For immediate release                                                  

12 March 2025

ALLIANZ TECHNOLOGY TRUST PLC

LEI: 549300OMDPMJU23SSH75

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2024

The following comprises extracts from the Company's Annual Financial Report (AFR) for the period ended 31 December 2024. The full AFR is available to be viewed on or downloaded from the Company's website at www.allianztechnologytrust.com. Copies will be posted to shareholders shortly.

For further information contact:

Tim Scholefield         Stephanie Carbonneil                 Kelly Nice

Chairman                  Head of Investment Trusts         Company Secretary

Telephone:

020 3246 7000          020 3246 7539                           020 3246 7000

MANAGEMENT REPORT

Highlights:

·      Strong absolute performance - Net Asset Value per share (NAV) increased by 35.6%, marginally behind the 35.8% return of the benchmark.

·      Keeping pace with the benchmark without resorting to holding index weights in the largest companies is a 'win' in the Board's view as it means the Company has broadly matched that performance without exposing shareholders to excessive concentration risk.

·      Share price increased by 38.1% as the discount narrowed slightly over the period.

·      There is no doubt that change within the technology sector will continue at pace. Whilst in the short term it feels there could be an increasing risk of market corrections and setbacks, at ATT we remain focused on creating a portfolio which we believe has the strongest potential for growth over the long term.

Chairman's Statement

Welcome

Welcome to this report on Allianz Technology Trust PLC for the financial year ending 31 December 2024. In recent times global macroeconomic and geopolitical shocks have seemed commonplace and so it was something of a relief that 2024 passed without major global upset. 2024 was, however, notable for the numerous elections across the globe. In the UK the general election saw the return of the first Labour government since 2010 and in the US, Donald Trump returned to the White House for a second term. The macroeconomic environment was on the whole supportive, in particular central banks were successful in their efforts to tame excessive inflation. Against this backdrop equity markets did manage to generate good returns with technology companies continuing to lead the pack.

A detailed look at economies, rates and markets leads off the Portfolio Manager's Report and I recommend you read that for its detail and nuance.

Backdrop

That technology intertwines all our lives is indisputable and 2024 showed some incredible and sometimes disturbing examples of this. AI continues to dominate headlines - there is no doubt that this is an amazing technology with the potential to have a huge impact on society. However, we are in frontier territory and ultimate long-term winners in the AI race may not yet even exist.

What is certain is that technology is most often the 'edge' and that means a consistency of demand for products, services and ongoing innovation. It is that which keeps the sector so dazzlingly alive, along with an ecosystem of incomprehensibly talented inventors, scientists, engineers and entrepreneurs who work tirelessly towards the next generation of technology. This whilst most of us are simply trying to absorb the changes already in front of us!

Performance

Technology was once again a leader of stock market returns. Yes, global markets progressed strongly and would have netted investors around 20% for the year (source: FTSE World Index (total return)). However, the Company's benchmark index would have brought you over 35% and of course, the dominance of the sector is such that a big part of the return from the global indices came from technology companies.

So, what are some of the underlying drivers of performance? The 'Magnificent Seven' (Amazon, Alphabet, Apple, Microsoft, Meta, Nvidia and Tesla) between them returned around 60% - a continued dominance at a headline level, although delving down there was a mix of extraordinary and more lacklustre returns. There were further strong returns seen from a wider range of technology companies this year and in terms of our own performance this meant that our Investment Manager was able to keep pace with our benchmark index without necessarily having to hold index weights in the largest companies. For details of the key stocks that either aided or held back our relative performance, please do read the details outlined in the Portfolio Manager's Report.

