What are the stories behind Allianz Technology Trust’s portfolio?
Stock Stories brings you closer to the heart of our investment strategy. In these short videos, lead portfolio manager Mike Seidenberg discusses Allianz Technology Trust’s top holdings and how they contribute to our overall strategic objectives of achieving long-term capital growth by investing principally in technology companies globally that have the potential to be the next Apple, Google or Microsoft.
A Typical Breakdown of Allianz Technology Trusts' Top Holdings:
Source:
Geographic Breakdown: Data as of 31.05.2024.
Sector Breakdown: Data as of 31.05.2024.
Top 10 Holdings: Data as of 31.05.2024.
Securities mentioned in this document are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any particular security.
These securities will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
This is for guidance only and not indicative of future allocation.
Explore the stories from inside the portfolio below:
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I'm Mike Seidenberg, lead portfolio manager of the Allianz Technology Trust. It's important to remember that all investments come with risk. The technology sector is well known for both growth and volatility. We aim to chart a smoother course in technology investing by focusing on sustainable, secular themes.
Having ridden the wave of social media, Meta Platforms, owner of Facebook, Instagram and WhatsApp is a company we know well. We first met with the CFO David Ebersman, when Facebook was a private company. Over the years, we've developed a great working relationship with the management team, Although at times we've taken a contrarian view on Meta.
One thing we're always cognisant of as technology investors is the natural life cycle of companies. Proven technology companies usually enjoy a period of stellar growth, followed by a period of slower growth, but greater profitability as margins improve and finally, a period of maturity. In investment parlance, they go from being growth stocks, to growth at a reasonable price, to value stocks. Meta is a classic example.
Having minimal exposure to meta during 2022 meant we avoided most of the pain the company felt when TikTok was gaining traction, and Meta's shares dropped substantially. Signs that Instagram was gaining market share gave us conviction to buy meta when it was out of favour. Over the course of 2023, better execution, a leaner cost structure, core product improvements and advancements in artificial intelligence drove revenues higher. Many shares recovered, and the Allianz Technology Trust was there to participate in the rebound.
In general, we tend to focus on mid-cap growth companies, but opportunities present themselves in companies of all sizes. No investment comes with a guarantee of success and we are not making any recommendations here. As Meta shows, even with large caps, the path is not linear and we stand by to capitalise on value where we find it.
Disclaimers: Past performance does not predict future returns. Securities mentioned in this document are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any particular security. These securities will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
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I'm Mike Seidenberg, Lead Portfolio Manager of the Allianz Technology Trust. It's important to remember that all investments come with risk. The technology sector is well known for both growth and volatility. We aim to chart a smoother course in technology investing by focusing on sustainable secular themes.
Take Monolithic Power Systems. It is capitalising on the electrification of the economy, which is being driven by several powerful trends: industrial automation, the transition to hybrid plus electric vehicles and the boom in artificial intelligence, which is driving the demand for data centres. Monolithic Power plays an important role in all of these areas.
The company's focus is power management. As semiconductors proliferate, power management becomes increasingly important. Think about a car or piece of industrial equipment. The more semiconductor content you add, the greater the need for effective and efficient power management. The ultimate example of the importance of this is an electric vehicle where multiple electronic components ensure controlled, safe and efficient driving.
Monolithic power creates a range of compact modules, sensors, circuits, drivers and other power management solutions, helping to make electronic devices more effective, reliable and capable. As investors, one aspect to the business model we like is the company not only designs these solutions, but also manages their fabrication versus outsourcing it. This facilitates one of its key objectives: to reduce manufacturing costs and improve product performance through continued developments in its process technology.
Stocks do not travel in a straight line. Monolithic is no different. We can't predict the future and we're not making any investment recommendations here. Our job at the Alliance Technology Trust is to find great businesses. Companies like founder-led monolithic, which is quite literally powering the future.
Disclaimers: Past performance does not predict future returns. Securities mentioned in this document are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any particular security. These securities will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
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I'm Mike Seidenberg, Lead Portfolio Manager of the Allianz Technology Trust. It's important to remember that all investments come with risk. The technology sector is well known for both growth and volatility. We aim to chart a smoother course in tech investing by focusing on sustainable, secular themes.
Artificial intelligence, cloud computing and cybersecurity are among the trends that excite us. In our view, one company capitalising on all three is CrowdStrike, a next generation security company that unifies protection across endpoints, cloud workloads, identity and data. Our increasingly digital world brings big business risks. CrowdStrike has reimagined cybersecurity to detect malware, stop breaches, and protect modern enterprises.
CrowdStrike has been using artificial intelligence, innovation and cybersecurity. Today its advanced machine learning is trained on the 2 trillion data points collected every day by its security cloud. And Charlotte AI, CrowdStrike's generative AI security product is enabling IT teams to work faster, better and smarter. Early adopters have saved an average two hours per day by accelerating and automating security operations.
Cybersecurity is a competitive market. To grow market share, companies must stay ahead of both competitors and adversaries. Adversaries are constantly changing vectors of attack. Based in the Silicon Valley, our proximity enables us to see first hand next generation security products.
Stocks don't move in a straight line. CrowdStrike is no different. But since going public in June of 2019, when we first initiated the position, its share price is up by more than 900%. Here at Allianz Technology Trust, we can't promise those types of returns for investors, and we aren't making a recommendation to buy shares in CrowdStrike. What we can do is make sure that we continue our endeavour to find great businesses, companies like CrowdStrike, that we believe are setting the pace of technological progress and join them on their journey.
Disclaimers: Past performance does not predict future returns. Securities mentioned in this document are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any particular security. These securities will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.