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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Allianz Technology Trust Plc | LSE:ATT | London | Ordinary Share | GB00BNG2M159 | ORD 2.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 347.50 | 347.50 | 349.50 | 354.00 | 347.50 | 354.00 | 585,303 | 16:29:38 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMATT
RNS Number : 7019F
Allianz Technology Trust PLC
23 February 2018
For immediate release
22 February 2018
ALLIANZ TECHNOLOGY TRUST PLC
LEI: 549300OMDPMJU23SSH75
FINAL RESULTS FOR THE YEARED 30 NOVEMBER 2017
The following comprises extracts from the Company's Annual Financial Report (AFR) for the year ended 30 November 2017. The full AFR will shortly be available to be viewed on or downloaded from the company's website at www.allianztechnologytrust.com. Copies will also be posted to shareholders shortly.
For further information contact:
Robert Jeens Melissa Gallagher Eleanor Emuss Chairman Head of Investment Trusts Company Secretary
Telephone:
020 3246 7405 020 3246 7539 020 3246 7405
MANAGEMENT REPORT
Chairman's Statement
A year of strong performance
It is pleasing to report that the year under review has been an extremely successful one for your Company and one in which it beat its benchmark index by some considerable distance.
In the year to 30 November 2017, the Company's Net Asset Value (NAV) per share increased by an outstanding 41.0%. Our benchmark index, the Dow Jones World Technology (sterling adjusted, total return), increased by 31.5% over the same period, creating an outperformance for the portfolio of 9.5% in NAV terms. In both absolute and relative terms, your Manager has delivered an exceptional performance.
Over this extremely positive period, the market price of the Company's shares performed even better than the NAV, with the share price rising 50.2% over the year, from 799p to 1200p. The discount to NAV narrowed, from a 4.4% discount (at 30 November 2016) to a small premium of 1.8% one year later. This year has also seen Shareholders' Funds increasing by almost GBP100 million to GBP313.4 million (30 November 2016: GBP216.7 million).
No dividend is proposed for the year ended 30 November 2017 (2016: nil). Given the nature of the Company's investments and its stated objective to achieve long-term capital growth the Board considers it unlikely that any dividend will be declared in the near future.
Investment Managers' Review
Six months ago, when I commented on the Company's interim results to 31 May 2017, I noted that global markets had been strong and that all-time market highs had been reached in the US; this trend continued unabated throughout the Company's second half. Your Company's performance is explored in depth in the Investment Managers' Review on pages 38 to 45 of the AFR which also discusses the significant global geopolitical factors that have provided a complex backdrop to the year under review. Of course, 20 January 2017 marked the inauguration of Donald Trump as the 45th president of the United States and the Manager's review naturally considers the impact the Trump administration has had on the portfolio.
How do we compare with our peers and other indices?
The table below compares the Company to its technology investment trust peers and related indices. You will note that the Company's performance over all timeframes has been strong and that, when compared to peers and indices, your Company has been in 1st or 2nd place over each of the time periods set out below:
% increase 1 year 3 years 5 years 10 years ----------------------------- ------- -------- -------- ------------- ATT NAV 41.0 92.5 234.3 349.7 ----------------------------- ------- -------- -------- ------------- Dow Jones World Technology Index (sterling adjusted total return) 31.5 85.3 184.3 295.8 ----------------------------- ------- -------- -------- ------------- MSCI World Technology Index (total return) 29.9 86.3 193.6 299.3 ----------------------------- ------- -------- -------- ------------- Russell MidCap Technology Index 23.4 83.4 199.4 326.4 ----------------------------- ------- -------- -------- ------------- Polar Capital Technology (NAV) 36.1 95.5 192.7 372.2 ----------------------------- ------- -------- -------- ------------- ATT NAV performance 1st 2nd 1st 2nd against above comparatives ----------------------------- ------- -------- -------- -------------
Source: AllianzGI in sterling as at 30 November 2017
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.
% increase 1 year 3 years 5 years 10 years ---------------------- ------- -------- -------- --------- ATT NAV 41.0 92.5 234.3 349.7 ---------------------- ------- -------- -------- --------- FTSE All Share Index (total return) 13.4 25.2 57.1 76.5 ---------------------- ------- -------- -------- --------- FTSE World Index (total return) 15.4 48.6 107.0 150.9 ---------------------- ------- -------- -------- ---------
Source: AllianzGI in sterling as at 30 November 2017.
As noted in previous reports the Board pays close attention to the Company's performance position against the wider universe of open ended funds, closed ended funds and exchange traded funds. The performance of your Company versus the other funds within the Morningstar Global Technology Sector - Equity (Morningstar) category is very strong over all periods and exceptional over the longer investment terms of 5 and 10 years.
1 year 3 years 5 years 10 years -------------------- ------- -------- -------- --------- Peer Group Ranking vs Morningstar 4/70 7/59 1/58 4/50 -------------------- ------- -------- -------- ---------
Growing the Company
Your Board considers that growing the Company is strongly in the interest of all shareholders. In addition to delivering capital growth per share, increasing the total value of the Company should make the Company more attractive to a wider range of investors through improved secondary market liquidity and marketability and also enables the Company's fixed expenses to be spread over a larger asset base.
Each year the Board considers carefully what level of expenditure should be incurred to promote the growth of the Company, recognising that the benefit of much marketing-related expenditure is cumulative and hence that returns are not easily measured within each financial year. Over recent years the Board has modestly increased marketing expenditure on a strongly focused basis and it is very pleasing to note the growing awareness of the Company's shares amongst potential shareholders has been achieved. Awareness has grown on the back of the Company's long-term performance record as well as the numerous (and prestigious) awards and positive press comment that this performance has generated.
