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

March 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) for five of the past six years from 2017 to 2021.*

Monthly Fact Sheet

Welcome to our latest monthly fact sheet, featuring data and commentary as at 31.03.2023

Portfolio Overview

The Allianz Technology Trusts Net Asset Value (NAV) total return was 6.76% in March, compared to the Dow Jones World Technology Index return of 8.66%. 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 e-commerce ad spend. The company noted that it will focus on driving efficiencies in some areas, while contemplating revenue growth in others. This is evident in the companys revised data center plans, where Meta is focused on costefficiency and flexibility. This is a very welcomed change as Metas high level of spending has been a concern for several years. Additionally, Reels plays doubled year-over-year, and Meta expects Reels usage to be a neutral monetisation headwind at the end of 2023 or early 2024. Reels has been a significant revenue challenge, and this improvement should contribute to more stable revenue growth over time.

Okta, Inc. delivered strong results for the quarter, beating expectations for revenue and pro forma Earnings per Share (EPS). The company also generated record free cash flow of $72 million as management tightly controlled costs. Outperformance was driven by strong demand, solid execution, and improvement in its go-to-market business performance. Customer attrition rates were at more normalised levels for the second quarter in a row despite transitioning sales leadership. The company is making a conscious effort to reduce costs, while also supporting a return to higher growth in fiscal 2025. Operating leverage is expected to come from previously announced headcount reductions, tight expense controls, and increased sales productivity as the sales teams mature. In our view, the company has likely corrected many of the sales execution challenges that impacted the business last year and has set expectations at prudent and conservative levels for fiscal 2024.

Other top contributors included not owning Qualcomm Inc., International Business Machines Corp. and Infosys Ltd.

Detractors

Pure Storage delivered mixed fourth-quarter results, missing revenue expectations but topping Earnings per Share (EPS) estimates. Furthermore, guidance for fiscal 2024 came in well below expectations as the company saw pronounced pressure on pipeline aging starting in January as customers entered a new budget cycle. Given the poor outlook, we decided to exit our position as the company works through these challenges. We will continue to monitor the companys progress over time.

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.

Other top detractors included overweights in Gitlab, Inc., Marvell Technology, Inc. and Zscaler, 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 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.

Active is:

With regards,

Allianz Global Investors GmbH

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

www.allianztechnologytrust.com

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