Annual Financial Report, 31 December 2021
Allianz Technology
Trust PLC
Investment objective
Allianz Technology Trust PLC (the Company) invests
principally in the equity securities of quoted technology
companies on a worldwide basis with the aim of
achieving long-term capital growth in excess of the Dow
Jones World Technology Index (sterling adjusted, total
return) (the benchmark).
Investment policy
The investment policy of the Company is to invest in a
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in an innovative way to gain competitive advantage.
Particular emphasis is placed on companies that are
addressing major growth trends with innovation that
replaces existing technology or radically changes
products and services or the way in which they are
supplied to customers.
What constitutes a technology stock
Technology has become a vast and diverse sector. It
encompasses those companies that sell technology
solutions – from cloud storage to component
manufacturers to software developers – but also those
for whom technology is an intrinsic part of their business
– the car makers or ecommerce groups using technology
to gain a competitive advantage. In this way, technology
stocks may sit across multiple sectors, including
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As technology becomes ever more pervasive, the lines
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are increasingly blurred. Even where companies aren’t
selling technology, technology may be intrinsic to their
success as a company. More companies are becoming
technology companies all the time as disruptive
innovation brings change and displaces incumbent
market leaders. The challenge is to understand not only
current technologies, but also future trends and the likely
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Asset allocation
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or regional weightings and aim to invest in the most
attractive technology shares on a global basis. The fund
managers aim to identify the leading companies in
emerging technology growth sub-sectors. The majority of
the portfolio will comprise mid and large cap technology
shares.
Risk diversification
The Company aims to diversify risk and no holding in the
portfolio will comprise more than 15% of the Company’s
assets at the time of acquisition. The Company aims to
diversify the portfolio across a range of technology sub-
sectors.
Gearing
In normal market conditions gearing will not exceed 10%
of net assets but may increase to 20%. The Company’s
Articles of Association limit borrowing to one quarter of its
called up share capital and reserves. As at 31 December
2021 there was no borrowing facility in place.
Liquidity
In normal market conditions the liquidity of the portfolio,
that is the proportion of the Company’s net assets held
in cash or cash equivalents, will not exceed 15% of net
assets but may be increased to a maximum of 30% of net
assets.
Derivatives
The Company may use derivatives for investment
purposes within guidelines set down by the Board.
Foreign currency
The Company’s current policy is not to hedge foreign
currency.
Benchmark
One of the ways in which the Company measures its
performance is in relation to its benchmark, which is an
index made up of some of the world’s leading technology
shares. The benchmark used is the Dow Jones World
Technology Index (sterling adjusted, total return). The
Company’s strategy is to have a concentrated portfolio
which is benchmark aware rather than benchmark
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higher than benchmark allocation to high growth, mid
cap companies which are considered to be the emerging
leaders in the technology sector. The Managers believe
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opportunity for outperformance over the long-term.
Key Information
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Overview
Contents
Overview
IFC Key Information
2 Financial Highlights
5 Chairman’s Statement
10 Why invest in technology?
Insights
16 The value of experimentation
16 Shortages and supply chain
disruption
16 Technology’s social implications
Investment Managers’ Review
18 Investment Managers’ Review
25 Top 20 Holdings
30 Investment Portfolio
Directors’ Review
34 Directors
36 Strategic Report
42 Section 172 Report:
42 Engagement with Key
Stakeholders
43 Environmental, Social,
Governance (ESG) Research and
Stewardship
45 Directors’ Report
51 Corporate Governance Statement
54 Report of the Management
Engagement Committee
55 Report of the Nomination
Committee
56 Report of the Remuneration
Committee
57 Directors’ Remuneration
Implementation Report
60 Directors’ Remuneration Policy
Report
61 Statement of Directors’
Responsibilities
62 Audit & Risk Committee Report
Financial Statements
66 Independent Auditor’s Report
to the Members of Allianz
Technology Trust PLC
74 Income Statement
75 Balance Sheet
76 Statement of Changes in Equity
77 Notes to the Financial Statements
Investor Information
92 Glossary of UK GAAP Performance
Measures and Alternative
Performance Measures
93 Investor Information
96 Notice of Meeting
16
2
33 65 91
Financial Highlights
Insights
Directors’ Review Financial Statements
Investment Managers’ Review
Investor Information
17
1
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Performance against sector average
1
Benchmark
+28.2%
2021 2,489.3
2020 1,941.1
Share price per ordinary share
+18.7%
2021 352.5p
2020 297.0p
Performance against benchmark
1
Financial Highlights
As at 31 December 2021
1250
50
Dec 11 Dec 21
% indexed
1250
50
Dec 11 Dec 21
% indexed
Allianz Technology Trust
2
Benchmark
3
Allianz Technology Trust
2
Sector average
4
Net assets per ordinary share
+19.4%
2021 347.9p
2020 291.3p
2
Overview
Shareholders’ funds (£m)
2017 2018 2019 2021
1,472.4
313.4
430.1
583.4
NAV versus benchmark
NAV per ordinary share (p)
2017 2018 2019 2021
2017 2018 2019 2021
347.9
Allianz Technology Trust
2
Benchmark
3
Premium (discount) of ordinary share
price to net asset value per share (%)
2017 2018 2019 2021
1.8
1.3
(5.0)
(0.4)
Ordinary share price (p)
2017 2018 2019 20212020
352.5
120.0 122.0
164.7
117.9
128.5
165.4
9.0
41.0
28.8
19.4
31.5
39.0
28.2
0.1
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the sub-division of 25p ordinary shares into ten
ordinary shares of 2.5p each on 4 May 2021.
1
10 years to 31 December 2021. Rebased to 100
at 1 December 2011.
2
Allianz Technology Trust –
Net Asset Value – undiluted.
3
Dow Jones World
Technology Index (sterling adjusted, total return).
4
Peer group of Morningstar Global Technology
Sector Equity.
Source: AllianzGI/Datastream. 2018 figures are
over a 13 month period.
The APMs can be found on page 92.
297.0
2020
291.3
2021
2.0
2020
76.1
41.7
2020
1,229.2
3
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Financial Summary
As at
31 December
2021
As at
31 December
2020 % change
Net Asset Value per Ordinary Share 347.9p 291.3p +19.4
Ordinary Share Price 352.5p 297.0p +18.7
Premium on Ordinary Share Price to Net Asset Value 1.3% 2.0% -0.4
Dow Jones World Technology Index (sterling adjusted, total return) 2,489.3 1,941.1 +28.2
Shareholders' Funds £1,472.4m £1,229.2m +19.8
For the
year ended
31 December
2021
For the
year ended
31 December
2020 % change
Net Revenue Return per Ordinary Share (1.20p) (0.94p) -27.7
Ongoing charges
* 0.69% 0.80% -13.8
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calculated by dividing operating expenses paid by the Company by the average NAV over the year, excluding any performance fees. Should the ongoing
charge include the performance fee payable, the ongoing charge would be 0.69% (2020: 3.66%).
Five year performance summary
31 December
2021
31 December
2020
31 December
2019
31 December
2018
†
30 November
2017
Shareholders' Funds £1,472.4m £1,229.2m £583.4m £430.1m £313.4m
Net Asset Value per Ordinary Share 347.9p 291.3p 165.4p 128.5p 117.9p
Ordinary Share Price 352.5p 297.0p 164.7p 122.0p 120.0p
Dow Jones World Technology Index (sterling adjusted, total return) 2,489.3 1,941.1 1,369.9 985.8 984.8
Premium (discount) on Ordinary Share Price to Net Asset Value 1.3% 2.0% (0.4%) (5.0%) 1.8%
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4
Overview
Chairman’s Statement
Dear Shareholder
Long-term drivers versus short-term sentiment
When writing last year (and in the associated video on the Company website*) I cautioned
shareholders as to the potentially volatile nature of technology investment – “not for the faint-
hearted” was the caution. Looking back now, that phrase continues to resonate loudly.
After a stand-out performance in 2020, 2021 was a more volatile and challenging year for
technology investors. Many factors emerged which led investors to become nervous about
technology, particularly in terms of valuations, with some pundits even calling ‘bubble’. Many
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dramatically improve the fortunes of some industries that had been languishing and, as a
result, there was a rotation away from growth as an investment style to value. At the time many
commentators saw this as a long-lasting change, but growth companies soon reasserted their
leading position.
As technology seemed to falter early in 2021, our Investment Manager was asked innumerable
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balance between short-term views and news versus longer-term growth drivers. Those growth
drivers never went away. They were accelerated during the peak of the pandemic in 2020 and, if
anything, they have continued to pull away. When uncertainty rears its head, it is understandable to
allow one’s focus to narrow to the short term and that is indeed what investors have often seemed
to do over the past 12 months.
Equally technology valuations have undeniably raced ahead over the past few years. This leads
to nervousness over whether they can be sustained. Some technology companies seem able to
defy the laws of gravity in terms of their ability to grow into their valuations; for others though any
disappointment can cause acute pain in terms of valuation. It is also clear that – as is often the case
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business growth to support that. Others meanwhile seem to have been valued by markets willing to
buy an idea of growth at any price even where the underlying business model has yet to be proven.
Our investment manager remains sanguine that valuations will be both driven forward and face
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to view the portfolio as ‘a tiered cake’, made up of high growth companies, companies that can
provide growth at a reasonable price (GARP) and companies which are on the value end of the
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proved itself as a strategy and continues to be the way the portfolio will be managed.
The trends spurring technology continue; companies are needing to adapt, accelerating growth in
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Labour shortage is also important, driven by demographic changes and the so-called “great
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need talent themselves, it should provide a major long-term driver as technology by its very nature
provides solutions to industries struggling to employ labour.
* Please do have a look at this year’s version of the accompanying ‘Annual Highlights’ microsite at
www.allianztechnologytrustannualhighlights.co.uk/2021 or by using your smartphone camera to
scan this QR code.
5
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Performance against this backdrop
2021 was a volatile year as described above. Although the sector continued to grow over the year,
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performance of the Company – this can be seen in the charts on pages 2 and 3. The Company
underperformed the benchmark, mainly due to markets rotating away from mid-cap growth stocks
towards the largest ‘mega-cap’ stocks and more cyclical companies. The mega-cap stocks represent
almost two thirds of the benchmark index (63% as at 31 December 2021) – a scenario that for reasons
of prudence we would never replicate in the portfolio. The Company will inevitably fall behind the
index in relative terms when these stocks outperform strongly.
Over the year, the Company’s Net Asset Value (NAV) per share increased by 19.4%, whilst our
benchmark index, the Dow Jones World Technology Index (sterling adjusted, total return) increased by
28.2%, an underperformance of 8.8%.
The absolute return to Shareholders was strong at 18.7% during the year, with the market price of
the Company’s shares rising from 297.0p (31 December 2020, adjusted for the share split in 2021) to
352.5p (31 December 2021).
Over the year, despite lagging the benchmark, the Company’s investment performance plus modest
net share issuance saw shareholders’ funds increase from £1,229.2 million at the end of 2020 to reach
£1,472.4 million at the end of 2021.
No dividend is proposed for the year ended 31 December 2021 (2020: £ nil). Given the nature of
the Company’s investments and its stated objective to achieve long-term capital growth the Board
considers it unlikely that any dividend will be declared in the near future.
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to date our assessment has been not to take on this additional risk.
Investment Managers’ Review
My overview above is not intended to be a substitute for the views of the experts and I would urge
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management team in their review which starts on page 18. They explain why the composition of
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held the portfolio back in 2021. Looking ahead, the Investment Manager reviews the prospects for the
sector at this time of continuing rapid change, in which technology is fundamental to the prosperity of
most companies and inextricably intertwined with all of our lives, both professional and personal.
ESG
The Board is very aware that investors are increasingly concerned about, and wish to understand
better, the broader impact of the investment choices that they make. The standard corporate
governance process is to bring the most common areas of concern together within the ESG (an
acronym for Environmental, Social and Governance) section of annual reports. The Board shares
investors’ interest in and concerns about such factors (ESG factors) and hence takes their consideration
very seriously. Given the nature of the Company, the Board consequently engages closely with
AllianzGI’s related policies and processes.
During the year the Board requested, and received, a detailed presentation on ESG from AllianzGI
senior management. This acknowledged that AllianzGI ESG policies and procedures are evolving as
best practice is progressively being established. The Board was reassured that AllianzGI continues to
be committed to high standards with respect to ESG and remains comfortable with the process for
consideration of ESG factors within the investment process.
As with other areas of performance, the Board is keen to see the establishment of objective reporting
metrics for ESG factors that may be used for reporting to shareholders. However, at present ESG
language and terminology is in a complex phase of evolution with a lack of standardised ways of
scoring factors.
The Board will continue to work closely with the manager on understanding and reporting ESG
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relevant links.
6
Overview
How do we compare with our peers and other indices?
The table below compares the Company’s performance to the main technology indices. Although,
as described above, the Company underperformed the benchmark in 2021, your Company has
outperformed over every other time period as set out below:
% change 1 year 3 years 5 years 10 years
ATT NAV 19.5 171.2 314.3 947.0
Dow Jones World Technology Index (sterling adjusted, total return) 28.2 152.5 225.3 685.5
MSCI World Technology Index (total return) 31.3 161.6 244.1 774.8
Russell MidCap Technology Index 15.2 120.9 208.6 685.6
Source: AllianzGI/Datastream in GBP as at 31 December 2021
The table below provides a comparison with the broader UK and world equity indices which many
investors will use when reviewing the performance of their individual investments.
% change 1 year 3 years 5 years 10 years
ATT NAV 19.5 171.2 314.3 947.0
FTSE All Share Index (total return) 18.3 27.2 30.2 110.7
FTSE World Index (total return) 22.1 69.0 85.6 282.2
Source: AllianzGI/Datastream in GBP as at 31 December 2021
The Board continues to pay close attention to the Company’s performance position against the wider
universe of open ended funds, closed ended funds and exchange traded funds. The performance of your
Company versus the other funds within the Morningstar Global Technology Sector - Equity (Morningstar)
category, whilst moderating somewhat over the past year, is exceptional over all other periods:
1 year 3 years 5 years 10 years
Peer Group Ranking vs Morningstar Global Technology Sector Equity
47/140 7/110 1/73 1/55
The costs of running your Company
Your Board works hard to ensure that the costs of running the Company are both reasonable and
competitive, whilst also recognising that the Company is a specialist vehicle investing in a sector that
rewards judicious active management. We are pleased that our focus has been a contributing factor to
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which is calculated by dividing ongoing operating expenses by the average NAV. The annualised OCF
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The OCF excludes any performance fee due to the manager. No performance fee has been earned
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accrual for outperformance from 12.5% to 10%. Full details of the changes are set out on page 45.
Transactions in own shares
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during periods where the discount is over 7% provided that market conditions are appropriate.
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(and as noted in last year’s annual report), continuing demand led us to issue £21.0 million of new shares,
at an average premium of 1.1%. Conversely, from mid-June to late October 2021 against the backdrop of
a stubbornly high discount, market purchases of £16.8 million of shares were undertaken, at an average
discount of 7.4%. This resulted in the net issuance of 1.2 million shares. Since 1 January 2022, a further
625,342 shares have been bought back. All shares repurchased are held in treasury rather than cancelled
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7
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
At the forthcoming AGM, the Board proposes both a renewal of the usual 10% authority to issue new
shares and also a renewal of the authority to issue an additional 10% in order to avoid the cost of a
further General Meeting should the 10% authority be exhausted as has happened previously when
demand was high. The Board recommends that shareholders vote in favour of both of the proposed
resolutions.
The policy of issuing new shares at a premium and buying in shares at a discount has been accretive
to Net Asset Value over the year.
The Board will continue to consider the issuance of new shares subject to shares only being issued
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shareholders. Similarly, any buy back of shares will also be subject to the criteria set out above being
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Awards and shareholder communications
Despite a more challenging year for the Company, 2021 saw us celebrate a further award win
recognising investment expertise and longer-term performance. The award received was part of the
Investment Week Investment Company of the Year Awards, where the Company won in the Specialist
category. The award looks at the three-year period up to the end of June 2021 – as noted earlier, the
Company demonstrates good outperformance over this longer period. The Company has now won
this award for six out of the last seven years – a real testament to the performance of the Company
over the longer term.
The Board was also delighted in 2021 to again be awarded ‘Best Report and Accounts (Specialist)’ by
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and other interested parties increasingly go direct to the Company website for information rather
than the annual report. Therefore we are trying to improve the accessibility of the educational and
informative articles by moving the bulk of that content online to the associated ‘Annual Highlights’
microsite (www.allianztechnologytrustannualhighlights.co.uk/2021), with a precis of each article
remaining in the annual report itself with a link and QR code. Although this may seem marginal,
the Board feels it is important to be exploring all possibilities to reduce the environmental impact
of a hardcopy report while also, as an investor in technology, trying to disseminate information as
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In a similar vein, our main website (www.allianztechnologytrust.com) has also been overhauled,
relaunching in March 2022. I encourage you to use this as your regular source of information on the
Company.
We hope shareholders will be pleased with this evolution of the Company’s annual reporting and
communication and we welcome your feedback.
Board matters
2021 has seen a mix of virtual activity and a return to physical meetings where possible. It has been
a pleasing return to ‘normality’ for the Board to be able to meet each other and representatives of
the manager in person, though arrangements for fully virtual or hybrid meetings are now relatively
seamless and commonplace, meaning business can proceed uninterrupted whatever the prevailing
situation.
The annual Board and Investment Manager performance appraisal process, conducted internally this
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An important action from last year’s review was to recruit an additional director and I am pleased that,
despite the delays caused by lockdowns, this was completed prior to the end of the year and on 1
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in investment management and was, until 2014, Head of Equities at Baring Asset Management. Since
then he has taken on a portfolio of non-executive board appointments in investment businesses
details of which are on page 35. Tim will be proposed for election at the AGM and, in accordance
with the AIC code, all other directors are proposed for re-election.
8
Overview
Management succession
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portfolio manager for the Company in July 2022. Walter recruited Mike to his team in 2009 and, as
many of you will be aware, Mike has taken an increasingly active role in working with Walter on our
account in recent years. Walter will continue to directly support Mike at least until the end of this
year and the Board does not expect this transition to cause any change in AllianzGI’s approach to
managing the Company’s portfolio.
Annual General Meeting arrangements
This year’s AGM will be held on 26 April 2022 at 2.30pm. The full Notice of Meeting can be found on
page 96.
The AGM will be a hybrid meeting in 2022, meaning a physical meeting will be convened at the venue
stated in the notice, but there will also be the opportunity for shareholders to join online should they
prefer. Further details on this process are given in the Notice of Meeting, including how to register and
the arrangements for either physical attendance or attending virtually.
After two years of not being able to interact with shareholders in person, the Board looks forward to
welcoming shareholders to this year’s event whether in person in London or as an online attendee.
As many shareholders look forward to hearing the Investment Manager’s update at the AGM, for
those unable to attend either physically or virtually, this will be made available on the Company’s
website as soon as practicable after the event.
Your vote counts
We would like to take the opportunity to remind shareholders that you have the right to vote on
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renewal of share issuance authorities. We feel it is important that shareholders are encouraged to
make their voices heard by voting on all ordinary and special business matters, as detailed on the
voting instruction card enclosed with this report.
That said, we know that many individual shareholders hold their shares on an investment platform
in a nominee account and for these shareholders voting has often been either impossible or at
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nominee shareholders to access relevant documentation and record their votes and hope that this
may before long be available to all underlying shareholders.
Outlook
2022 opened with a turbulent period for markets and high growth stocks in particular centred
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President Putin’s decision to invade Ukraine, precipitating a humanitarian disaster and economic and
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Review considers the portfolio implications of this tragic turn in events. Unsurprisingly against this
background the Company’s NAV has declined and investor demand has weakened.
We continue to believe that the Company has considerable advantages for investors looking to access
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across a range of technology sub-sectors, carefully balancing risks and opportunities. However, as we
cautioned last year after an extraordinarily strong year, we would like to re-emphasise that investing in
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portfolio. We are strong proponents of investing with a long-term view. With that in mind, we remain
fully supportive of the investment manager’s view that the technology sector can provide some of the
best absolute and relative long-term return opportunities across equity markets.
Robert Jeens
Chairman
8 March 2022
9
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
With every year, the reach and
influence of technology grows.
It disrupts new industries and
moves into different parts of
our lives. Technology is present
in the way we drive, the way
we shop, in our workplaces,
in our homes. It helps us
communicate effectively
and manage our lives more
efficiently. The companies that
create that technology are in
a powerful position to grow
even in stagnant economic
conditions.
Why invest in technology?
10
Overview
Total return – how technology has performed against UK and global equities
How technology contributes to the MSCI World index
Source: MSCI World Index as at 31 December 2021. The weightings for each sector of the index are rounded to the nearest percent; therefore,
the aggregate weights for the index may not equal 100%.
Source: Thomson DataStream, total return % in GBP, to 31 December 2021.
Dow Jones World Technology (sterling adjusted, total return)
FTSE All-Share Total Return
FTSE World Total Return
5 years1 year 10 years
Information Technology 24%
Financials 13%
Health Care 13%
Consumer Discretionary 12%
Industrials 10%
Communication Services 8%
Consumer Staples 7%
Materials 4%
Energy 3%
Real Estate 3%
Utilities 3%
685.5
110.7
282.2
225.3
30.2
85.6
28.2
18.3
22.1
11
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Allianz Technology Trust PLC
Allianz Technology Trust is managed by the Allianz Global Investors
Global Technology team based in San Francisco.
The team is co-headed by Walter Price and Huachen Chen, who have worked together for more than 30 years and who
both have decades of experience working within the sector. The team includes three experienced portfolio managers/
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supported by over ten global sector analysts, nine of whom focus purely on technology companies. Based in the US,
Europe and Asia, these specialists extend a global reach which is ever-more important in the technology sector.
Investment Week Investment Company of the Year
Award 2021 – Specialist category
Allianz Technology Trust won this coveted award
in November 2021, having also been victorious in
similar categories in 2020, 2019, 2018, 2017 and 2015.
This award recognises excellence in closed-ended
fund management and highlights ATT’s consistent
performance over time.
Association of Investment Companies Shareholder
Communication Awards 2021
Allianz Technology Trust won the award for ‘Best Report
and Accounts – Specialist’ for the second year in a
row. The report’s design and inclusion of engaging,
educational content about the sector and its themes
helped it to win once again.
12
Overview
First-hand knowledge
OREGON
CALIFORNIA
NEVADA
Seattle
WASHINGTON
San Francisco
Allianz Technology Trust’s top twenty holdings
1
1
3
3
7
7
8
5
5
4
4
6
18
9
10
10
13
13
11
11
14
14
12
15
15
16
17
19
19
20
2
within 50 miles
within 2 hours
elsewhere in the USA
outside of the USA
Microsoft
Tesla
Micron Technology
Zscaler
Alphabet
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Okta
Taiwan Semiconductor
ON Semiconductor
Apple
Seagate Technology
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Crowdstrike
Amazon.com
NVIDIA
EPAM Systems
Datadog
Samsung SDI
ZoomInfo Technologies
Monday.com
13
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Walter C. Price CFA
Managing Director,
Senior Portfolio Manager
Walter is a CFA charter-holder, Managing Director and
Portfolio Manager on the AllianzGI technology team
in San Francisco. He received his BS with Honours in
electrical engineering from Massachusetts Institute of
Technology (M.I.T) and his BS and MS in management
from the Sloan School at M.I.T. In 1971 he joined Colonial
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where he became a senior analyst responsible for the
chemical industry and the technology area. Walter
joined AllianzGI in 1974 as a senior securities analyst
in technology and became a principal in 1978. Since
1985, he has had increasing portfolio responsibility for
technology stocks and has managed many technology
portfolios. Walter is a current Director and past president
of the M.I.T. Club of Northern California. He also heads
the Educational Council for M.I.T. in the Bay Area and is
a past Chairman of the AIMR Committee on Corporate
Reporting for the computer and electronics industries.
Investment managers
Michael Seidenberg CFA
Director,
Portfolio Manager/Analyst
Michael is a portfolio manager/analyst and a director with
AllianzGI, which he joined in 2009. He received his BS in
Business Administration from the University of Colorado in
1990 and his MBA from Columbia Business School in 1996
with concentrations in Finance and Accounting. He began
his investing career with Citadel Investment Group in 2001,
covering the software space. Over the next eight years
Michael broadened his coverage list to include a variety
of technology sectors. Prior to joining AllianzGI in 2009,
he worked at a number of hedge funds including Pequot
Capital and Andor Capital.
14
Overview
Danny Su Rich Gorman
Director,
Portfolio Manager/Analyst
Vice President
Senior Research Analyst
Huachen Chen CFA
Managing Director,
Senior Portfolio Manager
Huachen is a Senior Portfolio
Manager, and joined AllianzGI
in 1984. He has covered many
sectors within technology, as well
as the electrical equipment and
multi-industry areas. Since 1990,
he has had extensive portfolio
responsibilities for technology
and capital goods stocks and has
managed U.S. and Global portfolios
with Walter Price. In 1994 Huachen
became a principal of AllianzGI.
Prior to AllianzGI, he worked for
Intel Corporation from 1980 to 1983,
where he had responsibilities for
semiconductor process engineering.
Danny is a portfolio manager/analyst
and a director with AllianzGI, which
he joined in 2000. He received his
dual BS in Electrical Engineering
and Economics from M.I.T. in
1993. He received his Master of
Management degree from Kellogg
Graduate School of Management
at Northwestern in 1998. From 1993
to 1996, he was a business analyst
with McKinsey & Company in Hong
Kong. He has global responsibility
for hardware, semiconductor,
semiconductors capital equipment,
and contract manufacturers.
Rich Gorman is a Vice President,
Senior Analyst at AllianzGI joining the
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AllianzGI, Rich spent nearly 9 years
as a Senior Analyst and Analyst at
various long / short equity hedge
funds including Sophos Capital
Management, Angel Island Partners,
and Kingsford Capital Management.
Rich began his career in investment
banking at both Dean Bradley
Osborne and Morgan Keegan as an
Associate and Analyst, respectively.
