approach has provided strong compound outperformance
versus the index from its actively managed portfolio.
Risk (particularly concentration risk) can be somewhat esoteric, especially
when those very large stocks do not suffer any apparent issues - but the point
is sound. Our approach is to provide shareholders with a diversified portfolio
where risks are spread and not excessively concentrated in a small number of
dominant holdings. We therefore avoid the concentration risk that results from
a passive approach to portfolio construction which slavishly replicates index
weightings. Moreover, sudden or excessive falls in company share prices can
create attractive entry points for bottom-up active investors with a longer
term investment horizon - a case of opportunity emerging out of market
overreaction.
The mechanism to mitigate concentration risk as far as possible (while looking
at the smaller up-and-coming companies) is a key element we provide for
shareholders. We feel ATT's record of active fund management speaks for itself
and demonstrates both the benefits of our differentiated approach and the
advantages of an investment team located in the San Francisco Bay Area.
Why San Francisco, the Bay Area, Silicon Valley? Our Lead Portfolio Manager,
Mike Seidenberg, believes there is something special about a 'whites of the
eyes' conversation, and not just a video call. The advantage lies in the
physicality of the access - he values the chance to see the office, some
elements of operations and access to line managers as well as senior
management - as it gives him a better feel for how an organisation is truly
operating. Being able to experience, and therefore assess, the corporate
culture at first hand is a significant advantage. Our manager, having come
from industry himself, really values that insight. On top of that, the unique
scale of the Bay Area ecosystem allows the investment team to assimilate new
tech themes and identify beneficiaries rapidly and effectively.
AI and beyond
My statement doesn't need a lengthy section dedicated to AI. We have covered
the topic in detail previously, and Mike Seidenberg gives more of his team's
own thoughts on the topic in the report on pages 7 to 9. Suffice it to say
that there has been no material challenge to the narrative around AI - it is
truly transformational, not just within the tech sector, but for pretty much
everyone and everything. It is speed of adoption, ethics and monetisation
which are valid areas of debate. Parallels are often drawn to the rise of the
internet - the companies leading the charge at the time weren't necessarily
the longer-term winners and that could be the same with AI. The skill for
investors will be making money from this incredible trend while maintaining a
balanced perspective on risk. Your Investment Manager's focus is not to get
carried away on the back of market groupthink, but to look for opportunities
with genuine appreciation potential for our shareholders.
So, what comes after AI?
Although the technology has been around for some time, we now seem to be
closer than ever to the emergence of quantum computing as a practical
technology. Where conventional computers process information using bits,
quantum computers use qubits, which can hold both "on" and "off" states
simultaneously. This property allows them to explore multiple solution
pathways in parallel, making them extraordinarily powerful for solving
problems involving quantum physics, such as molecular interactions. This
capability is already attracting serious attention from leading pharmaceutical
companies, though the opportunity extends well beyond pharmaceuticals, into
materials science and other fields. While fully functioning quantum computers
could still be some time away, the pace of innovation is rapid.
Another technology which is not new but penetrating ever quicker into mature
applications is blockchain. While the technology has attracted investor
attention for some time through cryptocurrency speculation, the more
significant opportunity lies in its emerging role as core enterprise
infrastructure. After years of pilot projects, blockchain has reached a
maturity level where it is now being deployed for specific, high-value
business problems - particularly those involving multiple parties who need to
share data without fully 'trusting' each other. Stablecoins are transforming
cross-border payments, asset managers are beginning to 'tokenise' treasury
products, Walmart is tracking products on blockchain, and Maersk and Citibank
have automated trade finance guarantees using smart contracts.
The costs of running your Company
Your Board has maintained close attention to the costs of running the Company
to ensure they are competitive. The Company's Ongoing Charges Figure (OCF) has
fallen marginally to 0.62% (2024: 0.64%). I am pleased to report that the
Company continues to have the lowest OCF within its AIC peer group (Technology
& Technology Innovation).
The OCF excludes any performance fee due to the Investment Manager. Despite
outperforming the index in the year there remains brought forward
underperformance to offset. As a consequence no performance fee was earned.
The board reviewed the performance fee calculation in the year, and
considering the increased size of the Company, negotiated a reduction in the
percentage performance fee cap from 1.75% to 1.25% of the average Net Asset
Value. This took effect from 1 January 2026.
Continuation vote
In accordance with our Articles of Association, shareholders will be asked to
vote on the continuation of the Trust at this year's AGM. In view of ATT's
excellent long-term performance record and our confidence in the Investment
Manager to be able to maintain a portfolio giving differentiated exposure to
transformative technologies well into the future, the Board strongly
encourages you to vote in favour of the resolution.
Annual General Meeting (AGM) arrangements
This year's AGM will be held on 23 April 2026 at 2.30pm. As with previous
years, the AGM will be a hybrid meeting, meaning shareholders can either
attend physically or online. We strongly encourage all shareholders to submit
their votes by the deadline of 20 April 2026. Those shareholders attending
virtually will be able to view the AGM and submit questions electronically.
The Board encourages shareholders to attend the AGM if possible. A
presentation by the lead portfolio manager will be made at the start of the
meeting. For those unable to attend, a recording of the AGM will be posted to
the Company's website. The Board looks forward to welcoming shareholders to
this year's event.
