Performance, Commentary & Portfolio

Fund Manager’s Review

Portfolio overview

Allianz Technology Trust’s Net Asset Value (NAV) total return was -4.26% in November, compared to the Dow Jones World Technology Index return of -3.75% in GBP

Global equities had a volatile month and broad-based market indices ended November roughly where they started. In the United States, investors braced themselves for a slew of delayed economic data releases as the government reopened while dovish commentary from U.S. Federal Reserve officials subsequently fueled hopes of a December rate cut. Technology stocks edged lower due in part to concerns regarding artificial intelligence-related valuations and escalating AI spending spurred a sell- off, with interactive media and services stocks advancing while software and semiconductor industries declined.

Monthly relative performance trailed the benchmark due to short- term industry allocation impacts, which countered positive bottom-up stockpicking. Selections in semiconductor and electronic equipment industries aided relative gains, which were offset by stockpicking in IT services and communications equipment, as well as a below-benchmark allocation to interactive media and services.

Contributors

Our structural underweight allocation to high-performance graphics processors and accelerated computing platform giant NVIDIA Corp., due to its significant benchmark weight and max position size limitations, aided results given the rotation into other semiconductor-led platforms, most notably from an increase in Alphabet’s tensor processing unit (TPU) demand.

An active position in Micron Technology, Inc., a leading memory and storage semiconductor company, favourably impacted results again this month as investors bid the stock up on continued pricing strength in high-bandwidth memory (HBM) tied to AI demand and better-than-expected margin recovery as the memory cycle tightened.

Our above-benchmark weight in semiconductor and security solutions leader Broadcom, Inc. contributed to performance thanks in part to news of the release of Gemini 3 by Alphabet, with investors anticipating a surge in demand for the custom TPUs co-designed and supplied by Broadcom, boosting expectations of large AI-related installations and capex.

Our active overweights to high-performance analog, mixed-signal, and power-management chip maker Analog Devices, Inc. and flash memory storage developer SanDisk Corp. also aided relative results in November.

Detractors

Our relative underweight allocation to iPhone and personal computing giant Apple Inc. offset results as the stock notched higher amid a strong iPhone 17 launch and services-related revenue growth, combined with the company’s diversified business model and improving operational discipline, which helped counter recent technology market volatility.

Our active position in CoreWeave, Inc. a specialized cloud-infrastructure provider that offers GPU-accelerated computing for AI model training, inference and related workloads offset results due in part to the company trimming its annual revenue outlook, which combined with high capital expenditures, translated to a moderation in investor sentiment.

Shares of Cloudflare, Inc., a designer and developer software solutions designed to make the internet faster and more secure, had advanced in each of the prior seven months thanks to upside earnings results and increased guidance, with performance in November impacted by investor profit-taking, insider sales activity as well as an overall moderation security-related companies.

Our active position in cyber security pure play Zscaler, Inc. offset results as quarterly results were ahead of expectations yet trailed elevated whisper numbers due to what was deemed a conservative guidance, while our below-benchmark exposure to the aforementioned Alphabet Inc. detracted from results amid a double-digit monthly gain on the back of excitement over the company’s new AI capabilities and cloud infrastructure growth.

New buys and sells 

Turnover in November was undertaken at a lower-than-typical level as the portfolio was already well positioned from an alpha versus risk profile. We newly purchased shares of Lumentum Holdings Inc., a maker of optical and photonic components used in telecom networks, data centres, and three-dimensional sensing, given its exposure to AI-driven optical-network upgrades. Similarly, we bought Coherent Corp., a supplier of lasers, materials and optics, thanks to its leadership position and exposure to across multiple technology end markets. We also added Shopify Inc., a global cloud-based commerce platform for online merchants, due to its strong competitive positioning and increasing usage of AI-related infrastructure to drive demand. We funded these new buys in part via the exit of semiconductor manufacturing company Microchip Technology Inc., due to our lower conviction in the company’s ability to execute relative to other companies within the industry.

Market Outlook 

We continue to view the technology sector favourably, supported by long-term structural growth drivers, particularly in AI and its expanding use cases. Improving macro sentiment, helped by easing geopolitical pressures and rising confidence in forthcoming central-bank rate cuts, should further bolster industry conditions. Corporate results remain generally strong, with many companies raising their outlooks heading into next year. While short-term volatility is still possible, our medium- to long-term stance on equities remains positive, and we believe high-quality market leaders with strong execution will continue to outperform across varying macro environments.

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 short- term 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
12 December 2025

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.

Awards & Ratings

A ranking, a rating or an award provides no indicator of future performance and is not constant over time.