REG - Polar Cap Tech Tst - UNAUDITED RESULTS FOR SIX MONTHS TO 31 OCT 2022
12/12/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221212:nRSL2999Ja&default-theme=true
RNS Number : 2999J Polar Capital Technology Trust PLC 12 December 2022
POLAR CAPITAL TECHNOLOGY TRUST PLC
UNAUDITED RESULTS ANNOUNCEMENT FOR THE SIX MONTHS TO 31 OCTOBER 2022
FINANCIAL HIGHLIGHTS
(Unaudited) (Audited*) Movement %
As at 31 October 2022 As at 30 April
2022
Total net assets £2,711,516,000 £3,050,985,000 -11.1
Net Asset Value (NAV) per ordinary share~ 2095.24p 2305.13p -9.1
Price per ordinary share 1894.00p 2040.00p -7.2
Benchmark 3193.51 3504.44 -8.9
Dow Jones World Technology Index (total return, Sterling adjusted, with the
removal of relevant withholding taxes)
Discount of ordinary share price to NAV per ordinary share~ (9.6%) (11.5%)
Ordinary shares in issue* 129,413,314 7,901,686 132,356,426 4,958,574 -2.2
Ordinary shares held in treasury* 59.4
* The issued share capital on 9 December 2022 (latest practicable date) was
137,315,000 ordinary shares of which 8,337,777 were held in treasury.
KEY DATA
For the six months to 31 October 2022
Local Currency Sterling Adjusted
% %
Benchmark (see above) -16.4 -8.9
Other Indices over the period (total return)
FTSE World -8.6 0.3
FTSE All-share - -5.8
S & P 500 composite -5.5 3.6
Nikkei 225 3.9 -0.5
Eurostoxx 600 -6.9 -4.3
As at As at
Exchange rates 31 October 2022 30 April 2022
US$ to £ 1.1514 1.2555
Japanese Yen to £ 171.13 162.66
Euro to £ 1.1649 1.1901
No interim dividend has been declared for the period ended 31 October 2022,
nor were there for periods ended 31 October 2021 or 30 April 2022, and there
is no intention to declare a dividend for the year ending 30 April 2023.
~See Alternative Performance Measure below.
* The financial information for the six-month periods ended 31 October 2022
and 31 October 2021 have not been audited. The figures and financial
information above and in the following pages, for the year ended 30 April 2022
are an extract from the latest published Financial Statements and do not
constitute statutory accounts for that year.
References throughout this document to "the Company" or "the Trust" relate to
Polar Capital Technology Trust PLC while references to "the portfolio" relate
to the assets managed on behalf of the Company.
For further information please contact:
Jumoke Kupoluyi, ACG- Company Secretary Ed Gascoigne-Pees
Polar Capital Technology Trust PLC Camarco
Tel: 020 7227 2700 Tel: 020 3757 4984
CHAIR'S STATEMENT
Dear Shareholders,
I am pleased to present to you my first report as Chair of the Company; the
six months under review has been a somewhat testing time where we have seen
extremely volatile markets, rising inflation and energy prices, the
continuance of the war in Ukraine and then steep central bank interest rate
rises. All of these events have without doubt affected the sector in which the
Company operates. In the following, the Investment Manager outlines the
performance of the portfolio for the six-months to 31 October 2022 and how
these events have impacted the portfolio and the sector in general.
The technology sector led the markets in 2020/21 and has suffered most acutely
in 2022 in the post pandemic era of central bank driven monetary policy
tightening and slower growth. However, the global economy continues to
digitise and technology remains a driving force of this and a huge market
sector. What is important when investing in the sector is to look deeply
within it and to identify those companies that can help investors meet their
longer term investment goals. With a strong bench of analysts and strong
investment discipline Ben and his team at Polar are well placed to deliver on
this.
THE BOARD
As announced previously, Sarah Bates retired as Chair of the Company and the
Board on 8 September 2022 at the Company's AGM following 12 years of service
on the Board. There have been no other changes to the membership of the Board
in the six months ended 31 October 2022. Biographical details of all Directors
are available on the Company's website and are provided in the Company's
latest Annual Report for the year ending 30 April 2022.
GEARING
As at 31 October 2022, the Company had two, two-year fixed rate, term loans
with ING Bank N.V expiring in September 2024 (JPY 3.8bn and USD36m). The JPY
loan has been fixed at an all-in rate of 1.13% pa and the USD loan has been
fixed at an all-in rate of 5.43% pa. The prior loans were repaid in full at
expiry.
SHARE BUY-BACKS
As described in the full year report and accounts for the year ending April
2022, the Board continually monitors the discount at which the Company's
ordinary shares trade in relation to the Company's underlying NAV. The
discount has widened over the last year reflecting the considerable change in
sentiment towards technology stocks and market volatility generally. The Board
discusses the market factors giving rise to any discount or premium, the long
or short-term nature of those factors and the overall benefit to Shareholders
of any actions. The Company does not have an absolute target discount level at
which it buys back shares, but has historically bought back significant
amounts of the outstanding share capital when deemed appropriate. This does
not preclude a more active approach as discounts widen and the Investment
Manager may consider that a single purchase or a series of purchases of shares
in current or greater volumes, to enhance the Company's NAV per share, would
be an attractive investment of the Company's cash resources, given the
positive long-term prospects for the Company's portfolio. In the six months to
31 October 2022, the Company has repurchased a total of 2,943,112 shares into
treasury representing 2.3% of the total issued capital. Since the period end
to 9 December 2022, we have bought back a further 436,091 shares.
AUDITOR
KPMG LLP were re-appointed as the Company's external auditor at the AGM held
on 8 September 2022.
PRINCIPAL RISKS AND UNCERTAINTIES
The Directors consider that the principal risks and uncertainties faced by the
Company for the remaining six months of the financial year, which could have a
material impact on performance, remain consistent with those outlined in the
Annual Report for the year ended 30 April 2022. A detailed explanation of the
Company's principal risks and uncertainties, and how they are managed through
mitigation and controls, can be found on pages 65 to 69 of the Annual Report
for the year ended 30 April 2022. The Company has a risk management framework
that provides a structured process for identifying, assessing and managing the
risks associated with the Company's business. The investment portfolio is
diversified by geography which mitigates risk but is focused on the technology
sector and has a high proportion of non-Sterling investments. Further detail
on the Company's performance and portfolio can be found in the Investment
Managers' Review.
RELATED PARTY TRANSACTIONS
In accordance with DTR 4.2.8R there have been no new related party
transactions during the six-month period to 31 October 2022 and therefore
nothing to report on any material effect by such transactions on the financial
position or performance of the Company during that period. There have
therefore been no changes in any related party transaction described in the
last Annual Report that could have a material effect on the financial position
or performance of the Company in the first six months of the current financial
year or to the date of this report.
GOING CONCERN
As detailed in the notes to the financial statements and in the Annual Report
for the year ended 30 April 2022, the Board continually monitors the financial
position of the Company and has considered for the six months ending 31
October 2022 a detailed assessment of the Company's ability to meet its
liabilities as they fall due. The review also included consideration of the
level of readily realisable investments and current cash and debt ratios of
the Company and the ability to repay the outstanding bank facilities.
Repayment of the bank facility would equate to approximately 20.4% of the
total cash and cash equivalents readily available to the Company as at 31
October 2022.
In light of the results of these tests on the Company's cash balances and
liquidity position, the Directors consider that the Company has adequate
financial resources to enable it to continue in operational existence. Having
carried out the assessment, the Directors are satisfied that it is appropriate
to continue to adopt the going concern basis in preparing the financial
results of the Company. The Directors have not identified any material
uncertainties or events that might cast significant doubt upon the Company's
ability to continue as a going concern.
The assets of the Company comprise mainly of securities that are readily
realisable and accordingly, the Company has adequate financial resources to
meet its liabilities as and when they fall due and to continue in operational
existence for the foreseeable future.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors of Polar Capital Technology Trust plc, which are listed in the
Directors and Contacts Section, confirm to the best of their knowledge:
· The condensed set of financial statements has been prepared in
accordance with UK-adopted International Accounting Standard 34, and gives a
true and fair view of the assets, liabilities, financial position and profit
or loss of the Company as at 31 October 2022;
The Interim Management Report includes a fair review of the information
required by:
a) DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being
an indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
The Half Year Report for the six-month period to 31 October 2022 has not been
audited or reviewed by the Company's Auditor. The Half Year Report for the
six-month period to 31 October 2022 was approved by the Board on 9 December
2022.
On behalf of the Board
Catherine Cripps
Chair
INVESTMENT MANAGER'S REPORT
Market Review
The fiscal half year to 31 October 2022 saw global markets gyrate in the face
of persistently high inflation, aggressive central bank tightening actions and
a weaker economic growth outlook. The IMF's October World Economic Outlook
forecasts global growth to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in
2023, down from its April expectations of 3.6% for both years, and well below
its January outlook for 4.4% and 3.8% in 2022 and 2023 respectively.
Investors found themselves navigating a highly uncertain, macro-led market
with a wide range of possible macroeconomic and market outcomes. The US once
again outperformed global markets as the S&P 500 Index returned +3.6%,
ahead of those in Europe (Eurostoxx 600 -4.3%), Japan (Topix -1.5%) and Asia
ex-Japan (MSCI Asia ex-Japan -14.7%). US returns, however, were this time
driven by the 'revenge of the old economy' as the Dow Jones Industrial Average
Index returned 10% against the NASDAQ's -1.9%. Cyclical and inflation-exposed
sectors were particularly strong, with the S&P Energy and Industrials
indices returning +34.7% and +9.7% respectively (all returns are in sterling
terms, unless stated otherwise).