In 2010, Rich earned his BS in
Environment Economics and Policy
and BA in Global Management and
Technology from the University of
California, Berkeley.
15
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
insights
Shortages and supply chain
disruption
Disruption to global supply chains has been a
key feature of the recovery environment. In the
short-term, this is as much a problem for the
technology sector as it is for other businesses
around the globe. However, it may ultimately
bring opportunities for the sector as companies
embrace automation to deal with labour
ffi
The value of
experimentation
Technology leaders are paid to be visionaries.
From the metaverse to space travel, this year
fl
The world has become more receptive to
new ideas as it reshapes in the wake of the
pandemic. As investors, it is vital to make a
judgement on whether this experimentation has
ff
evaluate innovation.
Technology’s social
implications
Concerns about the social impacts of
technology are rising up the agenda for
advertisers, users and policymakers alike. The
list of problems are broad, from disseminating
fl
mental health, to time spent online and privacy.
2021 saw China take dramatic action to curb
social harms. Might Western policymakers
follow suit?
16
Strategic
Report
Investment
Managers’
Review
17
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Investment Managers’ Review
2021 commenced amid a surge of optimism
as vaccines started to be rolled out across the
world. They would, in theory at least, allow
economies to reopen and pave the way for a
robust economic recovery across the globe.
For technology, this recovery was double-
edged – on the one hand, higher interest rates
threatened valuation multiples for the high
growth technology names; on the other, the
demand environment remained extremely
strong.
Predictably, the reality turned out to be more
complex. New variants emerged – Delta in May
and Omicron in November – that were less
responsive to the vaccine and required renewed
containment measures. The rollout of the
vaccine was uneven, prompting the IMF to talk
of a two-speed global economy between the
vaccine haves and have nots.
Equally, secondary problems emerged. High
demand collided with supply chain disruption,
fl
Price Index hit 5% in May and has remained
stubbornly high ever since. While central banks
fl
transitory, they had revised their view by the end
fl
taken hold. They brought forward plans to end
quantitative easing and raise interest rates. The
current consensus is that the Federal Reserve
will raise rates three times in 2022.
Nevertheless, the global economy continued
to make progress, with growth of 5.9% over the
year. The US has seen a robust recovery, with 6%
growth for 2021 and a further 5.2% expected
for 2022. The Euro area has been marginally
weaker, up 5% over the year. Emerging and
developing Asia expanded 7.2% and is forecast
to grow another 6.3% in 2022.
Growth is still supported by stimulus packages
from central banks and global governments.
While the direction of travel may be changing
on monetary policy, interest rates are likely
fl
the hand of policymakers. The vast stimulus
packages remain largely unspent. President
Biden’s Infrastructure Investment and Jobs Act
was signed into law in November, cementing
a $1.2trillion commitment to new economic
fi
in October as part of its green development
and recovery programme.
18
Investment
Managers’
Review
fi
to contribute to growth in the year ahead and
will help cushion the blow as other support
measures, such as furlough are withdrawn.
Nevertheless, it remains an uncertain time for
the global economy, exacerbated by geo-
political dangers and concerns.
fi
Environmental, Social and Governance (ESG)
is incorporated and thought about within our
investment decisions. More information can be
found on page 23 and on the microsite.
Stock markets
Whilst stock markets mostly appeared to show
a steady rise in 2021, there was a lot going on
beneath the surface. The FTSE World Index
rose 22.1% over the year, led – once again – by
the technology giants: Microsoft and Apple
fi
capitalisation reaching an astonishing $3 trillion
in early 2022.
However, this wasn’t the case at the start of the
year. When it looked like recovery was assured,
fi
stocks that had proved a secure hiding place
in 2020 and embraced more economically-
sensitive stocks. This saw the highest growth
companies, including the mega-cap technology
names, sold down, with areas such as energy,
banks or mining leading markets higher. In a
technology context, this meant a rotation into
areas such as semiconductors.
The potential for higher interest rates also
fl
pushed up valuations for many of the higher
fi
a strong demand environment and by a very
low risk-free rate, that meant the long-term
flff
As the monetary policy environment starts to
fl
were no longer as valuable and valuations
started to look overblown. Even though many
companies continued to deliver high growth
and outpace earnings expectations, it held back
their share price progress.
ff
picture emerged. Covid cases increased and the
optimism around economic recovery started to
fade. Investors turned to higher growth stocks
fi
their enthusiasm for the megacaps, which had
come to be seen as a safe option in a world
where growth was unpredictable. This pattern
of turning to the megacaps whenever there
was nervousness over growth persisted for the
remainder of the year.
19
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
The market had one more twist, however. In
fi
fl
combined with more Covid cases. There was
also considerable supply disruption, prompting
fl
Federal Reserve accelerated its tapering of
quantitative easing and committed to more rate
rises in 2022. The discount rate rose, hitting the
valuations of high growth companies.
Key themes
China
China’s internet stocks had been almost as
dominant as their Silicon Valley peers, but an
abrupt intervention by the Chinese government
fl
shown the direction of travel in late 2020 as it
started to put anti-monopoly and data security
rules in place. It had already prevented the IPO
of Ant Financial in October 2020, as comments
by founder Jack Ma on banking regulation were
said to have infuriated President Xi Jinping.
This clampdown accelerated in 2021. The
government tightened control over data
fi
headache for Alibaba and Tencent. It showed
the Chinese government was willing to pick
fi
fl
social goals of the country. The government
also took aim at other sectors, such as online
education. The show of force from the Chinese
government spooked investors and Chinese
shares, particularly those in at-risk industries,
fffi
Metaverse
This year, investors were introduced to the
concept of the metaverse. It isn’t new, having
fifi
novel ‘Snow Crash’, which imagined a world
where avatars would meet in a virtual reality
world. However, it moved into the mainstream
as Mark Zuckerberg renamed Facebook ‘Meta’
and suggested it could replace the internet as
we know it.
The metaverse is a digital world. People
connect via avatars for work, travel or
entertainment using virtual reality headsets.
Zuckerberg told the tech newsletter Stratechery:
“By the end of this decade, or even by the
middle of the decade, I would guess that we’re
going to reach a point where our VR (virtual
reality) devices will start to be clearly better for
almost every use case than our laptops and
computers are.”
20
20
Investment
Managers’
Review
While Zuckerberg is unquestionably serious
about the change, it is still a stretch to suggest
fi
appeal beyond the 15-20% of people who are
regular gamers. However, the concept is now
fi
Adoption of AI
fi
range of sectors as digitisation took hold. It
spread to insurance, banking, food, health
education and defence as companies realised
the range of insights it could bring. This has
been made possible by broader adoption of
cloud computing, which has been accelerated
by the pandemic. GlobalData estimates that
the market for AI platforms will reach $52 billion
in 2024, up from $29bn in 2019.
The business functions where AI adoption is
most common are service operations, product
and service development, and marketing and
sales, according to a recent McKinsey report.
It found that AI can both increase revenue
and reduce costs and is being implemented
ff
combination with cloud computing. This looks
set to be another continued area of growth in
fi
they seldom turn back.
Performance
While delivering a strong performance in
absolute terms, the Company underperformed
its benchmark, the DJ World Technology index
over the calendar year. The net asset value of
the Company rose 19.4%, compared to a rise
of 28.2% in the index. This should be set in the
context of 34% outperformance last year, but
was nevertheless disappointing.
The reasons for the underperformance are
straightforward. The Company has had a
long-term overweight to the highest growth
fi
of innovation when they hit their sweet spot for
growth is part of the Company’s DNA. It was
these areas that were hit hardest as the market
reappraised valuations in light of rising interest
rates.
The only high growth companies that
continued to do well were the megacaps such
as Microsoft and Apple. While we hold both
these companies, they appear in the index in
far higher weights. In Apple, for example, we
had an 2.4% average weighting, but this is an
11% underweight compared to our benchmark
index. Microsoft was up 54% over the year, and
we had an 8% underweight – while still holding
an average 4.5% position over the year.
The underweight to Alphabet also hurt
performance for similar reasons. Alphabet
was up 67% as it exceeded earnings. It saw
fi
advertising market collapsed, which meant its
year on year numbers looked good.
We are disinclined to shift our position on this.
These are strong companies, returning cash to
shareholders, but they are vulnerable to swings
in sentiment. Capital has moved to these areas
as much for their perceived stability as their
fundamentals. We like the fundamentals, but
not enough to allocate almost 30%-40% of the
portfolio to just a few stocks. This adds little
value for our shareholders over and above a
tracker.
Nevertheless, we have shifted our positioning
on cyclical companies, increasing our exposure
to semiconductors. There are some attractive
fundamentals for this part of the market.
The industry is more consolidated, prices are
higher and there is still huge demand for
semiconductor content across a broader range
fi
stronger fundamentals and a cyclical rotation.
Stock highlights
fi
over the year. The benchmark doesn’t hold it,
but we had an 3.7% weighting. It was up just
3.3% over the year. It had a strong 2020 as
investors turned to online shopping when stuck
at home. However, this gave the group tough
earnings comparisons for 2021. At the same
time, ecommerce did not sustain the gains it
made in 2020 as people returned to stores.
Elsewhere, our overweight positions in
Paycom, Okta, Block Inc (formerly Square),
and Crowdstrike detracted from overall
performance. They are all high growth
companies, with ambitious valuations relative
to earnings. There were also some concerns
on the competitive landscape for Crowdstrike
and Okta during the year, though we believe
ff
relative ease.
That said, a number of our high growth stocks
have seen strong earnings outpace valuation
compression. Productivity tool Asana, for
fi
companies sought to automate tasks. It gives
fl
implemented, companies tend to stick with it,
giving it recurring revenues. It should make work
ffi
focus on higher priority activities. It was up 155%
over the year.
21
21
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Security company Zscaler also had a good year,
rising 62%. We would also highlight payments
group EPAM, while Tesla also performed well.
The group has exceeded production targets,
having created multiple production facilities
around the world. It is working out how to
fi
fi
companies we didn’t hold. We were already
underweight Alibaba and Tencent at the start of
the year and quickly exited both positions as the
direction of travel from the Chinese government
became clear. The benchmark weightings in
each company are around 5%. Both stocks
fiff
did not recover. We still consider the Chinese
government’s intervention to be a huge risk for
investors.
At the start of 2021, we had only 1.7% of the
portfolio invested in Chinese companies. By the
end of the year, and indeed currently, we have
no Chinese holdings.
Looking forward
The invasion of Ukraine by Russia has brought
geopolitics to the fore after an extended period
where the pandemic was front-of-mind. Our
ff
by the humanitarian impact of this war. As
we write, the Ukraine crisis and the related
sanctions against the Russian Federation are
constantly evolving. The world is certainly more
volatile. The fact that Cyber warfare was used
by the Russians demonstrates that they will try
to cripple any adversary with tactics to disrupt
their governments, and it is possible that there
may be countermeasures launched against
institutions in response to the Western sanctions
imposed on Russia. This is why cybersecurity
is such an essential area of spending for any
company and government in our digital world
and has to be at the top of company spending
priorities.
From an exposure perspective, the Company
has little direct exposure to either the Ukraine or
Russia. From an indirect perspective, the global
economy is more interconnected than ever
before with both Russia and the Ukraine a part
of the chain. Sanctions against Russia could
have impacts on a number of markets, most
notably energy, where it remains a meaningful
supplier to other countries. Overall, we do not
believe such dependencies are that meaningful
for the names held in the portfolio, but the net
result of Russia’s actions is likely to complicate
an already strained global supply chain.
As active investors, we are naturally looking
beyond the immediate exposures and
operational considerations to some of the
longer-term implications and possibilities. In
our view, demand for innovative technology
solutions remains robust and is actually
accelerating in several areas that comprise
the digital transformation. While military
fl
associated fears cause market volatility, we do
not believe this will disrupt long-term growth
drivers for various themes across the technology
sector. Despite the near-term market volatility,
we maintain high conviction that technology
can be an attractive investment opportunity for
many years ahead.
Walter Price
Portfolio Manager
22
22
Investment
Managers’
Review
Integrated ESG & Stewardship
As Investment Manager for Allianz Technology Trust, we
draw on the well-established and experienced research
team at AllianzGI to integrate environmental, social and
governance (ESG) factors into our decision-making. By
analysing how a business interacts with the environment,
treats its employees and deals with customers and
suppliers, we glean valuable insights into its potential
strength and longevity, while also assessing long term
fi
fi
emphasis on proprietary research. Too often, 3rd party
research is dependent on limited company disclosures
fl
and social objectives. AllianzGI instead develops its own
conclusions based on material risks. It also means we can
tailor research to our own investment objectives.
But our investment process does not end with purchases
of shares. The investment tools provided by our in-
house team gives us the knowledge and information to
engage with the management teams of companies. This
is not purely about holding management to account,
fl
ff
term performance. In this way, we can help engender
ff
AllianzGI is a founder member of the Investor Forum which
fosters collective engagement with businesses that have
diverse shareholder bases.
fi
Environmental, Social, Governance (ESG)
Research and Stewardship
23
23
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Photo: Ivan Samkov / Pexels
Governance
Nothing is possible without good governance. Companies that value good governance tend
to have strong environmental records, to treat their workforces and suppliers properly and to
operate sustainably. Governance covers operational considerations, such as board composition,
transparency and reporting, remuneration, plus check and balances on the senior team.
ffi
fl
flff
rights. AllianzGI considers that majority voting is a necessary tool for holding management teams
fl
investors.
Increasingly, technology companies are improving their record. Independent shareholders have
been important in bringing about change, encouraging accountability and ensuring the right
procedures are in place. AllianzGI has been highly active in voting against boards that do not have
proper governance practices.
Walter Price
Portfolio Manager
Social
Social considerations cover how technology companies interact with society. It will include how
fl
Companies increasingly need a ‘social license to operate’, to demonstrate that they are not doing
harm.
Social considerations will also consider a company’s culture. Does it prioritise diversity and inclusion?
Or workplace wellbeing? Does it pay fairly? Social practices can be a barometer for corporate
culture. Where companies have a strong and shared culture across the organisation, social practices
tend to be strong, but the opposite is also true. How a company treats its labour force, how it
manages its supply chains and how it values its reputation are vital to considering social impact.
In recent years, social considerations have come second to environmental goals, but they are
fi
social metrics by which companies can be measured. Movements such as Black Lives Matter have
helped highlight inequality.
Environmental
Companies’ impact on the environment has become a vital consideration for investors.
Governments across the globe have committed to net zero targets, which currently cover around
two-thirds of the world’s GDP. This has brought both carrot and stick. The carrot is that there are
fi
fi
compliance.
Technology is often on the right side of environmental change. It helps businesses run more
ffi
of Things has made measurement and management of environmental impact easier for natural
ffi
could be transformational for the farming sector.
At AllianzGI, we will be looking at the environmental impact of all the holdings in our portfolios.
That means looking at carbon emissions and resource usage, both at a company level and through
supply chains. We will engage with companies to improve their carbon intensity, where appropriate.
24
24
Investment
Managers’
Review
Sector
Headquarters
Value of holding
Percentage of portfolio
Top 20 Holdings
Idaho-based Micron produces many forms of
semiconductor devices, including dynamic random
fl
Its consumer products are marketed under the brands
Crucial Technology and Lexar. Micron and Intel together
created IM Flash Technologies, which produces NAND
fl
fi
world.
Micron Technology 3
Semiconductors & Semiconductor Equipment
Idaho, USA
60,057,000
4.2%
Software
Washington, USA
87,739,000
6.1%
Microsoft develops, manufactures, licenses, and supports
a wide range of software products for computing devices.
Since Satya Nadella took over as CEO in 2014, the
company has moved away from its traditional business
to focus on cloud computing. More recently, it has seen
its collaboration tool, Teams, widely adopted during
the pandemic. In June 2021, it hit a $2 trillion market
capitalisation, only the second company in the world to
do so.
Microsoft1
Tesla is a US electric vehicle and clean energy company, led
by Paypal and Space X entrepreneur Elon Musk. It is the
most valuable car maker in the world and leads the world
for its battery and plug-in electric vehicles. Its subsidiary
Tesla Energy develops and installs photovoltaic systems. It is
also a major supplier of battery energy storage systems. The
group beat expectations on production and delivery in 2021
in spite of supply chain constraints.
Tesla2
Automobiles
Texas, USA
75,639,000
5.3%
Zscaler is a global cloud-based information security
company, founded in 2008 by serial entrepreneur Jay
Chaudhry. It provides a cloud-based information security
platform and has the world’s largest security cloud. It
fi
inspection, antivirus and vulnerability management and
is geared into growth sectors such as cloud computing,
mobile and IoT environments.
Zscaler 4
Software
California, USA
55,345,000
3.9%
25
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Okta provides cloud software to help companies
manage and secure user authentication in applications. It
allows developers to build customisable identity controls
into their applications, websites and devices. It was
ff
fi
Snowflake
Okta
6
7
IT Services
Montana, USA
45,871,000
3.2%
IT Services
California, USA
45,550,000
3.2%
fl
company, founded in July 2012. It provides cloud-
based data storage and analytics, also known as “data
warehouse-as-a-service”. It runs on all the major cloud-
computing platforms and is considered the pioneer in
cloud-based data platforms. It listed on the New York
Stock Exchange in 2020 and, at the time, was the largest
software IPO in history.
Alphabet is the parent company of Google, the world’s
leading search engine. Its other business areas include
Google Maps, YouTube, Chrome, and Android, each
of which now has more than a billion users. The group
continues to develop a range of diverse businesses,
including recent expansion into the health industry with its
Life Sciences division. In November, it launched a new AI
business focused on drug discovery.
Alphabet Inc5
Interactive Media & Services
California, USA
53,044,000
3.7%
Semiconductors & Semiconductor Equipment
Taiwan
45,500,000
3.2%
Taiwan Semiconductor8
Taiwan Semiconductor was established in 1987. It is the
world’s largest semiconductor foundry, manufacturing
ff
ff
are deployed in a broad range of industries, including
mobile devices, high performance computing and
the Internet of Things (IoT). The group innovated on
3D chip ‘stacking’ in 2020, designed to deliver greater
ffifi
new manufacturing to meet growing demand for
semiconductors.
Sector
Headquarters
Value of holding
Percentage of portfolio
26
Investment
Managers’
Review
Semiconductors & Semiconductor Equipment
Arizona, USA
45,081,000
3.2%
Technology, Hardware Storage & Peripherals
California, USA
42,280,000
3.0%
Semiconductors & Semiconductor Equipment
Germany
40,936,000
2.9%
ff
semiconductor unit in 1999. Since then, it has created a
ffi
to help companies reduce power usage in their devices.
The company works across multiple industries, including
industrial, medical and defence uses across North
fi
acquired GT Advanced Technologies, entering the silicon
carbide market.
ON Semiconductor
Seagate Technology Infineon Technologies
9
11 12
Seagate Technology Holdings is a global data storage
company, founded in 1978 as Shugart Technology. Since
2010, the company has had its headquarters in Fremont,
California, but retains ties to Ireland. The company has
fifi
ff
fi
manufacturer founded in 1999, when the semiconductor
operations of the former parent company Siemens AG were
fffi
manufacturers worldwide. It employs over 50,000
employees across 56 locations worldwide.
Apple is a leading global consumer electronics
company, making personal computers, software, mobile
communications devices, and networking solutions. Its
market capitalisation hit over $3 trillion in early 2022, a
three-fold increase in just three years. Over one billion
fl
it launched a decade ago.
Apple10
Technology, Hardware Storage & Peripherals
California, USA
44,022,000
3.1%
27
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
EPAM SystemsNVIDIA 1615
IT Services
Pennsylvania, USA
27,646,000
1.9%
Semiconductors & Semiconductor Equipment
California, USA
38,019,000
2.7%
EPAM Systems is a digital transformation services and
product engineering company, with its roots in Belarus.
It specialises in product development, digital platform
engineering, and digital product design. It has branches
fifi
the digitisation trend. More recently, the group has been
developing chatbots for a global ticket sales company
and a cloud platform linking car manufacturers to digital
services.
Nvidia designs graphics processing units (GPUs) for
use in the gaming and professional markets. It also
manufactures chips for the mobile computing and
automotive market. Its GPUs are used in a variety
of industries, including architecture, engineering
fi
announced plans to acquire Arm Ltd from Softbank for
US$40 billion in stock and cash, but regulatory approval
has been slow to materialise.
fi
to give real-time protection and visibility for companies,
preventing attacks. The group draws data from across
the globe, giving it one of the most advanced data
platforms for security. This should help identify and
prevent breaches before they occur.
CrowdStrike Holdings 13
Software
California, USA
38,117,000
2.7%
Amazon.com14
Internet & Direct Marketing Retail
Washington, USA
38,035,000
2.7%
Amazon.com has created a retail revolution since its
ff
sells the majority of its products directly, but has also built
up a raft of third-party sellers on its site. It remains the
leading ecommerce site across the globe, even though
there have been plenty of challengers. Amazon is also
well positioned to capitalise on the secular trends of
cloud computing and digital media initiatives through its
Amazon Web Services division.
Sector
Headquarters
Value of holding
Percentage of portfolio
28
Investment
Managers’
Review
Interactive Media & Services
Washington, USA
25,755,000
1.8%
Software
New York, USA
26,729,000
1.9%
Software
Israel
24,242,000
1.7%
Datadog is a cloud software group, providing monitoring
of servers, databases, tools, and services, through its
data analytics platform. The group was founded in
2010 by Olivier Pomel and Alexis Lê-Quôc, ultimately
flfi
from broader adoption of cloud computing and is now
compatible with all the major web services providers –
Amazon, Microsoft, Google and others.
Datadog
ZoomInfo Technologies Monday.com
17
19 20
Zoom became ubiquitous during the pandemic lockdowns
as one of the primary communication tools for individuals
and enterprises. Its popularity has persisted even as
containment measures have eased. The group provides
videotelephony and online chat services through a cloud-
based peer-to-peer software platform and is used for
teleconferencing, telecommuting, distance education, and
social relations. The company joined the NASDAQ-100 stock
index on April 30, 2020
Monday.com is a cloud-based platform founded in
2012 by Roy Mann, Eran Kampf and Eran Zinman. It
allows users to create their own applications and work
management software. It is designed to help teams
ffi
fl
public in June 2021.
Samsung SDI focuses on the manufacture and sale of
secondary cells and plasma display panels (PDPs). Its
two main business areas are display and energy. Its
‘display’ PDPs are used in televisions, while its ‘energy’
PDPs are used in the manufacture of batteries, including
those in electric cars. The company was founded on
January 20, 1970 and is headquartered in Yongin, South
Korea.
Samsung SDI Co 18
Electronic Equipment Instruments & Components
South Korea
26,176,000
1.8%
29
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Investment Portfolio
at 31 December 2021
Geographical breakdown
Region
Valuation
£000
% of
Invested
Funds
United States
1,133,720 79.4
South Korea
49,964 3.5
Taiwan
45,500 3.2
Netherlands
42,934 3.0
Ireland
42,280 3.0
Germany
40,936 2.9
United Kingdom
25,139 1.7
Israel
24,242 1.7
Canada
13,195 0.9
Singapore
10,226 0.7
As cash is excluded and the weightings for each country are rounded to the nearest tenth of a percent, the aggregate weights may not
equal 100%.
As cash is excluded and the weightings for each sector are rounded to the nearest tenth of a percent, the aggregate weights may not
equal 100%.
