Half Yearly Report

RNS Number : 6567N

RCM Technology Trust PLC

30 July 2014

 



                                                                                                                           30 July 2014

RCM TECHNOLOGY TRUST PLC

HALF-YEARLY FINANCIAL REPORT

For the six months ended 31 May 2014

Highlights

	31 May 2014	30 November 2013	% Change
Net Asset Value per Ordinary Share	518.3p	519.0p	(0.1)
Ordinary Share Price	498.5p	517.0p	(3.6)
Discount on Ordinary Share Price to Net Asset Value per Ordinary Share	3.8%	0.4%	n/a
Dow Jones World Technology Index (sterling adjusted total return)	449.2	417.3	7.6
Shareholders' Funds	£133.5m*	£131.6m	1.4
Ordinary Shares in issue	25,768,006*	25,349,941	1.6
Sterling : US Dollar exchange rate	1.68	1.64	2.4

* This includes 418,065 Ordinary Shares issued out of treasury at a value of £2,424,739.

The Company has not declared an interim dividend (2013: nil).

Interim Management Report

Net asset value and dividend

During the first three months of the interim period to 31 May 2014, investors in the Trust continued to benefit from the strong absolute and relative performance we saw during the last financial year, to 30 November 2013, when the Trust outperformed the benchmark by 26.7%, as stocks continued to benefit from growth trends such as the Cloud and mobile internet. However, the sharp selloff in March this year, which affected these higher growth and higher valuation stocks, resulted in the Company's net asset value per Ordinary Share decreasing by 0.1%, from 519.0p to 518.3p for the six months to 31 May 2014. This represented an underperformance against the Company's benchmark, the Dow Jones World Technology Index, which rose by 7.6 per cent in sterling terms over the same period. The performance of the Trust was also affected by the US dollar weakening against Sterling during the period as the majority of the Company's assets are denominated in US dollars.

The Ordinary Share price fell by 3.6% in the period, from 517.0p to 498.5p at the period end and the discount to NAV was 3.8% compared with 0.4% at 30 November 2013.

Shareholders' funds were £133.5 million, an increase of £1.9 million, due primarily to the issue of shares out of treasury described below. 

No dividend is payable in respect of the six months ended 31 May 2014 (2013: nil).

Board

As previously advised in the last Annual Financial Report, David Quysner retired as a Director and Chairman at the Annual General Meeting on 2 April 2014.  I would like to thank David for all his efforts and guidance since his appointment to the Board in March 2003.

Name Change

Following the merger of RCM with Allianz Global Investors last year, the Board has resolved to change the Company's name to Allianz Technology Trust PLC and has reserved ATT as the new ticker for the Company. It is intended that the new name and ticker will come into effect around 18 August 2014.

Material events and transactions

In the six month period to 31 May 2014 the following material events and transactions took place:

At the Annual General Meeting of the Company held on 2 April 2014 all resolutions put to shareholders were passed. 

During the period noOrdinary Shares were purchased for holding in treasury or for cancellation, and no further Ordinary Shares have been purchased since the period end.  On 7 March 2014 418,065 Ordinary Shares were issued from treasury to the Manager at a price of 579.99 pence per share as part consideration for the performance fee payable for the year to 30 November 2013.

On 18 July 2014 the Company appointed Allianz Global Investors Europe GmbH, UK Branch as the designated Alternative Investment Fund Manager for the Company and also appointed BNY Mellon Trust & Depositary (UK) Limited as its depositary in accordance with the Alternative Investment Fund Manager Directive.

Principal risks and uncertainties for the next six months

The principal risks and uncertainties facing the Company over the next six months are broadly unchanged from those described in the Annual Financial Report for the year ended 30 November 2013. These are set out in the Strategic Report on page 29 of that Report, together with commentary on the Board's approach to mitigating the risks and uncertainties, under the following headings: Investment Strategy Risk; Technology Risk; Market and Currency Risk; and Financial and Liquidity Risk.

