Allianz Technology Trust PLC

Half-Yearly Financial Report, 30 June 2026

The Board is pleased to announce the results for the half year to 30 June 2026. The Chairman, Tim Scholefield, said "The Company delivered a very strong 44.6% rise in Net Asset Value (NAV) per share during the six months to 30 June 2026."

Financial Highlights

As at 30 June 2026

NAV per Ordinary share

+44.6%

30.06.26. 826.7p

31.12.25. 571.7p

Ordinary share price

+42.7 %

30.06.26  752.0p

31.12.25  527.0p

Benchmark*

+25.8%

30.06.26. 5,567.0

31.12.25. 4,425.3

* Dow Jones World Technology Index (sterling adjusted, total return).

Interim Management Report

A Shifting Environment for Technology

The first half of 2026 once again reminded investors that markets rarely move in a straight line even when the long-term direction of travel remains compelling. In February US-Israeli airstrikes on Iran resulted in higher energy prices and a suspension of shipping through the Straits of Hormuz. The consequent deterioration in the global outlook for inflation initially unsettled equities; however, by April market confidence began to recover as airstrikes ceased and the two sides began tentative negotiations.

Technology shares recovered quickly, boosted both by hope of a de-escalation in the Middle East and by the continued expansion of the artificial intelligence (AI) rally. Demand remained particularly robust in semiconductors, technology hardware, communications equipment and information technology services. A resurgence in tech company public listings, characterised by an unprecedented wave of mega-cap IPOs including SpaceX and the planned listings of Anthropic and Open AI, added to the tech sector's momentum during the second quarter of the year. 

Investment Performance

Against this backdrop, the Company delivered a very strong 44.6% rise in Net Asset Value (NAV) per share during the six months to 30 June 2026. I am delighted to report that we significantly outperformed our benchmark, the Dow Jones World Technology Index (sterling adjusted, total return), which rose by 25.8%. The share price total return was +42.7%.

Our distinctive investment approach continued to drive performance for shareholders. Stock selection added significant value across a broad range of sectors and themes including semiconductors, IT services, software and data-centre-related areas. Positions linked to AI infrastructure, including memory, optical networking, power management, storage and semiconductor capital equipment, made important contributions. The Portfolio Manager's report, which follows my comments, includes more detail on investment performance and activity during the six months.

AI: Opportunities and Risks

AI continued to dominate the tech landscape and we saw strong performance from providers of AI-driven hardware, semiconductors and data-centre infrastructure during the six months. It also became increasingly apparent that the opportunity from AI extends well beyond hardware to include software and services companies.

We expect that the development and implementation of AI will continue to provide exciting investment opportunities but the risks around this theme remain significant. Pitfalls for the unwary investor include the possibility that companies misallocate capital or become excessively leveraged in their dash to win the AI race. Moreover, the tech industry contains many examples of companies that have fallen by the wayside having either failed to keep up with the pace of innovation or perhaps having backed an inferior hardware or software option.

AI continues to generate excitement, but excitement alone is not an investment case. The Board therefore welcomes the Investment Manager's rigorous bottom-up approach and its focus on companies that solve difficult problems, have strong competitive positions and can translate structural demand into earnings growth over the long term.

Fees

The substantial 18.8 percentage point outperformance during the six months has resulted in the accrual of a performance fee of £16.4m as at 30 June 2026. However, any performance fee payable will be based on investment performance as at 31 December 2026 (please see Note 8).

The Board continues to be closely focused on the costs of running the Company and I am pleased to report that the Ongoing Charge Figure (OCF) has again fallen marginally to 0.61% (31 December 2025: 0.62%).

Discount Management and Share Buybacks

Discounts across the investment trust sector remained elevated during the first six months of the year. The Board maintains a robust buyback policy. We would consider buying back shares when the discount is consistently over 7% and we judge it appropriate to do so given the prevailing market backdrop. In addition the Board maintains a marketing programme which is focussed on promoting the Company and on growing the demand for its shares.

