Polar Capital Technology Trust (PCT) H1 2025 earnings summary

Executive summary

• Net asset value (NAV) per share rose 11.6% to 352.15p for the six months to 31 October 2024, with total net assets reaching £4.18bn, up 9.9% year-over-year.

• NAV total return was 11.6%, underperforming the benchmark's 14.1% return, mainly due to underweight positions in US mega-cap technology stocks.

• Share price increased 6.3% to 310.50p, but the discount to NAV widened to 11.8%.

• No interim dividend declared, consistent with prior periods.

• The Trust remains focused on AI-driven technology investments, with significant exposure to leading AI and semiconductor companies.

Financial highlights

• Net assets increased to £4,179.5m from £3,804.5m as of 30 April 2024.

• Investment income for the period was £10.7m, with total income of £14.1m.

• Net profit for the period was £435.7m, up from £332.1m in the prior year period.

• Earnings per share (EPS) were 36.43p, compared to 26.63p for the same period last year.

• 19.34 million shares were repurchased into treasury at a cost of £60.4m.

Outlook and guidance

• The Trust expects continued strong AI-driven investment, with AI spending projected to reach $2.4trn by 2028.

• Management remains optimistic about AI's impact on productivity and corporate margins, but notes potential for elevated volatility.

• US policy changes, tariffs, and fiscal deficits are seen as key macro risks, but the US economy remains robust.

• The Trust will maintain significant AI exposure and continue to adjust portfolio positions in response to market and policy developments.