Responsibility statement

The Directors confirm to the best of their knowledge that:

·      the condensed set of financial statements contained within the half-yearly financial report has been prepared in accordance with the Accounting Standards Board's Statement: 'Half-Yearly Financial Reports'; and

·      the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7 R, of important events that have occurred during the first six months of the financial year, and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·      the interim management report includes a fair review of the information concerning related parties transactions as required by Disclosure and Transparency Rule 4.2.8 R.

The half-yearly financial report was approved by the Board on 28 July 2014 and the above responsibility statement was signed on its behalf by the Chairman.

Robert Jeens

Chairman

Investment Managers' Review

Investment Review  

As referred to by the Chairman, the Trust's strong outperformance achieved during the financial year to 30 November 2013, continued into the first half of the interim period to 31 May 2014. For the first three months of the period, the Trust continued to benefit from a reduction in the market's risk aversion with strong contributions from stocks driving or benefitting from key secular growth trends like Cloud and mobile internet, as well as other emerging technologies such as electric vehicles, and solar energy.

However, there was an abrupt change in market sentiment at the beginning of March as an announcement from the US Fed inferred that interest rates were going to rise, which caused many of the high multiple stocks with valuations based on future period cash flows to come under pressure. These concerns which started in early March accelerated as the month progressed.  The sell-off acutely impacted higher growth, higher valuation segments like Cloud and Internet and had a negative impact on several of our secular growth holdings, many of which were our top contributors during 2013. The Trust subsequently underperformed the benchmark on a relative basis through six months to 31 May 2014. 

We believe this rotation was primarily sentiment driven, as much of the blame for the sell-off in Internet and Cloud names has fallen on general valuation concerns, and there have been no substantive changes to the long-term positive outlooks for the Internet and Cloud companies. In fact, many of these companies reported solid progress on growth and operating targets during their earnings reports only to see their shares trade lower. Our strategic positioning in these segments is based on our belief that the long-term opportunities in companies driving the mega-themes will grow into their relatively rich valuations.

An area which we believe is rapidly growing is that of security. During the six months to 31 May 2014, security solutions firm Palo Alto Networks was one of the top positive contributors to the performance of the Trust. The company's hardware firewall products are able to enforce security policies across an enterprise's network at the application-, user-, and content-level. Shares surged near the end of the evaluation period ahead of the company's fiscal Q3 earnings release. In its report, Palo Alto beat consensus expectations on revenue, operating margins, and cash flow expectations on solid execution against a supportive demand backdrop. Importantly, the company also announced a settlement on a patent litigation case which was a long-standing overhang. In our view, Palo Alto Networks offers a best-in-class product suite within this area.

Though our strategy is primarily comprised of secular growth technology companies, we maintain a portion of the portfolio in more total-return oriented holdings that have attractive valuations but also have company/industry drivers that could help them re-rate. This segment serves as ballast to the higher-growth nature of our core holdings. As intended, this group did well over the period as many of our high-growth names came under selling pressure.

NAND flash memory maker, SanDisk, was among the holdings within the total return group that helped our performance. SanDisk's shares have risen as more favourable industry supply/demand dynamics have helped stabilize NAND prices and as sales have shifted toward the more profitable solid state drive (SSD) and embedded (smartphone/tablet) solutions segments. Notably, strong demand in the SSD segment has been brought on by rapid expansion of datacentres used to deliver Cloud services. Today, some of the most cutting-edge storage solutions used in datacentres are built with flash memory. We think that new smartphone builds later this year, stabilising PC demand, and the longer-term shift toward more advanced memory products will help maintain the favourable industry dynamics.

Similarly, total return holding Micron Technology, which makes DRAM chips, was also among the holdings that helped our performance. Shares seemed to find support from various industry research pieces and corporate commentary which indicated improving conditions in the critical PC end market for Micron's chips. Looking forward, our expectation is that the company will continue to see more stable prices and profits as a result of the supply rationalisation that has occurred in the DRAM market. With this changing supply dynamic, we believe the company could see an upward re-rate of its relatively low price/earnings multiple.

