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Polar Capital Technology underperforms benchmark in difficult year

19th Jul 2023 08:49

(Alliance News) - Polar Capital Technology Trust PLC on Wednesday reported that its net asset value per share fell, and it underperformed its benchmark in its year.

The London-based asset manager said its net asset value at April 30 was 2,239.5 pence per share, down 2.8% from 2,305.1 pence the prior year.

The company underperformed its benchmark, the Dow Jones Global Technology Index, which was up 2.9%.

Chair Catherine Cripps said: "I would like to be reporting more positive performance numbers, but generally markets have not been constructive and technology in particular has suffered in the post-Covid reset and high interest rate environment.

"Our underweighting of "mega-cap" technology stocks which now dominate the index and which continue to lead the sector was a significant factor in our underperformance relative to the benchmark."

Pretax loss narrowed to GBP103.0 million, down from GBP258.6 million the prior year. The company said this loss was driven by a a GBP98.3m loss from capital, compared to GBP241.9 million the previous year; and a GBP6.9 million loss on our income account, compared to GBP16.7 million the year prior, which offsets all expenses against dividend income.

The company did not declare a dividend, unchanged from the previous year.

Polar Capital Technology said it remained positive looking forward despite a challenging macroeconomic backdrop, with the emergence of AI technology.

"We look forward to the investment opportunities this brings for the sector, which looks well placed to benefit from AI disruption," said Chair Cripps.

Shares in Polar Capital Technology were up 2.4% at 2,287.95 pence in London on Wednesday morning.

By Will Neill, Alliance News reporter

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