TIDMPCT
RNS Number : 0190Z
Polar Capital Technology Trust PLC
12 December 2017
POLAR CAPITAL TECHNOLOGY TRUST PLC
UNAUDITED RESULTS ANNOUNCEMENT FOR THE SIX MONTHS TO 31 OCTOBER
2017
Financial Highlights (Unaudited) (Audited) Movement
As at 31 October As at 30 %
2017 April 2017
------------------------------- ----------------- ---------------- --------
Total net assets GBP1,502,376,000 GBP1,252,525,000 19.9
Net assets per ordinary
share 1128.29p 945.39p 19.3
Price per ordinary share 1144.00p 947.00p 20.8
Benchmark
Dow Jones World Technology
Index (total return, Sterling
adjusted, with the removal
of relevant withholding
taxes) - - 16.9
Premium of ordinary share
price to the net asset
value per ordinary share 1.4% 0.2% -
Ordinary shares in issue 133,155,000 132,487,000 -
Key Data For the six months to
31 October 2017
------------------------------- -----------------------------------
Sterling
Local Currency adjusted
% %
Benchmark 20.0 16.9
Other Indices (total return)
FTSE World 10.1 7.5
FTSE All-share 5.9 5.9
S&P 500 composite 9.1 6.4
Nikkei 225 15.7 10.7
Eurostoxx 600 3.8 8.2
Exchange rates As at 31 October As at 30
2017 April 2017
------------------------------- ----------------- ----------------
US$ to GBP 1.3280 1.2938
Japanese Yen to GBP 150.89 144.21
Euro to GBP 1.1399 1.1881
In accordance with stated policy, no interim dividend has been
declared for the period ended 31 October 2017 or the periods ended
31 October 2016 and 30 April 2017 and there is no intention to
declare a dividend for the year ending 30 April 2018.
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:
Tracey Lago - Company Ed Gascoigne-Pees
Secretary
Polar Capital Technology Camarco
Trust PLC
Tel: 020 7227 2700 Tel: 020 3757 4984
Interim Management Report
INVESTMENT MANAGER'S REPORT
Market Review
The half-year to 31 October 2017 saw global equity markets add
to their post financial crisis gains, driven by a combination of
earnings growth and valuation expansion, offset by Sterling
strength, the pound rising 2.6% against the US dollar. As a result,
the FTSE World index rose 7.5% in Sterling terms during our
half-year. While the US market (+6.4% in Sterling terms) continued
to perform well in absolute terms, it trailed on a relative basis
amid waning hopes of a Trump-related growth reacceleration. The new
President's inability to pass or repeal key legislation such as tax
reform and ACA ('Obamacare') weighed on earlier reflationary hopes,
resulting in downward revisions to future interest rate
expectations (despite a US rate hike during the period) and
concomitant US Dollar weakness. European equity markets (+8.2%)
outperformed aided by Euro strength following the triumph of
Emmanuel Macron in the French Presidential election and upward
revisions to ECB 2017 GDP forecasts. Outperformance was more
pronounced in Japan (+10.7%) due to superior earnings momentum
(aided by Yen weakness) and PM Shinzo Abe's landslide election
victory in October. However, strongest performance was reserved for
Asian equities (+15.7%) with semiconductor related strength despite
North Korean missile testing and political brinksmanship.
Technology Review
The technology sector significantly outperformed the broader
market during the half year, the Dow Jones World Technology index
advancing 16.9% in Sterling terms. Unlike in previous periods, this
outperformance was not aided by the sector's disproportionate
exposure to the US and the weaker Dollar detracted from the Trust's
absolute return during the period. Instead, technology stocks
outperformed materially in most major markets due to a combination
of superior earnings growth and valuation re-rating as the sector
continued to attract incremental investors while benefiting from
further unwinding of the earlier so-called Trump (reflation) trade.
The FANG (Facebook, Amazon, Netflix and Google) stocks, together
with their Chinese counterparts (Alibaba, Baidu and Tencent)
continued to dominate the headlines for all the right reasons,
punctuated by concerns that this growth (and so-called 'fake news')
could invite greater regulatory scrutiny in future, a risk brought
into focus by the EU decision to fine Google EUR2.42 billion for
allegedly breaking competition law. Apple regained its poise ahead
of its September iPhone refresh, although the stock sold off post
launch in a 'sell the news' moment. Next-generation software
companies also performed well during the half year as most
continued to deliver strong growth and for the most part, improved
profitability. In contrast and consistent with our long-held
thesis, former enterprise computing winners such as Cisco, IBM and
Oracle all struggled to meet Street expectations as Cloud adoption
continued unabated. While the absence of volatility / market
setbacks resulted in limited M&A during the period, Amazon's
acquisition of Whole Foods ensured that technology disruption
remained very much at the forefront of investors' minds.
Portfolio Performance
Our total return performance came in ahead of our benchmark,
with the net asset value per share rising 19.3% during the first
half versus 16.9% for the Sterling adjusted benchmark.
Outperformance was driven by strong stock selection with value
added across all regions and market-cap tiers. Strongest geographic
performances were generated in Europe and Japan while small-caps
delivered c. 78bps of outperformance despite accounting for just
3.3% of the portfolio during the half year. At the stock level,
positive contributions were made by companies benefitting from
growth in payments (Square, PayPal), robotics (Cognex, Harmonic
Drive Systems) and iPhone X content (Universal Display). Computer
gaming companies such as UBISOFT and Take-Two also continued to
deliver strong absolute and relative performance due to improved
franchise monetisation while Nintendo gained from the strong
reception to its Switch product. In addition, the Trust continued
to benefit from the underperformance of the likes of IBM, Cisco and
Qualcomm where we have limited or zero exposure because we perceive
them (and other incumbents) to be negatively impacted by the new
technology cycle. Intel (not held) proved a notable exception as
its shares recovered sharply following two better quarterly
reports. M&A provided only a modest tailwind to performance as
overall activity waned, although three of our 'tail' positions -
Broadsoft, Imagination Technologies and Novadaq - were all acquired
during the period at significant premiums to their unaffected share
prices. In terms of negatives, our (modest) liquidity and
underweight Asia exposure dragged on performance. AMD - our
strongest performer last year - also represented a significant
negative this half year as investors took profits following a
remarkable run. In addition, performance was negatively impacted by
a number of other disappointing individual stock moves due to poor
execution (CyberArk, MA-COM) and/or valuation de-rating
(Splunk).
