Performance, Commentary & Portfolio

Fund Manager’s Review

Portfolio overview

Allianz Technology Trust’s Net Asset Value (NAV) total return was -1.79% in November, compared to the Dow Jones World Technology Index return of -0.96% in GBP

Global equities delivered a modest gain in December, thanks in part to the traditional Santa Claus rally which lifted investor sentiment into the holiday period, with escalating protests in Iran and Chinese military exercises in the Taiwan Strait weighing on sentiment at month end. Technology stocks were only modestly positive for the period as muted gains in semiconductors were offset by slight losses in interactive media & services and technology hardware stocks

Monthly relative performance trailed the benchmark due to short-term industry allocation impacts and more conservative stock selection. Results were aided by positioning in technology-related aerospace & defence and IT services stocks, which was primarily offset by bottom-up selections within software and electronic equipment industries.

Contributors

Our active position in Micron Technology, Inc., a leading memory and storage semiconductor company, favourably impacted results again in December as investors continued to bid the stock higher thanks to pricing strength in high-bandwidth memory (HBM) tied to artificial intelligence (AI) demand and better-than-expected margin recovery as the memory cycle remained tight.

Shares of MongoDB, Inc., a platform which supports modern applications, analytics and AI workload via storing and managing unstructured data, climbed after the company beat earnings and revenue expectations and raised full-year guidance, driven by strong demand for its Atlas cloud database, improved profitability and accelerated growth forecasts.

Our above-benchmark weight in Lam Research Corp., a maker of semiconductor processing equipment, aided results due to improving visibility into wafer-fab equipment spending, driven by accelerating AI-related logic and memory investments, easing concerns around the semiconductor cycle and supporting expectations for a 2026 recovery

Our off-benchmark exposure to Rocket Lab Corp., an end-to-end technology and space company delivering reliable launch services, spacecraft and satellite components contributed to results as shares surged due to its leadership position and new contract wins. Our structural underweight to iPhone and personal computing giant Apple Inc. also favourably impacted results given the stock’s significant benchmark weight and monthly decline.

Detractors

Our active position in Broadcom, Inc., a leading semiconductor and security provider which had advanced in each of the prior eight months, offset results due to muted guidance signalling potential margin pressures due to a higher mix of lower-margin custom AI processor sales, which sparked investor concern about profitability and valuation sustainability.

Our above-benchmark position in cloud-native data platform Snowflake Inc. detracted from performance despite upside earnings results, as the stock was influenced by a more conservative profit target alongside the overall moderation in infrastructure software segments of the market.

Our avoidance of South Korean semiconductor and consumer conglomerate Samsung Electronics Co., Ltd. offset results as shares rallied on signs of a cyclical recovery in memory pricing, improving demand tied to AI-driven data centre workloads, and increasing confidence that earnings had troughed heading into 2026.

Shares of Celestica Inc., a leader in high-reliability design, manufacturing and supply chain solutions, were lower as investors digested margin concerns and profit-taking following a strong run earlier in the year, alongside uncertainty around the timing and sustainability of hyperscaler and AI infrastructure orders. Our structural underweight allocation to highperformance graphics processors and accelerated computing platform giant NVIDIA Corp., detracted given its significant benchmark weight a modest monthly advance.

New buys and sells 

Turnover in December was undertaken at a lower-than-typical level due to seasonally light trading volumes and expectations the portfolio was already well-positioned from a bottom-up and top-down thematic basis. There were no new portfolio purchases during the month. We made the decision to exit our position in CoreWeave, Inc. a specialised cloudinfrastructure provider, due to uncertainty around margin sustainability and concerns related to the company’s elevated debt. We also sold our stake in entertainment and streaming services provider Netflix Inc. amid uncertainty of its potential deal to acquire Warner Bros. Discovery, Inc., which may present a longer-term overhang and a shift away from the company’s traditional strategy of building versus buying content. Lastly, we fully exited our position in German application software maker SAP SE due to concerns around the sustainability of the company’s future growth

Market Outlook 

We continue to view the technology sector favourably, underpinned by durable structural growth drivers led by AI and the broadening adoption of AI across enterprise, consumer, and industrial applications. Developments in 2025 reinforced this view, with accelerating data centre investment, improving semiconductor fundamentals, and increasing monetisation of AI-driven software and services. As macro conditions stabilise, easing inflation and growing confidence in policy rate cuts in 2026 should provide a more supportive backdrop for valuation and capital spending. Corporate fundamental factors remain solid, with many technology companies demonstrating resilient margins and strengthening forward guidance. While episodic volatility may persist, particularly around geopolitics and policy, we expect technology to remain a key driver of earnings growth. Looking ahead, we believe high-quality market leaders with scale, strong balance sheets, and proven execution are well positioned to outperform as AI-driven demand continues to compound across the sector.

Our focus remains on building the portfolio from a bottom-up perspective with a macro-overview. Technology remains a key enabler across almost every vertical industry and we will continue to seek stocks which solve difficult problems and can be long-term outperformers. Despite shortterm periods of higher volatility, earnings growth ultimately drives stock prices over the long term, and in our view, we are still early in the spending trend supporting this dynamic segment.

Mike Seidenberg
13 January 2026

This is no recommendation or solicitation to buy or sell any particular security. Any security mentioned above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.

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