I am pleased to report that shareholders saw a second successive year of strong returns. The Company's Net Asset Value (NAV) total return was 35.6%, while a narrowing in the discount to NAV resulted in a higher share price total return of 38.1%. The NAV return was marginally behind the 35.8% return of our benchmark, the Dow Jones World Technology Index (sterling adjusted, total return). Keeping pace with the benchmark without resorting to holding index weights in the largest companies is a 'win' in our view as it means we have broadly matched that performance without exposing shareholders to excessive concentration risk. We will not lose sight of the important part that risk management plays in the active portfolio management 'equation' and our focus on extracting value for shareholders from a wider, more balanced and diversified selection of companies than simply the mega-capitalisation stocks remains key for ATT. An example of this came in late January when some news flow from China relating to the AI application DeepSeek sent the price of many AI related stocks markedly lower on 27th - in particular Nvidia lost almost half-a-trillion USD market capitalisation and went from the world's most valuable company to third on that day alone with a near 20% fall. Being active means that we did not hold an index weight in the stock (roughly 3.5% below). In the following days the stock recovered the majority of the fall as investors digested the situation.

As in previous years we have not proposed a dividend for the year ended 31 December 2024. It is common for technology companies not to pay a dividend, moreover the yields of those that do are typically small by comparison with non-technology companies.

Discount

The Company traded at an average discount of 10.4% over the period (low of 3.8% and high of 14.8%). It was encouraging to see the discount narrow from 10.3% at the start of the year to 8.6% at year end, nevertheless the Board is very aware that the discount could be a source of frustration to shareholders.

2024 marks a third successive year in which ATT has been at a discount, in contrast to the prior three years in which we typically traded at a premium to NAV. I have previously commented that the Board's view is that the discount in recent times is the result of broad macroeconomic and structural challenges rather than company-specific concerns; this remains our view.

We have reached this conclusion by examining the pattern of discounts across the whole investment trust sector as well as those of our competitors. We are confident that the widening in discounts seen in the past three years has its roots in the tighter monetary conditions which followed the global surge in inflation in 2021. It is perhaps also worth keeping in mind that the UK equity market has for some time now remained 'cheap' by global standards.

All that said, what is the Board's response to the persistent discount? Our focus is on three areas. First, we continue to use the powers available to us to buy back shares. Our policy in respect of buying back shares remains unchanged. We would consider buying back shares where the discount is consistently over 7% and we judge it appropriate to do so given the prevailing market backdrop. In the financial year we bought back an aggregate 9,015,787 shares at an average discount of 11.3% and total cost of £32.0m. Since the end of the financial year, up to 12 March 2025 we have repurchased a further 2,729,344 shares at an average discount of 10.3% and total cost of £11.5m. At the forthcoming AGM, the Board will once again seek authority to buy back up to 14.99% of the shares in issue. Any buy back of shares will only take place where we believe it to be beneficial to shareholders.

Second, our differentiated investment process was unchanged. We remain firmly of the view that 'sticking to the knitting' and executing our long established and successful investment approach provides a compelling basis for achieving long-term capital growth for shareholders.

Third, we continued with our activities to promote the Company and the attractive investment opportunity provided by the technology sector. Long-term demand generation is our favoured strategy in the face of a reticent market. Our promotional activities will cover a range of different channels and we will continue to make creative use of technology in our efforts to grow our shareholder base. ATT has an enviable track record which has been recognised by numerous awards, and I am confident that our promotional efforts in the next twelve months will help grow demand for our shares.

Artificial Intelligence (AI)

AI continues to be a headline theme within our portfolio. There is no doubt of the transformative power of this technology and the tremendous opportunities for those companies that are successful in developing or implementing AI. That said, AI's frenetic development brings its own risks. Picking the winners in the AI race is challenging. We are becoming more and more aware of AI's potential 'dark side', its scope to be misused whether it be in creating 'deep fakes', plagiarism or cyber-attacks. Moreover, the AI race is global in nature and yet there are few signs that effective transnational regulatory standards are close at hand.

In this context ATT's focus is on balancing the opportunities and the risks. For the Investment Manager this translates into a strong focus on companies that are making money from the technology now (many aren't), as well as those most likely to mature into that position. Our investment team carefully assesses risk on a stock-by-stock, 'bottom-up' basis when considering new additions to the portfolio and in their monitoring of existing holdings. For the Board, this is reflected in our perspective on governance. Consequentially we have met with external subject matter experts and we strongly support efforts to strengthen regulation surrounding the use of AI. In my view, our focus on governance, risk management and the differentiated investment approach previously discussed are distinctive features of our actively-managed investment trust structure.