Sector breakdown
Software
Interactive Media
& Services
Automobiles
IT Services
Semiconductors &
Semiconductor Equipment
Road & Rail
Technology, Hardware
Storage & Peripherals
Hotels, Restaurants
& Leisure
Communications
Equipment
Electronic Equipment
Instruments & Components
Internet & Direct
Marketing Retail
Entertainment
29.5%
25.8%
13.7%
7.2%
6.5%
5.3%
3.5%
3.2%
2.7%
1.6%
0.3%
0.7%
30
Investment
Managers’
Review
Investment Sector
#
Sub Sector
#
Country
Valuation
£000
% of
Portfolio
Microsoft Software Systems Software United States 87,739 6.1
Tesla Automobiles Automobile Manufacturers United States 75,639 5.3
Micron Technology Semiconductors & Semiconductor Equipment Semiconductors United States 60,057 4.2
Zscaler Software Systems Software United States 55,345 3.9
Alphabet Interactive Media & Services Interactive Media & Services United States 53,044 3.7
Snowflake IT Services Internet Services & Infrastructure United States 45,871 3.2
Okta IT Services Internet Services & Infrastructure United States 45,550 3.2
Taiwan Semiconductor Semiconductors & Semiconductor Equipment Semiconductors Taiwan 45,500 3.2
ON Semiconductor Semiconductors & Semiconductor Equipment Semiconductors United States 45,081 3.2
Apple Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 44,022 3.1
Top Ten Investments 557,848 39.1
Seagate Technology Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals Ireland 42,280 3.0
Infineon Technologies Semiconductors & Semiconductor Equipment Semiconductors Germany 40,936 2.9
Crowdstrike Software Systems Software United States 38,117 2.7
Amazon.com Internet & Direct Marketing Retail Internet & Direct Marketing Retail United States 38,035 2.7
NVIDIA Semiconductors & Semiconductor Equipment Semiconductors United States 38,019 2.7
EPAM Systems IT Services IT Consulting & Other Services United States 27,646 1.9
Datadog Software Application Software United States 26,729 1.9
Samsung SDI Electronic Equipment Instruments & Components Electronic Components South Korea 26,176 1.8
ZoomInfo Technologies Interactive Media & Services Interactive Media & Services United States 25,755 1.8
Monday.com Software Systems Software Israel 24,242 1.7
Top Twenty Investments 885,783 62.2
MongoDB IT Services Internet Services & Infrastructure United States 23,844 1.7
Palo Alto Networks Software Systems Software United States 21,964 1.5
Trade Desk Software Application Software United States 20,836 1.5
Asana Software Application Software United States 19,511 1.4
Marvell Technology Semiconductors & Semiconductor Equipment Semiconductors United States 19,330 1.4
Paycom Software Software Application Software United States 18,268 1.3
STMicroelectronics Semiconductors & Semiconductor Equipment Semiconductors Netherlands 17,513 1.2
Lam Research Semiconductors & Semiconductor Equipment Semiconductor Equipment United States 17,487 1.2
Adyen IT Services Data Processing & Outsourced Services Netherlands 17,418 1.2
Applied Materials Semiconductors & Semiconductor Equipment Semiconductor Equipment United States 16,382 1.1
Top Thirty Investments 1,078,336 75.7
Expedia Hotels, Restaurants & Leisure Hotels, Resorts & Cruise Lines United States 15,771 1.1
SK Hynix Semiconductors & Semiconductor Equipment Semiconductors South Korea 15,713 1.1
Advanced Micro Devices Semiconductors & Semiconductor Equipment Semiconductors United States 15,400 1.1
Booking Hotels, Restaurants & Leisure Hotels, Resorts & Cruise Lines United States 15,181 1.1
Arista Networks Communications Equipment Communications Equipment United States 14,875 1.0
Box Software Application Software United States 14,470 1.0
Meta Platforms Interactive Media & Services Interactive Media & Services United States 14,407 1.0
Wolfspeed Semiconductors & Semiconductor Equipment Semiconductors United States 14,219 1.0
Airbnb Hotels, Restaurants & Leisure Hotels, Resorts & Cruise Lines United States 13,643 1.0
HubSpot Software Application Software United States 13,221 0.9
Top Forty Investments 1,225,236 86.0
Full portfolio list
31
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Investment Sector
#
Sub Sector
#
Country
Valuation
£000
% of
Portfolio
Atlassian Software Application Software United Kingdom 13,204 0.9
Shopify IT Services Internet Services & Infrastructure Canada 13,195 0.9
Oracle Software Systems Software United States 12,700 0.9
KnowBe4 Software Systems Software United States 12,260 0.8
Computacenter IT Services IT Consulting & Other Services United Kingdom 11,935 0.8
Lyft Road & Rail Trucking United States 10,244 0.7
Flex Electronic Equipment Instruments & Components Electronic Manufacturing Services Singapore 10,226 0.7
F5 Networks Communications Equipment Communications Equipment United States 8,824 0.6
Ipg Photonics Electronic Equipment Instruments & Components Electronic Manufacturing Services United States 8,382 0.6
Workday Software Application Software United States 8,154 0.6
Top Fifty Investments 1,334,360 93.5
Samsung Electronics Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals South Korea 8,075 0.6
ASML Semiconductors & Semiconductor Equipment Semiconductor Equipment Netherlands 8,003 0.6
Altair Engineering Software Application Software United States 7,726 0.5
Pure Storage Technology, Hardware Storage & Peripherals Technology, Hardware Storage & Peripherals United States 7,330 0.5
Broadcom Semiconductors & Semiconductor Equipment Semiconductors United States 7,212 0.5
Smartsheet Software Application Software United States 6,976 0.5
Amplitude Software Application Software United States 6,960 0.5
salesforce.com Software Application Software United States 6,899 0.5
Teradyne Semiconductors & Semiconductor Equipment Semiconductor Equipment United States 6,409 0.4
Cloudflare IT Services Internet Services & Infrastructure United States 6,050 0.4
Top Sixty Investments 1,406,000 98.5
Block IT Services Data Processing & Outsourced Services United States 5,941 0.4
Cognex Electronic Equipment Instruments & Components Electronic Equipment & Instruments United States 5,860 0.4
Mandiant Software Systems Software United States 5,388 0.4
Take Two Interactive Software Entertainment Interactive Home Entertainment United States 4,947 0.3
Total Investments 1,428,136 100.0
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32
Directors’
Review
Directors’
Review
33
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Directors
Robert Jeens, MA (Cantab), FCA
Chairman of the Board, the Nomination Committee and
the Management Engagement Committee. Member of
the Remuneration Committee.
Robert joined the Board on 1 August 2013 and became
Chairman on 2 April 2014. Early in his career he became
an audit partner at Touche Ross (now Deloitte) and was
subsequently Finance Director of Kleinwort Benson Group
and Woolwich plc. Since 2000 he has worked solely as
a non-executive director with appointments including
Henderson Group plc, Royal London Mutual Insurance
Group and a number of listed investment companies. He
has also had experience of technology companies, both
listed and private, and is currently Chairman of Remote
Media Group, a cloud based digital signage company.
Humphrey van der Klugt, BSc (Hons), FCA
Senior Independent Director and Chairman of the
Audit & Risk Committee and Remuneration Committee.
Member of the Nomination Committee and the
Management Engagement Committee.
Humphrey joined the Board on 1 July 2015 and became
Chairman of the Audit & Risk Committee and Senior
Independent Director on 14 April 2016. He is currently
also a director of Worldwide Healthcare Trust PLC. He
is an experienced investment manager and investment
company director, having previously served as a director
of trusts managed by BlackRock, Fidelity, JP Morgan and
abrdn Plc (formerly Standard Life Aberdeen). Humphrey
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Marwick Mitchell & Co. (now KPMG) in 1979, and in 2004
retired from a long career as a fund manager and director
of Schroder Investment Management Limited.
Meeting attendance by the Directors during the year ending 31 December 2021 was as follows:
Board
Audit & Risk
Committee
Nomination
Committee
Remuneration
Committee
Management
Engagement
Committee
Number of meetings in the year 7 3 3 1 1
Robert Jeens 7 3
1
3 1 1
Humphrey van der Klugt 7 3 3 1 1
Elisabeth Scott 7 3 3 1 1
Neeta Patel 7 3 3 1 1
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2021, subsequent to these meetings taking place.
None of the Directors has a service contract with the Company. The terms of their appointment are detailed in a letter
sent to them when they join the Board. These letters are available for inspection on request to the Company Secretary.
1
Robert Jeens’ attendance at the Audit & Risk Committee is by invitation as he is not a Committee member.
34
Directors’
Review
Elisabeth Scott,
MA (Hons), MSc
Neeta Patel CBE,
MA (Oxon), MBA, MSc
Tim Scholefield
MSc, MBA
Member of the Audit & Risk
Committee, the Nomination
Committee, Remuneration
Committee and the Management
Engagement Committee.
Member of the Audit & Risk
Committee, the Nomination
Committee, Remuneration
Committee and the Management
Engagement Committee.
Member of the Audit & Risk
Committee, the Nomination
Committee, the Remuneration
Committee and Management
Engagement Committee
Elisabeth joined the Board on 1
February 2015. She is Chair of the
Association of Investment Companies
and Chair of India Capital Growth
Fund plc and has been a Non-
Executive Director of investment
companies since 2011. Elisabeth
worked in the Hong Kong asset
management industry from 1992
until 2008, latterly as managing
director and country head of
Schroder Investment Management
(Hong Kong) Ltd, and she chaired
the Hong Kong Investment Funds
Association between 2005 and 2007.
Neeta joined the Board on 1
September 2019. She is currently
the CEO of the Centre for
Entrepreneurs, a board advisor for
Tech London Advocates and an
entrepreneur mentor-in-residence
at London Business School. She
is also a member of the newly
appointed advisory board at City
Ventures, the entrepreneurship
hub at City University, London
and a non-executive director
for various start-ups.
Tim joined the Board on 1 December
2021. He is a non-executive Director
of BMO Capital and Income
Investment Trust PLC, abrdn UK
Smaller Growth Companies Trust
plc and Jupiter Unit Trust Managers
Ltd. He is also Chairman of Invesco
Bond Income Plus Limited. He
has over thirty years’ experience
in investment management and
was, until 2014, Head of Equities at
Baring Asset Management. Prior to
Baring, he was Head of International
Equities at Scottish Widow
Investment Partnership Limited.
35
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Introduction
This Strategic Report is provided in accordance with The
Companies Act 2006 (Strategic Report and Directors’
Report) Regulations 2013 as amended and is intended to
provide information about the Company’s strategy and
business needs, its performance and results for
the year, and the information and measures which the
Directors use to assess, direct and oversee Allianz Global
Investors GmbH, UK Branch (the Investment manager)
in the management of the Company’s activities. This
report is intended to be read in conjunction with the
Directors’ Report, ESG Report and the S172 Statement,
but is not intended to duplicate such. It is also intended
to supplement strategic commentary as set out in
the Chairman’s Statement on page 5 and in the
Investment Managers’ review starting on page 17.
Strategy and Business Model
The objective of the Company is to provide shareholders
with an investment in equity securities of quoted
technology companies on a worldwide basis with the aim
of achieving long-term capital growth. The Company
carries on business as an investment trust and maintains a
primary listing on the London Stock Exchange. Investment
trusts are collective investment vehicles constituted as
closed ended public limited companies. The Company is
managed by a board of non-executive Directors and the
management of the Company’s investments is delegated
to the Investment Manager. The Company’s day-to-day
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registration services are carried out by duly appointed
third party service providers. The Company complies,
where relevant, with the Financial Conduct Authority’s
(FCA) Handbook including the Disclosure Guidance and
Transparency Rules. Regulatory and portfolio information
is announced via the regulatory news service on a daily,
monthly and other periodic basis thereby assisting current
and potential investors to make informed investment
decisions. Additional portfolio information, technology
commentary and corporate information is available on
the Company’s website www.allianztechnologytrust.com.
Performance
The investment portfolio at the year end is set out on pages
31 and 32 and a summary of the top twenty holdings
starts on page 25. In the year ended 31 December
2021, the Company’s total return on net assets per share
was 19.4% (2020: 76.1%), underperforming the Dow Jones
World Technology Index (sterling adjusted, total return) by
8.8 percentage points. Further details on the performance
of the Company, future trends and factors that may impact
future performance of the Company are included in the
Chairman’s Statement and the Investment Managers’
Review.
Monitoring Performance – Key Performance
Indicators
The Board assesses performance in meeting the
Company’s objective and assessing the longer term
viability of the Company against the following Key
Performance Indicators (KPIs):
NAV per Ordinary Share relative to the
Company’s benchmark, the Dow Jones World
Technology Index (sterling adjusted, total
return)
Ordinary Share price
Premium/Discount of Share price to NAV
Ongoing Charges
Peer group performance
Numerical analysis of the above is provided on page 2
in the Financial Summary, and is explored further within
the Chairman’s Statement.
Strategic Report
36
Directors’
Review
The Board regularly reviews forms of stock and attribution analysis to determine the contribution to relative and absolute
performance of the portfolio of the top and bottom stocks. The top contributors to and detractors from the Company’s
Net Asset Value total return over the year ended to 31 December 2021, relative to the benchmark index*, were as
follows:
Top ten contributors
Active Contribution
GBP (%)
Alibaba Group Holding Ltd. Sponsored ADR underweight 2.29
Asana, Inc. Class A overweight 1.83
Tencent Holdings Ltd. underweight 1.27
ON Semiconductor Corporation overweight 1.10
Zscaler, Inc. overweight 0.94
Seagate Technology Holdings PLC overweight 0.82
EPAM Systems, Inc. overweight 0.65
Tesla Inc overweight 0.64
Datadog Inc Class A overweight 0.55
Kuaishou Technology underweight 0.32
10.41
Top ten detractors
Microsoft Corporation underweight -1.84
Amazon.com, Inc. overweight -1.16
Paycom Software, Inc. overweight -1.08
Okta, Inc. Class A overweight -0.91
Apple Inc. underweight -0.84
Block Inc Class A overweight -0.84
CrowdStrike Holdings, Inc. Class A overweight -0.81
IPG Photonics Corporation overweight -0.80
Lyft, Inc. Class A overweight -0.77
Samsung SDI Co overweight -0.74
-9.79
Source: Allianz Global Investors. 31 Dec 2020 - 31 Dec 2021. *Relative to Dow Jones World Technology Index. Figures may not add due to rounding.
37
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Share Buybacks and Share Issues
The Directors continually monitor the level of premium or
discount of the share price to the net asset value (NAV)
per share. Over the year to 31 December 2021, the mid-
market price of the Company’s shares increased by 18.7%
(2020: 80.3%), with a premium at the year end of 1.3%
(2020: 2.0%).
The Board carefully considers the parameters which
should apply to both the issuance and the buy-back of
shares from the market and will only proceed when the
action is in the best interests of shareholders. Where there
is market volatility the Board will also consider buying
back shares when the discount is over 7% and all other
factors align. The Board will only issue new shares at a
premium to NAV.
The Company issued 6,800,000 new shares at a premium
to NAV during 2021 (2020: 69,235,000) and bought back
5,565,090 shares at a discount to NAV (2020: nil). There
are 5,565,090 shares held in treasury.
Results and Dividends
Details of the Company’s results are shown in the Financial
Highlights on page 2. The revenue reserve remains
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respect of the year ended 31 December 2021 (2020:
nil). As stated in the Chairman’s Statement the Board
considers that it is unlikely that a dividend will be declared
in the near future.
Future Development
The future development of the Company is dependent on
the success of the Company’s investment strategy
against the background of the economic environment and
market developments and the future attractiveness of
the Company as an investment vehicle when considering
the developments in the long-term savings markets. The
Chairman gives his view on the outlook in his statement
which starts on page 5 and the Investment Managers
discuss their view of the Company’s portfolio and the
outlook which starts on page 17. The Board holds a
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time they consider the position of the Company and the
strategy for the year ahead, making recommendations
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meeting was held in November 2021.
Marketing the Company’s investment strategy
The Company continues to operate a targeted and
coordinated marketing programme in order to raise
awareness of its investment strategy. During 2021 both
virtual and in-person communication tools have been
used. This programme targets potential investors as well
as communicating the latest developments to its valued
existing shareholders.
The programme is aimed at both professional and retail
investors and aims to create ongoing and sustained
demand for the Company’s shares. The retail audience
includes those investors who delegate their investment
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numbers who are researching and making their own
investment decisions. The programme includes advertising
and other promotional activity as well as communicating
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press, since positive coverage of the Company’s specialist
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marketing programme’s success has been boosted by the
number of performance awards won by the Company
over recent years and has been successful in generating
demand from retail investors which is, of course, to the
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investors are choosing to buy and sell stocks and shares
via online trading platforms rather than via a traditional
stockbroker. Approximately 35% (2020: 30%) of the
Company’s shares are now held by investors on these
platforms and this percentage has increased markedly
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Savings Account and pension products as well as the
facility to invest on a regular monthly basis. Competition
amongst platform providers is intense therefore investing
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shares.
Risk Report
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, as
well as in the context of the Covid-19 pandemic, and has
formally assessed the prospects for the Company over a
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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;
– fi
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 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 but also potential catastrophe
with the growth of cyber fraud; and
– The principal risks faced by the Company as outlined
below.
The Board is fully aware that the world of technology is
constantly moving and growing and the perceived picture
38
Directors’
Review
fiff
through regular updates from the Investment Manager, the Board believes it is reasonable to expect that the Company
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Investment Controls and Monitoring
The Board in conjunction with 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
ff
the Board at every meeting.
Principal & Emerging Risks and Uncertainties
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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.
Description Mitigation
Investment Strategy Risk
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the Investment Manager’s inappropriate allocation
of funds to particular sub-sectors of the technology
market and/or to the selection of individual stocks that
fail to perform satisfactorily, leading to poor investment
performance in absolute terms and/or against the
benchmark.
The Investment Manager has responsibility for sectoral
weighting and for individual stock picking, having taken
due account of Investment Objectives and Controls
that are agreed with the Board from time to time and
regularly reviewed. These seek, inter alia, to ensure
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appropriate.
Technology Sector Risk
The technology sector is characterised by rapid change.
New and disruptive technologies can place competitive
pressures on established companies and business
models, and technology stocks may experience greater
price volatility than securities in some slower changing
market sectors.
The Board reviews investment performance, including
a detailed attribution analysis comparing performance
against the benchmark, at each Board meeting. At such
meetings, the Investment Manager reports on major
developments and changes in technology market sectors
and also highlights issues relating to individual securities.
fi
Cyber Risk
The Company may be at risk of cyber attacks which
may result in the loss of sensitive information or
disruption to the business.
The operations of the Company are carried out by the
Investment Manager and various third party service
providers. All service providers report to the Board on
operational issues including cyber risks and the controls
in place to capture potential attacks. The Board meets
with the AllianzGI Head of Information Security and
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Operational Risk below.
39
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Description Mitigation
Market Risk
ff
general decline in the valuation of listed securities and/
or adverse market sentiment towards the technology
sector in particular. Although the Company has a
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and geography, its principal focus is on companies
with high growth potential in the mid-size ranges of
capitalisation. The shares of these companies may
be perceived as being at the higher end of the risk
spectrum, leading to a lack of interest in the Company’s
shares in some market conditions.
Market sentiment may quickly deteriorate in the face
of unexpected events such as a global pandemic or
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The Board and the Investment Manager monitor stock
market movements and may consider hedging, gearing
or other strategies to respond to particular market
conditions. The Investment Manager maintains regular
contact with shareholders to discuss performance and
expectations and to convey the belief of the Board
and the Investment Manager that superior returns can
be generated from investment in carefully selected
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focused on those segments of the technology market
where disruptive change is occurring.
The Board and Investment Manager would monitor the
progress of the unexpected events very closely.
Currency Risk
A high proportion of the Company’s assets is likely
to be held in securities that are denominated in US
Dollars, whilst its accounts are maintained in Sterling.
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performance of the Investment Portfolio and creates a
risk for shareholders.
The Board monitors currency movements and
determines hedging policy as appropriate. The Board
does not currently seek to hedge this foreign currency
risk.
Financial and Liquidity Risk
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place to manage these risks are disclosed in detail in
Note 13 beginning on page 86.
Financial and liquidity reports are provided to and
considered by the Board on a regular basis.
Operational Risk
Disruption to or the failure of the systems and processes
utilised by the Investment Manager or other third
party service providers. This encompasses disruption or
failure caused by cybercrime and covers dealing, trade
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operational functions.
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be uncertain, with multiple locations experiencing new
waves, the emergence of new variants and resulting
lockdowns restrictions all creating further pressure and
disruptions to industries and economies.
The Board receives regular reports from the Investment
Manager and third parties on internal controls including
reports on monitoring visits carried out by the Depositary
on behalf of the Company. The Board has further
considered the increased risk of cyber-attacks and has
received reports and assurance from the Investment
Manager regarding the controls in place.
The Board and the Investment Manager monitor the
progress of such unexpected events very closely and
initiate appropriate responses where possible.
Key Individual Risk
Over reliance on key individuals with no cover and/
or succession plans in place, if the key individuals are
absent.
Investment Manager and Board succession plans are
in place. Cover is available for core members of the
relevant teams of the Manager.
Sustainability and Environmental factors
Risk that investments are made in non-sustainable
sources, and are subject to reputational scrutiny and
lower performance as part of a move towards more
sustainable investments. Continued climate change
could impact the industries in which the Company
invests.
The Board pays attention to the nature of its investments
and how exposed the Company is to environmental and
sustainable factors.
The Investment Manager, on behalf of the Company
works closely with AllianzGI’s ESG function. The Manager
also actively engages with investee companies,
exercising good stewardship practices, including a focus
on ESG matters with an approach agreed with the
Board.
40
Directors’
Review
Description Mitigation
UK Legal Entity license
The Investment Manager is in the process of obtaining
the license to operate as a standalone UK legal entity.
As such, there is a risk that the Manager may not meet
all the license requirements required under the FCA
regulation.
AllianzGI has submitted its application to the FCA in
accordance with the 30 September 2021 deadline. The
project working group continues to liaise with the FCA
to ensure additional requirements have been met. The
Investment Manager updates the Board as the project
progresses.
Emerging Risk
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The Board and the Investment Manager are alert to the
dangers posed by emerging risks.
fifi
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 Manager 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 51.
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
Robert Jeens
Chairman
8 March 2022
41
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Section 172 Report:
Engagement with Key Stakeholders
As an investment company with no employees, the Company’s primary stakeholders are its shareholders and other
stakeholders including its service providers and the companies in which it invests. The Board’s strategy is facilitated by
interacting with a wide range of stakeholders through meetings, seminars, presentations and publications and through
contacts made through the Company’s suppliers and intermediaries. Through the global Covid-19 pandemic our
interactions have become virtual though, as the restrictions eased, some of the interactions were in person. However, the
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culture in its engagements as it seeks to meet the Company’s investment objectives.
Set out below are examples of the ways in which the Company has interacted with key stakeholders in line with section
172 of the Companies Act 2006 whereby the Directors have a statutory duty to promote the success of the Company.
Stakeholders Why we engage How we engage and what we do The outcomes
Shareholders
Shareholders receive relevant
information to enable them to
evaluate whether their investment
interests are aligned with the
strategy of the Company.
The Board communicates with shareholders through the
annual report and half-yearly report, meets with shareholders
at the AGM and provides a forum for interaction. There
is a portfolio management presentation and Q&As. This
year, there will be a hybrid AGM which each shareholder
can attend. There are monthly factsheets published on the
Company’s website as well as up to date articles and podcasts
from the Investment Manager.
Shareholders make informed
decisions about their investments.
Shareholder correspondence is
forwarded directly to the Board.
The Company has responded to the
volatile market conditions by issuing
or buying back shares during the
course of the year. A share split of
10 to 1 was undertaken to ensure
that the Company was accessible
to all.
Allianz Global
Investors –
the manager
The Board works with the
Manager who provides investment
management, accounting,
secretarial services as well as
expertise in sales and marketing.
In addition to the reporting at regular board meetings the
Board meets with representatives of AllianzGI to develop
strategy for the Company, including a sales and marketing
plan which was adapted during the year, to promote the
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The Company is well managed
and receives appropriate and
timely advice and guidance for a
reasonable cost.
Portfolio
companies
The Board approves the Manager’s
active, stock picking approach and
believes in good stewardship.
On the Company’s behalf the Manager engages with
investee companies, particularly on Environmental, Social and
Governance matters and exercises its votes at all company
meetings. The Board travels every two years to San Francisco
and whilst there they visit several of the portfolio companies.
The Company is a responsible
investor and is labelled as ESG
Aware.
Brokers
The Board and Manager work with
the brokers, including their research
and sales teams to provide access
to the market and liquidity in the
Company’s shares.
The brokers are kept updated on the strategy of the Company
so that they can publish relevant research information and talk
to potential investors. The sales team receives regular contact
and helps the Company to participate in exchange volume
and provide liquidity for investors.
The Company is an attractive
investment and there is liquidity in
the Company’s shares.
Media
partnerships
The Company works with public
relations advisers to ensure
information about the Company,
its strategies and performance can
reach a wide audience of potential
investors through press articles and
online media coverage.
Regular communication with public relations partners to raise
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can measure the success of this activity by monitoring website
hits and new investment in the Company on retail platforms.
The Company’s name and its
attributes as an investment
company are known to an
increasingly wider audience.
Distribution
partnerships
To reach a wider audience of
investors the Company works with
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and wealth managers.
The wealth managers together with our distribution partners
arrange presentations about the Company at roadshows and
conferences to reach investors through share trading platforms
and wealth managers.
The Board receives detailed
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wide and growing interest in the
Company’s shares.
AIC
The Association of Investment
Companies looks after the interests
of investment trusts and provides
information to the market.
The Company is a member of the AIC and has also supported
lobbying activities such as the representations made to
the Financial Conduct Authority on the KID document. The
Company is in the top 20 of the most viewed companies on
the AIC website in 2021 .
Information about the Company is
disseminated widely.
42
Directors’
Review
Environmental, Social, Governance (ESG)
Research and Stewardship
The Board takes ESG considerations very seriously and,
as such, intends to make clear how various aspects are
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as a board, but also in our oversight of our Investment
Manager’s process, with investment being the sole business
of the company.
Although as an investment trust, the Company has no
direct social or community responsibilities, the Board
shares the Investment Manager’s view that it is in the
shareholders’ interests to be aware of and consider
environmental, social and governance factors, when
selecting and retaining investments. In addition, AllianzGI
has a due diligence approach to ensuring any retained
company or entity providing services to the Company in
its normal course of business has an acceptable approach
to ESG factors and as such does not inadvertently support
any negative factors.
Details of the Company’s policy on socially responsible
investment are set out below.
How ESG fits into technology
For technology, the individual elements of ‘ESG’ have
varying outcomes.
The ‘E’ (Environmental) is generally a high scoring factor.
Many technology companies are facilitating the move
towards a cleaner, less carbon-intensive future. Electric
vehicles are an obvious example of this. This is not to say
the entire sector is without issue and, indeed, new natural
resource demands are emerging as technology expands.
We see in general though that companies are aware and
consider this factor high in their priorities. Regulators too
have a keen eye.
The ‘S’ (Social) is split in its outcomes. On the one hand, as
a source of quality employment, the result is often positive,
although some issues have notably come to light. On the
other hand, governments, regulators and the public at
large have questioned the impact of some technologies,
such as social media. The sheer size and control of some of
fi
has whether technology might exacerbate social inequality
through the inability of poorer socio-demographic groups
to be able to access the same tools as those with more
income. Again, regulators have a sharp focus on this topic.
Finally, the ‘G’ (Governance) can be the most complicated
factor. Many technology companies by their very nature
are relatively new and at an early stage of development.
fl
between minority shareholders and founders, both in
strategy and sometimes in unhelpful share structures. Of
course, the more a company matures, the less of a problem
this usually becomes.
Summary:
– The manager has extensive resources dedicated to
independent research into investee company ESG
factors and potential risks.
– ESG risk consideration is embedded in the investment
process of the portfolio management team. See page
23 of the Investment Manager’s Review.
– AllianzGI invest as long term investors with an inherent
belief in the importance of stewardship and governance.
Overall introduction to ESG
The AllianzGI portfolio managers integrate the
consideration of Environmental, Social and Governance
(ESG) factors into the research process for the Company’s
portfolio.
This process ensures:
– Formal consideration of Environmental, Social and
Governance factors
– Companies with a low score on any ESG factor, are either
fi
manager to remain in the portfolio
– An independent view from a separate team within
AllianzGI
– Long-term risk assessment is enhanced.
Integrated ESG & Stewardship
In AllianzGI’s research process, environmental, social and
governance factors are integrated with more traditional
fi
how a business interacts with the environment, treats
its employees and deals with customers and suppliers,
valuable insights can be learnt as to its future prospects
and to long term risks which might not be evident in
fi
As discussed in the Chairman’s Statement on page 6
and Investment Manager’s Review starting on page 23,
the ESG considerations are integrated within the whole
process of stock selection and portfolio construction.
