Half Yearly Report

RNS Number : 9450Y

Polar Capital Technology Trust PLC

05 December 2014

 



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POLAR CAPITAL TECHNOLOGY TRUST PLC (the "Company")

Unaudited Half Year Results for the six months ended 31 October 2014

5 December 2014

Financial Summary and Key Data

	(Unaudited) As at 31 October 2014		(Audited) As at 30 April 2014	Movement %
Total net assets	£719,842,000		£606,633,000	18.7
Net assets per ordinary share	543.95p		458.40p	18.7
Ordinary shares in issue	132,336,159		132,336,159	-
Price per ordinary share	527.00p		442.00p	19.2
Benchmark		Local currency %			Sterling adjusted %
Dow Jones World Technology Index total return sterling adjusted, with withholding taxes removed		10.2			16.3
Other Indices (total return)
FTSE World		-			8.0
FTSE All-share		-			(1.6)
S&P 500 composite		8.2			14.2
Nikkei 225		15.6			11.1
Eurostoxx 600		1.4			(3.3)

Exchange Rates	As at 31 October 2014	As at 30 April 2014
US$ to £	1.5999	1.6886
Japanese Yen to £	179.35	172.49
Euro to £	1.2769	1.2178

For further information please contact:
Ben Rogoff Polar Capital Technology Trust PLC 020 7227 2700	Ed Gascoigne-Pees Camarco 020 3757 4984

MANAGER'S REPORT AND PORTFOLIO ANALYSIS

MARKET REVIEW

The half-year to 31 October 2014 saw equities continue to climb the proverbial 'wall of worry' with most major markets rising in local terms as further improvement in risk appetite and PE expansion trumped downward revisions to global growth. The FTSE World index advanced 8.0% in sterling terms with overall returns significantly augmented by US Dollar strength (the currency gaining 5.3% against sterling) partially offset by Euro and Yen weakness (-4.9% and -4.0% versus sterling, respectively.). Developed markets continued to perform well, led by the US (+14.2% in sterling terms) where further evidence of economic recovery was in stark contrast with more mixed macro and geopolitical developments elsewhere. US corporate news flow also remained encouraging, with investor sentiment buttressed by reassuring second-quarter and third-quarter earnings seasons, M&A and share buyback activity. Japan (+11.1% in sterling terms) also performed well as the impact of Abenomics continued to show up in corporate earnings, while markets interpreted weaker economic data post the April consumption tax hike as likely to spur additional intervention from the Bank of Japan (BoJ). In contrast, a slew of weaker data in Europe (-3.3% in sterling terms) was met with considerably more consternation by investors with the European Central Bank (ECB) forced to take additional action while increasing its rhetoric in its on-going battle with deflation. The formidable combination of lower global growth forecasts, US dollar strength, weaker commodity prices and adverse geopolitical developments  hindered the progress of emerging markets that continued to trail over the half year.

Equities began the half year in fine spirits, the S&P 500 making new all-time highs during May as investors shrugged off the growing disconnect with bond markets, weaker economic data and negative revisions to global growth forecasts (the World Bank reducing 2014 estimates in June) weighing on sovereign bond yields in both the US and Europe. In part, equity market resilience reflected investor belief that central banks and policymakers would continue to do 'whatever it takes' in order to combat slower growth and deflationary risk - a view which continued to support risk assets during the half year. Although policymakers in both China and Japan began the period trying to reign in intervention expectations (the former focused on 'targeted' rather than 'broad' easing, and the latter buoyed by encouraging May inflation data), the ECB remained consistent in their messaging, hinting as early as May that they were ready to use non-conventional measures if required. The same cannot be said for the Bank of England (BoE) which, having begun the period adamant that loose policy would remain in place (despite improving macroeconomic data), surprised the market in June when it warned of the potential for earlier than expected rate hikes, highlighting the risk of an emerging housing bubble and propelling sterling to post 2009 highs (the Pound reaching a high point of $1.71 against the US dollar). In stark contrast, weak June data confirmed that economic recovery in the Eurozone had stalled prompting the ECB to introduce negative deposit rates, a new Long-Term Refinancing Operation (LTRO), as well as laying the groundwork for future asset purchases (QE). Despite this, US equity markets made new highs during the month aided by a normalisation in risk appetite, investors shrugging off more mixed data and greater geopolitical uncertainty with Islamic State (IS) making further gains in Iraq / Syria while Argentina entered technical default.

Geopolitical risk stepped up a notch in July following the Malaysian Airline tragedy, which further increased tensions between Russia and Ukraine while the conflict in Gaza continued to escalate culminating in an Israeli ground assault. European markets bore the brunt of a short-term pullback (the impact of which was ameliorated by weaker sterling) with disappointing inflation data and the surprise default of Portugese bank Banco Espirito Santo adding to the regional gloom. In the US, encouraging economic data was overshadowed by more hawkish commentary from Federal Reserve chair Janet Yellen leading to some profit taking and a rotation away from small/mid caps. Although US data remained mixed, economic news flow took a definite turn for the worse elsewhere in August with disappointing inflation data in the both the Eurozone (+0.4% y/y) and the UK (CPI +1.6% y/y) driving ten year German bund yields to 0.89% (a new all-time low) and a sharp reversal in earlier (misplaced) sterling strength. While oil and other commodity price weakness suggested the slowdown was global in nature, European data was particularly weak (Italy officially re-entering recession) prompting the ECB to ready the market for an asset purchase programme, which they delivered in early September. Remarkably, equities ended the summer on a high note with the S&P 500 closing above 2000 buoyed by a better than expected second-quarter earnings season and further M&A activity including the acquisition of US biotechnology company, InterMune by Roche for $7.8bn.

Equity market resilience ran out of steam during the final third of the period with US stocks showing signs of fatigue in September ending the month lower having earlier made a new all-time high. Although the ECB sprang into action - cutting its main refinancing and deposit rates (and revealing plans to buy asset-backed securities) at its September meeting - investors remained sceptical of ECB ability (and willingness) to deliver US-style quantitative easing. Weaker economic data, together with disappointing take-up of the LTRO did little to improve investor sentiment already waning amid heightened geopolitical tension and news that the ebola virus had reached Europe and the US. The proto-growth scare that triggered the September sell-off stepped up a notch during October following German industrial production data that represented the largest drop in four years. Weaker US data, together with worrying ebola-related news flow (both rumoured and actual) added to investor consternation, evidenced by sharply lower equity markets (both the UK and US correcting c. 10% from their September highs), US sovereign yields breaching 2% for the first time since 2012 while implied volatility on the S&P 500 reached 31, the highest level since 2011. Fortunately an encouraging start to third-quarter earnings season, together with better economic data in the US and internationally saw investors take advantage of top-down market weakness. With investor hopes firmly focused on the ECB, it was ironically the BoJ that 'saved the day' when it unexpectedly boosted its asset purchasing programme from approximately ¥50trillion(tr) to ¥80tr including up to ¥3tr of equities. This, together with some positive Ebola developments allowed equity markets rally into period-end, while the US market reaffirmed its leadership status by (remarkably) registering a new all-time high during October. 

