11th Aug 2025 10:18
(Alliance News) - Allianz Technology Trust PLC on Monday said the firm's return on net asset value beat its benchmark during the first-half, despite being lower than the previous year.
The London-based investor in medium to large-scale tech companies posted a NAV per share of 471.8 pence at June 30, up 2.9% from 458.6p at December 31. However, the trading discount widened to 10.1% at June 30 from 8.6% at December 31. For the six months that ended in June, Allianz Technology saw a total NAV return of 2.9%, compared with 28.0% in the first half of 2024.
Profit attributable to shareholders was GBP44.9 million, down from GBP363.4 million on-year.
The firm said its comparator, the Dow Jones Technology Index, recorded a negative 0.2% sterling adjusted return for the six-month period, swinging from a positive 27.0% return the year prior.
Both Allianz Technology and its benchmark were hit by US tariffs which "rattled markets and raised the spectre of a broader economic slowdown," according to the tech investor.
"While some of the more extreme tariff proposals were subsequently postponed, the policy environment remains fluid. The technology sector, with its global supply chains and cross-border dependencies, has been especially sensitive to these developments," Allianz Technology continued.
"However, there are also emerging positives: deregulation in certain areas and a renewed push for domestic energy independence in the US may ultimately benefit high-performance computing and [AI] infrastructure - both of which are energy-intensive and central to the sector's long-term growth."
The firm described AI as a "secular theme" whilst growth across the wider tech sector is "uneven": "Entertainment stocks surged, semiconductors posted modest gains and software and IT services advanced slightly. In contrast, technology hardware stocks declined sharply, reflecting macroeconomic caution and tariff-related headwinds. Market leadership also broadened somewhat, with mega- and large-cap stocks outperforming, while 'super-mega caps'...lagged."
Portfolio Manager Mike Seidenberg cited lack of exposure to Microsoft Corp and semiconductor chip-maker Nvidia Corp as detracting from the trust's performance, as both stocks enjoyed first-half gains.
The trust added that buybacks remain a focus as it tries to keep a lid on its trading discount. Around 6.9 million shares were repurchased at an average discount of 9.7% during the first half, plus an additional 1.5 million between June 30 and Monday, all of which are held in treasury.
"We remain committed to using this tool judiciously to reduce volatility," Allianz Technology said.
In the long-term, the trust maintains that "structural trends within the technology sector remain robust...even if near-term spending patterns may be influenced by macroeconomic caution." Still, the investor noted that AI-related enthusiasm "has at times led to elevated valuations" which may not necessarily be reflected in earnings.
Allianz Technology were 0.2% higher at 461.58p on Monday morning in London, and have risen 29% in the past year.
By Holly Munks, Alliance News reporter
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