Over the six months to 30 June 2026 a total of 16,179,957 shares were bought back at an average discount of 8.1%, representing 4.6% of shares in issue as of 31 December 2025. The aggregate value of shares bought back was £97.3 million. We ended the six months on a discount of 9.0% and since the end of the reporting period we have bought back a further 9,161,693 shares.

Annual General Meeting and Continuation Vote

The Company's Annual General Meeting was held on 23 April 2026. All resolutions were passed on a poll. This year's meeting was particularly important because Shareholders were asked to vote on the continuation of the Company. The continuation vote was passed successfully, with 98.7% of votes cast in favour of the Company's continuation, and the Board is grateful for the confidence Shareholders have placed in the Company.

A recording of the AGM, including the presentation from the lead portfolio manager, Mike Seidenberg, is available on the Company's website.

Outlook

In the shorter term, we can expect tech stocks to be impacted by how the global political and macroeconomic backdrop unfolds over the remainder of the year. Relations between the US and Iran are fragile to say the least and a protracted period of renewed military conflict would clearly threaten an already uncertain inflation outlook.

That said, the longer term outlook for the tech sector remains as exciting as ever and our Investment Manager continues to identify compelling opportunities across a broad range of themes and sectors including AI infrastructure, semiconductors, memory, data centres and optical networking. In uncertain and volatile times a disciplined approach to stock selection is vital. Our active, bottom-up investment approach is well suited to this environment and we will remain focussed on identifying those companies positioned to benefit from the next stages of technology adoption.

Principal Risks and Uncertainties

The principal risks and uncertainties facing the Company are broadly unchanged from those described in the Annual Financial Report for the year ended 31 December 2025. These are set out in the Strategic Report of that document, together with commentary on the Board's approach to mitigating the risks and uncertainties. Given the global macroeconomic and geopolitical backdrop, market risk remains front of mind and the Board, AIFM and Investment Manager continue to monitor the situation carefully.

The Board performs a review of the principal risks at every meeting to ensure that the risk assessment is current and relevant, adjusting mitigating factors and procedures as appropriate.

Keeping in Touch

The Company's website, www.allianztechnologytrust.com, and LinkedIn page remain the go-to destinations for the latest news, views and broadcast content relating to the Company. We continue to offer an ongoing email communications programme distributing monthly factsheets, insights and other occasional updates to all those who opt to receive them. Shareholders can sign up via the Company's website at www.allianztechnologytrust.com/en-gb/information/shareholder-information.

Going Concern

The Directors believe it is appropriate to adopt the going concern basis in preparing the financial statements as the Company's assets consist mainly of securities that are readily realisable and are significantly greater than its liabilities. The Directors have considered the Company's investment objective and capital structure, as well as the principal risks and uncertainties, including market volatility and the current geopolitical and macroeconomic environment.

Related Party Transactions

Note 15 on page 65 of the Company's 2025 Annual Financial Report gives details of related party transactions and transactions with the AIFM and Investment Manager. The basis for these has not changed during the six months under review. This report is available on the Company's website at www.allianztechnologytrust.com.

Responsibility Statement

The Directors confirm to the best of their knowledge that:

·      the condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with FRS 102 and FRS 104, as set out in Note 1, and the Accounting Standards Board's Statement 'Half-Yearly Financial Reports';

·      the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7 R of important events that have occurred during the first six months of the financial year, their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·      the interim management report includes a fair review of the information concerning related party transactions as required by Disclosure Guidance and Transparency Rule 4.2.8 R.

The half-yearly financial report was approved by the Board on 31 July 2026 and signed on its behalf by the Chairman.

Tim Scholefield

Chairman

31 July 2026

Portfolio Manager's Report

How did markets fare overall during the first half of the year?

The first half of 2026 delivered strong gains for equities, supported by resilient economic growth, improving corporate earnings and continued enthusiasm for artificial intelligence related investments. While volatility emerged during the period, including a market pullback following the escalation of conflict in the Middle East and concerns over potential disruptions to global energy supplies, investor sentiment recovered quickly as the conflict remained largely contained and the broader macroeconomic backdrop stayed constructive.