Other top contributors during the period include our overweight in Facebook and not holding enterprise software solutions company, SAP AG.

The key detractors to the Trust's performance during the period were our holdings in e-Health, ServiceNow and our underweight in Apple. eHealth, which was among the high-expectation stocks that succumbed to the selling pressures during the period, operates websites that allow consumers to obtain rate quotes and do side-by-side comparisons of health insurance plans in the United States. The company had partnered with the federal government to allow individuals in states that have not established their own exchanges to buy insurance through their platform.

We remain constructive on eHealth over the near-term but did trim our position to reduce risk. Over the longer-term, we think eHealth can grow its top-line considerably on the prospect of higher volumes driven by these customers and additional opportunities in the Medicare and employer markets.

Our position in ServiceNow was also one of the top detractors from returns over the period. ServiceNow provides cloud-based software solutions that automate and optimise corporate IT systems. In April, the company released quarterly billings (backlog) figures that were an impressive 64% above last year's results (estimates were for 55% billings growth). The underlying details of the quarter were also constructive as the company landed several large-scale deals with major global firms and demonstrated improving traction in areas outside its core IT service management (ITSM) market. Despite the strong results, ServiceNow was also one of the companies swept up in the high-growth/-expectation sell-off. We remain constructive on ServiceNow's growth prospects in the ITSM market and believe other investors will soon realise the company's opportunities in other areas of the enterprise, such as Human Resources and Finance.

Our underweight in Apple was also a relative detractor from returns as the company's shares surged following a better than expected first quarter results and notable capital return actions. We have recently reduced our underweight to Apple as we like the company's steady business, high free cash flows, and opportunities for additional capital returns. We also think the release of a larger-screened iPhone 6, possibly in the second half of the year, could prompt a more meaningful refresh cycle in the US.

Other active detractors during the six month period include Amazon.com and China-based Internet TV company, Youku Tudou.

Lastly, we made some adjustments to the positioning of the portfolio over the period. We narrowed the portfolio and discarded names that we didn't have high conviction in. As a result, a third of the portfolio is now invested in companies which are classified as high growth, innovators eg Facebook, Tesla Motors, Yelp and Palo Alto Networks; a further third of the portfolio is in companies with reasonable valuation relative to growth eg Priceline.com, Google, SunPower; and the final third is invested in companies with are attractively valued with optionality eg Western Digital, SanDisk, Microsoft and Apple. At the industry level, we are now slightly underweight in the internet software and services and moved to a near equal-weight in the semiconductor segment. From a market cap perspective, we maintain our mid-cap bias but modestly reduced our underweight in the large- and mega-cap segments during the period.

Outlook 

Looking forward, we continue to believe the technology sector can provide some of the best absolute and relative return opportunities in the equity markets - especially for bottom-up stock pickers. At present, we are seeing a wave of innovation in the sector that we believe has the potential to produce attractive returns for companies with best-in-class solutions. We also see a number of companies whose present valuations that, in our view, do not fully reflect positive company- and/or industry-specific tailwinds.

We agree that the valuations on many Cloud and Internet companies had become too lofty. In this sense, we think the pull-back is a healthy way of purging some of the speculative excesses that built up in the markets more recently. That said, we continue to see massive addressable markets for these dynamic areas of technology that are much larger than the combined market capitalisation of these groups. However, we have consolidated our exposure to these areas in select companies we believe have the most compelling solutions and whose business models demonstrate a discernable path to deliver strong earnings and cash flow growth over time.

We are also finding excellent investment opportunities among more attractively valued areas of technology. In particular, certain technology incumbents are making compelling progress on their "as-a-service" offerings. Additionally, components makers in the hard disk drive and memory spaces, previously thought to be casualties of languishing PC sales, are finding good demand from the expansion in data centres needed to store data and deliver Cloud services and more stable profitability profiles through industry consolidation. We think these companies could see significant re-ratings on their price multiples.

