Allianz Technology Trust PLC's April 2024 update highlights the benefits of investing in the trust, including a highly experienced portfolio management team and recognition as the Investment Week Investment Company of the Year Award winner. The monthly fact sheet reveals that the trust's Net Asset Value (NAV) total return was -3.62% in April, compared to the Dow Jones World Technology Index return of 3.64%.
The decline in technology shares in April was attributed to fears of the conflict in the Middle East spreading and concerns about the U.S. Federal Reserve keeping interest rates higher for longer. The trust's performance was in line with the benchmark, with positive stock selection in semiconductor and software industries offset by below-benchmark allocation and stock selection in the interactive media and services industry.
The update also discusses contributors to the trust's performance, such as the avoidance of legacy chip maker Intel Corp. and a below-benchmark allocation to Microsoft Corp. Additionally, exposure to Darktrace PLC, Western Digital Corp., and Dell Technologies, Inc., proved beneficial. Detractors included a below-benchmark allocation to Alphabet Inc. and an active underweight allocation in Apple Inc.
The trust's turnover was lower-than-typical in April, with the decision to purchase Amphenol Corp. being the only new buy for the month. The outlook remains positive, with expectations of rate cuts by the Federal Reserve and an anticipated acceleration in the merger and acquisition environment for both public and private companies. Valuations are considered reasonable, and there is confidence in the ample room for growth.
This comprehensive update provides insights into the trust's performance, key contributors and detractors, as well as the outlook for the technology sector and the trust's investment strategy.