Allianz Technology Trust PLC

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

May 2023

Why invest in Allianz Technology Trust?

• 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 31.05.2023

Portfolio Overview

The Allianz Technology Trust Net Asset Value (NAV) Total Return was 15.11% in May, compared to the Dow Jones World Technology Index return of 10.87%. During the month, stock selection contributed, and industry allocation modestly detracted from relative returns.

Contributors

Nvidia Corp. delivered a strong quarter, demonstrating significant demand across all products in its data centre business. Demand is primarily driven by accelerated spending on generative artificial intelligence (AI) (AI algorithms that can generate new text, images, code etc.) by cloud service providers, consumer internet companies and enterprises. Growth in gaming and pro visualisation continues as the company confirmed the end of inventory digestion and a ramp-up in its new RTX 40 Series GPUs. Higher contribution from data centers and rising software revenues continue to elevate gross margins, already at previous peak levels and expected to expand further with new products. as enterprises and consumers across the globe explore use cases of Artificial Intelligence. This is arguably the largest opportunity in Technology and its our belief Cybersecurity will benefit accordingly as the technology is embraced.

Advanced Micro Devices (AMD), Inc. reported a mixed quarter, beating expectations for the first quarter but slightly missing guidance for the second quarter. The company did call the bottom (correctly predicting the lowest point) in its client business in the first quarter and for continued strength in data center. Within data, cloud continues to outperform, but the company is seeing some headwinds from a tough macro on the enterprise side. In gaming, the console business remains strong, but the PC gaming business is an offsetting factor to the entire segment. The companys growth segments are still growing, largely due to strength in data center and the client business which appears to be turning more positive. We remain constructive on AMD as a portfolio holding.

Other top relative contributors included an underweight in Apple Inc. and overweights in Okta Inc. and HubSpot Inc.

Detractors

Our underweight in Broadcom Inc. was among the top detractors during the month. Broadcom has benefited from a positive backdrop for a subset of semiconductors in general. Additionally, the stock rallied after Apple and Broadcom announced a multi-billion-dollar deal for radio frequency (RF) components Broadcom will continue to produce for Apple. However, growth is expected to decelerate in the upcoming quarters. A lot of good news appears to be priced into the stock, and for the portfolio we now see more upside opportunities in other holdings.

Intuit Inc. was also a top detractor in May. Intuits third-quarter results were modestly below revenue expectations, driven by lower-than-expected consumer revenue. Weakness is largely due to pandemic filers who did not return to the platform. Absent the lower-than-expected filer count, the tax season was in line with managements expectation. Despite the headwinds to the tax business, management increased full-year guidance due to outperformance in the Small Business segment and cost discipline. We believe the company has the potential to deliver solid growth over time as execution has been strong in a challenging macro environment.

Other top detractors included overweights to MercadoLibre,Inc. Clouflare, Inc. and Paycom Software, Inc

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 benefitting 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.

Active is:

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

Investing involves risk. The value of an investment and the income from it could fall as well as rise and investors might not get back the full amount invested. For further information contact the issuer at the address indicated below.

This is a marketing communication issued by Allianz Global Investors UK Limited, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk. Allianz Global Investors UK Limited, company number 11516839, is authorised and regulated by the Financial Conduct Authority. Details about the extent of our regulation are available from us on request and on the Financial Conduct Authority's website (www.fca.org.uk). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited

This email, its contents and any files transmitted with it are intended solely for the addressee(s) and may be legally privileged and/or confidential. If you have received this email in error please delete it and contact the sender via the switchboard on +44 (0)20 7859 9000 or via return e-mail. You should not copy or forward it on or otherwise use the contents, attachments or information in any way. Any such unauthorised use or disclosure may be unlawful. Allianz Global Investors UK Limited give no warranty as to the security, accuracy or completeness of this email and accept no responsibility for changes made to this email, after it was sent. Any liability for viruses is excluded to the fullest extent permitted by law. Any opinion expressed in this email may be personal to the sender and may not necessarily reflect the opinion of Allianz Global Investors UK Limited. We reserve the right to monitor all e-mail communications through our networks.

If you wish to unsubscribe from this mailing list, please visit our Preference Centre.