Annual Financial Report, 31 December 2023
Allianz Technology
Trust PLC
Image generated with AI
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
portfolio of companies that use technology 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 – for example, the car makers or ecommerce groups using
technology to gain a competitive advantage. In short, technology
stocks may sit across multiple sectors, including healthcare,
As technology becomes ever more pervasive, the lines between
blurred. Even where companies aren’t selling technology,
technology may be intrinsic to their success as a company.
More companies are becoming technology companies as
disruptive innovation brings change and displaces incumbent
market leaders. The challenge is to understand not only current
Asset allocation
regional weightings and aims to invest in the most attractive
technology shares on a global basis. The lead portfolio manager
aims to identify the leading companies in emerging technology
growth sub-sectors. The majority of the portfolio will comprise mid
and large cap technology shares.
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 2023 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
than benchmark allocation to high growth, mid cap companies
which are considered to be the emerging leaders in the technology
sector. The Investment Manager believes that the successful
long term.
Key Information
Annual Financial Report
Contents
Last year the Board revised
the printed version of the
Annual Financial Report
(‘AFR’) and moved much of
the additional information
on the technology sector
to an online format.
Readership of hard copy AFRs has declined
and the very large majority of shareholders
and other interested parties only access
AFRs online.
We believe in making as much information
as possible available in an electronic format
– with the web-based Annual Financial
Report containing enhanced content.
Please do have a look at this year’s
deeper dive into the technology sector
at tinyurl.com/attafr23 or by using your
tablet or smartphone camera to scan the
QR code:
Overview
2 Key Information
2 Financial Highlights
3 Chairman’s Statement
6 Financial Summary
Investment Manager’s Review
7 Portfolio Managers’ Report
10 Investment Portfolio
Strategic Report
12 Strategic Report
17 Section 172 Report
20 Environmental, Social, Governance (‘ESG’)
and Stewardship – the Company’s Report
22 Voya Investment Management’s
Environmental, Social and Governance
(‘ESG’) Policy
Director’s Review
24 Directors
26 Directors’ Report
34 Corporate Governance Statement
38 Report of the Management Engagement
Committee
39 Report of the Nomination Committee
40 Report of the Remuneration Committee
41 Directors’ Remuneration Implementation
Report
44 Directors’ Remuneration Policy Report
45 Statement of Directors’ Responsibilities
46 Audit & Risk Committee Report
Financial Statements
49 Independent Auditor’s Report to the
Members of Allianz Technology Trust PLC
54 Income Statement
55 Balance Sheet
56 Statement of Changes in Equity
57 Notes to the Financial Statements
Investor Information
69 Glossary of UK GAAP Performance Measures
and Alternative Performance Measures
70 Glossary of Terms
71 Investor Information
75 Notice of Meeting
1
OVERVIEW
Financial Highlights
As at 31 December for each respective year
Net asset value (‘NAV’) per
Ordinary share
+46.4%
2023 338.2p
2022 231.0p
NAV per Ordinary share (p) Shareholders’ funds (£m)
Key for charts:
Allianz Technology Trust – Net Asset Value – undiluted.
Dow Jones World Technology Index (sterling adjusted, total return).
Peer group of Morningstar Global Technology Sector Equity.
Comparative figures for 2018, 2019 and 2020 have been restated following 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 2023. Rebased to 100 at 1 December 2013.
Source: AllianzGI/Datastream.
The Alternative Performance Measures (‘APMs’) can be found on page 69.
2023 2023
338.2
2019 20192020 20202022 20222021 2021
231.0
347.9
165.4
291.3
1,318.8
938.9
1,472.4
583.4
1,229.2
Performance against sector
average
1
750
50
Benchmark
+48.2%
2023 2,715.0
2022 1,832.2
Performance against benchmark
1
Premium (discount) of Ordinary
share price to NAV per share (%)
Ordinary share price
+44.5%
2023 303.5p
2022 210.0p
Ordinary share price (p)
20232019 2020 20222021
303.5
210.0
352.5
164.7
297.0
2023
(10.3)
20222019 2021
1.3
(0.4)
(9.1)
2020
2.0
750
50
NAV versus benchmark (%)
20232019 2020 20222021
28.8
19.4
-33.6
39.0
28.2
-26.4
76.1
46.4
41.7
48.2
2
ALLIANZ TECHNOLOGY TRUST PLC
Chairman’s Statement
Welcome
Welcome to this report on Allianz
year ending 31 December 2023. 2023
was certainly another tumultuous
year in terms of the geopolitical and
economic backdrop. I am pleased to
report that the Company once again
won the Investment Week Investment
Company of the Year Award in the
‘Specialist’ category, having previously
done so from 2017 to 2021 inclusive.
The award is based around our
performance over 3 years, as well as
other qualitative factors.
Performance
Technology stocks performed strongly
in 2023 buoyed by a combination of
optimism over the sector’s growth
potential together with an increasing
this backdrop, it is a pleasure to also
be able to report a strong absolute
Net Asset Value (‘NAV’) Total Return
of 46.4% for Allianz Technology Trust
PLC and a share price return of 44.5%.
The NAV return was slightly behind the
48.2% return of our benchmark, the
Dow Jones World Technology Index
(sterling adjusted, total return). This
our relatively smaller exposure to the
very largest group of companies, the
so-called ‘mega-caps’. Our portfolio
manager focuses on the mid- and
belief that companies at an earlier
stage of their development provide
better opportunities for long-term
earnings growth.
No dividend is proposed in the year
ended 31 December 2023 (2022: nil).
Given the nature of the Company’s
investments and its stated objective to
achieve long-term capital growth, the
Board continues to consider it unlikely
that any dividend will be declared in the
near future.
Backdrop
The direction of global stock markets
continued to be determined primarily
balancing the taming of rising prices
with the desire to avoid recession and it
wasn’t until toward the end of the year
peaked became apparent. Those signs
were received well though and markets
demonstrated renewed optimism in
anticipation of easing of interest rates.
There was little economic growth to
speak about around the world. Indeed,
Covid restrictions achieved a lacklustre
recovery. Geopolitics continued to
astound and confound humanity.
anniversary of the Russian invasion and
subsequent war and in October the
Middle East was thrust into the limelight
when Hamas terrorists launched a
sudden attack in Israel with shocking
civilian loss of life. Israel responded
throughout Gaza with a further terrible
loss of life. As I write, in the Red Sea
Houthi rebels are attacking commercial
shipping. The disruption from this latest
episode will have an impact on costs
of shipped goods and is therefore a
on course to meet central bank targets.
US/China and China/Taiwan tensions
also remained present and of concern
in 2023.
Despite the backdrop noted above,
technology continued to excite and
inspire. An obvious connected theme to
the geopolitical storm is cybersecurity.
As nation states, terrorist organisations
and criminals have stepped up digital
attacks, cybersecurity has become more
and more important to maintaining
the smooth functioning of companies,
infrastructure and society. Of course,
story of the year, raising appetites for
technology once more, sending many
technology stocks higher, notably
Nvidia, a so-called ‘picks-and-shovels’
company as it provides the chips
necessary to power cutting-edge
AI applications.
Our portfolio manager is occasionally
questioned as to whether the portfolio
may be too US centric. The US weighting
is certainly high at around 87% as at
the end of December. The reality is
that the US listed companies continue
capital, together with a supportive listed
market structure, although it should be
kept in mind that many of our portfolio
companies generate revenues all
around the globe and just happen to be
listed in the US.
Whilst China has been a source of tech
growth in past years the path has not
been smooth. Our portfolio manager
3
OVERVIEW
AI is a rapidly moving frontier in many ways and
will necessarily bring risk as well as opportunity as
it develops and is implemented.
was an early investor in the China tech
story, however he also exited relatively
early and for some years now has
preferred not to invest there, being
primarily concerned about the possibility
of state interference in the activity of
listed companies.
Discount
The Company traded at an average
discount of 12.1% over the period (low
of 8.7% and high of 15.7%) despite the
positive absolute performance noted.
uncertainty apparent for much of the
year together with sentiment towards
investment trusts in general. That latter
point is evidenced by the average
discount for investment trusts reaching
crisis in 2008.
Our policy in respect of buying back
shares remains unchanged. Currently
we would consider buying back
shares during periods where the
discount is consistently over 7% and
it is felt appropriate to do so given
the prevailing market backdrop. In
aggregate 16,530,708 shares at an
average discount of 12.1% and total
cost of £40.2m. Since the end of the
have repurchased a further 3,271,401
shares at an average discount of 11.9%
and total cost of £10.6m. All shares
repurchased have been held in treasury
rather than cancelled as this makes
them readily available to be reissued if
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 will also once
again seek authority to buy back up to
14.99% of the shares in issue. The Board
recommends that shareholders vote in
favour of these resolutions.
Any new shares will only be issued at
a premium to NAV and if the Board
best interests of existing shareholders.
Similarly, any buy back of shares will
only take place where we believe it to be
AI (and the debates stemming
from it)
As previously commented, excitement
around AI dominated the tech sector
in 2023. Whilst AI itself is not new,
advances in generative AI in 2023
pushed it further into our consciousness
of this was to generate excitement –
the same excitement that aided the
performance of technology indices
generally and a few companies
and trepidation.
AI is a rapidly moving frontier in many
ways and will necessarily bring risk
as well as opportunity as it develops
and is implemented. On the one hand
society, removing menial tasks from
many roles and advancing the pace of
new medical developments to name
humanity, for example via its impact on
low-skill labour markets, particularly for
certain sectors where AI, robotics and
automation can readily replace human
labour. It is also potentially subject to
misuse and utilisation for negative and
even criminal activity.
The Board is cognisant of such potential
issues. We are keeping a watching brief
and remain focused on the potential
risk to the Company’s portfolio and
operations. For example, we dedicated
part of our 2023 strategy meeting to
a discussion around AI-related risks
and opportunities. Amongst other
aspects, we discussed types of risk, how
governments and authorities might
respond, the trajectory of AI algorithm
development and how we should best
identify risks and opportunities as a
Company going forward.
ESG
As you will be aware, the portfolio
manager considers ESG as part of
the stock analysis and investment
management process. The Board
remains cognisant of investors’ concerns
and desire to understand better the
broader impact of the investment
choices that they make. The Board
engages closely with Voya as the
Investment Manager and AllianzGI
UK as the AIFM on ESG policies and
processes and further information can
be found on pages 20 to 23 of this
Annual Report.
Portfolio management
I am pleased to report that Erik Swords
has been appointed as Portfolio
Manager alongside Mike Seidenberg,
who will remain Lead Portfolio Manager,
managing director and Head of Global
Technology at Voya and has 23 years
of investment industry expertise. He
already works closely with Mike in the
The costs of running your
Company
Your Board has maintained its close
attention to the costs of running the
Company. The Company’s Ongoing
Charges Figure (‘OCF’), which is
calculated by dividing ongoing
operating expenses by the average
4
ALLIANZ TECHNOLOGY TRUST PLC
NAV, has remained the same as 2022
at 0.70%.
The OCF excludes any performance
fee due to the Investment Manager.
No performance fee has been earned
in 2023. It should be noted that the
underperformance recorded over the
past three years will have to be made
back, and the NAV will need to exceed
set a new high watermark) before any
future performance fee can be accrued.
Board matters
Although I reported to shareholders as
Chairman in the 2023 interim report, this
role. I would therefore like to reiterate my
thanks to my predecessor, Robert Jeens,
for his leadership of the Company over
his tenure and for his help and support
as I took on the role of Chairman. I hope
that this next period in the Company’s
history can prove as positive in respect of
growth as the past one.
At the conclusion of the 2024 AGM,
Humphrey Van der Klugt will step
down from the Board, having served
since 2015. We thank Humphrey for
Company’s development over the past
growth over that time.
Elisabeth Scott has served on the Board
for nine years as at 1 February 2024 and
to allow for orderly succession planning
she will retire at the AGM in 2025.
from 29 November 2023 Neeta Patel
was appointed as Chairman of the
Management Engagement Committee
replacing me. Neeta will also become
Senior Independent Director when
Humphrey steps down. Katya Thomson
will be appointed as Chairman of
the Remuneration Committee at the
conclusion of the 2024 AGM.
Although just outside of the reporting
period, as previously announced,
Simon (Sam) Davis was appointed a
non-executive Director on 1 January
2024 and has also joined the Audit
and Risk, Management Engagement,
Remuneration and Nomination
Committees. Sam is a non-executive
PLC. Sam brings a wealth of investment
experience across global markets, and
we are therefore delighted that he is
joining the Board and we look forward
to working with him.
Annual General Meeting (‘AGM’)
arrangements
This year’s AGM will be held on 24
April 2024 at 2.30pm. The full Notice of
Meeting can be found on page 75.
Full details of the special business to be
considered at the AGM can be found on
pages 31 to 33
As with 2023, the AGM will be a hybrid
meeting, meaning shareholders can
either attend physically or online. We
will not be providing online voting
for the 2024 meeting. This is due to
the relatively high cost to enable the
service not having been matched by
shareholder take up of the service over
the past two years. Should there be
reasonable demand emerging from
shareholders in the future for online
voting then we will look at a possible
reintroduction. For this reason, we
strongly encourage all shareholders to
submit their votes using the proxy voting
process by the deadline of 22 April 2024
as detailed in the Notice of Meeting on
page 75. Those shareholders attending
virtually will be able to view the AGM
and submit questions electronically.
The Board encourages shareholders
to attend the AGM if possible. A
presentation by the portfolio manager
will be made at the start of the meeting.
For those unable to attend either
physically or virtually, a recording of the
AGM will be posted to the Company’s
website as soon as practicable after
the event.
The Board looks forward to welcoming
shareholders to this year’s event.
Outlook
predictions for the year ahead in such
an uncertain world. However, most
indicators are suggesting a pivot in
interest rates could well be on the
cards which would certainly be positive
for growth stocks, including many
technology stocks. Even if this does not
provide a tailwind, it should at least
remove a headwind as the discount
companies reduces. With valuations of
many technology companies having
come back to more reasonable levels
since the end of 2020, this could allow
some further recovery in the sector.
Geopolitics remain a source of
uncertainty. Whilst the fortunes of
individual companies are often insulated
from the direct impacts of world events,
heightened uncertainty will impact on
depending on their location, but this
is something our portfolio manager
monitors closely as part of the portfolio
management process. It will certainly
be an interesting year in terms of the
political arena, with elections in the US
and almost certainly the UK.
We are not out of the woods in terms
of fears around falling into recession,
however the hope is that central banks
have done their job well enough and
we will instead see a ‘soft-landing’ –
What is in no doubt is that technology
will continue to dominate our lives and
re-shape the future. Such a ‘new frontier’
remains an extremely exciting place to
invest, though of course also brings risks
for investors. On your behalf, the Board
in conjunction with the Investment
Manager will remain focussed on
providing a portfolio that we believe will
capture the exciting growth available
from investing in technology.
Chairman
12 March 2024
5
OVERVIEW
Financial Summary
As at
31 December
2023
As at
31 December
2022 % change
Net Asset Value per Ordinary Share 338.2p 231.0p +46.4
Ordinary Share Price 303.5p 210.0p +44.5
Discount of Ordinary Share Price to Net Asset Value 10.3% 9.1%
Dow Jones World Technology Index (sterling adjusted, total return) 2,715.0 1,832.2 +48.2
Shareholders' Funds £1,318.8m £938.9m +40.5
For the
year ended
31 December
2023
For the
year ended
31 December
2022
Net Revenue Return per Ordinary Share (0.88p) (0.45p)
Ongoing charges
1
0.70% 0.70%
Five year performance summary
2
As at 31 December 2023 2022 2021 2020 2019
Shareholders' Funds £1,318.8m £938.9m £1,472.4m £1,229.2m £583.4m
Net Asset Value per Ordinary Share 338.2p 231.0p 347.9p 291.3p 165.4p
Ordinary Share Price 303.5p 210.0p 352.5p 297.0p 164.7p
Dow Jones World Technology Index (sterling adjusted, total return) 2,715.0 1,832.2 2,489.3 1,941.1 1,369.9
(Discount) premium of Ordinary Share Price to Net Asset Value (10.3%) (9.1%) 1.3% 2.0% (0.4%)
6
ALLIANZ TECHNOLOGY TRUST PLC
Portfolio Managers’ Report
Mike Seidenberg
2023 started on a cautious note.
was not yet beaten. The impact of rising
interest rates was beginning to be felt
in the real economy, and there were
concerns about how high rates may
need to rise. A winter energy crisis had
been averted, but a ‘hard landing’ still
appeared a plausible scenario for the
world economy.
There were glimmers of hope. Some of
the supply chain bottlenecks that had
were starting to unwind. Freight prices
had started to drop and the pandemic-
related backlogs started to ease. There
was also the prospect of a stronger
performance from China as the country
relaxed its strict quarantine restrictions.
However, the fragility of the economic
environment was exposed by the
collapse of Silicon Valley Bank in
March. Its weakness was attributed
to losses on its bond portfolio. It had
regulator stepped in swiftly to protect
deposit holders. The crisis threatened to
destabilise the world’s banking system,
with Europe’s Credit Suisse also proving
vulnerable. A forced merger with UBS
appeared to put an end to the crisis, but
it left investors wary of other bear-traps
In the meantime, attention continued
and when the Federal Reserve’s rate
rising cycle might draw to a close.
the year, albeit at a slower pace. The
problem for policymakers was that while
proved stickier.
Ultimately, however, the US Federal
Reserve paused its tightening cycle in
July, even though it continued to talk
chair Jerome Powell insisted they
battle had been won. At his Jackson
Hole speech in August, he said: “We
are prepared to raise rates further if
appropriate, and intend to hold policy at
down toward our objective.”
