REG - Allianz Tech Trust - Half-year Report
08/08/2022 13:30
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RNS Number : 2882V Allianz Technology Trust PLC 08 August 2022
8 August
2022
ALLIANZ TECHNOLOGY TRUST PLC
HALF-YEARLY FINANCIAL REPORT
For the six months ended 30 June 2022
HIGHLIGHTS
30 June 31 December 2021 %
2022 Change
Net Asset Value per Ordinary Share 241.5p 347.9p -30.6
Ordinary Share Price 208.0p 352.5p -41.0
(Discount) premium of Ordinary Share Price to Net Asset Value
(13.9%) 1.3% n/a
Dow Jones World Technology Index (sterling adjusted, total return)
1,924.1 2,489.3 -22.7
Shareholders' Funds £1,001.7m £1,472.4m -32.0
Interim Management Report
Chairman's Statement
Harsh economic and geopolitical realities
This has been a tough period for growth investors and tougher still for those
seeking returns from innovative technology. The combination of unexpectedly
high inflation, rising interest rates and Putin's war against Ukraine has
caused a broad exodus from growth assets as investors worry about the
possibilities of recession and stagflation.
Performance
Against this challenging backdrop we are reporting disappointing performance
for the six months to the end of June. Net asset value per share (NAV) fell by
30.6% against a fall in our benchmark index of 22.7%, underperformance of 7.9
percentage points. It is small consolation to report that over this period the
pound weakened against the US dollar which has mitigated the fall due to the
preponderance of US dollar based assets in the portfolio.
As explained in the Investment Manager's Review, the main reasons for this
underperformance are rooted in our strategic overweight positions in stocks
with high growth potential - unfortunately the same stocks that have been hit
the hardest in the market sell-off.
The sharp downturn in investor sentiment over the period has caused a steady
and significant downward movement in the Company's share price compared to
NAV. At the end of last year the share price was at a modest premium to NAV
but has finished the half year period at a discount of 13.9%. Again it is
scant consolation for Shareholders, but over this period discounts have
widened across most investment companies and across our technology focused
peers in particular.
The Board has paid close attention to the level of discount over the period
and, through the Company's brokers, the Board has been active in buying back
shares. Over the period 8,416,659 shares were bought back at an average
discount of 12.4%. Since the period end on 30 June 2022, a further 2,006,383
shares have been bought back. All shares repurchased are held in treasury
rather than cancelled so that they may be reissued if sufficient demand
arises.
Shareholder funds dropped from £1,472.4 million at the start of the year to
£1,001.7 million at the period end.
Given the nature of the Company's investments and its stated investment
objective to achieve capital growth, no dividend is proposed in respect of the
current period and the Board considers it unlikely that any dividend will be
declared in the near future.
Portfolio management team changes
In the Annual Report we announced that Walter Price, the lead manager since
2007, was stepping back and that Mike Seidenberg, his deputy on the portfolio
for more than a decade, was to take over from him. This transition happened at
the end of the reporting period and from 1 July Mike has been leading the
management of the portfolio. Walter is staying involved with the running of
ATT's portfolio up until the end of the year, after which he will be enjoying
a well-deserved retirement.
The Board wishes to record its sincere thanks to Walter for his leadership of
the technology investment team over the past decade and a half. The realigned
investment strategy that they initiated has delivered truly exceptional
returns to Shareholders over this period and has made your company an
established choice for both retail and professional investors as one of the
UK's leading investment trusts.
The Board is pleased to have the continuity of portfolio management that comes
from Mike taking over the lead role and we look forward to working closely
with him over the coming months and years. Mike is a highly accomplished
investor in his own right, but in his own words has, whilst working alongside
Walter, been learning from a mentor who is undoubtedly a "legend" of the
sector.
Investment management corporate changes
Allianz Global Investors (AllianzGI) announced on 13 June that they were
entering into a strategic partnership in the US with Voya Investment
Management (Voya) that would see the majority of their US investment
capability (including the San Francisco based Global Technology team) transfer
to Voya in exchange for AllianzGI taking a significant shareholding in Voya.
