Allianz Technology Trust PLC has released its latest update, highlighting the reasons to invest in the trust. The portfolio is managed by an experienced team with over 100 years of collective experience in managing technology strategies. The trust has a high conviction concentrated portfolio and has won the Investment Week Investment Company of the Year Award (Specialist) from 2017 to 2021.
In terms of performance, the trust's Net Asset Value total return for July was 3.83%, outperforming the Dow Jones World Technology Index return of 2.90%. Stock selection and industry allocation contributed to the relative returns.
Some of the top contributors to the trust's performance in July were Meta Platforms Inc. and Datadog Inc. Meta Platforms exceeded revenue expectations and saw strong user engagement, with monthly active users surpassing 3 billion for the first time in June. Datadog's overall growth outlook and competitive positioning remain strong, benefiting from secular tailwinds such as the growth in data and the shift to the cloud.
On the other hand, Palo Alto Networks was a top detractor in July, with shares declining as investors took profits. However, the trust maintains conviction in the company's long-term fundamental factors. Taiwan Semiconductor Manufacturing Co., Ltd. reported in-line second-quarter results but lowered its near-term outlook due to macroeconomic challenges. Despite this, the trust sees a longer-term opportunity for the company as AI continues to advance.
In terms of the market outlook, the trust expects the recent macroeconomic challenges to present attractive opportunities for long-term investors in the technology sector. The sector is likely to benefit from secular tailwinds such as cloud, software-as-a-service, AI, and cybersecurity. The trust is excited about the advancement of artificial intelligence and its potential impact on companies. However, investors should expect volatility in this emerging sector.
Overall, the trust believes that technology is key to the prosperity of most industries and that companies leveraging technology-based solutions will see increasing demand for innovative and productive solutions.