For immediate
release
12 March 2024
ALLIANZ TECHNOLOGY TRUST PLC
LEI: 549300OMDPMJU23SSH75
FINAL RESULTS FOR THE YEAR ENDED 31
DECEMBER 2023
The following comprises extracts
from the Company's Annual Financial Report ('AFR') for the period
ended 31 December 2023. The full AFR is available to be viewed on
or downloaded from the Company's website at
www.allianztechnologytrust.com. Copies will be posted to
shareholders shortly.
For further information
contact:
Tim
Scholefield Stephanie
Carbonneil
Kelly Nice
Chairman
Head of Investment
Trusts Company
Secretary
Telephone:
020 3246
7475 020 3246
7539
020 3246 7475
MANAGEMENT REPORT
Highlights:
· Strong
absolute performance - Net Asset Value per share ('NAV') increased
by 46.4%. The Company slightly underperformed its benchmark - by
1.8% - due to its underweight position in mega-cap stocks which led
sector gains. Share price increased by 44.5%.
· Good
portfolio liquidity, the Company has no gearing of its own and no
private equity or unquoted holdings.
· The
Board has full confidence in the Investment Manager's
differentiated strategy of focusing on mid- and large-cap stocks
and in the technology sector as a source of longer-term superior
returns.
· Performance driven by exposure to AI, cyber-security and other
secular growth areas in technology.
Chairman's Statement
Welcome
Welcome to this report on Allianz
Technology Trust PLC for the financial year ending 31 December
2023. 2023 was certainly another tumultuous year in terms of the
geopolitical and economic backdrop. I am pleased to report that the
Company once again won the Investment Week Investment Company of
the Year Award in the 'Specialist' category, having previously done
so from 2017 to 2021 inclusive. The award is based around our
performance over 3 years, as well as other qualitative
factors.
Performance
Technology stocks performed strongly
in 2023 buoyed by a combination of optimism over the sector's
growth potential together with an increasing confidence that the
peak in interest rates had finally been reached. Against this
backdrop, it is a pleasure to also be able to report a strong
absolute Net Asset Value ('NAV') Total Return of 46.4% for Allianz
Technology Trust PLC and a share price return of 44.5%. The NAV
return was slightly behind the 48.2% return of our benchmark, the
Dow Jones World Technology Index (sterling adjusted, total return).
This modest underperformance reflected our relatively smaller
exposure to the very largest group of companies, the so-called
'mega-caps'. Our portfolio manager focuses on the mid- and
large-cap segments reflecting our belief that companies at an
earlier stage of their development provide better opportunities for
long-term earnings growth.
No dividend is proposed in the year
ended 31 December 2023 (2022: nil). Given the nature of the
Company's investments and its stated objective to achieve long-term
capital growth, the Board continues to consider it unlikely that
any dividend will be declared in the near future.
Backdrop
The direction of global stock
markets continued to be determined primarily by the course of
inflation. Central banks have navigated a difficult path since
inflation took off from historic lows, balancing the taming of
rising prices with the desire to avoid recession and it wasn't
until toward the end of the year that definitive signs that
inflation had peaked became apparent. Those signs were received
well though and markets demonstrated renewed optimism in
anticipation of easing of interest rates.
There was little economic growth to
speak about around the world. Indeed, China which finally emerged
from Covid restrictions achieved a lacklustre recovery. Geopolitics
continued to astound and confound humanity. In February Ukraine
passed its first anniversary of the Russian invasion and subsequent
war and in October the Middle East was thrust into the limelight
when Hamas terrorists launched a sudden attack in Israel with
shocking civilian loss of life. Israel responded and an intense
conflict has since raged throughout Gaza with a further terrible
loss of life. As I write, in the Red Sea Houthi rebels are
attacking commercial shipping. The disruption from this latest
episode will have an impact on costs of shipped goods and is
therefore a potential threat to inflation remaining on course to
meet central bank targets. US/China and China/Taiwan tensions also
remained present and of concern in 2023.
Despite the backdrop noted above,
technology continued to excite and inspire. An obvious connected
theme to the geopolitical storm is cybersecurity. As nation states,
terrorist organisations and criminals have stepped up digital
attacks, cybersecurity has become more and more important to
maintaining the smooth functioning of companies, infrastructure and
society. Of course, artificial intelligence ('AI') was the story of
the year, raising appetites for technology once more, sending many
technology stocks higher, notably Nvidia, a so-called
'picks-and-shovels' company as it provides the chips necessary to
power cutting-edge AI applications.
Our portfolio manager is
occasionally questioned as to whether the portfolio may be too US
centric. The US weighting is certainly high at around 87% as at the
end of December. The reality is that the US listed companies
continue to dominate tech, a reflection of the depth of US
intellectual and financial capital, together with a supportive
listed market structure, although it should be kept in mind that
many of our portfolio companies generate revenues all around the
globe and just happen to be listed in the US.
Whilst China has been a source of
tech growth in past years the path has not been smooth. Our
portfolio manager was an early investor in the China tech story,
however he also exited relatively early and for some years now has
preferred not to invest there, being primarily concerned about the
possibility of state interference in the activity of listed
companies.