Towards the end of the year, speculation
mounted that US interest rates may soon
drop, and by December, the US Federal
Reserve had pivoted to forecasting
0.75% points of interest rate cuts in
2024. Fears of a US recession appeared
to be overblown and hopes grew of a
Goldilocks outcome for the US economy
(with growth neither too hot nor too
cold). US GDP growth continued to be
strong, rising 5.2% in the third quarter
fuelled by a strong consumer.
Elsewhere, growth was mixed. Economic
activity in Europe remained anaemic at
best. However, the European Central
Bank and Bank of England continued
was far from over. Their hawkishness
versus the US Federal Reserve saw
the euro and British pound strengthen
against the US dollar. The Japanese yen
weakened against all three currencies,
in spite of a revival of economic growth
central bank continued its loose
monetary policy. China’s economic
rebound from pandemic restrictions
disappointed, with the health of its
property sector a major concern.
the summer, after oil prices rallied in
response to oil-producing countries
agreeing to cut output. Nevertheless,
Brent crude closed the year slightly
lower at just under US$80 a barrel.
Overall oil prices fell around 10% over
pressures easing, with interest rate
cuts on the horizon and with economic
growth holding up. It proved a far better
outcome than many had anticipated at
the start of the year.
Stock markets
Global stock markets made progress
in 2023, with the MSCI World Index
up 17.2% over the period. However, it
was a rocky ride and for much of the
year, market leadership was held by a
Seven’ - Amazon, Alphabet, Apple, Meta
Platforms, Microsoft, NVIDIA and Tesla
the potential for AI and its applications,
following the launch of generative AI
programme Chat GPT.
These stocks drove global indices higher,
but many areas did not participate
in the rally. While companies in the
information technology, communication
7
INVESTMENT MANAGER’S REVIEW
Investment Manager’s Review
ALLIANZ TECHNOLOGY TRUST PLC
services, consumer discretionary and
industrials sectors turned in a creditable
performance, defensive stocks in the
consumer staples, utilities and health
care sectors barely rose, while energy
stocks were held back by weakening oil
and gas prices. With economic growth
uncertain, investors retreated to those
companies with reliable earnings, even if
they had to pay a little more for them.
Stock market performance was still
highly dependent on interest rate
expectations. There were two notable
prompted by March’s banking crisis, but
this was swiftly resolved after regulatory
intervention; the second came in
October after higher oil prices prompted
that rates would need to stay higher
for longer.
This narrow market leadership widened
investors started to anticipate rate
cuts in the year ahead. November
broad-based rally. November was the
strongest month for markets in three
years and supportive statements from
the US Federal Reserve ensured the
rally continued to the end of the year.
Overall, the MSCI World Index recorded
its strongest year since 2019.
Key themes
Just as they did in 2022, 2023 was a year
when investors watched the US Federal
Reserve. Once again, the fortunes of
individual companies appeared to
matter less than the latest comments
from central banks as investors tried to
judge whether central banks would be
the economy.
Ultimately, however, markets are
now reassured that the US Federal
Reserve has managed to engineer a
‘soft landing’. The much-anticipated
US recession remains a possibility
in the year ahead, but most market
participants now believe it is likely to be
short-lived and shallow if it materialises
at all. Rates cuts could come as early
as March in the US and would be
welcomed by markets.
Geopolitics
The fragile geopolitical landscape
continued in 2023. The war in Ukraine
was ongoing, with little progress on
either side. World powers continued to
pick sides, which saw some redrawing
of trading relationships. Those countries
that could remain neutral, such as
Vietnam or parts of Latin America, saw
There was new fragility in the Middle
East after the unprecedented terrorist
attacks by Hamas on Israel on 7
October, and Israel’s subsequent military
response which has seen ongoing
There was some easing of US/
China relations, with Presidents Xi
and Biden meeting in November.
Nevertheless, a return to the unfettered
trading relationship of recent history
appeared improbable.
The launch of Chat GPT and its rapid
adoption showed the potential for
its risks. It holds the potential to drive
productivity gains for companies at a
time when productivity has stagnated
in many Western economies. In a report
in April, Goldman Sachs said generative
AI could raise global GDP by 7% -
equivalent to almost $7 trillion.
Forward-thinking corporations are
already looking at how AI could
improve their business and 2024 may
be when these plans start to come
to fruition. Companies are investing
Google and Amazon have done a
number of blockbuster deals with
AI start-ups in 2023. This accounted
for two-thirds of the US$27bn raised
according to data from private market
researchers PitchBook.
Performance
The Company’s net assets rose 46.4%
for the year to 31 December 2023. This
was marginally behind its benchmark,
the Dow Jones World Technology
Index (sterling adjusted, total return),
which rose 48.2%. The strength of
to beat. We continued to hold below
index weights in these stocks to avoid
concentration risk in the portfolio.
The broad-based rally at the end of
the year was more favourable for
the Company, with market attention
returning to some of our higher
growth, mid cap companies. This has
opportunities, where a focus on bottom-
up fundamentals and industry expertise
can provide an edge versus the market.
The third quarter earnings season had
momentum in a number of our holdings,
particularly those focused on cloud
computing. We took bolder positions in
these areas, which helped us participate
in the rally in full.
Weakness tended to come in
idiosyncratic areas, rather than from any
major themes. For example, Pay.com
was a notable detractor, hit by concerns
over the outlook for the jobs market
and some operational issues that saw it
miss on earnings. Okta was also weak,
impacted by execution challenges.
It was a mixed year for the
semiconductor sector. It was important
lagging’ semiconductor groups. While
Nvidia soared on the back of demand
for its AI-focused chips, it was a tougher
year for generic semiconductors and
those exposed to auto-related sectors.
The Company moved away from auto-
generic semiconductor groups such as
Texas Instruments. Nvidia was a major
holding from February onwards.
Geopolitical tensions continued to
support demand for cybersecurity
companies during the year, particularly
at the end of 2023 when software and
IT services outperformed other areas.
with more data requiring greater
protection. Cyber attacks continued with
a major Chinese espionage campaign
8
SEC ruling requiring disclosure of events
within four days also impacted demand
for cybersecurity solutions. Overall
spending on cybersecurity continues
to grow faster than other major
technology segments.
areas it didn’t hold. For example, for
most of the year it did not hold anything
in China. The weakness of Chinese
markets was a dominant feature of the
year and this helped performance.
Stock highlights
Seven was the key highlight for
equity markets overall. Five of the
Apple, Alphabet,
Meta Platforms, Microsoft and Nvidia)
are held in both the Company and in
the benchmark, generally at a lower
concentration than the Company’s
benchmark index. The exception was
Meta, where the Company held a near-
double benchmark weight (at 6.3%). This
provided the strongest contribution to
returns over the year. Having previously
exited our historic position, we bought
back the stock at the end of 2022 on
the back of expectations that its cost-
cutting initiatives, lower valuation level
and secular growth would drive shares
higher. Over the year, an improving
competitive position and new product
development helped push it higher. The
Company also held Amazon.com and
Tesla
Seven stocks, which are not part of
the benchmark and were additive
to performance.
MongoDB was another notable
performer over the year. The database
software company posted consecutive
quarters of strong earnings, ahead
of market expectations. Earnings
were fuelled by a faster recovery in
consumption trends for the business,
driven by the growth of generative AI.
China was a particular weak spot over
the year, as international investors
withdrew from the market. We have
been wary of the Chinese market for
some time, believing government
interference threatens shareholder
returns. Not holding Tencent Holdings
and to a lesser extent Alibaba
contributed to overall performance
versus the benchmark during the year.
The one Chinese stock we owned was
JD.com
January and February. It is an online
range of products through its website
and mobile applications. We thought
reopening trade. As it was, the Chinese
consumer failed to revive and we sold
it quickly. Although it detracted from
overall performance, it proved a prudent
sale, with the share price tumbling after
we exited.
Identity management group Okta
was a weak spot. It had a number of
operational problems: it had over-hired,
leaving sales territories cut too small
for sales reps to meet their numbers.
The company also struggled from
increased competition, while a large
number of cyber attacks weighed on its
credibility. Paycom Software was also a
a series of disappointing earnings
reports. As a designer and developer
of software solutions to manage the
employment life cycle, it was hit by
concerns about the jobs outlook and a
moderation in economic growth.
The Company’s cash weighting was
lower than last year – at around
2% on average. This detracted from
returns given the strength of markets,
particularly at the start of the year.
Nevertheless, it allowed us to retain
optionality in the portfolio during
periods of uncertainty.
Looking forward
At the start of 2023, valuations were
improvement - along with higher
earnings – technology companies
appear to be trading at around fair
value today. That said, there are some
tailwinds for the year ahead and we
believe the equity market recovery
over the past few months can extend
into 2024.
At the December 2023 Federal Open
Market Committee meeting, the US
Federal Reserve signalled multiple
continues to weaken and, while the
jobs market remains buoyant, growth
is moderating. With interest rate cuts
on the horizon and an economic soft
landing expected, investors are likely
the mega-caps into other parts of the
market. Broader earnings growth may
accelerate this trend.
There are going to be bumps along
the way and the market might be due
for a short-term pause after its recent
strength, but there are reasons to be
optimistic about the long-term secular
growth prospects for technology.
and machine learning, the Internet of
Things, cyber security, digital assets and
mobility. The macroeconomic challenges
of the past few years are likely to
ease, which should give investors
The challenges of the past few years
have forced companies to look at
their cost structures, re-engineer their
The result is that the survivors are
far stronger, with better competitive
positions and stronger earnings. We
continue to believe the technology
sector can provide some of the
best absolute and relative return
opportunities in the equity markets.
12 March 2024
9
INVESTMENT MANAGER’S REVIEW
ALLIANZ TECHNOLOGY TRUST PLC
Investment Sector
#
Sub Sector
#
Country
Valuation
£000
% of
Portfolio
Microsoft Software Systems Software United States 109,646 8.5
NVIDIA
Semiconductors &
Semiconductor Equipment
Semiconductors United States 92,982 7.2
Apple
Technology Hardware,
Storage & Peripherals
Technology Hardware,
Storage & Peripherals
United States 81,921 6.4
Alphabet Interactive Media & Services Interactive Media & Services United States 63,727 5.0
Meta Platforms Interactive Media & Services Interactive Media & Services United States 53,809 4.2
Broadcom
Semiconductors &
Semiconductor Equipment
Semiconductors United States 46,208 3.6
Amazon.com Broadline Retail Broadline Retail United States 45,310 3.5
Lam Research
Semiconductors &
Semiconductor Equipment
Semiconductor Equipment United States 40,721 3.2
Monolithic Power Systems
Semiconductors &
Semiconductor Equipment
Semiconductors United States 39,131 3.0
Micron Technology
Semiconductors &
Semiconductor Equipment
Semiconductors United States 34,757 2.7
Top ten investments 608,212 47.3
MongoDB IT Services
Internet Services
& Infrastructure
United States 34,468 2.7
Zscaler Software Systems Software United States 32,664 2.5
Adobe Software Application Software United States 31,918 2.5
Samsung Electronics
Technology Hardware,
Storage & Peripherals
Technology Hardware,
Storage & Peripherals
South Korea 31,855 2.5
ServiceNow Software Systems Software United States 31,697 2.5
Advanced Micro Devices
Semiconductors &
Semiconductor Equipment
Semiconductors United States 31,409 2.4
Datadog Software Application Software United States 30,956 2.4
CrowdStrike Software Systems Software United States 30,103 2.3
Shopify IT Services
Internet Services
& Infrastructure
Canada 26,944 2.1
Mercadolibre Broadline Retail Broadline Retail United States 26,109 2.0
Top twenty investments 916,335 71.2
Investment Portfolio
at 31 December 2023
Full portfolio list
10
Investment Sector
#
Sub Sector
#
Country
Valuation
£000
% of
Portfolio
Taiwan Semiconductor
Semiconductors &
Semiconductor Equipment
Semiconductors Taiwan 25,290 2.0
HubSpot Software Application Software United States 23,754 1.9
IT Services
Internet Services
& Infrastructure
United States 23,456 1.8
Applied Materials
Semiconductors &
Semiconductor Equipment
Semiconductor Equipment United States 22,554 1.8
Cyberark Software Software Systems Software Israel 22,470 1.7
Arista Networks Communications Equipment Communications Equipment United States 21,493 1.7
Palo Alto Networks Software Systems Software United States 21,465 1.7
IT Services
Internet Services
& Infrastructure
United States 20,828 1.6
KLA
Semiconductors &
Semiconductor Equipment
Semiconductor Equipment United States 19,206 1.5
Cadence Design Software Application Software United States 18,270 1.4
Top thirty investments 1,135,121 88.3
Marvell Technology
Semiconductors &
Semiconductor Equipment
Semiconductors United States 15,933 1.2
Western Digital
Technology Hardware,
Storage & Peripherals
Technology Hardware,
Storage & Peripherals
United States 13,478 1.1
NXP Semiconductors
Semiconductors &
Semiconductor Equipment
Semiconductors Netherlands 13,166 1.0
Expedia
Internet & Direct
Marketing Retail
Internet & Direct
Marketing Retail
United States 13,034 1.0
Elastic NV Software Application Software Netherlands 12,212 1.0
ON Semiconductor
Semiconductors &
Semiconductor Equipment
Semiconductors United States 12,116 0.9
Monday.com Software Systems Software Israel 12,110 0.9
Synopsys Software Application Software United States 12,085 0.9
Trade Desk Media Advertising United States 9,945 0.8
Intel
Semiconductors &
Semiconductor Equipment
Semiconductors United States 8,033 0.6
Top forty investments 1,257,233 97.7
Okta IT Services
Internet Services
& Infrastructure
United States 7,811 0.6
Uber Technologies Ground Transportation
Passenger Ground
Transportation
United States 7,539 0.6
JFrog Software Systems Software Israel 7,441 0.6
Pinterest Interactive Media & Services Interactive Media & Services United States 6,762 0.5
Total investments 1,286,786 100.0
#
GICS Industry classifications
11
INVESTMENT MANAGER’S REVIEW
Strategic Report
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 UK Limited (‘the AIFM’) and Voya Investment Management Co LLC (‘the Investment Manager’ for
portfolio management) in the management of the Company’s activities.
Strategy and Business Model
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 premium 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 Company’s day-to-day functions are carried out by the following main
third party services providers:
– AllianzGI UK as AIFM
– Voya as Investment Manager
– HSBC as Custodian and Depositary
– Link as Registrars
–
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 10 and 11 and a summary of the top twenty holdings can be
found on the website version of the Annual Financial Report. In the year ended 31 December 2023, the Company’s total return
on net assets per share was +46.4% (2022: -33.6%), underperforming the Dow Jones World Technology Index (sterling adjusted,
total return) by 1.8 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 Manager’s 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’):
The table below compares the Company’s performance to the main technology indices. Although the Company underperformed
the benchmark, your Company has outperformed the MSCI World Technology Index over 1 year but underperformed over 3, 5
and 10 years:
% Change 1 year 3 years 5 years 10 years
ATT NAV per share 46.4 16.2 163.6 530.2
Dow Jones World Technology Index (sterling adjusted, total return)* 48.2 39.9 175.4 535.8
MSCI World Technology Index (total return) 45.0 48.8 196.3 618.0
Russell MidCap Technology Index 32.7 12.1 114.8 456.1
Source: AllianzGI/Datastream in GBP as at 31 December 2023.
* Company’s reference benchmark.
12
ALLIANZ TECHNOLOGY TRUST PLC
Strategic Report
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 per share 46.4 16.2 163.6 530.2
FTSE All Share Index (total return) 7.9 28.1 37.7 68.2
FTSE World Index (total return) 17.2 32.8 83.9 203.9
Source: AllianzGI/Datastream in GBP as at 31 December 2023
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 Company’s good performance versus the other funds within the
Morningstar Global Technology Sector – Equity (Morningstar) category is noted in the table below:
1 year 3 years 5 years 10 years
Peer Group Ranking vs Morningstar 48/192 62/138 16/111 9/56
The Board regularly reviews 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 2023, relative to the benchmark index*, were as follows:
Top ten contributors relative to the benchmark Top ten detractors relative to the benchmark
Active
contribution
GBP (%)
Active
contribution
GBP (%)
Meta Platforms Overweight 1.83 Okta Overweight -1.15
Tencent Underweight 1.28 Paycom Software Overweight -1.12
MongoDB Overweight 0.91 JD.com Overweight -0.93
CrowdStrike Overweight 0.82 Emerson Electric Overweight -0.93
HubSpot Overweight 0.76 ON Semiconductor Overweight -0.82
Cisco Systems Underweight 0.76 Pure Storage Overweight -0.67
Texas Instruments Underweight 0.63 Intuit Overweight -0.63
Palo Alto Networks Overweight 0.62 GitLab Overweight -0.62
Apple Underweight 0.59 Alphabet Underweight -0.61
Monolithic Power Systems Overweight 0.50 Samsung Overweight -0.61
8.70 -8.09
Source: Allianz Global Investors. 31 Dec 2022 - 31 Dec 2023.
* Relative to Dow Jones World Technology Index. Figures may not add due to rounding.
Share Buybacks and Share Issues
The Directors continually monitor the level of premium or discount of the share price to the NAV per share. Over the year to 31
December 2023, the mid-market price of the Company’s shares increased by 44.5% (2022: decreased by 40.4%), with a discount
at the year end of 10.3% (2022: 9.1%).
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 did not issue any new shares during 2023 (2022: nil) and bought back 16,530,708 shares at a discount to NAV
(2022: 16,703,872). There were 38,799,670 shares held in treasury at the year end (2022: 22,268,962 shares).
