Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • PCTT’s NAV per share increased by 3.1% to 325.20p for the year ended 30 April 2025
  • PCTT reported total net assets of GBP 3.8 billion and realised portfolio gains of GBP 128.5 million.
  • PCTT bought back 36.2 million shares in FY25 as discount widened to 11.3%.

Polar Capital Technology Trust plc (LSE: PCTT) has published its Annual Report for the financial year ended 30 April 2025, detailing portfolio performance, governance updates, and financial outcomes amid a volatile market for technology investments. The trust reported a 3.1% rise in net asset value (NAV) per share to 325.20p, compared to 315.41p a year earlier. This performance, however, lagged its benchmark which increased by 5.1% in sterling terms during the same period. Total net assets stood at GBP 3,804.9 million at year-end. The board attributed underperformance primarily to an overweight position in small-cap stocks and challenges in stock selection within that segment. Annualised returns over five and ten years stood at 13.6% and 18.4% respectively, compared with the benchmark’s 16.8% and 18.8%.

Chair Catherine Cripps noted in the statement that market volatility driven by geopolitical and economic developments such as US tariff policy changes and new competition in artificial intelligence (AI) had affected sector performance. The company cited continued developments in agentic AI as an area of future investment focus.

During the year, PCTT repurchased 36.2 million shares amounting to 2.6% of its issued capital at an average discount of 10.4% to NAV. The trust’s share price discount widened to 11.3% by year-end from 7.4% the previous year. An additional 12 million shares were repurchased after the period ended, reflecting the trust’s ongoing use of buybacks as a discount management tool. The trust recorded a total return of GBP 118.4 million, comprised of GBP 129.7 million in capital gains and an GBP 11.3 million revenue loss. Total investment income reached GBP 9.1 million, with an additional GBP 6.3 million in operating income from bank and money market interest.

The company emphasised that the revenue account remains in deficit as all non-performance-related expenses are allocated to it, and reiterated that it does not currently pay dividends, in line with its long-term capital growth objective. Portfolio turnover rose significantly during FY25 to nearly 120% of average net assets, from 85.5% in the previous year, with purchases and sales totalling GBP 4.56 billion.

Operating expenses rose to GBP 32.5 million, mainly driven by a GBP 5 million increase in investment management fees. No performance fees were accrued during the year. Following a triennial review, a revised fee structure came into effect on 1 May 2025, introducing tiered base management fees and removing performance fees entirely. As of year-end, the company held GBP 187.9 million in cash and equivalents, including GBP 21.4 million in a US Treasury money market fund. Gearing remained conservative, with a GBP 15 billion loan from Bank of Nova Scotia representing 2% of NAV.

In December 2024, Adiba Ighodaro joined the Board as a non-executive director following the retirement of Charlotta Ginman. The company is planning succession for other directors approaching nine-year tenures, with changes expected by late 2027. PCTT’s AGM will be held on 10 September 2025, where the trust will face its scheduled five-year continuation vote. Shareholder engagement to date has been broadly supportive, and the Board recommends a vote in favour of continuation.

The trust continues to incorporate ESG factors in its investment process. As of 30 April 2025, both the portfolio and benchmark were rated 'A' by MSCI. While macroeconomic headwinds and market volatility persist, the board sees opportunities within the evolving AI sector. 

PCT share were trading at 0.48% lower at GBX 370.70 per share on 11 July 2025.