The impact of this proposed transaction on the Company was the separation of
AllianzGI's role
as Alternative Investment Fund Manager (AIFM) including the provision of
company secretarial, administrative, and sales and marketing functions from
AllianzGI's provision of Portfolio Management services via its US subsidiary
which moves to be part of Voya.
Since the announcement of the proposed transaction the Board has considered
these proposals carefully and taken appropriate independent advice. In
particular the Board has received assurances that the investment team in San
Francisco are enthusiastic about the new arrangements, that there are no
significant changes to their investment processes and that the Company's
ability to have oversight over the investment activities will be unchanged.
The aggregate fees paid by the Company to AllianzGI and Voya do not change.
The Board concluded that the new arrangements remain in the best interests of
Shareholders.
Consequently the Board gave its consent to the change in management
arrangements and
a tripartite agreement was signed between the Company, AllianzGI as AIFM and
Voya as Portfolio Manager on 19 July 2022 and took effect on 25 July 2022
being the date that the transfer of AllianzGI US staff to Voya took place.
Board updates
Following the appointment of Tim Scholefield to the Board last December the
Board undertook a search process during the first half of this year to recruit
an additional new director as part of the Company's Board succession plan.
Katya Thomson was appointed to the Board with effect from 18 July. Katya is
currently a non-executive director of AVI Japan Opportunity Trust plc,
Henderson EuroTrust plc and MIGO Opportunities Trust plc. She is a chartered
accountant with a focus on corporate finance and strategy during her executive
career.
We are delighted that Katya has joined the Board. She brings a wealth of
experience across a breadth of sectors and businesses and we all look forward
to working with her.
AGM
The Company's AGM was held on 26 April 2022. After two years of virtual
meetings, it was pleasing to hold a physical meeting and be able to greet
Shareholders in person. Taking on Board the lessons of the pandemic though,
the Board put in place arrangements for Shareholders to also attend the AGM
electronically, ask questions and vote in real time, by using their computer,
tablet or smartphone. I am pleased to report that all resolutions put to
Shareholders at the AGM were passed and I would like to thank Shareholders for
their support, particularly in these testing times.
A recording of the AGM, including a presentation from portfolio manager Walter
Price, can be found on the company's website or via the QR code to the left.
Outlook
There appears little to be encouraged about in the macroeconomic and global
political outlook. The world has been shaken by a series of shocks over the
past few years - pestilence, war and now very possibly famine to use old
fashioned terms. Quantitative easing and the other policy tools that have been
deployed by governments to mitigate these shocks may prove in part to have
merely deferred rather than avoided some of the adverse consequences
associated with similar shocks in the past. Naturally we should all hope for
better outcomes but we know that this will not be easily achieved in a world
heading towards greater political fragmentation and reducing global
collaboration. That said, the fortunes of economies and the fortunes of
individual companies are not necessarily inextricably linked, and markets can
also move in a different direction to what the prevailing backdrop might
suggest when investors eye emerging opportunity.
What we do know is that technology has been and will remain a key enabler of
economic progress. Whilst the short term direction of share prices is almost
impossible to predict, the likelihood is that superior long term returns will
continue to be possible from investment in technology led businesses. The
Manager continues to construct the Company's portfolio with a diversified mix
of higher-growth companies, as well as access to cyclical/value stocks. We
remain confident in the Manager's ability to drive long-term relative
performance through the team's high conviction expertise as they continue to
focus on identifying trends that have the potential to uncover tomorrow's
Apple or Microsoft.
Principal risks and uncertainties for the remainder of the financial year
The principal risks and uncertainties facing the Company are broadly unchanged
from those described in the annual report for the year ended 31 December 2021.
These are set out in the Strategic Report on pages 36-41 of that report,
together with commentary on the Board's approach to mitigating the risks and
uncertainties. Given the global macroeconomic and geopolitical backdrop,
market risk remains front of mind and the Board and Investment Manager
continue to monitor the situation carefully.
The Board performs a high-level review of the principal risks at every meeting
to ensure that the risk assessment is current and relevant, adjusting
mitigating factors and procedures as appropriate.
Keeping in touch
Shareholders are reminded that the Company's revamped website
www.allianztechnologytrust. com is the 'go-to' destination for the very latest
news, views and broadcast content relating to the Company. We continue to
offer an ongoing email communications programme distributing monthly
factsheets, insights and other occasional Company updates to all those who opt
in to receive them. If you would enjoy receiving these targeted communications
you can sign up easily via the Company's website, which can also be accessed
via the QR code to the right.