Market Outlook
Ten years after the financial crisis begun, global growth is
finally beginning to reaccelerate with world GDP pegged at 3.6% and
3.7% for 2017 and 2018 (2016: 3.2%). These forecasts represent
modest upside (c.0.1%) to where expectations stood at our fiscal
year end. Advanced economies are now expected to grow 2.2% this
year (2016: 1.7%) with better growth in Europe more than offsetting
modest downward revisions to US forecasts due to the absence of
fiscal stimulus from anticipated tax cuts and the impact of
Hurricane Harvey. While upside associated with the new President
may not have arrived on cue, US growth should remain at healthy
levels (2.3% in 2018) due to supportive financial conditions,
robust consumer confidence and unemployment at 17-year lows. In
contrast, the Euro area has surprised to the upside with Q3 GDP
+2.5% y/y and unemployment falling to 8.9% in September, the lowest
level since the start of 2009. Although European growth is expected
to moderate next year to c. 1.9%, it is likely to continue
outpacing the UK where consumption has been negatively impacted by
Sterling weakness and uncertainty associated with Brexit. True to
form, Japan has benefitted from strengthening global demand and
supportive fiscal policy, although growth is expected to slow to
<1% in 2018 as monetary stimulus is scaled back. Emerging
markets have also strengthened, driven by China and higher
commodity prices with 4.9% growth expected next year.
Despite this modest reacceleration, global growth remains at
levels seemingly insufficient to spoil the current 'Goldilocks'
investment backdrop with growth 'just about right' - enough to keep
earnings estimates ticking higher, but not too much to accelerate
the pace of rate tightening. While the number of Americans
collecting unemployment benefits recently fell to the lowest level
since Richard Nixon was president, labour market improvement has
had limited impact on core inflation and "slow transmission into
faster wage growth" in advanced economies. As we have previously
suggested, persistently soft wage growth suggests that the labour
market is less robust than headline employment data might indicate
and our belief that technology and globalisation have forever
changed the labour/capital relationship. As such, while a number of
central banks are beginning to roll back earlier monetary stimulus
programmes, we expect monetary policy to remain both accommodative
and somewhat data dependent. This gradualist view was recently
supported by the nomination of Jay Powell to the position of
Federal Reserve chair - a centrist said to agree with Janet
Yellen's dovish approach to interest rates and unwinding of the
Fed's balance sheet. Likewise, the recent interest rate hike by the
Bank of England (BoE) - its first in more than a decade - was
accompanied by notably dovish commentary, with MPC minutes
indicating that "further increases will be limited". Absent an
inflation shock we expect policymakers to continue to tread
carefully on the path of normalisation, reflecting a recovery that,
while broadening, remains shallow.
While equity markets have enjoyed a strong first half, we remain
hopeful that they can add to their gains during the remainder of
our financial year. Equity valuations are little changed during
this fiscal year, the forward PE on the S&P 500 trading at
18.0x today, up from 17.9x. This continues to compare unfavourably
to five and ten-year averages of 15.7x and 14.1x respectively.
However, we remain unconvinced by the relevance of longer-term
averages that fail to capture the uniqueness of the current
investment backdrop, with accommodative policy and the prevailing
rate of inflation supportive of current equity valuations. However,
with most traditional measures above long-term averages, equities
are likely to become increasingly dependent on underlying earnings
growth which in the US was c. 6.2% y/y during Q3. While its passage
has been delayed, potential tax reform could add substantially to
future earnings growth should a new 20% rate prevail. As
previously, stocks appear more attractive than either cash or
bonds, with the Fed Model (which compares equity and bond yields)
suggesting equities remain undervalued. US stocks remain awash with
cash with c. $2.3tr of liquid assets held by non-financials
companies (+60% since mid 2009), which should provide ongoing
support for equities via buybacks and M&A. That said, low
market volatility and the lack of tax reform / offshore cash
repatriation has resulted in less buybacks (-6% y/y in Q2) and
fewer M&A transactions during 2017. It is also worth noting
that much of the excess cash is held (largely overseas) by
technology companies such as Apple, Microsoft, Alphabet and Cisco
while overall debt issuance has also risen 66% over the past five
years.
Key risks
As outlined in greater depth during our last Annual Report,
there are myriad risks that threaten our constructive view. These
include upside risks where sharply higher yields and/or inflation
expectations accelerate rate normalisation, increasing the risk of
policy error. This looks less pertinent today than following
Trump's win as the new President has been unable to deliver on any
of his key campaign pledges despite Republican control of Congress.
While higher rates could presage another style rotation, we still
believe that long-term Treasury yields would need to breach 4% to
end the positive relationship between bond and equity markets.
Instead, we think economic risk remains negatively skewed - a view
seemingly supported by dovish central bank commentary and a
flattening US yield curve - with 'growth scares' and/or a trade
dislocation a potential cause of future equity market setbacks.
Political risk also remains heightened, with so-called 'populism'
posing a threat to the market friendly status quo while Brexit,
North Korea and Islamic terrorism represent significant exogenous
risks. The combination of low volatility, elevated valuations and a
market that is currently enjoying its longest run without a 5%
correction since 1960 makes it particularly susceptible to profit
taking. While prior sell-offs have been brief, a "sharp reversal in
asset prices could have damaging effects on the economy" reflecting
the risk of reflexivity as highlighted in recent Fed minutes.