How marketing can serve to grow the Company
Our communications programme has created significant demand for the Company's shares in recent years, particularly through execution-only investment platforms. The programme includes targeted advertising and substantial communications with national and industry journalists, since press coverage can be highly influential.
The Company's website (www.allianztechnologytrust.com) is managed by Allianz Global Investors and is at the heart of ongoing marketing initiatives. During the period under review, the website was redesigned in a 'responsive' format that provides an optimal viewing experience (by way of easy viewing and navigation) for visitors using all forms of devices - mobile phones, tablets and desktop computers. As well as a much cleaner 'look and feel', the redesign has added substantial new content that the Board believes shareholders will appreciate. It is pleasing to report that visitor numbers have increased substantially since the new site went live.
Accessing the very latest information
The Company's website provides information on both the Company's investment performance and the technology sector as a whole. You will find video interviews, press coverage, regulatory market announcements and a full Literature & Resources library. The 'How to invest' section includes detailed background information as well as links to the most popular online trading platforms. Shareholders are reminded that, via the website, they can register to receive monthly performance updates via email as well as regular 'Investment Insights from Silicon Valley' updates from the Company's Investment Manager.
Performance awards raise awareness
Award recognition is instrumental in raising awareness of the Company's specialist investment theme (and the technology sector as a whole). Allianz Technology Trust has received high profile and prestigious recognition in recent years. Awards include the Investment Week Investment Company of the Year Award, Specialist category (2015 and 2017) where the judging panel comprised some of the UK's leading researchers and investors in investment trusts. In September 2017, the Company was recognised by Investors Chronicle as a 'Top 100 Fund' for the fifth consecutive year whilst it was also selected as the 'Best Investment Trust 2017' by the users of MoneyAM. Such awards reflect the Company's long-term investment performance track record and drive the sustained and ongoing demand for the Company's shares that its marketing campaign seeks to achieve.
Successful issuance of shares
As stated earlier, the Board remains keen to increase the number of shares in issue as a means of growing the Company. However, 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 considers carefully the parameters which should apply to both re-issuances of shares held in treasury and shares to be bought-back from the market and will only proceed when the action is in the best interests of shareholders.
In the year under review, 675,000 shares were issued out of those held in treasury at an average price of 1173p and an average discount of 2.99%, while no shares were bought back. Market conditions were very different from the previous year (to 30 November 2016) when it had not proved possible to issue any shares out of those held in treasury. Indeed, in that period shares had been bought back at an average discount of 11.0%.
At 30 November 2017, the Company had 26,594,427 Ordinary shares in issue with a further 1,708,453 shares held in treasury available for re-issue into the market to meet demand subject to appropriate pricing; it should be noted that shares being re-issued into the market shall only be issued at an average discount narrower than that at which they were bought back.
Since the start of the current financial year and up to 12 February 2018 the Company has issued a further 540,000 shares out of those held in treasury at an average price of 1172p and an average discount of 2.29% while no shares were bought back. As of 12 February 2018, 1,168,453 shares are held in treasury.
The Board is very pleased that excellent investment performance, well focused marketing and conducive market conditions have combined to enable the reissuance of a significant number of shares from treasury. The Board is also taking steps to ensure that, should appropriate demand arise, the Company is able to issue new shares once those held in treasury have all been reissued. Any such new shares will only be issued at a premium to NAV.
Our focus on the costs of running the Company
Your board works hard to ensure that the costs of running the Company are both reasonable and competitive, whilst also recognising that Allianz Technology Trust is a specialist vehicle.
The ongoing charges figure (OCF) is calculated by dividing operating expenses by the average net asset value. The OCF for the period under review was 1.02% (2016: 1.03%). The OCF excludes any performance fee to which the Investment Manager may be entitled if the Company's NAV per share outperforms its benchmark (as is explained in more details in Note 2 on page 96 of the Financial Statements in the Annual Report). As a result of the Company's significant outperformance of its benchmark in the year to 30 November 2017, a performance fee of GBP433,476 was earned by the Investment Manager for this period (2016: GBPnil). Your board is pleased that the Company's excellent performance over the period has triggered the payment of a performance fee. The Investment Management Agreement is in place to encourage, recognise and reward such excellent results. It should be added that the Company was one of the very best performing UK-listed investment trusts over the 2017 calendar year.
Towards the end of the last financial year the Board entered into discussions with Allianz Global Investors (AllianzGI) with a view to reducing the rate of AllianzGI's fees as the Company's assets increase. I am pleased to report that a tiered management fee structure has now been agreed whereby the present management fee of 0.8% per annum on market capitalisation reduces to 0.6% per annum for any amount of market capitalisation in excess of GBP400 million. This change became effective on 1 December 2017.
Change of financial year end
The Board has reflected on the November financial year end of the Company and concluded that changing this to a December year end should help shareholders by providing greater clarity in reporting comparative performance. The Board has decided that the current financial year will run for thirteen months to 31 December 2018. The interim report for 2018 will be for the six months to May.
Key Investor Information
The Key Investor Information (KID) is a new document which came into force in January 2018 for investment trusts and many other investment products operating under the Packaged Retail and Insurance-based Investment Products (PRIIP) Regulation. The KID is a standardised pan-European document that contains product, risk, charges and other information. It is a regulatory requirement that you are provided with a KID before you invest, and you will be required to declare that you have seen the latest KID when you make your investment.
