(Alliance News) - Polar Capital Technology Trust PLC on Wednesday reported a strong annual performance thanks to Covid-19 beneficiaries, as the trust shifts its portfolio to benefit from the "new normal".
The technology-focused investment trust posted a net asset value per share at April 30 of 2,496.44 pence, surging from 1,715.59p a year prior. Net assets rose 48% to GBP3.41 billion from GBP2.31 billion.
Shares in the trust were up 1.3% to 2,423.82p each in London on Wednesday morning.
For the year ended April 30, pretax profit rose sharply to GBP1.07 billion from GBP363.2 million a year prior, while total income surged to GBP1.09 billion from GBP383.5 million.
At the stock level, the trust said the strongest performance was delivered by Covid-19 beneficiaries, although this was weighted to the first half. These included ecommerce companies such as online fashion retailer Zalando SE as well as digital payment platforms such as PayPal Holdings Inc.
Software companies able to support remote work also delivered "outstanding returns", including Zoom Video Communications Inc.
The company also noted stellar performances from renewable energy firms SolarEdge Technologies Inc and Ceres Power Holdings PLC.
"Having begun the year with a number of core themes mapping well to beneficiaries of the pandemic, we gradually moved the portfolio to better position it for a 'new normal' backdrop in which a staggered reopening of economic activity would take place," the company said.
Polar Capital Technology Trust did not declare any dividend for the year, unchanged from last year. Historically, the company does not pay any dividends as it focuses on capital growth.
Looking ahead, the trust said: "The board does believe that long term trends continue to make a specialist technology trust attractive. We note the explosion of the use of the 'cloud' and would point to the opportunities that presents. We discuss the definition of technology and as our Manager describes, we observe some surprising changes in 'old economy' companies able to pivot towards, for example, electric vehicles. We expect disruption to continue and think our focus on that disruption will continue to be profitable for investors."
"The outlook for future performance is dependent to a significant degree on the world's financial markets and their reactions to economic events and other geopolitical forces," the trust added.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Polar Capital Technology Trust (PCT)
Ceres Power (CWR)