Discount
The Company traded at an average
discount of 12.1% over the period (low of 8.7% and high of 15.7%)
despite the positive absolute performance noted. In my view this
reflects the interest rate uncertainty apparent for much of the
year together with sentiment towards investment trusts in general.
That latter point is evidenced by the average discount for
investment trusts reaching levels not seen since the global
financial crisis in 2008.
Our policy in respect of buying back
shares remains unchanged. Currently we would consider buying back
shares during periods where the discount is consistently over 7%
and it is felt appropriate to do so given the prevailing market
backdrop. In the financial year we bought back an aggregate
16,530,708 shares at an average discount of 12.1% and total cost of
£40.2m. Since the end of the financial year, up to 12 March 2024 we
have repurchased a further 3,271,401 shares at an average discount
of 11.9% and total cost of £10.6m. All shares repurchased have been
held in treasury rather than cancelled as this makes them readily
available to be reissued if sufficient demand occurs in the
future.
At the forthcoming AGM, the Board
proposes both a renewal of the usual 10% authority to issue new
shares and also a renewal of the authority to issue an additional
10% in order to avoid the cost of a further General Meeting should
the 10% authority be exhausted as has happened previously when
demand was high. The Board will also once again seek authority to
buy back up to 14.99% of the shares in issue. The Board recommends
that shareholders vote in favour of these resolutions.
Any new shares will only be issued
at a premium to NAV and if the Board is satisfied that the issuance
is in the best interests of existing shareholders. Similarly, any
buy back of shares will only take place where we believe it to be
beneficial to shareholders.
AI (and the debates stemming
from it)
As previously commented, excitement
around AI dominated the tech sector in 2023. Whilst AI itself is
not new, advances in generative AI in 2023 pushed it further into
our consciousness than ever before. Whilst the main effect of this
was to generate excitement - the same excitement that aided the
performance of technology indices generally and a few companies
specifically - it also raised some fear and trepidation.
AI is a rapidly moving frontier in
many ways and will necessarily bring risk as well as opportunity as
it develops and is implemented. On the one hand AI should have
significant benefits to society, removing menial tasks from many
roles and advancing the pace of new medical developments to name
but two. On the flip side, there are concerns it might negatively
affect humanity, for example via its impact on low-skill labour
markets, particularly for certain sectors where AI, robotics and
automation can readily replace human labour. It is also potentially
subject to misuse and utilisation for negative and even criminal
activity.
The Board is cognisant of such
potential issues. We are keeping a watching brief and remain
focused on the potential risk to the Company's portfolio and
operations. For example, we dedicated part of our 2023 strategy
meeting to a discussion around AI-related risks and opportunities.
Amongst other aspects, we discussed types of risk, how governments
and authorities might respond, the trajectory of AI algorithm
development and how we should best identify risks and opportunities
as a Company going forward.
ESG
As you will be aware, the portfolio
manager considers ESG as part of the stock analysis and investment
management process. The Board remains cognisant of investors'
concerns and desire to understand better the broader impact of the
investment choices that they make. The Board engages closely with
Voya as the Investment Manager and AllianzGI UK as the AIFM on ESG
policies and processes and further information can be found on
pages 20 to 23 of the Annual Report.
Portfolio
management
I am pleased to report that Erik
Swords has been appointed as Portfolio Manager alongside Mike
Seidenberg, who will remain Lead Portfolio Manager, with effect
from 1 March 2024. Erik is a managing director and Head of Global
Technology at Voya and has 23 years of investment industry
expertise. He already works closely with Mike in the San Francisco
office.
The costs of running your
Company
Your Board has maintained its close
attention to the costs of running the Company. The Company's
Ongoing Charges Figure ('OCF'), which is calculated by dividing
ongoing operating expenses by the average NAV, has remained the
same as 2022 at 0.70%.
The OCF excludes any performance fee
due to the Investment Manager. No performance fee has been earned
in 2023. It should be noted that the underperformance recorded over
the past three years will have to be made back, and the NAV will
need to exceed the figure as at the end of 2020 (which set a new
high watermark) before any future performance fee can be
accrued.
Board
matters
Although I reported to shareholders
as Chairman in the 2023 interim report, this is my first Annual
Financial Report in this role. I would therefore like to reiterate
my thanks to my predecessor, Robert Jeens, for his leadership of
the Company over his tenure and for his help and support as I took
on the role of Chairman. I hope that this next period in the
Company's history can prove as positive in respect of growth as the
past one.
At the conclusion of the 2024 AGM,
Humphrey Van der Klugt will step down from the Board, having served
since 2015. We thank Humphrey for his significant contribution to
the Company's development over the past nine years and his part in
its significant growth over that time.
Elisabeth Scott has served on the
Board for nine years as at 1 February 2024 and to allow for orderly
succession planning she will retire at the AGM in 2025.
As previously announced, with effect
from 29 November 2023 Neeta Patel was appointed as Chairman of the
Management Engagement Committee replacing me. Neeta will also
become Senior Independent Director when Humphrey steps down. Katya
Thomson will be appointed as Chairman of the Remuneration Committee
at the conclusion of the 2024 AGM.
