Allianz Technology Trust (ATT) beat its benchmark again in 2025. This was supported by strong gains in semiconductor stocks and continued momentum across the global technology sector.
The trust reported NAV (net asset value) total return of 24.7% for the year to 31 December 2025. This outperformed the 20% gain in the Dow Jones World Technology Index. NAV per share rose to 571.7p from 458.6p a year earlier. Shareholders benefited slightly more. In fact, the trust’s share price total return hit 25.8%, helped by a modest narrowing of the discount to NAV.
| Allianz Technology Trust (ATT) | Price: 532.38p (+0.45%) | Market cap: £1.87bn |
The result follows a standout 36% return in 2024. This extends a strong multi-year run for the £1.87 billion investment trust. Over the past three financial years the portfolio has generated a cumulative return of around 106.7%. This is slightly ahead of its benchmark.
‘Those with a longer memory will point out 2022’s -33.6%. The point I make is twofold – the volatility associated with the tech sector can be painful, but the rewards when they do come have also been substantial’, said chairman Tim Scholefield.
‘This is the balance one has to remember when investing in tech.’
Scholefield added that 2025’s performance was achieved despite a challenging macroeconomic backdrop. This backdrop was marked by geopolitical tensions and periods of sharp volatility in technology stocks.
‘2025 saw its fair share of volatility resulting from the febrile global geopolitical backdrop’, he said. ‘Nonetheless, it has been a positive year.’
Semiconductor strength and broader leadership
The trust’s investment approach differs from the benchmark by maintaining lower weightings in the largest technology companies. It also allocates more capital to mid- and large-cap firms further down the market-capitalisation spectrum. That positioning contributed to performance. As leadership broadened beyond the biggest technology names, the benefits became clear.
Semiconductors were a major driver of returns, reflecting the sector’s central role in building artificial-intelligence infrastructure. Semiconductor holdings accounted for roughly one-third of the portfolio and delivered average returns of more than 45% during the year.
Key contributors included Micron Technology (MU), Lam Research (LRCX) and Broadcom (AVGO), alongside other technology and infrastructure-related holdings such as Amphenol (APH), Celestica (CLS) and Robinhood Markets (HOOD). While mega-cap companies such as Nvidia (NVDA), Alphabet (GOOG) and Microsoft (MSFT) drove benchmark gains, the trust also benefited from holdings outside the index.
Portfolio manager Mike Seidenberg said artificial intelligence remains the most significant structural theme shaping the technology industry.
10 year performance vs NAV and benchmark
‘AI continues to underpin strong earnings growth across many parts of the technology ecosystem’, he said. He also noted that the portfolio includes companies supporting the broader digital infrastructure behind AI, including data-centre suppliers and equipment manufacturers.
Navigating volatility
Markets experienced several sharp swings during the year, including a sell-off following tariff proposals in April and recurring concerns about the possibility of an ‘AI bubble.’ The trust’s long-term strategy meant only limited portfolio changes during these episodes. However, the manager occasionally added to positions when valuations fell.
The board also continued its discount-management programme, repurchasing £125 million of shares in 2025. This helped narrow the discount to NAV from 8.6% to 7.8%. A further £21.4 million of buybacks has been completed since the start of 2026.
Looking ahead, the board expects volatility to remain a defining feature of the technology sector. However, it maintains that structural demand for digital infrastructure, semiconductors and AI-driven innovation should continue to support long-term growth.
‘The signals remain strong for improving revenue growth’, Scholefield said. He added that the trust will continue focusing on companies benefiting from transformative technological trends.
Disclaimer: The author Steven Frazer has a personal interest in Allianz Technology Trust, Broadcom and Nvidia.
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