Inflation remained the primary macroeconomic concern for markets during the
period. In January, the IMF projected 2022 advanced economy inflation at 3.9%,
which it updated to 7.2% by October. Upward pressure was driven by ongoing
supply-chain issues globally, the impact of Russia's invasion of Ukraine on
energy prices, especially in Europe, and continued labour market tightness.
The latter was particularly apparent in the US where monthly non-farm payroll
(NFP) additions averaged 347,000 during the period, and average hourly
earnings (AHE) growth averaged +0.37% month on month.
Given persistent high inflation and a desire to retain credibility, the US
Federal Reserve (Fed) embarked on the steepest tightening cycle since the
early 1980s, and increased the magnitude of rate hikes from their initial 25ps
in March to 50bps in May, and 75bps at each of the June, July and September
meetings, despite "not actively considering" this at the May meeting.
Tightening actions pushed the fed funds rate implied for February 2023 from 3%
at the end of April to just shy of 5% at the end of October. Fed officials
recognised that given relatively strong consumer and corporate balance sheets
, a higher terminal rate may be required for a longer period to bring
inflation back into the target range.
In October, the Fed reiterated that rate rises impact economic activity with a
"long and variable lag" as they attempted to navigate the narrowing path to a
soft landing. However fresh four decade-high Consumer Price Inflation (CPI)
readings gave scant opportunity for any kind of Fed pivot, with even less
volatile core year on year Personal Consumption Expenditure growth ex-food and
energy (the Fed's preferred measure) averaging 4.9% during the half-year.
Financial conditions tightened significantly during the period as 10-year
Treasury yields increased from 2.93% to 4%, and real US rates went from
negative territory to +153bps. The Federal Open Market Committee ('FOMC')
officials were quick to reiterate their hawkish posture when rate declines or
market rallies coincided with any meaningful loosening of financial
conditions, and quantitative tightening (QT) started as planned from May.
The cumulative impact of tightening began to be felt most acutely in the US
property market as 30-year mortgage rates climbed from c5.5% in May through 7%
in October, and the National Association of Home Builders Market Index fell
from 83 to 38, near Covid-era lows. Longer-term inflation expectations did at
least remain well anchored with the University of Michigan survey of 5-10-year
forward consumer inflation expectations remaining in the 2.9-3.1% range and
market-implied 5yr-10yr forward breakevens staying below 2.5%.
The policy response was highly synchronised globally - the percentage of
central banks hiking rates has recently exceeded 80%, greater than previous
peaks of c70% in 1995. The second-order impact of tightening provoked the
highest level of systemic stress in the UK as Liz Truss's government announced
the biggest tax cut in 50 years to stimulate growth, paid for by the issuance
of more debt. The combination of a greater budget deficit and the prospect of
higher interest rates, led to a plunge in both sterling (the pound sank to its
lowest level against the dollar since 1985) and gilt prices (surging yields).
This forced the Bank of England to provide emergency liquidity in the gilt
market to support UK pension funds, to allow them to meet margin and
collateral requirements under their liability-driven investment (LDI)
commitments.
It was, at least, a period in which Covid case numbers were no longer the key
driver of markets, although Covid's lingering impact remained a driver of
supply-side inflation as China maintained a strict zero Covid policy
throughout. Unfortunately, geopolitical risks were still elevated as the war
in Ukraine progressed, Russia shut of gas supplies to Europe, and China
dialled up hawkish rhetoric around Taiwan as President Xi attempted to
successfully consolidate power at the Communist Party Congress. The yuan fell
to levels against the dollar not seen since 2008.
However, political developments were supportive of some parts of the market,
most notably clean energy and defence. US President Joe Biden signed the
Inflation Reduction Act - a slimmed-down version of the Build Back Better bill
- into law, which included combating climate change via tax credits aimed at
reducing carbon emissions, and for households to offset energy costs as well
as investments in clean energy production. The war in Ukraine has also
prompted a more aggressive move to accelerate clean power adoption to
strengthen energy security and, since the Russian invasion, 19 EU countries
have set new records for the use of renewable power, bringing total EU wind
and solar power generation to 24%, while Russian natural gas flows are down
more than 80% from pre-war levels.
Market breadth was weak throughout the period, with an average of 25% of New
York Stock Exchange companies trading above their 200-day moving average, and
liquidity was generally poor (S&P 500 futures book depth touched a
five-year low). Investor sentiment was similarly bearish, with the AAII
Bull-Bear Index measuring an average of -25, and the BoA Fund Manager Survey
indicating investors retained high cash levels throughout the period, reaching
6.2% at the end of October, higher than the summer 2008 (5.4%) and March 2020
(5.9%), and the highest level since April 2001.
Technology review
The technology sector lagged the broader market as macroeconomic headwinds
weighed on company results and outlooks, investors rotated into more defensive
and pro-inflation sectors, and higher rates weighed on growth and
longer-duration asset valuations. The Dow Jones World Technology Index
returned -8.9%, in sterling terms, although absolute returns were flattered by
currency given the dollar appreciated by +9.6% versus sterling during the
period.
The technology sector outside the US once again performed less well, returning
-17.5%. Small-cap technology companies performed slightly better than their
large-cap peers, with the Russell 2000 [small cap] Technology Index returning
-4.1% against the Russell 1000 [large cap] Technology Index's -5.6%. However,
loss-making technology companies returned -21.2% as investors' preference for
profitability and aversion to high levels of debt and stock-based compensation
became more apparent. The weakness of mega-cap technology companies (ex-Apple)
was also notable towards the end of the period, as the Goldman Sachs TMT
MegaCap Tech basket returned -14.8%. Each company has idiosyncratic drivers of
performance but as a group they had previously benefitted from strong equity
inflows and perceived safe-haven status. After doubling in valuation during
the pandemic, mega-cap technology now trades close to its long-term median
valuation.
At the subsector level, none were immune from the macroeconomic impacts. The
semiconductor sector as measured by the Philadelphia Semiconductor Index (SOX)
returned -9.7%, as weakness in handset and PC markets saw material near-term
estimate reductions across the sector as demand softened and inventories
corrected. This weakness and slowing hyperscale cloud growth also raised
concerns around data centre spending on semiconductors, although this has yet
to show up in numbers or data centre capex indications and commentary. Auto
and industrial markets have remained relatively resilient thus far, and
companies with high exposure here generally held up well. Semiconductor
production equipment (SPE) makers have struggled with supply constraints.
Logic and foundry World Federation of Exchanges ("WFE") spending outlooks
remain robust, but memory capex has been lowered to adjust supply given softer
end demand. Towards the end of the period, both semiconductor and SPE
companies were proactive in cutting numbers, and many stocks acted well on
poor results and weaker guides.
Markets have also had to contend with new rules set by the Biden
Administration that further restrict the sale of both semiconductors and
semiconductor manufacturing equipment into China. The most detrimental rule is
the new control on 'US persons', who are now restricted from specific
activities that support the development or production of restricted integrated
circuits (ICs) in China without a licence. The aim is said to be limiting
China's access to advanced computing for its military modernisation, advanced
intelligence collection/analysis and surveillance, but will likely have wider
ramifications given that the precise end use of such items cannot be
determined by the US person. Several SPE companies have already removed China
from their guidance, but 'semiconductor sovereignty' policies (including
meaningful subsidies) elsewhere such as the US CHIPS and Science Act will
likely provider longer-term opportunities, as will the continued balkanisation
of supply chains as companies prioritise supply resilience.
More concerning for the broader technology sector was the extent of the
slowdown in public cloud growth as the period progressed. Aggregate cloud
revenue growth slowed from +36% in the June quarter to +32% in September, and
guidance indicates growth is expected to slow to the high-20s for Q4. This was
a disappointment despite the public cloud's vast scale at >$160bn
annualised revenue run rate. Customers are optimising their spend and a
tighter IT budget environment is slowing the shift of existing workloads to
the cloud, given the up-front costs involved in re-factoring and
re-architecting applications. Corporate IT spending expectations certainly
tempered during the period: CIO spending surveys initially suggested steady
mid-single digit 2022 enterprise IT budget growth, followed by similar growth
in 2023, but these expectations were downgraded to low single digits by the
end of the period as financial conditions tightened and the economy slowed.
Spending priorities did, however, remain consistent with cloud, security,
digital transformation and artificial intelligence (AI) remaining the focus
for most enterprises.
In software, the Bloomberg Americas Software Index returned -4.6%, supported
by strong returns from legacy players who have limited growth and innovation
but generally strong pricing power and undemanding valuation multiples.
Conversely, diminished risk appetite and a higher rate environment has led to
a material valuation reset in the higher growth parts of the sector and saw
the Goldman Sachs Expensive Software basket return -14.3%. The highest-growth
software companies have seen their EV/forward sales multiple compress to 8.7x,
more than 75% off February 2021 highs (35.9x) and back in line with the
2014-18 average (8.7x), well below the 17.4x average of the past five years.
Companies growing 15-30% were not spared despite their lower starting
valuation multiples. They saw multiples compress to 5.9x EV/forward sales and
now trade -41% below their trailing five-year average multiple (10x) and below
the average 2022 software takeout multiple of 7.6x (Jefferies).