13
STRATEGIC REPORT
Results and Dividends
An overview of the Company’s results is shown in the Financial
Highlights on page 2. The revenue reserve remains
of the year ended 31 December 2023 (2022: nil). As stated in
the Chairman’s Statement, the Board considers it 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
evolution and the future attractiveness of the Company as an
investment vehicle compared with long-term savings markets.
The Chairman gives his view on the outlook in his statement
which starts on page 3 and the Portfolio Manager
discusses his view of the Company’s portfolio and the outlook
in his report which starts on page 7. The Board holds a
it considers the position of the Company and the strategy for
the year ahead and beyond, making recommendations for
was held in October 2023.
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 2023 both
virtual and in-person communication tools have been
used. This programme targets potential investors as
well as communicating the latest developments to its
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
advisers as well as the ever-increasing numbers who are
researching and making their own investment decisions. The
programme comprises advertising and other promotional
activity as well as communicating with journalists and the
Company’s specialist investment strategy can be highly
boosted by the number of performance awards won by the
Company over recent years and has been instrumental in
generating demand from retail investors which is, of course, to
investors are choosing to buy and sell stocks and shares
via online trading platforms rather than via a traditional
stockbroker. Approximately 35% (2022: 35%) of the Company’s
shares are now held by investors on these platforms. Many
pension products as well as the facility to invest on a regular
monthly basis. Competition amongst platform providers is
to buy the Company’s shares.
Board diversity
At 31 December 2023, there were two male Directors and
three female Directors. Further information on Board Diversity
may be found in the Directors’ Report on page 28.
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, and has formally
assessed the prospects for the Company over a period of
The next continuation vote will be put to shareholders at the
AGM in 2026. In order to assess the prospects for the Company
the Board has considered:
– The investment objective and strategy taking into account
recent, past and potential performance against both the
benchmark, other indices of note and peers;
–
currently utilise gearing in any form but does maintain a
portfolio of, in the main, non-income bearing investments;
– The liquidity of the portfolio and the ability to liquidate the
portfolio on the failure of a continuation vote;
– The macro economic conditions and geopolitical events;
– The ever increasing level of technology adopted by both
individuals and corporations alike;
– The inherent risks in such technology both in terms of speed
of advancement; and
– The principal risks faced by the Company as outlined below.
The Board is fully aware that the world of technology is
constantly evolving and growing and could potentially look
the formal assessment, through regular updates from the
AIFM and the Investment Manager, the Board believes it
is reasonable to expect that the Company will continue in
under this review.
Investment Controls and Monitoring
The Board in conjunction with the AIFM and the Investment
Manager has put in place a schedule of investment controls
and restrictions within which investment decisions are made.
These controls include limits on the size and type of investment
and are monitored on a constant basis. They are formally
month and are reviewed by the Board at every meeting.
Principal and Emerging Risks and Uncertainties
table below, together with information about the actions
taken to mitigate these risks. A more detailed version of this
table in the form of a Risk Map and Controls document is
reviewed in full and updated by the Audit & Risk Committee
14
ALLIANZ TECHNOLOGY TRUST PLC
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
Change in
risk during
the year
Investment strategy and performance risk
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 Board has established a schedule of
investment controls which is monitored monthly
and reviewed at each Board meeting. 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
Technology sector risk
The technology sector is characterised by rapid
change. New and disruptive technologies, including
AI, 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.
The Board has reviewed the risks and opportunities
presented by AI via discussion with a subject
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
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. See Operational Risk below.
Market risk
by a general decline in the valuation of listed
securities and/or adverse market sentiment
towards the technology sector in particular.
Although the Company has a portfolio that is
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. The Company’s
banks interest rates. Higher interest rates have had
an adverse impact on growth stocks.
Market sentiment may quickly deteriorate in the
macro-economic environment.
The Board, the AIFM and the Investment Manager
monitor stock market movements and may
consider hedging, gearing or other strategies to
respond to particular market conditions. The AIFM
and the Investment Manager maintain 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 companies that are well
those segments of the technology market where
disruptive change is occurring.
The Board, the AIFM and the Investment Manager
would monitor the progress of the unexpected
events very closely and initiate appropriate
responses where possible.
15
STRATEGIC REPORT
Description Mitigation
Change in
risk during
the year
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. Movements in foreign exchange rates
and create a risk for shareholders.
The Board monitors currency movements and
determines hedging policies as appropriate. The
Board does not currently seek to hedge this foreign
currency risk.
Financial and liquidity risk
in place to manage these risks are disclosed in
detail in Note 13 beginning on page 65.
Financial and liquidity reports are provided to and
considered by the Board on a regular basis.
Operational risk
The Company may be impacted by disruption to
or the failure of the systems and processes utilised
by the AIFM and the Investment Manager or other
third party service providers. This encompasses
disruption or failure caused by cybercrime, fraud
and errors and covers dealing, trade processing,
operational functions.
The Board receives regular reports from the AIFM,
the Investment Manager and third parties on
internal controls highlighting areas of exception,
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 fraud and has received reports
and assurance regarding the controls in place and
details of whistleblowing procedures.
Key individual risk
as a consequence of loss of key individuals e.g. the
lead portfolio manager.
Succession plans are in place for the Board. The
lead portfolio manager is supported by Erik
Swords, portfolio manager and an experienced
team of technology investors. Cover is available for
core members of the relevant teams of the AIFM.
accounting, legal and regulatory requirements, and with corporate governance and shareholder relations issues which could
have an impact on reputation and market rating. Management of the services provided and the internal controls procedures
of the third party providers is monitored and reported on by the AIFM to the Board. These risks are all formally reviewed by
the Board twice each year and at such other times as deemed necessary. Details of the Company’s compliance with corporate
governance best practice, including information on relations with shareholders, are set out in the Corporate Governance
Statement within the Directors’ Report beginning on page 34.
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.
16
ALLIANZ TECHNOLOGY TRUST PLC
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 via
the Company’s suppliers and intermediaries. Engagement is both in person and virtually. Engagement with the Company’s
shareholders as a whole. The Board strives for an open, constructive and pro-active 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 and
objective 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.
The lead portfolio manager
participates in investor events
and webinars, as well as
videos and podcasts on the
website to keep shareholders
informed on investment activity
and performance.
In the year the Board introduced
the new online stakeholder
report via the Turtl platform to
provide enhanced reporting
to shareholders.
The Chairman met with a number
of shareholders in the year
following his appointment.
Monthly factsheets are published
on the Company’s website.
Shareholders make informed
decisions about their
investments. Shareholder
correspondence is forwarded
directly to the Board.
17
STRATEGIC REPORT
Stakeholders Why we engage How we engage and what we do The outcomes
Voya Investment
Management –
the Investment
Manager
The Board works with
the Investment Manager
who provides portfolio
management services.
The Board has a triparite
agreement for the provision
of portfolio management
services. The Board meets with
representatives of the Investment
Manager throughout the year.
The Portfolio Manager provides
regular updates at Board
meetings and upon request by
the Board.
The Company is well
managed and receives
appropriate and timely
advice and guidance for a
reasonable cost.
Allianz Global
Investors UK
Limited – the
AIFM
The Board works with
the AIFM who provides
accounting and 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 UK to develop
strategy for the Company,
including a sales and marketing
plan which was adopted
during the year, to promote the
which helps raise its rating.
The Company is well
managed and receives
appropriate and timely
advice and guidance for a
reasonable cost.
Portfolio
companies
The Board approves the
Investment Manager’s active,
stock picking approach and
believes in good stewardship.
On the Company’s behalf the
Investment Manager engages
with investee companies,
including discussions 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 Investment Manager
actively votes at portfolio
company meetings.
Brokers The Board, the AIFM and the
Investment 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
press and media activity. We
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.
18
ALLIANZ TECHNOLOGY TRUST PLC
Stakeholders Why we engage How we engage and what we do The outcomes
Distribution
partnerships
To reach a wider audience
of investors the Company
access to platforms 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
that there is 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.
Information about
the Company is
disseminated widely.
Other service
providers
The Board has appointed
HSBC as Depositary and
Custodian and Link Group as
Registrar to provide specialist
services to the Company.
In addition to regular contact and
assurance testing that sound and
from all these service providers,
there is a rolling programme of
due diligence visits to suppliers of
third party services by AllianzGI
UK’s investment trust team to
ensure that the Company is
receiving good quality services
internal controls.
Assurances from direct service
providers on their internal
controls are given formally
to the Company twice yearly
but day-to-day contact with
the investment trust team
ensures that issues are quickly
and that remedial action can
take place.
A NAV pricing issue arose
during the year from an
external provider of fund
administration services. The
AIFM responded with a due
diligence exercise, resulting
in enhanced controls
and procedures.
19
STRATEGIC REPORT
Environmental, Social, Governance (‘ESG’)
and Stewardship – the Company’s Report
The Investment Manager’s approach to ESG is set out on
pages 22 to 23. The Investment Manager is a signatory to
the United Nations Principles for Responsible Investment.
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, Voya has a due diligence approach
to ensure 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.
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.
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
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. This
minority shareholders and founders, both in strategy and
sometimes in unhelpful share structures. Of course, the more
a company matures, the less of a potential problem this
usually becomes.
Stewardship
Until 31 December 2023 the Board had delegated the
exercise of proxy voting powers on its behalf to discharge
its responsibilities in respect of investments to the AIFM.
have transferred to the Investment Manager to ensure
that the portfolio managers can engage in the decision
making process.
The Voya IM ESG and Proxy Voting Policies have been
reviewed by the Board and it believes that the Company’s
delegated voting powers are being properly executed. Voya
IM uses Institutional Shareholder Services Inc. (‘ISS’) as its
Proxy Advisory Firm to assist in managing its proxy voting
responsibilities. ISS is an independent proxy voting adviser
related services.
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 Investment Manager, AIFM
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 Board has noted the
AIFM and 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
The Board takes ESG considerations very seriously and, as such, intends to make clear how
our oversight of our Investment Manager’s process, with investment being the sole business of
the Company.
20
ALLIANZ TECHNOLOGY TRUST PLC
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 Company would be
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
Investment Manager.
Modern Slavery Act 2015
The Company does not provide goods or services in the
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
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.
Criminal Finances Act 2017
The Company has a commitment to zero tolerance towards
the criminal facilitation of tax evasion.
Taskforce on Climate Related Financial
Disclosures (‘TCFD’) and Global Greenhouse Gas
Emissions
In accordance with the requirements of the TCFD, AllianzGI
UK as AIFM is preparing a product level report for the
Company. It is expected that the TCFD report for the
Company will be available in June 2024 on the Company’s
website www.allianztechnologytrust.com.
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. For the same reason as set out above, the Company
considers itself to be a low energy user under the Streamlined
Energy and Carbon Reporting regulations and therefore is not
required to disclose energy and carbon information.
The Strategic Report has been approved by the Board and
signed on its behalf by:
Chairman
12 March 2024
Proxy Voting 1 January 2022 to 31 December 2023
Company meeting voting record
Number of meetings
voted 100% in line
with management
recommendation: 5
Number of meetings with
at least one vote against,
withheld or abstained: 44
Total vote distribution
Number of votes for: 71%
Number of votes against: 23%
Number of votes abstain: 1%
Number of votes withheld: 3%
Not voted: 0%
In the year there were 50 shareholder meetings for companies in the portfolio and the AIFM voted on the Company's behalf at
49 of those. This represents a total of 634 resolutions and the Company voted on 99% of these. Source: AllianzGI.
Figures may not add up to 100 due to rounding.
21
STRATEGIC REPORT
Voya Investment Management’s
Environmental, Social and Governance
(‘ESG’) Policy
We recognize the importance ESG considerations play in
maintaining our culture, performing thorough investment
analysis, and meeting our clients’ investment objectives. We
believe that the incorporation of ESG information, alongside
informed investment decision-making and a more holistic
assessment of long-term investment risks and opportunities.
As part of our investment process, we consider material
factors, which may include ESG criteria, with the goal of
meeting our clients’ investment objectives. Additionally, we
according to their sustainability preferences.
Our ESG Investment Program has been designed to help
clients meet their investment objectives and enable them to
invest across a spectrum of returns, risk and ESG objectives. As
– Integrate ESG factors into investment decisions, as relevant
and material.
–
to client demand.
– Perform stewardship activities including active engagement
and proxy voting to drive value and long-term sustainability.
– Consider climate change related data throughout our
ESG program.
– Oversee and manage ESG activities through a
comprehensive governance structure.
ESG integration
We believe that ESG factors can impact the long-term risk
into the investment process is underpinned by the belief
that it will improve the resilience of the portfolio over the
long term by generating more stable, sustainable long-term
consideration of ESG factors, when relevant and material,
alongside traditional factors, into our investment decisions
and engage with issuers as part of our commitment to
active ownership.
of the long-term performance outlook of a company and the
value of its securities. Depending on the situation, as part of
condition, we may consider information about many factors,
including, among others, those that are considered ESG, such
as exposure to regulation or litigation, labour relations, human
rights, product quality and safety, reputation, governance
practices, executive compensation, board oversight, reporting
and disclosure, community relations, energy costs and
climate impact.
In general, we focus on those ESG factors likely to have a
and its securities over time. Furthermore, our experienced
analysts and portfolio managers have a deep understanding
considerations, and we attempt to take into account
the material factors that contribute to making informed
investment decisions.
Stewardship – Active Ownership and engagement
Philosophy
Voya IM’s long-term perspective favours sound investment
principles aligned with the priorities of our clients. Accordingly,
our active ownership activities are designed to protect and
enhance the economic value of the companies in which we
invest on our clients’ behalf. We do this through exercising
voting rights delegated to us at shareholder meetings,
engaging with companies in which we have invested,
and collaborating with other stakeholders to encourage
companies to drive value and long-term sustainability.
Voya IM believes that on-going discussions with senior
management and board members of companies are essential
to understand the businesses in which we have invested
and to promote best practices and long-term sustainability.
Therefore, communication between our investment teams
and the Active Ownership (‘AO’) team is critical to ensuring
our engagements with companies address all relevant ESG
concerns. Engagements focused on ESG matters are led
At Voya Investment Management (‘Voya IM’), we are dedicated to exceeding our clients’
expectations for both service and investment results. Our mission is to help our clients meet
their investment objectives and enable them to invest across a spectrum of returns, risk and
ESG objectives.
22
ALLIANZ TECHNOLOGY TRUST PLC
by the AO team and may also include portfolio managers.
In addition, our portfolio managers engage with company
management teams to address a range of fundamental
questions and concerns, which may include issues that can be
To that end, Voya IM has developed engagement guidelines
to describe our engagement philosophy, objectives, priorities,
methodology, tracking, and escalation. These guidelines are
designed to help our companies understand the AO team’s
engagement goals and expectations, thereby fostering
mutually productive dialogue.
Engagements
The AO team aspires to improve the long-term sustainability
of the companies in which Voya IM invests by promoting ESG
best practices through our proxy voting and engagement
activities as well as collaborative discussions with other
institutional shareholders. Therefore, the purpose of all
engagements conducted by the AO team is to have a
constructive dialogue between the company and the AO team.
Our goal is to understand how the company is addressing its
ESG risks and opportunities, better understand each other’s
views and objectives, develop a long-term relationship
disclosure, utilising generally accepted reporting frameworks
such as TCFD, SASB, EEO-1, GRI, etc.
Additionally, Voya IM investment teams may engage with the
companies in which they invest. The investment teams utilize
an on-line engagement survey to record key issues discussed
during their engagements and assess the company’s ability
teams are able to escalate any concerns they may have with a
company to the AO and ESG Research teams.
Proxy Voting
our clients.
To this end, Voya IM considers many factors, including ESG
factors, which may impact the investment risk and return
Proxy Voting Procedures and Guidelines were developed to
summarize Voya IM’s philosophy on various issues of concern
to shareholders and provide a general indication of how
Voya IM may vote its clients’ portfolio securities regarding
these issues in order to maximize shareholder value and
mitigate risks.
The Board has delegated the exercise of voting powers
on its behalf to discharge its responsibilities in respect of
investments to the Investment Manager and receives regular
voting reports.
Climate change
our planet. If not aggressively addressed through sweeping
temperature will increase by a dangerously high degree
and radically alter our ecosystems. The direct and indirect
view, we integrate climate change into the Voya IM’s ESG
investment framework, which helps guide our assessment
of portfolios’ exposures to climate and other ESG risks and
opportunities. Among environmental considerations, climate
change represents the most important theme for many
sectors. Although the magnitude of importance varies, it is a
consideration for all companies given our expectation that
decarbonisation will be a central macro driver going forward.
However, climate change and its potential impact on asset
value are complex and uncertain. For these reasons, Voya IM
integrates data, as available, related to carbon emissions,
impact and climate change vulnerability with the intent of
understanding a company’s physical risk (i.e. future damage
caused by climate related disasters) and transition risks (i.e.
economy). We also consider the opportunities on which
companies may be able to capitalize.
The same tools, techniques and insights can be used to build
change related objectives. Implementation varies, but these
products generally seek to promote climate change mitigation
important to note, as part of our normal investment processes,
Voya IM does not exclude or favour investments strictly based
on climate-related metrics unless the portfolio is expressly
designed with such an objective or clients direct us to do so.
23
STRATEGIC REPORT
Directors
Chairman of the Board and
Nomination Committee. Member
of the Remuneration Committee
and Management Engagement
Committee
Tim joined the Board on 1 December
2021 and was appointed Chairman
on 26 April 2023. He is a non-executive
director of abrdn UK Smaller Growth
Companies 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.
Ekaterina (Katya) Thomson
Chairman of the Audit & Risk
Committee and member of the
Nomination Committee, the
Remuneration Committee and
Management Engagement
Committee
Katya joined the Board on 18 July
2022 and was appointed as Chairman
of the Audit & Risk Committee on 31
December 2022. She is currently a non-
executive director and audit committee
chairman of AVI Japan Opportunity
Trust plc and Henderson EuroTrust plc.
professional with over thirty years
of experience in the UK and Europe.
