Liontrust Global Technology Fund doubles China exposure to 11%

One of the top-performing global technology funds is making a bet that the next leg of tech returns won’t come from Silicon Valley. Liontrust’s Global Technology Fund has nearly doubled its China allocation from roughly 6% to 11%, rotating profits out of US heavyweights and into Chinese companies riding the AI wave.

The fund posted returns of 13.3% as of May 2025, landing it in the first quartile among its peer group. Meanwhile, the broader MSCI World IT index was actually in negative territory over the same stretch.

What’s driving the China rotation

US tech stocks had an extraordinary run, and some of the biggest names, Nvidia and Apple among them, started looking stretched. The fund took profits on those positions and redirected capital toward Chinese tech companies it viewed as undervalued relative to their growth trajectories.

Tencent and Meituan became key contributors to fund performance in February 2025. That timing followed DeepSeek’s AI model announcement in late January, which sent a jolt of optimism through China’s tech sector by demonstrating that Chinese companies could compete credibly in the AI arms race without relying on the most advanced Western chips.

The fund has also added exposure to Alibaba and Xiaomi, both of which have benefited from renewed investor enthusiasm around Chinese tech. Alibaba in particular delivered positive updates in early 2025 that helped cement the case for increased allocation.

The broader strategy and what it tells us

Liontrust’s Global Technology Fund targets five distinct technology themes, with over 80% of its holdings concentrated in IT and communication services stocks globally. The fund is managed by Liontrust Asset Management, a UK-based firm.

Chinese internet giants have spent years restructuring after Beijing’s regulatory crackdown that began in 2021. Tencent alone has an ecosystem spanning gaming, payments, social media, and enterprise software that touches over a billion users.

What this means for investors

Liontrust’s fund doesn’t hold any digital assets or tokens. However, the AI infrastructure buildout in China directly supports the semiconductor supply chains that underpin crypto mining and blockchain computation.

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