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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Polar Capital Technology Trust Plc | LSE:PCT | London | Ordinary Share | GB0004220025 | ORD 25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-65.00 | -2.24% | 2,835.00 | 2,820.00 | 2,835.00 | 2,910.00 | 2,825.00 | 2,910.00 | 237,331 | 14:24:56 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Investment Advice | -101.88M | -105.18M | -0.8128 | -34.82 | 3.66B |
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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