Katya is a Chartered Accountant and
a member of the Institute of Chartered
Accountants in England and Wales.
Humphrey van der Klugt
Senior Independent Director and
Chairman of the Remuneration
Committee. Member of the Audit
& Risk Committee, 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 stepped down as Chairman
of the Audit and Risk Committee on
31 December 2022. He is currently
also a non-executive 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. Humphrey
Accountant with Peat 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.
24
ALLIANZ TECHNOLOGY TRUST PLC
Director’s Review
Elisabeth Scott
Member of the Audit & Risk
Committee, the Nomination
Committee, Remuneration
Committee and the Management
Engagement Committee.
Elisabeth joined the Board on 1
February 2015. She is chair of India
Capital Growth Fund plc and of
JPMorgan Global Emerging Markets
Income Trust plc and has been a
non-executive director of investment
companies since 2011. She was chair
of the Association of Investment
Companies from January 2021 until
January 2024. Elisabeth worked in the
Hong Kong asset management industry
from 1992 to 2008, latterly as managing
director and country head of Schroder
Investment Management (Hong Kong)
Limited and she chaired the Hong Kong
Investment Funds Association from 2005
to 2007.
Neeta Patel CBE
Chairman of the Management
Engagement Committee. Member
of the Audit & Risk Committee, the
Nomination Committee and the
Remuneration Committee.
Neeta Joined the Board on 1 September
2019. She is a non-executive director
of Albion Venture Capital Trust plc
and European Opportunities Trust plc.
She is also a board adviser at several
technology startups. She was previously
CEO at the Centre for Entrepreneurs and
an entrepreneur mentor-in-residence
at London Business School, a board
adviser at Tech London Advocates and
a member of the advisory board at City
University Ventures.
She was awarded a CBE in the Queen’s
honours list in October 2020 for services
to entrepreneurship and technology.
Simon (Sam) Davis
Member of the Audit & Risk
Committee, the Nomination
Committee, Remuneration
Committee and the Management
Engagement Committee.
Sam joined the Board on 1 January
2024. He is a non-executive director
Sam studied Japanese at Oxford before
joining Morgan Grenfell & Co. Ltd,
both London and Tokyo. He moved to
Morgan Grenfell Asset Management
in 1996 to work with a Tokyo-based
team. In 2000 he joined Putnam
in London where, over his 19 year tenure,
he managed Asian, European and
broad international equity portfolios.
As Putnam’s co-head of equities he
oversaw a global investment team and
was CEO of Putnam Investments Ltd, the
group’s UK regulated entity.
The table below sets out the number of formal Board and Committee meetings held during the year ending 31 December 2023
and the number attended by each Director. In addition to the scheduled Board and Committee meetings, Directors attended ad
hoc meetings to consider matters as and when required. All Directors attended the Annual General Meeting of the Company.
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. Meeting
attendance by the Directors during the year ending 31 December 2023 was as follows:
Board
Audit & Risk
Committee
Nomination
Committee
Remuneration
Committee
Management
Engagement
Committee
Strategy
Meeting
Number of meetings in the year 4 2 2 1 1 1
1
4 2 2 1 1 1
Humphrey van der Klugt 4 2 2 1 1 1
Katya Thomson 4 2 2 1 1 1
Neeta Patel
2
3 2 2 1 1 1
Elisabeth Scott 4 2 2 1 1 1
Robert Jeens
3
2 1 1 N/A N/A N/A
1
Tim Scholefield is not a member of the Audit & Risk Committee but may attend by invitation.
2
Neeta Patel had to send short notice apologies for one Board meeting due to an emergency personal situation.
3
Retired from the Board on 26 April 2023.
25
DIRECTOR’S REVIEW
Directors’ Report
The Directors present their Report and the audited Financial
Statements for the year ended 31 December 2023.
Information pertaining to the business review including the
outlook and future development is included in the Strategic
Report, starting on page 12 and within the Chairman’s
Statement starting on page 3.
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
to retain such approval. As an 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). Full details can be found inside the
front cover.
Investment funds
The market value of the Company’s investments at 31
December 2023 was £1,287m (2022: £899m) with gains of
£355m (2022: losses of £22m) over book cost. Taking these
investments at this valuation, the net assets attributable to
each Ordinary share amounted to 338.2p at 31 December
2023 (2022: 231.0p). During the year, the Company did not
enter into any derivative contracts and therefore there were
no outstanding contracts as at 31 December 2023. See Note
describing the Company’s exposure to price risk, credit risk,
Information pertaining to the business review and future
outlook can be found in the Strategic Report starting on
page 12.
Management Contracts
During the year, the Company changed its AlFM from Allianz
Global Investors GmbH, UK Branch to Allianz Global Investors
has the same ultimate parent company as, AllianzGI GmbH.
AllianzGI UK is authorised and regulated by the Financial
London EC2M 3TY.
The Company has a tripartite Delegation Agreement with
AllianzGI UK and Voya for portfolio management services.
AllianzGI UK is the AIFM, providing company secretarial,
administrative and sales and marketing services, and portfolio
management services are provided by Voya. The management
agreement provides for a base fee of 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 £400m and £1
billion, and 0.5% for any market capitalisation over £1 billion.
AllianzGI UK’s administration costs.
In each year, in accordance with the tripartite management
contract, the Investment Manager is entitled to a
performance fee subject to various performance conditions.
The performance fee entitlement is equal to 10.0% 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). 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 than
performance fee was last paid. At 31 December 2023 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 1.75% of the average daily NAV of the Company over the
period. 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
but not to generate a performance fee. To the extent
the Company has underperformed the benchmark, such
future outperformance before a performance fee can be paid.
Underperformance/outperformance amounts carried forward
26
ALLIANZ TECHNOLOGY TRUST PLC
The performance fee accrued for as at 31 December 2023 was £nil (31 December 2022: £nil).
The investment management fee (payable to AllianzGI UK) is charged 100% to revenue and the performance fee (payable to
Voya) is charged 100% to capital.
Continuing appointment of the AIFM and the Investment Manager
During the year, in accordance with the Listing Rules published by the FCA, the Board reviewed the performance of the AIFM
and 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 Management Agreement and tripartite Delegation Agreement, in particular the length of notice period and the
management fee structure.
Management Agreement and Tripartite Delegation Agreement is in the best interests of shareholders as a whole.
Going Concern
its liabilities. The Directors have considered the Company’s investment objective and capital structure. The Directors have also
considered the risks and consequences of the geopolitical and macro-economic events on the operational aspects of the
Company and this has been assessed in the Viability Statement on page 14. The Directors believe that the Company has
shareholders at the AGM in 2021.
Related Party Transactions
the performance of the Company.
Capital Structure
The Company’s capital structure is set out in Note 10 on page 63.
Voting Rights in the Company’s shares
As at 12 March 2024, 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 386,685,609 1 386,685,609
Ordinary shares of 2.5p held in treasury 42,071,071 Nil Nil
Total 428,756,680 1 386,685,609
27
DIRECTOR’S REVIEW
Interests in the Company’s Share Capital
The Company was aware of the following substantial interests in the voting rights of the Company as at 29 February 2024, the
latest practical date before publication of the Annual Financial Report.
31 December 2023
29 February 2024
Holder
Number of
shares
% of issued
share capital
Number of
shares
% of issued
share capital
Hargreaves Lansdown, stockbrokers (EO) 47,494,542 12.2 49,304,191 12.8
Interactive Investor (EO) 46,401,614 11.9 47,710,866 11.9
Rathbones 42,632,587 10.9 42,051,662 10.9
Charles Stanley 28,623,204 7.4 28,394,977 7.3
AJ Bell, stockbrokers (EO) 18,165,977 4.7 18,216,194 4.7
Evelyn Partners (Retail) 15,872,513 4.1 16,761,438 4.1
EO - Execution Only
Repurchase of Ordinary shares
At the Annual General Meeting (‘AGM’) held on 26 April 2023, 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 16,530,708 shares for holding in treasury (2022: 16,703,872).
The Board and diversity
The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented
prepared for each appointment. The following tables set out the prescribed format for information a company must include in
its Annual Financial Report in accordance with the requirements of LR9 Annex 2.1. The Board has chosen to align its diversity
periods. Further details on the Company’s appointment process can be found under Appointments to the Board and Director
Tenure on page 34.
As at 31 December 2023:
Number of
Board members
Percentage
of the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
Men 2 40% N/A*
Women 3 60% N/A*
Other - - N/A*
- - N/A*
* This column is inapplicable as the Company is externally managed and does not have executive management functions,
that chairing the permanent sub-committees that is the Audit & Risk Committee, Nomination Committee, Remuneration
Committee and Management Engagement Committee are all senior positions. Of these senior roles, two are performed by
women and two by men.
28
ALLIANZ TECHNOLOGY TRUST PLC
As at 31 December 2023:
Number of
Board members
Percentage
of the Board
Number of
senior positions
on the Board
(CEO, CFO, SID
and Chair)
White British or other White (including minority-white groups) 4 80% N/A*
Mixed/Multiple Ethnic Groups - - N/A*
Asian/Asian British 1 20% N/A*
Black/African/Caribbean/Black British
- -
N/A*
Other ethnic group, including Arab - - N/A*
* This column is inapplicable as the Company is externally managed and does not have executive management functions,
or other White prescribed category above. However, the Company considers that chairing the permanent sub-committees that is
the Audit & Risk Committee, Nomination Committee, Remuneration Committee and Management Engagement Committee are
all senior positions. Of these senior roles, three are attributed within the White British or other White and one within the Asian/
Asian British prescribed categories above.
Directors election and re-elections
The Directors of the Company, with the exception of Sam Davis, all served throughout the year under review. With the exception
of Humphrey van der Klugt, who will retire at the AGM, all Directors will stand for election or re-election by the shareholders at
the AGM in accordance with the AIC Code 2019. Sam Davis, who joined the Board on 1 January 2024, will stand for election at
the AGM. The biographies of the Directors are set out on pages 24 and 25. 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 25.
–
Company. Tim brings a wealth of investment knowledge, expertise and experience in investment management, particularly
in equities.
– Resolution 3 relates to the re-election of Katya Thomson, who was appointed on 18 July 2022, who brings in-depth knowledge,
– 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.
– Resolution 6 relates to the election of Sam Davis who was appointed on 1 January 2024 as a Director of the Company. Sam
brings in-depth global investment management experience and expertise.
Directors’ fees
A report on Directors’ Remuneration starts on page 41.
Deed of Indemnity information can be found on page 36.
Under the Companies Act 2006 a director must avoid a situation where she/he has, or can have, a direct or indirect interest that
29
DIRECTOR’S REVIEW
Under the AIC Code 2019, the Directors are required to notify
the Chairman and Company Secretary of any proposed new
consideration, if necessary, by the Board. The Directors are
required to list their current time constraints when requesting
that the agreed procedures have been followed in the year
under review.
Directors
As at the date of this Report, the Board consisted of six non-
executive Directors as detailed on pages 24 and 25. All
Directors with the exception of Sam Davis served throughout
the year. Sam was appointed to the Board on 1 January 2024.
Board Committees
For the year under review the Management Engagement
and the Nomination Committees were chaired by Robert
Jeens until his retirement on 26 April 2023. Those Committees
appointed as Chairman of the Management Engagement
Chairman of the Nomination Committee. The Audit & Risk
Committee is chaired by Katya Thomson and Humphrey
van der Klugt was Chairman of the Remuneration
the responsibilities of each Committee, can be 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 38.
Nomination Committee
The Nomination Committee report is on page 39.
Remuneration Committee
The Remuneration Committee report is on page 40.
Audit & Risk Committee
The Audit & Risk Committee Report starts on page 46.
The Board and Matters Reserved for the Board
formal schedule of matters reserved for the decision of the
Board and there is an agreed procedure for Directors, in the
furtherance of their duties, to take independent professional
areas reserved 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
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 issuance policy, share price and discount/premium
monitoring; the appointment or removal of the AIFM and
the Investment Manager; unquoted investment valuations;
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
and performance. Representatives of the AIFM and the
Investment Manager attend each Board meeting, enabling
further 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 formal
about improprieties for appropriate independent investigation.
The Audit & Risk Committee has, however, received and noted
the AIFM and Investment 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
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
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
30
ALLIANZ TECHNOLOGY TRUST PLC
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
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 keeping
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 that constitute
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 despite
Directors’ Responsibility, Accountability and Audit
The Directors’ Statement of Responsibilities in respect of the
Auditors’ Report starts on page 49. The Board has
delegated contractually to external agencies, including the
AIFM and 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
share registration services.
Each of these contracts was entered into after full and proper
consideration by the Board of the quality and cost of the
receives and considers regular reports from the AIFM and the
Investment Manager and ad hoc reports and information are
supplied to the Board as required.
Auditor objectivity and independence
Mazars 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
Mazars LLP has provided information on its independence
policies and the safeguards and procedures it has developed
that it is independent within the meaning of all regulatory and
professional requirements and that the objectivity of the audit
team is not impaired.
Each Director at the date of approval of this report
(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.
in accordance with the provisions of section 418 of the
Companies Act 2006. Mazars LLP will stand for re-election at
the forthcoming AGM.
Disclosures required by FCA Listing Rule 9.8.4
This rule requires listed companies to report certain
information is applicable to the Company in the year
under review.
Post Balance Sheet Events
Post balance sheet events are detailed in note 16 to the
Annual General Meeting
The AGM will be held on Wednesday 24 April 2024 at 2.30pm.
This meeting will be held as a hybrid meeting. This means
that 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 75. 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
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DIRECTOR’S REVIEW
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 AGM at which
the Portfolio 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 Company Secretary, details of whom can be found on
page 71.
The following Resolutions relating to items of special business
will be proposed:
Adoption of new Articles of Association
Resolution 11, which will be proposed as a Special Resolution,
seeks shareholder approval to adopt new Articles of
Association (the “New Articles”) in order to update the
Company’s current Articles of Association (the “Existing
Articles”). The proposed amendments being introduced in the
New Articles primarily relate to changes in law and regulation,
developments in market practice and other developments
since the Existing Articles were adopted.
The following principal amendments will be made to the
Company’s Existing Articles through the adoption of the
New Articles if Resolution 11 is approved by shareholders at
the AGM:
i. updating references in the Existing Articles to certain
legislation which has been amended or transposed into UK
law following Brexit;
ii. clarifying that the model articles contained in The
Companies (Model Articles) Regulations 2008 (SI 2008 No.
3229) do not apply to the Company;
iii. clarifying and expanding upon the Board’s ability to take
form (i.e. in the CREST system) in circumstances where
the Company is entitled to enforce a lien over, or sell,
transfer or forfeit, any of such shares in accordance with
the Articles;
iv. clarifying that the Company is permitted to purchase its
own shares and to reduce its share capital, any capital
redemption reserve and any share premium account in
any manner permitted by, and in accordance with, the
Companies Act 2006;
v. including provisions which require all Directors to retire
re-election) in line with the recommended corporate
governance regime in the UK, and provisions dealing with
the potential situation whereby no Directors are re-elected
at an AGM;
vi. expanding the provisions in the Existing Articles which
allow the Board to immediately remove a Director
vii. increasing the cap on the aggregate of all fees which may
be paid to Directors from £250,000 per annum to £325,000
per annum. The proposed increase will provide headroom
for the future. Both the Existing Articles and the New
Articles allow for a higher amount to be approved from
time to time by ordinary resolution of the Company;
viii. expanding the provisions in the Existing Articles which
enable the Directors to use electronic, digital and audio
communications to convene and conduct Board meetings,
Board committee meetings and other Board business; and
ix. removing the requirement to return the net proceeds of
sale of shares belonging to untraced shareholders and any
associated unclaimed dividends.
Other proposed amendments which are of a minor,
technical, typographical or clarifying nature have not been
summarised above.
The summary above is intended only to highlight the principal
amendments which are likely to be of interest to shareholders.
It is not intended to be comprehensive and cannot be relied
upon to identify amendments or issues which may be of
interest to all shareholders. The summary is not a substitute
for reviewing the full terms of the New Articles which will be
between the hours of 9.00am and 5.00pm (Saturdays, Sundays
and public holidays excepted), and on the Company’s website,
www.allianztechnologytrust.com, from the date of the AGM
Notice until the close of the AGM, and will also be available
for inspection at the venue of the AGM from 15 minutes before
and during the AGM. The New Articles will also be available
for inspection on the National Storage Mechanism located
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism,
from the date of the AGM Notice.
Authority to allot new shares and sell shares from
treasury on a non pre-emptive basis
By law, Directors are not permitted to allot new shares (or
to grant rights over shares) unless authorised to do so by
from shareholders before allotting new shares (or granting
rights over shares) for cash or selling shares out of treasury,
proportion to their holdings.
Resolution 12 seeks to renew the Directors’ authority to
allot shares up to a maximum aggregate nominal amount
of £1,071,891 (42,875,668 Ordinary shares), representing
approximately 10 per cent. of the Company’s total issued
Ordinary share capital as at 12 March 2024, being the latest
practical date prior to publication of this document. The
authority will expire on 24 July 2025 or, if earlier, at the end
of the Annual General Meeting of the Company to be held in
2025, unless previously cancelled or varied by the Company in
general meeting.