Going concern
The Directors believe that it is appropriate to adopt the going concern basis
in preparing the financial statements as the assets of the Company consist
mainly of securities that are readily realisable and the Company's assets are
significantly greater than its liabilities. The Directors have assessed the
impact of the change in management arrangements and the continued operational
resilience of the Company's service providers and have concluded that the
Company has adequate financial resources to continue in operational existence
for twelve months after approval of these financial statements.
The Company is subject to a continuation vote of the Shareholders every five
years. The last continuation vote was put to Shareholders at the AGM in 2021.
Related party transactions
In accordance with the definition as provided by the Listing Rules 11.1.4, the
only related party arrangement in place is the relationship between the
Directors, AIFM and Portfolio Manager.
The services provided by the AIFM and Portfolio Manager under the Investment
Management Agreement form a significant contract but are not deemed to be a
related party transaction. There have been no material transactions which have
affected the financial position of the Company other than fees paid to
directors in the normal course of business.
Following the end of the Temporary Permissions Regime put in place after the
UK's exit from the European Union, the Board understands that Allianz Global
Investors plan to replace Allianz Global Investors GmbH, UK Branch as the
management company with Allianz Global Investors UK Ltd. This is subject to
Allianz Global Investors UK Ltd. being granted the necessary authorisation
from the FCA.
Responsibility statement
The Directors confirm to the best of their knowledge that:
- the condensed set of financial statements contained within the
half-yearly financial report has been prepared in accordance with FRS 102 and
FRS 104, as set out in Note 1 and the Accounting Standards Board's Statement:
'Half-Yearly Financial Reports';
- the interim management report includes a fair review of the
information required by Disclosure and Transparency Rule 4.2.7 R, of important
events that have occurred during the first six months of the financial year,
their impact on the condensed set of financial statements, and a description
of the principal risks and uncertainties for the remaining six months of the
financial year; and
- the interim management report includes a fair review of the
information concerning related party transactions as required by Disclosure
and Transparency Rule 4.2.8 R. The half-yearly financial report was approved
by the Board on 8 August 2022 and signed on its behalf by the Chairman.
Robert Jeens
Chairman
8 August 2022
.
INVESTMENT MANAGER'S REVIEW
Investment Review
Global equities tumbled over the first half of 2022, posting their worst
two-quarter drop since 2009, as Russia's invasion of Ukraine sparked the
biggest energy price shock since the 1970s. Inflation accelerated sharply, and
concerns grew that major central banks would need to be more aggressive in
raising rates and that a period of negative growth may be needed to tame
rising prices. China's strict zero-Covid policy further undermined sentiment
as it led to lockdowns in major cities which hit demand and added to supply
chain disruptions.
At a sector level, energy was a rare bright spot in major indexes, with share
prices surging along with oil and gas prices. Elsewhere, however, sector
returns were steeply negative. The consumer discretionary, communication
services and information technology sectors fell the most, with 'new
technology' stocks declining sharply as the prospect of higher interest rates
lessened the appeal of companies that may not generate meaningful earnings
until well into the future, e.g. Snapchat.
As inflation surged to multi-decade highs, central banks in developed markets
responded - although they were viewed as being 'behind the curve' compared to
many emerging market central banks which had already started to raise rates.
In March, the US Federal Reserve (Fed) hiked rates for the first time since
2018 and implemented two more increases in April and May, with each becoming
more aggressive. The European Central Bank (ECB) finally abandoned its dovish
stance in the second quarter, signalling it would likely raise rates by 0.25%
in July and would implement more aggressive rate rises later in the year.
China and Japan were outliers, with the former becoming more supportive,
particularly to its beleaguered property sector, while the Bank of Japan
maintained its dovish stance.
During the period, we reduced exposure to some high growth companies we felt
would struggle to deliver enough earnings growth to justify high valuations.
The team also increased exposure to some cyclical companies in the
semiconductor and hardware segments. We continue to hold our positions in high
growth companies that we believe are well-positioned to maintain steady growth
rates. As a result, the portfolio continues to have a balance of high growth
and cyclical/value stocks.