Although just outside of the
reporting period, as previously announced, Simon (Sam) Davis was
appointed a non-executive Director on 1 January 2024 and has also
joined the Audit and Risk, Management Engagement, Remuneration and
Nomination Committees. Sam is a non-executive director of The
Baillie Gifford Japan Trust PLC. Sam brings a wealth of investment
experience across global markets, and we are therefore delighted
that he is joining the Board and we look forward to working with
him.
Annual General Meeting
('AGM') arrangements
This year's AGM will be held on 24
April 2024 at 2.30pm. The full Notice of Meeting can be found on
page 75 of the Annual Report. Full details of the special business
to be considered at the AGM can be found on pages 31 to 33 of the
Annual Report.
As with 2023, the AGM will be a
hybrid meeting, meaning shareholders can either attend physically
or online. We will not be providing online voting for the 2024
meeting. This is due to the relatively high cost to enable the
service not having been matched by shareholder take up of the
service over the past two years. Should there be reasonable demand
emerging from shareholders in the future for online voting then we
will look at a possible reintroduction. For this reason, we
strongly encourage all shareholders to submit their votes using the
proxy voting process by the deadline of 22 April 2024 as detailed
in the Notice of Meeting on page 75 of the Annual Report. 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 portfolio manager
will be made at the start of the meeting. For those unable to
attend either physically or virtually, a recording of the AGM will
be posted to the Company's website as soon as practicable after the
event.
The Board looks forward to welcoming
shareholders to this year's event.
Outlook
It is relatively difficult to make
predictions for the year ahead in such an uncertain world. However,
most indicators are suggesting a pivot in interest rates could well
be on the cards which would certainly be positive for growth
stocks, including many technology stocks. Even if this does not
provide a tailwind, it should at least remove a headwind as the
discount rate used to value future cashflows of companies reduces.
With valuations of many technology companies having come back to
more reasonable levels since the end of 2020, this could allow some
further recovery in the sector.
Geopolitics remain a source of
uncertainty. Whilst the fortunes of individual companies are often
insulated from the direct impacts of world events, heightened
uncertainty will impact on sentiment in general and affect factors
such as consumer confidence. Certain companies could find
themselves more directly affected by geopolitics depending on their
location, but this is something our portfolio manager monitors
closely as part of the portfolio management process. It will
certainly be an interesting year in terms of the political arena,
with elections in the US and almost certainly the UK.
We are not out of the woods in terms
of fears around falling into recession, however the hope is that
central banks have done their job well enough and we will instead
see a 'soft-landing' - that is, a decline in inflation without a
significant set back in economic growth.
What is in no doubt is that
technology will continue to dominate our lives and re-shape the
future. Such a 'new frontier' remains an extremely exciting place
to invest, though of course also brings risks for investors. On
your behalf, the Board in conjunction with the Investment Manager
will remain focussed on providing a portfolio that we believe will
capture the exciting growth available from investing in
technology.
Tim Scholefield
Chairman
12 March 2024
Portfolio Manager's
Report
2023 started on a cautious note.
Although inflation had started to fall, it was not yet beaten. The
impact of rising interest rates was beginning to be felt in the
real economy, and there were concerns about how high rates may need
to rise. A winter energy crisis had been averted, but a 'hard
landing' still appeared a plausible scenario for the world
economy.
There were glimmers of hope. Some of
the supply chain bottlenecks that had contributed to inflationary
pressures were starting to unwind. Freight prices had started to
drop and the pandemic-related backlogs started to ease. There was
also the prospect of a stronger performance from China as the
country relaxed its strict quarantine restrictions.
However, the fragility of the
economic environment was exposed by the collapse of Silicon Valley
Bank in March. Its weakness was attributed to losses on its bond
portfolio. It had significant exposure to startups and
venture-backed firms, but the US regulator stepped in swiftly to
protect deposit holders. The crisis threatened to destabilise the
world's banking system, with Europe's Credit Suisse also proving
vulnerable. A forced merger with UBS appeared to put an end to the
crisis, but it left investors wary of other bear-traps in the
financial system.
In the meantime, attention continued
to be minutely focused on inflation and when the Federal Reserve's
rate rising cycle might draw to a close. Rate rises continued in
the first half of the year, albeit at a slower pace. The problem
for policymakers was that while headline rates of inflation
decelerated sharply over the year, core inflation proved
stickier.
Ultimately, however, the US Federal
Reserve paused its tightening cycle in July, even though it
continued to talk tough on inflation. US Federal Reserve chair
Jerome Powell insisted they would stay the course until the
inflation battle had been won. At his Jackson Hole speech in
August, he said: "We are prepared to raise rates further if
appropriate, and intend to hold policy at a restrictive level until
we are confident that inflation is moving sustainably down toward
our objective."
Towards the end of the year,
speculation mounted that US interest rates may soon be lowered as
inflation continued to drop, and by December, the US Federal
Reserve had pivoted to forecasting 0.75% points of interest rate
cuts in 2024. Fears of a US recession appeared to be overblown and
hopes grew of a Goldilocks outcome for the US economy (with growth
neither too hot nor too cold). US GDP growth continued to be
strong, rising 5.2% in the third quarter fuelled by a strong
consumer.