Resolution 13, which is being proposed as a Special
Resolution, seeks to renew the Directors’ authority to allot
equity securities, or sell Treasury shares, for cash without
32
ALLIANZ TECHNOLOGY TRUST PLC
rata to their existing holdings, up to a maximum aggregate
nominal amount of £1,071,891 (42,875,668 Ordinary shares),
representing approximately 10 per cent. of the Company’s
total issued Ordinary share capital as at 12 March 2024,
being the latest practicable date prior to publication of
this document. The authority will expire on 24 July 2025 or,
if earlier, at the end of the Annual General Meeting of the
Company to be held in 2025, unless previously cancelled or
varied by the Company in general meeting.
The Directors do not currently intend to allot new shares or sell
shares from treasury 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 premium to NAV per share at which they trade, and only if
they believe it would be in the best interests of the Company’s
existing shareholders to do so. Under no circumstances would
the Directors issue shares or sell Treasury shares at a price
which would result in a dilution of the NAV per Ordinary share.
Authority for the Company to purchase its own shares
A resolution authorising the Directors to make market
purchases of up to 14.99% of the Company’s Ordinary shares
was passed at the AGM of the Company on 26 April 2023.
Resolution 14 will authorise the renewal of such authority
enabling the Company to purchase in the market up to a
maximum of 64,270,626 Ordinary shares (equivalent to
approximately 14.99% of the Company’s issued share capital)
either for cancellation or for holding in treasury and sets
out the minimum and maximum prices at which Ordinary
requirements of the Companies Act 2006 and the Listing Rules.
The authority will expire on 24 July 2025 or, if earlier, at the end
of the Annual General Meeting of the Company to be held in
2025, unless previously cancelled or varied by the Company in
general meeting.
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
to shareholders.
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 per share, this enhances the NAV for the remaining
shareholders. It is therefore intended that purchases will only
be made at prices below the prevailing NAV per share, with
the Company (which are currently £648 million).
Approval is also being sought for two secondary authorities
under resolutions 15 and 16, to allot new shares, to sell shares
held as Treasury shares, disapplying pre-emption rights.
By order of the Board
Kelly Nice
12 March 2024
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DIRECTOR’S REVIEW
Corporate Governance Statement
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
shareholders, communities, 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 level
The Board has considered the Principles and Provisions of
the AIC Code of Corporate Governance (‘AIC Code’). The AIC
Code addresses the Principles and Provisions set out in the
UK Corporate Governance Code (the UK Code), as well as
relevance to the Company.
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 complied with the Principles and Provisions
of the AIC Code during the year ended 31 December 2023.
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
so that the Company has the platform from which it can
achieve its investment objective. The Board’s role is to guide
the overall business strategy to achieve long term success and
the Company’s strategy can be found on page 12. Strategic
issues and all operational matters of a material nature are
considered at its meetings.
Davis was appointed a non-executive Director on 1 January
2024. A formal schedule of matters reserved for decision
by the Board has been adopted. The Board has engaged
depositary, custodial and share registration services.
Contractual arrangements are in place between the Company
been a non-executive Director of the Company for nine
years as at 1 February 2024. To allow for orderly succession
planning she will retire at the AGM in 2025, as Humphrey van
der Klugt will be retiring at the forthcoming AGM. The Board
carefully considers the various 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. 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.
Senior Independent Director
Humphrey van der Klugt is the Senior Independent Director
(‘SID’). He is available to shareholders if they have concerns
which contact through the normal channels of Chairman,
AIFM or Company Secretary have failed to resolve or for which
such contact is inappropriate. Neeta Patel will be appointed
as SID at the conclusion of the forthcoming AGM on 24 April
2024 when Humphrey van der Klugt retires.
Board Culture
The Board adopts a culture where all parties are treated
with respect. The Directors provide mutual support combined
with constructive challenge. The Chairman encourages open
debate to foster a supportive and co-operative approach for
all participants. The Board aims to be open and transparent
with shareholders and their respective stakeholders. At
regular meetings the Board engages with the AIFM and the
Investment Manager to understand its culture and receives
reporting and feedback from other service providers.
Appointments to the Board and Director tenure
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 and experience can
that this provides for a sound base from which the interests of
investors will be served to a high standard.
34
ALLIANZ TECHNOLOGY TRUST PLC
of experience, skills, length of service and backgrounds.
The tenure of each Director, including the Chairman, is not
ordinarily expected to exceed nine years. However, 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 chairman.
of the Board especially in times of market turbulence. All
Directors with the exception of Elisabeth Scott have served for
fewer than nine years. As noted in the Chairman’s Statement
on page 5, Humphrey van der Klugt will retire at the
Company’s forthcoming AGM. In order to aid Board succession
planning, Elisabeth Scott will remain on the Board until
the AGM in 2025. The Directors’ appointments are formally
of joining the Board. Each Director will stand for re-election
annually at the AGM. The biographies of each Director can be
found on pages 24 and 25 and the ordinary resolutions
for their election and re-election on page 75.
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 year under review, Robert Jeens
retired from the Board and there were no new appointments.
January 2024, following a recruitment process run by Fletcher
Jones, an external recruitment agency. He brings global
investment management expertise to the Board.
Meetings
The Board is scheduled to meet at least four times a year
and between these formal meetings there is regular contact
with the Alternative Investment Fund Manager (‘AIFM’),
the Investment Manager, the Company Secretary and the
Company’s Brokers. The Directors are kept fully informed of
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 year to
31 December 2023 is set out on page 25.
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
interest prior to 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 AIFM and the Investment Manager. Board
meetings include a review of investment performance and
associated matters such as 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 2023, an external Board evaluation was conducted by
Stephenson Executive Search Ltd whereby each Director was
independently interviewed on the workings of and individual
contributions to the Board, Committees and the performance
of the Chairman. The results were discussed at the Nomination
Committee held in November 2023 and it was concluded that
the evaluation process had been worthwhile.
Each Director believes that the composition of the Board and
and that the Board, as a whole, and its Committees
and Committees were held in person, with some Directors
attending virtually when necessary. 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 39.
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 issues are examined from
Managers properly to account on their progress on inclusion
and diversity.
The Board recommends the election and re-election of
Directors and supporting biographies are disclosed on pages
24 and 25 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 UK Limited in its capacity
administration and investor relations. Tasks include 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.
Voya Investment Management Co LLC, the Investment
Manager has full discretion (within agreed parameters)
to make investments in accordance with the Company’s
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DIRECTOR’S REVIEW
Company and existing portfolio as a whole, including
the sourcing of new investments, presenting results and
information to shareholders.
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 2023 and up
to the date of approval of this report. The Directors are not
incurred in connection with criminal proceedings in which
the Director is convicted or required to pay any regulatory
information can be found on page 29.
Training and advice
New Directors are provided with an induction programme that
is tailored to the particular requirements of the appointee.
provides an annual seminar for investment trust non-executive
directors with presentation on industry and regulatory
updates. Directors are also encouraged to attend industry
and other seminars. Directors, in the furtherance of their
duties, may also seek independent professional advice at
the expense of the Company. No Director took such advice
access to the advice and services of the Company 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.
Company Directors have a statutory obligation to avoid a
situation in which they (and connected persons) have, or can
in place procedures for managing any actual or potential
interest arose during the year under review.
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 69.
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 Katya
Thomson, that meets at least twice a year and the full Audit &
Risk Committee Report starts on page 46.
of the risk management and internal control systems for
the Company, which are designed to ensure that proper
information on which business decisions are 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 &
Company’s risk management and internal controls under
statements and up to the date of approval of the Annual
controls in the key areas of investment strategy, technology
and liquidity risk and operational risk for extended review.
Emerging risks are also considered by the Board.
The Directors’ Statement of Responsibilities, set out on page
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 AIFM and the Investment Manager have established
internal control frameworks to provide reasonable assurance
behalf of their clients. The AIFM and Investment Manager’s
the internal controls on an ongoing basis.
The AIFM and the Investment Manager provide the Board
with regular reports on all aspects of internal control
risk 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.
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 Manager’s Review.
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ALLIANZ TECHNOLOGY TRUST PLC
Relations with shareholders
During 2023, the Company had regular contact with its
institutional shareholders in person and virtually through
the AIFM and the Investment Manager. The Chairman met
with a number of shareholders following his appointment as
Chairman. 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
activities and performance in the year under review with a
clear link between the relevant sections of the report. The
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
Kelly Nice
12 March 2024
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DIRECTOR’S REVIEW
Report of the Management Engagement
Committee
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 Investment Manager for portfolio
management services and the AIFM for the secretarial,
it provides under a tripartite 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. Neeta Patel
was appointed as Chairman on 29 November 2023. 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 both
the AIFM and the Investment Manager prior to making its
recommendation to the Board on the retention of the AIFM
and the Investment Manager being in the best interests of
the shareholders.
The Committee reviewed the performance fee arrangements
to ensure they were still appropriate for the size of
the Company.
The Committee reviewed the split of responsibilities under
the tripartite agreement, details of which are noted in
the Chairman’s Statement and in the Directors Report on
page 26.
The performance of the AIFM and the Investment 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 Investment Manager on the investment policy and
strategies, asset allocation, stock selection, attributions,
portfolio characteristics and risk. The Board also assesses the
Investment Manager’s performance against the investment
controls set by the Board.
A breakdown of the portfolio begins on page 10.
The AIFM and the Investment Manager
reappointment
The Committee last met in November 2023 and in a
closed session after the presentations from the AIFM and
the Investment Manager, and it was concluded that in its
opinion the continuing appointment of both the AIFM and
the Investment 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 35. The conclusion
from the process was that the Committee was operating
12 March 2024
38
ALLIANZ TECHNOLOGY TRUST PLC
Report of the Nomination Committee
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
considered, 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
other directorships;
– the question of each Director’s independence prior to
publication of the Report and Accounts; and
–
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
During the year the Committee started the process for the
appointment of a new non-executive Director. Fletcher Jones,
an executive search agency, were engaged to assist with the
recruitment process. The Company and the Directors have no
other connection with Fletcher Jones. The Committee provided
their criteria for the appointment. Fletcher Jones introduced a
number of candidates to the Committee who were invited for
interview with all existing Directors. Sam Davis was appointed
to the Board on 1 January 2024.
Performance evaluation
During the year the Committee appointed Stephenson
Executive Search to undertake an externally facilitated review.
The evaluation process adopted required each Director to
participate in individual interviews on the workings of and
individual contributions to the Board, Committees and the
performance of the Chairman. Interviews were also carried
out with the representatives of the AIFM and the portfolio
manager. Questions included a review of the interaction
with the AIFM and the Investment Manager. The Senior
Independent Director led the review of the Chairman. The
results of the performance evaluation were discussed at the
Committee meeting held in November 2023. Any concerns
were discussed openly and addressed with all Directors with
the AIFM present. It was agreed by all participants that the
Company as a whole. Board and diversity is summarised on
page 28.
12 March 2024
39
DIRECTOR’S REVIEW
Report of the Remuneration Committee
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 reviews the
once a year.
Composition of the Committee
The Committee comprises all current Directors and is chaired
by Humphrey van der Klugt. Katya Thomson will be appointed
as Chairman when Humphrey steps down as a Director of
the Company at the conclusion of the forthcoming AGM. The
terms of reference can be found on the Company’s website
www.allianztechnologytrust.com.
Consideration of Directors’ Remuneration
The Committee reviews Directors’ remuneration taking into
consideration a selection of peer comparisons, other market
information and the Trust Associates Fee Review. 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 41.
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 35. The conclusion from the process
12 March 2024
40
ALLIANZ TECHNOLOGY TRUST PLC
Directors’ Remuneration Implementation Report
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 AGM.
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 49.
Remuneration Policy Report
The Remuneration Policy 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 forthcoming AGM. The Remuneration Policy Report follows on page 44 and is available on the Company’s
website www.allianztechnologytrust.com.
Remuneration Committee
A detailed description of the Committee’s role and members can be found on page 40.
Annual General Meeting (‘AGM’) Voting Statement
At the AGM held on 26 April 2023, of the votes cast by proxy for the approval of the Remuneration Implementation Report,
145,402,594 (99.77%) were cast in favour, 341,875 (0.23%) were cast against and 99,996 shares were withheld from the vote. For
the Remuneration Policy Report, which was last proposed as a binding vote at the AGM held on 29 April 2021, of the votes cast,
17,117,110* (99.65%) were cast in favour, 1,225 (0.01%) were cast as discretionary, 59,259 (0.34%) were cast against and 32,790
shares were withheld.
* A share split of 10 for 1 was undertaken in 2021.
Annual Statement
The Chairman of the Remuneration Committee reports that the Directors’ remuneration will be increased as of 1 January 2024 as
set out on page 42.
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:
2023
£
2022*
£
2021
£
2020
£
2019
£
Total Remuneration 207,114 203,064 149,500 128,250 132,167
Total Dividends, Share Buy-backs and Distributions 40,373,000 39,263,000 16,772,000 - -
* Number of permanent Directors increased from 4 to 5.
Letters of Appointment
It is the Board’s policy that Directors do not have service contracts. Instead each Director has received a letter setting out the
terms of their appointment under which they provide their services to the Company. In accordance with the Articles any new
governance will stand for re-election by shareholders annually. A Director may resign by notice in writing to the Board at any time
the Directors.
41
DIRECTOR’S REVIEW
Your Company’s performance
The regulations require a line graph to be included in the Directors’ Remuneration Report showing total shareholder return
value performance against its Benchmark index of the Dow Jones World Technology Index (sterling adjusted, total return)
and is rebased to 100. An explanation of the Company’s performance is given in the Chairman’s Statement and Investment
Manager’s Review.
Directors’ fees
All the Directors, with the exception of Robert Jeens who retired on 26 April 2023 and Sam Davis who was appointed on 1
January 2024, served throughout the year and received the fees set out below.
In the year under review to 31 December 2023 the Directors’ fees were paid at the following rates: £33,000 per annum for each
Director with the Chairman of the Board receiving an extra £20,000 per annum and the Chairman of the Audit & Risk Committee
an extra £8,500 and the Senior Independent Director an extra £1,500 per annum.
A review of Directors’ fees is conducted annually by the Remuneration Committee, taking into consideration the increasing
demands and accountability of the corporate governance and regulatory environment, as well as the fees of other comparable
investment companies. No external remuneration consultant was used, however the Committee reviewed the Trust Associates
Investment Company Non-Executive Directors’ Fee Review 2023 as well as recommendations from Stephenson Executive Search
during the Board performance evaluation. Having considered carefully the information provided and to remain competitive for
future recruitment, the following increases were agreed. The Directors’ fees will be increased as of 1 January 2024 to £35,000 per
annum. The Chairman of the Board will receive £56,000 per annum. The Chairman of the Audit & Risk Committee will receive
£45,500 and the Senior Independent Director will receive £37,000 per annum.
In accordance with the Company’s Articles of Association, the aggregate maximum limit for fees that may be paid to the
Directors per annum is £250,000. Updated Articles of Association are to be put to shareholders at the forthcoming meeting which
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 Director is entitled to receive share
remuneration stated above.
Allianz Technology Trust Net
Asset Value Total Return
Allianz Technology Trust
Ordinary Share Price 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 2013.
800
700
600
500
400
300
200
100
Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23
%
42
ALLIANZ TECHNOLOGY TRUST PLC
Directors’ Remuneration (audited information)
The Directors who served in the year received the following emoluments in the form of fees:
Appointed
Variable
Fees
2023
£
Total
Fees
2023
£
Variable
Fees
2022
£
Total
Fees
2022
£
Robert Jeens 1 August 2013 (retired 26 April 2023) - 18,550 - 51,000
Humphrey van der Klugt 1 July 2015 - 34,500 - 41,500
Elisabeth Scott 1 February 2015 - 33,000 - 32,000
Neeta Patel 1 September 2019 - 33,000 - 32,000
1 December 2022 (appointed Chairman 26 April 2023) - 46,564 - 32,000
Katya Thomson 18 July 2022 (appointed Audit & Risk Committee Chairman 1 January 2023) - 41,500 - 14,564
- 207,114 - 203,064
No payments of Directors’ fees were made to third parties. The fees are pro-rata.
2023
£
% change
from
2022 to
2023
2022
£
% change
from
2021 to
2022
2021
£
% change
from
2020 to
2021
2020
£
% change
from
2019 to
2020
2019
£
Chairman 53,000 3 51,000 6 48,000 18 40,500 4 39,000
Audit & Risk Chairman 41,500 N/A
1
41,500 6 39,000 15 33,750 4 32,500
SID 34,500 N/A
1
Independent Director 33,000 3 32,000 6 30,000 11 27,000 4 26,000
1
Until 31 December 2022, Humphrey van der Klugt was Chairman of the Audit & Risk Committee and SID under a combined fee. Katya
Thomson was appointed Chairman of the Audit & Risk Committee with effect from 1 January 2023.
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 the table below.
Ordinary shares of 2.5p each
Appointed
31 December
2023
31 December
2022
1 December 2021 19,250 10,800
Humphrey van der Klugt 1 July 2015 70,000 70,000
Elisabeth Scott 1 February 2015 16,500 16,500
Neeta Patel 1 September 2019 9,852 7,426
Katya Thomson 18 July 2022 25,000 8,800
Sam Davis 1 January 2024 - -
Since the year end, Neeta Patel has increased her holding to 14,989 Ordinary shares, Sam Davis has purchased 3,349 Ordinary shares and
Katya Thomson has increased her holding to 30,000 Ordinary shares. There have been no further changes to any of the Directors’ holdings
from the year end to the date of this report.
12 March 2024
43
DIRECTOR’S REVIEW
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 be proposed as an
Ordinary Resolution at the forthcoming AGM.
Directors’ Remuneration Policy
The Company’s Remuneration Policy provides that fees
of high calibre to be recruited.
Directors are remunerated solely in the form of fees payable
monthly or quarterly in arrears, paid to the Director personally
schemes, share option schemes or pension arrangements
performance, either individually or collectively. There are no
payments of recruitment bonuses.