TECHNOLOGY REVIEW

The technology sector continued to outpace the broader market during this past half year, the Dow Jones World Technology index rising 16.3% in sterling terms. Although some of this outperformance was passive (reflecting the sector's disproportionate exposure to the US and the US Dollar), technology stock performance was driven by the combination of strong new cycle fundamentals, a recovery in PC-related stocks and PE expansion. Strong sector performance remained in stark contrast to lacklustre IT budget growth (particularly beyond the software subsector). While macroeconomic uncertainty and the slowdown in emerging markets likely played a supporting role, weak earnings performances from a plethora of incumbent enterprise IT companies (including Accenture, Cisco, IBM, Oracle and SAP) appeared to support our view that the new technology cycle had entered a more pernicious phase. However, disappointing progress at a number of legacy vendors was offset by strength in PC-related stocks including HP (+15%), Intel (+34%) and Microsoft (+23%) all of which enjoyed material PE expansion as PC-data continued to show further improvement from the industry's 2013 nadir. This, together with strong returns at Apple (+35%) resulted in small-cap stocks trailing over the half year.

After a difficult end to the prior fiscal year, growth stocks rebounded during late May with many of the hardest hit growth / high PE names finishing the month 10-15% off lows helping the overall sector begin the fiscal year on a positive note. Encouraging earnings reports from several late to report next-generation companies (including Palo Alto Networks and Splunk), together with the acquisition of Opentable by Priceline in June for a 46% premium helped highlight the indiscriminate nature of the earlier sell-off and the strategic value of next-generation assets, small/growth stocks enjoying a belated period of strong performance. Having made post 2002 highs in May, semiconductor stocks also continued to perform well aided by a positive pre-announcement from Intel (its first since 2009) driven by enterprise PC demand, while memory supplier Micron reported a robust quarter citing favourable DRAM and NAND supply / demand characteristics. In contrast, enterprise IT fundamentals remained mixed with Accenture experiencing margin weakness, while both Oracle and TIBCO missed revenue and earnings expectations (in contrast with solid off-quarter reports from next-generation companies Adobe and Red Hat). Diverging fortunes were even more apparent in the smartphone segment, with volume leader Samsung telegraphing a weak Q2 amid intensifying Asian competition while Apple CEO Tim Cook referenced the company's "best product line up in 25 years".

A robust second-quarter reporting season set a positive tone during July and August, with more than two-thirds of companies delivering revenues and earnings ahead of expectations (and less than 21% falling short). Although Apple delivered a mixed second quarter, investors focused instead on the upcoming product cycle and the company's September 9^th 'special event' where the unveiling of the iPhone 6, iWatch and mobile payment initiatives were anticipated. While the Apple-related supply chain was buoyed by rumours of a 70-80m unit build, other smartphone companies fared less well as a Samsung inventory correction caught up with a number of its suppliers while Qualcomm was weak after it was unable to collect certain royalties in China. In contrast PC-related vendors such as Intel and Microsoft delivered robust result, aided by the expiry of support for Windows XP that continued to drive a recovery in corporate PC demand. Next-generation companies also largely delivered ahead of expectations with particularly strong numbers from Baidu, Cognex, Facebook, Splunk and Stratasys while both LinkedIn and Twitter defied their critics posting strong beats driven by better than expected engagement. In contrast, Amazon delivered a disappointing quarter with price cuts impacting growth in its public cloud computing business (AWS). Weaker carrier capital spending trends also caught up with a number of telecom equipment vendors, while weak numbers from Xilinx created nervousness about the health of the Chinese wireless spending. In addition to robust earnings, valuations were buoyed by heightened M&A activity, particularly in the semiconductor sub-sector with a number of companies acquired during the summer including Hittite Microwave, International Rectifier and Peregrine Semiconductor, all for large premiums.

A seasonally quiet month for news flow, September was unusually eventful as Apple revealed its latest smartphone, while Chinese ecommerce giant Alibaba raised $25bn during its record-breaking initial public offering. We participated in the IPO and added to our position subsequently.  Having disappointed investors with its last major upgrade, Apple appeared to more than meet expectations with the iPhone 6/6+, a larger device that, together with an interesting payments offering (Apple Pay) looked likely to drive a strong replacement cycle. Another disappointing off-quarter report from Oracle (management citing Cloud headwinds, CEO Larry Ellison stepping down) was supportive of our new cycle thesis, as was SAP's decision to acquire Concur Technologies (held in the Trust) for $7.4bn to bolster its own Cloud offering. However, broader market weakness and a series of profit warnings (as is the norm during pre-announcement season) resulted in pronounced weakness in early October. While these earnings disappointments were mostly contained to the service provider space, a surprise profit warning from Microchip shook the entire semiconductor sector as the company warned that "another industry correction has begun", presaging the most dramatic one day correction in the Philadelphia Semiconductor index (-6.9%) seen since the financial crisis.  While a number of other semiconductor companies appeared to confirm some near-term order softness, there were more than a few strong results within the Apple supply chain while Intel delivered another positive quarter. The lack of corroborating evidence of an industry downturn allowed stocks to rally substantially from lows before Microchip released better than expected results and downplayed its earlier remarks, suggesting that the correction was likely to prove milder than feared.

Elsewhere a broadly encouraging third-quarter earnings season provided a welcome break from the 'top-down' gloom that had earlier weighed on markets. A solid earnings release from Apple allowed its stock to continue to rally into period end, helping the Trust's absolute performance but also providing a headwind to relative returns. Next-generation stocks largely delivered ahead of expectations with noteworthy strength evident within the software-as-a-service (SaaS) and security sub-sectors, the latter buoyed by news that JP Morgan had suffered a 76m user data breach. In contrast, Internet stocks had a relatively disappointing earnings season with macroeconomic weakness and/or the strong US dollar tripping up a number of ecommerce companies including Amazon, eBay, Priceline and TripAdvisor while Google delivered a slight miss on foreign exchange and UK weakness. Social media fortunes were also mixed with positive results from LinkedIn offset by surprisingly aggressive investment plans at Facebook and disappointing user growth guidance at Twitter. Chinese Internet stocks fared significantly better with both Alibaba and Baidu posting strong earnings reports. Legacy technology companies continued to deliver mixed results with robust reports from PC-related companies offset by poor results from a number of incumbent software companies. However, the weakest incumbent report was posted by IBM who - after a series of disappointing results - delivered a very poor quarter with revenue declining year over year in all segments and all geographic regions. Moreover, the company abandoned its long-held $20 2015 earnings target due to the "unprecedented pace of change", in line with our new cycle thesis. Beyond earnings, technology stocks continued to be supported by shareholder friendly actions including some large buyback announcements towards period end, and further M&A activity with Qualcomm acquiring UK-chipmaker CSR for $2.4bn. 