During the period, many software companies highlighted greater deal scrutiny,
longer sales cycles, deal compression, and in later months found it more
difficult to expand sales as customers retrenched. The impact was generally
more pronounced in European and small/mid-sized business customers, further
compounding FX headwinds given software companies' relatively high non-US
revenue mix. Cybersecurity companies tended to see stronger results and hold
up better than other areas (the HACK ETF returned +3.6%) given the
defensibility of spend and heightened risk of nation state cyberattacks, given
the war in Ukraine and escalating US/China tensions.
In the internet sector, the echoes of the Covid period continued to impact
results, from still-slowing gross merchandise value (GMV) growth at many
e-commerce companies, inventory issues at retailers and an ongoing travel and
entertainment spending boom, as consumer spending continued to shift from
goods to services. The NASDAQ Internet Index returned -10.2% as some of the
largest internet companies delivered disappointing results and guided to a
weaker than normal holiday season. Advertising budgets have been pressured
both by the economy and - in social media - exacerbated by market share losses
to TikTok, and the ongoing headwind from Apple's IDFA privacy changes which
has curtailed the efficacy and measurement of ad targeting. Sentiment remained
very negative throughout the period and internet company multiples compressed
back to 2013 levels at 13.4x on an EV/T12m EBITDA basis, c.40% and c.34% below
their five and 10-year averages of 22.4x and 20.2x respectively. A meaningful
slowdown in revenue growth was widely anticipated, but investors were further
disappointed by the lack of appropriate cost discipline at some of the largest
internet companies despite a stream of news flow about hiring freezes. The
market continued to punish companies unable or unwilling to cut costs to
protect margins in an uncertain environment but rewarded those that were.
Payments results were also impacted by slowing e-commerce trends and
deterioration in credit conditions, although competition for customers and
incremental payment flows became less intense which benefitted some of the
larger established players. The ongoing travel recovery also helped those with
exposure to cross-border spending.
Portfolio performance
The Trust modestly underperformed its benchmark, with the net asset value per
share declining by 9.1% during the first half versus 8.9% for the Dow Jones
World Technology Index. The largest individual detractor to relative
performance was our underweight position in Apple, although the market
rotation away from growth towards value stocks during the period proved more
costly in aggregate. Fortunately, the impact of this was ameliorated by our
underweight allocation to Asia, while our average cash position of 4.7% and
NDX put options contributed 87bps and 19bps to relative performance
respectively. The Trust's share price fell by 7.2% reflecting the 9.1%
decrease in NAV offset by the discount narrowing from 11.5% to 9.6% during
the period. We continue to monitor the discount and the Trust bought back
2,943,112 shares during the period.
The half-year proved another active period for the portfolio as much tighter
financial conditions weighed on global growth. During the period, we modestly
raised cash by c3%, offset by less NASDAQ put option exposure, while our
relative underweight position in mega-cap (>$100bn market cap) stocks
increased from -14.8% to -24.1%, in favour of large caps ($50-$100bn market
cap). In part, this reflected our decision to modestly reduce our US exposure
in favour of Japanese, European and Latin American stocks that had previously
underperformed. Higher interest rates and energy prices particularly weighed
on e-commerce, advertising and social media companies. We exited some of our
related names including DoorDash, Etsy and Snap. We also further reduced our
remaining exposure to work from home beneficiaries, as earlier
pandemic-related demand strength became better understood as pull-forward; we
sold both Twilio and Zoom. Higher risk-free rates and wider high-yield spreads
saw us reduce exposure to longer-duration companies and/or those with weaker
balance sheets, including Coupa Software, Ocado and Seagate Technology. The
proceeds were redirected in favour of next-generation infrastructure software
companies, such as Confluent and Gitlab, and payment-related assets, including
Adyen, Bill.com, Flywire and GMO Payment Gateway, following significant
valuation compression. We also took advantage of lower growth stock valuations
within medical technology (DexCom; Intuitive Surgical). However, we continue
to tread carefully given the challenging investment backdrop, augmenting our
new growth stocks with more defensive ones such as Analog Devices, which
should fare relatively well if financial conditions deteriorate further.
At the stock level, our relative underweight position in Apple (+7%) proved
the most significant detractor to relative performance, despite it being one
of our largest absolute positions (averaging 9.6% of NAV versus c17.5% in the
benchmark). Outpacing the index by 15% during the half-year, Apple dragged on
our relative performance by -112bps. Apple was also partly responsible for the
underperformance of Snap (-61%) and Unity Software (-51%) following
privacy-related change to IDFA ('Identifier for Advertisers'), that resulted
in significant loss of 'signal' at social media and mobile game companies
reliant on advertising revenue. Higher risk-free rates, and some macroeconomic
weakness, weighed on cloud software and long-duration stocks like CloudFlare
(-28%), MongoDB (-43%) and Square (-34%) that suffered further, and
significant, valuation compression.
Pronounced PC market weakness also took its toll on a number of semiconductor
stocks including Advanced Micro Devices (-23%) and Marvell Technology (-25%).
As ever, there were also a few genuine disappointments at the likes of
Coursera, CS Law and Kornit Digital, although these were largely contained to
the portfolio tail. Performance was also negatively impacted by the
outperformance of incumbents such as IBM (+15%) and Oracle (+17%) where we
have zero exposure. While these assets have benefited from safe haven status
and the rotation towards value stocks, we continue to eschew them as legacy
vendors on the wrong side of technology change and IT budget migration.
While the half-year proved a challenging period for our growth-centric
approach, the Trust benefited from the combination of cash and NASDAQ puts
(discussed above) as well as a number of strong individual stock performances.
Robust data centre spending growth benefited both Arista Networks (+15%) and
Pure Storage (+14%) while strong earnings progress helped chipmakers Lattice
Semiconductor (+11%) and ON Semiconductor (+29%). The Trust also benefited
from strength at Enphase Energy (+108%) as demand for solar inverters
increased significantly against a backdrop of sharply higher energy prices,
incremental regulatory support, and the desire for greater energy security.
Likewise, strong demand for public security technology offered by Axon
Enterprise (+42%) and display technology from E Ink (+18%), added to relative
performance. In addition, the Trust benefited from outstanding returns in a
few tail names such as RFID chipmaker Impinj (+155%) and Wise (+68%), which we
added back after pronounced share-price weakness. Finally, the Trust
benefitted from the underperformance of a number of larger benchmark positions
where we have underweight or zero positions, including Intel (-28%), Meta
Platforms (Meta) (-49%) and Tencent (-40%).
Market outlook
There is little to obviously like about the immediate market outlook: slowing
growth, record inflation and central banks embarrassed by how far inflation
has surpassed their long-term targets. As discussed during our most recent
annual report, the range of potential outcomes, good and bad, looks unusually
wide. We cannot know how fast inflation will fall and we continue to believe
the Fed and other central banks will prioritise credibility ahead of the
economy. Few investors today including us - have experience managing
portfolios against a backdrop of persistently high inflation, so market
responses and activity could be less predictable - witness the extreme
volatility across asset classes around FOMC press conferences and CPI prints.
We expect this market volatility to persist as risk is repriced until
policymaker and shareholder interests are better aligned. This may result in a
more volatile period of performance for the sector and the Trust.
In terms of downside risks, the most prominent remains inflation should it not
come under control. This could be due to service inflation remaining elevated
as a function of high unit labour costs, which will not slow without
significant productivity improvement or nominal wage growth slowing to 3.5%,
even as weaker demand improves goods inflation. There are also more structural
issues to contend with relating to a structural shortage of labour in many
areas of the market (wage inflation was ticking up before Covid), shortages of
production capacity in key commodities and the balkanisation of global supply
chains. Second, further energy shocks or the impact of pent-up Chinese demand
upon reopening could result in incremental upward pressure. Policymakers may
also not have the necessary tools at their disposal to tackle systemic
imbalances. For instance, further fiscal stimulus may prove counterproductive
while the political will to deliver painful supply-side reform, for example in
the flexibility of labour laws or immigration, may not be present.
As such, monetary policy may still surprise to the upside or remain
restrictive for longer than markets are currently anticipating. Fed Chair
Jerome Powell himself has warned that the nature of the current cycle (strong
corporate/consumer balance sheets and a tight labour market, coincident with
slower growth) might require a higher terminal fed funds rate and staying
there for longer than normal; St Louis Fed Governor James Bullard has argued
that various Taylor Rule estimates suggest the fed funds rate may have to
reach a minimum of 5% and potentially as high as 7%. Tighter than expected
monetary policy could continue to weigh on valuations that, while back at
long-term averages, could fall further given the atypical market backdrop.
However, negative earnings revisions represent a more likely source of
downside risk from here. The investment bank Goldman Sachs (GS) recently
lowered its 2023 EPS growth forecast to 0% having previously expected 3% after
the S&P 500's net margins contracted during Q3 for the first time since
the pandemic on a y/y basis.