Elsewhere, growth was mixed.
Economic activity in Europe remained anaemic at best. However, the
European Central Bank and Bank of England continued to insist that
the battle against inflation was far from over. Their hawkishness
versus the US Federal Reserve saw the euro and British pound
strengthen against the US dollar. The Japanese yen weakened against
all three currencies, in spite of a revival of economic growth and
inflation in Japan as the country's central bank continued its
loose monetary policy. China's economic rebound from pandemic
restrictions disappointed, with the health of its property sector a
major concern.
Fears of inflation briefly revived
in the summer, after oil prices rallied in response to
oil-producing countries agreeing to cut output. Nevertheless, Brent
crude closed the year slightly lower at just under US$80 a barrel.
Overall oil prices fell around 10% over 2023, marking the first
annual decline since 2020. 2023 ended with inflation pressures
easing, with interest rate cuts on the horizon and with economic
growth holding up. It proved a far better outcome than many had
anticipated at the start of the year.
Stock
markets
Global stock markets made progress
in 2023, with the MSCI World Index up 17.2% over the period.
However, it was a rocky ride and for much of the year, market
leadership was held by a narrow range of artificial
intelligence-related companies. These 'Magnificent Seven' - Amazon,
Alphabet, Apple, Meta Platforms, Microsoft, NVIDIA and Tesla -
benefited from growing excitement in the potential for AI and its
applications, following the launch of generative AI programme Chat
GPT.
These stocks drove global indices
higher, but many areas did not participate in the rally. While
companies in the information technology, communication services,
consumer discretionary and industrials sectors turned in a
creditable performance, defensive stocks in the consumer staples,
utilities and health care sectors barely rose, while energy stocks
were held back by weakening oil and gas prices. With economic
growth uncertain, investors retreated to those companies with
reliable earnings, even if they had to pay a little more for
them.
Stock market performance was still
highly dependent on interest rate expectations. There were two
notable setbacks over the year: the first was prompted by March's
banking crisis, but this was swiftly resolved after regulatory
intervention; the second came in October after higher oil prices
prompted a brief spike in inflation, driving fears that rates would
need to stay higher for longer.
This narrow market leadership
widened out in the final months of the year, as investors started
to anticipate rate cuts in the year ahead. November and December
saw a significant, broad-based rally. November was the strongest
month for markets in three years and supportive statements from the
US Federal Reserve ensured the rally continued to the end of the
year. Overall, the MSCI World Index recorded its strongest year
since 2019.
Key themes
Interest rates and inflation
Just as they did in 2022, 2023 was a
year when investors watched the US Federal Reserve. Once again, the
fortunes of individual companies appeared to matter less than the
latest comments from central banks as investors tried to judge
whether central banks would be able to tame inflation without
collapsing the economy.
Ultimately, however, markets are now
reassured that the US Federal Reserve has managed to engineer a
'soft landing'. The much-anticipated US recession remains a
possibility in the year ahead, but most market participants now
believe it is likely to be short-lived and shallow if it
materialises at all. Rates cuts could come as early as March in the
US and would be welcomed by markets.
Geopolitics
The fragile geopolitical landscape
continued in 2023. The war in Ukraine was ongoing, with little
progress on either side. World powers continued to pick sides,
which saw some redrawing of trading relationships. Those countries
that could remain neutral, such as Vietnam or parts of Latin
America, saw their economies benefit.
There was new fragility in the
Middle East after the unprecedented terrorist attacks by Hamas on
Israel on 7 October, and Israel's subsequent military response
which has seen ongoing conflict in Gaza with huge loss of
life.
There was some easing of US/China
relations, with Presidents Xi and Biden meeting in November.
Nevertheless, a return to the unfettered trading relationship of
recent history appeared improbable.
Artificial
Intelligence
The launch of Chat GPT and its rapid
adoption showed the potential for artificial intelligence - and
some of its risks. It holds the potential to drive productivity
gains for companies at a time when productivity has stagnated in
many Western economies. In a report in April, Goldman Sachs said
generative AI could raise global GDP by 7% - equivalent to almost
$7 trillion.
Forward-thinking corporations are
already looking at how AI could improve their business and 2024 may
be when these plans start to come to fruition. Companies are
investing significant amounts in AI. Microsoft, Google and Amazon
have done a number of blockbuster deals with AI start-ups in 2023.
This accounted for two-thirds of the US$27bn raised by fledgling AI
companies in 2023, according to data from private market
researchers PitchBook.
Performance
The Company's net assets rose 46.4%
for the year to 31 December 2023. This was marginally behind its
benchmark, the Dow Jones World Technology Index (sterling adjusted,
total return), which rose 48.2%. The strength of the 'Magnificent
Seven' and their dominance in the index made it difficult to beat.
We continued to hold below index weights in these stocks to avoid
concentration risk in the portfolio.