Outlook
One thing is certain - we are very likely to see ongoing volatility. Firstly,
it is likely within the sector as investors continue to get over-excited and
then over-fearful in turn. An AI 'Bubble' has been called multiple times this
past year, and the market has reacted accordingly. There are two camps
emerging - those that believe we are seeing valuations starting to overheat,
and those that see enough evidence of AI-driven revenue or margin improvement
to validate higher valuations today. You can read our Investment Manager's
detailed view later in this report, but suffice it to say here that while the
onward path is unlikely to be monotonically upward, with times of investor
retreat very likely, Mike and his team do not view the current scenario as
bubble territory.
Volatility will also likely be driven from outside the sector by an
increasingly fraught geopolitical environment. A new world order appears to be
emerging, and disagreements and posturing are becoming increasingly
uncomfortable, and could spill into wider global conflict with profound market
implications.
Any volatility can be both good and bad for investors. Certainly, it never
feels comfortable while experiencing it live - but for the seasoned, dedicated
and attuned investor, therein lies opportunity. One of the key skills of our
Investment Manager is to navigate the complexity of the macro environment as
it melds itself with the day-to-day business of tech firms. Your Trust
provides a vehicle to give access to this exciting sector, while providing the
reassurance of a highly experienced, investment management team.
Tech firms will carry on innovating, growing and selling products and services
and demand for those products and services will continue to grow. The signals
remain strong for improving revenue growth and the macroeconomic environment
looks like it should be supportive. We will continue to ensure the Trust
follows its primary objective of generating long-term returns for shareholders
from skilful selection of individual businesses in this tremendously exciting
sector.
Tim Scholefield
Chairman
13 March 2026
Portfolio Manager's Report
How did the technology sector perform in 2025?
Overall, it has been another strong year for technology. Our benchmark, the DJ
World Technology index, rose 20.0% and the Company delivered 24.7%. Our
returns came from a range of sectors, as technology leadership broadened out
from the dominant US mega-caps. We saw particular strength in semiconductors
and some hardware names, while the growth of artificial intelligence remained
a strong and persistent theme.
Nevertheless, this positive result disguised plenty of intra-year volatility.
The year definitely had some gut wrenching moments, which seems to be a
feature of most years! For example, 'Liberation Day' caused a severe sell-off
across global stock markets. The announcement of tariffs made for an
unpredictable period for the technology sector. Many technology companies have
large global franchises and were therefore on the front line for the tariff
impact. It took time for deals to be struck and for share prices to recover.
As long-term investors with the goal of owning strong technology franchises in
all types of markets, we have built a diversified, resilient portfolio which
we hope will weather these short-term storms.
Over many cycles, we have learnt that 'doing nothing' is often the best course
of action, and the Liberation Day sell-off was no different, when only minor
changes to the portfolio were made. These are noisy times and we need to be
careful not to respond to every White House announcement. In some cases, we
added to our favourite positions when we saw prices of these companies retreat
and actively engaged with management in order to understand any potential
implications for their business. Our proximity to many of the companies in
Silicon Valley allowed us to meet with a number of companies during a
tumultuous period for the stocks. We found that, in many cases, the outlook
for companies hadn't changed.
There have been growing fears of a 'bubble' in Artificial Intelligence (AI).
Are you worried?
AI is the most important sectoral theme to emerge in the last few years and it
is a significant focus for the Company. We are always striving to make good
risk/reward decisions for our shareholders, and to do that we have a clear
framework around valuation. For every company, we analyse long-term growth
rate, profitability and potential.
Comparisons have been made with the dotcom boom. In our view, the biggest
difference is that in the dotcom boom there were a lot of weak businesses that
didn't solve difficult problems. In contrast, many AI companies are solving
large, real world problems. Equally, while the first-movers on the internet
didn't necessarily stay the distance, the hyperscalers have built far greater
dominance over the AI ecosystem and have longevity. As with every
technological revolution, not all will make it, which is why active,
disciplined management is so important.
Public market valuations remain high, but - for the most part - are not
excessive and not nearly as high as at the peak of the dotcom euphoria. We do
see signs of exuberance in some of the private equity valuations and are
watching capital spending carefully. Companies recognise that it could be an
existential threat if they get AI wrong - they risk becoming obsolete. This
could prompt some potential capital misallocation, but a rigorous bottom-up
approach ensures that we can avoid any excesses.
What happened to technology company earnings during the year?
Earnings have exceeded expectations for many technology companies,
particularly those associated with AI. This has created a high bar and
investors have been ruthless where companies have disappointed. In general,
companies such as Alphabet have been on the right side, while companies such
as Meta and Microsoft have struggled to impress.
Nevertheless, it is worth noting that technology continues to contribute a
substantial share of S&P 500 earnings - as much as two-thirds for 2025.
Earnings strength has broadened out beyond the hyperscalers and into the AI
ecosystem and this has been an increasing area of interest for the Company.
The Company has around one-third in semiconductors. Why has this been an area
of interest?