The scale of downward revisions depends on how much monetary pressure is
required to becalm inflation and, by extension, whether a US recession can be
avoided. While economies in the UK and Europe are already likely contracting,
a US recession is not a foregone conclusion. Although a recent Wall Street
Journal survey of economic forecasters estimated the probability at 65%, GS
believe the chances are nearer 30%. Despite this range of forecasts, the
spread between two and 10-year Treasury yields at -62bps is as negative as it
has been for at least 40 years. As a reminder, 2yr10yr yield curve inversions
have historically presaged recessions. The yield curve today suggests the Fed
will start cutting rates in late 2023 or early 2024, which presupposes their
actions will likely have had the desired effect (ie dampening inflation) or
that a deeper recession will have required a volte-face. According to Ned
Davis Research, the median recessionary bear market sees the Dow Jones
Industrial Average Index decline by more than 32% as compared to the 21%
contraction registered at the October lows. Finally, it would be remiss not to
mention the more meaningful risk associated with (investment) regime change:
the end of the low inflation, low rate world in favour of a less friendly,
less familiar one. The end of the peace dividend, peak globalisation,
polarised politics, bigger government would challenge risk assets and, in
particular, growth equities as an asset class.
There are also several upside risks that temper our pessimism. Most
importantly, we may already be at peak inflation/peak Fed which - after the
valuation compression since the Fed Pivot - would set up 2023 very nicely.
This view was supported by the October CPI report which came in at 7.7%
(compared to a 7.9% forecast) which was greeted with lower nominal and real
yields, and the best one-day move in US stocks in two years. While we know one
CPI does not make a pivot, there is still a case that the US can avoid a
recession as monetary policy could soon be sufficiently restrictive to see
inflation trending back down towards 2% with only a modest increase in the
unemployment rate. This could occur as the jobs/workers gap closes from
roughly six million peak to around four million today, down towards the two
million level needed to slow wage growth to a rate compatible with 2%
inflation, along with supply side normalising and slowing shelter inflation.
Other potential sources of upside include a successful relaxation of China's
zero Covid policy which could be a countervailing force to sagging global
demand, US/China relations could thaw as Biden and Xi have shored up their own
political positions, and - most important of all - there could be a
de-escalation of Russia/Ukraine tensions.
Even if positive surprises are in short supply, strong household and corporate
finances can limit the downturn to a mild recession. We could also see more
comprehensive central bank/political intervention in FX markets (as per the
Japanese Ministry of Finance's recent support of the yen), bond markets (as
per the Bank of England's emergency gilt buying) to ameliorate the impact of
tighter financial conditions. We have already seen widespread willingness on
the part of governments to mitigate the near-term impact of higher energy
prices on consumers and businesses, although the UK's experience should remind
governments their largesse cannot be limitless. A weaker US dollar would also
be good for risk appetite - a 10% appreciation in the trade-weighted dollar
delivers the same tightening as a 75bps rate hike per the Fed's model - even
if it could hinder our own NAV given that more than 70% of Trust assets are
held in the US. A recent Bank of America fund manager survey revealed that
institutional investors are not positioned for a positive change in sentiment,
with global equity allocations at all-time lows and cash at 6.1%, a level not
seen since 9/11. This is an intriguing set-up given strong year-end and
post-mid-term market tendencies.
We are also encouraged that some of the excesses that concerned us last year
are being worked off. The sharp correction in cryptocurrencies (bitcoin -70%
from November 2021 highs) and the recent collapse of crypto exchange FTX have
been sobering, especially for those who hoped bitcoin would prove to be a
portfolio diversifier and/or store of wealth. Other digital asset classes
such as non-fungible tokens (NFTs) have followed a similar path, while the
value of MANA tokens for use in Decentraland (touted as a would-be metaverse)
have fallen by more than 90% from their 2021 highs.
The IPO market has also struggled, following a record 2021 that saw $608bn
raised globally, +84% y/. To date, this calendar year has been the slowest IPO
market in five years with year-to-date proceeds tracking at c30% of 2021
issuance with c60% of deals having been withdrawn. Within technology it has
been significantly worse still with 2022, so far, the worst year for issuance
since the global financial crisis (GFC). SPAC issuance has also collapsed with
just 77 IPOs by the end of September, compared to 613 completed during 2021.
Other earlier signs of late-cycle exuberance included investor sentiment which
- until recently - had become very negative, having been ebullient last year.
Valuations that had been well ahead of long-term averages, have also fallen
back to more palatable levels. While the forward P/E for the S&P 500 has
bounced back to 17.1x from 15.2x recorded at the end of September, the ratio
remains below the five-year average of 18.5 and equal to the 10-year average
of 17.1.
Technology outlook
As with the broader market, the combination of higher risk-free rates, slowing
growth and some margin degradation makes for a more challenging immediate
outlook for the technology sector. Inevitably, higher risk-free rates and
wider corporate spreads have weighed on sector multiples, but the magnitude of
the compression also reflects a sharp reversal in sentiment around the
'inevitability' of technology disruption which reached a zenith during the
pandemic. This has been most pronounced in speculative areas and/or companies
with earlier-stage financials as earlier assumptions about future funding and
disruption timelines have been called into question. As in 2015-16, this
process appears to have entered something of a self-reinforcing cycle with
weaker sentiment and sharply lower share prices weighing on both private
company financing, where down-rounds are avoided wherever possible and
liquidity with the IPO market all but closed. In that earlier period, this
reflexivity ran its course until macroeconomic sentiment improved, and
strategic M&A highlighted the upside risk associated with compressed
next-generation valuations. We expect the current cycle to follow a similar
pattern, although this time stocks also have to contend with inflation and the
loss of policymaker support. This process may also be further complicated by
an unwind of private holdings held within daily-traded investment vehicles, an
approach that gained in popularity last cycle, as some investors sacrificed
liquidity and daily pricing to access earlier-stage themes. Companies were
able to stay private for longer, in part due to unprecedented access to
pre-IPO money from many of the same, non-traditional venture capital
investors.
The more challenging economic backdrop, and the stronger US dollar, has
weighed on worldwide IT spending this year, which is now expected to grow by
only 0.8% y/y in 2022, compared to 4% anticipated in April. This softer
outlook has been evident in recent corporate results with the S&P
technology sector now expected to deliver revenue and earnings growth of 8.1%
and 4% in 2022. Weaker growth this year is expected to translate into a
stronger rebound in 2023 with current expectations for IT spending
(+5.1%) commensurate with S&P 500 technology revenue and earnings
forecasts of 4.1% and 4.6% respectively. As things stand, this would see our
sector deliver growth broadly in line with the S&P 500, which is currently
forecast to grow at 3.4% and 5.7% respectively. Third-quarter earnings season
has reflected this less favourable dynamic with technology companies reporting
revenue growth of 5.7% y/y compared to the S&P 500 which delivered 10.8%.
Margins remain a key focus, with net margins falling to 23.5% during 3Q22,
down from cycle highs. While the decision to de-emphasise growth in favour of
profits does not sit easily with technology companies addressing large market
opportunities, recent industry cost-cutting announcements are a timely
reminder the technology sector is able to support margins when it chooses to.
However, it almost always takes longer for growth-centric companies to pivot
than it does for investors: through a cycle or more, we suspect this is a very
good thing for long-term returns.
While there remains considerable uncertainty regarding growth and technology
earnings, this appears partially reflected in sharply lower valuations that -
all things being equal - should improve our sector's medium-term return
profile. Having peaked in November 2021 at 28x, the forward P/E of the
technology sector has fallen significantly over the past year, and today, the
sector trades at 21.3x - below five-year (21.8x) but above 10-year (18.6x)
averages. This largely reflects the broader market derating as the sector's
relative rating of 1.1x the market multiple is unchanged with where it stood
at year-end and remains within their post-Global Financial Crisis ("GFC")
range of 0.9-1.3x. Although the sector's near-term relative growth profile
appears unexceptional (as other sectors benefit more from inflation and higher
energy prices), this is partially explained by technology's disproportionate
exposure to the stronger dollar. We remain excited about a plethora of secular
drivers that should support superior growth over the medium and long-term.
While sector valuations have clearly been hurt by higher risk-free rates,
technology balance sheets remain exceptionally well-capitalised, which should
insulate them against refinancing (or even, bankruptcy) risk.
While aggregate valuations remain flattered by 'cheap' incumbents such as
Cisco, HP and Intel, we no longer have the same concern about next-generation
valuations that we did a year ago prior to the Fed pivot. At that time, we
expressed our discomfort with "the extraordinary valuation premia enjoyed by a
narrow group of high growth, high multiple stocks" which seemed to be
"pricing in defiantly optimistic scenarios" that we felt unable to underwrite.
The ensuing valuation compression has seen next-generation stocks give up all
and more of their pandemic rerating, the reset proving far more brutal than we
(and others) had anticipated. A year ago, there were 25 SaaS companies trading
at more than 20x forward sales. Today there are none. The highest growth
cohort (those growing >40%) recently traded at 11x forward sales versus
their 52-week high of 41.1x. Overall, cloud software has recently traded with
a median NTM (next 12 months) revenue multiple of just 4.4x versus the
2010-20 pre-Covid multiple of 7.8x. As such (and all things being equal) we
see much improved risk/reward in this group of stocks and have been moving the
portfolio in this direction, coupled by some cash and Nasdaq puts that reflect
the unusually challenging market backdrop.
Technology risks
As highlighted in our last Annual Report, there are many risks to our
constructive medium-term view. Many of these remain macroeconomic (recession;
inflation; war) that have been discussed elsewhere. Weaker economic growth is
likely to weigh further on future technology spending as we have already seen
this year. It may also present risk to cloud spending, as seen during
third-quarter earnings season, should companies - especially earlier-stage
companies - rationalise their spending. Other macroeconomic risks
include cost inflation, as a result of labour market tightness or higher
prices for inputs such as energy. While valuations appear less of a risk
today given the magnitude of the correction from highs, especially in
next-generation stocks, earnings risk looks more pronounced with weaker
macroeconomic conditions and sentiment already subdued at semiconductor, and
other more cyclically exposed companies. Recent cost-cutting announcements at
Meta, Salesforce.com and Amazon suggest technology companies are at least
alive to this risk. Regulation remains another risk with uncertainty at
elevated levels in China, while in the US we continue to expect a resurgence
in regulatory scrutiny post-Covid with a number of key lawsuits slated for
2023. There is also the potential that a new economic and market regime
(discussed elsewhere) could increase the value of incumbency which would be a
meaningful headwind to our investment approach.