PORTFOLIO PERFORMANCE

Our total return performance came in ahead of our benchmark, with the net asset value per share rising 18.7% during the first half versus a 16.3% increase for the sterling adjusted benchmark. The most significant positive contributor to performance over the period was the sharp rebound in a number of our high growth stocks (such as LinkedIn, Splunk and Tableau) that had been remarkably weak into year-end. The Trust also benefited from underweight / zero positions in a number of legacy companies that underperformed during the period including Canon, Oracle, SAP and Samsung. The most significant of these incumbent laggards was IBM, our zero weighting (as compared to an average index weighting of c. 4%) providing a welcome boost to relative performance. As in prior periods, M&A activity also made a positive contribution as one of our positions - Concur Technology - was acquired at a healthy premium. Our relative performance was particularly satisfying as we continued to face style-related headwinds during the period, smaller stocks trailing their larger-cap peers by c. 3.6%, as measured by the Russell 2000 and Russell 1000 technology indices respectively. In terms of negatives, relative underperformance was generated by our underweight position in Apple and our decision to retain some liquidity  plus a modest amount of S&P put protection, although the latter emboldened us to add significantly to our high growth / high PE exposure near lows. Relative performance was also negatively impacted by underweight / zero positions in a number of PC-related names many of which benefited from PE expansion as PC data points improved following the expiry of support for Windows XP.

MARKET OUTLOOK

Although markets have continued to grind higher, the constructive outlook outlined in our last annual report remains essentially unchanged. While absolute valuations are no longer 'cheap' we are hopeful that global equities will add to their first half gains over the remainder of the year. Not only do long-term averages fail to capture the uniqueness of the current investment backdrop (record low interest rates, alignment of shareholder interests with policymakers, return of capital to shareholders) but - even after outpacing Treasuries by c. 40% in 2013 - stocks continue to look attractive versus most alternatives and especially so against cash where negative returns appear all but certain. Whilst we acknowledge that this unusual investment backdrop must normalize at some point, we expect policymakers to continue to tread carefully given the uneven recovery and the risks associated with deflation. This view - somewhat at odds with consensus earlier this year - is less controversial today because world economic activity has continued to disappoint with forecasts for 2014/2015 global growth 0.4% and 0.3% lower respectively since the end of our fiscal year. The pursuit of more sustainable / higher quality growth in China has continued to present challenges elsewhere in the global economy with sharply lower commodity / energy prices impacting a number of emerging and oil-sensitive economies (including Brazil, Russia, and Venezuela). Meanwhile European growth disappointed, in part because of weaker demand from China, compounded by appreciation in the Euro-Yen exchange rate. Although markets have rebounded impressively from their October lows, a number of indicators (German bund yields below 1%, Eurodollar at 1.25, oil below $90) suggest that the risk of another growth scare remains elevated.

Fortunately, the economic outlook is not all 'doom and gloom' as the US recovery has remained on track driven by continued improvement in employment conditions and consumer confidence. Sustained energy price weakness may also be less indicative of demand deficiency than in the past because US hydraulic fracturing ('fracking') has resulted in US oil output reaching its highest level in 28 years. As such, lower energy prices should be considered more positively and are likely to support developed world growth, with the oil price declining c. $26/barrel from June highs to period end. Some estimates suggest that a $20/barrel decline in oil could potentially be worth as much as $140bn (c. 0.8% of GDP) to the US economy over a full year.Benign input prices, together with continued slack in labour markets beyond the US, have left inflation below central bank targets in most advanced economies. With most central banks / policymakers therefore focused on deflation (rather than inflation) risk, we expect highly accommodative monetary policy to persist into 2015, as should the remarkable alignment of interests between policymakers and investors (amply demonstrated by recent events in Japan) that have underpinned risk assets since 2009. The one potential (and important) exception to this is the US where labour markets have continued to tighten, unemployment falling to 5.8% in October. Although the end of tapering in October essentially marked the commencement of a tightening cycle, we expect US policymakers to continue to tread cautiously regarding the timing / pace of interest rate hikes given the risks associated with slower global growth and pronounced US dollar strength.

 Over the coming half-year we are hopeful that the combination of earnings growth and modest revaluation of risk assets should continue to drive equity market returns. While we acknowledge that equities are no longer 'cheap' the investment backdrop remains highly unusual, reducing the relevance of long-term valuation averages and bull market duration. Stocks continue to look well supported by near-record corporate margins and strong balance sheets, US non-financial companies said to have $1.65tr in cash at mid 2014. Although much of this cash is held overseas, stock buybacks should remain at elevated levels, accounting for c. 82% of free cash flow in Q2'14 reducing the outstanding number of shares in the S&P 500 by 1.3% during the prior twelve months. Having exploded into life earlier this year, M&A activity - worth more than $2.66tr during the first nine months of 2014 - should also help reduce supply supporting equity valuations. However, the recent US government crackdown on tax-inversion transactions may continue to dampen near-term activity and refocus attention towards more growth-orientated combinations (exemplified by the aborted $52bn acquisition of Shire by US pharmaceutical company AbbVie). While we remain constructive on markets, we expect our bullish prognosis to be further tested over the coming months / years because equity valuations and the duration of the bull market already exceed long-term averages. These challenges are likely to take the form of "growth scares" and will tend to occur when equity markets and investor sentiment are extended, as was the case in September / October. While we do not expect a significant setback, a number of our preferred indicators (implied volatility, investor sentiment) are suggestive of less favourable near-term risk reward. As such, we have retained a little more liquidity than usual which we will look to invest on market weakness and/or once growth headwinds associated with the resurgent US dollar appear more fully appreciated by investors.