How AllianzGI has integrated ESG in portfolio
management
AllianzGI has an integrated ESG team which includes
a dedicated ESG research team. Within this approach
fi
investment analysis and decision making in a systematic
and disciplined way, without constraining the investment
universe. This works by ensuring the portfolio management
team is responsible for questioning any potential holdings
43
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
with low ESG ratings and contributing to a “digital debate”
about companies’ ESG risks. This internal crowdsourcing
ensures that experienced portfolio managers and industry
analysts contribute their views on ESG risk.
ff
Socially Responsible Investing (SRI). In an SRI approach,
investment universes are explicitly required to avoid “bad
companies” so that portfolios can be skewed toward
“good companies”.
AllianzGI believes that ESG risk, once properly understood,
should be considered in the context of risk/reward, like
all other risks considered by the Portfolio Manager.
Furthermore, they believe that 3rd party ESG/SRI research
is too dependent on limited company disclosures and is
fl
objectives. Therefore, AllianzGI analysts and portfolio
managers challenge 3rd party research, developing their
own conclusions based on material risks.
AllianzGI’s dedicated ESG research team provides
portfolio managers and sector analysts with ESG
knowledge and insights contributing to better investment
decisions as they consider ESG risks and opportunities that
may not have been fully priced by the markets. The ESG
ff
spectrum of ESG-related requirements.
The UK Stewardship Code and Exercise of
Voting Powers
The Company’s investments are held in a nominee name.
The Board has delegated discretion to discharge its
responsibilities in respect of investments, including the
exercise of voting powers on its behalf, to the Investment
Manager, AllianzGI. The Stewardship Code published
by the FRC sets out good practice on engagement with
investee companies. The FRC sees it as complementary to
the UK Corporate Governance Code.
The AllianzGI policy statement on the Stewardship
Code has been reviewed by the Board and it believes
that the Company’s delegated voting powers are being
properly executed. AllianzGI subscribes to the ISS Proxy
Voting Services. ISS manages the voting process and
recommends actions based upon AllianzGI’s Global
Proxy Voting Policy Guidelines. Where recommendations
are for a vote to be cast against a resolution or for an
abstention, and for all general meeting resolutions, the
relevant portfolio managers or analysts are consulted and
ff
for such deviations are recorded as are all the reasons
for abstaining on or voting against any resolution. In the
event of a Director holding a board position of one of
the companies which the Company has invested in, they
would be prohibited from decision making regarding that
company.
Corporate Social Responsibility (CSR),
Community and Employee Responsibilities,
Emissions, Environmental and Ethical Policy
(EEE)
The Company’s investment activities and day to day
management are delegated to the Manager and other
third parties. As an investment trust, the Company has
no direct social, community, employee or environmental
impact, though the Board maintains appropriate
oversight of such factors in relation to contracted service
providers. Its principal responsibility to shareholders is to
ensure that the investment portfolio is properly managed
and invested.
In light of the nature of the Company’s business there are
no associated human rights issues and the Company does
not have a human rights policy. The Company does not
maintain premises, hold any physical assets or operations
and does not have any employees. Consequently, the
Company has no greenhouse gas emissions to report
from its operations, nor does it have responsibility for any
other emissions producing sources under the Companies
Act 2006 (Strategic Report and Directors’ Reports)
Regulations 2013. The Board has noted the Investment
Manager’s report on greenhouse gas emissions on its
own operations and the views of the Investment Manager
on CSR and EEE which it adheres to in engaging with
the underlying investee companies and in exercising
its delegated responsibilities in voting. The Investment
Manager engages with the Company’s underlying
investee companies in relation to their corporate
governance practices and in developing their policies on
social, community and environmental matters.
The Company’s primary objective is to invest principally
in the equity securities of quoted technology companies
on a worldwide basis with the aim of achieving long-
term capital growth. Whilst the Board believes that the
fi
shareholders if investment decisions were based solely
on CSR and EEE considerations, we are supportive of
an investment management process that considers all
elements of wider ESG risk in the context of risk/reward,
like all other risks considered by the Manager.
By order of the board
Eleanor Emuss
Company Secretary
8 March 2022
44
Directors’
Review
Directors’ Report
The Directors present their Report and the audited Financial
Statements for the year ended 31 December 2021.
Information pertaining to the business review including the
outlook and future development, is included in the Strategic
Report, starting on page 36 and within the Chairman’s
Statement on page 9.
Principal Activity and Status
The Company was incorporated on 18 October 1995 and its
Ordinary Shares were listed on the London Stock Exchange
on 4 December 1995. The Company is registered as a
public limited company in England under company number
3117355. The Company is an investment company within
the meaning of section 833 of the Companies Act 2006 and
carries on business as an investment trust. The Company is
a member of the Association of Investment Companies. The
Company is an approved investment trust under sections
1158 and 1159 of the Corporation Taxes Act 2010 and
Part 2 Chapter 1 of Statutory Instrument 2011/2999. This
approval relates to accounting periods commencing on or
after 1 December 2012. The Directors are of the opinion,
under advice, that the Company has continued to conduct
ff
investment trust pursuant to section 1158 of the Corporation
Tax Act 2010, the Financial Conduct Authority (FCA) rules
in relation to non-mainstream investment products do not
apply to the Company.
Investment Objective
The Company invests principally in the equity securities of
quoted technology companies on a worldwide basis with
the aim of achieving long-term capital growth, in excess of
the Dow Jones World Technology Index (sterling adjusted,
total return) (the Benchmark).
Investment Funds
The market value of the Company’s investments at 31
December 2021 was £1,428m (2020: £1,216m) with gains
of £408m (2020: £399m) over book cost. Taking these
investments at this valuation, the net assets attributable to
each Ordinary Share amounted to 347.9p at 31 December
2021 (2020: 291.3p). It should be noted that at the AGM
held on 29 April 2021, shareholders voted in favour of a
share split of 10 to 1. During the year, the Company did not
enter into any derivative contracts and therefore there were
no outstanding contracts as at 31 December 2021. See
fi
describing the Company’s exposure to price risk, credit risk,
fl
Information pertaining to the business review and future
outlook can be found in the Strategic Report starting on
page 36.
Investment Management Agreement
As a result of the UK leaving the EU on 30 January 2020,
and the agreed transition period ending on 31 December
2020, Allianz Global Investors GmbH, UK Branch (AllianzGI)
entered into the UK Temporary Permissions Regime (TPR)
and they were required to seek authorisation from the
Financial Conduct Authority (FCA) to continue to operate
in the UK. This has involved changes to AllianzGI’s legal
set up by forming a UK management company to ensure
compliance with the UK regulatory regime. The licence
application was submitted to the FCA by 30 September
2021 and AllianzGI are awaiting feedback on this from the
FCA.
The management contract with AllianzGI, in place during
the year under review is terminable at six months’ notice
(2020: six months). Under the contract, AllianzGI provides
investment management, accounting, company secretarial
and administration services. There is a tiered management
fee of 0.8% for any market capitalisation up to £400m,
0.6% for any market capitalisation between £400m and £1
billion, and 0.5% for any market capitalisation over £1 billion,
payable quarterly in arrears and calculated on the average
value of the market capitalisation of the Company at the
last business day of each month in the relevant quarter.
There is a fee of £55,000 per annum (2020: £55,000 per
annum) to cover AllianzGI’s administration costs.
In addition, the Investment Manager is entitled to a
performance fee, subject to a ‘high water mark’ (HWM),
based on the level of outperformance of the Company’s
net asset value (NAV) per share over its benchmark, the
Dow Jones World Technology Index (sterling adjusted,
total return), during the relevant Performance Period.
The performance fee is calculated as 12.5% (2020: 12.5%)
of outperformance against the Company’s benchmark
after adjusting for share issuances and buybacks. This is
capped at 2.25% of the Company’s NAV at the relevant
year end. Any outperformance in excess of the cap (or
where the HWM has not been met) shall be carried forward
ff
underperformance but not to generate a performance fee.
To the extent that the Company has underperformed the
benchmark, such underperformance is carried forward and
ff
can be paid. Underperformance/ outperformance amounts
fiff
performance fee accrued for the year ended 31 December
2021 (2020: £24.7m). See also Note 2 on page 79.
A review of the performance fee took place during the
year. It was agreed that the following changes would
ff
will be calculated as 10% of outperformance against the
benchmark, after adjusting for changes in share capital
and will be capped at 1.75% of the Company’s average
daily NAV over the relevant year.
45
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Continuing Appointment of the Investment Manager
During the year, in accordance with the Listing Rules published by the FCA, the Board reviewed the performance of the
Investment Manager. The review considered the Company’s investment performance over both the short and longer terms,
together with the quality and adequacy of other services provided. The Board also reviewed the appropriateness of the terms
of the Investment Management Agreement, in particular the length of notice period and the management fee structure.
fi
Management Agreement is in the best interests of shareholders as a whole.
Going Concern
fi
fi
greater than its liabilities. The Directors have considered the Company’s investment objective and capital structure both in
general terms and in the context of the Covid-19 pandemic. The directors have also considered the risks and consequences
fi
fi
fi
Shareholders at the AGM in 2021.
Related Party Transactions
fifffi
or the performance of the Company.
Capital Structure
The Company’s capital structure is set out in Note 10 on page 84.
Voting Rights in the Company’s Shares
As at 1 March 2022, Allianz Technology Trust PLC’s capital consisted of:
Share class
Number of
shares issued
Voting rights
per share
Total
voting rights
Ordinary Shares of 2.5p in issue 422,944,095 1 422,944,095
Ordinary Shares of 2.5p held in treasury 5,812,585 Nil Nil
Total 428,756,680 1 422,944,095
Interests in the Company’s Share Capital
Information on major interests in shares provided to the Company under the Disclosure Guidance and Transparency Rules
(DTR) of the Financial Conduct Authority is published via a Regulatory Information Service. The Company has received the
fi
fifi
fi
percentages shown are based on the total voting rights as at 31 December 2021 and 1 March 2022 respectively.
31 December 2021
Total Voting rights
1 March 2022*
Total Voting rights
Holder
Number of
shares
% of
capital
Number of
shares
% of
capital
Rathbones Brothers PLC 50,765,850 11.8 50,765,850 11.8
Charles Stanley Group 13,046,070 3.0 13,046,070 3.0
Brewin Dolphin 12,958,550 3.0 12,958,550 3.0
* Latest practical date
ff
capital held by these companies.
46
Directors’
Review
Repurchase and Reissue of Shares
At the Annual General Meeting (AGM) held on 29 April 2021,
authority was granted for the repurchase of up to 64,270,626
Ordinary Shares of 2.5p each, representing 14.99% of the
issued share capital at the time. The Board has in place a
discretionary discount protection mechanism, described in
the Chairman’s Statement and in the Strategic Report. In
the year under review the Company bought back 5,565,090
shares for holding in treasury (2020: nil).
The Board and Gender Diversity
The Board currently consists of a non-executive Chairman,
Robert Jeens, and four non-executive Directors. The names
ffi
December 2021 and at the date of this Report appear
on pages 34 and 35 and indicate their range of
investment, industrial, commercial and professional
experience. Three of the Company’s Directors are male and
two are female. As the Company is an investment trust,
all of its activities are outsourced and it does not have any
employees. Therefore it has nothing further to report in
respect of gender representation within the Company.
Directors Election and Re-elections
The Directors of the Company, with the exception of Tim
fi
will stand for re-election by the shareholders at the AGM in
fi
joined the board on 1 December 2021, will stand for election
at the AGM. The biographies of the Directors are set out
on pages 34 and 35. The skills and experience each
Director brings to the Board for the long-term sustainable
success of the Company are set out below. The attendance
record of each Director at meetings of the Board through the
year is shown on page 34.
– Resolution 2 relates to the re-election of Robert Jeens as
the Chairman, who was appointed on 1 August 2013, who
brings in-depth knowledge, expertise and experience in
investment management, most recently from his time as a
non-executive director of Henderson Group plc.
– Resolution 3 relates to the re-election of Humphrey van
der Klugt who was appointed on 1 July 2015, who has
a wealth of experience from his time as an investment
manager and investment company director, with strong
accounting skills which enables him to perform an in-
fi
Audit & Risk Committee Chairman. He is also Chairman
of the Remuneration Committee as well as the Senior
Independent Director.
– Resolution 4 relates to the re-election of Elisabeth Scott
who was appointed on 1 February 2015, who brings in-
depth investment knowledge, expertise and experience
of the investment management industry from her time in
Hong Kong and more recently from being the Chair of the
AIC.
– Resolution 5 relates to the re-election of Neeta Patel who
was appointed on 1 September 2020 as a Director of
the Company. Neeta brings a wealth of knowledge from
the technology sector, most notably as CEO for Centre of
Entrepreneurs.
– fi
was appointed on 1 December 2021 as a Director of the
Company. Tim brings a wealth of investment knowledge,
expertise and experience in investment management,
particularly in equities.
Directors’ Fees
A report on Directors’ Remuneration starts on page 57.
Directors’ and Officers’ Liability Insurance
ffi
and is provided at the expense of the Company. Directors’
ffi
on page 52.
Conflicts of Interest
Under the Companies Act 2006 a director must avoid a
situation where she/he has, or can have, a direct or indirect
flfl
Company’s interests. Directors are able, if appropriate, to
flfl
reports annually on the Company’s procedures for ensuring
fl
ff
Under the AIC Code 2019, the Directors are required to notify
the Chairman and Company Secretary of any proposed new
flfl
consideration, if necessary, by the Board. The Directors are
required to list their current time constraints when requesting
fi
ff
that the agreed procedures have been followed in the year
under review.
Board Committees
For the year under review the Management Engagement
and the Nomination Committees were chaired by the
Chairman of the Company, Robert Jeens. The Audit & Risk
Committee and Remuneration Committee were chaired by
Humphrey van der Klugt. The full Terms of Reference, which
fi
obtained from the Company Secretary and can be found on
the website www.allianztechnologytrust.com.
Management Engagement Committee
The Management Engagement Committee report is on
page 54.
Nomination Committee
The Nomination Committee report is on page 55.
Remuneration Committee
The Remuneration Committee report is on page 56.
Audit & Risk Committee
The Audit & Risk Committee Report starts on page 62.
47
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
The Board and Matters Reserved for the Board
ffiff
leadership of the Company and for the Company’s
ff
for the decision of the Board and there is an agreed
procedure for Directors, in the furtherance of their duties,
to take independent professional advice if necessary
fi
for the Board include the setting of parameters for and
the monitoring of investment strategy, the review of
investment performance (including performance relative
to the benchmark and to the Company’s peer group) and
fi
2006 requirements including the payment of any dividend
and the allotment of shares; matters of a Stock Exchange
or Internal Control nature such as approval of shareholder
statutory documentation; performance reviews and director
independence; and, in particular matters of a strategic or
management nature, such as the Company’s long term
objectives, commercial and corporate strategy, share
buy-back and share issue policy, share price and discount/
premium monitoring; the appointment or removal of the
Investment Manager; unquoted investment valuations;
fi
and limits and corporate governance matters.
In order to enable them to discharge their responsibilities,
prior to each meeting Directors are provided, in a timely
manner, with a comprehensive set of papers giving detailed
fi
position and performance. Representatives of the Investment
Manager attend each Board meeting, enabling the Directors
fifi
on matters of concern. A full report is received from the
Investment Manager at each meeting. In the light of these
reports, the Board reviews compliance with the Company’s
stated investment objectives and, within these established
guidelines, the Investment Manager takes decisions as to the
purchase and sale of individual investments.
Whistleblowing
As the Company has no employees it does not have a
fi
concerns about improprieties for appropriate independent
investigation. The Audit & Risk Committee has, however,
received and noted the Manager’s policy on this matter.
However, any matters concerning the Company may be
raised with the Chairman or Senior Independent Director.
Modern Slavery Act 2015
The Company does not provide goods or services in the
fi
vehicle does not have customers. The Directors do not
therefore consider that the Company is required to make a
statement under the Modern Slavery Act 2015 in relation to
ffi
Bribery Act 2010
The Board has a zero tolerance policy in relation to bribery
and corruption in its business processes and activities and
has received assurance via internal controls reporting from
the Company’s main third party service providers that
adequate safeguards are in place to protect against any such
potentially illegal behaviour by employees or agents.
Electronic Communications
The Company has enabled electronic communications
whereby shareholders may opt to receive documents
electronically. Shareholders who opted for this receive either
an email, where an email address has been registered, or
letter notifying them of the availability of the Company’s
Annual Report, Half-Year Report and any other Shareholder
documents on the Company’s website. Those that elected not
to switch to electronic means will continue to receive hard-
copy documents by post. In order to reduce the Company’s
impact on the environment we encourage Shareholders,
wherever possible, to register an email address and to receive
fi
available postal copies where required.
Common Reporting Standard (CRS)
CRS is a global standard for the automatic exchange of
information commissioned by the Organisation for Economic
Cooperation and Development and incorporated into UK law
by the International Tax Compliance Regulations 2015. CRS
requires the Company to provide certain additional details to
HMRC in relation to UK resident foreign investment holders.
The reporting obligation began in 2016 and is an annual
requirement. The Registrars, Link Group, are appointed to
fi
behalf of the Company.
Safe Custody
The Company’s listed investments are held in safe custody by
HSBC Bank Plc (the “Custodian”). Operational matters with
the Custodian are carried out on the Company’s behalf by the
Manager in accordance with the provisions of the investment
management agreement. The Custodian is paid a variable
fee dependent on the number of trades transacted and
location of the securities held.
Depositary
HSBC Securities Services (the “Depositary”) acts as the
Company’s Depositary in accordance with the Alternative
Investment Fund Managers Directive (AIFMD). The
Depositary’s responsibilities, which are set out in the Investor
Disclosure Document on the Company’s website, include
cash monitoring; ensuring the proper segregation and safe
fi
by the Custodian; and monitoring the Company’s compliance
with investment and leverage limit requirements.
Although the Depositary has delegated the safekeeping of
all assets held within the Company’s investment portfolio
to the Custodian, in the event of loss of those assets
fi
48
Directors’
Review
fi
instruments of an identical type, or the corresponding amount
of money, unless it can demonstrate that the loss has arisen
as a result of an external event beyond its reasonable control,
the consequences of which would have been unavoidable
ff
Directors’ Responsibility, Accountability and Audit
The Directors’ Statement of Responsibilities in respect
fi
Independent Auditors’ Report starts on page 66. The
Board has delegated contractually to external agencies,
including the Investment Manager, the management of the
investment portfolio, the custodial services (which include
the safeguarding of the assets), the day to day accounting,
company secretarial and administration requirements and
the registration services.
Each of these contracts was entered into after full and proper
consideration by the Board of the quality and cost of the
ff
ff
Board receives and considers regular reports from the
Investment Manager and ad hoc reports and information
are supplied to the Board as required.
Auditor objectivity and independence
Grant Thornton UK LLP is the Auditor of the Company. The
Board believes that auditor objectivity and independence
is safeguarded for the following reasons: the extent of non-
audit work which may be carried out by Grant Thornton
flfi
role as auditor to the Company; Grant Thornton UK LLP has
provided information on its independence policies and the
safeguards and procedures it has developed to counter
fi
is independent within the meaning of all regulatory and
professional requirements and that the objectivity of the
audit team is not impaired.
fi
that:
(a) in so far as the director is aware, there is no relevant
audit information of which the Company’s auditors are
unaware; and
(b) the director has taken all the steps he or she ought to
have taken as a director in order to make himself/ herself
aware of any relevant audit information and to establish
that the Company’s auditor is aware of that information.
fi
in accordance with the provisions of section 418 of the
Companies Act 2006. Due to the requirement to change
auditor before 31 December 2023, Grant Thornton UK LLP
will step down as the auditor of the Company. As described
in the Audit & Risk Committee report on page 62, an audit
tender process was undertaken in 2021. The new auditor
Mazars LLP will be proposed at the forthcoming AGM.
Annual General Meeting
The AGM will be held as a hybrid meeting for 2022. This
means that if the government rules allow, there will be
an in person meeting as well as it being streamed live
for those shareholders who cannot attend in person. The
formal Notice of AGM, including instructions on how to join
online, starts on page 96. The Directors consider that
the resolutions relating to the items of special business, as
detailed below, are in the best interests of shareholders
as a whole. Accordingly, the Directors unanimously
recommend to the shareholders that they vote in favour of
the resolutions to be proposed at the forthcoming AGM,
as they intend to do in respect of their own holdings of
Ordinary Shares.
The Board welcomes all shareholders to the hybrid AGM
at which the Investment Manager will present his review
of the year and prospects for the future. Additionally,
shareholders wishing to communicate directly with the
Board may make contact via the Investment Manager
or Company Secretary, details of whom can be found on
page 93.
The following Resolutions relating to items of special
business will be proposed:
Authority to allot new shares, and to Disapply Pre-
Emption Rights
Resolutions authorising the Directors to allot new share
capital and to sell shares held as treasury shares for cash
and to disapply pre-emption rights in relation to such
were passed at the AGM of the Company on 29 April 2021
under Section 551 and Section 570 of the Companies Act
2006 and these authorities will expire on 29 June 2022.
Approval is therefore being sought for the renewal of the
Directors’ authority to allot new shares up to an aggregate
nominal amount of £10,718,917, being 42,875,668
ff
as is equal to 10% of the issued share capital at the date
of the AGM, and also renewal of the Directors’ authority to
sell shares held as Treasury Shares.
Approval is also sought for the renewal of the authority to
disapply pre-emption rights in respect of the allotment of
new shares or the sale by the Company of shares held by
it as Treasury Shares, for cash up to an aggregate nominal
value of £10,718,917, being 42,875,668 Ordinary Shares
ff
share capital at the date of the AGM.
Approval is also being sought for three secondary
authorities, to allot new shares, to sell shares held as
Treasury Shares, and to disapply pre-emption rights.
If passed, these authorities will remain in place until the
conclusion of the next AGM of the Company, or, if earlier,
on 26 June 2023.
The Directors do not currently intend to allot new shares
under these authorities other than to take advantage of
opportunities in the market as they arise and/or to seek
to manage demand for the Company’s shares and the
49
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
premium to NAV per share at which they trade, and only if
they believe it would be advantageous to the Company’s
fi
no allotments of new shares will be made unless the
ff
at a premium to net asset value. Treasury Shares may be
resold by the Company at a discount to NAV provided that
such shares are sold by the Company at a lower discount
to the NAV per share than the average discount at which
they were repurchased by the Company.
Continuation of share buy-back programme
A resolution authorising the Directors to make market
purchases of the Company’s Ordinary Shares was passed
at the AGM of the Company on 29 April 2021.
The Board is proposing the renewal of the Company’s
authority to make market purchases of Ordinary Shares
either for cancellation or for holding in treasury. The Board
believes that such purchases in the market at appropriate
times and prices may be a suitable method of enhancing
shareholder value. The Company would make either a
single purchase or a series of purchases, when market
conditions are suitable and within guidelines set from
time to time by the Board, with the aim of maximising the
fi
The Board believes that the Company’s ability to
purchase its own shares may assist liquidity in the market.
Additionally, where purchases are made at prices below
the prevailing NAV, this enhances the NAV for the
remaining shareholders. It is therefore intended that
purchases will only be made at prices below NAV, with
the purchases to be funded from the realised capital
fi
The rules of the UK Listing Authority limit the maximum
price which may be paid by the Company to 105% of the
average middle-market quotation for an Ordinary Share
on the 5 business days immediately preceding the date
of the relevant purchase. The minimum price to be paid
will be 2.5p per Ordinary Share (being the nominal value).
Overall, these share buy-back proposals should help
to reduce the discount to NAV at which the Company’s
shares are then trading. Under the FCA Listing Rules, a
company is permitted to purchase up to 14.99% of its
equity share capital through market purchases pursuant
to a general authority granted by shareholders in general
meeting.
The current authority expires at the conclusion of the
forthcoming AGM. Accordingly, a Special Resolution will
be proposed at the AGM to renew the authority to make
market purchases of up to 14.99% of the Company’s issued
Ordinary Share capital, being equivalent to 64,270,626
Ordinary Shares or, in the event of change in the issued
share capital between the date of this Report and the
AGM to be held on 26 April 2022, an amount equal to
14.99% of the Company’s issued Ordinary Share capital at
the date of the AGM.
By order of the Board
Eleanor Emuss
Company Secretary
8 March 2022
50
Directors’
Review
The Board recognises the importance of a strong corporate
governance culture that meets the listing requirements.
The Board has put in place a framework for corporate
governance which it believes is appropriate for an
investment company in line with the best practices in
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regulators and other stakeholders of the Company. With
a range of relevant skills and experience, all Directors
contribute to the Board discussions and debates on
corporate governance. In particular, the Board believes
in providing as much transparency for investors as is
reasonably possible to ensure investors can clearly
understand the prospects of the business and enhance
liquidity of its shares while also preserving an appropriate
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The Board has considered the Principles and Provisions of
the AIC Code of Corporate Governance (AIC Code) issued
in February 2019. The AIC Code addresses the Principles
and Provisions set out in the UK Corporate Governance
Code (the UK Code), as well as setting out additional
fi
Company. The UK Code was updated in July 2018.
The Board considers that reporting against the Principles
and Provisions of the AIC Code, which has been endorsed
by the FRC, provides more relevant information to
shareholders.
The AIC Code is available on the Company’s and AIC’s
websites. It includes an explanation of how the AIC Code
adapts to the Principles and Provisions set out in the UK
Code to make them relevant for investment companies.
Application of the Provisions and Principles
The Company has compiled with the Principles and
Provisions of the AIC Code during the year ended 31
December 2021. Where the Principles and Provisions are
related to the role of the chief executive, internal audit
function and executive directors’ remuneration, the Board
considers these principles not relevant as the Company is
an externally managed Company with an entirely non-
executive Board, no employees or internal operations.