The costs of running your Company

Your Board has maintained its close attention to the costs of running the Company. The Company's Ongoing Charges Figure (OCF), which is calculated by dividing ongoing operating expenses by the average NAV, has fallen to 0.64% (2023: 0.70%). I am pleased to report that the Company has the lowest OCF within its AIC peer group (Technology & Technology Innovation).

The OCF excludes any performance fee due to the Investment Manager. The performance fee is subject to various performance conditions which were not met in 2024 and as a consequence no performance fee was earned. The various performance conditions are set out in detail in the Directors' Report on page 26.

Board matters

In 2024 the Board visited our Investment Manager in California. This is a key part of our governance programme which we aim to undertake once every two years. We completed a deep-dive analysis of the investment process, portfolio and the investment team as part of our regular due diligence. We also met with a sample of our portfolio companies which are located in the area and these meetings certainly reinforced the Board's view that the technology sector has tremendous potential for long term growth.

As previously reported, at the conclusion of the 2025 AGM Elisabeth Scott will step down from the Board, having served since 2015. We thank Elisabeth for her significant contribution to the Company's development over the past ten years and her part in its considerable growth over that time.

Although outside of the reporting period, we are pleased to announce the appointment of Lucy Costa Duarte as a non-executive Director on 1 January 2025. Lucy also joined the Audit and Risk, Management Engagement, Remuneration and Nomination Committees. Lucy brings a wealth of marketing and investor relations experience, and we are therefore delighted that she has joined the Board.

Annual General Meeting (AGM) arrangements

This year's AGM will be held on 23 April 2025 at 2.30pm. The full Notice of Meeting can be found on page 72. Full details of the special business to be considered at the AGM can be found on pages 30 to 31.

As with 2024, the AGM will be a hybrid meeting, meaning shareholders can either attend physically or online. We strongly encourage all shareholders to submit their votes by the deadline of 17 April 2025 as detailed in the Notice of Meeting on page 72. Those shareholders attending virtually will be able to view the AGM and submit questions electronically.

If you are an ATT shareholder through a platform which offers the opportunity to vote, then we encourage you to take advantage of those arrangements to cast your votes and thus have your say in the running of your Company. It is also possible for you to attend the AGM: all you need to do is to request a 'Letter of Representation': or click 'Attend meeting' on the voting options page. We also commend and support the Association of Investment Companies' (AICs) efforts to further improve the enfranchisement of retail shareholders who hold their shares through an investment platform or other nominee service, with their newly launched "My share, my vote" campaign, targeting a change in company law. You can view details of this campaign at www.theaic.co.uk/my-share-my-vote and follow instructions on how to cast your vote via platforms at www.theaic.co.uk/how-to-vote-your-shares.

The Board encourages shareholders to attend the AGM if possible. A presentation by the lead portfolio manager will be made at the start of the meeting. For those unable to attend either physically or virtually, a recording of the AGM will be posted to the Company's website as soon as practicable after the event.

The Board looks forward to welcoming shareholders to this year's event.

Outlook

It remains as difficult as ever to predict the macroeconomic direction of travel for the year ahead. What is probably not in doubt is that shocks to the system and associated volatility continue to be significant risks; even as I write, during the early weeks of the new Trump administration, talk of tariffs and trade wars are causing unease.

That said 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. 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.

Tim Scholefield

Chairman

12 March 2025

Portfolio Manager's Report

What has been the economic backdrop in 2024?

At the start of 2024, a raft of major elections threatened significant volatility for economies and financial markets. In the end, most elections passed without incident, although the ramifications of a new policy agenda in the United States are not yet clear and could be a disruptive force in the year ahead. Fragile geopolitics has undoubtedly remained a source of instability, but for the most part, the economic backdrop has been stable.

The International Monetary Fund (IMF) estimates global economic growth at 3.2% for 2024, just 0.1% lower than 2023 and forecasts 3.3% for 2025. Economic activity has been helped by an easing of inflation, which has dropped towards official targets, allowing central banks across the world to cut interest rates. Supply chain pressures have eased, and consumer confidence has been sustained. At the same time, megatrends such as artificial intelligence (AI) have supported corporate spending.

