LONDON: Polar Capital Technology Trust PLC (PCT.L) reported a 3.1% rise in net asset value (NAV) per share to 325.20 pence for the financial year ending April 30, 2025, up from 315.41 pence a year earlier. The trust’s total net assets reached £3.80 billion, reflecting resilience despite geopolitical turbulence and sharp market swings driven by U.S. policy shifts under President Donald Trump.
Global equity markets delivered subdued returns during the period, with the MSCI All Country World Index rising 4.8%, while the S&P 500 and Euro Stoxx 600 gained 5% and 7.6%, respectively.
The trust’s portfolio generated a total return of £118.4 million—a sharp decline from £1.12 billion in 2024—comprising a £129.7 million capital gain offset by an £11.3 million revenue loss. Earnings per share fell to 9.97 pence from 90.42 pence, underscoring pressure from expenses and dividend-income shortfalls.
Capital returns were driven by £128.5 million in realized and unrealized gains, though derivative strategies contributed a modest £2.8 million amid volatile conditions. Revenue returns remained negative for the year, with investment income of £19.1 million (mainly dividends) outweighed by operating costs. Consistent with its long-term growth focus, the trust did not recommend a dividend.
Expenses climbed to £32.5 million, primarily from management fees. Notably, the trust secured a fee restructuring agreement with Polar Capital, reducing base management fees and eliminating performance fees effective May 1, 2025.
The latter half of the fiscal year saw extreme volatility following the U.S. election, Trump’s “Liberation Day” tariffs, and a 20% S&P 500 correction. Markets later rebounded after tariff negotiations eased, but U.S.-China trade tensions escalated, culminating in reciprocal tariffs up to 145%. DeepSeek’s disruptive AI model further rattled tech stocks, contributing to momentum unwinds.
Chairman Andrew Bell acknowledged “challenging macro headwinds” but emphasized confidence in the trust’s tech-focused strategy.