Concentration risk
We should also remind our shareholders about the concentration risk both
within the Trust and the market cap-weighted index around which we construct
the portfolio. As we have previously stated, the higher concentration of both
our portfolio and benchmark reflects the spectacular performance of a handful
of stocks that captured the zeitgeist of this cycle. At the end of October,
our three largest holdings - Apple, Microsoft and Alphabet - represented
c27% of our NAV and c43% of our benchmark respectively. This compares
to c29% and c41% respectively at the end of our last financial year; this
reduced concentration risk and our higher combined underweight exposure
reflects a combination of stock-price movement and portfolio changes. While we
continue to believe that these are unique, non-fungible assets that dominate
their respective industries, we expect to move materially underweight these
stocks should we become concerned about their prospects or find more
attractive risk/reward profiles elsewhere in the market. In the meantime, the
magnitude of concentration in the benchmark and our expectation of further
reducing exposure to the largest index constituents, may lead to increased
variance in our relative performance profile.
Conclusion
Markets continue to reprice risk against a backdrop of an unusually wide range
of outcomes, the theme of our last Annual Report. However, we have not given
up on the hope that this period will - in time - be understood as another
Covid-related episode where excess liquidity, supply shortages and collective
trauma have left demand and supply in a state of disequilibrium. The risk of
inflation becoming embedded has left policymakers with little choice, their
own credibility and personal legacies dependent on the war against inflation.
Until there is more certainty about the outcome of this battle, our interests
are likely to remain uncomfortably at odds with policymakers. However, we also
know that market narratives can change quickly should macroeconomic headwinds
and/or exogenous risks subside. Less than three years ago, we were faced with
one of the world's deadliest pandemics. Technology kept the world spinning
while biotechnology and AI developed vaccines that broke the link between
Covid cases and deaths. Even if technology stocks have struggled to live up to
their pandemic billing, we remain believers in the primacy of technology and
excited about humankind's ability to innovate and reimagine industries. This
- above all else - should provide a fertile backdrop against which to invest.
Ben Rogoff
Fund Manager, Polar Capital Technology Trust
9 December 2022
PORTFOLIO BREAKDOWN
Market Capitalisation of underlying investments as at 31 October 2022
% of invested assets Less than $1bn $1bn-$10bn Over $10bn
as at 31 October 2022 0.6 13.2 86.2
as at 30 April 2022 0.3 11.7 88.0
% of Net Assets as at
Breakdown of Investments by Geographic Region* 31 October 2022 30 April 2022
North America 71.2 74.2
Asia Pacific (ex-Japan) 8.7 10.2
Japan 4.8 3.4
Europe (inc - UK) 4.6 2.9
Middle East & Africa 1.5 1.4
Latin America 1.3 -
* % of Net Assets, excluding other net assets
Classification of Investments as at 31 October 2022**
Asia Pacific
(inc. Middle
East) Total Total
North America 31 October 2022 30 April 2022
(inc. Latin Europe
America)
% % % % %
Software 25.9 0.2 2.0 28.1 27.6
Semiconductors & Semiconductor Equipment 15.5 3.0 3.5 22.0 22.4
Technology Hardware, Storage & Peripherals 11.0 0.1 2.5 13.6 14.6
Interactive Media & Services 8.9 - 0.6 9.5 14.0
IT Services 4.1 0.9 0.6 5.6 2.3
Internet & Direct Marketing Retail 2.4 0.2 1.1 3.7 2.9
Entertainment 1.0 - 0.8 1.8 1.2
Electronic Equipment, Instruments & Components - - 1.8 1.8 1.6
Communications Equipment 1.7 - - 1.7 1.5
Healthcare Equipment & Supplies 1.0 - 0.4 1.4 0.6
Machinery - - 1.2 1.2 0.7
Automobiles 0.6 - 0.5 1.1 1.6
Aerospace & Defense 0.4 - - 0.4 0.7
Electrical Equipment - 0.2 - 0.2 0.4
Total investments (£2,496,672,000) 72.5 4.6 15.0 92.1 92.1
Other net assets (excluding loans) 7.3 0.9 1.7 9.9 9.6
Loans (1.2) - (0.8) (2.0) (1.7)
Grand total (net assets of £2,711,516,000) 78.6 5.5 15.9 100.0 -
At 30 April 2022 (net assets of £3,050,985,000) 79.3 5.2 15.5 - 100.0
* * Classifications derived from Benchmark as far as possible. The
categorisation of each investment is shown in the portfolio available on the
Company's website. Not all sectors of the Benchmark are shown, only those in
which the Company has an investment at the period end or in the comparative
period.
PORTFOLIO OF INVESTMENTS
Ranking Value of holding % of net assets
£'000
31 30 Apr Stock Sector Region* 31 30 31 30
Oct 2022 October April October April
2022 2022 2022 2022 2022
1 (2) Apple Technology Hardware, Storage & Peripherals North America 277,629 305,244 10.2 10.1
2 (1) Microsoft Software North America 275,266 336,977 10.2 11.0
3 (3) Alphabet Interactive Media & Services North America 179,221 249,058 6.6 8.2
4 (6) Samsung Electronics Technology Hardware, Storage & Peripherals Asia Pacific 67,998 82,312 2.5 2.7
5 (4) Nvidia Semiconductors & Semiconductor Equipment North America 66,902 95,065 2.5 3.1
6 (5) Advanced Micro Devices Semiconductors & Semiconductor Equipment North America 65,409 86,045 2.4 2.8
7 (10) ServiceNow Software North America 62,730 56,280 2.3 1.8
8 (8) ASML Semiconductors & Semiconductor Equipment Europe 53,692 59,248 2.0 1.9
9 (7) Taiwan Semiconductor Semiconductors & Semiconductor Equipment Asia Pacific 49,735 82,012 1.8 2.7
10 (15) KLA-Tencor Semiconductors & Semiconductor Equipment North America 47,454 39,816 1.8 1.3
Top 10 investments 1,146,036 42.3
11 (13) Arista Networks Communications Equipment North America 46,103 44,318 1.7 1.5
12 (41) Palo Alto Networks Software North America 44,653 18,479 1.6 0.6
13 (16) CrowdStrike Software North America 41,520 39,441 1.5 1.3
14 (9) Amazon.com Internet & Direct Marketing Retail North America 41,499 57,558 1.5 1.9
15 (17) HubSpot Software North America 39,408 38,675 1.5 1.3
16 (38) Visa IT Services North America 36,064 19,629 1.3 0.6
17 (18) Marvell Technology Semiconductors & Semiconductor Equipment North America 35,388 38,601 1.3 1.2
18 (24) Mastercard IT Services North America 33,375 26,330 1.3 0.9
19 (-) Analog Devices Semiconductors & Semiconductor Equipment North America 31,372 - 1.2 -
20 (21) Qualcomm Semiconductors & Semiconductor Equipment North America 30,645 32,622 1.1 1.0
Top 20 investments 1,526,063 56.3
21 (66) Atlassian Software Asia Pacific 28,585 9,414 1.1 0.3
22 (42) Salesforce.com Software North America 27,843 18,315 1.0 0.6
23 (35) Monolithic Power Systems Semiconductors & Semiconductor Equipment North America 25,274 20,305 0.9 0.7
24 (-) MercadoLibre Internet & Direct Marketing Retail North America 25,263 - 0.9 -
25 (-) Adyen IT Services Europe 24,715 - 0.9 -
26 (30) Elastic Software North America 24,420 23,453 0.9 0.8
27 (45) Cloudflare Software North America 23,524 15,864 0.9 0.5
28 (-) Enphase Energy Semiconductors & Semiconductor Equipment North America 22,679 - 0.9 -
29 (31) Nintendo Entertainment Asia Pacific 22,052 23,413 0.8 0.8
30 (26) Lattice Semiconductor Semiconductors & Semiconductor Equipment North America 21,923 24,788 0.8 0.8
Top 30 investments 1,772,341 65.4
31 (73) Keyence Electronic Equipment, Instruments & Components Asia Pacific 21,748 8,251 0.8 0.3
32 (77) Infineon Technologies Semiconductors & Semiconductor Equipment Europe 21,583 6,891 0.8 0.2
33 (36) Pure Storage Technology Hardware, Storage & Peripherals North America 20,668 19,712 0.8 0.7
34 (34) CyberArk Software Software Asia Pacific 20,627 21,721 0.8 0.7
35 (44) Smartsheet Software North America 20,350 16,414 0.7 0.5
36 (49) Snowflake Software North America 19,812 13,973 0.7 0.5
37 (37) Airbnb Interactive Media & Services North America 19,409 19,708 0.7 0.7