Technology Outlook
An edifying half year for the technology sector has seen
valuations extend further leaving it trading at a forward PE of
19.1x as compared to 17.8x at the end of our fiscal year. This
represents the highest level since 2007, and a modest premium to
the broader market ignoring the sector's relative balance sheet
strength. However, this premium looks entirely justified given the
relative growth profile of a sector that in Q3 delivered a
remarkable 19.7% y/y earnings growth. Put differently, if the
technology sector were excluded the blended earnings growth for the
remaining ten S&P 500 sectors would fall from 6.2% to just
2.8%. Little wonder then that the notion of digital disruption has
gathered significant momentum, consistent with the new cycle thesis
we first articulated almost a decade ago. As readers of our annual
reports will know, we have leant on a plethora of different
historical parallels to help us convey the magnitude of change we
anticipated as our industry embraced a mass production model more
familiar to George Eastman and Henry Ford than to most enterprise
technology incumbents. As we hoped, the combination of smartphone
proliferation and Cloud computing has allowed our industry to
mirror the earlier experience of electricity by enabling widespread
reinvention beyond traditional technology boundaries.
While equity markets have experienced strong year-to-date gains,
we remain constructive and continue to see significant
opportunities within the technology sector for 2018. In contrast,
many commentators instead remain focused on the downside risks
associated with our sector (especially the spectre of greater
regulatory scrutiny) while others believe technology stocks are in
the midst of another bubble. Our sense is that the 1990s parallel
is too easy while over-exuberance appears contained to a few
emerging areas (such as cryptocurrencies / blockchain) where
remarkable returns have been driven by the long-term promise of
technologies that remain nascent today. Rather than signalling a
return to bubble-like conditions, we see this excitement as normal
fare for a sector where adoption often apes Gartner's so-called
hype-cycle where heightened expectations are usually followed by
disillusionment as mainstream adoption takes much longer than
originally forecast. Underpinning our own excitement is a new cycle
thesis that appears to be gathering strength with every earnings
season, with a growing divergence between incumbents and
next-generation companies now that the Cloud has become the default
computing platform. This bifurcation is likely to intensify from
here as workloads continue to gravitate towards the public cloud,
while emerging technologies such as artificial intelligence (AI) -
where the Internet platforms enjoy a leadership position - are
likely to accelerate this trend.
As such, we believe our jaundiced view of the value of
incumbency is likely to continue to be rewarded as these
growth-challenged winners of yesterday struggle to meet
expectations, maintain margins and engage in greater M&A in
order to remain relevant. While new technologies almost always
co-exist with existing ones early in a new cycle, we believe that
coexistence is becoming problematic for most incumbents as the
Cloud has become the default compute / storage platform with
deflation permeating up the computing stack. This view has
continued to be supported by further defensive M&A on the part
of incumbents, disappointing financial performances and
"surprising" executive departures such as the recent resignation of
Meg Whitman as CEO of Hewlett Packard Enterprise amid weaker
quarterly performance. As ever, IBM remains a key battleground
stock for our thesis and as such we were encouraged by soft results
from Big Blue during the period with revenues now declining y/y for
the 21st consecutive quarter and Warren Buffet further reducing his
position. With the Cloud set to quadruple its share of workloads by
2022, new cycle deflation is likely to intensify from here,
prompting our decision to exit our underweight Cisco and Intel
positions during the half year.
Having once again attended Gartner's annual IT symposium held in
Barcelona, I was struck by the uptick in urgency this year on the
part of IT leaders (CIOs) to transform themselves into 'digital'
companies. This likely reflects the accelerated pace of disruption
occurring across a myriad of sectors fuelled by transformational
technologies including cloud computing, smartphones, the Internet
of Things and artificial intelligence. While Amazon's disruption of
retail is well documented (and ongoing), many other industries are
also being reshaped with new winners emerging. AI is likely to
accelerate this further, driven by a million-fold improvement in
massively parallel hardware between 2008- 2016 and plentiful data
to train deep neural networks. This is likely to open up a plethora
of new opportunities for technology reinvention, particularly where
machines prove able to automate tasks previously carried out by
humans. As such our longer-term confidence is grounded not in the
macro but driven by our belief that the Internet would reorder the
technology landscape. If our thesis is indeed playing out, it
should provide a multi-year tailwind for our
growth centric investment approach at a time when technology
indices may be weighed down by smartphone maturity and exposure to
legacy technologies. We remain excited by a number of secular
themes which include eCommerce and digital payments, digital
marketing and advertising, automotive reinvention, Cloud computing
and artificial intelligence (AI), software as a service (SaaS),
digital content and gaming, robotics and automation and rising
semiconductor complexity.
Ben Rogoff
11 December 2017
CORPORATE MATTERS
Chair of the Board
Following the retirement of Michael Moule in September 2017, Mrs
Sarah Bates was appointed Chair. Biographical details of all
Directors including the Chair are available on the Company's
website and are provided in the Annual Report of the Company.
Auditors
As detailed in the previous Annual Report, an audit tender
process was carried out during 2016 following completion of
PricewaterhouseCoopers LLP's tenure as auditor. KPMG LLP were
appointed as the Company's external auditor at the AGM held on 7
September 2017. The year ending 30 April 2018 will be the first
audit to be carried out by KPMG LLP for the Company.
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 2017.
The investment manager's report comments on the outlook for
market related risks, including the increased volatility in share
prices and economic cycles.
The Company has a risk management framework that is 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.
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 2017
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.
MiFID II
As the previous Chair, Michael Moule, indicated in the full year
report, we have been in discussions with Polar Capital as our
Manager, about the future arrangements for third party research
costs. As a reminder, from January 2018, brokers' commission
payments will be "unbundled" into payments for execution and
payments for research provided by brokers. Before this point (to
summarise) these payments had been bundled together into one amount
paid as transaction commissions. In the financial year to April
2016, your Company paid some GBP2.7m in overall commissions, of
which GBP1.8m was for research. In the financial year to April
2017, a total of GBP2.3m was paid, of which GBP1.5m for
research.