While the sell-off in Internet and Cloud names has been quite abrupt, we have been actively managing the portfolio against this type of rotation and reducing downside risks to our clients. We will continue to manage the portfolio carefully balancing risks and opportunities, leveraging our industry expertise, and emphasising individual stock selection.

Walter Price

Allianz Global Investors US LLC

SUMMARY OF UNAUDITED RESULTS

INCOME STATEMENT

for the six months ended 31 May 2014

	Revenue	Capital	Total
			Return
	£'000s	£'000s	£'000s
			(Note 2)
Net losses on investments held at fair value	-	(180)	(180)
Exchange gains on currency balances	-	318	318
Income	295	-	295
Investment management fee (see Note 2)	(558)	-	(558)
Administration expenses	(278)	-	(278)
Net return before finance costs and taxation	(541)	138	(403)
Finance costs: Interest payable and similar charges	-	-	-
Net return on ordinary activities before taxation	(541)	138	(403)
Taxation	(39)	-	(39)
Net return attributable to Ordinary Shareholders	(580)	138	(442)
Net return per Ordinary Share (Note 1)	(2.27p)	0.54p	(1.73p)

BALANCE SHEET

as at 31 May 2014

	£'000s
Investments held at fair value through profit or loss	131,257
Net current assets	2,287
Total Net Assets	133,544
Called up Share Capital	7,076
Share Premium Account	36,211
Capital Redemption Reserve	1,021
Capital Reserve	104,054
Revenue Reserve	(14,818)
Shareholders' Funds	133,544
Net Asset Value per Ordinary Share	518.3p
The net asset value is based on 25,768,006 Ordinary Shares in issue.
As at 31 May 2014 there were an additional 2,534,874 Ordinary Shares held in treasury.

SUMMARY OF UNAUDITED RESULTS

INCOME STATEMENT

for the six months ended 31 May 2013

	Revenue	Capital	Total
			Return
	£'000s	£'000s	£'000s
			(Note 2)
Net gains on investments held at fair value	-	27,224	27,224
Exchange gains on currency balances	-	77	77
Income	359	-	359
Investment management fee (see Note 2)	(488)	(2,586)	(3,074)
Administration expenses	(182)	-	(182)
Net return before finance costs and taxation	(311)	24,715	24,404
Finance costs: Interest payable and similar charges	-	-	-
Net return on ordinary activities before taxation	(311)	24,715	24,404
Taxation	(40)	-	(40)
Net return attributable to Ordinary Shareholders	(351)	24,715	24,364
Net return per Ordinary Share (Note 1)	(1.35p)	95.17p	93.82p

BALANCE SHEET

as at 31 May 2013

	£'000s
Investments held at fair value through profit or loss	113,522
Net current assets	407
Total Net Assets	113,929
Called up Share Capital	7,076
Share Premium Account	35,032
Capital Redemption Reserve	1,021
Capital Reserve	84,545
Revenue Reserve	(13,745)
Shareholders' Funds	113,929
Net Asset Value per Ordinary Share	448.7p
The net asset value is based on 25,390,268 Ordinary Shares in issue.
As at 31 May 2013 there were an additional 2,912,612 Ordinary Shares held in treasury.

SUMMARY OF UNAUDITED RESULTS

INCOME STATEMENT

for the year ended 30 November 2013

	Revenue	Capital	Total
			Return
	£'000s	£'000s	£'000s
			(Note 2)
Net gains on investments held at fair value	-	49,435	49,435
Exchange losses on currency balances	-	(370)	(370)
Income	726	-	726
Investment management fee (see Note 2)	(1,111)	(6,062)	(7,173)
Administration expenses	(380)	-	(380)
Net return before finance costs and taxation	(765)	43,003	42,238
Finance costs: Interest payable and similar charges	-	-	-
Net return on ordinary activities before taxation	(765)	43,003	42,238
Taxation	(79)	-	(79)
Net return attributable to Ordinary Shareholders	(844)	43,003	42,159
Net return per Ordinary Share (Note 1)	(3.29p)	167.58p	164.29p

BALANCE SHEET

as at 30 November 2013

	£'000s
Investments held at fair value through profit or loss	119,476
Net current assets	12,085
Total Net Assets	131,561
Called up Share Capital	7,076
Share Premium Account	35,032
Capital Redemption Reserve	1,021
Capital Reserves	102,670
Revenue Reserve	(14,238)
Shareholders' Funds	131,561
Net Asset Value per Ordinary Share	519.0p
The net asset value is based on 25,349,941 Ordinary Shares in issue.
As at 30 November 2013 there were an additional 2,952,939 Ordinary Shares held in treasury.

