- NAV falls 2.8% versus 3% benchmark gain
- Polar Capital Technology Trust benefiting from tech stock rebound
- Shares up 31% year-to-date
Specialist technology investment trust Polar Capital Technology (PCT) reported a 2.8% fall in NAV (net asset value) for the year ending 30 April 2023 compared to a 7.7% fall in the same period last year.
The Polar Capital trust underperformed its benchmark – the Dow Jones Global Technology Index which returned 3% for the year ending 30 April 2023.
The trust’s shares however reacted positively to the news rising over 2% to £22.89 in morning trading. Year-to-date, shares are up 31%.
It remains the largest tech specialist investment trust, worth around £2.6 billion. It is no surprise that some of its largest holdings are tech giants Microsoft (MSFT:NASDAQ) – 10.3%, Apple (APPL:NASDAQ) – 9.3%, Alphabet (GOOG:NASDAQ) – 7% and Santa Clara-based chip designer Nvidia (NVDA:NASDAQ) – 6.2%.
AI BOOM RENEWS INTEREST IN TECH STOCKS
Polar Capital Technology Trust manager Ben Rogoff remains upbeat about the potential of AI (artificial intelligence) and how it might lift the trust’s performance going forward saying: ‘While we expect the market to broaden, we cannot help but share the market’s excitement about the AI opportunity which – at present – is most easily accessed via mega-cap stocks primarily within the semi-conductor and cloud computing sub-sectors.
‘After decades of unrealised hopes around artificial intelligence, we believe that generative AI is likely to prove the technology’s so-called ‘iPhone moment’, the new user interface that sparks mass adoption.’
EXPERT VIEW
Polar Capital Technology Trust’s performance has had somewhat of a ‘rollercoaster’ ride over the past year twinned with the fortunes of the US technology sector.
‘The fund’s NAV has risen another 17% since year-end giving a year-to-date rise of 33%, more than canceling out the 31% fall over the 2022 calendar year,’ according to Stifel analysts.
Despite this ‘rollercoaster ride’ Stifel analyst Will Crighton believes that the trust is ‘clearly benefiting from the substantial tech rally so far over 2023, the discount has not closed and is currently 15%.
‘This is actually wider than at the turn of the year, and start of the latest rally, when it was 12%, reflecting investor caution against valuations, which have once again risen to high levels.’
LEARN MORE ABOUT POLAR CAPITAL
