Polar Capital Technology Trust Outperforms Benchmark Index

(Alliance News) - Polar Capital Technology Trust PLC said Monday it outperformed its benchmark ...

Alliance News 15 July, 2019 | 10:12AM
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(Alliance News) - Polar Capital Technology Trust PLC said Monday it outperformed its benchmark for its recently ended financial year, mostly due to strong returns from US companies and a weaker pound during the period.

For the year to the end of April, Polar Capital Technology reported a 25% rise in net asset value total return, outperforming the Dow Jones World Technology Index, on a sterling adjusted basis, which rose by 21%.

Net asset value per share as at April 30 was 1,446.40 pence, up from 1,159.69p the same date the year before.

The trust's share price at the end of April was 1,354.00, reflecting a discount to net asset value of 6.4%, widened from 1.0%.

Shares in Polar Capital Technology Trust were up 0.4% on the day Monday at 1,378.00p, having improved since the year-end.

Portfolio-wise, the strongest returns came from the US, and its overweight exposure to software-as-a-service companies, including Twilio and Zendesk. There was also robust performances from payment-based companies, such as PayPal and GMO Payments.

However, the portfolio's main detractors includes Grubhub, due to a more aggressive pricing environment in the online food delivery market, and computer gaming stocks on Chinese regulatory headwinds and delayed game launches.

In addition, Polar Capital said that sterling weakened against the US dollar during the financial year, a trend that had started since the Brexit referendum, leading to a rise in gross returns.

Also, Polar Capital Technology said that Chair Sarah Bates will remain in the post until next annual general meeting in 2022, as well as Senior Independent Director Peter Hames, who has been part of the company for eight years since 2011.

"Technology continues to be a very volatile sector, and we seek to pay attention to risk both in absolute and relative terms. Ben Rogoff's approach, which he established in 2006, continues to be that of running a diversified portfolio," Bates said.

"He [Ben Rogoff] has the aim of delivering comprehensive exposure to the opportunities he sees in the sector in order to deliver good long-term outperformance, but he also seeks to avoid the worst of the inevitable downturns. We were therefore pleased to see that he outperformed during the period of market downturn in this financial year," she added.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Polar Capital Technology Ord 1,412.00 GBX -0.28
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