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

	Called up Share Capital £'000s	Share Premium Account £'000s	Capital Redemption Reserve £'000s	Capital Reserve £'000s	Revenue Reserve £'000s	Total £'000s
Six months ended 31 May 2014
Net Assets at 1 December 2013	7,076	35,032	1,021	102,670	(14,238)	131,561
Revenue Return	-	-	-	-	(580)	(580)
Shares reissued from treasury during the period	-	1,179	-	1,246	-	2,425
Capital Return	-	-	-	138	-	138
Net Assets at 31 May 2014	7,076	36,211	1,021	104,054	(14,818)	133,544
Six months ended 31 May 2013
Net Assets at 1 December 2012	7,076	35,032	1,021	63,898	(13,394)	93,633
Revenue Return	-	-	-	-	(351)	(351)
Shares repurchased during the period	-	-	-	(4,068)	-	(4,068)
Capital Return	-	-	-	24,715	-	24,715
Net Assets at 31 May 2013	7,076	35,032	1,021	84,545	(13,745)	113,929
Year ended 30 November 2013
Net Assets at 1 December 2012	7,076	35,032	1,021	63,898	(13,394)	93,633
Revenue Return	-	-	-	-	(844)	(844)
Shares repurchased during the year	-	-	-	(4,231)	-	(4,231)
Capital Return	-	-	-	43,003	-	43,003
Net Assets at 30 November 2013	7,076	35,032	1,021	102,670	(14,238)	131,561

SUMMARY OF UNAUDITED RESULTS

CASH FLOW STATEMENT

For the six months ended 31 May 2014 and comparative periods

	Six Months ended 31 May 2014		Six Months ended 31 May 2013		Year ended 30 November 2013
	£'000s		£'000s		£'000s
Net cash outflow from operating activities	(3,980)		(310)		(696)
Capital expenditure and financial investment
Purchases of fixed asset investments	(73,666)		(61,655)		(140,209)
Sales of fixed asset investments	75,434		66,783		159,868
Net cash inflow from capital expenditure and financial investment	1,768		5,128		19,659
Net cash (outflow) inflow before financing	(2,212)		4,818		18,963
Financing
Purchase of Ordinary Shares for holding in treasury	-		(4,068)		(4,231)
Net cash (outflow) inflow	(2,212)		750		14,732
Reconciliation of Return on Ordinary Activities before Taxation to Net Cash Flow from Operating Activities
Net revenue before taxation	(403)		24,404		42,238
Less: Net losses (gains) on investments at fair value	180		(27,224)		(49,435)
Less: Net (gains) losses on foreign currency	(318)		(77)		370
Less: Overseas tax suffered	(39)		(40)		(79)
	(580)		(2,937)		(6,906)
Decrease in debtors	40		14		6
(Decrease) Increase in creditors	(3,440)		2,613		6,204
Net cash outflow from operating activities	(3,980)		(310)		(696)
Reconciliation of net cash flow to movement in net funds
Net cash (outflow) inflow	(2,212)		750		14,732
Net gains (losses) on foreign currencies	318		77		(370)
Movement in net funds	(1,894)		827		14,362
Net funds brought forward	18,149		3,787		3,787
Net funds carried forward	16,255		4,614		18,149

