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Polar Capital Technology swings to loss; market volatility to persist

12th Dec 2022 09:39

(Alliance News) - Polar Capital Technology Trust PLC on Monday said it swung to an interim loss and net asset value per share fell, as it predicted market volatility to continue.

The London-based investment trust said pretax loss in the six months that ended October 31 was GBP280.8 million, swinging from a profit of GBP386.8 million a year earlier. This was largely due to a swing to a loss on investments held at fair value to GBP302.0 million from a gain of GBP408.3 million.

NAV per share on October 31 was 2,095.25 pence, down 9.1% from 2,305.13p a year earlier. This mirrored a 8.9% fall in the Dow Jones World Technology Index total return. Total net assets fell by 11% to GBP2.71 billion from GBP3.05 billion.

Shares in Polar Capital Technology were down 1.5% to 1,812.72 on Monday morning. The wider FTSE 250 index was down 1.0%.

Chair Catherine Cripps said the half-year period saw challenges from volatile markets, due to the war in Ukraine, price inflation, and central bank rate hikes. She added while the the technology sector 'suffered most acutely' in 2022, it expects technology to remain a driving force in the future as the global economy continues to digitise.

Fund Manager Ben Rogoff added he expects market volatility to continue: "As discussed during our most recent annual report, the range of potential outcomes, good and bad, looks unusually wide. We cannot know how fast inflation will fall and we continue to believe the Fed and other central banks will prioritise credibility ahead of the economy."

Rogoff continued: "We expect this market volatility to persist as risk is repriced until policymaker and shareholder interests are better aligned. This may result in a more volatile period of performance for the sector and the trust."

Polar Capital Technology declared no interim dividend for the period.

By Greg Rosenvinge, Alliance News reporter

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