The Board
ff
ffff
leadership so that the Company has the platform from
which is can achieve its investment objective. Its role is to
guide the overall business strategy to achieve long term
fi
description of the Company’s strategy can be found on
page 36. Strategic issues and all operational matters of
a material nature are considered at its meetings.
fi
executive Directors, of whom Robert Jeens is Chairman.
A formal schedule of matters reserved for decision by
the Board has been adopted. The Board has engaged
fi
secretarial, depositary and custodial services. Contractual
arrangements are in place between the Company and
fi
guidelines for determining the independence of non-
executive Directors, placing particular weight on the
view that independence is evidenced by an individual
being independent of mind, character and judgement.
All Directors are presently considered to be independent
in accordance with Provision 23 of the AIC Code. All
Directors retire at the AGM each year and, if appropriate,
seek re-election. Each Director has signed a letter of
appointment to formalise the terms of their engagement
as a non-executive Director, therefore they do not have a
service contract with the Company. Copies of the letter of
engagements are available on request and at the AGM.
Appointments to the Board
The Board regularly reviews its composition, having regard
to the Board’s structure and to the present and future
needs of the Company. The Board takes into account its
diversity, the balance of expertise and skills brought by
individual Directors, and length of service, where continuity
fi
the Board and believes that this provides for a sound base
from which the interests of investors will be served to a high
standard.
fi
of experience, skills, length of service and backgrounds.
The Board is also of the view that length of service will not
necessarily compromise the independence or contribution
of directors of an investment trust company or, indeed, its
fi
to the strength of the Board especially in times of market
turbulence. All the current Directors have served for fewer
than nine years. The Directors’ appointments are formally
fi
of joining the Board. In line with the principles of the AIC
Code, each Director will stand for re-election annually at
the AGM. The biographies of each Director can be found on
pages 34 and 35 and the ordinary resolutions for their
election and re-election on page 47.
The Board appoints all directors on merit and under the
Articles of Association of the Company, the number of
Directors may be no more than ten and no less than two.
A director may be appointed by ordinary resolution. When
the Nomination Committee considers Board succession
planning and recommends appointments to the Board,
it takes into account a variety of factors. Knowledge,
experience, skills, personal qualities, residency and
governance credentials play an important part. During the
Corporate Governance Statement
51
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
year under review, there were no retirements and one new
fi
a process run by Sapphire Partners, an external recruitment
agency, provides additional expertise in investment
management.
Meetings
The Board is scheduled to meet at least four times a year
and between these formal meetings there is regular contact
with the Investment Manager, the Company Secretary
and the Company’s Brokers. The Directors are kept fully
fi
matters that are relevant to the business of the Company
that should be brought to the attention of the Directors.
The Directors also have access, where necessary in the
furtherance of their duties, to independent professional
advice at the expense of the Company. The attendance
record of Directors for the period to 31 December 2021 is
set out on page 34.
The Board considers agenda items laid out in the notice
and agenda of each meeting which are circulated to
the Board in advance of the meeting as part of the
Board papers. Directors may request any agenda items
to be added that they consider appropriate for Board
discussion. Each Director is required to inform the Board
fl
Board discussion. The Board constantly considers the
Company’s strategy with regard to market conditions and
feedback from shareholders received directly or from the
Managers. The investment strategy is reviewed regularly
with the Investment Manager. Board meetings include a
review of investment performance and associated matters
such as health and safety, marketing/ investor relations,
risk management, gearing, general administration and
compliance, peer group information and industry issues.
Board Evaluation
The Board evaluates its performance and considers
the tenure and independence of each Director on an
annual basis. During 2021, an internal Board evaluation
was conducted where by each Director was required to
complete an in-depth questionnaire on the workings
of and individual contributions to the Board as a whole
and the performance of the Chairman. The results
were discussed at the Nomination Committee held in
November 2021 and it was concluded that the evaluation
process has been satisfactory.
Each Director believes that the composition of the
fl
and experience, and that the Board, as a whole, and
ff
to the Covid-19 pandemic, all meetings of the Board
and Committees, apart from those in September and
November 2021, were held virtually during 2021. The
composition of the Board, Committees and tenure of
the Chairman are reviewed annually by the Nomination
Committee. Further details can be found on page 55.
The Board is diverse in its composition and thought
processes. The Directors have a breadth of experience
relevant to the Company. The Directors believe that any
changes to the Board’s composition can be managed
without undue disruption. The members of the Board strive
to challenge each other constructively to make sure all
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holds the Managers properly to account on their progress
on inclusion and diversity.
The Board recommends the re-election of Directors and
supporting biographies are disclosed on pages 34 and
35 of this annual report.
Delegation of Responsibilities
The Board has delegated the following areas of
responsibility: The day-to-day administration of the
Company has been delegated to Allianz Global Investors
GmbH, UK Branch in its capacity as Company Secretary
and Administrator. As noted in the Directors’ Report,
AllianzGI is in the process of obtaining a UK license from
FCA to continue to operate in the UK. More information can
be found on page 45.
The Investment Manager has full discretion (within agreed
parameters) to make investments in accordance with the
Company’s Investment Policy and has responsibility for
fi
fi
fi
existing portfolio as a whole, including the sourcing of
new investments, preparing the valuations, the statutory
accounts, the management accounts, presenting results
and information to shareholders, coordinating all corporate
service providers to the Company and giving the Board
general advice.
Directors’ and Officers’ Deed of Indemnity
The Company has also entered into qualifying third
party deeds of indemnity with each Director to cover any
liabilities that may arise to a third party, other than the
Company, for negligence, default or breach of trust or duty.
The deeds were in force during the year to 31 December
2021 and up to the date of approval of this report. The
fi
Company or costs incurred in connection with criminal
proceedings in which the Director is convicted or required to
fiffi
Liabilities insurance information can be found on page
47.
Training and Advice
New Directors are provided with an induction programme
that is tailored to the particular requirements of the
fi
ff
Company. Directors are also encouraged to attend industry
and other seminars. Directors, in the furtherance of their
duties, may also seek independent professional advice
52
Directors’
Review
at the expense of the Company. No Director took such
fi
have access to the advice and services of the Company’s
Secretary, who is responsible to the Board for ensuring that
Board procedures are followed and that applicable rules
and regulations are complied with. The Company Secretary
is also responsible for advising the Board through the
Chairman on all governance matters.
Conflicts of Interest
Company directors have a statutory obligation to avoid a
situation in which they (and connected persons) have, or
fl
fl
Board has in place procedures for managing any actual or
fl
fl
Alternative Performance Measures
In addition to providing guidance on Corporate
Governance, the AIC provides the investment company
industry with leadership on the reporting of alternative
performance measures to support a fair and balanced
approach to the performance of your Company. A glossary
of Alternative Performance Measures (APMs) can be found
on page 92.
Audit, Risk Management & Internal Controls
For the reasons previously mentioned, the Directors
consider the provisions relating to the internal audit as not
relevant to the Company.
There is an Audit & Risk Committee, which is chaired by
Humphrey van der Klugt, that meets at least twice a year
and the full Audit & Risk Committee Report starts on page
62.
The Directors are responsible for overseeing the
ff
systems for the Company, which are designed to ensure
that proper accounting records are maintained, that the
fi
made and which is issued for publication is reliable, and
that the assets of the Company are safeguarded. Such a
system of internal control is designed to manage rather
than eliminate the risks of failure to achieve the Company’s
business objectives and can only provide reasonable and
not absolute assurance against material misstatement or
loss.
The Directors, through the procedures outlined below and
further detailed in the Strategic Report and the Audit &
ff
the Company’s risk management and internal controls
under review throughout the year covered by these
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fi
risk management controls in the key areas of investment
strategy, technology sector risk, cyber risk, market risk,
fi
for extended review. Emerging risks are also considered by
the Board.
The Directors’ Statement of Responsibilities, set out on
fi
assessment of the emerging and principal risks facing the
Company, including those that would threaten its business
model, future performance, solvency or liquidity and
reputation.
The Investment Manager has established an internal
control framework to provide reasonable assurance on the
ff
of its clients. The Investment Manager’s compliance and
ff
controls on an ongoing basis.
The Investment Manager provides the Board with regular
reports on all aspects of internal control (including
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management and relationships with external service
providers). Business risks have been analysed and recorded
in a Risk Matrix, which is formally reviewed by the Audit
& Risk Committee at its meetings and at other times as
necessary. It is believed that an appropriate framework is in
place to meet the requirements of the AIC Code 2019.
The Investment Manager, at least on a quarterly basis,
reports to the Board on the market and on the investment
performance of the Company’s portfolio. Further
information is contained in the Chairman’s Statement, the
Directors’ Report and the Investment Managers’ Review.
Relations with Shareholders
During 2021 due to the Covid-19 pandemic, the
Company had regular virtual contact with its institutional
shareholders particularly through the Investment Manager.
The AGM will be held as a hybrid meeting and will allow
shareholders to ask the Board questions.
The Board and the Annual Report
The Board is responsible for reviewing the entire annual
report and has noted the supporting information received
and the recommendations of the Audit & Risk Committee.
The Board has considered whether the annual report
fl
activities and performance in the year under review with a
clear link between the relevant sections of the report. The
fi
taken as a whole, is fair, balanced and understandable
and provides the information necessary for Shareholders to
assess the Company’s position and performance, business
model and strategy.
By order of the Board
Eleanor Emuss
Company Secretary
8 March 2022
53
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Role of the Committee
The role of the Management Engagement Committee is
to review the investment management agreement and
the Company’s Service Providers. The Committee monitors
the performance of the Manager for the investment,
fi
support services that it provides under that agreement.
It also reviews the terms of the agreement including the
level and structure of fees payable, the length of notice
period and best practice provisions generally. All of the
Committee’s responsibilities have been carried out over
the course of the year under review.
Composition of the Committee
All the Directors are members of the Committee. The terms
of reference can be found on the Company’s website www.
allianztechnologytrust.com
Manager Evaluation Process
During the year under review, the Committee met once
to consider the relationship, and the services provided by
the Manager prior to making its recommendation to the
Board on the retention of the Manager being in the best
interests of the Shareholders.
During the year under review, the Committee reviewed
the performance fee arrangements to ensure they were
still appropriate for the size of the Company. As noted in
both the Chairman’s Statement on page 7 and in the
Directors’ Report on page 45, a change was negotiated
with the Manager.
The performance of the Manager is considered at
every Board meeting with a formal evaluation by the
Committee each year. For the purpose of its ongoing
monitoring, the Board receives detailed reports and views
from the Manager on the investment policy and strategies,
asset allocation, stock selection, attributions, portfolio
characteristics and risk. The Board also assesses the
Manager’s performance against the investment controls
set by the Board.
A breakdown of the portfolio begins on page 30.
Manager Reappointment
The Committee last met in November 2021 and in a
closed session after the presentation from the Manager,
it was concluded that in its opinion the continuing
appointment of the Manager on the terms agreed
was in the interests of shareholders as a whole and
recommended this to the Board.
Committee Evaluation
The activities of the Management Engagement
Committee were considered as part of the Board
appraisal process completed in accordance with standard
governance arrangements as summarised on page 52.
The conclusion from the process was that the Committee
ff
membership and skills.
Robert Jeens
Management Engagement Committee Chairman
8 March 2022
Report of the Management Engagement
Committee
54
Directors’
Review
Role of the Committee
The primary role of the Nomination Committee is to
review and make recommendations with regard to
Board structure, size and composition, the balance of
knowledge, experience, skill ranges and diversity and
consider succession planning and tenure policy. All of
the Committee’s responsibilities have been carried out
during the year under review. The Committee met on three
fi
monitored and reviewed the following matters:
– the structure and size of the Board and its composition
particularly in terms of succession planning and the
experience and skills of the individual Directors and
diversity across the Board as a whole;
– tenure policy;
– the criteria for future Board appointments and the
methods of recruitment, selection and appointment;
– the recruitment of a new Director and the
reappointment of those Directors standing for re-
election at annual general meetings;
– the need for any changes in committee membership;
– the attendance and time commitment of the Directors
fi
directorships;
– the question of each Director’s independence prior to
publication of the Report and Accounts; and
– fl
of interests in accordance with the provisions of the Act.
Composition of the Committee
The Committee is composed of all the current Directors
and chaired by the Chairman of the Board. The terms of
reference can be found on the Company’s website www.
allianztechnologytrust.com.
Succession Planning
There was one new appointment during the year under
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2021. The recruitment process was undertaken by an
independent recruitment agency, Sapphire Partners, who
were engaged for the sole purpose of recruiting a new
Director.
Board Evaluation
An external evaluation was last conducted in 2020, and
in 2021 the evaluation was performed internally. The
evaluation process adopted required each director to
complete an in-depth questionnaire on the workings
of and individual contributions to the Board as a whole
and the performance of the Chairman. Questions also
included a review of the interaction with the Investment
Manager. The Senior Independent Director led the
review of the Chairman. The results of the questionnaires
were collated anonymously and discussed at the
Committee meeting in November 2021. Any concerns
were discussed openly and addressed with all Directors
with the Investment Manager present. It was agreed by
all participants that the evaluation process had been
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and gender diversity is summarised on page 47.
Committee Evaluation
The activities of the Nomination Committee were
considered as part of the Board appraisal process
completed in accordance with standard governance
arrangements as summarised on page 52. The
conclusion from the process was that the Committee
ff
membership, experience and skills.
Robert Jeens
Nomination Committee Chairman
8 March 2022
Report of the Nomination Committee
55
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Role of the Committee
The primary role of the Remuneration Committee is to
determine the remuneration policy for the Chairman
and Directors as well as considering the need to appoint
external remuneration consultations. The Committee
ff
strategy at least once a year.
Composition of the Committee
The Committee comprises of all current Directors and
is chaired by Humphrey van der Klugt. The terms of
reference can be found on the Company’s website www.
allianztechnologytrust.com.
Consideration of Directors’ Remuneration
The Committee has not received independent advice or
services in respect of its consideration of the Directors’
remuneration; however the Company Secretary provides
the Board with details of comparable fees and other
market information. The policy is to review directors’ fee
rates from time to time, but reviews will not necessarily
result in a change to the rates. Any feedback received
from shareholders is also taken into account when setting
remuneration levels.
The level of Directors’ fees are recommended to and
approved by the Board. Directors abstain from voting on
their own fees. Directors’ remuneration is paid quarterly or
monthly in arrears and is paid to the individual director; no
payments have been made to third parties on behalf of
the individual.
A detailed summary of the Chairman and Directors’
remuneration starts on page 57.
Committee Evaluation
The activities of the Remuneration Committee were
considered as part of the Board appraisal process
completed in accordance with standard governance
arrangements as summarised on page 52. The
conclusion from the process was that the Committee was
ff
Humphrey van der Klugt
Remuneration Committee Chairman
8 March 2022
Report of the Remuneration Committee
56
Directors’
Review
Introduction
This Directors’ Remuneration Implementation Report (the Report) has been prepared in accordance with the
requirements of Sections 420-422A of the Companies Act 2006 and Schedule 8 of The Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations 2008 as amended in August 2013 (the Regulations). The
Report is subject to an annual advisory vote of shareholders and an Ordinary Resolution for the approval of the Report
will be put to the shareholders at the Annual General Meeting (AGM).
Remuneration Policy Report
The Remuneration Policy Report of the Company is required to be put to a binding vote of shareholders at least once
every three years; the policy was last proposed to and approved by shareholders at the AGM in 2021 and will therefore
next be proposed as a binding vote at the AGM in 2024. The Remuneration Policy Report follows on page 60 and is
available on the Company’s website www.allianztechnologytrust.com.
The law requires your Company’s Auditor to audit certain disclosures provided. Where disclosures have been audited,
they are noted as such. The Auditor’s opinion is included in their report which starts on page 66.
Remuneration Committee
A detailed description of the Committee’s role and members can be found on page 56.
Annual General Meeting (AGM) Voting Statement
At the AGM held on 29 April 2021, of the votes cast by proxy for the approval of the Remuneration Implementation
Report, 17,117,110 (99.65%) were cast in favour, 1,225 (0.041%) were cast as discretionary, 59,259 (0.34%) were cast
against and 32,790 (0.19%) shares were withheld from the vote. For the Remuneration Policy Report, which was last
proposed as a binding vote at the AGM held on 19 May 2020, of the votes cast for approval, 15,423,188 (99.71%) were
cast in favour, 6,676 (0.04%) were cast as discretionary, 23,189 (0.15%) were cast against and 15,208 (0.10%) shares were
withheld from the vote.
Annual Statement
The Chairman of the Remuneration Committee reports that the Directors’ remuneration will be increased as of 1 January
2022 as set out on page 58.
Relative importance of spend on pay
The following disclosure is a statutory requirement. The directors, however, do not consider that the comparison of
directors’ remuneration with distributions made by the Company is a meaningful measure of the Company’s overall
performance. The table below sets out the total level of remuneration compared to the share buy-backs, dividends and
distributions made in the year:
2021
£
2020
£
2019
£
2018
£
2017
£
Total Remuneration 149,500 128,250 132,167 118,084* 109,000
Total Dividends, Share Buy-backs and Distributions 16,772,000 - - - -
* 2018 was a 13 month period
Directors’ Service Contracts
It is the Board’s policy that none of the Directors has a service contract. The terms of their appointment provide that
fi
their appointment. Each Director will stand for annual election as required by the new AIC Code. The terms also provide
that a Director may resign by notice in writing to the Board at any time and may be removed without notice and that
ffi
ffi
the Directors.
Directors’ Remuneration Implementation Report
57
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Your Company’s Performance
The regulations require a line graph to be included in the Directors’ Remuneration Report showing total shareholder
fi
the total return to Ordinary Shareholders compared to the total shareholder return on a notional investment made up of
shares of the same kind and number as those by reference to which the Company’s Benchmark is calculated.
Directors’ Fees
fi
the fees set out below.
In the year under review to 31 December 2021 the Directors’ fees were paid at the rate of £30,000 (2020: £27,000) per
annum with the Chairman of the Board receiving an extra £18,000 (2020: £13,500) per annum and the Chairman of the
Audit & Risk Committee, who is also the Senior Independent Director, an extra £9,000 (2020: £6,750) per annum.
During the year the Directors’ fees were reviewed and the following increases agreed. The Directors’ fees will be
increased as of 1 January 2022 to £32,000 per annum. The Chairman of the Board will receive £51,000 per annum. The
Chairman of the Audit & Risk Committee and Senior Independent Director will receive £41,500 per annum, inclusive of
£8,000 for the Audit & Risk Committee Chairman role and £1,500 for the SID position.
In accordance with the Articles of Association, the aggregate limit of fees that may be paid to the Directors per annum is
£250,000 (2020: £200,000). A resolution to increase the aggregate limit to £250,000 was approved at the 2021 AGM.
These fees exclude any employers’ national insurance contributions, if applicable. Directors are authorised to claim
reasonable expenses from the Company in relation to the performance of their duties. However, the policy is to only
claim ad hoc expenses which would not ordinarily include general travel to and from meetings held in London. No
fififi
in substitution for or in addition to the remuneration stated above.
Allianz Technology Trust
Ordinary Share Price Total
Return
Allianz Technology Trust Net
Asset Value Total Return
Dow Jones World Technology
Index (sterling adjusted, total
return)
Source: AllianzGI / Datastream in sterling. Figures have been rebased to 100 as at 31 December 2011.
1250
650
-50
Dec 11 Dec 12 Dec13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21
%
58
Directors’
Review
Directors’ Remuneration (Audited Information)
The Directors who served in the year received the following emoluments in the form of fees:
Appointed
Variable
Fees
2021
Total
Fees
2021
Variable
Fees
2020
Total
Fees
2020
Robert Jeens 1 August 2013 (and as Chairman: 2 April 2014) - 48,000 - 40,500
Humphrey van der Klugt 1 July 2015 (and as Audit & Risk Committee Chairman: 14 April 2016) - 39,000 - 33,750
Elisabeth Scott 1 February 2015 - 30,000 - 27,000
Neeta Patel 1 September 2019 - 30,000 - 27,000
fi 1 December 2021 - 2,500 - -
- 149,500 - 128,250
No payments of Directors’ fees were made to third parties. The fees are pro-rata.
2021*
£
% change
from
2020 to
2021
2020
£
% change
from
2019 to
2020
2019*
£
Chairman 48,000 18 40,500 4 39,000
Audit Chairman & SID 39,000 15 33,750 4 32,500
Independent Director 30,000 11 27,000 4 26,000
ff
fi
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Directors’ Interests (Audited Information)
The Directors are not required to hold any shares in the Company; however, pursuant to Article 19 of the EU Market
Abuse Regulations the Directors’ Interests in the share capital of the Company are shown in table below.
Ordinary Shares of 2.5p each
Appointed
31 December
2021
31 December
2020
Robert Jeens 1 August 2013 100,000 10,000
Humphrey van der Klugt 1 July 2015 70,000 7,000
Elisabeth Scott 1 February 2015 16,500 1,650
Neeta Patel* 1 September 2019 4,968 187
fi 1 December 2021 - -
* Neeta Patel invests via a monthly investment plan.
As of the AGM on 29 April 2021, there was a 10 to 1 share split.
fi
fi
Ordinary Shares as at the date of this report. There have been no changes to any of the other Directors’ holdings from
the year end to the date of this report.
Humphrey van der Klugt
Remuneration Committee Chairman
8 March 2022
59
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Directors’ Remuneration Policy Report
In accordance with Schedule 8 of The Large and Medium
sized Companies and Groups (Accounts and Reports)
Regulations 2008 as amended, the Company is required
to put to a binding vote of shareholders, at least every
three years, the Company’s Remuneration Policy Report
(the Policy).
The Policy was last proposed to and approved by
shareholders at the AGM in 2021 and will therefore next
be proposed as an Ordinary Resolution at the AGM in
2024.
Directors’ Remuneration
The Company’s remuneration policy provides that
fl
ff
responsibilities borne by the Directors and should be
ffi
recruited.
Directors are remunerated solely in the form of fees
payable monthly or quarterly in arrears, paid to the
fi
no long-term incentive schemes, share option schemes or
fi
related to the Directors’ performance, either individually or
collectively.
The 2021 annual fee rates are Chairman: £48,000, Audit &
Risk Committee Chairman and SID position: £39,000 and
Director: £30,000. The projected 2022 annual fee rates
are Chairman: £51,000, Audit & Risk Committee Chairman
and SID position: £41,500 and Director: £32,000. The
ffi
there are no employees.
The Board consists of non-executive Directors whose
appointments are reviewed by the Board as a whole.
None of the Directors has a service contract with the
Company and any Director may resign by notice in writing
to the Board at any time; there are no set notice periods
and no compensation is payable to a Director on leaving
ffi
When reviewing the level of remuneration consideration
is given to the time, commitment and Committee
responsibilities of each Director. The Board also takes into
account the fees paid to directors of companies within its
peer group.
The Company’s Articles of Association limit the aggregate
fees payable to Directors to £250,000 per annum.
The policy is for the Chairman of the Board and of
each relevant Committee to be paid a fee which is
proportionate to the additional responsibilities involved
in the position. It is intended that the above remuneration
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year and subsequent years.
Humphrey van der Klugt
Remuneration Committee Chairman
8 March 2022
60
Directors’
Review
The Directors are responsible for preparing the Annual
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accordance with applicable law and regulations.
fi
fi
fi
in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting
fi
are required by law to give a true and fair view of the
ff
fi
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
– fi
basis, unless it is inappropriate to presume that the
Company will continue in business.
fifi
with the above requirements.
The Directors are responsible for keeping adequate
accounting records that disclose with reasonable accuracy
fi
fi
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
fi
fi
statements are published on www.allianztechnologytrust.
com, which is a website maintained by the Investment
Manager. The work undertaken by the Auditors does not
involve consideration of the maintenance and integrity
of the website and, accordingly, the Auditors accept no
responsibility for any changes that may have occurred to
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on the website. Visitors to the website need to be aware
that legislation in the United Kingdom governing the
fi
ff
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
fi
fi
responsibility of the Directors but no control procedures
can provide absolute assurance in this area.
fi
that:
(a) the Financial Statements, prepared in accordance
with applicable accounting standards, give a true and
fi
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.
fi
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
Robert Jeens
Chairman
8 March 2022
Statement of Directors’ Responsibilities
61
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Audit & Risk Committee Report
Introduction from the Chairman
I am pleased to present my formal report to Shareholders as Chairman of the Audit & Risk
Committee for the year ended 31 December 2021. During 2021 there were two particular points to
fi
under change of auditors within this report. The second was that the Company received a letter from
fi
Financial Report for year ended 31 December 2020. This is noted in further detail on page 63.
Responsibility
fi
reporting and the appropriateness of the risk management processes and internal controls. The
report details how we carry out this role.
Composition and Meetings
The members of the Committee during the year were myself as Chairman, Elisabeth Scott and
fi
the Board, is not a member of the Committee but will attend meetings by invitation. The Committee
believes that it is in the best interests of the Company for the Chairman of the Board to attend the
Committee meetings. All the members of the Committee are independent Non-Executive Directors,
and their skills and experience are set out on pages 34 and 35. The Board reviews the
ffi
fi
The Committee meets at least twice per year. The attendance of the Committee members is shown
on page 34. The Committee invites the external auditors and personnel from the Managers
fi
As part of the year end process I, as Chairman of the Committee, attended additional meetings with
representatives of the Investment Manager and the external auditor. In addition, during the year,
the Committee also met privately with the external auditor to give them an opportunity to raise any
issues without management present. After each Committee meeting I report to the Board on the
main items discussed at the meeting.
Role and Responsibilities of the Audit & Risk Committee
fi
during the year, and are available on the Company’s website www.allianztechnologytrust.com.
The principal activities carried out during the year were:
– Financial reportingfi
fi
fi
as a whole, the Annual Financial Report is fair, balanced and understandable and provides the
information necessary for Shareholders to assess the Company’s position, performance, business
model and strategy.
– External auditfi
from this work.
– Risk and internal control: we considered the key risks facing the Company and the adequacy and
ff
– External auditorff
as detailed later in this report.
62
Directors’
Review
FRC Review of Annual Financial Report
In September 2021, the Company received a letter from the FRC, which was acknowledged by the Chairman of the
Board, to state that they had conducted a review of the Annual Financial Report for the year ended 31 December 2020.
fi
however, make three suggestions to improve the accounting disclosures which have been incorporated in this year’s
Annual Financial Report on pages 82, 83 and 92.