What has been happening to interest rates?

Canada became the first G7 nation to cut rates, with the European Central Bank swiftly following in June. The US Federal Reserve (Fed) finally acted in September, surprising the markets with a 0.5% reduction: it cited growing concerns over the health of the US labour market. This was followed by two 0.25% cuts in November and December. However, at its last meeting of the year, the Fed warned it would slow the pace of rate cuts in 2025, with the minutes suggesting it was "at or near the point at which it would be appropriate to slow the pace of policy easing".

Japan was the only major country to buck the trend for falling rates, finally exiting its below-zero interest rate policy. By the end of the year, there were tentative signs of a revival in inflation in the US, and bond markets began to pare back expectations for significant further rate cuts in the year ahead.

Have there been any notable trends across currency and commodities markets?

The US dollar appreciated for the first half of the year as the domestic economy continued to show resilience in the face of higher rates. As recessionary fears mounted in the summer, the dollar weakened, before rebounding as these fears appeared overblown. Donald Trump's victory and the Fed's more cautious stance on future interest rate cuts provided a further boost, with the Dollar Index, a measure of the currency's strength against its major trading partners, hitting a two-year high. While the Japanese yen weakened against the dollar, it appreciated against the euro, reflecting a growing divergence on interest rate policy between the two economies.

Commodity prices were mixed. Rising geopolitical tensions in the Middle East pushed oil prices higher in the early part of the year, with Brent crude nearing $90 a barrel, compared to just under $80 at the start of the year. However, prices later eased back towards $70 a barrel given abundant supply. In contrast, gold prices soared, reaching a fresh record high of almost $2,800 an ounce in late October. Demand was supported by central bank buying.

How have stock markets performed over the year?

It was a strong year for global equity markets in 2024, with the MSCI World Index gaining 19.2% over the year, after rising 24.4% in 2023. Markets were supported by the fading risk of a US recession and the turn in interest rate policy. Stock markets were also given a boost in November with a victory for the Republican party in the US elections. Investors are anticipating that a blend of tax cuts and regulation will boost corporate earnings in the years ahead.

At a sector level, excitement around AI continued to support the 'Magnificent Seven' (Amazon, Alphabet, Apple, Microsoft, Meta, Nvidia and Tesla), which delivered a return of over 60%. Nevertheless, there were nuances within this. Nvidia, for example, comprehensively outpaced its peers, after delivering strong earnings through the year. Elsewhere, it was also a strong year for consumer discretionary and financials stocks. In contrast, materials and healthcare were the weakest sectors in the MSCI All Countries World Index.

Towards the end of the year there were signs of a broadening out of market leadership. The Russell 2000, for example, which focuses on small and medium sized US companies, rallied in the immediate aftermath of Donald Trump's election victory, with investors hoping his policy agenda would support smaller, more domestically focused companies.

Has AI continued to advance?

Yes, there has been progress in AI-powered tools and applications impacting chips, software, hardware, and other technology industries. Generative AI, which uses artificial intelligence to create new content, saw a significant spike in interest, with a notable increase in job postings and investments. The capabilities of large language models expanded, processing larger amounts of data across multiple media such as text, images and video.

Where else have you seen growth?

Cybersecurity remains a crucial sector. 2024 saw a range of new threats emerging, including the rise of AI-powered attacks. AI was used for automated phishing, malware generation and sophisticated social engineering campaigns. Security teams have met fire with fire, deploying AI-driven tools to detect anomalies and automate responses. The adoption of Zero Trust Architecture and the focus on cloud security were also notable trends.

Cloud computing has been a long-running theme in the portfolio. Cloud computing provides seamless access to servers, networks, storage, development tools and applications via the internet. Instead of companies' significant investments in equipment, training and infrastructure maintenance, cloud service providers assume these responsibilities. This allows companies to 'right size' technology infrastructure to business needs rather than going through costly investment cycles. The migration to cloud computing continued to grow, with 65% of technology decision-makers anticipating an increase in cloud spending over the next year.

