Polar Capital Technology Trust (416.25p and 4% of the JIC portfolio) I have this morning bought a 4% holding in the Polar Capital Technology Trust. There are a couple of longer term themes that I am backing in the JIC portfolio; biotechnology and healthcare through the Biotech Growth Trust and Worldwide Healthcare Trust and technology through Herald Investment Trust and now also, the Polar Capital Technology Trust.
The Trust’s investment objective is to achieve above average capital growth by investing in a globally diversified portfolio of technology companies which is different to the Herald Trust which is focussed more on mid and smaller cap companies and on the UK, which accounts for 65% of its assets.
As at 12th March Polar Capital Technology had a market value of £531m and net assets per share of 435.06p. The shares stand at a discount of about 4.5% to net asset value. It is currently invested around 70% in the US, 14% in Asia Pacific, 9% in Europe3% in the Middle East and the remainder in cash. The top 10 holdings account for around 37% of assets and include Apple, Google, Microsoft, Samsung, IBM, Oracle, Qualcomm, Taiwan Semiconductors, SAP and Cisco.
The Trust charges a management fee of 1% per annum and a performance fee of 15% of the amount by which the increase in the adjusted Net Asset Value per share exceeds the total return on the Dow Jones World Technology Index (total return, Sterling adjusted) multiplied by the time weighted average of the number of shares in issue during that period, subject to a high water mark. I'm not keen on performance fees as I think you get paid to do your job and should be trying your hardest whatever.
Conclusion: Buying this Trust has increased my exposure to technology companies, the USA and $US, all of which I am happy with. It is well managed and has a good performance record.
I funded the purchase by reducing the Herald Investment Trust to 4% and taking profits in the Lyxor ETF China Enterprise Fund which I have sold out of completely. (See Transactions)
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Polar Capital Technology Trust plc is an investment company. The Company’s investment portfolio is a long-only fund, which it buys and holds shares to seek appreciation in their value and consequently in the net asset value (NAV) of the Company. The Company’s investment objective is to maximize long-term capital growth through investing in a diversified portfolio of technology companies worldwide. During the fiscal year ended April 30, 2012 (fiscal 2012), its portfolio consisted of Apple, Microsoft, Google, IBM, Intel, Qualcomm, Oracle, Cisco, EMC, Salesforce.com, Texas Instruments, Citrix Systems, Network Appliance, Red Hat and Juniper Networks. The Company has one subsidiary, PCT Finance Limited. Its investment manager is Polar Capital LLP (Polar Capital). more »