ATT aims to offer investors a diversified technology portfolio. Our goal is to
look at the entire ecosystem and find compelling investments across a wide
spectrum of companies. In previous secular themes, we attempted to uncover
investment opportunities which sit behind the obvious theme leaders, such as
the companies supplying the infrastructure to the AI leaders, and our goal is
the same here. This resulted in a robust investment pool in the semiconductor
ecosystem.
The semiconductor sector made up around a third of the portfolio (32.5%) over
the year, and delivered an average return of 45.6%. The names we chose within
that sector, including Micron, Broadcom and Advanced Micro Devices (AMD), were
important for overall returns and we outpaced the benchmark in the
semiconductor sector. Micron contributed more than any other single stock to
our performance over the year.
Elsewhere within the AI ecosystem, we have invested in groups such as
Celestica, which is a product manufacturing and supply chain services group
that is benefiting from the growth of data centres. We are also invested in
Amphenol, which makes the connectors that go inside data centres and is seeing
strong growth in demand. Memory was also an important area in 2025 as supply
shortages hit, with LAM Research a significant contributor over the year.
New ideas added to the portfolio in 2025?
Robinhood is an interesting new idea in the portfolio, contributing 1
percentage point to relative performance in 2025. The trading platform is
widely used among younger generations for their long-term savings. Its
strategy is highly differentiated and uses elements of 'gamification' and'
nudge theory' to encourage savings and investment. Young people have a
different way of thinking about their savings and expect to be able to manage
them in a different way. Robinhood has tapped into that market very well and
built a loyal customer base.
Has the Magnificent Seven relinquished its grip on market leadership?
It was a more complex year for the Magnificent Seven companies, with real
concerns over the level of spending and whether they would see returns on
their commitments. Microsoft, Meta, Alphabet and Amazon are expected to spend
a combined $350 billion this year. Investors increasingly need evidence that
those commitments are paying off. In 2025, Alphabet convinced investors that
its capital allocation was proving effective, while the jury was out for Meta
and Apple.
Nvidia's share price was very strong for much of the year and its earnings
managed to outpace even the high expectations set for it by analysts. Its
third quarter results showed revenues growing at 62% year on year. All the
data on AI spending continues to support strong growth for Nvidia and we are
comfortable with our position in the stock.
The strong performance of the mega caps had been a headwind for active
technology strategies such as ours. In a diversified, actively managed
portfolio, it would not be prudent to hold Nvidia at index weight or above.
And so, even though it is our largest holding, Nvidia did not deliver
outperformance versus our benchmark. We prefer to look for large and mid cap
stocks where we believe we can add more value. The mega cap headwind became a
tailwind in 2025, as investors recognised that there is a range of options to
invest in AI growth and started to turn their attention elsewhere.
Did your market cap positioning help relative performance over the year?
Yes. The portfolio held 47.5% in the mega caps (i.e. those companies worth
more than $1 trillion). This was around 12% below the benchmark and this
underweight contributed to performance over the year. Our weighting in
mid-caps, at around 5% of the portfolio, was a strong contributor,
particularly AMD, Amphenol and CrowdStrike.
Palantir was another significant contributor to returns in 2025. What drove
share price performance there?
Palantir sat at the intersection between two major trends in 2025: defence and
AI. Defence was a popular sector as European powers committed to raising
defence spending, both in support of Ukraine and in response to the US backing
away from its prior defence commitments. The MSCI World Aerospace and Defence
sector rose 52.5% over the year, more than double the return of the MSCI
World.
Palantir is also at the forefront of AI. It has the most demonstrable
real-time AI deployment. Its customers are large government agencies, who use
Palantir products for a variety of use cases. Palantir is moving into the
corporate realm and focusing on building its enterprise presence, which should
be fruitful. They have some of the brightest and best software engineers and
have done a phenomenal job of growing their business with year-on-year sales
growing at over 55% in 2025.
Did higher defence spending also boost cybersecurity?
Cybersecurity is a crucial area of spending for companies and governments. The
adversaries have become so good and so sophisticated. In 2025, we saw
production disrupted at Japanese beer maker Asahi and at UK car group Jaguar
Land Rover. They were among a whole host of companies, businesses and
governments to experience attacks. Cybersecurity's relevance extends beyond
defence spending and is more about the world we're living in - a digital world
requires spending on cybersecurity.
Companies in the sector had a reasonable year, with CyberArk and CrowdStrike
marginally ahead of the benchmark. We had a 7 percentage point overweight at
the start of the year, reducing to 5 percentage point by the end. We still
find this segment a good hunting ground for ideas.
Software was a more difficult area in 2025. Why was that?
Software is still an important part of the portfolio, at 25.8%. However, it
had a tough year. The S&P 500 Software Index was down over 2025, falling
1% , which was a significant relative underperformance compared to the rest of
the technology sector.
The fear is that many software names will be taken out by AI, with IT buyers
looking to AI agents to perform tasks currently performed by software. Shares
in companies such as Salesforce, ServiceNow and Adobe have all struggled.
We believe it will remain a difficult area. Semiconductors are growing at
30%+, which makes an allocation to software, where growth rates are a more
anaemic 10-12%, hard to justify. The market tends to reward technology
companies for growth.