We would also highlight the Internet of Things (IoT) and 5G. The IoT connects devices and systems, enabling them to communicate and share data. This connectivity is used in homes, cities and industries, delivering smarter, more efficient operations. It is used in agriculture, for example, to monitor climate patterns and adapt fertiliser or pesticide use. 5G, the fifth generation of wireless technology, provides the high-speed connectivity needed to support the massive data exchange and real-time communication required by IoT devices.

It was an astonishing year for the Bitcoin price, which rose over 100% in 2024. Are there opportunities in blockchain and cryptocurrencies?

Certainly, both have the potential to disrupt a number of industries and financial systems. Blockchain technology provides a decentralised and secure method to record transactions, which can enhance transparency, reduce fraud and improve efficiency. Cryptocurrencies, on the other hand, offer an alternative to traditional financial systems, enabling peer-to-peer transactions without the need for intermediaries.

How has the Company performed over the year?

The Company's NAV rose by 35.6% for the year to 31 December 2024. This was marginally behind its benchmark, the Dow Jones World Technology Index (sterling adjusted, total return), which rose by 35.8%. Once again, the strength of the 'Magnificent Seven' and their dominance in the index made it difficult to beat without exposing our shareholders to excessively large positions in potentially volatile stocks. We typically hold below index weights in these stocks to avoid concentration risk in the portfolio. Nevertheless, the AI trend remains a strong one. These mega-themes do not come around very often, and when one emerges, we believe in sticking with it.

The semiconductor sector was an important contributor to overall returns. While Nvidia saw strong gains, it did not contribute to relative returns because we had a below benchmark weight (10% versus 12%) due to risk management constraints. More important for relative returns were our weights in companies such as Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom, which returned 95.4% and 114.2% respectively. TSMC is not in our benchmark, and we had almost double the index weighting in Broadcom.

The largest sector contribution came from our holding in software companies. We had an overweight position in the portfolio (relative to the benchmark), and our stock picking approach was strong. Holding an underweight position (relative to the benchmark) in hardware companies also contributed to relative returns. Weakness has tended to come in idiosyncratic areas, rather than from any major themes. However, IT services was a difficult area for the Company over the year.

It is also worth noting that concentration in the top 10 stocks has increased over the past three years. The dominance of the 'Magnificent Seven', coupled with a narrow technology market has seen us use a larger amount of capital to invest in some of the mega caps. This was done to preserve performance, knowing that as the market broadens out, we will use capital from these larger positions and redeploy it into new names among large and mid cap companies.

What were the major stock highlights over the year?

Palantir Technologies provided the largest relative contribution to the portfolio over the year. It was a new buy in August. We liked the company's leadership position in big data and in the field of data analytics, with a range of products and services. Shares rallied on the continued momentum for AI-related applications as well as news that it would be added to the S&P 500 Index. This should increase liquidity in the stock. We continue to hold it, with the shift in IT spending towards AI showing few signs of weakness.

Microsoft was the one weak spot among the 'Magnificent Seven' over the year. We had a significant underweight position versus the benchmark - 8.2% against 14.6%. The group remains a world leader in software, cloud storage and security solutions, and an undoubted pioneer in AI. However, its earnings statement was accompanied by lower forward guidance amid capacity constraints and moderating growth, and as a result we currently intend to maintain a structural underweight.

The final position of note was in Intel Corp. We had an underweight position in this legacy chip maker and then exited it in full at the start of February. Its shares were hit by weaker-than-expected earnings and a lacklustre forecast. The company has lagged behind several of its chip-making rivals in terms of revenue and innovation. The departure of the company's CEO created further uncertainty toward the end of the year. We keep an eye on the stock, but other chip makers have better exposure to AI and other leading technologies. In our view, once a company is behind in the semiconductor industry, it is difficult to catch up.

Recent new holdings have included Marvell Technology, a developer and producer of semiconductor and related technology across security and networking platforms, secure data processing and storage solutions. It is making important strides in improving the design of its chips and is attracting interest from the hyperscalers. Point-of-sale, cloud-based restaurant management software maker Toast is another recent buy as the company made some interesting product developments. Social networking platform Reddit was another buy in the latter half of the year, plus Paypal, where a revamped management team and new product platform are helping it gain market share.

