Allianz Technology Trust PLC has released its January 2024 update, highlighting the reasons to invest in the trust, including a deeply experienced portfolio management team and a high conviction concentrated portfolio. The trust has also been recognized with the Investment Week Investment Company of the Year Award multiple times. The monthly fact sheet for January 2024 shows that the trust's Net Asset Value total return was 4.62%, outperforming the Dow Jones World Technology Index return of 3.18%.
The outperformance was attributed to a combination of allocation decisions and bottom-up stock selection. The trust's active underweight allocation in Apple Inc. and its avoidance of Tencent Holdings Ltd. were contributors to the positive performance. CrowdStrike Holdings, Inc., Palo Alto Networks, Inc., and Advanced Micro Devices, Inc. were also top monthly contributors. However, the trust's avoidance of ASML Holding NV and Monolithic Power Systems, Inc. offset some of the results for the month.
Looking at the market outlook, equity market sentiment remained positive in January, with expectations of future U.S. Federal Reserve and Central Bank rate cuts. The trust's portfolio managers anticipate an economic recovery and growth reacceleration as the year progresses, driven by lower rates and easier financial conditions. Earnings growth is expected to re-accelerate in 2024, which should lead to a broadening of the market across different market capitalizations.
Overall, the update provides insight into the trust's performance, key contributors, detractors, and the market outlook for the technology sector, offering valuable information for investors and stakeholders.