Nevertheless, there is a question over whether they have gotten too cheap -
the decrease in value has been extraordinary. We are finding some interesting
opportunities. MongoDB, for example, has been hit hard over the year. It is a
good example of a company that hasn't been able to prove to investors that it
is part of the deployment of AI workloads, but we see value there. Elsewhere,
we continue to look at software companies in detail, visit their premises and
pore over the data. We need to be sure that not owning them at these
valuations is the right position.
As Asian vendors pick up more of the AI supply chain and China expands its
technology ecosystem, are you seeing more opportunities outside the US?
While the companies we hold draw revenues from across the world, they tend to
be listed in the US and have their centre of operations there. It is true that
some of the excitement in technology this year has come from outside the US.
Investors have started to wake up to the broader AI ecosystem, much of which
is located outside the US. We have participated through companies such as
TSMC, where we had a 4.3% average weighting over the year. Some of the Korean
memory companies have also been strong, but we have participated through
Micron.
Ultimately, we are based in the US, at the heart of Silicon Valley. The US
technology ecosystem is unparalleled, and it is still home to significant
global innovation. We want to leverage our strengths for the benefit our
investors.
How optimistic are you looking in 2026?
We are cautiously optimistic. We continue to see good opportunities for
technology to be a bigger part of people's lives. This has been a recurring
theme since the first day I started working for the Company. We balance this
with a nuanced understanding on the spending environment.
Innovation continues to support growth for technology companies, particularly
around AI. These technology shifts come once every 12-15 years and when they
occur, they tend to be very powerful. People will always worry about a bubble,
but when a secular change emerges, it tends to create significant value over
the cycle. It is our job to uncover this value and to look beyond the obvious
opportunities to other parts of the market.
2026 has potential to be a robust year for IPOs with a number of high-profile
companies waiting in the wings. Obviously, a number of factors need to line up
to execute these IPOs and we look forward to learning more about these
exciting businesses.
We are alert to the risks of over-valuation, portfolio concentration and also
the risks emerging from a volatile macroeconomic backdrop. We are constantly
testing our hypotheses and striving to understand the risk and reward for
every company.
For the time being companies appear to be weathering the macroeconomic
volatility well. It has not been a great environment, but in the aftermath of
the pandemic, companies underspent on technology and there is still pent-up
demand. We expect that companies will need to show value in order for purchase
orders to increase but this usually allows the leaders to take market share
and for also-rans to fade away.
It is important not to let macroeconomic or geopolitical factors become a
distraction. There is always noise, and even more so in recent years. Our
stock selection has to be governed by our deep dive on the stocks, rather than
by the latest missive from the White House. Occasionally, macroeconomic
factors will change the business model, but not as often as markets imagine.
It is important to remember technology remains at the forefront of creating
differentiation for many companies across numerous vertical markets and thus
our long-term enthusiasm endures.
Mike Seidenberg
Lead Portfolio Manager
Voya Investment Management Co. LLC
13 March 2026
Viability Statement
In accordance with the Corporate Governance provisions the Company is required
to make a forward-looking (longer-term) Viability Statement. In order to do
this the Board has considered the appetite for a technology investment trust
against the current market backdrop, and has formally assessed the prospects
for the Company over a period of five years. The Board believes that the
period of five years is appropriate and is in line with the five year
continuation vote. The next continuation vote will be put to shareholders at
the AGM in 2026. In order to assess the prospects for the Company the Board
has considered:
· The investment objective and strategy taking into account recent,
past and potential performance against both the benchmark, other indices of
note and peers;
· The financial position of the Company, which does not currently
utilise gearing in any form but does maintain a portfolio of, in the main,
non-income bearing investments;
· The liquidity of the portfolio and the ability to liquidate the
portfolio on the failure of a continuation vote;
· The macro economic conditions and geopolitical events;
· The ever increasing level of technology adopted by both
individuals and corporations alike;
· The inherent risks in such technology both in terms of speed of
advancement; and
· The principal risks faced by the Company as outlined below.
The Board is fully aware that the world of technology is constantly evolving
and growing and could potentially look very different in five years. However,
based on the results of the formal assessment, through regular updates from
the AIFM and the Investment Manager, the Board believes it is reasonable to
expect that the Company will continue in operation and meet its liabilities
for the period of five years under this review.
Investment Controls and Monitoring
The Board in conjunction with the AIFM and the Investment Manager has put in
place a schedule of investment controls and restrictions within which
investment decisions are made. These controls include limits on the size and
type of investment and are monitored on a constant basis. They are formally
signed off by the AIFM and the Investment Manager every month and are reviewed
by the Board at every meeting.
Principal and Emerging Risks and Uncertainties
The principal risks identified by the Board are set out in the table on page
15 of the annual financial report, together with information about the actions
taken to mitigate these risks. A more detailed version of this table in the
form of a Risk Map and Controls document is reviewed in full and updated by
the Audit & Risk Committee and Board at least twice per year. Individual
risks, including emerging risks and threats to reputation, are considered by
the Board in further detail depending on the market situation and a high-level
review of all known risks faced by the Company is considered at every Board
meeting. The principal risks and uncertainties faced by the Company relate to
the nature of its objectives and strategy as an investment company and the
operations of its third party service providers.