The Allianz Technology Trust KID is available from the Literature Library at www.allianztechnologytrust.com. However, your chosen platform provider or stockbroker should provide you with a copy before accepting your investment instructions. Please note that existing investors do not need to review the KID unless planning to top up an investment.
The KID's standardised format is intended to allow potential investors to compare funds easily, on a like-for-like basis. However, your Board shares wider industry concerns that disclosures mandated for inclusion may prove to be unhelpful for investors. Specific concern surrounds the methodology for both the investment performance and risk sections as, particularly given the exceptionally strong five-year performance period on which they are required to be based, the published figures may result in a misleadingly optimistic view. Your Board would therefore strongly encourage any prospective investor in the Company not to rely solely on the KID when making their investment decision.
Board matters
Your Company's Investment Manager continues to enjoy considerable benefits from being located in San Francisco, close to where many of the Company's top holdings are located. As a Board we recognise the advantage the Company gains by being located at 'the heart of the action'. Moreover, we have worked hard to optimise working practices with the Manager, whilst recognising the constraints imposed by the geographical distance and time zone difference between London and San Francisco.
The Company's Board meetings are generally held in London, but we schedule a visit to San Francisco every couple of years. The most recent San Francisco Board meeting was in November 2017 and the next visit is tentatively planned for 2019. The frequency of these visits recognises the importance of good communications and close working relationships between the Manager and the Board, but also the costs and time commitment of such trips.
An internally facilitated Board and Manager performance appraisal process was conducted towards the end of the year. This confirmed that the current Board is working in an effective manner with no significant shortcomings identified.
In accordance with the Articles of Association, at this year's AGM Elisabeth Scott shall retire by rotation and Richard Holway shall retire due to tenure having served as a Director for in excess of nine years. I am pleased to confirm that Elisabeth and Richard are fully effective as independent directors and the re-election of both is fully supported by the Board.
Continuation vote
In accordance with our Articles of Association we are required to propose a continuation vote every five years. The most recent continuation vote was proposed and passed by Shareholders at the 2016 AGM. Shareholders will have a further opportunity to vote on the continuation of the Company at the AGM to be held in 2021.
Outlook
Since the end of the reporting period, markets were initially buoyant but volatility has recently increased significantly and confidence appears to have waned. The chances of a significant market correction remain a high possibility. Indeed 2017 may have created false hope in certain sectors and it is realistic to assume that the path ahead may be less smooth. There is also concern on the implications of rising interest rates around the world, rising labour costs in China and, in the US, tax cuts.
However, we should not let the concerns highlighted above detract from the likelihood that technology should continue to grow its influence over the global economy. As such, your board shares the Manager's positive view that the case for strong relative performance from the technology sector remains robust. As always, stock selection will be of the utmost importance but we believe that the Manager's carefully chosen portfolio of technology investments should continue to deliver positive returns over the longer term.
Annual General Meeting
The AGM will be held at The City of London Club, 19 Old Broad Street, London EC2N 1DS, on Wednesday, 25 April 2018 at 12 noon. All of your Board look forward to welcoming and meeting those shareholders who are able to attend.
Robert Jeens
Chairman
22 February 2018
Investment Managers' Review
Financial Year to 30 November 2017
Economic and market backdrop
The concerns over the health of the global economy that had weighed on investor sentiment for much of 2016 dissipated in 2017. For much of the year, the global economy experienced a synchronised economic upturn, led by the US. This was supportive for corporate earnings, which in many cases, remained robust.
Financial markets weathered three quarter-point rises in interest rates, with monetary policy remaining expansive around the globe. Towards the end of the period under review, concerns over the withdrawal of loose monetary policy had started to weigh on sentiment.
The technology sector
Technology companies have shown real strength in 2017. This strength has had multiple causes: a search for structural growth in a low growth world, improving global growth and the onward march of technology into new sectors and industries. However, above all, the technology sector has been driven higher by earnings growth.
The Dow Jones World Technology Index (sterling adjusted, total return) was up 31.5% over the 12 month period to 30 November 2017. This strength has been widely shared, with most underlying technology sectors participating in the growth. Earning growth has been significant (89% year on year for companies in the portfolio) and, in some cases, materially ahead of expectations.
This growth has been seen outside the headline sectors. Even in traditionally slower growth areas such as semiconductors, for example, supply and demand moved into balance after some significant consolidation, improving pricing for much of 2017. This improved earnings, which in turn saw share prices appreciate.
The strength was also not confined to the US. The Asian technology sector had a buoyant 2017, with companies such as Alibaba and Tencent showing that technology innovation is now firmly a global phenomenon. Chinese stocks were some of the best in the market.
Many technology companies continue to sit on significant cash balances. Research from Moody's showed that Apple, Microsoft, Google parent Alphabet, Cisco Systems and Oracle are set to hold a cumulative $679 billion in cash, up 16% over 2016. Apple's $285 billion cash balance represented nearly 15% of total non-financial corporate cash held by US Companies.
They may also be significant beneficiaries of the changes in the tax rules relating to repatriating cash balances held offshore. At the moment, these remittances are subject to high tax rates, but this will change under the US administration's new tax proposals. However, elsewhere technology companies came under increasing scrutiny for their tax arrangements. Many now recognise the need to make concessions to ensure they can continue to trade freely.