The transition to a post-Covid economy has been complicated by a sharp rise in
inflation, persistent supply chain challenges, and more hawkish central banks.
However, we continue to expect technology to be the persistent driver of
long-term economic growth.
Top Contributors and Detractors
The Allianz Technology Trust underperformed the Dow Jones World Technology
Index (sterling adjusted, total return) by 7.9 percentage points and the FTSE
All-Share Index by 26.0 percentage points during the period. The portfolio's
underperformance has been largely due to the market rotation from growth
stocks amid concerns around inflation and rising interest rates.
Our underweight position in Facebook's parent company, Meta Platforms, was a
top relative contributor. During the period, the company reported
disappointing quarterly results, and management provided muted guidance. The
company's fundamentals were negatively impacted by greater than anticipated
challenges associated with Apple's privacy changes (IDFA). Additionally, Meta
is seeing a rapid migration of users toward short-form videos where the
company faces stiff competition and lower current monetisation rates. Finally,
the company is investing aggressively in the metaverse, which is in the very
early stage of development and a long way from commercial roll out.
Our position in security software vendor, CrowdStrike, was also a top relative
contributor. The company is emerging as a leader in the next-generation
endpoint security market. Shares gained after the company reported better than
expected revenues and profits in the most recent quarter driven by strong
momentum in new client sales and growth with current customers. Management
also gave guidance that suggested strong growth and profitability would
persist for the current fiscal year. We continue to believe CrowdStrike's
best-in-class endpoint security solutions are particularly relevant in the new
distributed workforce context that many enterprises find themselves in today.
Other top active contributors included our overweight positions in Palo Alto
Networks and Box, as well as an underweight to NVIDIA.
Our position in cloud-based data storage and analytics company Snowflake was a
top relative detractor. The company reported strong quarterly financial
results with 102% year-on-year revenue growth, but this fell short of elevated
expectations. Snowflake had record bookings during the quarter and added
another fourteen Fortune 500 customers and twenty one in the Forbes Global
2000. Snowflake has built a highly advanced cloud-native architecture that
represents a major leap over traditional analytical databases that have been
in the market for decades. In our view, the company should deliver rapid
growth for several years as it benefits from the cloud transition and the
rising demand for cloud security solutions.
Our position in cloud security company Zscaler was also a top relative
detractor amid the growth software sell-off. The company reported quarterly
financial results that exceeded expectations driven by strong billings growth.
Despite the volatile market environment, we believe the company remains
well-positioned to produce very attractive long-term growth. Zscaler is a
first mover in cloud security that has essentially created a new market in the
cyber security world with an innovative product umbrella and strategic focus,
which should disrupt the competitive landscape for years to come.
Other active detractors included overweight positions in Okta and Lyft, and an
underweight to Apple.
Outlook
In our view, the technology sector continues to benefit from strong tailwinds
which should continue to drive attractive long-term appreciation. There is no
question in our minds that the Covid-19 crisis has already spurred the use of
technology and will continue to change how we live and work in the future.
Additionally, many businesses are struggling to find workers to meet customer
demand and need technology solutions to improve productivity of limited
staffs. As companies need to reduce costs and improve productivity, we expect
to see accelerating demand for innovative and more productive solutions such
as cloud, software-as-a-service, artificial intelligence, cyber security, etc.
We are in a period of rapid change, where the use of technology is key to the
prosperity of most industries. This environment is likely to provide
attractive growth opportunities in many technology stocks over the next
several years.
We continue to believe the technology sector can provide some of the best
absolute and relative return opportunities in the equity markets - especially
for bottom-up stock pickers.
Walter Price & Mike Seidenberg
8 August 2022
.
SUMMARY OF UNAUDITED RESULTS
INCOME STATEMENT
for the six months ended 30 June 2022
Total
Revenue £'000s Capital Return £'000s
(Note 1) £'000s
Losses on investments held at fair value through profit or loss - (455,025) (455,025)
Exchange gains on currency balances 43 6,039 6,082
Income 3,158 - 3,158
Investment management and performance fee (Note 2) (3,604) - (3,604)
Administration expenses (510) - (510)
(Loss) profit before finance costs and taxation (913) (448,986) (449,899)
Finance costs: Interest payable and similar charges - - -
(Loss) profit on ordinary activities before taxation (913) (448,986)
(449,899)
Taxation (393) - (393)
(Loss) profit attributable to Ordinary Shareholders (448,986)
(1,306) (450,292)
(Loss) earnings per Ordinary Share (Note 3) (0.31p) (106.81p) (107.12p)
.