RISK FACTORS

In addition to those outlined above, there are a number of additional risks that investors should consider. As previously discussed, the greatest risk to equity markets remains the loss of policymaker support that has underpinned risk assets since 2009. This looks unlikely for now, given that deflation remains a key policymaker focus in Europe and Japan while the timing and pace of US rate hikes following the end of QE are likely to remain data dependent. Additional risks to consider include further slowdown in emerging markets due to tighter financial conditions and more measured Chinese growth. While a so-called Chinese 'hard landing' remains a possibility, we continue to believe that the monetary and fiscal firepower available to the Chinese leadership due to benign inflation means this outcome remains a 'tail risk'. While headline political risk in a number of developed markets has diminished recently following the failed bid for Scottish independence and Republican success in US mid-term elections, governments still have to tread a difficult path between delivering growth and fiscal consolidation. Pronounced recent US dollar strength (the trade-weighted basket +17% calendar year to date at time of writing) also represents a risk to corporate earnings growth given that a significant portion of sales are derived from outside the US.. As in previous years, geopolitical risk remains the most important exogenous factor to consider, particularly potential Russian intervention in Ukraine, the challenge to nation states from Islamic extremism in North Africa and the Middle East and Iran's pursuit of a nuclear capability. While these geopolitical risks are likely to form a considerable part of the proverbial 'wall of worry' during the remainder of the year, it is worth remembering that these geographic areas (including Russia) account for just c. 7% of world output

TECHNOLOGY OUTLOOK

While headline valuations have expanded broadly in line with the market over the half year, the technology sector continues to look relatively attractive as it trades at just 1.0x the market multiple while boasting 55% of total US non-financial corporate cash. However, IT budgets - the key determinant of revenue growth for most incumbent companies - are expected to grow just 2.6% this year which would represent another year where industry growth failed to keep pace with global GDP. That said, we have to acknowledge that IT spending expectations have been ratcheted higher (0.4% in constant currency) since our fiscal year end, largely due to better than forecast US growth. While this has no doubt aided large-cap outperformance so far this year - small-caps having trailed by 17.5% during 2014 at time of writing - we suspect there is some risk to these higher forecasts (and 2015 expectations) given the recent downdraft in economic activity outside of the US. Furthermore, we continue to believe the new technology cycle has entered a more pernicious phase now that new technologies (epitomized by Cloud computing) have begun to substitute, rather than merely complement existing ones. The shift away from enterprise computing appears to be gathering pace with IBM the latest (and so far, the highest profile) casualty of new cycle deflation - the company recently abandoning its long-term earnings targets citing "the unprecedented pace of change in our industry".

Despite IBM's travails, investors have continued to flock to large-cap incumbent companies this calendar year because many of them have benefitted from a period of stabilization in the PC market while others have belatedly tried to rebrand themselves as would-be 'Cloud' beneficiaries. As a result, a number of legacy incumbents have been able to attract a new audience of investors drawn to vast balance sheets (Apple, Microsoft, Google, Cisco and Oracle between them boasting $415bn of corporate cash) brought into sharper focus by more shareholder-friendly capital allocation policies, the same companies together with Qualcomm buying back more than $86bn of stock and paying out over $30bn in dividends in the twelve months to Q2'14. While we should have been more alive to the risk of a marked revaluation of legacy assets, we are hopeful that this dynamic will ease as the PC unit tailwinds associated with the end of support for Windows XP fading next year. Beyond the PC market, we continue to believe that legacy business models remain "incompatible with cloud computing", evidenced by slower growth and weaker margins at a number of high-quality incumbent companies. This is unlikely to reverse course anytime soon given slower emerging market growth, currency headwinds and greater disruption associated with new technologies. Despite this, many legacy companies are today trading at their highest relative price earning (PE) ratios for years and with some now attempting to deconsolidate businesses (e.g. HP and Symantec) we cannot help think that it is late in the day for the value / large-cap technology trade.

In our opinion, most of these legacy companies are not 'ports in a storm'; rather they are better understood as incumbents being picked off by new competitors, technology alternatives and new cycle deflation. Of course, financial engineering can paper over these cracks, but in the technology sector at least, this is likely to prove a finite process, evidenced by IBM's recent fall from grace. While the impact of vastly cheaper computing has thus far largely been felt by hardware and storage incumbents, we expect new cycle deflation to eventually be felt across the entire spectrum of enterprise IT. Although overall software spending is likely to remain a relative bright spot - 7% growth expected between 2015 and 2018 - demand for IT services may already be impaired by "increased impact of standardisation and automation" associated with this new form of computing. As cloud deflation and substitution risk become more pervasive, so incumbents are likely to turn increasingly to M&A- a process likely to remind investors that free cash flow yields are a flawed measure of value when much of the 'free cash' is ultimately returned to a different set of shareholders, as SAP's $7.4bn acquisition of Concur Technology recently demonstrated. While we cannot know when PE expansion - the primary driver of large-cap outperformance so far this year - will have played out, one of the key financial engineering 'levers' - global tax arbitrage - looks at risk following the US government's decision to clamp down on tax inversion. Synthetic repatriation of offshore cash via domestic debt issuance could also be challenged once sovereign rates (and spreads) begin to normalise. In the near-term, the lack of top-line growth at many of these incumbents is likely to become more apparent over the coming months due to their disproportionate exposure to emerging markets and increasingly formidable foreign exchange headwinds.

In contrast, we expect next-generation companies to continue to deliver growth as recipients of reallocated budgets and/or beneficiaries of new, untapped pools of technology spending as the technology sector permeates into (and reinvents) other industries. Given their relative insensitivity to a still faltering global economic recovery, we are hopeful that investors will begin to gravitate back towards next-generation stocks many of which remain significantly cheaper than they did in late Q1 due to the combination of strong growth and lower stock prices. While the de-rating of next-generation stocks post their March / April highs was largely divorced from their strong fundamentals, the magnitude of the correction more than offset the additional growth they delivered. We have used the relative de-rating of a number of our favoured stocks and themes to increase our exposure at the expense of increasingly anachronistic incumbents businesses (which remain significant index constituents). We have added to our small cap exposure via a position in Herald Investment Trust, a UK centric closed ended fund.  Our favoured investment areas include online advertising, ecommerce, social media, software-as-a-service, cybersecurity and digital payments, in addition to emerging themes such as robotics, wearable computing and the Internet of Things (IoT).

Given its outstanding  performance this half calendar year, it is fitting that the  final word should belong to  Apple,  our largest holding. Despite its size and the maturity of the smartphone market, Apple continues to defy the s-curve evidenced by the company's ability to raise pricing at a time when many of its peers are beginning to more keenly feel the impact of slower unit growth and intensifying price competition. While Apple's valuation has also expanded materially during the half year, this looks more justified as the company executes on a strong product cycle driven by a compelling iPhone upgrade.

Ben Rogoff

4 December 2014

Statement of Directors' Responsibilities and Corporate Matters

Risks and Uncertainties

The Directors consider that the principal risks and uncertainties faced by the Company for the remaining six months of the financial year, which could have a material impact on performance, are consistent with those outlined in the Annual Report for the year ended 30 April 2014.

These principal risks can be summarised as market volatility, stock pricing and liquidity risk, currency and interest rate risk, counterparty risk, differing economic cycles between different markets and risk inherent in technology, such as obsolescence and consumer acceptance of changes.

The investment manager's report comments on the outlook for market related risks, including the volatility in share prices, currencies and economic cycles.

The Company has a risk management framework that is a structured process for identifying, assessing and managing the risks associated with the Company's business. The investment portfolio is diversified by geography which mitigates risk but is focused on the technology sector and has a high proportion of investments listed on US markets or exposed to the US Dollar.