Technology developments over the year
New developments kept technology companies firmly in the headlines. In early November, and amid much hype, the Apple iPhone X went on sale - a celebration of 10 years since the launch of the first iPhone. While face recognition technology captured the imagination, it also addressed some of the issues with existing iPhones - the glass is harder, the battery life is better and there are new applications. Whether it will be enough to support the upgrade cycle is yet to be seen.
The biggest headlines were reserved for cryptocurrencies. Although they have been around since 2009, interest hit fever-pitch in 2017, with around 900 digital currencies now available. The technology appears to hold significant promise - in the long term its unique ledger may have a place, but its uses to date have been limited, and largely focused on criminality. The Bitcoin price was up over 4,500% for the year but has since fallen heavily.
Robotics has become more widespread, with companies increasingly seeking to mechanise to offset rising wages, particularly in emerging markets. At the same time, artificial intelligence (AI) has become a more important part of daily lives - from driverless technology in cars, to the Amazon Echo, it has become a feature in homes across the globe.
Tesla launched its Model 3 in July after a number of production delays. It brought the reality of a mainstream, affordable electric vehicle one step closer. Hurdles remain. In particular, battery supply is a notable challenge, but new factories are being built to address this.
Portfolio analysis
Micron and Square were the top contributors to the portfolio for the 12 months to 30 November 2017. There has been a perception that technology outperformance has largely been generated by the FANGs (Facebook, Amazon, Netflix and Google). While this has a kernel of truth - these stocks have generally performed well this year - they have not been the primary driver of relative and absolute performance in the fund.
Our semiconductor holdings have been a notable contributor to overall performance. Micron has seen a significant appreciation in its share price, on the back of strong earnings and a low starting price. The management team has managed the group's inventory well, which has helped to contribute to a stronger pricing environment for the company. Important too were the semiconductor holdings we didn't own, notably Qualcomm, which saw a series of setbacks including clashes with the regulatory authorities over its patent licensing business, a spat with Apple and a (to date) failed acquisition for NXP Semiconductors.
Having seen unexciting growth in recent years, the semiconductor industry is being given a new lease of life by the demand from developments in software-as-a-service, AI and the connected car. These innovations need high performance processing chips to manage large volumes of data. The sector has seen considerable consolidation, which has also helped pricing. Other notable holdings in the portfolio benefiting from this trend are Lam Research, Broadcom and Applied Materials.
Square was our second strongest contributor to overall performance on an absolute basis. We identified this company relatively early in its lifecycle. It started as a payment processing company. It evolved a system allowing small businesses such as hairdressers or cab drivers to accept credit card payments. It has now transitioned from hardware to software. Increasingly those same businesses are starting to use Square's software to manage other aspects of their business - staffing costs, inventories. It allows far more efficient business operations for small merchants. It has also recently started to offer small loans to businesses.
During the year, we made our first investments in robotics companies, building positions in IPG Photonics and Teradyne. Both contributed positively to the portfolio's performance over the period. In previously low wage economies, such as China, wages have risen significantly, threatening corporate profitability.
Companies are increasingly seeking to retain competitiveness in the face of mounting wages and robotics has proved an effective means to do this. Equally, where companies are seeking to repatriate manufacturing back to the US, they will also need robotics capabilities to keep costs low.
Teradyne makes small robots, nicknamed 'co-bots'. They are not designed to replace humans, but to remove some of the repetitive tasks - polishing metal or attaching two components together, for example. The robots can be trained to perform different tasks and are designed to help humans complete tasks more quickly and efficiently. IPG Photonics makes lasers, used in the manufacturing process for cutting and welding parts for cars, planes and electronics.
Elsewhere among the top performers on an absolute basis in the portfolio were some more familiar names; Amazon.com, Facebook and Samsung Electronics. In most cases this was a function of earnings, which continued to support the relatively high price to earnings multiples of these stocks. Apple also saw encouraging returns, having seen little share price movement in 2016. The reception for the iPhone X is still hard to read, but investors had become overly gloomy.
Although Sophos was a positive contributor to absolute performance, it was a more difficult year for our cyber security holdings. This came in spite of some notable data breaches, including some at major technology companies. Holdings in Palo Alto, FireEye and CyberArk Software detracted from the overall performance of the Company. A lot of the companies are currently going through business model transition, moving from selling hardware and licenses to a subscription service where customers pay fees. In the long-term, this should be a more sustainable business model, and revenues should become more predictable, but in the interim, this has created volatility in earnings.
A secondary problem is that some groups have been weak in executing this transition and investors have lost faith. Valuations were already relatively high and in the end, were not supported by business reality. Similar weakness has been seen in LendingClub, the largest detractor from overall performance. Management has executed poorly on the group's business plan, in spite of some compelling opportunities.
Overseas holdings
It has become increasingly clear in recent years that the US has no monopoly on innovation. Some of the most innovative and fastest growing companies are to be found outside the US, particularly in Asia. Chinese internet stocks have had a particularly strong run, notably Alibaba and Tencent, though investors have started to grow concerned about valuations. We pared back our weighting to China in the wake of the US Election, believing that there was too much uncertainty as to how the new relationship between the US and China would work. This has hurt performance - our underweight position in Tencent was the largest detractor from overall returns on a relative basis for the Company. We rebuilt positions in China early in 2017 but pared some again late in the year after great performance and some concern about difficult comparisons in the first half of 2018.
Absolute performance
The Company delivered a very strong absolute gain of 41%. The primary drivers for the portfolio's absolute performance include positions in some high-growth software companies, as well as robust performance from semiconductor and robotics stocks. These companies performed well due to higher demand for innovative technologies and components that enable the technologies, which led to consistently strong earnings growth.