The broad-based rally at the end of
the year was more favourable for the Company, with market attention
returning to some of our higher growth, mid cap companies. This has
tended to be a more fertile spot to find opportunities, where a
focus on bottom-up fundamentals and industry expertise can provide
an edge versus the market. The third quarter earnings season had
confirmed the strength of earnings momentum in a number of our
holdings, particularly those focused on cloud computing. We took
bolder positions in these areas, which helped us participate in the
rally in full.
Weakness tended to come in
idiosyncratic areas, rather than from any major themes. For
example, Pay.com was a notable detractor, hit by concerns over the
outlook for the jobs market and some operational issues that saw it
miss on earnings. Okta was also weak, impacted by execution
challenges.
It was a mixed year for the
semiconductor sector. It was important to differentiate between
'leading and lagging' semiconductor groups. While Nvidia soared on
the back of demand for its AI-focused chips, it was a tougher year
for generic semiconductors and those exposed to auto-related
sectors. The Company moved away from auto-related semiconductors in
the first half of the year, and benefited from not holding generic
semiconductor groups such as Texas Instruments. Nvidia was a major
holding from February onwards.
Geopolitical tensions continued to
support demand for cybersecurity companies during the year,
particularly at the end of 2023 when software and IT services
outperformed other areas. Artificial intelligence also drove
demand, with more data requiring greater protection. Cyber attacks
continued with a major Chinese espionage campaign infiltrating the
US government. A new SEC ruling requiring disclosure of events
within four days also impacted demand for cybersecurity solutions.
Overall spending on cybersecurity continues to grow faster than
other major technology segments.
The Company also benefited from the
areas it didn't hold. For example, for most of the year it did not
hold anything in China. The weakness of Chinese markets was a
dominant feature of the year and this helped
performance.
Stock
highlights
The performance of the Magnificent
Seven was the key highlight for equity markets overall. Five of the
Magnificent Seven (Apple, Alphabet, Meta Platforms, Microsoft and
Nvidia) are held in both the Company and in the benchmark,
generally at a lower concentration than the Company's benchmark
index. The exception was Meta, where the Company held a near-double
benchmark weight (at 6.3%). This provided the strongest
contribution to returns over the year. Having previously exited our
historic position, we bought back the stock at the end of 2022 on
the back of expectations that its cost-cutting initiatives, lower
valuation level and secular growth would drive shares higher. Over
the year, an improving competitive position and new product
development helped push it higher. The Company also held Amazon.com
and Tesla, the two remaining Magnificent Seven stocks, which are
not part of the benchmark and were additive to
performance.
MongoDB was another notable
performer over the year. The database software company posted
consecutive quarters of strong earnings, ahead of market
expectations. Earnings were fuelled by a faster recovery in
consumption trends for the business, driven by the growth of
generative AI.
China was a particular weak spot
over the year, as international investors withdrew from the market.
We have been wary of the Chinese market for some time, believing
government interference threatens shareholder returns. Not holding
Tencent Holdings and to a lesser extent Alibaba contributed to
overall performance versus the benchmark during the
year.
The one Chinese stock we owned was
JD.com, holding it briefly between January and February. It is an
online direct sales company offering a wide range of products
through its website and mobile applications. We thought it may be a
beneficiary of China's reopening trade. As it was, the Chinese
consumer failed to revive and we sold it quickly. Although it
detracted from overall performance, it proved a prudent sale, with
the share price tumbling after we exited.
Identity management group Okta was a
weak spot. It had a number of operational problems: it had
over-hired, leaving sales territories cut too small for sales reps
to meet their numbers. The company also struggled from increased
competition, while a large number of cyber attacks weighed on its
credibility. Paycom Software was also a performance detractor,
having suffered a series of disappointing earnings reports. As a
designer and developer of software solutions to manage the
employment life cycle, it was hit by concerns about the jobs
outlook and a moderation in economic growth.
The Company's cash weighting was
lower than last year - at around 2% on average. This detracted from
returns given the strength of markets, particularly at the start of
the year. Nevertheless, it allowed us to retain optionality in the
portfolio during periods of uncertainty.
Looking
forward
At the start of 2023, valuations
were compelling. After a significant market improvement - along
with higher earnings - technology companies appear to be trading at
around fair value today. That said, there are some tailwinds for
the year ahead and we believe the equity market recovery over the
past few months can extend into 2024.
At the December 2023 Federal Open
Market Committee meeting, the US Federal Reserve signalled multiple
rate cuts could come in 2024. Inflation continues to weaken and,
while the jobs market remains buoyant, growth is moderating. With
interest rate cuts on the horizon and an economic soft landing
expected, investors are likely to be confident enough to look
beyond the mega-caps into other parts of the market. Broader
earnings growth may accelerate this trend.
There are going to be bumps along
the way and the market might be due for a short-term pause after
its recent strength, but there are reasons to be optimistic about
the long-term secular growth prospects for technology. These
include artificial intelligence and machine learning, the Internet
of Things, cyber security, digital assets and mobility. The
macroeconomic challenges of the past few years are likely to ease,
which should give investors greater confidence.