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
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
increasing demands and accountability of the corporate
governance and regulatory environment, as well as the fees of
other comparable companies.
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 policy will
subsequent years.
12 March 2024
44
ALLIANZ TECHNOLOGY TRUST PLC
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual
with applicable law and regulations. Company law requires
year. Under that law the Directors have elected to prepare
Generally Accepted Accounting Practice (United Kingdom
statements are required by law to give a true and fair view
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
–
unless it is inappropriate to presume that the Company will
continue in business.
with the above requirements.
The Directors are responsible for keeping adequate
accounting records that disclose with reasonable accuracy
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
published on www.allianztechnologytrust.com, which is a
website maintained by the Alternative Investment Fund
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
statements since they were initially presented on the website.
Visitors to the website need to be aware that legislation in the
United Kingdom governing the preparation and dissemination
other jurisdictions.
Neither an audit nor a review provides assurance on the
maintenance and integrity of the website, including controls
used to achieve this, and in particular whether any changes
published. These matters are the responsibility of the Directors
but no control procedures can provide absolute assurance in
this area.
(a) the Financial Statements, prepared in accordance with
applicable accounting standards, give a true and fair view
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.
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
Chairman
12 March 2024
45
DIRECTOR’S REVIEW
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 2023. During the year under review, Mazars LLP were re-appointed as auditor at the Company’s Annual General
Meeting in 2023. Their independent report can be found on page 49.
Responsibility
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 throughout the year were myself as Chairman, Elisabeth Scott, Neeta Patel, and Humphrey van
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 24 and 25. The Board reviews the composition of the Committee and it considers that, collectively, its members
The Committee meets at least twice per year. The attendance of the Committee members is shown on page 25. The
Manager’s compliance function to attend and report to the Committee on relevant matters. As part of the year end process I, as
Chairman of the Committee, attended additional meetings with representatives of the AIFM 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 the Chairman of the Committee reports to the Board on the main
items discussed at the meeting.
Role and responsibilities of the Audit & Risk Committee
available on the Company’s website www.allianztechnologytrust.com.
The principal activities carried out during the year were:
– Financial reporting
and provides the information necessary for shareholders to assess the Company’s position, performance, business model
and strategy.
– External audit
– Risk and internal control
controls and risk management processes.
– External auditor
this report.
– FRC Review
highest quality category).
Audit & Risk Committee Report
46
ALLIANZ TECHNOLOGY TRUST PLC
Internal Audit and Internal Controls
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 the AIFM, Investment Manager and by other providers of administrative and
custodian services to AllianzGI UK or directly to the Company were reviewed during the year. A NAV pricing issue arose during
the year from an external provider of fund administration services. The AIFM responded with a due diligence exercise, resulting in
enhanced controls and procedures. The Committee has received regular updates from AllianzGI UK.
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 and reviewing the
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.
The Annual Report and Financial Statements are the responsibility of the Board and the Statement of Directors’ Responsibilities
is on page 45. The Audit & Risk Committee advises the Board on the form and content of the Annual Report and Financial
The Committee is responsible for agreeing a suitable Audit Plan for the year-end audit and production of the Annual Financial
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 no unquoted
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 57) 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 UK
and Voya 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 viability of the
47
DIRECTOR’S REVIEW
Annual Financial Report
The Committee and then the whole Board reviewed the entire Annual Financial Report and noted all the supporting information
activities and performance in the year, with a clear link between the relevant sections of the report. The Directors were then able
necessary for shareholders to assess the Company’s position, performance, business model and strategy.
The Committee is responsible for reviewing the terms of appointment of the Auditor and for monitoring the audit process
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:
–
– the audit processes and evidence of partner oversight
– audit communication including details of planning
– information on relevant accounting and regulatory developments, and recommendations on corporate reporting; and
– the Committee also considered the feedback from the FRC’s Audit Quality Review team noting the rating was “Good” (no areas
Auditor tenure
There are no contractual obligations which restrict the Committee’s choice of auditor. This is Mazars LLP’s second year as the
Company’s independent auditor with Nargis Yunis appointed as audit partner. Following professional guidelines, Nargis can
external audit process.
Auditor independence
The Committee has been informed by Mazars LLP that during the period under review, there was a breach by Mazars LLP
of paragraph 2.3a of the FRC Ethical Standard as a Mazars LLP partner working in a non-audit capacity held shares in
the Company. Following detailed discussions with Mazars LLP and receipt of reassurance with respect to ongoing controls’
enhancements, the Committee has concluded that this was a technical breach and does not impact the Auditor independence.
Mazars LLP 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 AIFM regarding
Mazars LLP will be proposed at the forthcoming AGM to be re-appointed as auditors of the Company for the year ending 31
December 2024.
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 35.
experience and skills.
12 March 2024
48
ALLIANZ TECHNOLOGY TRUST PLC
Independent Auditor’s Report to the Members
of Allianz Technology Trust PLC
Opinion
Technology Trust PLC (the ‘Company’) for the year ended 31
December 2023 which comprise the Income Statement, the
Balance Sheet, the Statement of Changes in Equity, and notes
policy information.
applied in their preparation is applicable law and United
Kingdom Accounting Standards, including FRS 102 “The
Financial Reporting Standard applicable in the UK and
Republic of Ireland” (United Kingdom Generally Accepted
Accounting Practice).
– give a true and fair view of the state of the Company’s
then ended;
– have been properly prepared in accordance 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 responsibilities under those standards are further
described in the “Auditor’s responsibilities for the audit of
independent of the Company in accordance with the ethical
statements in the UK, including the FRC’s Ethical Standard as
applied to listed entities and public interest entities, and we
with these requirements. We believe that the audit evidence
basis for our opinion.
Conclusions relating to going concern
the Directors’ use of the going concern basis of accounting in
Our audit procedures to evaluate the Directors’ assessment of
the Company's ability to continue to adopt the going concern
basis of accounting included but were not limited to:
Undertaking an initial assessment at the planning stage
of the audit to identify events or conditions that may cast
going concern;
– Obtaining an understanding of the relevant controls relating
to the Directors’ going concern assessment;
– making enquiries of the Directors to understand the period
of assessment considered by the Directors, assessing and
challenging the appropriateness of the Directors’ key
assumptions in their income and expense projections
and implication of those when assessing severe but
plausible scenarios;
– assessing the liquidity of the portfolio through reviewing
Management assessment of how quickly the portfolio could
be liquidated if required;
– assessing the Company’s performance to date;
– evaluating the appropriateness of the Directors’ disclosures
viability statement.
any material uncertainties relating to events or conditions that,
Company’s ability to continue as a going concern for a period
are authorised for issue.
Our responsibilities and the responsibilities of the Directors
with respect to going concern are described in the relevant
sections of this report.
In relation to Allianz Technology Trust PLC’s reporting on how
it has applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to the
the Director’s considered it appropriate to adopt the going
concern basis of accounting.
Key audit matters
Key audit matters are those matters that, in our professional
the engagement team. These matters were addressed in the
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
49
FINANCIAL STATEMENTS
Financial Statements
We summarise below the key audit matter in forming our opinion above, together with an overview of the principal audit
procedures performed to address this matter and our key observations arising from those procedures.
Completion Report.
Key Audit Matter How our scope addressed this matter
Valuation, existence and ownership of the investment
portfolio
Investments held as of 31 December 2023 were valued at
£1.3bn (2022: £898.9m), these are measured in accordance
United Kingdom Accounting Standards, and the Statement
of Recommended Practice issued by the Association of
Investment Companies. The investment portfolio solely
comprises level one investments.
Investments make up 98% (2022: 96%) of net assets by
value and are considered to be the key driver for the
Company’s performance. The investments are made
are measured initially and subsequently at fair value which
is based on their quoted bid prices at the close of business
on the year-end date. There is a risk that investment
recorded might not exist or might not be owned by the
Company. Although the investments are valued at quoted
bid prices, there is a risk that errors in valuation can have a
of investments as a key audit matter as it had the greatest
of resources.
Our audit procedures included, but were not limited to:
– understanding Management’s process to record and
value investments through discussions with Management
and examination of control reports for the third-party
service organisation;
– for all investments in the portfolio, agreeing investment
holdings to HSBC Bank Plc’s (“Custodian / Depositary”),
order to obtain comfort over existence and ownership;
– for all investments in the portfolio, independently
comparing the market prices to a reputable third
party pricing source and recalculating the investment
valuations as at the year-end;
– for all investments in the portfolio, assessing the
frequency of trading to ensuring appropriateness of fair
–
statements and ensure that the methodology applied
is in accordance with United Kingdom Accounting
Standards and the Statement of Recommended Practice
issued by the Association of Investment Companies.
Our observations
We have no matters to communicate with regards to the
valuation, existence and ownership of the investment
portfolio held as at 31 December 2023
Our application of materiality and an overview of the scope of our audit
These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and
Overall materiality
£13,187,750
How we determined it
1% of net assets
Rationale for
benchmark applied
it is considered to be the main focus of the shareholders.
Whilst valuation processes for these investments are not considered to be complex, there is a
risk that errors in valuation could cause a material misstatement. 1% has been chosen as it is a
generally accepted auditing practice for investment trust audits and the Company is a public
interest entity.
50
ALLIANZ TECHNOLOGY TRUST PLC
Performance
materiality
Performance materiality is set to reduce to an appropriately low level the probability that the
On the basis of our risk assessments and together with our assessment of the overall
control environment, we set performance materiality at £7,912,650 which represents 60% of
overall materiality.
Reporting threshold
our audit above £395,633 as well as misstatements below that amount that, in our view,
warranted reporting for qualitative reasons.
or error, and then designed and performed audit procedures responsive to those risks. In particular, we looked at where the
statements as a whole. We used the outputs of our risk assessment, our understanding of the Company, its environment, controls,
statement line items.
Other information
not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
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.
Opinions on other matters prescribed by the Companies Act 2006
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:
–
legal requirements;
–
share capital structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Guidance and Transparency Rules
prepared in accordance with applicable legal requirements; and
– 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.
51
FINANCIAL STATEMENTS
Matters on which we are required to report by
exception
In light of the knowledge and understanding of the Company
and their environment obtained in the course of the audit, we
– strategic report or the Directors’ report; or
– information about internal control and risk management
about share capital structures, given in compliance with
rules 7.2.5 and 7.2.6 of the FCA Rules.
– 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 by the
Company, or returns adequate for our audit have not been
received from branches not visited by us; or
–
Directors’ remuneration report to be audited are not in
agreement with the accounting records and returns; or
–
law are not made; or
– 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
Based on the work undertaken as part of our audit, we
have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with
the audit:
– Directors’ statement with regards the appropriateness of
adopting the going concern basis of accounting and any
– Directors’ explanation as to its assessment of the entity’s
prospects, the period this assessment covers and why the
period is appropriate, set out on page 14;
– Directors’ statement on fair, balanced and understandable,
set out on page 45;
–
assessment of the emerging and principal risks, set out on
page 14;
–
control systems, set out on page 14; and;
– The section describing the work of the audit committee, set
out on page 46.
Responsibilities of Directors
As explained more fully in the Directors’ responsibilities
statement set out on page 45, the Directors are responsible
internal control as the Directors determine is necessary to
from material misstatement, whether due to fraud or error.
responsible for assessing the Company’s ability to continue
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
Our objectives are to obtain reasonable assurance about
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. Misstatements can arise from fraud or
error and are considered material if, individually or in the
the economic decisions of users taken on the basis of these
The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
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.
Based on our understanding of the Company and their
industry, we considered that non-compliance with the
Act/GDPR, Money Laundering Regulations 2007 and Money
Laundering (Amendment) regulations 2012, The Alternative
Investment Fund Managers Directive (AIFMD), Financial
services and markets act 2000.
To help us identify instances of non-compliance with these
laws and regulations, and in identifying and assessing the risks
of material misstatement in respect to non-compliance, our
procedures included, but were not limited to:
– Gaining an understanding of the legal and regulatory
framework applicable to the Company, the industry in
which they operate, and the structure of the Company,
and considering the risk of acts by the Company which
were contrary to the applicable laws and regulations,
including fraud;
52
ALLIANZ TECHNOLOGY TRUST PLC
– Inquiring of the Directors, management and, where
appropriate, those charged with governance, as to whether
the Company is in compliance with laws and regulations,
and discussing their policies and procedures regarding
compliance with laws and regulations;
– Reviewing any correspondence with relevant licensing or
regulatory authorities including the FCA;
– Reviewing minutes of Directors’ meetings in the year; and
– Discussing amongst the engagement team the laws
and regulations listed above, and remaining alert to any
indications of non-compliance.
We also considered those laws and regulations that have a
such as the Listing Rules, HMRC Investment Trust rules, the
UK Corporate Governance Code, the AIC code of Corporate
Governance, the Companies Act 2006 and UK tax legislation.
In addition, we evaluated the Directors’ and management’s
incentives and opportunities for fraudulent manipulation of
override of controls, and determined that the principal risks
related to posting manual journal entries to manipulate
estimates, in particular in relation to the investment portfolio,
revenue recognition (which we pinpointed to the accuracy,
transactions).
Our procedures in relation to fraud included but were not
limited to:
– Making enquiries of the Directors and management on
whether they had knowledge of any actual, suspected or
alleged fraud;
– Gaining an understanding of the internal controls
established to mitigate risks related to fraud;
– Discussing amongst the engagement team the risks of fraud;
– Addressing the risks of fraud through management override
of controls by performing journal entry testing;
The primary responsibility for the prevention and detection of
irregularities, including fraud, rests with both those charged
with governance and management. As with any audit,
there remained a risk of non-detection of irregularities, as
these may involve collusion, forgery, intentional omissions,
misrepresentations or the override of internal controls.
on our audit are discussed in the “Key audit matters” section of
this report.
A further description of our responsibilities is available on
the Financial Reporting Council’s website at www.frc.org.uk/
auditorsresponsibilities. This description forms part of our
auditor’s report.
Other matters which we are required to address
Following the recommendation of the audit committee, we
were appointed by the Audit Committee on 13 July 2022
December 2022 and reappointed by the Members at the
The period of total uninterrupted engagement is two
years, covering the years ended 31 December 2022 to 31
December 2023.
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.
During the period under review, there was a breach by Mazars
LLP of paragraph 2.3a of the FRC Ethical Standard as a
Mazars LLP partner working in a non-audit capacity held
shares in Allianz Technology Trust plc. Our assessment, which
has been shared and agreed with the Directors, is that it was a
technical breach and does not impact our independence since
the respective partner is not considered a covered person as
disposed of immediately when it was discovered. We therefore
concluded that we remain independent of the Company in
conducting our audit. We continue to monitor and reassess
controls in place to prevent such breaches happening in
the future.
Our audit opinion is consistent with our additional report to the
audit committee.
Use of the audit 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.
12 March 2024
53
FINANCIAL STATEMENTS
Income Statement
for the year ended 31 December 2023
Notes
2023
Revenue
£’000s
2023
Capital
£’000s
2023
Total Return
£’000s
2022
Revenue
£’000s
2022
Capital
£’000s
2022
Total Return
£’000s
Gains (losses) on investments held at fair value
7 - 424,802 424,802 - (501,617) (501,617)
Exchange (losses) gains on currency balances (46) (1,122) (1,168) 227 9,307 9,534
Income 1 5,372 - 5,372 6,683 - 6,683
Investment management fee and performance fee 2 (6,866) - (6,866) (6,795) - (6,795)
Administration expenses 3 (1,003) - (1,003) (1,098) - (1,098)
(2,543) 423,680 421,137 (983) (492,310) (493,293)
Taxation 4 (937) - (937) (868) - (868)
Ordinary shareholders
(3,480) 423,680 420,200 (1,851) (492,310) (494,161)
Earnings (loss) per Ordinary share (basic and diluted) 6 (0.88p) 106.71p 105.83p (0.45p) (118.62p) (119.07p)
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.
Income. The Company does not have any other Comprehensive Income.
The notes on pages 57 to 68 form an integral part of these Financial Statements.
54
ALLIANZ TECHNOLOGY TRUST PLC
Notes
2023
£’000s
2022
£’000s
Non current assets
7 1,286,786 898,937
Current assets
Other receivables 9 690 838
Cash and cash equivalents 9 34,292 41,695
34,982 42,533
Current liabilities
Other payables 9 (2,993) (2,522)
Net current assets 31,989 40,011
Total net assets 1,318,775 938,948
Capital and reserves
Called up share capital 10 10,719 10,719
Share premium account 11 334,191 334,191
Capital redemption reserve 11 1,021 1,021
Capital reserve 11 1,010,278 626,971
Revenue reserve 11 (37,434) (33,954)
Shareholders’ funds - equity 12 1,318,775 938,948
Net asset value per Ordinary share 12 338.2p 231.0p
the Board of Directors on 12 March 2024 and signed on its behalf by:
Chairman
12 March 2024
Balance Sheet
at 31 December 2023
The notes on pages 57 to 68 form an integral part of these Financial Statements.
55
FINANCIAL STATEMENTS
Statement of Changes in Equity
for the year ended 31 December 2023
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 2022 10,719 334,191 1,021 1,158,544 (32,103) 1,472,372
Revenue loss - - - - (1,851) (1,851)
Shares repurchased into treasury during the year - - - (39,263) - (39,263)
Capital loss - - - (492,310) - (492,310)
Net assets at 31 December 2022 10,719 334,191 1,021 626,971 (33,954) 938,948
Net assets at 1 January 2023 10,719 334,191 1,021 626,971 (33,954) 938,948
Revenue loss - - - - (3,480) (3,480)
Shares repurchased into treasury during the year - - - (40,373) - (40,373)
- - - 423,680 - 423,680
Net assets at 31 December 2023 10,719 334,191 1,021 1,010,278 (37,434) 1,318,775
The notes on pages 57 to 68 form an integral part of these Financial Statements.