Description Mitigation
Investment strategy and performance risk The Board has established a schedule of investment controls which is monitored
monthly and reviewed at each Board meeting. The Investment Manager has
The Company's NAV may be adversely affected by the Investment Manager's responsibility for sectoral weighting and for individual stock picking, having
inappropriate allocation of funds to particular sub-sectors of the technology taken due account of Investment Objectives and Controls that are agreed with
market and/or to the selection of individual stocks that fail to perform the Board from time to time and regularly reviewed. These seek, inter alia, to
satisfactorily, leading to poor investment performance in absolute terms ensure that the portfolio is diversified and that its risk profile is
and/or against the benchmark. appropriate.
Technology sector risk The Board reviews investment performance, including a detailed attribution
analysis comparing performance against the benchmark, at each Board meeting.
The technology sector is characterised by rapid change. New and disruptive At such meetings, the Investment Manager reports on major developments and
technologies, including AI, can place competitive pressures on established changes in technology market sectors and also highlights issues relating to
companies and business models, and technology stocks may experience greater individual securities. The Board has continued to review the risks and
price volatility than securities in some slower changing market sectors. opportunities presented by AI via discussion with subject matter experts and
discussion with the Investment Manager at each Board meeting.
Cyber risk The operations of the Company are carried out by third party service
providers. All service providers report to the Board on operational issues
The Company may be at risk of cyber attacks which may result in the loss of including cyber risks and the controls in place to capture potential attacks.
sensitive information or disruption to the business. See Operational Risk below.
Market risk The Board, the AIFM and the Investment Manager would monitor the progress of
any unexpected events and may consider hedging, gearing or other strategies to
The Company's NAV may be adversely affected by a general decline in the respond to particular market conditions. The AIFM and the Investment Manager
valuation of listed securities and/or adverse market sentiment towards the maintain regular contact with shareholders to discuss performance and
technology sector in particular. Although the Company has a portfolio that is expectations and to convey the belief of the Board and the Investment Manager
diversified by company size, sub-sector and geography, its principal focus is that superior returns can be generated from investment in carefully selected
on companies with high growth potential in the mid-size ranges of companies that are well managed, financially strong and focused on those
capitalisation. The shares of these companies may be perceived as being at the segments of the technology market where disruptive change is occurring.
higher end of the risk spectrum, leading to a lack of interest in the
Company's shares in some market conditions. The Company's portfolio may be The Board, the AIFM and the Investment Manager would monitor the progress of
affected by changes to central banks' interest rates. Higher interest rates the unexpected events very closely and initiate appropriate responses where
have typically had an adverse impact on growth stocks. possible.
Market sentiment may quickly deteriorate in the face of geopolitical events
and effects on the macro-economic environment.
Currency risk The Board monitors currency movements and determines hedging policies as
appropriate. The Board does not currently seek to hedge this foreign currency
A high proportion of the Company's assets is likely to be held in securities risk.
that are denominated in US Dollars, whilst its accounts are maintained in
Sterling. Movements in foreign exchange rates affect the performance of the
Investment Portfolio and create a risk for shareholders.
Financial and liquidity risk Financial and liquidity reports are provided to and considered by the Board on
a regular basis.
The financial risks to the Company and the controls in place to manage these
risks are disclosed in detail in Note 13 beginning on page 62 of the annual
financial report.
Operational risk The Board receives regular reports from the AIFM, the Investment Manager and
third parties on internal controls highlighting areas of exception, including
The Company may be impacted by disruption to or the failure of the systems and reports on monitoring visits carried out by the Depositary on behalf of the
processes utilised by the AIFM and the Investment Manager or other third party Company. The Board has further considered the risk of cyber-attacks and fraud
service providers. This encompasses disruption or failure caused by and has received reports and assurance regarding the controls in place and
cybercrime, fraud and errors and covers dealing, trade processing, details of whistleblowing procedures.
administrative services, financial and other operational functions.
Key individual risk Succession plans are in place for the Board. The lead portfolio manager is
supported by Erik Swords, portfolio manager, and an experienced team of
The Company could suffer disruption to operations as a consequence of loss of technology investors. Cover is available for core members of the relevant
key individuals e.g. the lead portfolio manager. teams of the AIFM.
Emerging Risk - Artificial General Intelligence The Board will continue to monitor AI evolution through through discussions
with the Investment Manager and industry experts. Changes to, and the
Artificial General Intelligence (AGI) could introduce unintended consequences, implementation of new regulations, laws and governance of AI will be monitored
geopolitical and economic disruption, security vulnerabilities and, in extreme by the Board as the landscape develops. The Board will also monitor its third
scenarios, existential risk. party service providers in respect of the controls and regulation of AI.
In addition to the specific principal risks identified in the table above,
general risks are also present relating to compliance with accounting, legal
and regulatory requirements, and with corporate governance and shareholder
relations issues which could have an impact on reputation and market rating.
Management of the services provided and the internal controls procedures of
the third party providers is monitored and reported on by the AIFM to the
Board. These risks are all formally reviewed by the Board twice each year and
at such other times as deemed necessary. Details of the Company's compliance
with corporate governance best practice, including information on relations
with shareholders, are set out in the Corporate Governance Statement within
the Directors' Review beginning on page 32 of the annual financial report. The
Board's review of the risks faced by the Company also includes an assessment
of the residual risks after mitigating action has been taken.