The challenges of the past few years
have forced companies to look at their cost structures, re-engineer
their businesses and cut unprofitable lines. The result is that the
survivors are far stronger, with better competitive positions and
stronger earnings. We continue to believe the technology sector can
provide some of the best absolute and relative return opportunities
in the equity markets.
Mike Seidenberg
Lead Portfolio Manager
Voya Investment Management Co
LLC
12 March 2024
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 & Emerging Risks and
Uncertainties
The principal risks identified by
the Board are set out in the table below, 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 Company's NAV may be adversely
affected by the Investment Manager's inappropriate allocation of
funds to particular sub-sectors of the technology market and/or to
the selection of individual stocks that fail to perform
satisfactorily, leading to poor investment performance in absolute
terms and/or against the benchmark.
|
The Board has established a schedule
of investment controls which is monitored monthly and reviewed at
each Board meeting. The Investment Manager has responsibility for
sectoral weighting and for individual stock picking, having taken
due account of Investment Objectives and Controls that are agreed
with the Board from time to time and regularly reviewed. These
seek, inter alia, to ensure that the portfolio is diversified and
that its risk profile is appropriate.
|
Technology
sector risk
The technology sector is
characterised by rapid change. New and disruptive technologies,
including AI, can place competitive pressures on established
companies and business models, and technology stocks may experience
greater price volatility than securities in some slower changing
market sectors.
|
The Board reviews investment
performance, including a detailed attribution analysis comparing
performance against the benchmark, at each Board meeting. At such
meetings, the Investment Manager reports on major developments and
changes in technology market sectors and also highlights issues
relating to individual securities. The Board has reviewed the risks
and opportunities presented by AI via discussion with a subject
matter expert. The portfolio is diversified.
|
Cyber risk
The Company may be at risk of cyber
attacks which may result in the loss of sensitive information or
disruption to the business.
|
The operations of the Company are
carried out by third party service providers. All service providers
report to the Board on operational issues including cyber risks and
the controls in place to capture potential attacks. See Operational
Risk below.
|
Market risk
The Company's NAV may be adversely
affected by a general decline in the valuation of listed securities
and/or adverse market sentiment towards the technology sector in
particular. Although the Company has a portfolio that is
diversified by company size, sector and geography, its principal
focus is on companies with high growth potential in the mid-size
ranges of capitalisation. The shares of these companies may be
perceived as being at the 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 affected by changes to
central banks interest rates. Higher interest rates have had
an adverse impact on growth stocks.
Market sentiment may quickly
deteriorate in the face of geopolitical events and effects on the
macro-economic environment.
|
The Board, the AIFM and the
Investment Manager monitor stock market movements and may consider
hedging, gearing or other strategies to respond to particular
market conditions. The AIFM and the Investment Manager maintain
regular contact with shareholders to discuss performance and
expectations and to convey the belief of
the Board and the Investment Manager
that superior returns can be generated from investment in carefully
selected companies that are well managed, financially strong and
focused on those segments of the technology market where disruptive
change is occurring.
The Board, the AIFM and the
Investment Manager would monitor the progress of the unexpected
events very closely and initiate appropriate responses where
possible.
|
Currency risk
A high proportion of the Company's
assets is likely to be held in securities 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.
|
The Board monitors currency
movements and determines hedging policy as appropriate. The Board
does not currently seek to hedge this foreign currency
risk.
|
Financial and liquidity
risk
The financial risks to the Company
and the controls in place to manage these risks are disclosed in
detail in Note 13 in the Annual Report.
|
Financial and liquidity reports are
provided to and considered by the Board on a regular
basis.
|
Operational risk
The Company may be impacted by
disruption to or the failure of the systems and processes utilised
by the AIFM and the Investment Manager or other third party service
providers. This encompasses disruption or failure caused by
cybercrime, fraud and errors and covers dealing, trade processing,
administrative services, financial and other operational
functions.
|
The Board receives regular reports
from the AIFM, the Investment Manager and third parties on internal
controls highlighting areas of exception, including reports on
monitoring visits carried out by the Depositary on behalf of the
Company. The Board has further considered the increased risk of
cyber-attacks and fraud and has received reports and assurance
regarding the controls in place and details of whistleblowing
procedures.
|
Key individual risk
The Company could suffer disruption
to operations as a consequence of loss of key individuals e.g the
lead portfolio manager.
|
Succession plans are in place for
the Board. The lead portfolio manager is supported by Erik Swords,
portfolio manager and an experienced team of technology investors.