Related Party Transactions

In accordance with DTR 4.2.8R there have been no new related party transactions during the six month period to 31 October 2014 and therefore nothing to report on any material effect by such transactions on the financial position or performance of the Company during that period. There have been no changes in any related party transaction described in the last annual report that could have a material effect on the financial position or performance of the Company in the first six months of the current financial year.

Corporate

Share Capital

As at 31 October 2014 there were 132,336,159 ordinary shares in issue, there has been no change in the ordinary shares between 30 April 2014 and 4 December.

AIFMD

The Board appointed on 22 July 2014 Polar Capital LLP as the Alternative Investment Fund Manager and HSBC Bank Plc to the role of Depository.

Responsibility Statement

The Directors of Polar Capital Technology Trust plc, which are listed in the Shareholder Information Section, confirm to the best of their knowledge:

•  The condensed set of financial statements have been prepared in accordance with IAS34 as adopted by the European Union and give a true and fair view of the financial position of the Company as at 31 October 2014 and the results for the six months ended 31 October 2014 as required by the Disclosure and Transparency Rules 4.2.4R;

•  The Interim Management Report (constituting the Investment Manager's Report) includes a fair review of the information required by the Disclosure and Transparency Rules 4.2.7R.

The half year financial report for the six month period to 31 October 2014 has not been audited or reviewed by the Auditors.

The half year financial report for the six month period to 31 October 2014 was approved by the Board on 4 December 2014 and the responsibility statement was signed on its behalf by Michael Moule, Chairman of the Board.

Statement of Comprehensive Income for the half year ended 31 October 2014

Notes		(Unaudited)						(Audited)
		Half year ended 31 October 2014			Half year ended 31 October 2013			Year ended 30 April 2014
		Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000
Investment income	2	3,244	-	3,244	4,414	-	4,414	7,161	-	7,161
Other operating income	2	2	-	2	1	-	1	3	-	3
Gains on investments held at fair value		-	116,254	116,254	-	67,891	67,891	-	60,662	60,662
Net losses on derivative contracts		-	(2,609)	(2,609)	-	-	-	-	-	-
Other currency gains/(losses)		-	646	646	-	(1,129)	(1,129)	-	(1,657)	(1,657)
Total income		3,246	114,291	117,537	4,415	66,762	71,177	7,164	59,005	66,169
Expenses
Investment management fee		(3,266)	-	(3,266)	(2,862)	-	(2,862)	(6,026)	-	(6,026)
Performance fee		-	-	-	-	(790)	(790)	-	-	-
Other administrative expenses		(380)	-	(380)	(369)	-	(369)	(717)	-	(717)
Total expenses		(3,646)	-	(3,646)	(3,231)	(790)	(4,021)	(6,743)	-	(6,743)
(Loss)/profit before finance costs and tax		(400)	114,291	113,891	1,184	65,972	67,156	421	59,005	59,426
Finance costs		(185)	-	(185)	(241)	-	(241)	(411)	-	(411)
(loss)/profit before tax		(585)	114,291	113,706	943	65,972	66,915	10	59,005	59,015
Tax		(497)	-	(497)	(437)	-	(437)	(796)	-	(796)
Net (loss)/profit for the period and total comprehensive income		(1,082)	114,291	113,209	506	65,972	66,478	(786)	59,005	58,219
Earnings per ordinary share (basic) (pence)	4	(0.82)	86.36	85.54	0.39	51.44	51.83	(0.61)	45.78	45.17
Earnings per ordinary share (diluted) (pence)	4	(0.82)	86.36	85.54	0.39	51.44	51.83	(0.61)	45.78	45.17

The total column of this statement represents the Company's Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the European Union.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

All items in the above statement derive from continuing operations. The Company does not have any other comprehensive income.

Balance Sheet at 31 October 2014

		(Unaudited) 31 October 2014 £'000	(Unaudited) 31 October 2013 £'000	(Audited) 30 April 2014 £'000
Non current assets	Notes
Investments held at fair value through profit or loss		699,828	571,139	584,799
Current assets
Derivative financial instruments held at fair value through profit or loss		654	-	-
Receivables		6,301	10,934	7,229
Overseas tax recoverable		119	91	96
Cash and cash equivalents		41,459	54,412	54,950
Total assets		748,361	636,576	647,074
Current liabilities
Payables		(14,330)	(14,566)	(17,668)
Bank loans		(13,604)	(24,587)	(22,773)
Bank overdraft		(585)	(205)	-
		(28,519)	(39,358)	(40,441)
Net assets		719,842	597,218	606,633
Equity attributable to equity shareholders
Share capital		33,084	32,407	33,084
Capital redemption reserve		12,802	12,588	12,802
Share premium		141,955	125,172	141,955
Special non-distributable reserve		7,536	7,536	7,536
Capital reserves		597,306	489,982	483,015
Revenue reserve		(72,841)	(70,467)	(71,759)
Total equity		719,842	597,218	606,633
Net asset value per ordinary share (basic) (pence)	5	543.95	464.27	458.40
Net asset value per ordinary share (diluted) (pence)	5	543.95	464.27	458.40

Statement of Changes in Equity for the half year ended 31 October 2014

	(Unaudited) Half year ended 31 October 2014
	Share capital  £'000	Capital redemption reserve  £'000	Share premium  £'000	Special non-distributable reserve  £'000	Capital reserves  £'000	Revenue reserve  £'000	Total equity  £'000
Total equity at 30 April 2014	33,084	12,802	141,955	7,536	483,015	(71,759)	606,633
Total comprehensive income:
Profit /(loss) for the period to 31 October 2014	-	-	-	-	114,291	(1,082)	113,209
Total equity at 31 October 2014	33,084	12,802	141,955	7,536	597,306	(72,841)	719,842

	(Unaudited) Half year ended 31 October 2013
	Share capital £'000	Capital redemption reserve £'000	Share premium £'000	Special non-distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total equity £'000
Total equity at 30 April 2013	32,306	12,588	123,378	7,536	424,010	(70,973)	528,845
Total comprehensive income:
Profit  for the period to 31 October 2013	-	-	-	-	65,972	506	66,478
Transactions with owners, recorded directly to equity:
Issue of ordinary shares	100	-	1,775	-	-	-	1,875
Issue of ordinary shares on conversion of subscription shares	1	-	19	-	-	-	20
Total equity at 31 October 2013	32,407	12,588	125,172	7,536	489,982	(70,467)	597,218

