BMC Global Technology August 2026

The strongest contributors to the fund's performance in August were Servicenow, Microsoft, and Mediatek, while the weakest were Alphabet, Amazon, and Broadcom.   

August saw a robust recovery after the summer's incredible tech market turbulence. During the month, we saw declining volatility for the most high-octane tech stocks, while we also saw a broader stock market pick-up owing to sector rotation that primarily benefited the fund's software companies. 

What sticks out is the tech companies' high visibility into the whole value chain. This has led to the market's increasing faith in growth expectations for 2026 and 2027. Focus has thus shifted to 2028, and the market is now seeking signs of continued solid growth for that year too in order to extend the pick-up. 

The Q2 reporting season ended last week with Nvidia releasing its figures. The report was solid, beating expectations and surprising with the early announcement of guidance for next year. Growth will not be the 45% the market expected, but 70%, according to the company's own forecasts. This is a potent increase, although much of this seems to stem from the announced price increases of 15% or more for next year. The most positive comment was that the company could grow even more next year were it not for limitations in the supply chain. This suggests that demand will continue to exceed the offering in the years to come. 

We remain extremely positive as we see clear signs for the accelerating use and monetization of AI. We believe we are still at a relatively early stage for the technology and, above all, its areas of application.  

During the fall, we look forward to exciting analyst trips to meet companies in San Francisco, Arizona, South Korea, and Las Vegas, among others, at various equity conferences and investor trips. As usual, we will write blog posts on these trips.  

Key market events and trends

The MSCI World (EUR) index rose by 1.7% in August and is now up 15.6% so far this year. As you might remember, we started the year anticipating 14% profit growth for 2026—which we have since revised to 22%, with a further 14% growth expected for 2027. This solid profit performance has pushed the equity market upward, despite headwinds from higher energy costs and rising long-term interest rates. The US recently "celebrated" USD 40 trillion in national debt, which has contributed to rising credit demand, pushing bond yields up further.

Q2 2026 reports surpassed expectations by a fair margin. However, the results were bolstered somewhat by unrealized value increases in SpaceX and Anthropic, which companies like Alphabet and Amazon have accounted for as revenue. Adjusted for these non-recurring items, underlying profits grew by a solid 24% in both the US and Europe.

We also note that Nvidia's revenue growth of 100% and management's guidance for 70% sales growth next year—far exceeding analyst expectations—which offers additional support for the AI expansion theme.

We expect that the markets will continue to rise during the second half of the year, albeit with the usual volatility in September. As we move into Q4 2026, attention will focus even more on the mid-terms in the US and whether the Trump administration can maintain its control of the House and the Senate. 

Portfolio changes

During August, we bought two new holdings: Auras Technology and CAF. We did not sell any during the month. Auras Technology is a Taiwanese company that manufactures waterproof equipment for data centers. It is a market challenger and trades at an appealing valuation. CAF is a European manufacturer of trains and buses that benefits from the electrification of the vehicle fleet, which should lift margins.   

The fund's positioning

The fund now comprises 43 companies exposed to a range of sectors, geographies and drivers, with companies chosen on their own merits. We do not limit ourselves to IT companies but also invest in those across various sectors benefiting from technology. We believe a concentrated but also diversified, actively managed global technology fund focused on stockpicking has all the prerequisites to deliver great returns to its unitholders over time. 

*MSCI AC World NTR $ in EUR