Polar Capital Technology is a specialist trust, with a large
internal research team. However, in a rapidly changing sector
external research is also of considerable value and a considerable
amount of it is sourced from the US, where the regulatory
arrangements are as yet rather different from those which have been
developed in the EU. The team is a relatively heavy user of
external research. As a board, we do believe that it is important
to seek better alignment between the user of this research and the
payer for it, but we also observe that the ground is changing
rather rapidly, and we have decided we should put in place a
temporary arrangement whilst we observe what the consequences of
these changes might be for users, providers and subjects of
research.
Therefore, we have agreed with Polar Capital that for calendar
year 2018, we will contribute 50% of the unbundled research amount,
with a cap on that amount of US$ 878,000, representing a
considerable reduction in our costs. Polar Capital will contribute
the other 50% and any amounts paid over that cap. In addition, the
50% contribution made by the Company will be applied solely to
specialist technology research, with Polar Capital bearing the cost
of general research. Furthermore, in order to protect shareholders,
we have agreed with the manager that a further tier to our
management fee arrangements will be put in place for 2018, so that
management fees on net assets over GBP1.7bn will be reduced further
to 0.8%.
We will keep these arrangements under review during the year,
and will seek to reach a more permanent arrangement by the end of
2018.
Having considered the financial arrangements it has been
confirmed by the Company's corporate adviser that the contribution
to the cost of research is not a new related party transaction and
that no further approval is required.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors of Polar Capital Technology Trust plc, which are
listed in the Shareholder Information Section, confirm to the best
of their knowledge:
-- The condensed set of financial statements has been prepared
in accordance with IAS34 as adopted by the European Union and gives
a true and fair view of the financial position of the Company as at
31 October 2017 and the results for the six months ended 31 October
2017 as required by the Disclosure and Transparency Rules
4.2.4R;
-- The Interim Management Report includes a fair review of the
information required by the Disclosure and Transparency Rules
4.2.7R and 4.2.8R;
The half year financial report for the six-month period to 31
October 2017 has not been audited or reviewed by the Auditors. The
half year financial report for the six month period to 31 October
2017 was approved by the Board on 11 December 2017.
On behalf of the Board
Sarah Bates
Chair
FINANCIAL STATEMENTS
Statement of Comprehensive Income for the half year ended 31
October 2017
(Unaudited) (Unaudited) (Audited)
Notes Half year ended Half year ended Year ended
31 October 2017 31 October 2016 30 April 2017
Revenue Capital Total Revenue Capital Total Revenue Capital Total
return Return Return return return return Return return Return
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Investment
income 2 5,348 64 5,412 3,901 - 3,901 8,733 - 8,733
Other operating
income 2 53 - 53 1 - 1 8 - 8
Gains on
investments
held at fair
value 3 - 252,587 252,587 - 321,246 321,246 - 442,491 442,491
Net (losses)/gains
on derivative
contracts 4 - (3,790) (3,790) - 4,464 4,464 - 4,972 4,972
Other currency
gains 5 - 534 534 - 6,226 6,226 - 6,333 6,333
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Total income 5,401 249,395 254,796 3,902 331,936 335,838 8,741 453,796 462,537
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Expenses
Investment management
fee (6,132) - (6,132) (4,445) - (4,445) (9,896) - (9,896)
Other administrative
expenses (472) - (472) (493) - (493) (923) - (923)
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Performance
fee - (4,382) (4,382) - - - - - -
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Total expenses (6,604) (4,382) (10,986) (4,938) - (4,938) (10,819) - (10,819)
-------- -------- --------- -------- -------- -------- --------- --------- ---------
(Loss)/profit
before finance
costs and tax (1,203) 245,013 243,810 (1,036) 331,936 330,900 (2,078) 453,796 451,718
Finance costs (312) - (312) (331) - (331) (650) - (650)
-------- -------- --------- -------- -------- -------- --------- --------- ---------
(Loss)/profit
before tax (1,515) 245,013 243,498 (1,367) 331,936 330,569 (2,728) 453,796 451,068
Tax (770) - (770) (527) - (527) (1,220) - (1,220)
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Net (loss)/profit
for the period
and total
comprehensive
income (2,285) 245,013 242,728 (1,894) 331,936 330,042 (3,948) 453,796 449,848
-------- -------- --------- -------- -------- -------- --------- --------- ---------
Earnings per
ordinary share
(basic) (pence) 7 (1.72) 184.28 182.56 (1.43) 250.83 249.40 (2.98) 342.83 339.85
-------------------- -------- -------- --------- -------- -------- -------- --------- --------- ---------
The total column of this statement represents the Company's
Statement of Comprehensive Income, prepared in accordance
with IFRS as adopted by the European Union.
