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)
Allianz Technology (LSE:ATT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Allianz Technology (LSE:ATT)
Historical Stock Chart
From Apr 2023 to Apr 2024