Allianz Technology Trust PLC on Thursday said its total return for 2024 just missed its benchmark index, as it neared double-digit gains on its investments.

The tech sector-focused investor said pretax profit was £461.0 million for 2024, rising 9.5% from £421.1 million in 2023. This was due to its fair value gains on investments growing 9.0% to £462.9 million from £424.8 million.

Income for the year improved 22% to £6.6 million from £5.4 million. Investment management & performance fees were up 28% to £8.8 million from £6.9 million, and administration expenses increased 20% to £1.2 million from £1.0 million.

Its net asset value total return was 35.6%, falling slightly short of the 35.8% return seen on its benchmark, the Dow Jones World Technology Index.

‘There is no doubt that change within the technology sector will continue at pace. Our job is more nuanced though - decoding how this will translate into business growth and profitability for companies - and so ultimately into their share prices,’ said Chair Tim Scholefield.

‘The technology sector can be prone to the wildest swings in sentiment based on short term news flow and whilst those companies at the forefront of growth undoubtedly deserve to trade on higher multiples, we are seeing more instances in which valuations have become overextended. Against this background a sense of balance is needed.

‘We truly believe in the long-term potential of the sector, however in the short term it feels there could be an increasing risk of market corrections and setbacks along the way. At ATT we remain focused on the task at hand: creating a portfolio which we believe has the strongest potential for growth over the long term, for those shareholders who entrust us with their money.’

Shares in Allianz Technology Trust were down 0.7% at 368.25 pence in London on Thursday morning. The stock remains up 6.3% over the past year.

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