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 at 31 October 2017
(Unaudited) (Unaudited) (Audited)
Note 31 October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Non-current assets
Investments held at
fair value through
profit or loss 1,470,071 1,105,312 1,220,068
--------------------- ------------------- -------------------
Current assets
Derivative financial
instruments held at
fair value through
profit or loss 136 2,811 716
Receivables 4,918 4,901 20,807
Receivables from issue
of ordinary shares 740 - -
Overseas tax recoverable 91 92 70
Cash and cash equivalents 75,071 68,447 63,602
--------------------- ------------------- -------------------
80,956 76,251 85,195
--------------------- ------------------- -------------------
Total assets 1,551,027 1,181,563 1,305,263
--------------------- ------------------- -------------------
Current liabilities
Payables (10,935) (9,546) (15,545)
Bank loans (35,876) (40,663) (37,193)
Bank overdraft (1,840) (5) -
--------------------- ------------------- -------------------
(48,651) (50,214) (52,738)
--------------------- ------------------- -------------------
Net assets 1,502,376 1,131,349 1,252,525
--------------------- ------------------- -------------------
Equity attributable
to equity shareholders
Share capital 33,289 33,084 33,122
Capital redemption
reserve 12,802 12,802 12,802
Share premium 150,243 141,955 143,287
Special non-distributable
reserve 7,536 7,536 7,536
Capital reserves 1,382,520 1,015,647 1,137,507
Revenue reserve (84,014) (79,675) (81,729)
--------------------- ------------------- -------------------
Total equity 1,502,376 1,131,349 1,252,525
--------------------- ------------------- -------------------
Net asset value per
ordinary share (pence) 8 1128.29 854.91 945.39
--------------------------- ----- --------------------- ------------------- -------------------
Statement of Changes in Equity for the half year ended 31
October 2017
(Unaudited) Half year ended 31 October
2017
Capital Special
Share redemption Share non-distributable Capital Revenue
capital reserve premium reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------------- ---------------- --------------- ------------------- -------------- --------- --------------
Total
equity
at 30
April
2017 33,122 12,802 143,287 7,536 1,137,507 (81,729) 1,252,525
Issue
of ordinary
shares 167 - 6,956 - - - 7,123
Total
comprehensive
income:
Profit/(loss)
for the
period
to 31
October
2017 - - - - 245,013 (2,285) 242,728
Total
equity
at 31
October
2017 33,289 12,802 150,243 7,536 1,382,520 (84,014) 1,502,376
--------------- --------------- ---------------- --------------- ------------------- -------------- --------- --------------
(Unaudited) Half year ended 31 October
2016
Capital Special
Share redemption Share non-distributable Capital Revenue
capital reserve premium reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------------- ---------------- --------------- ------------------- -------------- --------- --------------
Total
equity
at 30
April
2016 33,084 12,802 141,955 7,536 683,711 (77,781) 801,307
Total
comprehensive
income:
Profit/(loss)
for the
period
to 31
October
2016 - - - - 331,936 (1,894) 330,042
Total
equity
at 31
October
2016 33,084 12,802 141,955 7,536 1,015,647 (79,675) 1,131,349
--------------- --------------- ---------------- --------------- ------------------- -------------- --------- --------------
(Audited) Year ended 30 April 2017
Capital Special
Share redemption Share non-distributable Capital Revenue
capital reserve premium reserve reserves reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------- --------------- ---------------- --------------- ------------------- -------------- --------- --------------
Total
equity
at 30
April
2016 33,084 12,802 141,955 7,536 683,711 (77,781) 801,307
Issue
of ordinary
shares 38 - 1,332 - - - 1,370
Total
comprehensive
income:
Profit/(loss)
for the
year
to 30
April
2017 - - - - 453,796 (3,948) 449,848
Total
equity
at 30
April
2017 33,122 12,802 143,287 7,536 1,137,507 (81,729) 1,252,525
--------------- --------------- ---------------- --------------- ------------------- -------------- --------- --------------
Note - Share capital, Capital redemption reserve, Share premium
and Special non-distributable reserve are all non-distributable.
Capital reserves and revenue reserve are distributable.
Cash Flow Statement for the half year ended 31 October 2017
(Unaudited) (Unaudited) (Audited)
Half Half Year
year year ended
ended ended
31 October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
------------ ------------ ----------
Cash flows from operating
activities
Profit before tax 243,498 330,569 451,068
Adjustment for non-cash
items:
Foreign exchange gains (534) (6,226) (6,333)
------------ ------------ ----------
Adjusted profit before finance
costs and tax 242,964 324,343 444,735
------------ ------------ ----------
Adjustments for:
Increase in investments (250,003) (340,541) (455,297)
Decrease/(increase) in derivative
financial instruments 580 (567) 1,528
Decrease/(increase) in receivables 15,889 7,910 (7,996)
(Decrease)/increase in payables (4,610) (5,829) 170
------------ ------------ ----------
(238,144) (339,027) (461,595)
------------ ------------ ----------
Net cash generated/(used
in) from operating activities
before tax 4,820 (14,684) (16,860)
Overseas tax deducted at
source (791) (523) (1,194)
------------ ------------ ----------
Net cash generated/(used
in) from operating activities 4,029 (15,207) (18,054)
Cash flows from financing
activities
Issue ordinary shares 6,383 - 1,370
------------ ------------ ----------
Net cash generated from
financing activities 6,383 - 1,370
------------ ------------ ----------
Net increase/(decrease)
in cash and cash equivalents 10,412 (15,207) (16,684)
Cash and cash equivalents
at the beginning of the
period 63,602 70,325 70,325
Effect of foreign exchange
rate changes (783) 13,324 9,961
------------ ------------ ----------
Cash and cash equivalents
at the end of the period 73,231 68,442 63,602
------------------------------------ ------------ ------------ ----------
Notes to the Financial Statements for the six-month period ended
31 October 2017
1. General Information
The financial statements comprise the unaudited results for
Polar Capital Technology Trust plc for the six month period to 31
October 2017.
The unaudited financial statements to 31 October 2017 have been
prepared using the accounting policies used in the annual financial
statements to 30 April 2017. These accounting policies are based on
International Financial Reporting Standards ('IFRS'), which
comprise standards and interpretations approved by the
International Accounting Standards Board ('IASB') and the
International Accounting Standards Committee ('IASC'), as adopted
by the European Union. Where presentational guidance set out in the
Statement of Recommended Practice (the "SORP") for investment
trusts issued by the Association of Investment Companies in
November 2014 and updated in January 2017, is consistent with the
requirements of International Financial Reporting Standards, 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 2017 and 31 October 2016 have not been
audited. The figures and financial information for the year ended
30 April 2017 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 2017, prepared
under IFRS, 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 2017.
The financial statements are presented in Pounds Sterling and
all values are rounded to the nearest thousand Pounds (GBP'000),
except where otherwise stated.
The Directors believe that it is appropriate to adopt the going
concern basis in preparing the financial statements. The assets of
the Company consist 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.