38 (47) ON Semiconductor Semiconductors & Semiconductor Equipment North America 19,141 14,451 0.7 0.5
39 (60) Workday Software North America 18,684 11,557 0.7 0.4
40 (80) Disco Corporation Semiconductors & Semiconductor Equipment Asia Pacific 18,639 6,256 0.7 0.2
Top 40 investments 1,973,002 72.8
41 (40) Alibaba Internet & Direct Marketing Retail Asia Pacific 17,750 18,888 0.7 0.6
42 (12) Micron Technology Semiconductors & Semiconductor Equipment North America 17,344 48,220 0.6 1.6
43 (14) Tencent Interactive Media & Services Asia Pacific 17,119 43,880 0.6 1.4
44 (23) Tesla Motors Automobiles North America 16,679 26,891 0.6 0.9
45 (-) GitLab Software North America 16,675 - 0.6 -
46 (-) Teradyne Semiconductors & Semiconductor Equipment North America 16,253 - 0.6 -
47 (11) Meta Platforms Interactive Media & Services North America 16,219 54,509 0.6 1.8
48 (64) Paycom Software Software North America 16,150 10,780 0.6 0.3
49 (48) TripAdvisor Interactive Media & Services North America 15,570 14,362 0.6 0.5
50 (-) Intuitive Surgical Healthcare Equipment & Supplies North America 14,822 - 0.5 -
Top 50 investments 2,137,583 78.8
51 (55) SolarEdge Technologies Semiconductors & Semiconductor Equipment Asia Pacific 13,547 12,519 0.5 0.4
52 (32) BYD Automobiles Asia Pacific 13,486 23,080 0.5 0.7
53 (56) eMemory Technology Semiconductors & Semiconductor Equipment Asia Pacific 13,415 12,388 0.5 0.4
54 (83) Intuit Software North America 13,386 5,521 0.5 0.2
55 (78) Harmonic Drive Systems Machinery Asia Pacific 13,339 6,430 0.5 0.2
56 (39) E Ink Electronic Equipment, Instruments & Components Asia Pacific 13,322 19,235 0.5 0.6
57 (70) Dexcom Healthcare Equipment & Supplies North America 12,832 8,749 0.5 0.3
58 (65) Square IT Services North America 12,697 9,990 0.5 0.3
59 (-) Pinterest Interactive Media & Services North America 12,024 - 0.4 -
60 (71) Hoya Healthcare Equipment & Supplies Asia Pacific 11,456 8,746 0.4 0.3
Top 60 investments 2,267,087 83.6
61 (72) Roblox Entertainment North America 11,111 8,655 0.4 0.3
62 (33) Axon Enterprise Aerospace & Defense North America 10,785 21,985 0.4 0.7
63 (-) GMO Payment Gateway IT Services Asia Pacific 10,557 - 0.4 -
64 (-) Nabtesco Machinery Asia Pacific 10,542 - 0.4 -
65 (79) Hamamatsu Photonics Electronic Equipment, Instruments & Components Asia Pacific 10,542 6,376 0.4 0.2
66 (-) Bill.com Software North America 10,236 - 0.4 -
67 (-) Globant IT Services North America 10,224 - 0.4 -
68 (-) Meituan Internet & Direct Marketing Retail Asia Pacific 10,195 - 0.4 -
69 (50) MongoDB Software North America 10,025 13,343 0.4 0.5
70 (-) Activision Entertainment North America 10,012 - 0.3 -
Top 70 investments 2,371,316 87.5
71 (-) Flywire IT Services North America 9,833 - 0.3 -
72 (46) Power Integrations Semiconductors & Semiconductor Equipment North America 9,071 14,930 0.3 0.5
73 (68) Kinaxis Software North America 8,723 9,169 0.3 0.3
74 (-) Confluent Software North America 8,496 - 0.3 -
75 (87) Take-Two Interactive Software Entertainment North America 8,092 3,926 0.3 0.1
76 (-) Freshworks Software North America 7,982 - 0.3 -
77 (58) SiTime Semiconductors & Semiconductor Equipment North America 7,046 11,860 0.3 0.4
78 (51) Shopify IT Services North America 6,824 13,251 0.3 0.4
79 (-) ASM International Semiconductors & Semiconductor Equipment Europe 5,689 - 0.2 -
80 (-) Braze Software North America 5,429 - 0.2 -
Top 80 investments 2,448,501 90.3
81 (-) Farfetch Internet & Direct Marketing Retail Europe 5,173 - 0.2 -
82 (-) Darktrace Software Europe 5,089 - 0.2 -
83 (92) Zuken IT Services Asia Pacific 5,058 3,081 0.2 0.1
84 (75) Fuji Machine Manufacturing Machinery Asia Pacific 4,917 7,403 0.2 0.2
85 (59) Ceres Power Electrical Equipment Europe 4,491 11,569 0.2 0.4
86 (69) Qualtrics International Software North America 4,256 8,840 0.2 0.3
87 (90) Impinj Semiconductors & Semiconductor Equipment North America 3,944 3,417 0.1 0.1
88 (93) Seeing Machines Electronic Equipment, Instruments & Components Asia Pacific 3,734 2,894 0.1 0.1
89 (67) Kornit Digital Machinery Asia Pacific 3,067 9,356 0.1 0.3
90 (-) Monday.com Software Asia Pacific 2,826 - 0.1 -
Top 90 investments 2,491,056 91.9
91 (-) HashiCorp Software North America 2,771 - 0.1 -
92 (94) Tobii Technology Hardware, Storage & Peripherals Europe 1,482 2,181 0.1 0.1
93 (-) Datadog Software North America 1,362 - - -
94 (96) Cermetek Microelectronics Electronic Equipment, Instruments & Components North America 1 1 - -
Total equities 2,496,672 92.1
Other net assets 214,844 7.9
Total net assets 2,711,516 100.0
*Note: Asia Pacific includes Middle East and North America includes Latin
America.
FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 31 October 2022
(Unaudited) (Audited)
Six months ended Six months ended Year ended
31 October 2022 31 October 2021 30 April 2022
Note Revenue Capital Total Revenue Capital Total Revenue Capital Total
Return Return Return Return Return Return Return Return Return
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment income 2 8,408 38 8,446 8,077 - 8,077 15,870 - 15,870
Other operating income 2 988 - 988 31 - 31
3 - 3
(Losses)/gains on investments held at fair value 3 - (302,041) (302,041) - (253,694) (253,694)
- 408,257 408,257
Gains/(losses) on derivatives 4 - 8,729 8,729 - (5,799) (5,799)
- (15,516) (15,516)
Other currency gains 5 - 15,631 15,631 - 17,535 17,535
- 2,006 2,006
Total income 9,396 (277,643) (268,247) 8,080 394,747 402,827 15,901 (241,958) (226,057)
Expenses
Investment management fee (11,328) - (11,328) (14,845) - (14,845) (28,281) - (28,281)
6
Other administrative expenses 7 (630) - (630) (700) - (700) (1,335) - (1,335)
Total expenses (11,958) - (11,958) (15,545) - (15,545) (29,616) - (29,616)
(Loss)/profit before finance costs and tax (2,562) (277,643) (280,205) (7,465) 394,747 387,282 (13,715) (241,958) (255,673)
Finance costs (675) - (675) (446) - (446) (973) - (973)
(Loss)/profit before tax (3,237) (277,643) (280,880) (7,911) 394,747 386,836 (14,688) (241,958) (256,646)
Tax (1,080) - (1,080) (987) - (987) (2,000) - (2,000)
Net (loss)/profit for the period and total comprehensive (expense)/income (4,317) (277,643) (281,960) (8,898) 394,747 385,849 (16,688) (241,958) (258,646)
(Losses)/earnings per ordinary share (basic) (pence) 9 (3.30) (212.28) (215.58) (6.54) 290.17 283.63 (12.36) (179.25) (191.61)
The total column of this statement represents the Company's Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.
All items in the above statement derive from continuing operations.
The Company does not have any other comprehensive income.
BALANCE SHEET
as at 31 October 2022
Note (Unaudited) (Unaudited) (Audited)
31 October 2022 31 October 2021 30 April 2022
£'000 £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 2,496,672 3,566,649 2,811,080
Current assets
Derivative financial instruments 1,432 6,024 6,479
Receivables 24,661 41,064 31,096
Overseas tax recoverable 320 227 286
Cash and cash equivalents 8 261,919 233,600 311,363
288,332 280,915 349,224
Total assets 2,785,004 3,847,564 3,160,304
Current liabilities
Payables (20,015) (33,928) (57,284)
Bank loans* - (50,575) (52,035)
(20,015) (84,503) (109,319)
Non-current liabilities
Bank loans* (53,473) - -
Net assets 2,711,516 3,763,061 3,050,985
Equity attributable to equity shareholders
Share capital 10 34,329 34,329 34,329
Capital redemption reserve 12,802 12,802 12,802
Share premium 223,374 223,374 223,374
Special non-distributable reserve 7,536 7,536 7,536
Capital reserves 2,564,591 3,604,029 2,899,743
Revenue reserve (131,116) (119,009) (126,799)
Total equity 2,711,516 3,763,061 3,050,985
Net asset value per ordinary share (pence) 11 2095.24 2782.81 2305.13
*As detailed within the Corporate Matters Section - see paragraph on Gearing.
Approved and authorised by the Board of Directors on 9 December 2022.