Relative performance
A final note on relative performance: this year we outperformed the Dow Jones World Technology Index (sterling adjusted, total return), with the Company returning 41.0% against an index performance of 31.53%. Although our investments are not driven by the weightings of individual companies in the benchmark, we are aware of the benchmark and use it to measure the success of our performance. While many of the companies mentioned above contributed on an absolute and relative basis, stocks such as Amazon and Netflix are not currently part of our benchmark, and have therefore helped overall performance.
Outlook
While some investors assume technology companies may only see a small benefit from US tax reform, we believe this can significantly help the sector. New tax rules will allow companies to repatriate cash balances held offshore at lower tax rates. Cash repatriation can lead to larger cash returns to shareholders of large technology companies, and it could spark M&A activity in the tech sector, which should benefit smaller companies. Additionally, companies across the economy will likely spend at least some of the tax savings to invest in their businesses. We expect more spending to flow to technology companies that offer innovative products and services designed to help businesses increase productivity and improve efficiency. In our view, these factors should lead to continued strong earnings growth for technology companies.
22 February 2018
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 four years.
The directors believe that the period of four years continues to be appropriate as such time frame incorporates the Company's next five-year continuation vote which will be proposed at the AGM to be held in 2021. In order to assess the prospects for the Company the Board has considered:
-- The investment objective and strategy taking into account recent, past and potential performance against both the benchmark, other indices of note and peers;
-- The financial position of the Company, which does not currently utilise gearing in any form but does maintain a portfolio of, in the main, non-income bearing investments;
-- The liquidity of the portfolio and the ability to liquidate the portfolio on the failure of a continuation vote;
-- The ever increasing level of technology adopted by both individuals and corporations alike;
-- The inherent risks in such technology both in terms of speed of advancement but also potential catastrophe with the growth of cyber fraud; and
-- The principal risks faced by the Company as outlined below.
The Board is fully aware that the world of technology is constantly moving and growing and the perceived picture of technology now and in four years' time is potentially very different. Based on the results of the formal assessment the Board believes it is reasonable to expect that the Company will continue in operation and meet its liabilities for both the period of four years under direct review but also for the foreseeable future.
Principal Risks and Uncertainties
The principal risks identified by the Board are set out in the table below, together with information about the actions taken to mitigate these risks. A more detailed version of this table in the form of a Risk Map and Controls document is reviewed in full and updated by the Audit Committee and Board at least twice yearly; individual risks 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 markets in which it operates.
Description Mitigation ----------------------------------- ----------------------------------- Investment Strategy Risk The Investment Manager The Company's NAV may has responsibility for be adversely affected sectoral weighting and by the Investment Manager's for individual stock picking, inappropriate allocation having taken due account of funds to particular of Investment Objectives sub-sectors of the technology and Controls that are market and/or to the selection agreed with the Board of individual stocks that from time to time and fail to perform satisfactorily, regularly reviewed. These leading to poor investment seek, inter alia, to ensure performance in absolute that the portfolio is terms and/ or against diversified and that its the benchmark. risk profile is appropriate. Technology Sector Risk The Board reviews investment The technology sector performance, including is characterised by rapid a detailed attribution change. New and disruptive analysis comparing performance technologies can place against the benchmark, competitive pressures at each Board meeting. on established companies At such meetings, the and business models, and Investment Manager reports technology stocks may on major developments experience greater price and changes in technology volatility than securities market sectors and also in some slower changing highlights issues relating market sectors. to individual securities. Cyber Risk The operations of the The Company may be at Company are carried out risk of cyber attacks by the Investment Manager which may result in the and various third party loss of sensitive information service providers. All or disruption to the business. service providers report to the Board on operational issues including cyber risks and the controls in place to capture potential attacks. The Board meets with the AllianzGI Head of Information Security and is satisfied that appropriate controls are in place. See Operational Risk below. ----------------------------------- ----------------------------------- Market Risk The Board and the Investment The Company's NAV may be Manager monitor stock market adversely affected by a movements and may consider general decline in the hedging, gearing or other valuation of listed securities strategies to respond to and/or adverse market sentiment particular market conditions. towards the technology sector in particular. Although The Investment Manager the Company has a portfolio maintains regular contact that is diversified by with shareholders to discuss company size, sector and performance and expectations geography its principal and to convey the belief focus is on companies with of the Board and the Investment high growth potential in Manager that superior returns the mid-size ranges of can be generated from investment capitalisation. The shares in carefully selected companies of these companies may that are well managed, be perceived as being at financially strong and the higher end of the risk focused on those segments spectrum, leading to a of the technology market lack of interest in the where disruptive change Company's shares in some is occurring. market conditions. ----------------------------------- ----------------------------------- Currency Risk A high proportion of the The Board monitors currency Company's assets is likely movements and determines to be held in securities hedging policy as appropriate. that are denominated in The Board does not currently US Dollars, whilst its seek to hedge this foreign accounts are maintained currency risk. in Sterling. Movements in foreign exchange rates affect the performance of the Investment Portfolio and creates a risk for shareholders. ----------------------------------- ----------------------------------- Financial and Liquidity Risk Financial and liquidity The financial risks to reports are provided to the Company and the controls and considered by the in place to manage these Board on a regular basis. risks are disclosed in detail in Note 15 of the AFR. ----------------------------------- ----------------------------------- Operational Risk The Board receives regular Disruption to or the failure reports from the Investment of the systems and processes Manager and third parties utilised by the Investment on internal controls including Manager or other third reports on monitoring party service providers. visits carried out by This encompasses disruption the Depositary on behalf or failure caused by cyber of the Company. The Board crime and covers dealing, has further considered trade processing, administrative the increased risk of services, financial and cyber-attacks and has other operational functions. received reports and assurance from the Investment Manager regarding the controls
in place. ----------------------------------- -----------------------------------
In addition to the specific principal risks identified in the table above, the Company faces risks arising from the provision of services from third parties including the Investment Manager where succession planning for the individuals carrying out the day-to-day investment activities has been discussed. General risks are also present relating to compliance with accounting, legal and regulatory requirements, and with corporate governance and shareholder relations issues which could have an impact on reputation and market rating. Management of the services provided and the internal controls procedures of the third party providers is monitored and reported on by the Manager to the Board. These risks are all formally reviewed by the Board twice each year and at such other times as deemed necessary. Details of the Company's compliance with corporate governance best practice, including information on relations with shareholders, are set out in the Corporate Governance Statement within the Directors' Report of the AFR.