On behalf of the Board
Tim Scholefield
Chairman 13 March 2026
Related Party Transactions
During the financial year no transactions with related parties took place
which would materially affect the financial position or the performance of the
Company.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Financial Report and
the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law).
The financial statements are required by law to give a true and fair view of
the state of affairs of the Company and of the total return of the Company for
that year. In preparing these financial statements, the Directors are required
to:
· select suitable accounting policies and then apply them
consistently;
· make judgements and estimates that are reasonable and prudent;
· state whether applicable UK accounting standards have been
followed; and
· prepare the financial statements on the going concern basis,
unless it is inappropriate to presume that the Company will continue in
business.
The Directors confirm that the financial statements comply with the above
requirements.
The Directors are responsible for keeping adequate accounting records that
disclose with reasonable accuracy at any time the financial position of the
Company and enable them to ensure that the financial statements comply with
the Companies Act 2006. They are also responsible for safeguarding the assets
of the Company and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, a Directors' Report, and Corporate Governance
Statement, and a Directors' Remuneration Report which comply with that law and
those regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website. The
financial statements are published on www.allianztechnologytrust.com, which is
a website maintained by the Alternative Investment Fund Manager. The work
undertaken by the Auditor does not involve consideration of the maintenance
and integrity of the website and, accordingly, the Auditor accepts no
responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website. Visitors to the
website need to be aware that legislation in the United Kingdom governing the
preparation and dissemination of the financial statements may differ from
legislation in other jurisdictions.
Neither an audit nor a review provides assurance on the maintenance and
integrity of the website, including controls used to achieve this, and in
particular whether any changes may have occurred to the financial information
since first published. These matters are the responsibility of the Directors
but no control procedures can provide absolute assurance in this area.
The Directors each confirm to the best of their knowledge that:
(a) the Financial Statements, which have been prepared in accordance with
applicable accounting standards, give a true and fair view of the assets,
liabilities, financial position and return of the Company; and
(b) the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company, along with a
description of the principal risks and uncertainties that the Company faces.
The Directors confirm that the Annual Report and Financial Statements, taken
as a whole are fair, balanced and understandable and provide the information
necessary to assess the Company's position and performance, business model and
strategy.
For and on behalf of the Board
Tim Scholefield
Chairman
13 March 2026
Investment Portfolio
at 31 December 2025
Investment Sector(1) Sub Sector(1) Country(2) Valuation % of
£000
Portfolio
NVIDIA Semiconductors & Semiconductor Equipment Semiconductors United States 209,907 10.5
Alphabet Interactive Media & Services Interactive Media & Services United States 191,099 9.5
Microsoft Software Systems Software United States 163,681 8.2
Apple Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 146,299 7.3
Broadcom Semiconductors & Semiconductor Equipment Semiconductors United States 145,895 7.3
Taiwan Semiconductor Semiconductors & Semiconductor Equipment Semiconductors Taiwan 112,039 5.6
Micron Technology Semiconductors & Semiconductor Equipment Semiconductors United States 93,991 4.7
Lam Research Semiconductors & Semiconductor Equipment Semiconductor Materials & Equipment United States 73,328 3.6
Meta Platforms Interactive Media & Services Interactive Media & Services United States 60,307 3.0
KLA Semiconductors & Semiconductor Equipment Semiconductor Equipment United States 53,183 2.6
Top Ten Investments 1,249,729 62.3
Monolithic Power Systems Semiconductors & Semiconductor Equipment Semiconductors United States 50,897 2.5
Amphenol Electronic Equipment Instruments & Components Electronic Components United States 46,792 2.3
Snowflake IT Services Internet Services & Infrastructure United States 41,718 2.1
MongoDB IT Services Internet Services & Infrastructure United States 37,778 1.9
Shopify IT Services Internet Services & Infrastructure Canada 35,451 1.8
Advanced Micro Devices Semiconductors & Semiconductor Equipment Semiconductors United States 34,569 1.7
Analog Devices Semiconductors & Semiconductor Equipment Semiconductors United States 29,797 1.5
Arista Networks Communications Equipment Communications Equipment United States 29,169 1.5
CrowdStrike Software Systems Software United States 27,319 1.4
Cloudflare IT Services Internet Services & Infrastructure United States 26,626 1.3
Top Twenty Investments 1,609,845 80.3
Western Digital Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 23,993 1.2
Celestica Electronic Equipment Instruments & Components Electronic Manufacturing Services Canada 23,389 1.2
Robinhood Markets Capital Markets Investment Banking & Brokerage United States 22,559 1.1
Tencent Interactive Media & Services Interactive Media & Services Cayman Islands 21,814 1.1
Alibaba Broadline Retail Broadline Retail Cayman Islands 19,974 1.0
Palantir Technologies Software Application Software United States 18,831 0.9
Samsara Software Application Software United States 18,289 0.9
ServiceNow Software Systems Software United States 17,666 0.9
Palo Alto Networks Software Systems Software United States 17,654 0.9
Rubrik Software Systems Software United States 17,220 0.9
Top Thirty Investments 1,811,234 90.4
Zscaler Software Systems Software United States 16,281 0.8
Spotify Technology Entertainment Movies & Entertainment Luxembourg 15,259 0.8
Klaviyo Software Application Software United States 14,903 0.7
Datadog Software Application Software United States 14,467 0.7
Seagate Technology Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals Ireland 14,178 0.7
Sandisk Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 14,064 0.7
Elastic NV Software Application Software Netherlands 12,982 0.6
Lumentum Communications Equipment Communications Equipment United States 12,382 0.6
Coherent Electronic Equipment Instruments & Components Electronic Equipment Instruments & Components United States 12,102 0.6
Rocket Lab Aerospace & Defense Aerospace & Defense United States 10,594 0.5
Top Forty Investments 1,948,446 97.1
Reddit Interactive Media & Services Interactive Media & Services United States 10,173 0.5
CyberArk Software Systems Software Israel 9,018 0.4
Bloom Energy Electrical Equipment Electrical Equipment United States 8,444 0.4
Okta IT Services Internet Services & Infrastructure United States 7,381 0.4
Sailpoint Software Application Software United States 7,109 0.4
Oracle Software Systems Software United States 6,420 0.3
Coinbase Capital Markets Financial Exchanges & Data United States 5,598 0.3
IonQ Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 4,008 0.2
Figma Software Software United States 24 0.0
Total Investments 2,006,621 100.0
(1) GICS Industry classifications.
