Performance, Commentary & Portfolio

Fund Manager’s Review

Allianz Technology Trust’s Net Asset Value (NAV) total return was -1.26% in August, compared to the Dow Jones World Technology Index return of -1.01% in GBP

Global equities generally moved higher in August, and were modestly lower in GBP terms, as shares rebounded from losses on the first day of the month when President Trump’s postponed ‘Liberation Day’ tariffs came into effect. While Russian forces stepped up the offensive in eastern Ukraine, market sentiment was lifted by dovish commentary from U.S. Federal Reserve Chair Jay Powell at the Jackson Hole annual symposium. This news fuelled expectations of an interest rate cut at the U.S. central bank’s September meeting and unleashed a global equity rally.

Monthly relative performance versus the benchmark was aided by bottom-up stock selection in IT services and semiconductor industries. This was offset by a below-benchmark allocation to technology hardware, followed by short-term stock selection in interactive media and services stocks.

Contributors

Our active position in Monolithic Power Systems, Inc., a designer of highly efficient, integrated power management semiconductor chips used across data centres, automotive, industrial, and consumer electronics, aided results as the company’s share price advanced following impressive quarterly results with strong year-over-year revenue growth which translated to better-than-expected earnings.

Shares of MongoDB, Inc., a leading database platform that enables developers to build and modernise applications rapidly and costeffectively across a broad range of use cases with embedded security features, contributed to portfolio results thanks to strong quarterly results as revenue and earnings beat expectations and the company raised its full-year guidance for a second consecutive quarter. The stock was newly purchased during the month.

Our below-benchmark allocations to enterprise software and security giant Microsoft Corp. and graphics processing units (GPUs) and related technologies maker Nvidia Corp., also contributed to relative performance given their sizeable benchmark weights and negative returns.

An active overweight position in Micron Technology, Inc., a developer of high-bandwidth memory and solid-state storage solutions, aided results as the company raised its revenue and profit guidance, citing strong artificial intelligence (AI) related memory demand, tight memory supply, and improved pricing that boosted margins.

Detractors

Our structural below-benchmark allocation to iPhone and personal computer giant Apple, Inc., detracted from results as the stock rebounded due in part to its announcement of an additional $100 billion investment in U.S. manufacturing, which is anticipated to have helped the company sidestep potential tariffs and buoyed investor confidence.

Our active underweight allocation to search engine, advertising and security giant Alphabet Inc., offset results as the company benefitted from improved investor sentiment, advertising strength and clarity of potential outcomes related to the company’s Chrome browser segment.

An above-benchmark weight in semiconductor products and devices maker Advanced Micro Devices, Inc., detracted from relative returns given the overall moderation in chip stocks combined with concerns about the company’s exposure to China given the regulatory uncertainty in the country, overshadowing an upbeat forecast for the company’s AI-related business.

Our position in monday.com, a cloud-based platform to help streamline work processes, offset returns following cautious earnings results, while an active overweight allocation in Taiwan Semiconductor Manufacturing Co Ltd. detracted from results due primarily to the short-term pullback in chipmakers following outsized gains in prior months.

New buys and sells 

Turnover in August was undertaken at a lower-than-normal level as the portfolio was already well-positioned from a risk versus reward perspective. We newly purchased shares of the aforementioned MongoDB Inc., a leading open-source, document-orientated database platform, following a recent pullback in the company’s share price, combined with improved conviction and potential for an acceleration in earnings growth. There were no other new buys or new sells in the portfolio during the month.

Market Outlook 

Our outlook for technology stocks remains constructive given favourable underlying fundamental factors and growth tailwinds from AI and related applications. Corporate earnings have been relatively resilient, and many companies are increasing their forward guidance. These favourable earnings expectations, combined with seasonal tailwinds in areas like software, which have historically delivered outsized returns in the final months of a calendar year, may help improve near-term momentum.

Our expectation is that the risk to reward within technology stocks may remain favourable in light of underlying fundamental factors, with macroeconomic uncertainty recently notching lower and interest rate cuts, which are anticipated in the coming months, likely to help further improve industry prospects. Although near-term uncertainty may preside, we maintain a positive mid-to-long-term outlook for equity markets and we continue to believe market leaders who execute well are likely to be rewarded regardless of the macroeconomic backdrop.

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
12 September 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.

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