Performance, Commentary & Portfolio

Fund Manager’s Review

Portfolio overview

Allianz Technology Trust performance was higher in August, slightly outpacing the Dow Jones World Technology Index on both a gross- and net-of-fees relative basis. Allianz Technology Trust’s Net Asset Value (NAV) total return was 4.41% in August, compared to the Dow Jones World Technology Index return of 4.17% in GBP.

August saw global equities move higher overall, despite continued volatility from geopolitical tensions surrounding Iran, the Strait of Hormuz, and shifting U.S. policy. Investor sentiment was also influenced by changing expectations for monetary policy and ongoing volatility in artificial intelligence-related stocks. Within technology, software and information technology services stocks posted double-digit gains thanks to improving investor sentiment which drove an industry rotation. Semiconductors and technology hardware posted mid-single-digit gains while the interactive media and services industry was lower for the month.

Monthly relative performance was aided by industry allocation impacts, which was partially counterbalanced by more conservative stock selection. Overweight allocations and bottom-up picks in software and information technology services led relative gains, which was offset by relative underperformance in semiconductor and technology hardware industries.

Contributors

Our active overweight to Atlassian Corp., a collaboration, software development, and work-management platform, led relative gains as shares rallied following a strong earnings report that eased concerns around AI disruption and highlighted accelerating cloud adoption and AI-driven product demand.

Palantir Technologies Inc., a provider of AI-powered data analytics and software platforms for government and commercial customers, surged on exceptionally strong results and outlook, reinforcing confidence in accelerating AI adoption and commercial growth.

A meaningful above-benchmark weight in cloud-based enterprise workflow and IT management software platform ServiceNow, Inc. contributed to results thanks to a recovery in software stocks and renewed confidence that AI will enhance rather than displace select enterprise software demand.

Shares of MongoDB, Inc., a cloud-based database platform used to build and operate modern applications and AI workloads, benefited from optimism around AI-driven database demand and continued Atlas growth, as well as the broader rotation back into software stocks.

Our active position in CrowdStrike Holdings, Inc., a provider of cloud-native cybersecurity solutions spanning endpoint, identity, cloud, and security operations, rose following strong results and guidance, with accelerating AI adoption and increasingly sophisticated cyber threats reinforcing demand for modern security platforms.

Detractors

Shares of Monolithic Power Systems, Inc., a semiconductor power-management solution provider for data centres, AI systems, communications, and other electronics, were pressured by profit-taking and broader semiconductor volatility after strong prior performance, with elevated expectations leaving the stock vulnerable despite solid underlying demand and an upbeat enterprise-data outlook.

Our position in cloud observability and security platform Datadog, Inc. detracted from relative results as shares declined following earnings, with concerns over lower usage from a major AI customer weighing on near-term growth expectations despite otherwise strong results and continued product momentum.

A relative overweight allocation to Western Digital Corp., a provider of hard-disk drives widely used in data centers and AI infrastructure, detracted from results as shares declined despite strong earnings, with investors viewing the outlook as insufficient to meet elevated expectations following the stock’s significant prior appreciation, prompting profit-taking.

A below-benchmark allocation to Nvidia Corp., a leading semiconductor and AI infrastructure company, detracted from relative results as the company’s share price rose following strong earnings and an upbeat outlook reinforced confidence in sustained AI infrastructure demand and Nvidia’s continued leadership in the AI computing ecosystem.

Our position in Amazon.com, Inc., an e-commerce platform and Amazon Web Services (AWS) cloud infrastructure provider, offset performance as shares were pressured amid concerns around heavy AI-related capital spending and regulatory concerns after the Federal Trade Commission’s (FTC) announced a lawsuit over alleged advertising practices.

New buys and sells 

Turnover in August was undertaken at a typical level to incrementally adjust the risk versus reward profile. We newly purchased shares of Figure Technology Solutions, Inc., a blockchain-native financial technology platform that digitises lending and capital markets, given its attractive exposure to the secular digitisation and tokenisation of financial assets, amid expectations of outsized growth and potential valuation upside as the platform scales. We also purchased shares of Unity Software Inc., a leading platform for creating and monetising interactive content, which we believe is well positioned to benefit from AI-driven efficiencies that lower the cost and complexity of game development, spur greater content creation and new entrants, and support accelerating growth and meaningful upside at an attractive valuation. There were no new sells in the portfolio during the month.

Market outlook 

We continue to have a favourable viewpoint on the technology sector, supported by durable AI-driven demand, favourable earnings trends, and expanding evidence of monetisation across both infrastructure and software layers. August earnings across the technology ecosystem were broadly encouraging, reinforcing confidence in resilient enterprise spending and improving earnings visibility. Concerns around AI disruption in software continued to ease as investors focused on productivity gains, accelerating adoption, and the ability of software and IT services companies to capture AI-driven value. While AI infrastructure and semiconductors remain key longterm beneficiaries, market leadership continued to broaden toward software and IT services, reflecting greater confidence in durable software growth and the broader technology cycle. Valuations have strengthened following recent gains, but remain supported by a multi-year growth outlook, improving free cash flow generation, and continued innovation among leading technology companies.

Our focus remains on building the portfolio from a bottom-up perspective with a macro overview. Technology remains a key enabler across almost every vertical industry and we will continue to seek stocks which solve difficult problems and can be long-term outperformers. We believe earnings growth ultimately drives stock prices over the long term, and in our view, we are still early in the spending trend supporting this dynamic segment.

Mike Seidenberg
10 September 2026

This is no recommendation or solicitation to buy or sell any particular security. Any security mentioned above will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.

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