BALANCE SHEET
as at 30 June 2022
£'000s
Investments held at fair value through profit or loss (Note 4) 914,379
Cash and cash equivalents 88,275
Other net current liabilities (943)
Total Net Assets 1,001,711
Called up Share Capital 10,719
Share Premium Account 334,191
Capital Redemption Reserve 1,021
Capital Reserve 689,189
Revenue Reserve (33,409)
Shareholders' Funds 1,001,711
Net Asset Value per Ordinary Share 241.5p
The net asset value is based on ordinary shares in issue of 414,774,931
Treasury shares in issue 13,981,749
.
INCOME STATEMENT
for the six months ended 30 June 2021
Total
Revenue £'000s Capital Return £'000s
(Note 1) £'000s
Gains on investments held - 89,035 89,035
at fair value through profit or loss
Exchange losses on currency balances (23) (873) (896)
Income 2,259 - 2,259
Investment management and performance fee (Note 2) (3,960) - (3,960)
Administration expenses (679) - (679)
(Loss) profit before finance costs and taxation (2,403) 88,162 85,759
Finance costs: Interest payable and similar charges - - -
(Loss) profit on ordinary activities before taxation (2,403) 88,162
85,759
Taxation (285) - (285)
(Loss) profit attributable to Ordinary Shareholders (2,688) 88,162 85,474
(Loss) earnings per Ordinary Share (Note 3) (0.63p) 20.61p 19.98p
.
BALANCE SHEET
as at 30 June 2021
£'000s
Investments held at fair value through profit or loss (Note 4) 1,305,272
Cash and cash equivalents 28,496
Other net current liabilities (2,267)
Total Net Assets 1,331,501
Called up Share Capital 10,719*
Share Premium Account 334,191*
Capital Redemption Reserve 1,021
Capital Reserve 1,015,228*
Revenue Reserve (29,658)
Shareholders' Funds 1,331,501
Net Asset Value per Ordinary Share 311.6p
The net asset value is based on ordinary shares in issue of 427,285,625
Treasury shares in issue 1,471,055
* Comparative figures have been restated (Note 8)
.
BALANCE SHEET
as at 31 December 2021
£'000s
Investments held at fair value through profit or loss (Note 4) 1,428,136
Cash and cash equivalents 45,968
Other net current liabilities (1,732)
Total Net Assets 1,472,372
Called up Share Capital 10,719
Share Premium Account 334,191
Capital Redemption Reserve 1,021
Capital Reserve 1,158,544
Revenue Reserve (32,103)
Shareholders' Funds 1,472,372
Net Asset Value per Ordinary Share 347.9p
The net asset value is based on ordinary shares in issue of 423,191,590
Treasury shares in issue 5,565,090
.
STATEMENT OF CHANGES IN EQUITY
Called up Share Premium Account Capital Redemption Reserve
Share £'000s £'000s Capital Revenue Reserve
Capital Reserve £'000s Total
£'000s £'000s £'000s
Six months ended 30 June 2022
Net assets at 1 January 2022 10,719 334,191 1,021 1,158,544 (32,103) 1,472,372
Revenue loss - - - - (1,306) (1,306)
Shares repurchased into treasury during the period (Note 5)
- - - (20,369) - (20,369)
Capital loss - - - (448,986) - (448,986)
Net assets at 30 June 2022 10,719 334,191 1,021 689,189 (33,409) 1,001,711
Six months ended 30 June 2021
Net assets at 1 January 2021 10,549 313,360 1,021 931,227 (26,970) 1,229,187
Revenue loss - - - - (2,688) (2,688)
Shares issued from block listing facility during the period (Note 5)
170 20,831 - - - 21,001
Shares repurchased into treasury during the period (Note 5) - - - (4,161) - (4,161)*
Capital profit - - - 88,162 - 88,162
Net assets at 30 June 2021 10,719* 334,191* 1,021 1,015,228* (29,658) 1,331,501
*Comparative figures have been restated (Note 8)
.