	(Audited) Year ended 30 April 2014
	Share capital £'000	Capital redemption reserve £'000	Share premium £'000	Special non-distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total equity £'000
Total equity at 30 April 2013	32,306	12,588	123,378	7,536	424,010	(70,973)	528,845
Total comprehensive income:
Profit/(loss) for the year to 30 April 2014	-	-	-	-	59,005	(786)	58,219
Transactions with owners, recorded directly to equity:
Issue of ordinary shares	175	-	3,121	-	-	-	3,296
Issue of ordinary shares on conversion of subscription shares	817	-	15,456	-	-	-	16,273
Cancellation  of subscription shares	(214)	214	-	-	-	-	-
Total equity at 30 April 2014	33,084	12,802	141,955	7,536	483,015	(71,759)	606,633

Cash Flow Statement for the half year ended 31 October 2014

	(Unaudited) Half year ended 31 October 2014 £'000	(Unaudited) Half year ended 31 October 2013 £'000	(Audited) Year ended 30 April 2014 £'000
Cash flows from operating activities
Profit before tax	113,706	66,915	59,015
Adjustment for non-cash items:
Foreign exchange (gains)/losses	(646)	1,129	1,657
Adjusted profit before finance costs and tax	113,060	68,044	60,672
Adjustments for:
Increase in investments	(115,029)	(60,182)	(73,842)
(Decrease)/increase in receivables	274	(1,052)	2,653
(Decrease)/increase in payables	(3,338)	8,991	12,093
	(118,093)	(52,243)	(59,096)
Net cash (used in)/ generated from operating activities before tax	(5,033)	15,801	1,576
Overseas tax deducted at source	(520)	(493)	(857)
Net cash (used in)/generated from operating activities	(5,553)	15,308	719
Cash flows from financing activities
Issue of share capital	-	1,895	19,569
Loans matured	(22,668)	(6,171)	(6,171)
Loans drawn	13,649	11,638	11,638
Net cash (used in)/generated from financing activities	(9,019)	7,362	25,036
Net (decrease)/increase in cash and cash equivalents	(14,572)	22,670	25,755
Cash and cash equivalents at the beginning of the period	54,950	33,271	33,271
Effect of foreign exchange rate changes	496	(1,734)	(4,076)
Cash and cash equivalents at the end of the period	40,874	54,207	54,950

Notes to the Financial Statements for the six month period ended 31 October 2014

1.      General Information

The financial statements comprise the unaudited results for Polar Capital Technology Trust plc for the six month period to 31 October 2014.

The unaudited financial statements to 31 October 2014 have been prepared using the accounting policies used in the annual financial statements to 30 April 2014. These accounting policies are based on International Financial Reporting Standards ("IFRS"), which comprise standards and interpretations approved by the International Accounting Standards Board ("IASB") and the International Accounting Standards Committee ("IASC"), as adopted by the European Union.

The financial information in this half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the six month periods ended 31 October 2014 and 31 October 2013 have not been audited. The figures and financial information for the year ended 30 April 2014 are an extract from the latest published financial statements and do not constitute statutory accounts for that year. Full statutory accounts for the year ended 30 April 2014, prepared under IFRS, including the report of the auditors which was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies.

The accounting policies have not varied from those described in the Annual Report for the year ended 30 April 2014.

The financial statements are presented in Pounds Sterling and all values are rounded to the nearest thousand pounds (£'000), except where otherwise stated.

2.      Income

	(Unaudited) For the half year ended 31 October 2014 £'000	(Unaudited) For the half year ended 31 October 2013 £'000	(Audited) For the year ended 30 April 2014 £'000
Income from investments held at fair value through profit or loss
Franked dividends	10	1,243	1,282
Unfranked dividends	3,234	3,171	5,879
	3,244	4,414	7,161
Other operating income
Bank interest	2	1	3
Total income	3,246	4,415	7,164

The comparative figures for franked dividends include a dividend of £1,233,000 received from the former subsidiary company, PCT Finance Limited.

3.      PERFORMANCE FEE

The investment manager is entitled to a performance fee based on the level of outperformance of the Company's net asset value per share over its benchmark, the Dow Jones World Technology Total Return Index in Sterling adjusted for withholding taxes, during the relevant performance period. A fuller explanation of the performance and management fee arrangements is given in the annual report.  At 31 October 2014 there was no performance fee payable as the NAV per share was below the  benchmark-adjusted high water mark.

4.      Earnings per ordinary share

	(Unaudited) For the half year ended 31 October 2014 £'000	(Unaudited) For the half year ended 31 October 2013 £'000	(Audited) For the year ended 30 April 2014 £'000
Net (loss)/profit for the period:
Revenue	(1,082)	506	(786)
Capital	114,291	65,972	59,005
Total	113,209	66,478	58,219
Weighted average number of shares in issue during the period	132,336,159	128,252,247	128,889,051
Revenue	(0.82p)	0.39p	(0.61)p
Capital	86.36p	51.44p	45.78p
Total	85.54p	51.83p	45.17p

5.      Net asset value per ordinary share

	(Unaudited) 31 October 2014	(Unaudited) 31 October 2013	(Audited) 30 April 2014
Undiluted:
Net assets attributable to ordinary shareholders (£'000)	719,842	597,218	606,633
Ordinary shares in issue at end of period	132,336,159	128,635,845	132,336,159
Net asset value per ordinary share	543.95p	464.27p	458.40p

6.      Dividend

In accordance with stated policy, no interim dividend has been declared for the period (31 October 2013 and 30 April 2014: nil).

7.      Related party transactions                                                                     

There have been no related party transactions that have materially affected the financial position or the performance of the Company during the six month period to 31 October 2014.

 Portfolio Review 

Classification*	North  America %	Europe %	Asia &  Pacific %	Total 31 October 2014 %	Total 30 April 2014 %
Internet Software & Services	18.0	0.3	5.4	23.7	20.7
Software	16.8	0.9	1.5	19.2	20.0
Semiconductors & Semiconductor Equipment	9.5	2.5	4.8	16.8	18.0
Technology Hardware, Storage & Peripherals	13.2	-	2.7	15.9	15.0
Communications Equipment	5.7	0.9	0.6	7.2	8.3
IT Services	2.5	-	0.5	3.0	3.5
Electronic Equipment, Instruments & Components	0.6	0.5	1.6	2.7	3.7
Internet & Catalog Retail	2.6	-	-	2.6	2.5
Health Care Technology	1.5	-	-	1.5	1.0
Other	0.1	0.9	-	1.0	0.5
Machinery	0.1	0.4	0.3	0.8	1.5
Life Sciences Tools & Services	0.5	-	-	0.5	0.4
Household Durables	0.5	-	-	0.5	0.3
Energy Equipment & Services	0.5	-	-	0.5	-
Chemicals	0.1	-	0.3	0.4	0.3
Aerospace & Defense	0.4	-	-	0.4	0.1
Auto Components	0.4	-	-	0.4	-
Media	-	-	0.2	0.2	0.6
Total investments	73.0	6.4	17.9	97.3	96.4
Other net assets (excluding loans)	0.1	2.4	2.1	4.6	7.3
Loans	(0.6)	-	(1.3)	(1.9)	(3.7)
Grand total (net assets of £719,844,000)	72.5	8.8	18.7	100.0	-
At 30 April 2014 (net assets of £606,633,000)	71.0	10.4	18.6	-	100.0