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.
Related Party Transactions
During the financial year no transactions with related parties took place which would materially affect the financial position or the performance of the Company.
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Annual Financial Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the Company and of the total return of the Company for that year. In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK accounting standards have been followed; and
- prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Company will continue in business.
The Directors confirm that the financial statements comply with the above requirements.
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.
The financial statements are published on www.allianztechnologytrust.com, which is a website maintained by the Investment Manager. The work undertaken by the Auditors does not involve consideration of the maintenance and integrity of the website and, accordingly, the Auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Visitors to the website need to be aware that legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.
Neither an audit nor a review provides assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular whether any changes may have occurred to the financial information since first published. These matters are the responsibility of the Directors but no control procedures can provide absolute assurance in this area.
The Directors each confirm to the best of their knowledge that:
a) the Financial Statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and return of the Company; and
b) the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.
The Directors confirm that the Annual Report and Financial Statements, taken as a whole are fair, balanced and understandable and provide the information necessary to assess the Company's position and performance, business model and strategy.
For and on half of the Board
Robert Jeens
Chairman
22 February 2018
Investment Portfolio as at 30 November 2017
Investment Sector(#) Sub-sector(#) Country Fair % of Value Portfolio GBP'000 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Technology, Technology, Hardware Storage Hardware Storage United Apple & Peripherals & Peripherals States 17,553 5.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet & Internet & Direct Direct Marketing United Amazon.com* Marketing Retail Retail States 17,167 5.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors Micron & Semiconductor United Technology Equipment Semiconductors States 16,642 5.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United Microsoft Software Systems Software States 14,808 4.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Data Processing & Outsourced United Square* IT Services Services States 12,972 4.3 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet Software Internet Software United Facebook & Services & Services States 12,014 3.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- IT Consulting United DXC Technology IT Services & Other Services States 9,291 3.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Arista Communications Communications United Networks Equipment Equipment States 8,971 2.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Palo Alto Communications Communications United Networks Equipment Equipment States 8,628 2.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Alphabet Internet Software Internet Software United Inc. & Services & Services States 8,546 2.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Top ten investments 126,592 41.5 Technology, Technology Samsung Hardware Storage Hardware, Storage South Electronics & Peripherals & Peripherals Korea 8,514 2.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Electronic Equipment Electronic Instruments Manufacturing United IPG Photonics* & Components Services States 8,464 2.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United ServiceNow Software Systems Software States 8,243 2.7 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors & Semiconductor Semiconductor United Teradyne Equipment Equipment States 7,981 2.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors & Semiconductor Semiconductor United
Lam Research Equipment Equipment States 7,754 2.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Paycom Application United Software* Software Software States 6,946 2.3 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors Applied & Semiconductor Semiconductor United Materials Equipment Equipment States 5,815 1.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Application United Workday Software Software States 5,758 1.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Sophos United * Software Systems Software Kingdom 5,689 1.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Baidu Internet Software Internet Software ADR & Services & Services China 5,131 1.7 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Top twenty investments 196,887 64.6 Semiconductors Infineon & Semiconductor Technologies Equipment Semiconductors Germany 4,913 1.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors & Semiconductor United NVIDIA Equipment Semiconductors States 4,778 1.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Application United Salesforce.com Software Software States 4,773 1.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet Software Internet Software Alibaba & Services & Services China 4,441 1.4 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United Proofpoint Software Systems Software States 4,228 1.4 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet Software Internet Software United Yelp & Services & Services States 4,050 1.3 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors & Semiconductor Semiconductor ASML Holding* Equipment Equipment Netherlands 3,858 1.3 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Application Temenos Software Software Switzerland 3,725 1.2 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Data Processing Amadeus & Outsourced IT Holdings* IT Services Services Spain 3,364 1.1 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Data Processing & Outsourced United Paypal IT Services Services States 3,148 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Top thirty investments 238,165 78.1 Home Entertainment Nintendo Software Software Japan 3,073 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Micro Application United Focus Software Software