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
Note 1 - Summary Statement of Accounting Policies and Basis of Preparation
The condensed set of financial statements have been prepared in accordance
with FRS 102 'Interim Financial Reporting' (FRS 104) issued by the FRC in
March 2015 and 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 April 2021.
The accounting policies applied for the condensed set of financial statements
with regard to measurement and classification have not changed from those set
out on the Company's annual report for the year ended 31 December 2021.
The total column of the Income Statement is the profit and loss account of the
Company. All revenue and capital items derive from continuing operations. No
operations were acquired or discontinued in the period. A Statement of Total
Recognised Gains and Losses is not required as all gains and losses of the
Company have been reflected in the Income Statement.
Note 2 - Management
Allianz Global Investors GmbH, UK Branch was the appointed Investment Manager
up to 25 July 2022. Effective from 25 July 2022, AllianzGI entered into a
strategic partnership with Voya Investment Management (Voya). AllianzGI will
continue its role as Alternative Investment Fund Manager, providing company
secretarial, administrative and sales and marketing services and Portfolio
Management services will be provided by Voya. The aggregate fees paid by the
Company to AllianzGI and Voya do not change. The management agreement provides
for a base fee of 0.8% per annum payable quarterly in arrears and calculated
on the average value of the market capitalisation of the Company at the last
business day of each month in the relevant quarter. The base fee reduces to
0.6% for any market capitalisation between £400m and £1 billion, and 0.5%
for any market capitalisation over £1 billion. Additionally there is a fixed
fee of £55,000 per annum.
In each year, in accordance with the management contract, the Investment
Manager is entitled to a performance fee subject to various performance
conditions. For years beginning on or after 1 January 2022, the performance
fee entitlement is equal to 10.0% (1 December 2013 to 31 December 2021: 12.5%)
of the outperformance of the adjusted NAV per share total return as compared
to the benchmark index, the Dow Jones World Technology Index (sterling
adjusted, total return). Any underperformance brought forward from previous
years is taken into account in the calculation of the performance fee.
A performance fee is only payable where the NAV per share at the end of the
relevant Performance Period is greater than the NAV per share at the end of
the financial year in which a performance fee was last paid. At 31 December
2021 this 'high water mark' (HWM) was 297.2p per share. In the event the HWM
is not reached in any year, any outperformance shall instead be carried
forward to future periods to be applied as detailed below. Any performance fee
payable is capped at 1.75% of the average daily NAV of the Company over the
period (2020: 2.25% of year-end NAV). For this purpose, the NAV is calculated
after deduction of the associated performance fee payable.
Any outperformance in excess of the cap (or where the HWM has not been met)
shall be carried forward to future years to be available for offset against
future underperformance but not to generate a performance fee. To the extent
the Company has underperformed the benchmark, such underperformance is carried
forward and must be offset by future outperformance before a performance fee
can be paid. Underperformance/outperformance amounts carried forward do so
indefinitely until offset.
The performance fee accrued for as at 30 June 2022 was £nil (30 June 2021:
£nil; 31 December 2021: £nil).
The Investment Manager's fee is charged 100% to Revenue and the performance
fee is charged 100% to Capital.
Note 3 - Earnings per Ordinary Share
The earnings per Ordinary share is based on the net loss for the half year of
£450,292,000 (30 June 2021: net profit of £85,474,000, 31 December 2021: net
profit of £238,956,000) and on the weighted average number of Ordinary shares
in issue during the period of 420,370,209 (30 June 2021: 427,710,854, 31
December 2021: 426,291,035).
Note 4 - Valuation of Investments
Investments are designated as held at fair value through profit or loss in
accordance with FRS 102 sections 11 and 12. Investments are initially
recognised at Fair Value, which is determined to be their cost. Subsequently,
investments are revalued at Fair Value, which is the bid market price for
listed investments.
FRS 102 sets out three fair value hierarchy levels for disclosure.
Level 1: The unadjusted quoted price in an active market for identical assets
or liabilities that the entity can access at the measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are
observable (i.e. developed using market data) for the asset or liability,
either directly or indirectly.
