Allianz Technology Trust PLC has released its latest portfolio update for July 2024. The trust is managed by a highly experienced team with over 100 years of collective experience in managing technology strategies. It has a high conviction concentrated portfolio and has been recognized with the Investment Week Investment Company of the Year Award multiple times.
In July, the trust's Net Asset Value (NAV) total return was -7.40%, compared to the Dow Jones World Technology Index return of -4.30%. The technology stocks experienced a decline due to a rotation away from artificial intelligence (AI) and semiconductor-related companies, in favor of those with a lower valuation level, including IT services and technology hardware. Small cap stocks outperformed their mega and large cap counterparts.
The top performer for the month was Microsoft Corp., while Monolithic Power Systems, Inc. also rallied in advance of quarterly earnings results. However, a below-benchmark position in Apple Inc. and an above-benchmark allocation to CrowdStrike Holdings, Inc. offset results. The trust made new purchases in EPAM Systems, Inc. and SAP SE, while fully exiting its position in MongoDB in favor of companies with better strategic and growth opportunities.
The outlook for technology earnings results has been constructive for most companies, but there are growing investor concerns about the timing of the benefits from emerging secular themes, such as AI. The trust continues to have a constructive outlook and remains focused on long-term opportunities in the technology sector.