(2) Country of incorporation.
Income Statement
for the year ended 31 December 2025
2025 2025 2025 2024 2024 2024
Revenue
Capital
Total Return
Revenue
Capital
Total Return
£'000s
£'000s
£'000s
£'000s
£'000s
£'000s
Gains on investments held at fair value through profit or loss - 413,324 413,324 - 462,854 462,854
Exchange gains (losses) on currency balances (17) (2,202) (2,219) (8) 1,521 1,513
Income 8,332 - 8,332 6,571 - 6,571
Investment management fee and performance fee (10,159) - (10,159) (8,816) - (8,816)
Administration expenses (1,129) - (1,129) (1,165) - (1,165)
Profit (loss) before finance costs and taxation (2,973) 411,122 408,149 (3,418) 464,375 460,957
Taxation (1,168) - (1,168) (891) - (891)
Profit (loss) on ordinary activities attributable to (4,141) 411,122 406,981 (4,309) 464,375 460,066
Ordinary shareholders
Earnings (loss) per Ordinary share (basic and diluted) (1.11p) 110.50p 109.39p (1.12p) 120.68p 119.56p
The total return column of this statement is the income statement of the
Company.
The supplementary revenue and capital columns are both prepared under the
guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing
operations. No operations were acquired or discontinued in the year.
The profit attributable to Ordinary shareholders for the year disclosed above
represents the Company's total Comprehensive Income. The Company does not have
any other Comprehensive Income.
Balance Sheet
at 31 December 2025
2025 2024
£'000s
£'000s
Non current assets
Investments held at fair value through profit or loss 2,006,621 1,715,543
Current assets
Other receivables 811 511
Cash and cash equivalents 25,121 33,763
25,932 34,274
Current liabilities
Other payables (3,698) (2,950)
Net current assets 22,234 31,324
Total net assets 2,028,855 1,746,867
Capital and reserves
Called up share capital 10,719 10,719
Share premium account 334,191 334,191
Capital redemption reserve 1,021 1,021
Capital reserve 1,728,808 1,442,679
Revenue reserve (45,884) (41,743)
Shareholders' funds - equity 2,028,855 1,746,867
Net asset value per Ordinary share 571.7p 458.6p
The financial statements of Allianz Technology Trust PLC, company number
3117355, were approved and authorised for issue by the Board of Directors on
13 March 2026 and signed on its behalf by:
Tim Scholefield
Chairman
13 March 2026
Statement of Changes in Equity
for the year ended 31 December 2025
Called up Share Capital Redemption Reserve Capital Revenue Reserve Total
Share
Premium Account
£'000s
Reserve
£'000s
£'000s
Capital
£'000s
£'000s
£'000s
Net assets at 1 January 2024 10,719 334,191 1,021 1,010,278 (37,434) 1,318,775
Revenue loss - - - - (4,309) (4,309)
Shares repurchased into treasury during the year - - - (31,974) - (31,974)
Capital profit - - - 464,375 - 464,375
Net assets at 31 December 2024 10,719 334,191 1,021 1,442,679 (41,743) 1,746,867
Net assets at 1 January 2025 10,719 334,191 1,021 1,442,679 (41,743) 1,746,867
Revenue loss - - - - (4,141) (4,141)
Shares repurchased into treasury during the year - - - (124,993) - (124,993)
Capital profit - - - 411,122 - 411,122
Net assets at 31 December 2025 10,719 334,191 1,021 1,728,808 (45,884) 2,028,855
Note A
Summary of Accounting Policies
The financial statements have been prepared on the basis of the accounting
policies set out below.
The financial statements have been prepared in accordance with The Companies
Act 2006, FRS 102 and with the Statement of Recommended Practice 'Financial
Statements of Investment Trust Companies and Venture Capital Trusts' (SORP)
issued by the Association of Investment Companies (AIC) in July 2022.