Level 3: Inputs are unobservable (i.e. for which market data is unavailable)
for the asset or liability.
As at 30 June 2022, the financial assets at fair value through profit or loss
of £914,379,000 (31 December 2021:
£1,428,136,000) are categorised as follows:
As at As at
30 June 31 December 2021
2022
£'000s £'000s
Level 1 914,379 1,428,136
Level 2 - -
Level 3 - -
914,379 1,428,136
Note 5 - Called up Share Capital
At 30 June 2022 there were 414,774,931 Ordinary shares in issue (30 June 2021:
427,285,625; 31 December 2021: 423,191,590). During the half-year ended 30th
June 2022 the Company repurchased 8,416,659 Ordinary shares into treasury
(half-year ended 30 June 2021: 1,471,055; and year ended 31 December 2021:
5,565,090). During the same period the Company issued nil shares into the
market from the Ordinary shares held in treasury, (half-year ended 30 June
2021: nil shares; year ended 31 December 2021: nil shares). The Company issued
a further nil Ordinary shares, from the authorised block listing facility,
during the period (half-year ended 30 June 2021: 6,800,000; and year ended 31
December 2021: 6,800,000). The proceeds from the total number of Ordinary
shares issued amounted to nil (half-year ended 30 June 2021: £21,001,000; and
year ended 31 December 2021: £21,001,000).
Since the period end a further 2,006,383 Ordinary shares have been repurchased
into treasury.
Note 6 - Investments
Purchases for the half-year ended 30 June 2022 were £433,944,000 (30 June
2021: £524,186,000) and sales were £492,676,000 (30 June 2021:
£523,493,000).
Note 7 - Transaction Costs
Brokers commission costs on equity purchases for the half-year ended 30 June
2022 amounted to £104,000 (30 June 2021: £83,000) and on sales amountedto
£134,000 (30 June 2021: £85,000).
Note 8 - Restatement of 2021 Comparative Information
Shares repurchased into treasury are presented in the Capital Reserve in the
Statement of Changes in Equity with comparatives restated. In 2021 the nominal
amount paid/payable was disclosed in Called up Share Capital (£37,000) and
the amount in excess of this was disclosed in the Share Premium Account
(£4,124,000). The change in presentation has no impact on the net assets.
Share Capital has increased from £10,682,000 to £10,719,000, the Share
Premium Account has increased from £330,067,000 to £334,191,000 and Capital
Reserves decreased from £1,019,389,000 to £1,015,228,000.
Note 9 - Comparative Information
The half yearly financial report to 30 June 2022 and the comparative
information to 30 June 2021 have neither been audited nor reviewed by the
Company's auditors and do not constitute statutory accounts as defined in
section 434 of the Companies Act 2006 for the respective periods. The
financial information for the year ended 31 December 2021 has been extracted
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditor's report on those financial statements was
unqualified and did not contain a statement under Section 498 (2) or (3) of
the Companies Act 2006.
.
INVESTMENT PORTFOLIO
As at 30 June 2022
Investment Sector(#) Sub sector(#) Country Valuation % of Portfolio
£'000s
Microsoft Software Systems Software United States 62,713 6.8
Apple Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 62,131 6.8
Alphabet Interactive Media & Services Interactive Media & Services United States 57,118 6.2
Tesla Automobiles Automobile Manufacturers United States 42,852 4.7
ON Semiconductor Semiconductors & Semiconductor Equipment Semiconductors United States 37,242 4.1
Broadcom Semiconductors & Semiconductor Equipment Semiconductors United States 35,936 3.9
CrowdStrike Software Systems Software United States 34,988 3.8
Taiwan Semiconductor Manufacturing ADR Semiconductors & Semiconductor Equipment Semiconductors Taiwan 34,515 3.8
Palo Alto Networks Software Systems Software United States 33,434 3.7
Micron Technology Semiconductors & Semiconductor Equipment Semiconductors United States 29,861 3.3
Top ten investments 430,790 47.1
Seagate Technology Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals Ireland 29,824 3.3
Infineon Technologies Semiconductors & Semiconductor Equipment Semiconductors Germany 28,635 3.1