Cover is available for core members of the relevant teams of the
AIFM.
|
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' Report
beginning on page 34 of the Annual 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
12 March 2024
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 Auditors does not involve consideration
of the maintenance and integrity of the website and, accordingly,
the Auditors accept 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, 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
12 March 2024
Investment Portfolio as at 31
December 2023
Investment
|
Sector#
|
Sub-sector#
|
Country
|
Fair Value
£'000
|
% of
Portfolio
|
Microsoft
|
Software
|
Systems Software
|
United States
|
109,646
|
8.5
|
NVIDIA
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
92,982
|
7.2
|
Apple
|
Technology Hardware, Storage &
Peripherals
|
Technology Hardware, Storage &
Peripherals
|
United States
|
81,921
|
6.4
|
Alphabet
|
Interactive Media &
Services
|
Interactive Media &
Services
|
United States
|
63,727
|
5.0
|
Meta Platforms
|
Interactive Media &
Services
|
Interactive Media &
Services
|
United States
|
53,809
|
4.2
|
Broadcom
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
46,208
|
3.6
|
Amazon.com
|
Broadline Retail
|
Broadline Retail
|
United States
|
45,310
|
3.5
|
Lam Research
|
Semiconductors & Semiconductor
Equipment
|
Semiconductor Equipment
|
United States
|
40,721
|
3.2
|
Monolithic Power Systems
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
39,131
|
3.0
|
Micron Technology
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
34,757
|
2.7
|
Top ten
investments
|
|
|
|
608,212
|
47.3
|
MongoDB
|
IT Services
|
Internet Services &
Infrastructure
|
United States
|
34,468
|
2.7
|
Zscaler
|
Software
|
Systems Software
|
United States
|
32,664
|
2.5
|
Adobe
|
Software
|
Application Software
|
United States
|
31,918
|
2.5
|
Samsung Electronics
|
Technology Hardware, Storage &
Peripherals
|
Technology Hardware, Storage &
Peripherals
|
South Korea
|
31,855
|
2.5
|
ServiceNow
|
Software
|
Systems Software
|
United States
|
31,697
|
2.5
|
Advanced Micro Devices
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
31,409
|
2.4
|
Datadog
|
Software
|
Application Software
|
United States
|
30,956
|
2.4
|
CrowdStrike
|
Software
|
Systems Software
|
United States
|
30,103
|
2.3
|
Shopify
|
IT Services
|
Internet Services &
Infrastructure
|
Canada
|
26,944
|
2.1
|
MercadoLibre
|
Broadline Retail
|
Broadline Retail
|
United States
|
26,109
|
2.0
|
Top twenty
investments
|
|
|
916,335
|
71.2
|
Taiwan Semiconductor
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
Taiwan
|
25,290
|
2.0
|
HubSpot
|
Software
|
Application Software
|
United States
|
23,754
|
1.9
|
Snowflake
|
IT Services
|
Internet Services &
Infrastructure
|
United States
|
23,456
|
1.8
|
Applied Materials
|
Semiconductors & Semiconductor
Equipment
|
Semiconductor Equipment
|
United States
|
22,554
|
1.8
|
Cyberark Software
|
Software
|
Systems Software
|
Israel
|
22,470
|
1.7
|
Arista Networks
|
Communications Equipment
|
Communications Equipment
|
United States
|
21,493
|
1.7
|
Palo Alto Networks
|
Software
|
Systems Software
|
United States
|
21,465
|
1.7
|
Cloudflare
|
IT Services
|
Internet Services &
Infrastructure
|
United States
|
20,828
|
1.6
|
KLA
|
Semiconductors & Semiconductor
Equipment
|
Semiconductor Equipment
|
United States
|
19,206
|
1.5
|
Cadence Design
|
Software
|
Application Software
|
United States
|
18,270
|
1.4
|
Top
thirty investments
|
|
|
1,135,121
|
88.3
|
Marvell Technology
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
15,933
|
1.2
|
Western Digital
|
Technology Hardware, Storage &
Peripherals
|
Technology Hardware, Storage &
Peripherals
|
United States
|
13,478
|
1.1
|
NXP Semiconductors
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
Netherlands
|
13,166
|
1.0
|
Expedia
|
Internet & Direct Marketing
Retail
|
Internet & Direct Marketing
Retail
|
United States
|
13,034
|
1.0
|
Elastic NV
|
Software
|
Application Software
|
Netherlands
|
12,212
|
1.0
|
ON Semiconductor
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
12,116
|
0.9
|
Monday.com
|
Software
|
Systems Software
|
Israel
|
12,110
|
0.9
|
Synopsys
|
Software
|
Application Software
|
United States
|
12,085
|
0.9
|
Trade Desk
|
Media
|
Advertising
|
United States
|
9,945
|
0.8
|
Intel
|
Semiconductors & Semiconductor
Equipment
|
Semiconductors
|
United States
|
8,033
|
0.6
|
Top
forty investments
|
|
|
1,257,233
|
97.7
|
Okta
|
IT Services
|
Internet Services &
Infrastructure
|
United States
|
7,811
|
0.6
|
Uber Technologies
|
Ground Transportation
|
Passenger Ground
Transportation
|
United States
|
7,539
|
0.6
|
JFrog
|