Catherine Cripps
Chair
STATEMENT OF CHANGES IN EQUITY
for the six months ended 31 October 2022
(Unaudited) Six months ended 31 October 2022
Note Share Capital Share Special non- Capital Revenue Total
capital redemption premium distributable reserves reserve £'000
£'000 reserve £'000 reserve £'000 £'000
£'000 £'000
Total equity at 30 April 2022 34,329 12,802 223,374 7,536 2,899,743 (126,799) 3,050,985
Total comprehensive expense:
Loss for the period to 9 - - - - (277,643) (4,317) (281,960)
31 October 2022
Transactions with owners, recorded directly to equity: 10 - - - - (57,509) - (57,509)
Ordinary shares repurchased into treasury
Total equity at 31 October 2022 34,329 12,802 223,374 7,536 2,564,591 (131,116) 2,711,516
(Unaudited) Six months ended 31 October 2021
Share Capital Share Special non- Capital Revenue Total
capital redemption premium distributable reserves reserve £'000
£'000 reserve £'000 reserve £'000 £'000
£'000 £'000
Total equity at 30 April 2021 34,329 12,802 223,374 7,536 3,240,833 (110,111) 3,408,763
Total comprehensive income/(expense):
Profit/(loss) for the period to 9 - - - - 394,747 (8,898) 385,849
31 October 2021
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 10 - - - - (31,551) - (31,551)
Total equity at 31 October 2021 34,329 12,802 223,374 7,536 3,604,029 (119,009) 3,763,061
(Audited) Year ended 30 April 2022
Share Capital Share Special non- Capital Revenue Total
capital redemption premium distributable reserves reserve £'000
£'000 reserve £'000 reserve £'000 £'000
£'000 £'000
Total equity at 30 April 2021 34,329 12,802 223,374 7,536 3,240,833 (110,111) 3,408,763
Total comprehensive expense:
Loss for the year to 30 April 2022 9 - - - - (241,958) (16,688) (258,646)
Transactions with owners, recorded directly to equity:
Ordinary shares repurchased into treasury 10 - - - - (99,132) - (99,132)
Total equity at 30 April 2022 34,329 12,802 223,374 7,536 2,899,743 (126,799) 3,050,985
Note - Share capital, Capital redemption reserve, Share premium and Special
non-distributable reserve are all non-distributable. Capital reserves of which
realised distributable capital reserve and revenue reserve are distributable.
CASH FLOW STATEMENT
for the six months ended 31 October 2022
(Unaudited) (Audited)
Note Six months ended Six months ended Year ended
31 October 2022 31 October 2021 30 April 2022
£'000 £'000 £'000
Cash flows from operating activities
(Loss)/profit before tax (280,880) 386,836 (256,646)
Adjustments:
Losses/(gains) on investments held at fair value through profit or loss 3 302,041 (408,257) 253,694
(Gains)/losses on derivative financial instruments 4 (8,729) 15,516 5,799
Proceeds of disposal on investments 1,305,771 1,345,986 2,822,328
Purchases of investments (1,320,038) (1,271,030) (2,618,737)
Proceeds on disposal of derivative financial instruments 42,614 4,557 39,006
Purchases of derivative financial instruments (28,838) (22,007) (47,194)
Decrease/(increase) in receivables 500 208 (64)
(Decrease)/increase in payables (4,471) 1,063 (355)
Overseas tax (1,114) (1,052) (2,124)
Foreign exchange gains 5 (15,631) (2,006) (17,535)
Net cash (used in)/generated from operating activities (8,775) 49,814 178,172
Cash flows from financing activities
Ordinary shares repurchased into treasury 10 (57,738) (30,417) (98,001)
Net cash used in financing activities (57,738) (30,417) (98,001)
Net (decrease)/increase in cash and cash equivalents (66,513) 19,397 80,171
Cash and cash equivalents at the beginning of the period 311,363 212,732 212,732
Effect of movement in foreign exchange rates on cash held 5 17,069 1,471 18,460
Cash and cash equivalents at the end of the period 8 261,919 233,600 311,363
Reconciliation of cash and cash equivalents
to the Balance Sheet is as follows:
Cash held at bank and derivative clearing houses 8 166,376 152,862 219,403
BlackRock's Institutional Cash Series plc (US Treasury Fund), money market 8 95,543 80,738 91,960
fund
Cash and cash equivalents at the end of the period 8 261,919 233,600 311,363
NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 31 October 2022
1. GENERAL INFORMATION
The Financial Statements comprise the unaudited results for Polar Capital
Technology Trust Plc for the six-month period to 31 October 2022.
The unaudited Financial Statements to 31 October 2022 have been prepared in
accordance with UK-adopted International Accounting Standard 34 "Interim
Financial Reporting" and the accounting policies set out in the statutory
annual Financial Statements of the Company for the year ended 30 April 2022.
Where presentational guidance set out in the Statement of Recommend Practice
("the SORP") for investment trusts issued by the Association of Investment
Companies in July 2022 is consistent with the requirements of UK-adopted
International Accounting Standard ("UK-adopted IAS"), the accounts have been
prepared on a basis compliant with the recommendations of the SORP.
The financial information in this Half Year Report does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006. The
financial information for the six-month periods ended 31 October 2022 and 31
October 2021 has not been audited. The figures and financial information for
the year ended 30 April 2022 are an extract from the latest published
Financial Statements and do not constitute statutory accounts for that year.
Full statutory accounts for the year ended 30 April 2022, prepared under
UK-adopted IAS, including the report of the auditors which was unqualified,
did not draw attention to any matters by way of emphasis and did not contain a
statement under section 498 of the Companies Act 2006, have been delivered to
the Registrar of Companies.
The accounting policies have not varied from those described in the Annual
Report for the year ended 30 April 2022.
The Directors believe it is appropriate to adopt the going concern basis in
preparing the Financial Statements. As at 31 October 2022 the Company's total
assets exceeded its total liabilities by a multiple of over 37. The Board
continually monitors the financial position of the Company. The Directors have
considered a detailed assessment of the Company's ability to meets its
liabilities as they fall due. The assessment took account of the Company's
current financial position, its cash flows and its liquidity position. In
light of the results of these tests, the Company's cash balances, and the
liquidity position, the Directors consider that the Company has adequate
financial resources to enable them to continue in operational existence.
Accordingly, the Directors are satisfied that it is appropriate to continue to
adopt the going concern basis in preparing the financial results of the
Company.
There were no new UK-adopted IAS or amendments to UK-adopted IAS applicable to
the current year which had any significant impact on the Company's Financial
Statements.
The Financial Statements are presented in Pounds Sterling and all values are
rounded to the nearest thousand pounds (£'000), except where otherwise
stated.
The majority of the Company's investments are in US Dollars, the level of
which varies from time to time. The Board considers the functional currency to
be Sterling. In arriving at this conclusion, the Board considered that
Sterling is the most relevant to the majority of the Company's shareholders
and creditors and the currency in which the majority of the Company's
operating expense are paid.
2. INCOME
(Unaudited) (Unaudited) (Audited)
For the six months ended For the six months ended For the
31 October 31 October Year ended
2022 2021 30 April
£'000 £'000 2022
£'000
Investment income
Revenue:
Overseas dividend income 8,408 8,077 15,870
Total investment income 8,408 8,077 15,870
Other operating income
Bank interest 378 - 4
Money market fund interest 610 3 27
988 3 31
Total income 9,396 8,080 15,901
Included within income from investment is £239,000 (31 October 2021 and 30
April 2022: £172,000) of special dividends classified as revenue in nature.
£38,000 of special dividends have been recognised in capital (31 October 2021
and 30 April 2022: £nil).
All investment income is derived from listed investments.
3. (LOSSES)/GAINS ON INVESTMENT HELD AT FAIR VALUE
(Unaudited) (Unaudited) (Audited)
For the six months ended For the six months ended For the
31 October 31 October Year ended
2022 2021 30 April
£'000 £'000 2022
£'000
Net (losses)/gains on disposal of investments at historic cost (130,570) 204,926 232,360
Transfer on disposal of investments (3,653) (210,520) (353,508)
Losses on disposal of investments based on carrying value at previous balance (134,223) (5,594) (121,148)
sheet date
Valuation (losses)/gains on investments held during the period (167,818) 413,851 (132,546)
(302,041) 408,257 (253,694)
4. GAINS/(LOSSES) ON DERIVATIVES
(Unaudited) (Unaudited) (Audited)
For the six months ended For the six months ended For the
31 October 31 October Year ended
2022 2021 30 April
£'000 £'000 2022
£'000
Gains/(losses) on disposal of derivatives held 9,451 (13,350) (10,212)
(Losses)/gains on revaluation of derivatives held (722) (2,166) 4,413
8,729 (15,516) (5,799)
The derivative financial instruments represent the call and put options, which
are used for the purpose of efficient portfolio management. As at 31 October
2022, the Company held NASDAQ 100 Stock Index put options, and the market
value of the open put option position was £1,432,000 (31 October 2021: NASDAQ
100 Stock Index put options with a market value of £3,319,000. 30 April 2022:
NASDAQ 100 Stock Index put options with a market value of £6,431,000). As at
31 October 2022, there was no call option held by the Company (31 October
2021: Apple Inc. open call options with a market value of £2,705,000; 30
April 2022: Apple Inc. open call options with a market value of £48,000).