56
ALLIANZ TECHNOLOGY TRUST PLC
Notes to the Financial Statements
for the year ended 31 December 2023
– have been prepared on the
basis of the accounting policies set out below.
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 July 2022.
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 within FRS 102 section 7.1A have been
met to qualify for the exemption to prepare a Cash Flow
Statement. Therefore the Cash Flow Statement has not
The accounting policies adopted in preparing the current
previous years.
The Directors believe that it is appropriate to continue to
statements as the assets of the Company consist mainly
exceed liabilities. The Directors have considered the
Company’s investment objective and capital structure.
The Directors have also considered the risks and
consequences of the geopolitical and macro-economic
events on the operational aspects of the Company and
resources to continue in operational existence and meet
its objectives for twelve months after the approval of the
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.
expenses – The investment management fee is calculated
and is charged in full to 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
accruals basis.
4 Valuation – The Company’s business is investing in
assets are publicly traded equity investments which are
FRS 102 Section 11: ‘Basic Financial Instruments’ and
Section 12: ‘Other Financial Instruments’.
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
are recognised on the trade date, being the date which the
Company commits to purchase or sell the assets.
5 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
balance sheet date, where transactions or events that
result in an obligation to pay more tax or a right to pay
Summary of Accounting Policies
for the year ended 31 December 2023
57
FINANCIAL STATEMENTS
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 timing
6 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
the primary economic environment 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.
7 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.
– Proceeds received
from the sale of shares held in treasury are treated as
Companies Act 2006. Proceeds equivalent to the original
cost, calculated by applying a weighted average price,
available for distribution; proceeds in excess of the original
cost are credited to the Share Premium Account.
9 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.
– In
the application of the Company’s accounting policies,
which are described above, the Directors are required
to make judgements, 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.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
current and future periods.
or assumptions made during the year. The investment
portfolio currently consists of listed investments and
valuing those securities.
– The Company has one operating
segment, being that of an investment trust investing
principally in equity securities on a worldwide basis, with
the aim of achieving long term capital growth.
58
ALLIANZ TECHNOLOGY TRUST PLC
1. Income
2023
£’000s
2022
£’000s
Income from investments*
Equity income from UK investments - 293
Equity income from overseas investments 4,865 5,886
4,865 6,179
Other income
Deposit interest 507 504
507 504
Total income 5,372 6,683
* All equity income is derived from listed investments.
2. Investment Management Fee
2023
Revenue
£’000s
2023
Capital
£’000s
2023
Total
£’000s
2022
Revenue
£’000s
2022
Capital
£’000s
2022
Total
£’000s
Investment management fee 6,866 - 6,866 6,795 - 6,795
Allianz Global Investors UK Ltd is appointed as AIFM, providing company secretarial, administrative and sales and marketing
services, and performance management services are provided by Voya Investment Management Co LLC. The management
agreement provides for a base fee of 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 £400m and £1 billion, and 0.5% for any market capitalisation over £1 billion.
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 January 2022, the performance fee entitlement is
equal to 10.0% (1 December 2013 to 31 December 2021: 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). 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 than the
point, 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
1.75% of the average daily NAV of the Company over the period (2022: 1.75% of year-end NAV). 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 to be
The performance fee accrued for as at 31 December 2023 was £nil (31 December 2022: £nil).
The Investment Manager’s fee is charged 100% to Revenue and the performance fee is charged 100% to Capital.
59
FINANCIAL STATEMENTS
3. Administration expenses
2023
£’000s
2022
£’000s
Auditors’ remuneration
Fee payable to the Company's auditor for the audit of the Company's annual accounts 48 47
VAT on auditor's remuneration 10 10
58 57
Directors' fees
1
207 203
Employer national insurance contributions 23 16
Marketing costs
2
245 295
Depositary fees 58 59
Custodian fees 55 65
Registrars' fees 136 130
Professional & advisory fees 116 98
Stock exchange fees 52 59
Legal fees 4 25
Printing and postage 48 49
FCA fees 37 36
AIC fees 21 21
Other administrative expenses 61 106
VAT recovered (118) (121)
1,003 1,098
The above expenses include value added tax where applicable.
1
Directors’ fees are set out in the Directors’ Remuneration Implementation Report on page 41.
2
The marketing budget takes into account both the marketing activity carried out by the AIFM and other third party service providers.
60
ALLIANZ TECHNOLOGY TRUST PLC
4. Taxation
2023
Revenue
£’000s
2023
Capital
£’000s
2023
Total
£’000s
2022
Revenue
£’000s
2022
Capital
£’000s
2022
Total
£’000s
Overseas taxation 937 - 937 868 - 868
Total tax 937 - 937 868 - 868
Reconciliation of tax charge
(2,543) 423,680 421,137 (983) (492,310) (493,293)
(598) 99,649 99,051 (187) (93,539) (93,726)
Reconciling factors
Non taxable income (1,135) - (1,135) (1,186) - (1,186)
Non taxable capital (gains) losses - (99,913) (99,913) - 95,307 95,307
Gains (losses) on foreign currencies - 264 264 - (1,768) (1,768)
Excess of allowable expenses over taxable income 1,733 - 1,733 1,373 - 1,373
937 - 937 868 - 868
Total tax 937 - 937 868 - 868
The Company’s taxable income is exceeded by its tax allowable expenses. As at 31st December 2023, the Company had
accumulated surplus expenses of £121.5m (2022: £89.4m).
At 31 December 2023 the Company has not recognised a deferred tax asset of £30.4m (2022: £22.4m) in respect of accumulated
expenses based on a prospective corporation tax rate of 25% (2022: 25%). The increase in the standard rate of corporation tax
this asset.
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).
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
61
FINANCIAL STATEMENTS
6. Earnings per Ordinary share
2023
Revenue
£’000s
2023
Capital
£’000s
2023
Total
£’000s
2022
Revenue
£’000s
2022
Capital
£’000s
2022
Total
£’000s
Earnings (loss) after taxation attributable to
Ordinary shareholders
(3,480) 423,680 420,200 (1,851) (492,310) (494,161)
Earnings (loss) per Ordinary share (0.88p) 106.71p 105.83p (0.45p) (118.62p) (119.07p)
2023
No. of Shares
2022
No. of Shares
Weighted average number of Ordinary shares in issue for the earnings per Ordinary share calculations above 397,030,186 415,019,252
Basic and diluted earnings per share are the same as the Company has no dilutive instruments.
Gains (losses) on investments
2023
£’000s
2022
£’000s
Opening book cost 920,805 1,020,260
Opening investments holding (losses) gains (21,868) 407,876
Opening market value 898,937 1,428,136
Additions at cost 987,092 944,166
Disposals proceeds received (1,024,045) (971,748)
Gains (losses) on investments 424,802 (501,617)
Market value of investments held at 31 December 1,286,786 898,937
Closing book cost 932,068 920,805
Closing investments holding gains (losses) 354,718 (21,868)
Closing market value 1,286,786 898,937
Gains (losses) on investments 424,802 (501,617)
The Company received £1,024.0m (2022: £971.7m) from investments sold in the year. The book cost of these investments when
they were purchased was £975.8m (2022: £1,043.6m).
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 £193,000 (2022: £207,000) and transaction costs on sales
amounted to £235,000 (2022: £419,000).
8. Investments in subsidiaries or other companies
As at 31 December 2023 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.
62
ALLIANZ TECHNOLOGY TRUST PLC
9. Other receivables, cash and cash equivalents and other payables
2023
£’000s
2022
£’000s
Other receivables
Accrued income 621 787
Other receivables 69 51
690 838
Cash and cash equivalents
Cash at bank 34,292 41,695
Other payables
Other payables 2,993 2,522
2,993 2,522
The carrying amount of other receivables, cash and cash equivalents and other payables, each approximate their fair value.
10. Called up Share Capital
2023
£’000s
2022
£’000s
Allotted and fully paid
428,756,680 Ordinary shares of 2.5p (2022: 428,756,680)* 10,719 10,719
* Inclusive of 38,799,670 (2022: 22,268,962) 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 no Ordinary shares (2022: £nil) were issued from the block listing facility and 16,530,708 Ordinary shares were
repurchased to be held in treasury (2022: 16,703,872). During the year no Ordinary shares were reissued from treasury (2022: £nil.
Proceeds from share issuances were £nil (2022: £nil) net of issuance costs of £nil (2022: £nil). Since the year end a further 3,271,401
shares have been bought back up to and including 12 March 2024.
2023
Number
2023
£’000s
2022
Number
2022
£’000s
Allotted 2.5p Ordinary shares
Brought forward 406,487,718 10,162 423,191,590 10,580
Shares repurchased to treasury (16,530,708) (413) (16,703,872) (418)
Carried forward 389,957,010 9,749 406,487,718 10,162
2023
Number
2022
Number
Treasury shares:
Brought forward 22,268,962 5,565,090
Shares repurchased to treasury 16,530,708 16,703,872
Carried forward 38,799,670 22,268,962
Total Ordinary shares in issue and in treasury at the end of the year 428,756,680 428,756,680
63
FINANCIAL STATEMENTS
11. Reserves
Capital Reserve
Share
Premium
Account
£’000s
Capital
Redemption
Reserve
£’000s
Gains (losses)
on sales of
investments
£’000s
Investment
holding
gains (losses)
£’000s
Revenue
Reserve
£’000s
Balance at 31 December 2022 334,191 1,021 647,662 (20,691) (33,954)
Gains on sales of investments - - 401,342 - -
Foreign currency losses - - (1,122) - -
Net movement in investment holding gains - - - 23,460 -
Transfer on disposal of investments - - (353,127) 353,127 -
Shares repurchased to treasury during the year - - (40,373) - -
Retained loss for the year - - - - (3,480)
Balance at 31 December 2023 334,191 1,021 654,382 355,896 (37,434)
The Institute of Chartered Accountants in England and Wales in its technical guidance TECH 02/17 states that investment holding
gains arising out of a change in fair value of assets may be recognised as gains on sales of investments 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.
total amount received is allocated here. For the sale of shares held in treasury any excess in proceeds above the original cost is
credited to the Share Premium Account. 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.
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.
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
2023 2022
Ordinary shares of 2.5p 338.2p 231.0p
NAV attributable
2023
£’000s
2022
£’000s
Ordinary shares of 2.5p 1,318,775 938,948
The Net Asset Value per share is based on 389,957,010 Ordinary shares in issue at the year end (2022: 406,487,718
Ordinary shares).
64
ALLIANZ TECHNOLOGY TRUST PLC
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.
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
portfolio is shown on pages 10 and 11.
Market price risk sensitivity
The value of the Company’s listed equities, which were exposed to market price risk as at 31 December 2023 and 31 December
2022 was as follows:
2023
£’000s
2022
£’000s
1,286,786 898,937
The following illustrates the sensitivity of the net return and the net assets to an increase or decrease of 20% (2022: 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.
2023
20% increase
in fair value
£’000s
2023
20% decrease
in fair value
£’000s
2022
20% increase
in fair value
£’000s
2022
20% decrease
in fair value
£’000s
Revenue earnings
Investment management fees (1,287) 1,287 (899) 1,079
Capital earnings
Gains (losses) on investments at fair value 257,357 (257,357) 179,787 (179,787)
Change in net return 256,070 (256,070) 178,888 (178,708)
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 objective and seek to
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 (2022: £nil).
(ii) Foreign currency risk
exchange rates.
65
FINANCIAL STATEMENTS
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.
and its receipt.
The table below summarises in sterling terms the foreign currency risk exposure:
2023
Investments
£’000s
2023
Other net assets
(liabilities)
£’000s
2023
Total currency
exposure
£’000s
2022
Investments
£’000s
2022
Other net assets
(liabilities)
£’000s
2022
Total currency
exposure
£’000s
Sterling - (2,812) (2,812) 7,838 (1,766) 6,072
US Dollar 1,254,931 34,211 1,289,142 871,080 41,281 912,361
Other currency exposure 31,855 590 32,445 20,019 496 20,515
Total 1,286,786 31,989 1,318,775 898,937 40,011 938,948
Management of foreign currency risk
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.
2023
20% decrease in
sterling against
foreign currencies
£’000s
2023
20% increase in
sterling against
foreign currencies
£’000s
2022
20% decrease in
sterling against
foreign currencies
£’000s
2022
20% increase in
sterling against
foreign currencies
£’000s
US Dollar 322,286 (214,857) 228,090 (152,060)
Other currency exposure 8,111 (5,407) 5,129 (3,419)
Change in net return and net assets 330,397 (220,264) 233,219 (155,479)
(iii) Interest rate risk
Interest rate exposure
changes in interest rates.
2023
Fixed
rate
interest
£’000s
2023
Floating
rate
interest
£’000s
2023
Nil
interest
£’000s
2023
Total
£’000s
2022
Fixed
rate
interest
£’000s
2022
Floating
rate
interest
£’000s
2022
Nil
interest
£’000s
2022
Total
£’000s
Financial assets
- 34,292 1,286,786 1,321,078 - 41,695 898,937 940,632
Financial liabilities
- - - - - - - -
- 34,292 1,286,786 1,321,078 - 41,695 898,937 940,632
Short-term receivables (payables)
(2,303) (1,684)
Net assets per balance sheet
1,318,775 938,948
As at 31 December 2023, the interest rates received on cash balances or paid on bank overdrafts, was 2.75% and 6.25% per
annum respectively (2022: 1.9% and 2022: 4.5% per annum).
66
ALLIANZ TECHNOLOGY TRUST PLC
Management of interest rate risk
balances for other than brief periods of time and therefore there is minimal exposure to interest rate risk.
(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.
2023
Three
months
or less
£’000s
Between
three months
and one year
£’000s
Between
one and
£’000s
More than
£’000s
Total
£’000s
Other payables - within one year
Other payables 2,993 - - - 2,993
2,993 - - - 2,993
2022
Three
months
or less
£’000s
Between
three months
and one year
£’000s
Between
one and
£’000s
More than
£’000s
Total
£’000s
Other payables - within one year
Other payables 2,522 - - - 2,522
2,522 - - - 2,522
Management of liquidity risk
the 31 December 2023, the Company had no committed borrowing facility (2022: £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
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 credit risk exposure of the Company as at 31 December:
2023
£’000s
2022
£’000s
Other receivables:
Accrued income 621 787
Other receivables 69 51
Cash and cash equivalents 34,292 41,695
34,982 42,533
67
FINANCIAL STATEMENTS
FRS 102 sets out three fair value levels.
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.
2023
£’000s
2022
£’000s
Level 1 1,286,786 898,937
Level 2 - -
Level 3 - -
1,286,786 898,937
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 2023 was as per the equity shareholders’ funds in the Balance Sheet on page 55.
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
value per share and the share price (i.e. the level of share price discount or premium) to assess the need 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 59. The existence of an independent Board of Directors demonstrates that the Company is free to pursue
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 insurance
contributions, are disclosed in Note 3 on page 60
of 12 March 2024.
16. Post Balance Sheet events
Since the year end a further 3,271,401 shares have been bought back for a total cash consideration of £10.6m. As at 12 March
2024 there were 428,756,680 shares in issue (including 42,071,071 shares in treasury).
68
ALLIANZ TECHNOLOGY TRUST PLC
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 2023, the NAV was £1,318.8m (2022:
£938.9m) and the NAV per share was 338.2p (2022: 231.0p).
Earnings per Ordinary share
period. For the year ended 31 December 2023 earnings per Ordinary share was (0.88p) (2022: (0.45p)), calculated by taking the
loss after tax of £3.5m (2022: loss of £1.9m), divided by the weighted average shares in issue of 397,030,186 (2022: 415,019,252).
Alternative Performance Measures (APMs)
Discount or 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 2 and 6).
Ongoing charges
net asset value during the year and this is calculated in accordance with guidance issued by the Association of Investment
Companies (see page 6).
2023
£’000s
2022
£’000s
Management fee 6,866 6,795
Administration expenses 1,003 1,098
Total expenses (A) 7,869 7,893
Average net asset value with debt at market value (B) 1,130,050 1,127,222
Ongoing charge (A/B) 0.70% 0.70%
The ongoing charge including the performance fee payable of £nil (2022: £nil) is 0.70% (2022: 0.70%).
Glossary of UK GAAP Performance Measures
and Alternative Performance Measures
INVESTOR INFORMATION
69
Investor Information
AIC Code of Corporate Governance AIC Code
Allianz Global Investors GmbH AllianzGI
Allianz Global Investors UK Limited AllianzGI UK
Allianz Technology Trust PLC The Company
Alternative Investment Fund Manager AIFM
Alternative Performance Measures APMs
Annual Financial Report AFR
Annual General Meeting AGM
Association of Investment Companies AIC
Corporate Social Responsibility CSR
Disclosure and Transparency Rules DTR
Dow Jones World Technology Index (sterling adjusted, total return) The Benchmark
Emissions, Environmental and Ethical EEE
Environmental, Social, Governance ESG
Federal Reserve Fed
Financial Conduct Authority FCA
HSBC Bank The Custodian
HSBC Security Services The Depositary
Key Performance Indicators KPIs
Link Group as Registrars Link
Net Asset Value NAV
Ongoing Charges Figure OCF
Senior Independent Director SID
State Street
Task Force on Climate-related Financial Disclosures TCFD
UK Code of Corporate Governance The UK Code
Voya Investment Management Co LLC Voya IM
Glossary of Terms
ALLIANZ TECHNOLOGY TRUST PLC
70
Alternative Investment Fund Manager (AIFM)
Allianz Global Investors UK Limited
199 Bishopsgate, London, EC2M 3TY
Telephone: +44 (0)20 3246 7000
Head of Investment Trusts - AllianzGI UK
Stephanie Carbonneil
Email: stephanie.carbonneil@allianzgi.com
Kelly Nice
Email: kelly.nice@allianzgi.com
199 Bishopsgate, London, EC2M 3TY
Telephone: 020 3246 7405
Investment Manager
Voya Investment Management Co. LLC
555 Mission Street, Suite 1600
San Francisco, CA 94105
Telephone: +1 415 954 4500
Represented by Mike Seidenberg
Registered number
3117355
Bankers and Custodian
HSBC Bank plc, 8 Canada Square, London, E14 5HQ
Depositary
HSBC Security Services, 8 Canada Square, London, E14 5HQ
Independent auditors
Mazars LLP, 30 Old Bailey, London, EC4M 7AU
Registrars
Link Group, Central Square, 29 Wellington Street, Leeds,
LS1 4DL.