Internal audit
The Committee continues to believe that the Company does not require an internal audit function as it delegates its
day-to-day operations to third parties from whom it receives internal control reports. Reports from third party auditors
on the internal controls maintained on behalf of the Company by AllianzGI and by other providers of administrative and
custodian services to AllianzGI or directly to the Company were reviewed during the year.
Risk Management
The Board has ultimate responsibility for the management of the risks associated with the Company. The Committee
assists the Board by undertaking a formal assessment of risks and reporting to the Board as appropriate. The Committee
has reviewed its approach to risk management and the reporting of such to the Board and has concluded that the
processes in place are adequate and provide a robust assessment of risk associated with the Company.
The Committee reviews in detail at least twice per year the full Risk Matrix and Controls schedule and makes
appropriate recommendations to the Board which may include adding or removing risks for consideration, monitoring
fi
by the Committee and continues to assess the high-level risks.
The Audit & Risk Committee also reviews the annual Internal Controls documents provided by key third party service
providers and reports as necessary to the Board. Further details of the key risks associated with the Company are
detailed within the Strategic Report.
Significant areas of risk and focus considered by the Audit & Risk Committee during the year
The Annual Report and Financial Statements are the responsibility of the Board and the Statement of Directors’
Responsibilities is on page 61. The Audit & Risk Committee advises the Board on the form and content of the Annual
fi
judgement.
The Committee is responsible for agreeing a suitable Audit Plan for the year-end audit and production of the Annual
fi
from 2020 and included:
Valuation, existence and
ownership of the Company’s
investments
Valuations of actively traded investments are reconciled using stock
exchange prices provided by third party pricing vendors. The Company holds
fi
reconciliation to the custodian’s records.
Recognition, completeness and
occurrence of revenue
Income received is accounted for in line with the Company’s accounting
policy (as set out on page 77) and is reviewed by the Committee.
Compliance with Section 1158 of
the Corporation Tax Act 2010
The Committee regularly considers the controls in place to ensure that the
regulations for ensuring investment trust status are observed at all times.
Maintaining internal controls The Committee receives regular reports on internal controls from AllianzGI
and its delegates and has access to the relevant personnel at AllianzGI who
have responsibility for risk management.
Management and Performance
Fees
The calculation of the management and performance fees payable to
AllianzGI is reviewed by the Committee before being approved by the Board.
Viability Statement The Board is required to make a longer term viability statement in relation to
the continuing operations of the Company. The Committee reviews papers
produced in support of the statement made by the Board which assesses the
fi
63
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Annual Financial Report
The Committee and then the whole Board reviewed the entire Annual Financial Report and noted all the supporting
fl
of the Company and its activities and performance in the year, with a clear link between the relevant sections of the
fi
and understandable and provides the information necessary for shareholders to assess the Company’s position,
performance, business model and strategy.
Auditor Effectiveness
The Committee is responsible for reviewing the terms of appointment of the Auditor and for monitoring the audit process
fffi
Findings Report subsequently issued by them.
As part of the review of the auditor, the members of the Committee and those representatives of the Manager involved
in the audit process reviewed and considered a number of areas including:
– fi
– the audit processes and evidence of partner oversight
– audit communication including details of planning; and
– information on relevant accounting and regulatory developments, and recommendations on corporate reporting.
Auditor Tenure
There are no contractual obligations which restrict the Committee’s choice of auditor. Grant Thornton UK LLP’s (“Grant
fi
merger of Robson Rhodes (who were appointed as the Company’s auditor in 1996) with Grant Thornton in 2007. Paul
fi
The continued appointment of the Auditor is considered by the Audit & Risk Committee each year, taking into account
ff
process.
Auditor Independence
fifi
independent of the Company and have complied with relevant standards on auditing. Grant Thornton did not provide
any non-audit services to the Company in this or the previous accounting year.
The Committee also took into account the competitiveness of their fees and obtained feedback from the Investment
fi
performance of the Auditor.
Change of Auditor
Due to the regulatory requirement for the Company to change auditor by 31 December 2023 and as noted in the 2020
Annual Financial Report, the Board took the decision to undertake an audit tender process during 2021. The Committee
fifi
skills and resources. Each presented and was evaluated on a number of criteria. All members of the Audit Committee
fi
choice of company to be recommended to the Board for approval. The Board subsequently approved the Committee’s
recommendation, and Mazars LLP will be proposed at the forthcoming AGM to be appointed as auditors of the
Company for the 2022 audit.
Committee Evaluation
The activities of the Audit & Risk Committee were considered as part of the Board appraisal process completed in
accordance with standard governance arrangements as summarised on page 52.
ff
membership, experience and skills.
Humphrey van der Klugt
Audit & Risk Committee Chairman
8 March 2022
64
Financial
Statements
Financial
Statements
65
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Independent Auditor’s Report to the Members of
Allianz Technology Trust PLC
Our opinion on the financial statements is unmodified
fi
December 2021, which comprise the Income Statement, the Balance Sheet, the Statement of Changes in Equity and
fififi
framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of
Ireland’ (United Kingdom Generally Accepted Accounting Practice).
fi
– fffi
then ended;
– have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
– have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
fi
statements’ section of our report. We are independent of the Company in accordance with the ethical requirements that are
fi
fi
ffi
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
fi
fi
inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our
report. However, future events or conditions may cause the Company to cease or continue as a going concern.
Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going concern basis of
accounting included assessing the post-year-end performance of the Company, the working capital assessment, and
earnings forecast for a period of at least 12 months from the anticipated date of signing. We evaluated the directors’
assumptions by comparing previous forecasts with actuals and challenged the directors on the underlying data used in
performing their assessment.
In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the Company’s business
ff
challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks
fffi
fi
fi
fi
fi
fi
In relation to the Company’s reporting on how it has applied the UK Corporate Governance Code, we have nothing material
fi
considered it appropriate to adopt the going concern basis of accounting.
The responsibilities of the directors with respect to going concern are described in the ‘Responsibilities of directors for the
fi
66
Financial
Statements
Our approach to the audit
Overview of our audit approach
Overall materiality: £14,720,000, which represents 1% of the Company’s net
assets.
fi
– Existence, valuation, and ownership of investments (same as previous
year); and
– Occurrence and accuracy of investment income (same as previous year).
Our auditor’s report for the year ended 31 December 2020 included no
key audit matters that have not been reported as key audit matters in our
current year’s report.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of
fifi
fi
fi
ff
ff
fi
forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Description
Audit
response
Disclosures Our results
KAM
Key Audit Matter How our scope addressed the matter
Existence, valuation and ownership of investments
fi
fi
of material misstatement due to fraud and error.
The Company’s objective is investing in the equity
of securities of quoted technology companies on a
worldwide basis with the aim of achieving long-term
capital growth. The investment portfolio at the year-
end consisted of investments listed on recognised stock
exchanges and had a carrying value of £1,428,000
(2020: £1,215,000).
fi
a risk that the investment value recorded may be
incorrect. There is also a risk that investments recorded
might not exist or may not be owned by the Company.
Relevant disclosures in the Annual Financial Report
2021
– Financial statements: Note 7, Investments held at fair
fi
– fi
of risk and focus considered by the Audit & Risk
Committee during the year.
In responding to the key audit matter, we performed the
following audit procedures:
– Obtaining an understanding of management’s
process to value and manage investments through
discussions with management and examination of
control reports on third-party administrators;
– Assessing whether the accounting policy for
investments is in accordance with the requirements
of UK GAAP and the Statement of Recommended
Practice (‘SORP’) issued by the Association of
Investment Companies (‘AIC’);
– Agreeing the valuation of all investments to an
independent source of market prices, and agreeing
fi
from the custodian; and
– Checking the existence and ownership of investments
by agreeing the portfolio holdings back to the
fi
Our results
ffi
to substantiate the valuation and existence of the
investments recognised by management.
67
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Key Audit Matter How our scope addressed the matter
Occurrence and accuracy of investment income
fi
fi
material misstatement due to fraud and error.
The Company measures performance on a total return
fi
components of this performance measure in the Income
Statement.
Under ISA (UK) 240 ‘The Auditor’s Responsibilities
Relating to Fraud in an Audit of Financial Statements’,
there is a presumption that there are risks of fraud
in revenue recognition. Investment income is the
Company’s major source of revenue and used in its
performance evaluation. We have determined that
there is a risk that investment income might not have
occurred or is not recognised in the correct accounting
period.
Relevant disclosures in the Annual Financial Report
2021
– Financial statements: Note 1, Income from
investments
– fi
of risk and focus considered by the Audit & Risk
Committee during the year
In responding to the key audit matter, we performed the
following audit procedures:
– Obtaining an understanding of management’s
process in recognising dividend income during
the year through discussions with management
and examination of control reports on third-party
administrators;
– Assessing whether the Company’s accounting policy
for revenue recognition is in accordance with the
requirements of UK GAAP and the AIC SORP;
– Substantively testing a sample of income transactions
to assess if they were recognised in accordance with
the accounting policy; and
– For investments held during the period, obtaining the
ex-dividend dates and rates for dividends declared
during the year from an independent source and
agreeing the expected dividend entitlements to those
recognised in the Income Statement, and agreeing
dividend income recognised by the Company to an
independent source.
Our results
Our audit procedures did not identify any material
misstatements in respect of the occurrence or accuracy
of the investment income recognised during the year.
Our application of materiality
fffi
fi
opinion in the auditor’s report.
Materiality was determined as follows:
Materiality measure Company
Materiality for financial statements as a whole
fi
fi
fl
fi
statements. We use materiality in determining the nature,
timing and extent of our audit work.
Materiality threshold
£14,723,000, which is 1% of the Company’s net assets.
Significant judgements made by auditor in determining
the materiality
In determining materiality, we made the following
fi
– we considered net assets of the Company to be the
most appropriate benchmark due to this being a key
driver of the Company’s total return performance and
forming a part of the net asset valuation.
Materiality for the current year is higher than the level that
we determined for the year ended 31 December 2020 to
fl
including its investment portfolio at the year-end.
68
Financial
Statements
Materiality measure Company
Performance materiality used to drive the extent of our
testing
We set performance materiality at an amount less than
fi
reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements
fi
Performance materiality threshold
fi
Significant judgements made by auditor in determining
the performance materiality
In determining performance materiality, we made the
fi
– We consider a threshold of 75% for performance
materiality to be appropriate due to the Company’s
business being stable and growing in value, no current
or prior going concern issues, and the level of historic
misstatements arising; and
– We also considered the strength of the internal control
environment and the level of interaction between the
investment manager and third-party administrators.
Specific materiality
fi
classes of transactions, account balances or disclosures for
which misstatements of lesser amounts than materiality for
fi
fl
fi
Specific materiality
fi
following areas:
– investment income; and
– related party transactions.
Communication of misstatements to the audit
committee
We determine a threshold for reporting unadjusted
ff
Threshold for communication
£736,000 and misstatements below that threshold that, in
our view, warrant reporting on qualitative grounds.
The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for
potential uncorrected misstatements.
Overall materiality
Net Assets at
31/12/21
£1,472,337,000
PM
£11,042,000,
75%
FSM: Financial statements materiality
PM: Performance materiality
TFPUM: Tolerance for potential
uncorrected misstatements
FSM
£14,723,000,
1%
69
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
An overview of the scope of our audit
We performed a risk-based audit that requires an understanding of the Company’s business and in particular matters
related to:
Understanding the Company and its environment, including controls
– Obtaining an understanding of relevant internal controls at both the Company and third-party providers. This included
obtaining and reading internal controls reports prepared by the third-party service providers on the description,
ff
Work to be performed on financial information of the company (including how it addressed the key audit
matters)
– fi
material balances and disclosures, the extent of which was based on various factors such as our overall assessment of
fi
risks.
Changes in approach from previous period
– Our scope and audit approach has remained consistent with the prior year.
Other information
The directors are responsible for the other information. The other information comprises the information included in
fifi
fi
report, we do not express any form of assurance conclusion thereon.
fi
fi
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
fi
statements or a material misstatement of the other information. If, based on the work we have performed, we conclude
that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Our opinions on other matters prescribed by the Companies Act 2006 are unmodified
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
– fifi
fi
accordance with applicable legal requirements;
– fi
and about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and
Transparency Rules sourcebook made by the Financial Conduct Authority (the FCA Rules), is consistent with the
fi
– information about the company’s corporate governance code and practices and about its administrative,
management and supervisory bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA
Rules.
Matter on which we are required to report under the Companies Act 2006
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,
fi
– the strategic report or the directors’ report; or
– fi
about share capital structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules.
70
Financial
Statements
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
– adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
– fi
accounting records and returns; or
– fi
– we have not received all the information and explanations we require for our audit; or
– a corporate governance statement has not been prepared by the Company.
Corporate governance statement
The Listing Rules require us to review the directors’ statement in relation to going concern, longer-term viability and
that part of the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK
fi
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
fi
during the audit:
– fi
fifi
material uncertainties to the Company’s ability to continue to do so over a period of at least twelve months from the
fi
– the directors’ explanation in the annual report as to how they have assessed the prospects of the Company, over what
period they have done so and why they consider that period to be appropriate, and their statement as to whether
they have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as
they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary
fi
– fi
balanced and understandable and provides the information necessary for shareholders to assess the Company’s
performance, business model and strategy;
– fi
emerging risks facing the Company (including the impact of Brexit and Covid-19) and the disclosures in the annual
report that describe the principal risks, procedures to identify emerging risks and an explanation of how they are being
managed or mitigated (including the impact of Brexit and Covid-19);
– ff
fi
– fi
fi
Responsibilities of directors for the financial statements
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the preparation
fifi
fi
misstatement, whether due to fraud or error.
fi
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
fi
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists.
71
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
flfi
fi
Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line
with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
fi
statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs
(UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
– We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry
fi
fffi
fi
Standards, including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’,
the Companies Act 2006, the Association of Investment Companies (AIC) Statement of Recommended Practice
(SORP) ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’, the AIC Code of Corporate
Governance, sections 1158 to 1164 of the Corporation Tax Act 2010 and the Listing Rules of the Financial Conduct
Authority (the ‘FCA’);
– We enquired of the directors and management to obtain an understanding of how the Company is complying with
those legal and regulatory frameworks and whether there were any instances of non-compliance with laws and
regulations and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our
enquiries through our review of the minutes of the Company’s board and audit committee meetings;
– fi
fi
This included an evaluation of the risk of management override of controls. Audit procedures performed by the
fi
– evaluation of the design and implementation of controls that management has put in place to prevent and detect
fraud;
– fi
preparation and journals with unusual account combinations; and
– fi
– fi
from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not
ffi
detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional
misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and
flfi
– The engagement partner’s assessment of the appropriateness of the collective competence and capabilities of the
engagement team included consideration of the engagement team’s:
– understanding of, and practical experience with, audit engagements of a similar nature and complexity, through
appropriate training and participation;
– knowledge of the industry in which the Company operates; and
– understanding of the legal and regulatory frameworks applicable to the Company.
– No matters of actual or suspected non-compliance with laws and regulations and fraud were communicated to the
engagement team.
Other matters which we are required to address
Following the recommendation of the Audit & Risk Committee, we were appointed by the Audit & Risk Committee on
fifi
periods. This follows the merger of Robson Rhodes with Grant Thornton who were initially appointed as the Company’s
auditor in 1996.
72
Financial
Statements
fi
covering the periods ended 30 November 1996 to 31 December 2021.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Company and we remain
independent of the Company in conducting our audit.
Our audit opinion is consistent with the additional report to the Audit & Risk Committee
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a
body, for our audit work, for this report, or for the opinions we have formed.
Paul Flatley
Senior Statutory Auditor
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
8 March 2022
73
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Income Statement
for the year ended 31 December 2021
Notes
2021
Revenue
£’000s
2021
Capital
£’000s
2021
Total Return
£’000s
2020
Revenue
£’000s
2020
Capital
£’000s
2020
Total Return
£’000s
fi
or loss
7 - 244,546 244,546 - 518,891 518,891
(Losses) gains on foreign currencies (33) (457) (490) (22) 176 154
Income 1 4,968 - 4,968 4,244 - 4,244
Investment management fee and performance fee 2 (8,298) - (8,298) (6,127) (24,688) (30,815)
Administration expenses 3 (1,162) - (1,162) (952) - (952)
(Loss) profit before finance costs and taxation (4,525) 244,089 239,564 (2,857) 494,379 491,522
Finance costs: interest payable and similar expenses - - - - - -
(Loss) profit on ordinary activities before taxation (4,525) 244,089 239,564 (2,857) 494,379 491,522
Taxation 4 (608) - (608) (773) - (773)
(Loss) profit on ordinary activities attributable to
ordinary shareholders
(5,133) 244,089 238,956 (3,630) 494,379 490,749
(Loss) earnings per ordinary share (basic and
diluted)
6 (1.20p) 57.26p 56.06p (0.94p) 127.73p 126.79p
fi
shares of 2.5p each on 4 May 2021.
The total return column of this statement is the income statement of the Company.
The supplementary revenue and capital columns are both prepared under the guidance published by the Association of
Investment Companies.
All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or
discontinued in the year.
fi
comprehensive income. The Company does not have any other Comprehensive Income.
The notes on pages 77 to 90 form an integral part of these Financial Statements.
74
Financial
Statements
Notes
2021
£’000s
2021
£’000s
2020
£’000s
Non Current Assets
fi 7 1,428,136 1,215,541
Current Assets
Other receivables 9 1,091 12,697
Cash and cash equivalents 9 45,968 30,112
47,059 42,809
Current Liabilities
Other payables 9 (2,823) (29,163)
Net current assets 44,236 13,646
Total net assets 1,472,372 1,229,187
Capital and Reserves
Called up share capital 10 10,719 10,549
Share premium account 11 334,191 313,360
Capital redemption reserve 11 1,021 1,021
Capital reserve 11 1,158,544 931,227
Revenue reserve 11 (32,103) (26,970)
Shareholders' funds 12 1,472,372 1,229,187
Net asset value per ordinary share 12 347.9p 291.3p
fi
shares of 2.5p each on 4 May 2021.
fi
issue by the Board of Directors on 8 March 2022 and signed on its behalf by:
Robert Jeens
Chairman
8 March 2022
Balance Sheet
at 31 December 2021
The notes on pages 77 to 90 form an integral part of these Financial Statements.
75
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Statement of Changes in Equity
for the year ended 31 December 2021
Called up
Share
Capital
£’000s
Share
Premium
Account
£’000s
Capital
Redemption
Reserve
£’000s
Capital
Reserve
£’000s
Revenue
Reserve
£’000s
Total
£’000s
Net assets at 1 January 2020 8,818 160,093 1,021 436,848 (23,340) 583,440
Revenue loss - - - - (3,630) (3,630)
Shares issued from block listing facility during the
year
1,731 153,267 - - - 154,998
fi - - - 494,379 - 494,379
Net assets at 31 December 2020 10,549 313,360 1,021 931,227 (26,970) 1,229,187
Net assets at 1 January 2021 10,549 313,360 1,021 931,227 (26,970) 1,229,187
Revenue loss - - - - (5,133) (5,133)
Shares issued from block listing facility during the
year
170 20,831 - - - 21,001
Shares repurchased into treasury during the year - - - (16,772) - (16,772)
fi - - - 244,089 - 244,089
Net assets at 31 December 2021 10,719 334,191 1,021 1,158,544 (32,103) 1,472,372
The notes on pages 77 to 90 form an integral part of these Financial Statements.
76
Financial
Statements
Notes to the Financial Statements
for the year ended 31 December 2021
1 The financial statements – have been prepared on the
basis of the accounting policies set out below.
fi
accordance with The Companies Act 2006, FRS 102
and with the Statement of Recommended Practice
‘Financial Statements of Investment Trust Companies
and Venture Capital Trusts’ (SORP) issued by the
Association of Investment Companies (AIC) in April
2021.
fl
trust company and in accordance with guidance issued
by the AIC, supplementary information which analyses
the Income Statement between items of a revenue
and capital nature has been presented alongside the
Income Statement. In accordance with the Company’s
status as a UK investment company under section
833 and 834 of the Companies Act 2006, net capital
returns may be distributed by way of dividend.
The requirements have been met to qualify for
the exemption to prepare a Cash Flow Statement.
Therefore the Cash Flow Statement has not been
fi
The accounting policies adopted in preparing the
fi
those of previous years.
The Directors believe that it is appropriate to continue
to adopt the going concern basis in preparing the
fi
consist mainly of securities which are readily realisable
fi
considered the risks and consequences of the Covid-19
pandemic on the Company and have concluded that
fi
continue in operational existence for the foreseeable
future. The Company’s business, the principal risks and
uncertainties it faces, together with the factors likely
ff
position are set out in the Strategic Report, starting on
page 36.
2 Revenue – Dividends received on equity shares are
accounted for on an ex-dividend basis. UK dividends
are shown net of tax credits and foreign dividends are
grossed up at the appropriate rate of withholding tax.
Special dividends are recognised on an ex-dividend
basis and treated as a capital or revenue item
depending on the facts and circumstances of each
dividend.
Where the Company has elected to receive its
dividends in the form of additional shares rather
than in cash, the equivalent of the cash dividend is
recognised as revenue. Any excess in the value of the
shares received over the amount of the cash dividend
is recognised in capital.
Deposit interest receivable is accounted for on an
accruals basis.
3 Investment management fees and administrative
expenses – The investment management fee is
calculated on the basis set out in Note 2 to the
fi
revenue as permitted by the SORP. Performance
fees are charged in full to capital, as they are
directly attributable to the capital performance of
the investments. Other administrative expenses are
charged in full to revenue. All expenses are recognised
on an accrual basis.
4 Valuation – As the Company’s business is investing
fifi
total return in the form of increases in fair value,
fifi
or loss in accordance with FRS 102 Section 11: ‘Basic
Financial Instruments’ and Section 12: ‘Other Financial
Instruments’.
fi
are initially recognised at fair value. After initial
recognition, these continue to be measured at fair
value, which for quoted investments is either the
bid price or the last traded price depending on the
convention of the exchange on which the investment
is listed. Gains or losses on investments are recognised
in the capital column of the Income Statement.
fi
on the trade date, being the date which the Company
commits to purchase or sell the assets.
5 Finance costs – In accordance with the FRS 102
Section 11: ‘Basic Financial Instruments’ and Section
fi
ff
rate method and charged to revenue.
6 Taxation – Where expenses are allocated between
capital and revenue, any tax relief obtained in respect
of those expenses is allocated between capital and
revenue on the marginal basis.
Deferred taxation is recognised in respect of all timing
ff
Summary of Accounting Policies
for the year ended 31 December 2021
77
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
the balance sheet date, where transactions or events
that result in an obligation to pay more tax or a right
to pay less tax in the future have occurred. Timing
ffff
fifi
statement.
A deferred tax asset is recognised when it is more likely
than not that the asset will be recoverable. Deferred
tax is measured on a non-discounted basis at the rate
of Corporation tax that is expected to apply when the
ff
7 Foreign currency – In accordance with FRS 102 Section
30: ‘Foreign Currency Translation’, the company is
required to nominate a functional currency, being
the currency in which the company predominately
operates. The functional and reporting currency is
fl
in which the company operates, the predominant
currency in which its shareholders operate and the
currency in which its expenses are generally paid.
Transactions in foreign currencies are translated into
sterling at the rates of exchange ruling on the date of
the transaction. Assets and liabilities are translated
into sterling at the rates of exchange ruling at the
balance sheet date. Gains and losses thereon are
recognised in the revenue or capital column of the
income statement, dependant on the nature of the
gain or loss. Gains and losses on investments arising
from a change in exchange rate are taken to the
capital reserves.
8 Shares repurchased for cancellation and holding in
treasury – For shares repurchased for cancellation,
Share Capital is reduced by the nominal value of the
shares repurchased, and the Capital Redemption
Reserve is correspondingly increased in accordance
with Section 733 of the Companies Act 2006. The
full cost of the repurchase is charged to the Capital
Reserve.
For shares repurchased for holding in treasury, the full
cost is charged to the Capital Reserve.
9 Shares sold (re-issued) from treasury – Proceeds
received from the sale of shares held in treasury are
fi
731 of the Companies Act 2006. Proceeds equivalent
to the original cost, calculated by applying a weighted
average price, are credited to the Capital Reserve
fi
proceeds in excess of the original cost are credited to
the Share Premium account.
10
Shares issued – Share capital is increased by the nominal
value of shares issued. The proceeds in excess of the nominal
value of shares net of expenses are allocated to the share
premium account.
11 Significant judgements, estimates and assumptions –
In the application of the Company’s accounting
policies, which are described above, the Directors
are required to make judgement, estimates and
assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other
sources. These estimates and associated assumptions
are based on historical experience and other factors
that are considered to be relevant. Actual results may
ff
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
ff
period of the revision and future periods if the revision
ff
fi
estimates or assumptions made during the year.
The investment portfolio currently consists of listed
fi
have been made in valuing those securities.
78
Financial
Statements
1. Income
2021
£’000s
2020
£’000s
Income from Investments*
Equity income from UK investments 340 70
Equity income from overseas investments 4,628 4,143
4,968 4,213
Other Income
Deposit interest - 31
- 31
Total income 4,968 4,244
* All equity income is derived from listed investments.
2. Investment Management Fee
2021
Revenue
£’000s
2021
Capital
£’000s
2021
Total
£’000s
2020
Revenue
£’000s
2020
Capital
£’000s
2020
Total
£’000s
Investment management fee 8,298 - 8,298 6,127 - 6,127
Performance Fee - - - - 24,688 24,688
Total 8,298 - 8,298 6,127 24,688 30,815
The Company’s investment manager is Allianz Global Investors GmbH, UK Branch (the Investment Manager). The
Investment Manager provides the Company with investment management, accounting, company secretarial and
administration services pursuant to the management contract. The management contract is terminable on giving six
months’ notice (2020 - six months’), and provides for a base management fee of 0.8% (2020 - 0.8%) per annum payable
quarterly in arrears and calculated on the average value of the market capitalisation of the Company at the last
business day of each month in the relevant quarter. The base fee reduces to 0.6% for any market capitalisation between
fi
(2020 - £55,000) per annum to cover the Investment Manager’s administration costs.