INVESTMENT PORTFOLIO
as at 31 May 2014
			Fair Value	% of	*Index
Investment	Sector	Country	£'000	Portfolio	Weighting
Apple	Hardware	United States	10,198	7.8	U
Palo Alto Networks	Software	United States	6,227	4.7	O
Sandisk	Hardware	United States	6,132	4.7	O
Sunpower	Alternative Energy	United States	6,019	4.6	N
Microsoft	Software	United States	5,495	4.2	U
Servicenow	Software	United States	5,365	4.1	O
Google	Software	United States	5,253	4.0	U
Tesla Motors	Automobiles & Parts	United States	4,446	3.4	N
Facebook	Software	United States	4,319	3.3	O
Western Digital	Hardware	United States	4,160	3.2	O
Top ten investments			57,614	44.0
Micron Technology	Hardware	United States	3,646	2.8	O
Salesforce.com	Software	United States	3,525	2.7	O
Amadeus	Support Services	Spain	3,077	2.3	N
Oracle	Software	United States	3,071	2.3	U
Aruba Networks	Hardware	United States	2,928	2.2	O
Gemalto	Software	Netherlands	2,626	2.0	O
Freescale Semiconductor	Hardware	United States	2,398	1.8	N
Quanta Services	Construction & Materials	United States	2,355	1.8	N
Harman International	Leisure Goods	United States	2,278	1.7	N
Priceline.com	Travel & Leisure	United States	2,233	1.7	N
Top twenty investments			85,751	65.3
Alcatel-Lucent	Hardware	France	1,930	1.5	N
Avago Technologies	Hardware	Singapore	1,822	1.5	O
Juniper Networks	Hardware	United States	1,768	1.3	O
Yelp	Media	United States	1,607	1.2	N
eHealth	Life Insurance	United States	1,550	1.2	N
Netflix	General Retailers	United States	1,506	1.1	N
F5 Networks	Hardware	United States	1,441	1.1	O
Seagate Technology	Hardware	United States	1,436	1.1	O
Qualcomm	Hardware	United States	1,417	1.1	U
Computer Sciences	Software	United States	1,370	1.1	O
Top thirty investments			101,598	77.5
Cognizant Technologies	Software	United States	1,358	1.0	O
Teradyne	Hardware	United States	1,340	1.0	O
Lam Research	Hardware	United States	1,340	1.0	O
Soufun Holdings (ADR)	Media	China	1,303	1.0	N
Akamai Technologies	Software	United States	1,294	1.0	O
Comcast	Media	United States	1,266	1.0	N
Canadian Solar	Alternative Energy	Canada	1,208	1.0	N
Tripadvisor	Travel & Leisure	United States	1,195	0.9	N
Aspen Technology	Software	United States	1,182	0.9	O
Dreamworks	Media	United States	1,162	0.9	N
Top forty investments			114,246	87.2
Pandora Media	Media	United States	1,140	0.9	O
Tableau	Software	United States	1,132	0.9	N
Taiwan Semiconductor ADR	Hardware	Taiwan	1,095	0.8	U
Fireeye	Software	United States	878	0.7	N
Tencent	Software	China	731	0.6	U
Adobe Systems	Software	United States	729	0.6	U
Rockwood Holdings	Chemicals	United States	713	0.5	N
NXP Semiconductors	Hardware	Netherlands	713	0.5	O
Mediatek	Hardware	Taiwan	707	0.5	U
GT Advanced Technologies	Alternative Energy	United States	705	0.5	N
Top fifty investments			122,789	93.7
Flextronics	Electronics	United States	700	0.5	N
Solarcity	General Retailers	United States	692	0.5	N
Texas Instruments	Hardware	United States	687	0.5	U
GCL	Alternative Energy	Hong Kong	684	0.5	N
Arcam	Industrial Engineering	Sweden	683	0.5	N
Trina Solar ADR	Alternative Energy	China	680	0.5	N
Amazon	General Retailers	United States	674	0.5	N
Qihoo 360 ADR	Software	China	672	0.5	O
Baidu ADR	Software	China	672	0.5	U
Workday	Software	United States	633	0.5	O
Top sixty investments			129,566	98.7
Youku Todou ADR	Media	China	594	0.5	N
Cornerstone	Software	United States	287	0.2	N
Yandex	Software	United States	280	0.2	O
ARM Holdings	Hardware	United Kingdom	279	0.2	U
JD.com	General Retailers	China	233	0.2	N
Qunar ADR	Travel & Leisure	China	18	0.0	N
Select Software ADR	Software	United Kingdom	-	0.0	N
Photoelectron	Healthcare	United States	-	0.0	N
Total Equity Investments			131,257	100.0
*O = Overweight index; U = Underweight index; N = Not in index