Stockbrokers
Bridge House, 25 Dowgate Hill, London, EC4R 2GA
SEDOL: BNG2M15
ISIN: GB00BNG2M159
BLOOMBERG: ATT
EPIC: ATT
GIIN: YSYR74.99999.SL.826
LEI: 549300OMDPMJU23SSH75
Financial calendar
Full year results announced and Annual Financial Report
published in March.
Annual General Meeting held in April.
Half year results announced and Half-Yearly Financial Report
published 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
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 Technology Innovation.
Investor Information
INVESTOR INFORMATION
71
Shareholder enquiries – Link Group
In the event of queries regarding their holdings of shares,
etc., shareholders should contact the registrars on 0371
664 0300. Lines are open 9.00am to 5.30pm (UK time)
Monday to Friday. Calls to this number are charged at
local rates, calls from outside the UK are charged at
to calls made from mobile telephones and calls may be
recorded and monitored randomly for security and training
purposes. Email: shareholderenquiries@linkgroup.co.uk.
Website: www.linkgroup.com
Registrar 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 facility
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 charged at applicable international
telephones and calls may be recorded and monitored
randomly for security and training purposes.
Shareholder Proxy Voting
Shareholders may submit their proxy electronically using
the Share Portal service at www.signalshares.com. Or via
the registrars’ LinkVote+ Shareholder App. Further details on
voting via the LinkVote+ App, online through the registrars’
Share Portal, or by post using the personalised proxy card
provided, are contained within the Notice of Meeting Notes
starting on page 77.
CREST Proxy Voting
voted through the CREST Proxy Voting Service in accordance
with the procedures set out in the CREST manual. Voting
via the Proxymity platform is also available to institutional
shareholders. Further details are contained within the Notice
of Meeting Notes starting on page 77.
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
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 and close
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 companies
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
information to make 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
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 very wary of any
Please note that it is most unlikely that either the Company or the Company’s Registrar, Link Group, would make unsolicited
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.
ALLIANZ TECHNOLOGY TRUST PLC
72
Alternative Investment Fund Manager and Depositary
Allianz Global Investors UK Limited (‘AllianzGI UK’) is designated the Alternative Investment Fund Manager (‘AIFM’). AllianzGI
UK is authorised to act as an AIFM and to conduct its activities by the Financial Conduct Authority (‘FCA’) in accordance with
AIFMD and FCA requirements. The management fee and the notice period are unchanged in the restated management and
administration agreement (details in Note 2 on page 59).
The Company appointed HSBC Bank PLC as its Depositary and Custodian in accordance with AIFMD under an agreement
between the company, AllianzGI UK and HSBC. Depositary fees are charged in addition to custody fees and are calculated on
the basis of net assets.
Leverage and Risk Policies under AIFMD
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.
Remuneration Disclosure of the AIFM
management function (‘SMF’) holders without control function, members of management/SMF with control function and other
risk takers.
Number of employees: 290
All employees
thereof
material
risk takers
thereof board
members/SMF
holders without
control function
thereof board
members/SMF
holders with
control function
thereof other
material risk
takers
Fixed remuneration 21,487,405 2,160,697 1,444,946 176,167 539,584
Variable remuneration 17,371,547 4,130,354 2,883,067 76,245 1,171,042
Total remuneration 38,858,952 6,291,051 4,328,013 252,412 1,710,626
The information on employee remuneration does not include remuneration paid by delegated managers to their employees.
AllianzGI UK does not pay remuneration to employees of delegated companies directly from the fund.
Setting the remuneration
AllianzGI UK is subject to certain requirements applicable to investment management companies with regard to structuring the
remuneration system.
The board of directors of AllianzGI UK has set up a remuneration committee. It has the overall responsibility for overseeing the
implementation of the remuneration policy and practices. Working in close cooperation with control functions as well as with
external advisers and in conjunction with the management, the human resources department has developed AllianzGI UK’s
remuneration policy. The remuneration committee ensures that on a regular basis the implementation of the remuneration policy
is subject to a central and independent internal review.
Remuneration structure
experience required in a particular role, and an annual variable remuneration. The total amount of the variable remuneration
payable throughout AllianzGI UK depends on the performance of the business and on the company’s risk position and will
performance of the employee and their departments during the period under review. Variable remuneration includes an annual
Investor Information (unaudited)
INVESTOR INFORMATION
73
the case of employees whose variable remuneration exceeds
a certain threshold, a substantial portion of the annual
variable remuneration is deferred for a period of three years.
The deferred portions increase in line with the level of the
variable remuneration. Half of the deferred amount is linked to
the performance of AllianzGI UK, and the other half is invested
in the funds managed by AllianzGI UK. The amounts ultimately
distributed depend on the company’s business performance
or the performance of shares in certain investment funds over
several years. In addition, the deferred remuneration elements
may be withheld under the terms of the plan.
Performance evaluation
The level of pay awarded to employees is linked to both
quantitative and qualitative performance indicators. For
in achieving our clients’ investment goals, quantitative
indicators are geared towards sustainable investment
performance. For portfolio managers in particular, the
quantitative element is aligned with the benchmark of the
client portfolios they manage or with the client’s expected
return, measured over a period of one year and three
years. For client-facing employees, goals also include
client satisfaction, which is measured independently. The
remuneration of employees in controlling functions is not
directly linked to the business performance of individual
departments monitored by the controlling function.
Risk takers
takers: members of management/ Senior Management
Function holders without control function, members of
management/ Senior Management Function holders with
control function and other risk takers.
Risk avoidance
AllianzGI UK has comprehensive risk reporting in place,
which covers both current and future risks of our business
activities. Risks which exceed the organisation’s risk appetite
are presented to the global remuneration committee, which
will decide, if necessary, on the adjustments to the total
remuneration pool. Individual variable compensation may
also be reduced or withheld in full if employees violate our
compliance policies or take excessive risks on behalf of
AllianzGI UK.
Annual review and material changes to the
remuneration system
The board of AllianzGI UK approved the remuneration
policy which had been implemented in accordance with the
remuneration regulations.
AIFM Pre-Investment Disclosures
The AIFMD requires that potential investors are provided
an 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.
ALLIANZ TECHNOLOGY TRUST PLC
74
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR
IMMEDIATE ATTENTION. If you are in any doubt as to
what action to take, you should consult your stockbroker,
bank manager, solicitor, accountant or other appropriate
independent professional advisor authorised under the
Financial Services and Markets Act 2000 immediately if you
are in the United Kingdom or, if not, another appropriately
transferred all your shares in Allianz Technology Trust
PLC, please forward this document and the accompanying
Form of Proxy to the purchaser or transferee or to the
transmission to the purchaser or transferee.
Notice is hereby given that the Annual General Meeting
(‘AGM’) of Allianz Technology Trust PLC (the ‘Company’)
will be held at Grocers’ Hall, Princes Street, London, EC2R
8AD on Wednesday 24 April 2024 at 2.30pm for the
following purposes:
The AGM will be held in person and voting will be conducted
on a poll. However, shareholders will be able to view and
listen to a live webcast of the AGM and submit questions to
the meeting electronically. Those attending virtually will not
be able to vote for the purposes of the business transacted at
the AGM and are therefore encouraged to vote ahead of the
meeting. Instructions on how to join the meeting virtually are
contained on page 79.
AGM Voting
Shareholders are encouraged to vote by proxy. Detail of how
to vote, either electronically, by proxy form or through CREST
or Proxymity, can be found on pages 77 to 79.
The results of the AGM will be announced via the London
Stock Exchange and placed on the Company’s website as
soon as practicable after the conclusion of the AGM.
Ordinary Business
as Ordinary Resolutions:
1. To receive and adopt the Company’s Annual Report and
December 2023, together with the Reports of the Directors
and the Independent Auditors’ report thereon.
3. To re-elect Katya Thomson 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.
6. To elect Sam Davis as a Director of the Company
7. To re-appoint Mazars LLP as Independent Auditor of the
Annual General Meeting of the Company at which the
Financial Statements are laid before the Company.
8. To authorise the Directors to determine the remuneration
of the Independent Auditor of the Company.
9. To approve the Directors’ Remuneration Policy Report.
10. To receive and approve the Director’s Remuneration
December 2023.
Special Business
which 12 and 15 will be proposed as Ordinary Resolutions and
11, 13, 14 and 16 will be proposed as Special Resolutions:
Resolution 11 – Articles of Association
That, the Articles of Association produced to the meeting
and signed by the chairman of the meeting for the purposes
of Association of the Company in substitution for, and to the
the conclusion of the meeting.
Resolution 12 – Allotment of shares
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 and to grant rights to subscribe for, or to convert
any security into, shares in the Company (together being
‘relevant securities’) provided that such authority shall be
limited to the allotment of shares and the grant of rights in
respect of shares with an aggregate nominal value of up to
£1,071,891 (42,875,668 Ordinary shares) (representing 10%
of the Company’s total issued share capital as at 12 March
2024) 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
agreement which would or might require relevant securities
to be allotted or granted after the expiry of such authority
and the Directors shall be entitled to allot or grant relevant
authority had not expired.
Resolution 13 – Disapplication of pre-emption rights
That, subject to the passing of resolution 12 above, and in
substitution for any existing power but 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 sections 570 and 573 of the
Companies Act 2006 (the ‘Act’) to allot equity securities (within
Notice of Meeting
INVESTOR INFORMATION
75
the meaning of section 560(1) of the Act) for cash either
pursuant to the authority given by resolution 10 above or by
way of the sale of Treasury shares wholly for cash as if section
561(1) of the Act did not apply to any such allotment or sale,
provided that this power:
(a) expires 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, save that the
agreement which would or might require equity securities
to be allotted after such expiry and the Directors may
agreement as if the power conferred hereby had not
expired; and
(b) shall be limited to the allotment of equity securities or the
sale of Treasury shares up to an aggregate nominal value
of £1,071,891 (42,875,668 Ordinary shares) (representing
10% of the Company’s total issued share capital as at 12
March 2024).
Resolution 14 – Authority to buy back 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 (‘Ordinary shares’), provided that:
(a) the maximum aggregate number of Ordinary shares
hereby authorised to be purchased is 64,270,626 or, if less,
the number representing approximately 14.99 per cent. of
the issued Ordinary share capital of the Company on the
date on which this resolution is passed;
(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 purchased pursuant to this
authority shall not be more than the higher of:
(i) 5% above the average closing price on the London
business 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 15 – Allotment of shares – Second authority for
the Directors’ to allot new shares of the Company.
That, in addition to the authority sought under resolution
10 and 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 and to grant rights to subscribe for, or to convert
any security into, shares in the Company (together being
‘relevant securities’) provided that such authority shall be
limited to the allotment of shares and the grant of rights in
respect of shares with an aggregate nominal value of up to
£1,071,891 (42,875,668 Ordinary shares) (representing 10%
of the Company’s total issued share capital as at 12 March
2024) 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
agreement which would or might require relevant securities
to be allotted or granted after the expiry of such authority
and the Directors shall be entitled to allot or grant relevant
authority had not expired.
Resolution 16 – 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
That, subject to the passing of resolution 15 above, and in
substitution for any existing power but 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 sections 570 and 573 of the
Companies Act 2006 (the ‘Act’) to allot equity securities (within
the meaning of section 560(1) of the Act) for cash either
pursuant to the authority given by resolution 13 above or by
way of the sale of Treasury shares wholly for cash as if section
561(1) of the Act did not apply to any such allotment or sale,
provided that this power:
(a) expires 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, save that the
agreement which would or might require equity securities
to be allotted after such expiry and the Directors may
agreement as if the power conferred hereby had not
expired; and
ALLIANZ TECHNOLOGY TRUST PLC
76
(b) shall be limited to the allotment of equity securities or the
sale of Treasury shares up to an aggregate nominal value
of £1,071,891 (42,875,668 Ordinary shares) (representing
10% of the Company’s total issued share capital as at 12
March 2024).
By order of the Board
12 March 2024
Notes to the Notice of Meeting
The following notes explain your general rights as a
shareholder and your right to attend and vote at this Annual
General Meeting (the ‘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 2024. 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 30 minutes prior to the
commencement of the Meeting at 2.30pm (UK time)
on 24 April 2024 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
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 71.
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
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
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 2.30pm on 22 April 2024 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, Central Square, 29 Wellington Street, Leeds,
LS1 4DL;
ii) electronically via Proxymity or through the website of
the Company’s registrar at www.signalshares.com;
iii) via LinkVote+ (see note 8); or
iv) 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.
8. LinkVote+ is a free app for smartphone and tablet
shareholders the option to submit a proxy appointment
quickly and easily online, as well as real-time access
to their shareholding records. The app is available to
download on both the Apple App Store and Google
Play. QR codes to facilitate this are shown below. Your
vote must be lodged by 2.30pm on 22 April 2024 in order
to be considered valid or, if the meeting is adjourned,
by the time which is 48 hours before the time of the
adjourned meeting.
Apple App Store GooglePlay
9. The return of a completed form of proxy, electronic proxy
appointment, any CREST Proxy Instruction or appointing
a proxy via Proxymity 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
INVESTOR INFORMATION
77
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). CREST
Personal Members or other CREST sponsored members,
and those CREST members who have appointed a voting
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 &
information 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 2024. 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 & International 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/her/their
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 service
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
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 2024 in order to be considered valid or, if the
meeting is adjourned, by the time which is 48 hours before
the time of the adjourned Meeting. 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. An electronic proxy appointment via the Proxymity
platform may be revoked completely by sending an
authenticated message via the platform instructing the
removal of your proxy vote.
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 that no
more than one corporate representative exercises powers
in relation to the same shares.
15. As at 11 March 2024, (being the latest practicable business
day prior to the publication of this Notice), the Company’s
ordinary issued share capital excluding Treasury shares
consists of 386,685,609 Ordinary shares, carrying one vote
each. As at 12 March 2024 the Company held 42,071,071
Ordinary shares in treasury (representing 9.8 % of the total
issued Ordinary share capital of the Company (excluding
Treasury shares)). Therefore, the total voting rights in the
Company as at 12 March 2024 are 386,685,609.
16. Under section 527 of the Companies Act 2006 (the ‘Act’),
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
statements (including the Auditor’s Report and the conduct
of the audit) that are to be laid before the Meeting; or
(ii) any circumstances connected with an auditor of the
in accordance with section 437 of the Act (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 Act.
Where the Company is required to place a statement on
a website under section 527 of the Act, 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
Company has been required under section 527 of the Act
to publish on a website.
17. Any shareholder attending the Meeting has the right to
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
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
Company on any business day from the date of this Notice
ALLIANZ TECHNOLOGY TRUST PLC
78
until the time of the Meeting and may also be inspected
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 Act) 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.
20. Any person holding 3 per cent, or more of the total voting
rights in the Company who appoints a person other than
the Chairman as his or her proxy must ensure that both he
or she and such third party comply with their respective
disclosure obligation under the Disclosure Guidance and
Transparency Rules.
21. The full terms of the proposed amendments to the
Company’s articles of association are available at the
EC2M 3TY between the hours of 9.00am and 5.00pm
(Saturdays, Sundays and public holidays excepted) and
on the Company’s website, www.allianztechnologytrust.
com, from the date of the AGM Notice until the close of the
AGM, and will also be available for inspection at the venue
of the AGM from 15 minutes before and during the AGM.
The New Articles will also be available for inspection on
the National Storage Mechanism located at https://data.
fca.org.uk/#/nsm/nationalstoragemechanism, from the
date of the AGM Notice.
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
We are pleased to be able to provide a facility for
shareholders to follow the AGM remotely and submit questions
to the Board on the business of the meeting.
How to join the virtual meeting
att-24agm/, using your smartphone, tablet or computer. You
will then be prompted to enter your unique 11 digit Investor
Code (‘IVC’) including any leading zeros and ‘PIN’. Your PIN
is the last 4 digits of your IVC. This will authenticate you as
a shareholder.
‘Manage your account’ when logged in to the Signal Shares
portal. You can also obtain this by contacting Link Group, our
Registrar, by calling +44 (0) 371 277 1020*
Access to the AGM will be available from 30 minutes before
the start of the event, although you will not be able to submit
questions until you are logged in.
If you wish to appoint someone to attend the virtual meeting
on your behalf, please contact 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 electronic meeting, 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 electronic meeting.
* Lines are open from 9.00 a.m. to 5.30 p.m. Monday to Friday,
calls are charged at the standard geographic rate and will
vary by provider. Calls outside the UK will be charged at the
applicable international rate.
INVESTOR INFORMATION
79
ALLIANZ TECHNOLOGY TRUST PLC
80
OVERVIEW
3
ALLIANZ TECHNOLOGY TRUST PLC
4
Allianz Technology Trust PLC
199 Bishopsgate
London
EC2M 3TY
+44 (0)203 246 7000
www.allianztechnologytrust.com