2. Income (Unaudited) (Unaudited)
For the For the (Audited)
half half For the
year ended year ended year ended
31 October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
---------------------------- ----------- ----------- -----------
Income from investments
held at fair value through
profit or loss
Franked dividends 82 97 140
Unfranked dividends 5,266 3,804 8,593
----------- ----------- -----------
5,348 3,901 8,733
----------- ----------- -----------
Other operating income
Bank interest 53 1 8
----------- ----------- -----------
Total income 5,401 3,902 8,741
----------- ----------- -----------
Capital:
---------------------------- ----------- ----------- -----------
Special dividends allocated
to capital 64 - -
---------------------------- ----------- ----------- -----------
Total investment income
allocated to capital 64 - -
---------------------------- ----------- ----------- -----------
3. GAINS ON INVESTMENT (Unaudited) (Unaudited) (Audited)
HELD AT FAIR VALUE For the For the For the
half half year ended
year ended year ended 30 April
31 October 31 October 2017
2017 2016 GBP'000
GBP'000 GBP'000
-------------------------------- ------------ ------------ ------------
Net gains on disposal
of investments at historic
cost 96,702 70,544 130,629
Transfer on disposal
of investments (75,026) (7,221) (16,490)
------------ ------------ ------------
Gains based on carrying
value at previous balance
sheet date 21,676 63,323 114,139
Valuation gains on investments
held during the year 230,911 257,923 328,352
252,587 321,246 442,491
-------------------------------- ------------ ------------ ------------
4. (LOSSES)/GAINS ON (Unaudited) (Unaudited) (Audited)
DERIVATIVES For the For the For the
half half year ended
year ended year ended 30 April
31 October 31 October 2017
2017 2016 GBP'000
GBP'000 GBP'000
---------------------------- ------------ ------------ ------------
(Losses)/gains on disposal
of derivatives held (3,132) 5,469 6,021
Losses on revaluation
of derivatives held (658) (1,005) (1,049)
------------ ------------ ------------
(3,790) 4,464 4,972
---------------------------- ------------ ------------ ------------
5. OTHER CURRENCY GAINS (Unaudited) (Unaudited) (Audited)
For the For the For the
half half year ended
year ended year ended 30 April
31 October 31 October 2017
2017 2016 GBP'000
GBP'000 GBP'000
-------------------------- ------------ ------------ ------------
Exchange (losses)/gains
on currency balances (783) 13,323 9,961
Exchange gains/(losses)
on translation of loan
balances 1,317 (7,097) (3,628)
------------ ------------ ------------
534 6,226 6,333
-------------------------- ------------ ------------ ------------
6. INVESTMENT MANAGEMENT AND PERFORMANCE FEES
INVESTMENT MANAGEMENT FEE
The investment management fee is 1% on the Net Asset Value per
share multiplied by the arithmetic mean of the number of shares up
to GBP800m and above GBP800m the investment management fee reduces
to 0.85%. The fee is payable quarterly in arrears based on the Net
Asset Value at the end of each quarter. Any investments in funds
managed by Polar Capital are excluded from the management fee
calculation. During the period to 31 October 2017 the GBP800m value
was exceeded and the lower management fee of 0.85% was charged on
the excess resulting in a blended rate for the period.
In connection with the research budget agreed in relation to the
MiFID II Regulations as detailed in the Corporate Matters section
above and referenced below. It has been agreed that from 3 January
2018 a temporary third tier management fee of 0.80% shall be
applied and payable on net assets over GBP1.7bn. Such temporary
third tier shall be reviewed in conjunction with any change to the
arrangements agreed in relation to the cost of research.
The total research budget for 2018 has been calculated and it
has been agreed that the Company will contribute 50% of the total
cost with the Manager contributing the remaining 50% (amounting to
US$878,000 each). The Company contribution will be wholly applied
to the cost of specialist research, the Manager's contribution will
be applied to any excess cost of specialist research and the full
cost of generalist research.
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. A fuller
explanation of the performance and management fee arrangements is
provided in the Annual Report for the year ended 30 April 2017.
At 31 October 2017 there is an accrued performance fee of
GBP4,380,000. The quantum of any performance fee will be based on
the audited net asset value at the year end on 30 April 2018.
7. (LOSSES)/Earnings (Unaudited) (Unaudited)
per ordinary share For the For the (Audited)
half half For the
year ended year ended year ended
31 October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
--------------------------- ----------- ----------- -----------
Net (loss)/profit for
the period:
Revenue (2,285) (1,894) (3,948)
Capital 245,013 331,936 453,796
----------- ----------- -----------
Total 242,728 330,042 449,848
----------- ----------- -----------
Weighted average number
of shares in issue during
the period 132,955,392 132,336,159 132,368,398
Revenue (1.72)p (1.43)p (2.98)p
Capital 184.28p 250.83p 342.83p
----------- ----------- -----------
Total 182.56p 249.40p 339.85p
--------------------------- ----------- ----------- -----------
8. Net asset value per
ordinary share (Unaudited) (Unaudited) (Audited)
31 October 31 October 30 April
2017 2016 2017
----------------------------- ----------- ----------- -----------
Undiluted:
Net assets attributable
to ordinary shareholders
(GBP'000) 1,502,376 1,131,349 1,252,525
Ordinary shares in issue
at end of period 133,155,000 132,336,159 132,487,000
Net asset value per ordinary
share 1128.29p 854.91p 945.39p
----------------------------- ----------- ----------- -----------
9. 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 2017.