5. OTHER CURRENCY GAINS
(Unaudited) (Unaudited) (Audited)
For the six months ended For the six months ended For the
31 October 31 October Year ended
2022 2021 30 April
£'000 £'000 2022
£'000
Exchange gains on currency balances 17,069 1,471 18,460
Exchange losses on settlement of loan balances (507) - -
Exchange (losses)/gains on translation of loan balances (931) 535 (925)
15,631 2,006 17,535
6. INVESTMENT MANAGEMENT AND PERFORMANCE FEES
INVESTMENT MANAGEMENT FEE
With effect from 1 May 2022, the investment management fee, which is paid by
the Company monthly in arrears to the Investment Manager, is calculated on the
daily Net Asset Value ("NAV") as follows:
· Tier 1: 0.80 per cent. for such of the NAV up to and including £2
billion;
· Tier 2: 0.70 per cent. for such of the NAV between £2 billion and
£3.5 billion;
and
· Tier 3: 0.60 per cent. for such of the NAV above £3.5
billion.
.
Any investments in funds managed by Polar Capital are excluded from the
investment management fee calculation.
PERFORMANCE FEE
The Investment Manager is entitled to a performance fee based on the level of
outperformance of the Company's net asset value per share over its benchmark,
the Dow Jones World Technology Index (total return, Sterling adjusted, with
the removal of relevant withholding taxes) during the relevant performance
period.
At 31 October 2022, there was no accrued performance fee (31 October 2021 and
30 April 2022: £nil). The quantum of any performance fee will be based on
the audited net asset value at the year end on 30 April 2023.
A fuller explanation of the performance and management fee arrangements is
given in the Annual Report.
7. OTHER ADMINISTRATIVE EXPENSES
At 31 October 2022, the Company's other administrative expenses, were
£630,000 (31 October 2021: £700,000 and 30 April 2022: £1,335,000).
8. CASH AND CASH EQUIVALENTS
(Unaudited) (Unaudited) (Audited)
For the six months ended For the six months ended For the
31 October 31 October Year ended
2022 2021 30 April
£'000 £'000 2022
£'000
Cash at bank 166,334 152,862 211,940
Cash held at derivative clearing houses 42 - 7,463
Money market funds 95,543 80,738 91,960
Total 261,919 233,600 311,363
As at 31 October 2022, the Company held BlackRock's Institutional Cash Series
plc - US Treasury Fund with a market value of £95,543,000 (31 October 2021:
£80,738,000 and 30 April 2022: £91,960,000), which is managed as part of the
Company's cash and cash equivalents as defined under IAS
7.
9. (LOSSES)/EARNINGS PER ORDINARY SHARE
(Unaudited) (Unaudited) (Audited)
For the six months ended For the six months ended For the
31 October 31 October Year ended
2022 2021 30 April
£'000 £'000 2022
£'000
Net (loss)/profit for the period:
Revenue (4,317) (8,898) (16,688)
Capital (277,643) 394,747 (241,958)
Total (281,960) 385,849 (258,646)
Weighted average number of shares in issue during the period 130,792,391 136,038,501 134,984,460
Revenue (3.30)p (6.54)p (12.36)p
Capital (212.28)p 290.17p (179.25)p
Total (215.58)p 283.63p (191.61)p
10. SHARE CAPITAL
At 31 October 2022 there were 129,413,314 ordinary shares in issue (31 October
2021: 135,225,396 and 30 April 2022: 132,356,426.) During the six months ended
31 October 2022, the Company issued no ordinary shares (31 October 2021 and 30
April 2022: the same ), During the same period, a total of 2,943,112 (31
October 2021: 1,319,368 and 30 April 2022: 4,188,338) ordinary shares were
repurchased into treasury at a total cost of £57,223,000 (31 October 2021:
£31,395,000 and 30 April 2022: £98,639,000).
Subsequent to the period end, and to 9 December 2022 (latest practicable
date), 436,091 ordinary shares were repurchased and placed into treasury at an
average price of 1901.81p per share.
11. NET ASSET VALUE PER ORDINARY SHARE
(Unaudited) (Unaudited) (Audited)
31 October 31 October 30 April
2022 2021 2022
£'000 £'000 £'000
Undiluted:
Net assets attributable to ordinary shareholders (£'000) 2,711,516 3,763,061 3,050,985
Ordinary shares in issue at end of period 129,413,314 135,225,396 132,356,426
Net asset value per ordinary share 2095.24p 2782.81p 2305.13p
12. DIVIDEND
No interim dividend has been declared for the period ended 31 October 2022,
nor for the periods ended 31 October 2021 or 30 April 2022 respectively.
13. RELATED PARTY TRANSACTIONS
There have been no related party transactions that have materially affected
the financial position or the performance of the Company during the six-month
period to 31 October 2022.
14. POST BALANCE SHEET EVENTS
Subsequent to the period end, and to 9 December 2022 (latest practicable
date), 436,091 ordinary shares were repurchased and placed into treasury at an
average price of 1901.81p per share.
There are no other significant events that have occurred after the end of the
reporting period to the date of this report which require disclosure.
Alternative Performance Measures (APMs)
In assessing the performance of the Company, the Investment Manager and the
Directors use the following APMs which are not defined in accounting standards
or law but are considered to be known industry metrics:
Net Asset Value (NAV) and NAV per share
The NAV is the value attributed to the underlying assets of the Company less
the liabilities, presented either on a per share or total basis.
The value of the Company's assets, principally investments made in other
companies and cash being held, minus any liabilities. The NAV is also
described as 'Shareholders' funds' per share. The NAV is often expressed in
pence per share after being divided by the number of shares which have been
issued. The NAV per share is unlikely to be the same as the share price which
is the price at which the Company's shares can be bought or sold by an
investor. See Note 11 above for detailed calculations. The NAV per ordinary
share is published daily.
NAV Total Return (APM)
The NAV total return shows how the net asset value per share has performed
over a period of time taking into account both capital returns and dividends
paid to Shareholders.
NAV total return reflects the change in value of NAV plus the dividend paid to
the Shareholder. Since the Company has not paid a dividend the NAV total
return is the same as the NAV per share return as at the six months ended 31
October 2022 and year ended 30 April 2022.
(Unaudited) (Audited)
For the six months ended Year ended
31 October 2022 30 April 2022
Opening NAV per share a 2305.13p 2496.44p
Closing NAV per share b 2095.24p 2305.13p
NAV total return for the year (b/a)-1 (9.1%) (7.7%)
(Discount)/Premium (APM)
A description of the difference between the share price and the net asset
value per share usually expressed as a percentage (%) of the net asset value
per share. If the share price is higher than the NAV per share the result is a
premium. If the share price is lower than the NAV per share, the shares are
trading at a discount.
(Unaudited) (Audited)
31 October 30 April
2022 2022
Closing share price a 1894.00p 2040.00p
Closing NAV per share b 2095.24p 2305.13p
Discount of ordinary share price to the NAV per ordinary share (a/b)-1 (9.6%) (11.5%)
DIRECTORS AND CONTACTS
Directors (all independent Non-executive)
Catherine Cripps (Chair)
Tim Cruttenden (Senior Independent Director)
Charlotta Ginman (Audit Committee Chair)
Charles Park
Jane Pearce
Stephen White
Investment Manager and AIFM Portfolio Manager
Polar Capital LLP Ben Rogoff
Authorised and regulated by the Financial Services Authority
Registered Office and address for contacting the Directors Company Secretary
16 Palace Street, London SW1E 5JD Polar Capital Secretarial Services Limited
020 7227 2700 represented by Jumoke Kupoluyi, ACG
Corporate Broker Depositary, Bankers and Custodian
Stifel Nicolaus Europe Limited HSBC Bank Plc, 8 Canada Square, London E14 5HQ
150 Cheapside
London EC2V 6ET
Registered Number
Incorporated in England and Wales with company number 3224867 and registered
as an investment company under section 833 of the Companies Act 2006
Forward Looking Statements
Certain statements included in this report and financial statements contain
forward-looking information concerning the Company's strategy, operations,
financial performance or condition, outlook, growth opportunities or
circumstances in the countries, sectors or markets in which the Company
operates. By their nature, forward-looking statements involve uncertainty
because they depend on future circumstances, and relate to events, not all of
which are within the Company's control or can be predicted by the Company.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. Actual results could differ
materially from those set out in the forward-looking statements. For a
detailed analysis of the factors that may affect our business, financial
performance or results of operations, we urge you to look at the principal
risks and uncertainties included in the Strategic Report section on pages 65
to 69 of the Annual Report. No part of these results constitutes, or shall be
taken to constitute, an invitation or inducement to invest in Polar Capital
Technology Trust plc or any other entity and must not be relied upon in any
way in connection with any investment decision. The Company undertakes no
obligation to update any forward-looking statements.
Half Year Report
The Company has opted not to post half year reports to shareholders. Copies of
the Half Year Report will be available from the Secretary at the Registered
Office, 16 Palace Street, London SW1E 5JD and from the Company's website at
www.polarcapitaltechnologytrust.co.uk
(http://www.polarcapitaltechnologytrust.co.uk)
National Storage Mechanism
A copy of the Half Year Report has been submitted to the National Storage
Mechanism ('NSM') and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
Neither the contents of the Company's website nor the contents of any website
accessible from the hyperlinks on the Company's website (or any other website)
is incorporated into or forms part of this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR DXBDDUGBDGDBRecent news on Polar Capital Technology Trust
See all newsREG - Polar Cap Tech Tst - Net Asset Value(s)
AnnouncementREG - Polar Cap Tech Tst - Net Asset Value(s)
AnnouncementREG - Polar Cap Tech Tst - Top Ten Equity Holdings and Exposures
AnnouncementREG - Polar Cap Tech Tst - Net Asset Value(s)
AnnouncementREG - Polar Cap Tech Tst - Net Asset Value(s)
Announcement