Welcome to the latest update from the Trust's portfolio managers

April 2023

• The strategy is managed by a deeply experienced portfolio management team who have over 100 years of collective experience managing technology strategies**
• High conviction concentrated portfolio
• Winner of the Investment Week Investment Company of the Year Award (Specialist) from 2017 to 2021.*

Monthly Fact Sheet

Welcome to our latest monthly fact sheet, featuring data and commentary as at 30.04.2023

Portfolio Overview

The Allianz Technology Trusts NAV Total Return was -4.89% in April, compared to the Dow Jones World Technology Index return of -2.18%. During the month, stock selection and industry allocation detracted

Contributors

Meta Platforms Inc. delivered solid earnings results, driven by strong engagement as well as improvements in total advertisement impressions. The company noted that Reels continues to grow on Facebook and Instagram. Reels has not only driven an increase in overall app engagement, but has aided the company in gaining share in the shortform video segment. While Reels remains a revenue challenge at present, Reels is still expected to be neutral to overall revenue either by the end of 2023 or early into 2024. Meta also emphasised the importance of artificial intelligence and the companys plans to continue investing in AI capabilities. The company indicated it is no longer behind in building out its AI infrastructure and now has the ability to build out further new initiatives at scale. Going forward, Meta remains focused on increasing its investment in both AI and the broader metaverse development, indicating that the two initiatives are very much related.

Other top relative contributors included not owning Alibaba Group Holding Ltd., Tencent Holdings Ltd, Cisco Systems, Inc. and ASML Holdings NV

Detractors

Our underweight to Microsoft Corp. was also a top detractor over the month. In addition to launching a new artificial intelligence-powered Copilot product for Office apps, Microsoft also launched a Security Copilot product. The Security Copilot is an AI assistant designed to help security professionals quickly summarise and investigate incidents. Security Copilot will also continually learn and improve to help ensure that security teams are operating with the latest knowledge of attackers, their tactics, techniques and procedures. Microsoft believes that these innovations should help them continue to grow and remain a dominant player in software and security. Its security business is producing more than $20 billion in revenue and growing more than 30% year over year. Microsoft remains a top holding in the portfolio, although we are underweight the benchmarks large position.

Okta, Inc. was also a top detractor in the period. Management reiterated their cautious view around fiscal year 2024 guidance, indicating that they have assumed a worsening macro environment in their guidance. Okta also noted that the recent execution missteps were caused by over-hiring which led to sales territories being cut too small for reps to meet their numbers. We believe Okta has addressed these issues, and the company is positioning itself to accelerate growth. Identity security remains a high priority in the security landscape, and Okta should benefit from a strong demand environment.

Other top detractors included overweights to Aspen Technology, Inc., Tesla, Inc. and Taiwan Semiconductor Manufacturing Co., Ltd.

Market Outlook

Our expectation is that the recent macro challenges could translate to an attractive opportunity for long-term investors as the technology sector is likely to continue benefiting from secular tailwinds which should, we believe, drive capital appreciation over time. Having said this, we are cognisant of the scrutiny on IT budgets and the potential challenge near term. In addition, many companies remain challenged to find workers to meet customer demands and are likely to further leverage technology-based solutions to improve productivity of limited staffs. As companies need to reduce costs and improve productivity, particularly in light of a potentially uncertain macroeconomic outlook, we expect to see accelerating demand for innovative and more productive solutions such as cloud, software-as-a-service, artificial intelligence, cyber security, etc. We are in a period of rapid change, where the importance of technology is key to the prosperity of most industries. We believe that this environment is likely to provide attractive growth opportunities in many technology stocks over the next several years.

We continue to believe the technology sector can provide some of the best absolute and relative return opportunities in the equity markets particularly for bottom-up stock pickers with proven long-term selection capabilities.

For the latest portfolio breakdown, performance and investment insights from Silicon Valley, please visit www.allianztechnologytrust.com.

*Past performance does not predict future returns.

**From 25 July 2022, discretionary portfolio management services formerly provided to Allianz Technology Trust PLC (the Company) by Allianz Global Investors (AllianzGI) have been delegated to Voya Investment Management Co. LLC (Voya IM). All members of the former AllianzGI Global Technology Team transferred to Voya IM and continue to manage the Companys portfolio. It is anticipated that there will be no change to the investment process. AllianzGI will remain the Companys AIFM (Alternative Investment Fund Manager), providing company secretarial, administration and sales and marketing services.

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With regards,

Allianz Global Investors UK Limited

199 Bishopsgate, London, EC2M 3TY
Freephone (UK calls only): 0800 389 4696
Email: [email protected]

www.allianztechnologytrust.com

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