PORTFOLIO BREAKDOWN
Market Capitalisation of underlying
investments
% of invested assets <$1bn $1bn-$10bn >$10bn
as at 31 October 2017 2.5% 22.2% 75.3%
as at 30 April 2017 5.2% 23.7% 71.1%
As at 31 As at
Breakdown of Investments October 30 April
by Geographic Region 2017 2017
North America 66.1% 69.0%
Asia Pacific 24.8% 22.5%
Europe 7.0% 5.9%
Cash 2.1% 2.6%
Classification of Investments as at 31 October 2017
(Classifications derived Total Total
from benchmark index)
North Asia 31 October 30
America Europe & Pacific 2017 April
2017
% % % % %
Internet Software & Services 18.5 0.8 7.7 27.0 27.6
Software 20.0 1.8 1.3 23.1 26.8
Semiconductors & Semiconductor
Equipment 8.6 2.4 5.6 16.6 13.7
Technology Hardware,
Storage & Peripherals 7.5 0.1 4.8 12.4 12.6
Electronic Equipment,
Instruments & Components 3.1 0.2 1.4 4.7 3.8
Internet & Direct Marketing
Retail 3.0 0.1 - 3.1 3.9
IT Services 2.1 0.6 0.2 2.9 2.0
Machinery 0.3 - 1.8 2.1 1.8
Chemicals 0.2 - 1.4 1.6 1.0
Communications Equipment 1.5 - - 1.5 1.5
Healthcare Equipment
& Supplies - - 0.6 0.6 0.7
Healthcare Technology 0.5 - - 0.5 1.0
Aerospace & Defense 0.5 - - 0.5 0.8
Professional Services - 0.4 - 0.4 -
Electrical Equipment - 0.4 - 0.4 -
Automobiles 0.3 - - 0.3 -
Household Durables - 0.2 - 0.2 0.2
Total investments 66.1 7.0 24.8 97.9 97.4
Other net assets (excluding
loans) 2.1 1.3 1.1 4.5 5.5
Loans (1.2) - (1.2) (2.4) (2.9)
--------- --------- ------------ ----------- -------
Grand total (net assets
of GBP1,502,376,000) 67.0 8.3 24.7 100.0 -
--------- --------- ------------ ----------- -------
At 30 April 2017 (net
assets of GBP1,252,525,000) 70.3 8.7 21.0 - 100.00
--------- --------- ------------ ----------- -------
PORTFOLIO OF INVESTMENTS
Value of % of Net
NORTH AMERICA Holding Assets
31 30 31 30
October April October April
2017 2017 2017 2017
GBP'000 GBP'000 % %
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Apple Storage & Peripherals 112,320 88,851 7.5 7.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Alphabet (previously Internet Software
Google) & Services 111,216 108,486 7.4 8.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Microsoft Software 92,817 76,288 6.2 6.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Facebook & Services 89,296 72,312 5.9 5.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet & Direct
Amazon.com Marketing Retail 37,313 36,105 2.6 2.9
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Applied Materials Equipment 25,211 17,157 1.7 1.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Texas Instruments Equipment 20,400 14,753 1.4 1.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Salesforce.com Software 20,064 21,332 1.3 1.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Adobe Software 19,533 18,085 1.3 1.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
ServiceNow Software 18,626 15,246 1.2 1.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Nvidia Equipment 18,576 7,885 1.2 0.6
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
New Relic & Services 17,288 16,518 1.2 1.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Splunk Software 16,786 21,331 1.1 1.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
LAM Research Equipment 16,437 10,486 1.1 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Proofpoint Software 15,989 11,593 1.1 0.9
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Xilinx Equipment 15,800 12,101 1.1 1.0
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Dolby Laboratories Instruments & Components 15,800 14,397 1.1 1.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Red Hat Software 15,520 11,223 1.0 0.9
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Advanced Micro Semiconductors & Semiconductor
Devices Equipment 14,754 13,444 1.0 1.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Activision Software 13,839 10,393 0.9 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Universal Display Instruments & Components 12,942 11,510 0.9 0.9
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Arista Networks Communications Equipment 12,578 10,026 0.8 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
PayPal IT Services 12,553 4,049 0.8 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
HubSpot Software 12,460 10,190 0.8 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic
Arts Software 12,409 14,400 0.8 1.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Zendesk Software 11,938 15,327 0.8 1.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Cognex Instruments & Components 11,154 2,893 0.7 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Lumentum Communications Equipment 10,692 - 0.7 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Visa IT Services 9,816 9,326 0.7 0.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
RingCentral Software 9,543 8,763 0.6 0.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Box & Services 9,387 5,657 0.6 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Five9 & Services 9,162 7,126 0.6 0.6
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Square IT Services 8,364 3,798 0.6 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
8X8 & Services 8,001 9,009 0.5 0.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Cree Equipment 7,732 - 0.5 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Pegasystems Software 7,440 9,545 0.5 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Everbridge Software 7,296 5,859 0.5 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Axon Enterprise Aerospace & Defense 7,114 9,925 0.5 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Workday Software 6,892 2,822 0.5 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Medidata Solutions Healthcare Technology 6,832 8,831 0.5 0.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
eBay & Services 6,717 6,232 0.4 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
IAC Interactive & Services 6,688 3,433 0.4 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Littlefuse Instruments & Components 5,696 - 0.4 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet & Direct
Priceline.com Marketing Retail 5,441 6,123 0.4 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
2U & Services 5,433 - 0.4 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Take Two Interactive
Software Software 5,006 4,025 0.3 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Rapid7 Software 4,988 4,623 0.3 0.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Tesla Motors Automobiles 4,893 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Autodesk Software 4,840 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Micron Technology Equipment 4,319 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Proto Labs Machinery 4,306 4,404 0.3 0.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
MuleSoft & Services 4,268 338 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Ansys Software 3,974 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Alteryx & Services 3,633 - 0.2 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Cloudera & Services 3,344 3,772 0.2 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
J2 Global & Services 3,280 3,473 0.2 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Varonis Systems Chemicals 3,178 865 0.2 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Inphi Equipment 2,744 2,675 0.2 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
MA-COM Technology Semiconductors & Semiconductor
Solutions Equipment 1,623 - 0.1 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Callidus Software Software 1,182 4,034 0.1 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Twilio & Services 1,177 2,622 0.1 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Kinaxis Software 889 7,699 0.1 0.6
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Shotspotter & Services 835 - 0.1 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
KVH Industries Communications Equipment 698 - - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Twitter & Services 592 2,178 - 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet & Direct
Despegar.com Marketing Retail 510 - - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