Geographically, Japan was among the top performing markets during the first half, followed by the US and Europe, while the UK posted more modest gains. Emerging markets outperformed developed markets, thanks to outsized gains in South Korea and Taiwan, with China posting more modest outperformance. Within the MSCI All Country World Index, information technology was the clear leader, with energy and industrials also delivering strong returns, while consumer discretionary and communication services lagged. Central banks remained cautious amid geopolitical tensions and inflation concerns. The Federal Reserve and Bank of England left rates unchanged, while the European Central Bank and Bank of Japan each raised rates by 25 basis points. The People's Bank of China maintained its benchmark lending rates.

Were there any notable differences in the performance of the different technology sectors or market capitalisation bands during the period?

There was a wider-than-typical performance differential between key technology areas. From an industry viewpoint, semiconductors, communications equipment and technology hardware segments of the market advanced meaningfully, driven by sustained AI infrastructure investment and robust hyperscaler (large-scale cloud service providers) capital spending. In particular, strong demand for advanced semiconductors, high-bandwidth memory, optical networking, servers and power infrastructure reinforced confidence that the AI buildout remains in its early stages, supporting broad-based earnings growth across the hardware ecosystem. Software and IT services delivered more mixed performance to start the year as investors weighed AI-related disruption risks and the stretched valuations. However, sentiment improved meaningfully towards the end of the period as companies increasingly demonstrated tangible AI monetisation, accelerating enterprise adoption and stronger demand trends, leading software to participate in the technology rally.

There was a notable broadening of performance away from the narrow, 'Mag 7' leadership of recent years. Super-mega cap stocks (market capitalisation greater than $1tn) which are collectively around 60% of the weight of the Dow Jones World Technology Index, were up only 7%, as double-digit gains in Taiwan Semiconductor, Alphabet and Broadcom were offset by double-digit declines in Microsoft and Meta Platforms. Instead, the market was led by mega-caps (between $250bn to $1tn) which rallied 90%, followed by large cap stocks (between $30bn to $250bn) which advanced 44%, while mid cap stocks (between $5bn to $30bn) were higher by 23% and small cap stocks (less than $5bn) advanced 35% for the period.

How did the Company perform during the period under review?

The Company was a beneficiary of strong bottom-up stock-picking combined with a number of tailwinds from exposure in key technology segments, including AI, cyber security and digital commerce. For the six months to 30 June, the NAV rose 44.6% compared to its benchmark, the Dow Jones World Technology Index (sterling adjusted, total return) which was up 25.8%. Relative results were driven by strong stock selection in technology hardware, thanks to significant outperformance in memory-related names, followed closely by stock-picking in semiconductors and the combination of a below-benchmark weight in software and positive performance results in the industry. Meanwhile, our positions in technology-related capital markets (fintech) and exposure to broadline retail detracted from results during the first half of the year.

What were the biggest positive contributors to our performance compared to the benchmark?

Our differentiated investment process, the team's Silicon Valley proximity and ongoing engagement with industry participants drove our outperformance during the review period. Additionally, the broadening of the market outside of super mega-caps aided results, led by the Team's conviction in select mega-cap and large-cap names, which drove bottom-up stock selection. An above-benchmark weight in Micron Technology, a leading supplier of dynamic random-access memory (DRAM), flash memory (NAND) and high-bandwidth memory (HBM) solutions for AI and data-centre applications, continued to outperform as robust AI infrastructure spending, improving memory pricing and sustained demand for advanced products reinforced confidence in the company's long-term growth and earnings outlook. Similarly, Sandisk, a manufacturer of memory and storage drives, rallied amid continued strength in AI-driven memory demand, improving NAND pricing and favourable long-term supply agreements which reinforced confidence in the ongoing memory industry upcycle and the company's earnings outlook. An active position in Lam Research, a leading supplier of semiconductor manufacturing equipment, advanced as investors grew more optimistic about sustained AI-driven chip investment, improving demand from memory manufacturers, and the company's key role in producing next-generation semiconductors. We continue to hold these stocks given their favourable risk vs. reward and durable demand drivers.