Another purchase of note was Atlassian Corp, a designer and developer of an enterprise software platform for project management, collaboration and support services. It continues to see a strong pipeline of growth, with product upgrades and migrations to its cloud business.

Where were the weak spots for the Company?

Our largest detractor was MongoDB, a document database provider which allows the storage of structured or unstructured data. This makes the development of applications more agile. However, its shares dropped after it issued a weaker-than-expected outlook. This combined with some overall weakness in the software sector. The company's more cautious stance on growth reflects an overall softening of IT spending among clients and some near-term sale execution challenges. We trimmed our exposure to the stock during the period.

Zscaler also had a tough year. The group is a leader in security-as-a-service offered via a cloud-based security platform. While earnings were strong, the market had hoped for more and the company could not sustain its valuation. The retirement of the company's CFO created uncertainty around expectations and customer acquisition slowed. We view this as a case of expectations running ahead of the earnings and continue to hold shares given the company's strong leadership position.

Infrastructure software solutions maker Snowflake was another detractor from performance over the year. The shares were lower following a disappointing sales forecast. The company is facing greater competition in its core data warehouse market business. Investors were also worried about the news that the company's CEO was stepping down from the role. We reduced our exposure to the stock during the year in favour of companies with better earnings visibility.

What are you looking forward to in 2025?

AI is creating a new wave of technology innovation every bit as exciting as the Internet. AI has the power to reshape the global economy, changing the way companies operate. This year promises even more groundbreaking AI developments, plus favourable regulatory changes and rapid digitalisation.

In 2025, we expect AI spending to shift from infrastructure development to include more software and services as the use cases for AI emerge and expand. This expansion should drive efficiency gains, spark innovation and create new business models. For example, autonomous systems such as self-driving cars, drones, and robotics have the power to revolutionise transportation, logistics, national security, medical treatment and factory production.

In cybersecurity, AI is becoming a powerful tool to detect anomalies, predict threats and automate responses to attacks. In advertising technology, AI is delivering personalised consumer experiences, optimising advertising spending and creating dynamic advertising campaigns that are faster, better targeted and more cost-efficient.

The year ahead is likely to see both headwinds and tailwinds as the new US administration policies could be more unpredictable than previous administrations. On the one hand, we are likely to see more merger and acquisition activity as interest rates trend downward and the US welcomes a more relaxed regulatory environment and companies are gearing up for strategic acquisitions to fuel growth and expand market share. Conversely, businesses like predictable policies which provide clarity and things like tariffs can create pause in the spending environment. 

There may be more volatility in the semiconductor sector in the year ahead as a result of geopolitical tensions, policy shifts and supply chain disruptions. Restrictive export controls, tariffs and national security concerns may conspire to create a bumpy ride for the sector in 2025. However, this volatility also presents opportunities. AI-driven data centre spending is strong and supply-constrained in key areas, while cyclical semiconductor companies (including personal computers, handsets and industrial companies) with limited AI exposure are navigating an inventory correction, and there is the potential for a recovery later in the year.

The momentum from key growth trends such as AI and digitalisation, coupled with a more favourable regulatory environment and a boost in merger and acquisition activity, should support the technology sector in the year ahead. Looking even further ahead, exciting developments in areas such as quantum computing, augmented reality, artificial general intelligence and space exploration are on the horizon. However, this needs to be tempered with the risks around geopolitics and supply chains and highlights the need for disciplined risk management.

Our focus is on building the portfolio from a bottom-up perspective with a macro overview. Technology is a key enabler across almost every industry, and we will continue to seek out stocks that solve difficult problems and deliver long term share price growth.