Kingdom 3,061 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- NetEase Internet Software Internet Software United ADR & Services & Services States 3,011 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Electrical Equipment Electronic Instruments Equipment & United Cognex* & Components Instruments States 2,987 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Automobile United Tesla* Automobiles Manufacturers States 2,959 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet Software Internet Software United Yandex & Services & Services States 2,914 1.0 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet & Internet & Direct Direct Marketing United Netflix* Marketing Retail Retail States 2,860 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Veeva Health Care Health Care United Systems Technology Technology States 2,855 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Technology, Technology, Hardware Storage Hardware Storage United NetApp & Peripherals & Peripherals States 2,753 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United Oracle Software Systems Software States 2,713 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Top forty investments 267,351 87.7 Technology, Technology, Microchip Hardware Storage Hardware Storage United Technology & Peripherals & Peripherals States 2,710 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet Software Internet Software Tencent & Services & Services China 2,688 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Tableau United Software Software Systems Software States 2,676 0.9 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Technology, Technology, Hardware Storage Hardware Storage United Pure Storage & Peripherals & Peripherals States 2,540 0.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United LendingClub* Consumer Finance Consumer Finance States 2,413 0.8 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Technology, Technology, Hardware Storage Hardware Storage United HP & Peripherals & Peripherals States 2,273 0.7 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United Blue Prism Software Systems Software Kingdom 2,056 0.7 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Barracuda United
Networks Software Systems Software States 1,839 0.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Internet Software Internet Software United Mercadolibre* & Services & Services States 1,798 0.6 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors & Semiconductor United Cree Equipment Semiconductors States 1,586 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Top fifty investments 289,930 95.1 Internet Software Internet Software United Okta & Services & Services States 1,557 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Alfa Financial Application United Software Software Software Kingdom 1,538 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Electrical Equipment, Instruments Technology United CDW & Components Distributors States 1,519 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Data Processing & Outsourced United Vantiv IT Services Services States 1,505 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Semiconductors & Semiconductor Broadcom Equipment Semiconductors Singapore 1,491 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Application United Autodesk Software Software States 1,386 0.5 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Guidewire Application United Software Software Software States 1,364 0.4 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Human Resources 51Job Professional & Employment United ADR Services Services States 1,337 0.4 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United Symantec Software Systems Software States 1,217 0.4 ---------------- ----------------------- -------------------- ------------- ---------- ----------- United Fireeye Software Systems Software States 1,201 0.4 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Top sixty investments 304,045 99.7 Semiconductors Cirrus & Semiconductor United Logic Equipment Semiconductors States 914 0.3 ---------------- ----------------------- -------------------- ------------- ---------- ----------- Total Investments 304,959 100.00 ------------------------------------------------------------------------------ ---------- -----------
(#) GICS Industry classifications
* Not Constituents of the Benchmark.
INCOME STATEMENT
for the year ended 30 November 2017
2017 2017 2017 2016 2016 2016 Revenue Capital Total Revenue Capital Total GBP GBP Return GBP GBP Return GBP GBP --------------------- ------------ ------------- ------------- ------------ ------------- ------------- Gains on investments held at fair value through profit or loss - 91,039,974 91,039,974 - 41,247,845 41,247,845 ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- (Loss) gains on foreign currencies - (515,184) (515,184) - 1,066,899 1,066,899 ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- Income 1,723,582 - 1,723,582 1,426,898 - 1,426,898 ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- Investment management fee and performance fee (2,116,945) (433,476) (2,550,421) (1,444,512) - (1,444,512) ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- Administration expenses (609,756) - (609,756) (461,918) - (461,918) ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- (Loss) profit before finance costs and taxation (1,003,119) 90,091,314 89,088,195 (479,532) 42,314,744 41,835,212 ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- Finance costs: interest payable and similar charges (1,536) - (1,536) (544) - (544) ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- (Loss) profit before taxation (1,004,655) 90,091,314 89,086,659 (480,076) 42,314,744 41,834,668 ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- Taxation (228,129) - (228,129) (191,541) - (191,541) ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- (Loss) profit attributable to ordinary shareholders (1,232,784) 90,091,314 88,858,530 (671,617) 42,314,744 41,643,127 ---------------------- ------------ ------------- ------------- ------------ ------------- ------------- (Loss) earnings per ordinary share (4.75p) 346.78p 342.03p (2.59p) 162.87p 160.28p ---------------------- ------------ ------------- ------------- ------------ ------------- -------------
The total return column of this statement is the profit and loss account 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.
The net profit for the year disclosed above represents the Company's total comprehensive income.