Portfolio Analysis
As at 31 May 2014
	Fair Value	% of			Fair Value	% of
Sector	£'000	Portfolio		Country	£'000	Portfolio
Software	47,099	36.0		United States	111,530	85.0
Hardware	45,437	34.6		China	4,903	3.7
Alternative Energy	9,296	7.1		Netherlands	3,339	2.5
Media	7,072	5.4		Spain	3,077	2.3
Automobiles & Parts	4,446	3.4		France	1,930	1.5
Travel & Leisure	3,446	2.6		Singapore	1,822	1.5
General Retailers	3,105	2.4		Taiwan	1,802	1.4
Support Services	3,077	2.3		Canada	1,208	0.9
Construction & Materials	2,355	1.8		Sweden	683	0.5
Leisure Goods	2,278	1.7		Hong Kong	684	0.5
Life Insurance	1,550	1.2		United Kingdom	279	0.2
Electronic & Electrical Equipment	700	0.5
Industrial Engineering	683	0.5			131,257	100.0
Chemicals	713	0.5
	131,257	100.0

NOTES

Note 1

The return per Ordinary Share is based on the weighted average number of Ordinary Shares in issue during the period of 25,545,191 (31 May 2013 - 25,968,054; 30 November 2013 - 25,660,974), as adjusted in accordance with requirements of Financial Reporting Standard 22 'Earnings per Share'.                              

Note 2

The total column of this statement is the profit and loss account of the Company.

All revenue and capital items derive from continuing operations. No operations were acquired or discontinued in the period.

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the Income Statement.

The Manager is entitled to a performance fee calculated as 12.50% of outperformance of the Company's net asset value per share over its benchmark, the Dow Jones World Technology Index Sterling adjusted Total Return, during the relevant Performance Period.  This will be capped at a maximum of 2.25% of the Company's Net Asset Value at the year-end. A Performance fee will only be paid if the Company's NAV is higher than that at which any previous Performance fee was paid and if performance in that year was also ahead of the benchmark on a cumulative basis.  At 31 May 2014 no performance fee was accrued but the quantum of any performance fee payable will be based on net asset value at 30 November 2014 and may differ significantly from the sum accrued in these accounts.

Note 3

Investments are designated as held at fair value through profit or loss in accordance with FRS 26 'Financial Instruments: Recognition and Measurement'.  Listed investments are valued at bid market prices. 

Note 4

The Directors believe it is appropriate to continue to adopt the going concern basis in preparing the financial statements, as the assets of the Company consist mainly of securities which are readily realisable and accordingly, that the Company has adequate financial resources to continue in operational existence for the foreseeable future.

Note 5

The half yearly financial report has neither been audited nor reviewed by the Company's auditors. The financial information for the year ended 30 November 2013 has been extracted from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditor's report on those financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

In accordance with the UK's disclosure requirements for listed companies, the Company is required to make limited additional and updated disclosures, mainly relating to the first and third quarters of the financial year. These Interim Management Statements will be released via the Regulatory News Service and posted on the Company's website www.rcmtechnologytrust.co.uk  on or shortly before 19 April and 19 October each year.

The half-yearly financial report will be sent to Shareholders shortly and made available to the public at the Registered Office of the Company, 199 Bishopsgate, London EC2M 3TY.

For further information, please contact:

Melissa Gallagher

Head of Investment Trusts

Allianz Global Investors Europe GmbH, UK Branch

Tel: [phone]

 

END

 

 

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