In order to better reflect the activities of an investment trust company and
in accordance with guidance issued by the AIC, supplementary information which
analyses the Income Statement between items of a revenue and capital nature
has been presented alongside the Income Statement. In accordance with the
Company's status as a UK investment company under section 833 and 834 of the
Companies Act 2006, net capital returns may be distributed by way of dividend.
The requirements within FRS 102 section 7.1A have been met to qualify for the
exemption to prepare a Cash Flow Statement. Therefore the Cash Flow Statement
has not been included in the financial statements.
The accounting policies adopted in preparing the current year's financial
statements are consistent with those of previous years.
The Directors believe that it is appropriate to continue to adopt the going
concern basis in preparing the financial statements as the assets of the
Company consist mainly of securities which are readily realisable and
significantly exceed liabilities. The Directors have considered the Company's
investment objective and capital structure. The Directors have also considered
the risks and consequences of the geopolitical and macro-economic events on
the operational aspects of the Company and have concluded that the Company has
adequate financial resources to continue in operational existence and meet its
objectives for twelve months after the approval of the financial statements.
Income
Dividends received on equity shares are accounted for on an ex-dividend basis.
UK dividends are shown net of tax credits and foreign dividends are grossed up
at the appropriate rate of withholding tax.
Special dividends are recognised on an ex-dividend basis and treated as a
capital or revenue item depending on the facts and circumstances of each
dividend.
Where the Company has elected to receive its dividends in the form of
additional shares rather than in cash, the equivalent of the cash dividend is
recognised as revenue. Any excess in the value of the shares received over the
amount of the cash dividend is recognised in capital.
Deposit interest receivable is accounted for on an accruals basis.
Investment management fees and administrative expenses
The investment management fee is calculated on the basis set out in Note 2 to
the financial statements within the annual financial report and is charged in
full to revenue as permitted by the SORP. Performance fees are charged in full
to capital, as they are directly attributable to the capital performance of
the investments. Other administrative expenses are charged in full to revenue.
All expenses are recognised on an accruals basis.
Valuation
The Company's business is investing in financial assets with a view to
profiting from their total return in the form of increases in fair value. The
financial assets are publicly traded equity investments which are held at fair
value through profit or loss in accordance with FRS 102 Section 11: 'Basic
Financial Instruments' and Section 12: 'Other Financial Instruments'.
Investments held at fair value through profit or loss are initially recognised
at fair value. After initial recognition, these continue to be measured at
fair value, which for quoted investments is either the bid price or the last
traded price depending on the convention of the exchange on which the
investment is listed. Gains or losses on investments are recognised in the
capital column of the Income Statement. Purchases and sales of financial
assets are recognised on the trade date, being the date at which the Company
commits to purchase or sell the assets.
Transactions with the Investment Manager and related parties
The amounts paid to the Investment Manager together with details of the
investment management contract are disclosed in Note 2 on page 57 of the
annual financial report. The existence of an independent Board of Directors
demonstrates that the Company is free to pursue its own financial and
operating policies and therefore, under FRS102 Section 33: 'Related Party
Disclosures', the Investment Manager is not considered to be a related party.
The Company's related parties are its Directors. Fees paid to the Company's
Board, including employer national insurance contributions, are disclosed in
Note 3 on page 58 of the annual financial report. There are no other
identifiable related parties at 31 December 2025, and as of • March 2026.
Note B
Return per Ordinary Share
The earnings per Ordinary Share of 109.39p (2024: 119.56p) is based on the
weighted average number of Ordinary Shares in issue of 372,058,138 (2024:
384,793,143).
Note C
Fixed Asset Investments
Included in the cost of investments are transaction costs and stamp duty on
purchases which amounted to £68,000 (2024: £147,000) and transaction costs
on sales amounted to £77,000 (2024: £214,000).
Note D
Post Balance Sheet events
Since the year end a further 4,025,723 Ordinary shares have been bought back
for a total cash consideration of £21.4m. As at 11 March 2026 there were
428,756,680 Ordinary shares in issue (including 77,930,056 Ordinary shares in
treasury).
Note E
2025 Financial Information
The financial information for the period ended 31 December 2025 has been
extracted from the statutory accounts for that year. The auditor's report on
those accounts was unqualified and did not contain a statement under either
Section 498(2) or (3) of the Companies Act 2006. The Annual Financial Report
has not yet been delivered to the Registrar of Companies.
2024 Financial Information
The financial information for the period ended 31 December 2024 has been
extracted from the statutory accounts for that year. The auditor's report on
those accounts was unqualified and did not contain a statement under either
Section 498(2) or (3) of the Companies Act 2006. The Annual Financial Report
has been delivered to the Registrar of Companies.
Annual Report and Financial Statements
The full Annual Financial Report is available to be viewed on or downloaded
from the Company's website at www.allianztechnologytrust.com. Neither the
contents of the Company's website nor the contents of any website accessible
from hyperlinks on the Company's website (or any other website) is
incorporated into, nor forms part of this announcement.
Annual General Meeting
The Annual General Meeting of the Company will be held at Stationers' Hall,
Ave Maria Lane, London EC4M 7DD on Thursday 23 April 2026 at 2.30pm.
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