In each year, in accordance with the management contract the Investment Manager is entitled to a performance fee
subject to various performance conditions. For years beginning on or after 1 December 2013, the performance fee
entitlement is equal to 12.5% of the outperformance of the adjusted NAV per share total return as compared to the
benchmark index, the Dow Jones World Technology Index (sterling adjusted, total Return) adjusted for share issuance
and buy backs.. Any underperformance brought forward from previous years is taken into account in the calculation of
the performance fee.
A performance fee is only payable where the NAV per share at the end of the relevant Performance Period is greater
fi
2021 this ‘high water mark’ (HWM) was 297.2p per share. In the event the HWM is not reached in any year, any
outperformance shall instead be carried forward to future periods to be applied as detailed below. Any performance fee
payable is capped at 2.25% of the year end NAV of the Company. For this purpose, the NAV is calculated after deduction
of the associated performance fee payable.
Any outperformance in excess of the cap (or where the HWM has not been met) shall be carried forward to future years
ff
ff
fi
ff
The performance fee earned by the Investment Manager for this Performance Period was £ nil (2020: £24,688,000).
79
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
3. Administration Expenses
2021
£’000s
2020
£’000s
Auditors’ Remuneration
Fee payable to the Company's auditor for the audit of the Company's annual accounts 45 36
VAT on auditor's remuneration 9 7
54 43
Directors' fees
1
150 128
Employer national insurance contributions 20 13
Marketing costs
2
277 228
Depositary fees 68 53
Custodian fees 74 65
Registrars' fees 163 146
Professional & Advisory fees 101 85
Stock exchange fees
3
99 141
Legal fees 100 48
Printing and postage 57 33
FCA fees 30 21
AIC fees 21 22
Other administrative expenses 45 28
VAT recovered (97) (102)
1,162 952
The above expenses include value added tax where applicable.
1
Directors’ fees are set out in the Directors’ Remuneration Implementation Report starting on page 57.
2
The marketing budget takes into account both the marketing by the Investment Manager and also third party service providers.
3
Stock exchange fees include the block listing fees.
80
Financial
Statements
4. Taxation
2021
Revenue
£’000s
2021
Capital
£’000s
2021
Total
£’000s
2020
Revenue
£’000s
2020
Capital
£’000s
2020
Total
£’000s
Overseas taxation 608 - 608 773 - 773
Total tax 608 - 608 773 - 773
Reconciliation of tax charge
fi (4,525) 244,089 239,564 (2,857) 494,379 491,522
Tax on (loss) profit at 19.00% (2020: 19.00%) (860) 46,377 45,517 (543) 93,932 93,389
Reconciling factors
Non taxable income (937) - (937) (781) - (781)
Non taxable capital gains - (46,464) (46,464) - (98,623) (98,623)
Disallowable expenses - 87 87 - 4,691 4,691
Excess of allowable expenses over taxable income 1,797 - 1,797 1,326 - 1,326
ff
608 - 608 773 - 773
Overseas tax expensed - - - (2) - (2)
Total tax 608 - 608 773 - 773
The Company’s taxable income is exceeded by its tax allowable expenses. As at 31st December 2021, the Company had
accumulated surplus expenses of £77.6m (2020: £68.1m).
At 31 December 2021 the Company has not recognised a deferred tax asset of £19.4m (2020: £12.9m) in respect of
accumulated expenses based on a prospective corporation tax rate of 25% (2020: 19%). The increase in the standard
ff
fi
fi
fi
trust for accounting periods commencing on or after 1 December 2012, subject to the Company continuing to meet the
eligibility conditions at Section 1158 Corporation Tax Act 2010 and the ongoing requirements for approved companies in
Chapter 3 of Part 2 Investment Trust (Approved Company) Tax Regulations 2011 (Statutory Instrument 2011/2999).
ff
eligibility conditions.
The Company has not therefore provided tax on any capital gains and losses arising on the disposal of investments.
5. Dividends on Ordinary Shares
fi
81
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
6. (Loss) Earnings per Ordinary Share
2021
Revenue
£’000s
2021
Capital
£’000s
2021
Total Return
£’000s
2020
Revenue
£’000s
2020
Capital
£’000s
2020
Total Return
£’000s
(Loss) earnings after taxation attributable to
ordinary shareholders
(5,133) 244,089 238,956 (3,630) 494,379 490,749
(Loss) earnings per ordinary share (1.20p) 57.26p 56.06p (0.94p) 127.73p 126.79p
2021
No. of Shares
2020
No. of Shares
Weighted average number of Ordinary Shares in issue for the earnings per Ordinary Share calculations above 426,291,035 387,060,700
Basic and diluted earnings per share are the same as the Company has no dilutive instruments.
7. Investments Held at Fair Value through Profit or Loss
Listed assets
2021
£’000s
2020
£’000s
Opening book cost 816,046 474,208
Opening investments holding gains 399,495 93,726
Opening market value 1,215,541 567,934
Additions at cost 1,125,387 1,235,843
Disposals proceeds received (1,157,338) (1,107,127)
Gains on investments 244,546 518,891
Market value of investments held at 31 December 1,428,136 1,215,541
Closing book cost 1,020,260 816,046
Closing investment holding gains 407,876 399,495
Closing market value 1,428,136 1,215,541
Gains on investments 244,546 518,891
The company received £1,157.3m (2020: £1,107.1m) from investments sold in the year. The book cost of these
investments when they were purchased was £921.1m (2020: £894.0m). These investments have been revalued over time
and until they were sold any unrealised gains/losses were included in the fair value of the investments.
Transaction costs and stamp duty on purchases amounted to £152,000 (2020: £279,000) and transaction costs on sales
amounted to £242,000 (2020: £225,000).
8. Investments in Subsidiaries or Other Companies
As at 31 December 2021 the Company held no investments in subsidiaries, nor did it hold more than 10% of the share
capital of any other company or have any holdings in an investee undertaking which comprises 3% or more of any class
of capital.
82
Financial
Statements
9. Other Receivables, Cash and Cash Equivalents, and Other Payables
2021
£’000s
2020
£’000s
Other receivables
Sales for future settlement - 6,339
Accrued income 1,010 1,425
Other receivables 81 4,933
1,091 12,697
Cash and Cash Equivalents
Cash at bank 45,968 30,112
Other Payables
Purchases for future settlement - 1,972
Other payables 2,823 2,503
Performance fee accrual - 24,688
2,823 29,163
The carrying amount of other receivables, cash and cash equivalents and other payables, each approximate their fair value.
83
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
10. Called Up Share Capital
2021
£’000s
2020
£’000s
Allotted and Fully Paid
428,756,680 Ordinary Shares of 2.5p (2020: 421,956,680)* 10,719 10,549
* Inclusive of 5,565,090 (2020: nil) Ordinary shares held in treasury for reissuance into the market or cancellation at a future date. Shares
held in treasury are non-voting and not eligible for receipt of dividend.
During the year, 6,800,000 Ordinary Shares (2020: 69,235,000) were issued from the block listing facility and 5,565,090
Ordinary shares were repurchased to be held in treasury (2020: nil). During the year no Ordinary Shares were reissued
from treasury (2020: nil). Proceeds from share issuances were £21.0m (2020: £155.0m) net of issuance costs of £42,000
(2020: £388,000). Since the year end a further 625,342 shares have been bought back up to and including 4 March 2022.
2021
Number
2021
£’000s
2020
Number
2020
£’000s
Allotted 2.5p ordinary shares
Brought forward 421,956,680 10,549 352,721,680 8,818
Shares repurchased to treasury (5,565,090) (139) - -
Shares issued from block listing facility 6,800,000 170 69,235,000 1,731
Carried forward 423,191,590 10,580 421,956,680 10,549
2021
Number
2021
£’000s
2020
Number
2020
£’000s
Treasury shares:
Brought forward - - - -
Shares repurchased to treasury 5,565,090 139 - -
Carried forward 5,565,090 139 - -
Total ordinary shares in issue and in treasury at the end of the year 428,756,680 10,719 421,956,680 10,549
84
Financial
Statements
11. Reserves
Capital Reserve
Share
Premium
Account
£’000s
Capital
Redemption
Reserve
£’000s
Gains on
Sales of
Investments
£’000s
Investment
Holding
Gains (Losses)
£’000s
Revenue
Reserve
£’000s
Balance at 30 December 2020 313,360 1,021 530,555 400,672 (26,970)
fi - - 444,938 - -
Foreign currency losses - - (457) - -
fi - - - (200,392) -
Transfer on disposal of investments - - (208,773) 208,773 -
Issue of ordinary shares from block listing facility 20,831 - - - -
Shares repurchased to treasury during the year - (16,772) - -
Retained loss for the year - - - - (5,133)
Balance at 31 December 2021 334,191 1,021 749,491 409,053 (32,103)
The Institute of Chartered Accountants in England and Wales in its technical guidance TECH 02/17BL states that
investment holding gains arising out of a change in fair value of assets may be recognised as gains on sales of
investments in the capital reserve provided they can be readily converted into cash.
Securities listed on a stock exchange are generally regarded as being readily convertible into cash and hence investment
holding gains in respect of such securities may be regarded as realised under Company Law.
ff
the total amount received is allocated here. It is not distributable by way of a dividend and cannot be used to repurchase
shares.
The Capital Redemption Reserve represents the nominal value of shares repurchased and cancelled. It is not
distributable by way of a dividend and cannot be used to repurchase shares.
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recognised in the Capital column of the Income Statement. It can be used for share repurchases for holding in treasury. It
is also distributable by way of a dividend.
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12. Net Asset Value (NAV) per Share
The Net Asset Value per share (which equates to the net asset value attributable to each Ordinary Share in issue at the
year end calculated in accordance with the Articles of Association) was as follows:
NAV Per Share Attributable
2021 2020
Ordinary Shares of 2.5p 347.9p 291.3p
NAV Attributable
2021
£’000s
2020
£’000s
Ordinary Shares of 2.5p 1,472,372 1,229,187
The Net Asset Value per share is based on 423,191,590 Ordinary Shares in issue at the year end (2020: 421,956,680
Ordinary Shares).
85
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
13. Financial Risk Management Policies and Procedures
The Company invests in equities and other investments in accordance with its investment policy as stated on the inside
front cover. In pursuing its investment objective, the Company is exposed to certain inherent risks that could result in a
reduction either in the Company’s net return or in its net assets.
fi
currency risk and interest rate risk), liquidity risk and credit risk. The Directors determine the objectives and agree policies
for managing each of these risks, as set out below. The Investment Manager, in close co-operation with the Directors,
implements the Company’s risk management policies. These policies have remained substantially unchanged during the
current and preceding year.
(a) Market Risk
The Investment Manager assesses the exposure to market risk when making each investment decision, and monitors the
risk on the investment portfolio on an ongoing basis. Market risk comprises market price risk, foreign currency risk and
interest rate risk.
(i) Market Price Risk
fi
ff
the Company’s portfolio is shown on page 30.
Market Price Sensitivity
The value of the Company’s listed equities, which were exposed to market price risk as at 31 December 2021 and 31
December 2020 was as follows:
2021
£’000s
2020
£’000s
fi 1,428,136 1,215,541
The following illustrates the sensitivity of the net return and the net assets to an increase or decrease of 20% (2020: 20%)
in the fair values of the Company’s listed investments. This level of change is considered to be reasonably possible based
on observation of market conditions in the year. The sensitivity analysis is based on the impact of a change to the value
of the Company’s listed equity investments at each balance sheet date and the consequent impact on the investment
management fees for the period, with all other variables held constant.
2021
20% Increase
in fair value
£’000s
2021
20% Decrease
in fair value
£’000s
2020
20% Increase
in fair value
£’000s
2020
20% Decrease
in fair value
£’000s
Revenue earnings
Investment management fees (1,428) 1,428 (1,216) 1,243
Capital earnings
Gains (losses) on investments at fair value 285,627 (285,627) 243,108 (243,108)
Change in net return 284,199 (284,199) 241,892 (241,865)
Management of market price risk
The Directors meet regularly to evaluate the risks associated with the investment portfolio. Dedicated fund managers
have the responsibility for monitoring the existing portfolio selection in accordance with the Company’s investment
fi
86
Financial
Statements
The Board can authorise the Investment Manager to use options in order to protect the portfolio against high market
volatility. Where options are employed, the market value of such options can be volatile but the maximum realised loss
on any contract is limited to the original investment cost. No options were taken out in the current year (2020: £ nil).
(ii) Foreign Currency Risk
fifl
in exchange rates.
Management of foreign currency risk
Transactions in foreign currencies are translated into sterling at the rates of exchange ruling on the date of the
transaction. Foreign currency assets and liabilities are translated into sterling at the rates of exchange ruling at the
balance sheet date. It is the Company’s policy not to hedge foreign currency exposure.
fi
fi
statements and its receipt.
The table below summarises in sterling terms the foreign currency risk exposure:
2021
Investments
£’000s
2021
Other
Assets and
Liabilities
£’000s
2021
Total
Currency
Exposure
£’000s
2020
Investments
£’000s
2020
Other
Assets and
Liabilities
£’000s
2020
Total
Currency
Exposure
£’000s
Sterling 11,935 (1,878) 10,057 16,184 (20,571) (4,387)
US Dollar 1,290,369 45,654 1,336,023 1,094,568 27,298 1,121,866
Other currency exposure 125,832 460 126,292 104,789 6,919 111,708
1,428,136 44,236 1,472,372 1,215,541 13,646 1,229,187
Foreign Currency Risk Sensitivity
The following table details the company’s sensitivity to a 20% increase and decrease in sterling against the relevant
foreign currencies and the resultant impact that any such increase or decrease would have on the net return and net
assets. The sensitivity analysis includes all foreign currency denominated items and adjusts their translation at the period
end for a 20% change in foreign currency rates.
2021
20% Decrease
in sterling
against
foreign
currencies
£’000s
2021
20% Increase
in sterling
against
foreign
currencies
£’000s
2020
20% Decrease
in sterling
against
foreign
currencies
£’000s
2020
20% Increase
in sterling
against
foreign
currencies
£’000s
US Dollar 334,006 (222,671) 280,466 (186,978)
Other currency exposure 31,573 (21,049) 27,927 (18,618)
Change in net return and net assets 365,579 (243,720) 308,393 (205,596)
(iii) Interest Rate Risk
fifl
Interest Rate Exposure
fifi
ff
87
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
2021
Fixed
rate
interest
£’000s
2021
Floating
rate
interest
£’000s
2021
Nil
interest
£’000s
2021
Total
£’000s
2020
Fixed
rate
interest
£’000s
2020
Floating
rate
interest
£’000s
2020
Nil
interest
£’000s
2020
Total
£’000s
Financial assets - 45,968 1,428,136 1,474,104 - 30,112 1,215,541 1,245,653
Financial liabilities - - - - - - - -
Net financial assets - 45,968 1,428,136 1,474,104 - 30,112 1,215,541 1,245,653
Short-term payables (1,732) (16,466)
Net assets per balance sheet 1,472,372 1,229,187
As at 31 December 2021, the interest rates received on cash balances or paid on bank overdrafts, was 0.0% and 1.25%
per annum respectively (2020: 0.0% and 1.1% per annum).
Management of interest rate risk
ff
market interest rates. The Company’s policy is to remain substantially fully invested. It does not normally expect to hold
fi
(b) Liquidity risk
Liquidity risk relates to the capacity to meet liabilities as they fall due and is dependent on the liquidity of the underlying
assets.
Maturity of financial liabilities
flfi
2021
Three
months
or less
£’000s
Between
three months
and one year
£’000s
Between
one and
five years
£’000s
More than
five years
£’000s
Total
£’000s
Other Payables - Within one year
Other payables 2,823 - - - 2,823
2,823 - - - 2,823
2020
Three
months
or less
£’000s
Between
three months
and one year
£’000s
Between
one and
five years
£’000s
More than
five years
£’000s
Total
£’000s
Other Payables - Within one year
Other payables 29,163 - - - 29,163
29,163 - - - 29,163
Management of liquidity risk
fi
fl
necessary. As at the 31 December 2021, the Company had no committed borrowing facility (2020: £ nil).
(c) Credit risk
Credit risk is the risk of default by a counterparty in discharging its obligations under transactions that could result in the
ff
88
Financial
Statements
Management of credit risk
Outstanding settlements are subject to credit risk. Credit risk is mitigated by the Company through its decision to
transact with counterparties of high credit quality. The Company only buys and sells investments through brokers which
are considered to be approved counterparties, thus minimising the risk of default during settlement. Normally trades
are settled by payment of cash against delivery. The credit ratings of brokers are reviewed quarterly by the Investment
Manager.
The Company is also exposed to credit risk through the use of banks for its cash position. Bankruptcy or insolvency of
banks may cause the Company’s rights with respect to cash held by banks to be delayed or limited. The Company’s cash
balances are held with HSBC, rated Aa3 by Moody’s rating agency. The Directors believe the counterparties the Company
has chosen to transact with are of high credit quality, therefore the Company has minimal exposure to credit risk.
The table below summarises the maximum credit risk exposure of the Company as at 31 December:
2021
£’000s
2020
£’000s
Other Receivables:
Outstanding settlements - 6,339
Accrued income 1,010 1,425
Other receivables 81 4,933
Cash and cash equivalents 45,968 30,112
47,059 42,809
Fair Values of Financial Assets and Financial Liabilities
fifi
sections 11 and 12.
flfi
the measurements.
fi
fair value measurement of the relevant assets as follows:
Level 1 - The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data)
for the asset or liability, either directly or indirectly.
Level 3 - Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
fifi
2021
£’000s
2020
£’000s
Level 1 1,428,136 1,215,541
Level 2 - -
Level 3 - -
1,428,136 1,215,541
89
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
14. Capital Management Policies and Procedures
The Company’s objective is to provide long-term capital growth through investing principally in the equity securities of
quoted technology companies on a worldwide basis.
The Company’s capital at 31 December 2021 was as per the equity shareholders’ funds in the Balance Sheet on page
75.
The Board, with the assistance of the Investment Manager, monitors and reviews the broad structure of the Company’s
capital on an ongoing basis, including the level of gearing, taking into account the Investment Manager’s view on the
market and the future prospects of the Company’s performance. Capital management also involves reviewing the
ff
assess whether to repurchase shares for cancellation or holding in treasury or to issue shares.
The Company’s objective, policies and processes for managing capital are unchanged from the preceding accounting
period and the Company has complied with them.
The Company will not invest in more than 20% of the net assets using ‘gearing’. The Company’s Articles of Association
limit borrowing to one quarter of its called up share capital and reserves.
15. Transactions with the Investment Manager and Related Parties
The amounts paid to the Investment Manager together with details of the investment management contract are
disclosed in Note 2 on page 79. The existence of an independent board of directors demonstrates that the Company
fi
Disclosures’, the Investment Manager is not considered to be a related party.
The Company’s related parties are its directors. Fees paid to the Company’s board, including employer national
fi
December 2021, and as of 8 March 2022.
16. Post Balance Sheet Events
Since the year end a further 625,342 shares have been bought back. As at 4 March there were 428,756,680 shares in
issue.
90
Financial
Statements
Investor
Information
91
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
UK GAAP performance measures
Net Asset Value is the value of total assets less all liabilities. The Net Asset Value, or NAV, per ordinary share is calculated
by dividing this amount by the total number of ordinary shares in issue. As at 31 December 2021, the NAV was £1,472.4m
(2020: £1,229.2m) and the NAV per share was 347.9p (2020: 291.3p).
Earnings per ordinary sharefi
for the period. For the year ended 31 December 2021 earnings per ordinary share was (1.20p) (2020: (0.94p)),
calculated by taking the loss after tax of £5.2m (2020: loss of £3.6m), divided by the weighted average shares in issue of
426,291,035 (2020: 387,060,700).
Alternative Performance Measures (APMs)
Discount or Premium is the amount by which the stock market price per ordinary share is lower (discount) or higher
(premium) than the Net Asset Value, or NAV, per ordinary share. The discount/premium is normally expressed as a
percentage of the NAV per ordinary share (see pages 3 and 4).
Ongoing chargesff
fi
of the average net asset value during the year and this is calculated in accordance with guidance issued by the
Association of Investment Companies (see page 4).
2021
£’000s
2020
£’000s
Management fee 8,298 6,127
Administration expenses 1,162 952
Less: non-recurring expenses* (116) (119)
Total expenses (A) 9,344 6,960
Average net asset value with debt at market value (B) 1,345,880 864,753
Ongoing charge (A/B) 0.69% 0.80%
* Non-recurring fees are broker and legal fees in relation to a placing programme (2020: Stock exchange block listing fees)
ff
fi
The ongoing charge including the performance fee payable of £ nil (2020: £24.7m) is 0.69% (2020: 3.66%).
Glossary of UK GAAP Performance Measures
and Alternative Performance Measures
92
Investor
Information
Manager and Investment Manager (AIFM)
Allianz Global Investors GmbH, UK Branch,
199 Bishopsgate, London, EC2M 3TY
Head of Investment Trusts - AllianzGI
Stephanie Carbonneil
Email: stephanie.carbonneil@allianzgi.com
Company Secretary and Registered Office
Eleanor Emuss
Email: eleanor.emuss@allianzgi.com
199 Bishopsgate, London, EC2M 3TY
Telephone: 020 3246 7405
Registered Number
3117355
Bankers and Custodian
HSBC Bank plc, 8 Canada Square, London, E14 5HQ
Solicitors
Eversheds LLP, 1 Wood Street, London, EC2V 7WS
Depositary
HSBC Security Services, 8 Canada Square, London, E14
5HQ
Independent Auditors
Grant Thornton UK LLP, 30 Finsbury Square, London,
EC2A 1AG
Registrars
Link Group, 10th Floor, Central Square, 29 Wellington
Street, Leeds, LS1 4DL. Telephone: 0371 664 0300. Lines
are open 9.00am to 5.30pm (London time) Monday to
Friday.
Email: shareholderenquiries@linkgroup.co.uk
Website: www.linkgroup.eu
Stockbrokers
fl
Cannon Bridge House, 25 Dowgate Hill, London,
EC4R 2GA
Identifiers
SEDOL: BNG2M15
ISIN: GB00BNG2M159
BLOOMBERG: ATT
EPIC: ATT
GIIN: YSYR74.99999.SL.826
LEI: 549300JMDPMJU23SSH75
Financial Calendar
Full year results announced and Annual Financial Report
posted to Shareholders in March.
Annual General Meeting held in April.
Half year results announced and Half-Yearly Financial
Report posted to Shareholders in August.
The year end is 31 December.
How to invest
Information is available from Allianz Global Investors
either via Investor Services on 0800 389 4696 or on the
Company’s website: www.allianztechnologytrust.com.
A list of providers can be found on the Company’s website
www.allianztechnologytrust.com/how-to-invest
Market and Portfolio Information
The Company’s Ordinary Shares are listed on the London
Stock Exchange under the code ATT. The market price
range, gross yield and net asset value (NAV) are shown
daily in the Financial Times and The Daily Telegraph
under the headings ‘Investment Trusts’ and ‘Investment
Companies’, respectively. The NAV of the Ordinary Shares
is calculated daily and published on the London Stock
Exchange Regulatory News Service. The geographical
spread of investments and ten largest holdings are
published monthly on the London Stock Exchange
Regulatory News Service. They are also available from the
Manager’s Investor Services Helpline on 0800 389 4696 or
via the Company’s website: www.allianztechnologytrust.
com.
Share Price
The share price quoted in the London Stock Exchange
ffi
Ordinary Share.
Website
Further information about Allianz Technology Trust
PLC, including monthly factsheets, daily share price and
performance, is available on the Company’s website:
www.allianztechnologytrust.com
Association of Investment Companies (AIC)
The Company is a member of the AIC, the trade body of
the investment trust industry, which provides a range of
literature including fact sheets and a monthly statistical
service. Copies of these publications can be obtained from
the AIC, 9th Floor, 24 Chiswell Street, London, EC1Y 4YY,
or at www.theaic.co.uk. AIC Category: Technology and
Media.
Investor Information
93
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Shareholder Enquiries – Link Group
In the event of queries regarding their holdings of shares,
fi
etc., shareholders should contact the registrars on 0371
664 0300. Lines are open 9.00am to 5.30pm (London
time) Monday to Friday. Calls to this number are charged
at local rates, calls from outside the UK are charged at
ff
apply to calls made from mobile telephones and calls
may be recorded and monitored randomly for security
and training purposes.
fi
registrars in writing. Any general enquiries about the
Company should be directed to the Company Secretary,
Allianz Technology Trust PLC, 199 Bishopsgate, London,
EC2M 3TY. Telephone: 020 3246 7405.
Share Dealing Services
Link Group operate an online and telephone dealing
fi
Stamp duty and commission may also be payable on
transactions.
For further information on these services please contact:
www.linksharedeal.com for online dealing or 0371 664
0445 for telephone dealing. Lines are open 8.00am
to 4.30pm Monday to Friday. Calls to this number are
charged at local rates, calls from outside the UK are
ff
charges may apply to calls made from mobile telephones
and calls may be recorded and monitored randomly for
security and training purposes.
Share Portal
ff
called the Share Portal, enabling shareholders to access a
comprehensive range of shareholder related information.
Through the Share Portal, shareholders can; view their
current and historical shareholding details; obtain an
indicative share price and valuation; and amend address
details. Shareholders can access these services at www.
signalshares.com.
Shareholders will need to register for a Share Portal
Account by completing an on-screen registration form. An
email address is required.
CREST Proxy Voting
fi
be voted through the CREST Proxy Voting Service in
accordance with the procedures set out in the CREST
manual.
FATCA
The Company is registered with the Internal Revenue
Service (IRS) as a Foreign Financial Institution for the
purposes of the Foreign Tax Compliance Act (FATCA). The
fi
(GIIN) is YSYR74.99999.SL.826
Non Mainstream Pooled Investments
The Company is an investment trust and therefore its
shares are not subject to the Financial Conduct Authority’s
(FCA) rules relating to the restrictions on the retail
distribution of unregulated collective investment schemes
ff
2014. Accordingly, its shares can be recommended by IFAs
to retail investors in accordance with the FCA’s rules in
relation to nonmainstream investment products.