Aspen Technology Software Application Software United States 26,371 2.9
Box Software Application Software United States 25,638 2.8
Datadog Software Application Software United States 24,957 2.7
Zscaler Software Systems Software United States 24,559 2.7
SK Hynix Semiconductors & Semiconductor Equipment Semiconductors South Korea 21,062 2.3
Paycom Software Software Application Software United States 19,087 2.1
MongoDB IT Services Internet Services & Infrastructure United States 17,977 2.0
Oracle Software Systems Software United States 17,038 1.9
Top Twenty Investments 665,938 72.9
NVIDIA Semiconductors & Semiconductor Equipment Semiconductors United States 16,550 1.8
KnowBe4 Software Systems Software United States 16,518 1.8
Mastercard IT Services Data Processing & Outsourced Services United States 16,110 1.8
Booking Hotels, Restaurants & Leisure Hotels, Resorts & Cruise Lines United States 15,006 1.6
Nortonlifelock Software Systems Software United States 14,172 1.5
Arista Networks Communications Equipment Communications Equipment United States 13,263 1.5
STMicroelectronics Semiconductors & Semiconductor Equipment Semiconductors Netherlands 12,419 1.4
Okta IT Services Internet Services & Infrastructure United States 12,249 1.3
Adyen IT Services Data Processing & Outsourced Services Netherlands 10,724 1.2
Applied Materials Semiconductors & Semiconductor Equipment Semiconductor Equipment United States 10,567 1.1
Top Thirty Investments 803,516 87.9
Computacenter IT Services IT Consulting & Other Services United Kingdom 9,638 1.1
Lyft Road & Rail Trucking United States 9,418 1.0
Flex Electronic Equipment Instruments & Components Electronic Manufacturing Services Singapore 9,003 1.0
Uber Technologies Road & Rail Trucking United States 8,603 0.9
Take-Two Interactive Software Entertainment Interactive Home Entertainment United States 6,431 0.7
F5 Communications Equipment Communications Equipment United States 6,155 0.7
Marvell Technology Semiconductors & Semiconductor Equipment Semiconductors United States 6,025 0.7
Samsung Electronics Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals South Korea 6,002 0.7
ZoomInfo Technologies Interactive Media & Services Interactive Media & Services United States 5,973 0.7
Altair Engineering Software Application Software United States 5,846 0.5
Top Forty Investments 876,610 95.9
Snowflake IT Services Internet Services & Infrastructure United States 5,531 0.6
ASML Semiconductors & Semiconductor Equipment Semiconductor Equipment Netherlands 5,335 0.6
Automatic Data Processing IT Services Data Processing & Outsourced Services United States 5,321 0.6
Smartsheet Software Application Software United States 5,141 0.6
Workday Software Application Software United States 4,649 0.5
Block IT Services Data Processing & Outsourced Services United States 4,310 0.5
Advanced Micro Devices Semiconductors & Semiconductor Equipment Semiconductors United States 3,908 0.4
Cognex Electronic Equipment Instruments & Components Electronic Equipment & Instruments United States 3,574 0.3
Total Investments 914,379 100.0
#GICS Industry classifications
.
PORTFOLIO ANALYSIS
As at 30 June 2022
By Sector(#) % of Portfolio By Country % of Portfolio
Software 34.5 United States 81.7
Semiconductors & Semiconductor Equipment 26.5 Taiwan 3.8
Technology, Hardware Storage & Peripherals 10.7 Ireland 3.3
IT Services 9.0 Germany 3.1
Interactive Media & Services 6.9 Netherlands 3.1
Automobiles 4.7 South Korea 3.0
Communications Equipment 2.1 United Kingdom 1.1
Road & Rail 2.0 Singapore 1.0
Hotels, Restaurants & Leisure 1.6
Electronic Equipment Instruments & Components 1.4
Entertainment 0.7
Total Portfolio 100.0 Total Portfolio 100.0
(#) GICS Industry Classifications
As cash is excluded and the weightings for each sector are rounded to the
nearest tenth of a percent, the aggregate weights may not
equal 100%.
For further information, please contact:
Kelly Nice Stephanie Carbonneil
Company Secretary Head of Investment Trusts
Allianz Technology Trust PLC Allianz Global Investors GmbH, UK Branch
Tel: 020 3246 7475 Tel: 020 3246 7256
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