BALANCE SHEET
at 30 November 2017
2017 2017 2016 GBP GBP GBP ------------------------------ ------------ ------------- ------------- Non Current Assets ------------------------------ ------------ ------------- ------------- Investments held at fair value through profit or loss 304,958,713 209,653,974 ------------------------------- ------------ ------------- ------------- Current Assets ------------------------------ ------------ ------------- ------------- Other receivables 2,641,205 14,454,699 ------------------------------- ------------ ------------- ------------- Cash and cash equivalents 7,189,378 6,380,078 ------------------------------- ------------ ------------- ------------- 9,830,583 20,834,777 ------------------------------ ------------ ------------- ------------- Current Liabilities ------------------------------ ------------ ------------- ------------- Other payables (1,356,349) (13,817,374) ------------------------------- ------------ ------------- ------------- Net current assets 8,474,234 7,017,403 ------------------------------- ------------ ------------- ------------- Net assets 313,432,947 216,671,377 ------------------------------- ------------ ------------- -------------
Capital and Reserves ------------------------------ ------------ ------------- ------------- Called up share capital 7,075,720 7,075,720 ------------------------------- ------------ ------------- ------------- Share premium Account 41,810,716 37,097,551 ------------------------------- ------------ ------------- ------------- Capital redemption reserve 1,020,750 1,020,750 ------------------------------- ------------ ------------- ------------- Capital Reserve 281,523,911 188,242,722 ------------------------------- ------------ ------------- ------------- Revenue Reserve (17,998,150) (16,765,366) ------------------------------- ------------ ------------- ------------- Shareholders' funds 313,432,947 216,671,377 ------------------------------- ------------ ------------- ------------- Net asset value per ordinary share 1,178.6p 835.9p ------------------------------- ------------ ------------- -------------
The financial statements of Allianz Technology Trust PLC, company number 3117355, were approved and authorised for issue by the Board of Directors on 22 February 2018 and signed on its behalf by:
Robert Jeens
Chairman
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 November 2017
Called Share Capital up Share Premium Redemption Capital Revenue Capital Account Reserve Reserve Reserve Total GBP GBP GBP GBP GBP GBP -------------------- ---------- ----------- ------------ ------------ ------------- ------------ Net assets at 1 December 2015 7,075,720 37,097,551 1,020,750 146,601,753 (16,093,749) 175,702,025 --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Revenue Loss - - - - (671,617) (671,617) --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Shares repurchased into treasury during the year - - - (673,775) - (673,775) --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Capital profit - - - 42,314,744 - 42,314,744 --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Net assets at 30 November 2016 7,075,720 37,097,551 1,020,750 188,242,722 (16,765,366) 216,671,377 --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Net assets at 1 December 2016 7,075,720 37,097,551 1,020,750 188,242,722 (16,765,366) 216,671,377 --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Revenue loss - - - - (1,232,784) (1,232,784) --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Ordinary shares issued from treasury during the year - 4,713,165 - 3,189,875 - 7,903,040 --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Capital profit - - - 90,091,314 - 90,091,314 --------------------- ---------- ----------- ------------ ------------ ------------- ------------ Net assets at 30 November 2017 7,075,720 41,810,716 1,020,750 281,523,911 (17,998,150) 313,432,947 --------------------- ---------- ----------- ------------ ------------ ------------- ------------
Note A
Summary of Accounting Policies
The financial statements - have been prepared on the basis of the accounting policies set out below.
The financial statements have been prepared in accordance with The Companies Act 2006, FRS102 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 November 2014, as updated in January 2017.
In order to better reflect the activities of an investment 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, under the terms of the Articles of Association. The Company does not utilise this ability.
The requirements have been met to qualify for the exemption to prepare a Cash Flow Statement. The Cash Flow Statement has therefore been removed from the financial statements.
The accounting policies adopted in preparing the current year's financial statements are consistent with those of previous years.
The Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements as the assets of the Company consist mainly of securities which are readily realisable and significantly exceed liabilities. Accordingly, the Directors believe that the Company has adequate financial resources to continue in operational existence for the foreseeable future. The
Company's business, the principal risks and uncertainties it faces, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report on pages 58 to 62 of the AFR..
Valuation
As the Company's business is investing in financial assets with a view to profiting from their total return in the form of increases in fair value, financial assets are held at fair value through profit and loss in accordance with FRS 102 Section 11: 'Basic Financial Instruments' and Section 12 'Other Financial Instruments' .
Investments held at fair value through profit or loss are initially recognised at fair value. After initial recognition, these continue to be measured at fair value, which for quoted investments is either the bid price or the last traded price depending on the convention of the exchange on which the investment is listed. Gains or losses on investments are recognised in the capital column of the Income Statement. Purchases and sales of financial assets are recognised on the trade date, being the date which the Company commits to purchase or sell the assets.
Unlisted investments are valued by the Directors based upon the latest dealing prices, stockbrokers' valuations, net asset values, earnings and other known accounting information in accordance with the principles set out by the International Private Equity and Venture Capital Valuation Guidelines issued in December 2015.
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 96 of the AFR. The existence of an independent board of directors demonstrates that the company is free to pursue its own financial and operating policies and therefore, under FRS 102 Section 33: 'Related Party Disclosures', the investment manager is not considered to be a related party.
The Company's related parties are its directors. Fees paid to the Company's Board, including employer national insurance contributions, are disclosed in the Note 3 on page 97 of the AFR. There are no other identifiable related parties at the year end, and as of 22 February 2018.
Note B
Return per Ordinary Share
The total return per Ordinary Share of 342.03p (2016: 160.28p) is based on the weighted average number of Ordinary Shares in issue of 25,979,754 (2016: 25,981,157).
Note C
Investments
Included in the cost of investments are transaction costs on equity purchases which amounted to GBP186,894 (2016: GBP241,586) and transaction costs on equity sales which amounted to GBP151,431 (2016: GBP220,969).
Note D
2017 Financial Information
The financial information for the year ended 30 November 2017 has been extracted from the statutory accounts for that year. The auditor's report on those accounts was unqualified and did not contain a statement under either Section 498(2) or (3) of the Companies Act 2006. The Annual Financial Report has not yet been delivered to the Registrar of Companies.
2016 Financial Information
The financial information for the year ended 30 November 2016 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified and did not contain a statement under either Section 498(2) or (3) of the Companies Act 2006.
Annual Report and Financial Statements
The full Annual Financial Report will shortly be available to be viewed on or downloaded from the Company's website at www.allianztechnologytrust.com. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, nor forms part of this announcement.
Annual General Meeting
The Annual General Meeting of the Company will be held at 12 noon on Wednesday, 25 April 2018 at The City Club, 19 Old Broad Street, London, EC2N 1DS.
The company news service from the London Stock Exchange
END
FR UUSVRWUAUUAR
(END) Dow Jones Newswires
February 23, 2018 02:00 ET (07:00 GMT)
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