What about the largest detractors to performance?

Performance detractors were chiefly related to underweight allocations of a handful of stocks which benefitted from an improvement in investor sentiment. The avoidance of South Korean chipmaker SK hynix, in favour of other memory providers, offset relative performance as the company's share price advanced due to strength in AI‑related HBM demand, tight memory supply and pricing strength which continued to support a valuation re‑rating. The absence of a position in Intel, a leading designer and manufacturer of semiconductors for computing, data centre, and AI applications, offset results as investors grew more optimistic about restructuring efforts, improving execution and demand for AI-related chips and manufacturing services. We initiated a position in the stock during the period given the improvement in its operating and financial performance and to reduce benchmark-relative risk of the portfolio. Similarly, not owning South Korean semiconductor and consumer conglomerate Samsung Electronics offset results as shares advanced on improvement in semiconductor and memory demand expectations alongside favourable macro trends, particularly from AI and data centre demand. The stock was also added during the period reflecting its increasingly attractive risk vs. reward profile.

Where have you been finding new opportunities?

We made multiple new buys during the first half of the year, including a greater focus on secular growth opportunities in semiconductors, technology hardware, communication services and IT services industries. The largest new buy was the aforementioned Samsung Electronics, given the company's diversified business model and durable demand drivers. Applied Materials, a leading semiconductor materials engineering solutions provider, was bought due to expectations of sustainable demand across AI, automotive, automation and robotics segments. Shares of ASML, a manufacturer of advanced semiconductor lithography equipment, were also purchased given its leadership position and exposure across multiple technology-related themes.

Our active management approach enables us to remain disciplined, avoiding businesses where valuations are not supported by fundamentals and instead allocating capital to attractively priced companies with compelling propositions and resilient financial profiles. Through ongoing diligence, we can adjust position sizes and continually reassess our portfolio holdings. This disciplined approach is central to the Company's ability to outperform the benchmark.

How have you funded these new investments?

Sell decisions were made incrementally to improve the risk vs. reward profile of the fund and focused primarily on reducing exposure to selected software, electronic equipment, interactive media and capital markets companies. Shares of cloud-based commerce software platform Shopify were fully exited due to a less attractive valuation level and expectations of higher competition from other platforms. Amphenol, a designer and manufacturer of connectors and cabling used across data centres, telecom infrastructure and defence applications, was sold given our concern around their nascent optical business. Arista Networks, a provider of high-performance networking switches and software for cloud data centres, was exited after strong AI-driven performance as investor focus increasingly shifted toward nearer-term growth deceleration risk and disappointing company management guidance primarily driven by supply chain constraints.

What is your outlook for the remainder of the year?

We remain constructive on the technology sector, buoyed by durable AI-driven demand supported by emerging use cases, stronger earnings visibility and expanding evidence of monetisation across both infrastructure and software layers. Concerns around AI disruption in software have further eased, with investor focus shifting toward productivity gains, accelerating enterprise adoption and strengthening revenue trends. While valuations have firmed after recent gains, they remain broadly supported by a multi-year growth outlook and improving free cash flow generation among leading platforms. The AI opportunity continues to broaden beyond infrastructure into software, data and workflow automation, supporting a more diversified and durable phase of growth across the sector.

Our focus remains on building the portfolio from a bottom-up perspective combined with a macro overview. Technology remains a key enabler across almost every vertical industry and we will continue to seek stocks which solve difficult problems and can be long-term outperformers. We believe earnings growth ultimately drives stock prices over the long term, and in our view, we are still early in the spending trend supporting this dynamic segment.

Mike Seidenberg

Lead Portfolio Manager

Voya Investment Management Co LLC

31 July 2026

Investment Portfolio

at 30 June 2026

¹ GICS Industry classifications.

Income Statement

Balance Sheet