Nominee Code
In order to allow investors holding their shares
within a nominee company to receive shareholder
communications, the Company undertakes to provide
multiple copies of such documents to the registered
nominee company where prior notice has been given. The
Company encourages nominee companies to provide the
ffi
informed decisions regarding their investments, including
the opportunity to attend Company General Meetings.
Warning to Shareholders
We are aware that some shareholders may have received unsolicited telephone calls or correspondence concerning
ff
to sell them, what often turn out to be, worthless or high risk shares in US or UK investments or encourage them to
dispose of UK shares. They can be extremely persistent and persuasive. Shareholders are therefore advised to be
ff
Please note that it is most unlikely that either the company or the company’s Registrar, Link Group, would make
ffi
circulated to shareholders and never in respect of investment ‘advice’.
If you are in any doubt about the veracity of an unsolicited telephone call, please call the Company Secretary on
+44 (0)800 389 4696 or the Registrar on +44 (0) 371 664 0300.
94
Investor
Information
Alternative Investment Fund Manager
Alternative Investment Fund Manager (Investment Manager)
Allianz Global Investors GmbH (AllianzGI) is an investment company with limited liability incorporated in Germany
and registered in the UK as a branch with establishment number BR009058 and with an establishment address of 199
Bishopsgate, London, EC2M 3TY. It is authorised by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) and is
subject to limited regulation by the Financial Conduct Authority (FCA). Website: www.allianzgi.co.uk
Remuneration Disclosure of the AIFM
fi
Euro).
Number of employees: 1,668
All employees Risk Taker
Board
Member
Other
Risk Taker
Employees
with Control
Function
Employees with
Comparable
Compensation
Fixed remuneration 155,709,850 6,149,684 853,418 1,430,671 220,480 3,645,115
Variable remuneration 103,775,068 10,383,891 746,730 1,949,415 155,462 7,532,283
Total remuneration 259,484,918 16,533,575 1,600,148 3,380,086 375,942 11,177,398
Remuneration Policy of the AIFM
The compensation structure at AllianzGI Europe is set up to avoid any kind of excessive risk-taking. Variable
compensation awards are delivered via deferral programs to ensure they are linked to sustainable performance. In
addition any compensation decisions have to be reviewed and approved by our Functional, Regional and Global
ff
AIFM and Depositary
ff
and supervisory framework for alternative investment fund managers within the EU. Allianz Global Investors GmbH, UK
Branch (AllianzGI) is the Company’s AIFM and HSBC Securities Services (HSBC) has been appointed as its Depositary in
accordance with AIFMD under a depositary agreement between the Company, and HSBC. Depositary fees are charged
in addition to custody fees and are calculated on the basis of net assets.
AIFM Leverage Disclosure
The Company may borrow cash and employ leverage which may include the use of derivatives in accordance with the
stated investment policy and the underlying investment guidelines set by the Board for the Investment Manager from
time to time. It is acknowledged that the use of leverage may expose the Company to greater risk as volatility levels, in
particular within derivative contracts, can be high. The use of leverage is therefore carefully considered prior to exposure.
The AIFMD requires each element of leverage and its exposure to be expressed as a ratio of the Company’s NAV. The
Company does not currently employ gearing and does not currently invest in derivatives.
AIFM Pre-Investment Disclosures
ffi
informed decision. An ‘AIFMD: Information Document’ is available in the Literature Library on the Company’s website
at www.allianztechnologytrust.com which provides information on investment objective, strategy, policies and other
pertinent information which may have an impact on a potential investors decision. There have been no material changes
to the information disclosed within the ‘AIFMD: Information Document’ since publication.
95
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
Notice is hereby given that the Annual General Meeting
of Allianz Technology Trust PLC will be held as a hybrid
meeting at Grocers’ Hall, Princes Street, London, EC2R 8AD
on Tuesday 26 April 2022 at 2.30pm to transact the following
business:
Ordinary Business
fi
resolutions 1 to 9 as ordinary resolutions of the Company:
1. To receive and adopt the audited accounts and the
Report of the Directors for the year ended 31 December
2021.
2. To re-elect Robert Jeens as a Director of the Company.
3. To re-elect Humphrey van der Klugt as a Director of the
Company.
4. To re-elect Elisabeth Scott as a Director of the Company.
5. To re-elect Neeta Patel as a Director of the Company.
fi
7. To appoint Mazars LLP as the Auditor of the Company.
8. To authorise the Directors to determine the remuneration
of the Auditors.
9. To receive and approve the Director’s Remuneration
Implementation Report.
Special Business
fi
of which resolutions 10 and 14 will be proposed as ordinary
resolutions and resolutions 11, 12, 13, 15 and 16 will be
proposed as special resolutions:
Resolution 10 – Allotment of Shares – Directors’ authority to
allot new shares of the Company
THAT, in substitution for any existing authority, but without
prejudice to the exercise of any such authority prior to the
date hereof, the Directors of the Company be and they
are hereby generally and unconditionally authorised in
accordance with Section 551 of the Companies Act 2006
(the Act) to exercise all the powers of the Company to allot
shares in the Company provided that such authority shall
be limited to shares with an aggregate nominal value of up
ff
the number representing 10% of the aggregate nominal
value of issued share capital (excluding treasury shares) at
the date of passing the resolution, such authority to expire
at the conclusion of the next Annual General Meeting of the
Company after the passing of this resolution or on the expiry
of 15 months from the passing of this resolution, whichever
is the earlier, unless previously revoked, varied or extended
by the Company in a general meeting, save that the
Company may at any time prior to the expiry of this authority
ff
might require shares to be allotted after the expiry of such
authority and the Directors shall be entitled to allot shares in
ff
had not expired.
Resolution 11 – Disapplication of pre-emption rights
– Renewal of the authority to allot up to 10% of the ordinary
shares of Company for cash without first offering them to
existing shareholders
THAT, subject to the passing of resolution 10 above, and in
substitution for any existing power but in addition to any
power conferred on them by resolution 12 below and without
prejudice to the exercise of any such power prior to the
date hereof, the Directors of the Company be and they are
hereby generally empowered, pursuant to Section 570 of the
Companies Act 2006 (the Act), to allot equity securities (as
fi
Act) for cash pursuant to the authority given by resolution
number 10 above as if Section 561(1) of the Act did not apply
to any such allotment of equity securities, provided that this
power shall be limited to the allotment of equity securities:
ff
ffff
holders of shares in the Company and other persons
entitled to participate therein in proportion (as nearly as
practicable) to their respective holdings, subject to such
exclusions or other arrangements as the Directors may
consider necessary or expedient to deal with fractional
entitlements or legal or practical problems under the
laws of any territory or the regulations or requirements
of any regulatory authority or any stock exchange in any
territory;
(b) (otherwise than pursuant to sub-paragraph (a) above)
up to an aggregate nominal value of £10,718,917
(
42,875,668
Ordinary Shares) being approximately 10%
of the nominal value of the issued share capital of the
ff
as is equal to 10% of the aggregate nominal issued share
capital (excluding treasury shares) at the date of the
AGM, and provided further that the number of equity
securities to which this power applies shall be reduced
from time to time by the number of treasury shares which
are sold pursuant to any power conferred on the Directors
by resolution 12 below, and such power shall expire at
the conclusion of the next Annual General Meeting of
the Company after the passing of this resolution or on
the expiry of 15 months from the date of the passing of
this resolution, whichever is the earlier, unless previously
revoked, varied or renewed by the Company in general
meeting save that the Company may, before such expiry,
ff
equity securities to be allotted and the Directors of the
Company may allot equity securities in pursuance of any
ff
had not expired
.Resolution 12 – Disapplication of pre-emption rights for
Treasury Shares – Renewal of authority to allot the ordinary
shares of the Company which are held by the Company
as Treasury Shares for cash without first offering them to
existing shareholders.
Notice of Meeting
96
Investor
Information
THAT, in addition to any power conferred on them by
resolution 11 above, and in substitution for any existing
power and without prejudice to the exercise of any such
power prior to the date hereof, the Directors of the Company
be and they are hereby generally empowered, pursuant
to Section 570 of the Companies Act 2006 (the Act), to sell
fi
immediately before the sale, such shares are held by the
fi
Act (treasury shares), for cash as if Section 561(1) of the Act
did not apply to any such sale of treasury shares, provided
that this power shall be limited to the sale of relevant shares
up to an aggregate nominal value of £10,718,917 being
approximately 10% of the nominal value of the aggregate
nominal issued share capital of the Company, as at 8 March
ff
aggregate nominal value of issued share capital (excluding
treasury shares) at the date of passing the resolution and
provided further that the number of relevant shares to
which this power applies shall be reduced from time to time
by the number of shares which are allotted for cash as if
Section 561(1) of the Act did not apply pursuant to the power
conferred on the Directors by resolution 11 above, and such
power shall expire at the conclusion of the next Annual
General Meeting of the Company after the passing of this
resolution or on the expiry of 15 months from the date of
the passing of this resolution, whichever is the earlier, unless
previously revoked, varied or renewed by the Company in
general meeting save that the Company may, before such
ff
require treasury shares to be sold and the Directors of the
Company may sell treasury shares in pursuance of any such
ff
expired.
Resolution 13 – Authority to buy back shares – Proposal that
the Company takes powers to buy back up to 14.99% of the
Company’s issued ordinary shares
THAT, in substitution for any existing authority but without
prejudice to the exercise of any such authority prior to the
date hereof, the Company be and is hereby generally and
unconditionally authorised, pursuant to and in accordance
with Section 701 of the Companies Act 2006 (the Act), to
make market purchases (within the meaning of Section
693(4) of the Act) of fully paid Ordinary shares of 2.5p each in
the capital of the Company, provided that:
(a) the maximum aggregate number of Ordinary Shares
hereby authorised to be purchased is 64,270,626;
(b) the minimum price (excluding expenses) which may be
paid for an Ordinary Share is 2.5p;
c) the maximum price (excluding expenses) which may be
paid for each Ordinary Share shall not be more than the
higher of:
(i) 5% above the average closing price on the London Stock
fi
days immediately preceding the date of purchase: and
(ii) the higher of the last independent trade and the highest
current independent bid on the London Stock Exchange;
and
(d) unless previously varied, revoked or renewed by the
Company in a general meeting, the authority hereby
conferred shall expire at the conclusion of the Company’s
next Annual General Meeting or on the expiry of 15
months from the passing of this resolution, whichever
is the earlier, save that the Company may, prior to such
expiry, enter into a contract to purchase Ordinary Shares
under such authority which will or might be completed
or executed wholly or partly after the expiration of such
authority and may make a purchase of Ordinary Shares
pursuant to any such contract.
Resolution 14 – Allotment of shares – Second authority for
the directors’ to allot new shares of the Company.
THAT, in addition to the authority sought under resolution
11 for any existing authority, but without prejudice to the
exercise of any such authority prior to the date hereof, the
Directors of the Company be and they are hereby generally
and unconditionally authorised in accordance with Section
551 of the Companies Act 2006 (the Act) to exercise all the
powers of the Company to allot shares in the Company
provided that such authority shall be limited to shares with an
aggregate nominal value of up to £10,718,917 (42,875,668
ff
10% of the aggregate nominal value of issued share capital
(excluding treasury shares) at the date of passing the
resolution, such authority to expire at the conclusion of the
next Annual General Meeting of the Company after the
passing of this resolution or on the expiry of 15 months from
the passing of this resolution, whichever is the earlier, unless
previously revoked, varied or extended by the Company in
a general meeting, save that the Company may at any time
ff
into an agreement which would or might require shares to be
allotted after the expiry of such authority and the Directors
ff
or agreement as if such authority had not expired.
Resolution 15 – Disapplication of pre-emption rights –
Second authority for the renewal of the authority to allot
up to 10% of the ordinary shares of the Company for cash
without first offering them to existing shareholders.
THAT, subject to the passing of resolutions 10 and 14 above,
and in substitution for any existing power but in addition to
any power conferred on them by resolution 16 below and
without prejudice to the exercise of any such power prior to
the date hereof, the Directors of the Company be and they
are hereby generally empowered, pursuant to Section 570
of the Companies Act 2006 (the Act), to allot equity securities
fi
authorities given by resolutions 10 and 14 above as if Section
561(1) of the Act did not apply to any such allotment of
equity securities, provided that this power shall be limited to
the allotment of equity securities:
ff
ffff
holders of shares in the Company and other persons
entitled to participate therein in proportion (as nearly as
practicable) to their respective holdings, subject to such
exclusions or other arrangements as the Directors may
consider necessary or expedient to deal with fractional
entitlements or legal or practical problems under the
97
Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
laws of any territory or the regulations or requirements
of any regulatory authority or any stock exchange in any
territory;
(b) (otherwise than pursuant to sub-paragraph (a)
above) up to an aggregate nominal value of
£10,718,917 (42,875,668 Ordinary Shares) being
approximately 10% of the nominal value of the issued
share capital of the Company as at 8 March 2022,
ff
aggregate nominal issued share capital at the date
of the AGM, and provided further that the number
of equity securities to which this power applies shall
be reduced from time to time by the number of
treasury shares which are sold pursuant to any power
conferred on the Directors by resolution 16 below,
and such power shall expire at the conclusion of the
next Annual General Meeting of the Company after
the passing of this resolution or on the expiry of 15
months from the date of the passing of this resolution,
whichever is the earlier, unless previously revoked,
varied or renewed by the Company in a general
meeting save that the Company may, before such
ff
might require equity securities to be allotted and the
Directors of the Company may allot equity securities
ff
power conferred hereby had not expired.
Resolution 16 – Disapplication of pre-emption rights for
Treasury Shares – Second request for renewal of authority
to allot the ordinary shares of the Company which are held
by the Company as Treasury Shares for cash without first
offering them to existing shareholders
THAT, in addition to any power conferred on them by
resolution 15 above, and in substitution for any existing
power and without prejudice to the exercise of any such
power prior to the date hereof, the Directors of the Company
be and they are hereby generally empowered, pursuant
to Section 570 of the Companies Act 2006 (the Act), to sell
fi
immediately before the sale, such shares are held by the
fi
Act (treasury shares), for cash as if Section 561(1) of the Act
did not apply to any such sale of treasury shares, provided
that this power shall be limited to the sale of relevant shares
up to an aggregate nominal value of £10,718,917 being
approximately 10% of the nominal value of the aggregate
nominal issued share capital of the Company, as at 8 March
ff
aggregate nominal value of issued share capital (excluding
treasury shares) at the date of passing the and provided
further that the number of relevant shares to which this
power applies shall be reduced from time to time by the
number of shares which are allotted for cash as if Section
561(1) of the Act did not apply pursuant to the power
conferred on the Directors by resolution 15 above, and such
power shall expire at the conclusion of the next Annual
General Meeting of the Company after the passing of this
resolution or on the expiry of 15 months from the date of
the passing of this resolution, whichever is the earlier, unless
previously revoked, varied or renewed by the Company in a
general meeting save that the Company may, before such
ff
require treasury shares to be sold and the Directors of the
Company may sell treasury shares in pursuance of any such
ff
expired.
By order of the Board
Eleanor Emuss, Company Secretary
199 Bishopsgate, London, EC2M 3TY
8 March 2022
Notes
The following notes explain your general rights as a
shareholder and your right to attend and vote at this
Meeting or to appoint someone else to vote on your behalf.
1. To be entitled to attend and vote at the Meeting (and for
the purpose of the determination by the Company of the
number of votes they may cast), shareholders must be
registered in the Register of Members of the Company
at close of trading on 22 April 2022. Changes to the
Register of Members after the relevant deadline shall be
disregarded in determining the rights of any person to
attend and vote at the Meeting.
2. Shareholders, or their proxies, intending to attend the
Meeting in person are requested, if possible, to arrive
at the Meeting venue at least 20 minutes prior to the
commencement of the Meeting at 2.30pm (UK time) on
26 April 2022 so that their shareholding may be checked
against the Company’s Register of Members and
attendances recorded.
3. Shareholders are entitled to appoint another person as
a proxy to exercise all or part of their rights to attend
and to speak and vote on their behalf at the Meeting. A
shareholder may appoint more than one proxy in relation
to the Meeting provided that each proxy is appointed to
ff
or ordinary shares held by that shareholder. A proxy need
not be a shareholder of the Company. A form of proxy
which may be used to make such appointment and give
proxy instructions accompanies this Notice. If you do not
have a form of proxy and believe that you should have
one, or if you require additional forms, please contact the
Company’s registrar whose details are provided in Note 6
below and on page 93.
4. In the case of joint holders, where more than one of
the joint holders purports to appoint a proxy, only the
appointment submitted by the most senior holder will be
accepted. Seniority is determined by the order in which
the names of the joint holders appear in the Company’s
Register of Members in respect of the joint holding (the
fi
5. A vote withheld is not a vote in law, which means that the
vote will not be counted in the calculation of votes for
or against the resolution. If no voting indication is given,
your proxy will vote or abstain from voting at his or her
discretion. Your proxy will vote (or abstain from voting) as
98
Investor
Information
fi
put before the Meeting.
6. To be valid, any form of proxy or other instrument
appointing a proxy, must be returned by no later than
2pm on 22 April 2022 through any one of the following
methods:
i) by post, courier or by hand (during normal business hours
only) to the Company’s registrar at PXS 1, Link Group,
10th Floor, Central Square, 29 Wellington Street, Leeds,
LS1 4DL;
ii) electronically or through the website of the Company’s
registrar at www.signalshares.com; or
iii) in the case of shares held through CREST, via the CREST
system (see notes below)
7. If you return more than one proxy appointment, either
by paper or electronic communication, the appointment
received last by the Registrar before the latest time
for the receipt of proxies will take precedence. You
are advised to read the terms and conditions of use
carefully. Electronic communication facilities are open
to all shareholders and those who use them will not be
disadvantaged.
fi
or any CREST Proxy Instruction (as described in note 11
below) will not prevent a shareholder from attending the
Meeting and voting in person if he/she wishes to do so.
10. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service
may do so for the Meeting (and any adjournment of
the Meeting) by using the procedures described in the
CREST Manual (available from www.euroclear.com/site/
public/EUI). CREST Personal Members or other CREST
sponsored members, and those CREST members who
have appointed a service provider(s), should refer to their
CREST sponsor or voting service provider(s), who will be
able to take the appropriate action on their behalf.
11. In order for a proxy appointment or instruction made
by means of CREST to be valid, the appropriate CREST
message (a ‘CREST Proxy Instruction’) must be properly
authenticated in accordance with Euroclear UK & Ireland
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required for such instructions, as described in the CREST
Manual. The message must be transmitted so as to be
received by the issuer’s agent (ID RA10) by 2.30pm on
22 April 2022. For this purpose, the time of receipt will be
taken to mean the time (as determined by the timestamp
applied to the message by the CREST application host)
from which the issuer’s agent is able to retrieve the
message by enquiry to CREST in the manner prescribed
by CREST. After this time, any change of instructions
to proxies appointed through CREST should be
communicated to the appointee through other means.
12. CREST members and, where applicable, their CREST
sponsors or voting service providers should note that
Euroclear UK & Ireland Limited does not make available
special procedures in CREST for any particular message.
Normal system timings and limitations will, therefore,
apply in relation to the input of CREST Proxy Instructions.
It is the responsibility of the CREST member concerned
to take (or, if the CREST member is a CREST personal
member, or sponsored member, or has appointed a
voting service provider(s), to procure that his CREST
sponsor or voting service provider(s) take(s)) such
action as shall be necessary to ensure that a message
is transmitted by means of the CREST system by any
particular time. In this connection, CREST members and,
where applicable, their CREST sponsors or voting system
providers are referred, in particular, to those sections of
the CREST Manual concerning practical limitations of the
CREST system and timings. The Company may treat as
invalid a CREST Proxy Instruction in the circumstances set
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Regulations 2001.
13. If you are an institutional investor you may be able to
appoint a proxy electronically via the Proxymity platform.
For further information regarding Proxymity, please go to
www.proxymity.io. Your proxy must be lodged by 2.30pm
on 22 April 2022 in order to be considered valid. Before
you can appoint a proxy via this process you will need
to have agreed to Proxymity’s associated terms and
conditions. It is important that you read these carefully
as you will be bound by them and they will govern the
electronic appointment of your proxy.
14. Any corporation which is a shareholder can appoint one
or more corporate representatives who may exercise
on its behalf all of its powers as a shareholder provided
ordinary issued share capital excluding treasury shares
consists of 422,566,248 ordinary shares, carrying one vote
each. Therefore, the total voting rights in the Company as
at 4 March 2022 are 422,566,248.
16. Under Section 527 of the Companies Act 2006,
shareholders meeting the threshold requirements
set out in that section have the right to require the
Company to publish on a website a statement setting
out any matter relating to: (i) the audit of the Company’s
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and the conduct of the audit) that are to be laid before
the Meeting; or (ii) any circumstances connected with
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statements and reports were laid in accordance with
Section 437 of the Companies Act 2006 (in each case)
that the shareholders propose to raise at the relevant
meeting. The Company may not require the shareholders
requesting any such website publication to pay its
expenses in complying with Sections 527 or 528 of the
Companies Act 2006. Where the Company is required
to place a statement on a website under Section 527 of
the Companies Act 2006, it must forward the statement
to the Company’s auditor not later than the time when
it makes the statement available on the website. The
business which may be dealt with at the Meeting for the
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Company has been required under Section 527 of the
Companies Act 2006 to publish on a website.
17. Any shareholder attending the Meeting has the right to
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Allianz Technology Trust PLC Annual Financial Report for the year ended 31 December 2021
ask questions. The Company must cause to be answered
any such question relating to the business being dealt
with at the Meeting but no such answer need be given if:
(a) to do so would interfere unduly with the preparation
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information; (b) the answer has already been given on a
website in the form of an answer to a question; or (c) it is
undesirable in the interests of the Company or the good
order of the Meeting that the question be answered.
18. The following documents are available for inspection
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of the Company on any business day from the date of
this Notice until the time of the Meeting and may also
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Notice, from 2pm on the day of the Meeting until the
conclusion of the Meeting: copies of the Directors’ letters
of appointment or service contracts.
19. You may not use any electronic address (within the
meaning of Section 333(4) of the Companies Act 2006)
provided in either this Notice or any related documents
(including the form of proxy) to communicate with the
Company for any purposes other than those expressly
stated.
A copy of this Notice, and other information required by
Section 311A of the Companies Act 2006, can be found on
the Company’s website at www.allianztechnologytrust.com
Instructions for Electronic Attendance at the Annual
General Meeting
For the AGM, shareholders can attend and participate in the
meeting electronically, should they wish to do so.
This can be done by accessing the Lumi website at https://
web.lumiagm.com/148-124-926
Accessing the Website
The Website can also be accessed online using most well-
known internet browsers such as Chrome, Firefox, Edge and
Safari on a PC, laptop or internet-enabled device such as
a tablet or smartphone. If you wish to access the Annual
General Meeting using this method, please go to https://web.
lumiagm.com/148-124-926 on the day.
Logging in
On accessing the Website, https://web.lumiagm.com/148-
124-926. You will then be prompted to enter a log in ID and
PIN. You will then be prompted to enter your unique 11- digit
Investor Code (IVC) including any leading zeros and PIN,
which is the last 4 digits of your IVC. These can be found on
your Form of Proxy or email if you are registered for email
communications. Access to the meeting via the Website will
be available from 2pm on 26 April 2022; however, please
note that your ability to vote will not be enabled until the
Chairman formally opens the meeting at 2.30pm.
Webcast
The AGM will also be broadcast in audio format with
presentation slides. Once logged in, and at the
commencement of the AGM, you will be able to listen to the
proceedings of the AGM on your device, as well as being
able to view slides which will include the resolutions to be
proposed at the AGM.
Voting
Once the Chairman has formally opened the AGM, he will
explain the voting procedure. Voting will be enabled on
all resolutions at the start of the formal meeting on the
Chairman’s instructions. This means that shareholders may,
at any time while the poll is open, vote electronically on
any or all of the resolutions in the Notice of Annual General
Meeting. Resolutions will not be proposed separately.
Once the resolutions have been proposed, the list of
resolutions will appear along with the voting options
available. Select the option that corresponds with how you
wish to vote, “For”, “Against” or “Withheld”. Once you have
selected your choice, the option will change colour and a
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been cast and received. There is no submit button. If you
make a mistake or wish to change your vote, simply select
the correct choice. If you wish to cancel your vote, select the
“Cancel” button and no vote will be recorded for you. You will
be able to do this at any time while the poll remains open
and before the Chairman announces its closure at the end of
the AGM.
Questions
Shareholders attending electronically may ask questions via
the Lumi website by typing and submitting their question in
writing. Select the messaging icon from within the navigation
bar and type your question at the top of the screen. Once
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then submit your question. The chairman of the AGM will
select the questions to put before the AGM and may combine
questions where there is a common theme. The Chairman will
read the question aloud before providing an answer.
Internet connection
The Company will be unable to provide any assistance to
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internet connection throughout the meeting.
Duly appointed proxies and corporate representatives
If you wish to appoint a proxy other than the Chair of the
meeting and for them to attend the hybrid meeting on your
behalf, please submit your proxy appointment in the usual
way before contacting Link Group on +44 (0) 371 277 1020
in order to obtain their IVC and PIN. It is suggested that you
do this as soon as possible and at least 48 hours (excluding
non-business days) before the meeting.
If your shares are held within a nominee and you wish to
attend the meeting virtually, you will need to contact your
nominee as soon as possible. Your nominee will need to
present a corporate letter of representation to Link Group,
our registrar, as soon as possible and at least 72 hours
(excluding non-business days) before the meeting, in order
that they can obtain for you your unique IVC and PIN to
enable you to attend the virtual meeting.
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Allianz Technology Trust PLC
199 Bishopsgate
London
EC2M 3TY
+44 (0)203 246 7000
www.allianztechnologytrust.com