Mike Seidenberg

Lead Portfolio Manager

Voya Investment Management Co LLC

12 March 2025

Viability Statement

In accordance with the Corporate Governance provisions the Company is required to make a forward looking (longer term) Viability Statement. In order to do this the Board has considered the appetite for a technology investment trust against the current market backdrop, and has formally assessed the prospects for the Company over a period of five years. The Board believes that the period of five years is appropriate and is in line with the five year continuation vote. The next continuation vote will be put to shareholders at the AGM in 2026. In order to assess the prospects for the Company the Board has considered:

-      The investment objective and strategy taking into account recent, past and potential performance against both the benchmark, other indices of note and peers;

-      The financial position of the Company, which does not currently utilise gearing in any form but does maintain a portfolio of, in the main, non-income bearing investments;

-      The liquidity of the portfolio and the ability to liquidate the portfolio on the failure of a continuation vote;

-      The macro economic conditions and geopolitical events;

-      The ever increasing level of technology adopted by both individuals and corporations alike;

-      The inherent risks in such technology both in terms of speed of advancement; and

-      The principal risks faced by the Company as outlined below.

The Board is fully aware that the world of technology is constantly evolving and growing and could potentially look very different in five years. However, based on the results of the formal assessment, through regular updates from the AIFM and the Investment Manager, the Board believes it is reasonable to expect that the Company will continue in operation and meet its liabilities for the period of five years under this review.

Investment Controls and Monitoring

The Board in conjunction with the AIFM and the Investment Manager has put in place a schedule of investment controls and restrictions within which investment decisions are made. These controls include limits on the size and type of investment and are monitored on a constant basis. They are formally signed off by the AIFM and the Investment Manager every month and are reviewed by the Board at every meeting.

Principal & Emerging Risks and Uncertainties

The principal risks identified by the Board are set out in the table below, together with information about the actions taken to mitigate these risks. A more detailed version of this table in the form of a Risk Map and Controls document is reviewed in full and updated by the Audit & Risk Committee and Board at least twice per year. Individual risks, including emerging risks and threats to reputation, are considered by the Board in further detail depending on the market situation and a high-level review of all known risks faced by the Company is considered at every Board meeting. The principal risks and uncertainties faced by the Company relate to the nature of its objectives and strategy as an investment company and the operations of its third party service providers.

In addition to the specific principal risks identified in the table above, general risks are also present relating to compliance with accounting, legal and regulatory requirements, and with corporate governance and shareholder relations issues which could have an impact on reputation and market rating. Management of the services provided and the internal controls procedures of the third party providers is monitored and reported on by the AIFM to the Board. These risks are all formally reviewed by the Board twice each year and at such other times as deemed necessary. Details of the Company's compliance with corporate governance best practice, including information on relations with shareholders, are set out in the Corporate Governance Statement within the Directors' Report beginning on page 34 of the Annual Report. The Board's review of the risks faced by the Company also includes an assessment of the residual risks after mitigating action has been taken.

On behalf of the Board

Tim Scholefield

Chairman

12 March 2025

Related Party Transactions

During the financial year no transactions with related parties took place which would materially affect the financial position or the performance of the Company.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Annual Financial Report and the financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the Company and of the total return of the Company for that year. In preparing these financial statements, the Directors are required to:

-      select suitable accounting policies and then apply them consistently;

-      make judgements and estimates that are reasonable and prudent;

-      state whether applicable UK accounting standards have been followed; and

-      prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Company will continue in business.

The Directors confirm that the financial statements comply with the above requirements.

The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, a Directors' Report, and Corporate Governance Statement, and a Directors' Remuneration Report which comply with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. The financial statements are published on www.allianztechnologytrust.com, which is a website maintained by the Alternative Investment Fund Manager. The work undertaken by the Auditor does not involve consideration of the maintenance and integrity of the website and, accordingly, the Auditor accepts no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Neither an audit nor a review provides assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular whether any changes may have occurred to the financial information since first published. These matters are the responsibility of the Directors but no control procedures can provide absolute assurance in this area.

The Directors each confirm to the best of their knowledge that:

 (a)       the Financial Statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and return of the Company; and

(b)        the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, along with a description of the principal risks and uncertainties that the Company faces.

The Directors confirm that the Annual Report and Financial Statements, taken as a whole are fair, balanced and understandable and provide the information necessary to assess the Company's position and performance, business model and strategy.

For and on behalf of the Board

Tim Scholefield

Chairman

12 March 2025