*Classifications derived from benchmark index

Market Capitalisation of Underlying Investments
	31 October 2014	30 April 2014
Over US$10bn	67.9%	70.4%
US$1bn-US$10bn	23.7%	20.6%
Less than $1bn	8.4%	9.0%

Breakdown of Investments by Geographical Region
	31 October 2014	30 April 2014
North America	£524,653,000  (73.0%)	£416,069,000 (68.8%)
Europe	£46,582,000 (6.4%)	£47,404,000 (7.7%)
Asia (including Middle East) & Pacific	£129,247,000 (17.9%)	£121,326,000 (19.9%)
Cash of 2.7% excluded (30 April 2014: 3.6%)

Portfolio at 31 October 2014

North America			Value of holding		% of net assets
			31 October 2014  £'000	30 April 2014  £'000	31 October 2014 £'000	30 April 2014 £'000
Apple		Technology Hardware, Storage & Peripherals	67,846	46,722	9.4	7.7
Google		Internet Software & Services	53,648	47,813	7.4	7.9
Facebook		Internet Software & Services	24,916	22,543	3.5	3.7
Microsoft		Software	19,507	27,875	2.7	4.6
Intel		Semiconductors & Semiconductor Equipment	17,008	13,015	2.4	2.1
Splunk		Software	12,536	6,535	1.7	1.1
Qualcomm		Communications Equipment	12,036	13,153	1.7	2.2
Cisco		Communications Equipment	11,289	10,128	1.6	1.7
Salesforce.com		Software	10,887	7,101	1.5	1.2
Micron Technology		Semiconductors & Semiconductor Equipment	10,399	6,077	1.4	1.0
SanDisk		Technology Hardware, Storage & Peripherals	9,534	7,348	1.3	1.2
Western Digital		Technology Hardware, Storage & Peripherals	8,691	7,974	1.2	1.3
Visa		IT Services	8,420	2,381	1.2	0.4
Oracle		Software	8,252	11,555	1.1	1.9
Proofpoint		Software	6,998	2,494	1.0	0.4
VMware		Software	6,894	5,648	1.0	0.9
LinkedIn		Internet Software & Services	6,872	2,450	1.0	0.4
F5 Networks		Communications Equipment	6,818	4,768	0.9	0.8
Amazon.com		Internet & Catalog Retail	6,508	10,764	0.9	1.8
Lam Research		Semiconductors & Semiconductor Equipment	6,493	2,714	0.9	0.4
Red Hat		Software	6,188	-	0.9	-
TripAdvisor		Internet & Catalog Retail	6,169	2,984	0.9	0.5
Workday		Software	6,149	-	0.9	-
Priceline.com		Internet & Catalog Retail	6,083	922	0.8	0.2
Demandware		Internet Software & Services	5,938	3,109	0.8	0.5
Texas Instruments		Semiconductors & Semiconductor Equipment	5,897	8,069	0.8	1.3
Athenahealth		Health Care Technology	5,883	2,098	0.8	0.3
Ultimate Software		Software	5,719	3,978	0.8	0.7
Integrated Device Technology		Semiconductors & Semiconductor Equipment	5,710	-	0.8	-
IAC Interactive		Internet Software & Services	5,613	-	0.8	-
Applied Materials		Semiconductors & Semiconductor Equipment	5,569	4,998	0.8	0.8
Adobe		Software	5,290	4,556	0.7	0.8
Akamai Technologies		Internet Software & Services	4,993	1,074	0.7	0.2
Sapient		IT Services	4,870	2,460	0.7	0.4
Nimble Storage		Technology Hardware, Storage & Peripherals	4,726	2,137	0.7	0.4
Mastercard		IT Services	4,655	3,627	0.6	0.6
Palo Alto Networks		Communications Equipment	4,567	2,259	0.6	0.4
Cornerstone OnDemand		Internet Software & Services	4,491	1,510	0.6	0.2
Intuit		Software	4,482	3,453	0.6	0.6
Stratasys		Technology Hardware, Storage & Peripherals	4,122	3,619	0.6	0.6
LogMeIn		Internet Software & Services	4,121	1,670	0.6	0.3
Arista Networks		Communications Equipment	4,013	-	0.6	-
Cvent		Internet Software & Services	3,974	-	0.6	-
Cognex		Electronic Equipment, Instruments & Components	3,843	-	0.5	-
Twitter		Internet Software & Services	3,802	-	0.5	-
Schlumberger		Energy Equipment & Services	3,800	-	0.5	-
Callidus Software		Software	3,791	1,222	0.5	0.2
Medidata Software		Health Care Technology	3,769	-	0.5	-
Illumina		Life Sciences Tools & Services	3,669	2,297	0.5	0.4
Electronic Arts		Software	3,639	-	0.5	-
Yelp		Internet Software & Services	3,591	3,379	0.5	0.6
Tableau Software		Software	3,519	-	0.5	-
Silicon laboratories		Semiconductors & Semiconductor Equipment	3,488	-	0.5	-
PROS Holdings		Software	3,485	2,238	0.5	0.4
Yahoo		Internet Software & Services	3,422	8,068	0.5	1.3
Cavium		Semiconductors & Semiconductor Equipment	3,376	2,631	0.5	0.4
Harman International		Household Durables	3,282	1,636	0.5	0.3
Servicenow		Software	3,201	1,836	0.4	0.3
Synaptics		Semiconductors & Semiconductor Equipment	3,174	4,438	0.4	0.7
Taser International		Aerospace & Defense	2,937	865	0.4	0.1
Gentex		Auto Components	2,857	-	0.4	-
Autodesk		Software	2,613	-	0.4	-
Informatica		Software	2,531	-	0.4	-
Calamp		Communications Equipment	2,311	1,082	0.3	0.2
Imperva		Software	2,309	1,644	0.3	0.3
Lattice Semiconductor		Semiconductors & Semiconductor Equipment	1,864	-	0.3	-
Marin Software		Internet Software & Services	1,859	1,068	0.3	0.2
SPS Commerce		Internet Software & Services	1,742	-	0.2	-
Atmel		Semiconductors & Semiconductor Equipment	1,539	-	0.2	-
Integrated Silicon Solutions		Semiconductors & Semiconductor Equipment	1,394	-	0.2	-
Cerner		Health Care Technology	1,384	1,062	0.2	0.2
Varonis Systems		Software	1,280	-	0.2	-
Canadian Solar		Semiconductors & Semiconductor Equipment	1,204	-	0.2	-
Evolving Systems		Software	1,097	1,043	0.2	0.2
Proto Labs		Machinery	989	2,708	0.1	0.4
Avigilon		Electronic Equipment, Instruments & Components	874	-	0.1	-
S&P 500 Put option 187 December 2014		Other (Option)	654	-	0.1	-
Linear Technology		Semiconductors & Semiconductor Equipment	649	-	0.1	-
Monsanto		Chemicals	585	1,586	0.1	0.3
Mavenir Systems		Software	356	-	-	-
Cermetek Microelectronics		Other (in liquidation)	-	-	-	-
Total North American investments			524653		73.0
	Europe		Value of holding		% of net assets
			31 October 2014 £'000	30 April 2014  £'000	31 October 2014	30 April 2014
	Herald Investment Trust	Other (Investment Trust)	6,400	-	0.9	-
	NXP Semiconductors	Semiconductors & Semiconductor Equipment	5,150	4,899	0.7	0.8
	ASML	Semiconductors & Semiconductor Equipment	5,009	4,533	0.7	0.7
	SAP	Software	4,475	9,071	0.6	1.5
	Ingenico	Electronic Equipment, Instruments & Components	3,745	2,755	0.5	0.5
	ARM Holdings	Semiconductors & Semiconductor Equipment	3,420	3,745	0.5	0.6
	Ericsson	Communications Equipment	3,289	4,923	0.5	0.8
	AMS	Semiconductors & Semiconductor Equipment	3,098	-	0.4	-
	Arcam	Machinery	3,011	2,344	0.4	0.4
	Yandex	Internet Software & Services	2,267	-	0.3	-
	Telit Communications	Communications Equipment	1,747	2,022	0.2	0.3
	Nokia	Communications Equipment	1,696	-	0.2	-
	Aveva	Software	1,219	-	0.2	-
	Aixtron	Semiconductors & Semiconductor Equipment	1,121	1,261	0.2	0.2
	Wandisco	Software	365	-	0.1	-
	Herald Ventures Limited Partnership	Other (unquoted investment)	311	275	-	-
	Herald Ventures Limited Partnership II	Other (unquoted investment)	259	219	-	-
	Low Carbon  Accelerator	Other(In liquidation)	-	-	-	-
	Total European investments		46,582		6.4
	Asia & Pacific		Value of holding		% of net assets
			31 October 2014  £'000	30 April 2014  £'000	31 October 2014	30 April 2014
	Samsung Electronics	Technology Hardware, Storage & Peripherals	13,659	15,462	1.9	2.5
	Baidu	Internet Software & Services	13,266	8,249	1.8	1.4
	Tencent Holdings	Internet Software & Services	10,977	8,783	1.5	1.4
	Taiwan Semiconductor	Semiconductors & Semiconductor Equipment	10,975	8,997	1.5	1.5
	SK Hynix	Semiconductors & Semiconductor Equipment	8,295	6,053	1.2	1.0
	Mediatek	Semiconductors & Semiconductor Equipment	6,830	6,521	0.9	1.1
	Check Point Software Technology	Software	6,357	4,582	0.9	0.8
	Alibaba	Internet Software & Services	6,207	-	0.9	-
	Keyence	Electronic Equipment, Instruments & Components	4,770	3,717	0.7	0.6
	Radware	Communications Equipment	4,346	4,460	0.6	0.7
	Allot Communications	Software	3,985	3,797	0.6	0.6
	SMS	Internet Software & Services	3,886	4,114	0.5	0.7
	Quanta Computer	Technology Hardware, Storage & Peripherals	3,635	3,540	0.5	0.6
	Omron	Electronic Equipment, Instruments & Components	2,911	2,045	0.4	0.3
	Disco Corporation	Semiconductors & Semiconductor Equipment	2,858	2,729	0.4	0.5
	Silicon Motion Technology	Semiconductors & Semiconductor Equipment	2,499	-	0.3	-
	Hirose Electric	Electronic Equipment, Instruments & Components	2,318	3,957	0.3	0.7
	Nitto Denko	Chemicals	2,217	-	0.3	-
	Harmonic Drive Systems	Machinery	2,205	2,600	0.3	0.4
	Naver	Internet Software & Services	2,023	1,941	0.3	0.3
	SYSTEX	IT Services	1,922	1,499	0.3	0.2
	Wix.Com	Internet Software & Services	1,806	-	0.3	-
	Next	Media	1,690	3,669	0.2	0.6
	GMO Payment Gateway	IT Services	1,636	2,496	0.2	0.4
	Konica Minolta	Technology Hardware, Storage & Peripherals	1,615	3,139	0.2	0.5
	Himax Technologies	Semiconductors & Semiconductor Equipment	1,486	2,110	0.2	0.3
	Advanced Semiconductor	Semiconductors & Semiconductor Equipment	1,418	1,014	0.2	0.2
	TDK	Electronic Equipment, Instruments & Components	1,262	-	0.2	-
	Giga-Byte Technology	Technology Hardware, Storage & Peripherals	944	-	0.1	-
	Siliconware Precision Industries	Semiconductors & Semiconductor Equipment	641	2,317	0.1	0.4
	Access	Internet Software & Services	608	613	0.1	0.1
	Unus Technologies	Communications Equipment	-	-	-	-
	Total Asian & Pacific investments		129,247		17.9