MongoDB Software 459 - - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Cermetek Microelectronics* Other - - - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Total North
American investments 992,603 66.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Value of % of Net
EUROPE Holding Assets
31 30 31 30
October April October April
2017 2017 2017 2017
GBP'000s GBP'000s % %
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
ASML Equipment 19,771 10,320 1.3 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
UBI Soft Entertainment Software 10,268 11,909 0.7 1.0
--------------------------- ------------------------------- ---------- ---------- ---------- --------
First Derivatives IT Services 8,785 7,037 0.6 0.6
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Mimecast & Services 8,122 - 0.5 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
SAP Software 8,118 7,347 0.5 0.6
--------------------------- ------------------------------- ---------- ---------- ---------- --------
TKH Group Electrical Equipment 6,334 - 0.4 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Aixtron Equipment 6,148 1,473 0.4 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
Infineon Technologies Equipment 6,132 2,682 0.4 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
RELX Group Professional Services 5,387 - 0.4 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Talend ADR Software 5,192 9,175 0.3 0.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors & Semiconductor
STMicroelectronics Equipment 4,976 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Criteo & Services 4,552 6,444 0.3 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
TOM TOM Household Durables 2,862 2,620 0.2 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Accesso Technology Instruments & Components 2,611 2,206 0.2 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet & Direct
Zalando Marketing Retail 2,062 3,614 0.1 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Aveva Group Software 1,931 3,041 0.1 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Tobii Storage & Peripherals 1,677 1,824 0.1 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Materalise Software 1,640 1,206 0.1 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Alfa Financial
Software Software 1,220 - 0.1 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Herald Ventures
Limited Partnership
II Other 117 91 - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Low Carbon
Accelerator* Other - - - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Total European
investments 107,905 7.0
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Value of % of Net
ASIA & PACIFIC Holding Assets
31 30 31 30
October April October April
2017 2017 2017 2017
GBP'000s GBP'000s % %
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Samsung Storage & Peripherals 50,811 48,157 3.5 3.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Tencent Holdings & Services 46,734 33,483 3.2 2.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Alibaba & Services 43,039 29,487 2.9 2.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Taiwan Semiconductor Semiconductor Equipment 26,842 15,874 1.8 1.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Nintendo Software 15,032 8,811 1.0 0.7
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Toyko Electron Semiconductor Equipment 13,728 10,977 0.9 0.9
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
Baidu & Services 13,698 5,902 0.9 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Broadcom Semiconductor Equipment 10,849 6,138 0.7 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Keyence Instruments & Components 10,488 10,211 0.7 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Internet Software
NetEase & Services 9,745 10,245 0.6 0.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Fanuc Corporation Machinery 9,711 5,949 0.6 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Fuji Machine
Manufacturing Machinery 9,702 5,473 0.6 0.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Nitto Denko Chemicals 9,314 4,380 0.6 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Healthcare Equipment
Hoya & Supplies 8,866 5,627 0.6 0.4
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Renesas Electronics Semiconductor Equipment 8,833 - 0.6 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Advantest Semiconductor Equipment 8,642 - 0.6 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Naver Storage & Peripherals 7,853 7,101 0.5 0.6
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Samsung Electronics Storage & Peripherals 6,629 - 0.4 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Silergy Semiconductor Equipment 5,653 4,082 0.4 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Pixart Imaging Semiconductor Equipment 5,597 3,399 0.4 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Shin-Etsu
Chemical Chemicals 5,434 - 0.4 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Hamamatsu Electronic Equipment,
Photonics Instruments & Components 4,901 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Murata Manufacturing Instruments & Components 4,465 6,029 0.3 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Harmonic Drive
Systems Machinery 4,458 6,220 0.3 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
CyberArk Software Software 4,112 12,157 0.3 1.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Shima Seiki
Manfacturing Machinery 3,853 - 0.3 -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Acer Storage & Peripherals 3,220 3,018 0.2 0.2
--------------------------- ------------------------------- ---------- ---------- ---------- --------
SK Material Chemicals 3,037 6,263 0.2 0.5
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Semiconductors &
Ememory Technology Semiconductor Equipment 3,023 3,498 0.2 0.3
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Zuken IT Services 2,863 1,426 0.2 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Technology Hardware,
Hitachi Maxell Storage & Peripherals 2,548 2,283 0.2 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
MEC Chemicals 2,259 1,841 0.2 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Mix Telematics Internet Software
ADR & Services 1,882 1,269 0.1 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Electronic Equipment,
Seeing Machines Instruments & Components 1,742 1,188 0.1 0.1
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Unus Technologies* Other - - - -
--------------------------- ------------------------------- ---------- ---------- ---------- --------
Total Asian
investments 369,563 24.8
--------------------------- ------------------------------- ---------- ---------- ---------- --------
TOTAL INVESTMENTS 1,470,071 97.9
*holdings within the portfolio with no value at 31 October 2017
or 30 April 2017
DIRECTORS AND CONTACTS
Directors
Sarah C Bates (Chair from 7 September 2017)
Brian JD Ashford-Russell
Tim Cruttenden
Charlotta Ginman (Audit Chair)
Peter JD Hames
Michael B Moule (Chair until retirement on 7 September 2017)
Investment Manager and A I F M
Polar Capital LLP
Authorised and regulated by the Financial Services Authority
Portfolio Manager
Ben Rogoff
Secretary
Polar Capital Secretarial Services Limited represented by Tracey
Lago
Registered Office and address for contacting the Directors
16 Palace Street, London SW1E 5JD
020 7227 2700
Depositary, Bankers and Custodian
HSBC Bank Plc ,8 Canada Square, London E14 5HQ
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
Company Website
www.polarcapitaltechnologytrust.co.uk
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 8
to 47 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 for the first time opted not to post half year
reports to shareholders. Copies of this announcement 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 .
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 company news service from the London Stock Exchange
END
IR FFSFWFFWSELE
(END) Dow Jones Newswires
December 12, 2017 02:00 ET (07:00 GMT)
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