Software
|
Systems Software
|
Israel
|
7,441
|
0.6
|
Pinterest
|
Interactive Media &
Services
|
Interactive Media &
Services
|
United States
|
6,762
|
0.5
|
Total
Investments
|
1,286,786
|
100.0
|
# GICS Industry classifications
INCOME STATEMENT
for the year ended 31 December
2023
|
|
2023
Revenue £'000s
|
2023
Capital £'000s
|
2023
Total
Return £'000s
|
2023
Revenue
£'000s
|
2022
Capital
£'000s
|
2022
Total
Return £'000s
|
Gains (losses) on investments held
at fair value through profit or loss
|
|
-
|
424,802
|
424,802
|
-
|
(501,617)
|
(501,617)
|
Exchange (losses)
gains on currency balances
|
|
(46)
|
(1,122)
|
(1,168)
|
227
|
9,307
|
9,534
|
Income
|
|
5,372
|
-
|
5,372
|
6,683
|
-
|
6,683
|
Investment management fee and
performance fee
|
|
(6,866)
|
-
|
(6,866)
|
(6,795)
|
-
|
(6,795)
|
Administration expenses
|
|
(1,003)
|
-
|
(1,003)
|
(1,098)
|
-
|
(1,098)
|
Profit (loss) on ordinary activities before
taxation
|
|
(2,543)
|
423,680
|
421,137
|
(983)
|
(492,310)
|
(493,293)
|
Taxation
|
|
(937)
|
-
|
(937)
|
(868)
|
-
|
(868)
|
Profit (loss) on ordinary activities attributable to ordinary
shareholders
|
|
(3,480)
|
423,680
|
420,200
|
(1,851)
|
(492,310)
|
(494,161)
|
Earnings (loss) per ordinary share (basic &
diluted)
|
|
(0.88p)
|
106.71p
|
105.83p
|
(0.45p)
|
(118.62p)
|
(119.07p)
|
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 2023
|
|
|
2023
£'000s
|
2022
£'000s
|
Non
Current Assets
|
|
|
|
|
Investments held at fair value
through profit or loss
|
|
|
1,286,786
|
898,937
|
Current Assets
|
|
|
|
|
Other receivables
|
|
|
690
|
838
|
Cash and cash equivalents
|
|
|
34,292
|
41,695
|
|
|
|
34,982
|
42,533
|
Current Liabilities
|
|
|
|
|
Other payables
|
|
|
(2,993)
|
(2,522)
|
Net
current assets
|
|
|
31,989
|
40,011
|
Total net assets
|
|
|
1,318,775
|
938,948
|
|
|
|
|
|
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
|
|
|
1,010,278
|
626,971
|
Revenue reserve
|
|
|
(37,434)
|
(33,954)
|
Shareholders' funds - Equity
|
|
|
1,318,775
|
938,948
|
Net
asset value per Ordinary share
|
|
|
338.2p
|
231.0p
|
The financial statements of Allianz
Technology Trust PLC, company number 3117355, were approved and
authorised for issue by the Board of Directors on 12 March 2024 and
signed on its behalf by:
Tim Scholefield
Chairman
12 March 2024
STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December
2023
|
|
Called up
Share Capital £'000s
|
Share
Premium Account
£'000s
|
Capital
Redemption Reserve
£'000s
|
Capital
Reserve
£'000s
|
Revenue
Reserve
£'000s
|
Total
£'000s
|
Net assets at
1 January 2022
|
|
10,719
|
334,191
|
1,021
|
1,158,544
|
(32,103)
|
1,472,372
|
Revenue loss
|
|
-
|
-
|
-
|
-
|
(1,851)
|
(1,851)
|
Shares repurchased into treasury
during the year
|
|
-
|
-
|
-
|
(39,263)
|
-
|
(39,263)
|
Capital loss
|
|
-
|
-
|
-
|
(492,310)
|
-
|
(492,310)
|
Net
assets at
31
December 2022
|
|
10,719
|
334,191
|
1,021
|
626,971
|
(33,954)
|
938,948
|
Net assets at
1 January 2023
|
|
10,719
|
334,191
|
1,021
|
626,971
|
(33,954)
|
938,948
|
Revenue loss
|
|
-
|
-
|
-
|
-
|
(3,480)
|
(3,480)
|
Shares repurchased into treasury
during the year
|
|
-
|
-
|
-
|
(40,373)
|
-
|
(40,373)
|
Capital profit
|
|
-
|
-
|
-
|
423,680
|
-
|
423,680
|
Net
assets at
31
December 2023
|
|
10,719
|
334,191
|
1,021
|
1,010,278
|
(37,434)
|
1,318,775
|
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.
Revenue
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 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 accrual
basis.
Valuation
As 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, financial
assets 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 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 59 of the Annual 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
60 of the Annual Report. There are no other identifiable related
parties at 31 December 2023, and as of 12 March 2024.
Note B
Return per Ordinary Share
The earnings per Ordinary Share of
105.83p (2022: loss per Ordinary Share 119.07p) is based on the
weighted average number of Ordinary Shares in issue of 397,030,186
(2022:415,019,252).
Note C
Fixed Asset Investments
Included in the cost of investments
are transaction costs and stamp duty on purchases which amounted to
£193,000 (2022: £207,000) and transaction costs on sales which
amounted to £235,000 (2022: £419,000).
Note D
2023 Financial
Information
The financial information for the
period ended 31 December 2023 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.
2022 Financial
Information
The financial information for the
period ended 31 December 2022 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 Grocers' Hall, Princes Street, London EC2R
8AD on Wednesday 24 April 2024 at 2.30pm.