Directors

MB Moule (Chairman)
BJD Ashford-Russell
SC Bates

DJ Gamble
PJD Hames

RAS Montagu

Investment Manager and Alternative Investment Fund Manager

Polar Capital LLP

Authorised and regulated by the Financial Services Authority

Portfolio Manager

Ben Rogoff

Secretary

Polar Capital Secretarial Services Limited

represented by Neil Taylor FCIS

Registered Office

4 Matthew Parker Street, London SW1H 9NP
020 7227 2700

Depository, Bankers and Custodian

HSBC Bank Plc

8 Canada Square, London E14 5HQ

Registered Number

Registered in England and Wales

No. 3224867

Company Website

www.polarcapitaltechnologytrust.co.uk

The Company maintains a website which provides a wide range of information on the company, monthly fact sheets, and copies of announcements and other useful details and further links to information sources.

Information on the Company can be obtained from various different sources including www.theaic.co.uk, www.ft.com/markets and www.telegraph.co.uk/funds

Forward Looking Statements

Certain statements included in this Half Year Report contain forward-looking information concerning the Company's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which the Company operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within the Company's control or can be predicted by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward looking statements. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the principal risks and uncertainties included in the Business Review in the latest Annual Report and Financial Statements. No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in Polar Capital Technology Trust plc or any other entity, and must not be relied upon in any way in connection with any investment decision. The Company undertakes no obligation to update any forward-looking statements.

Half Year Report 

The Half Year report will be posted to shareholders and will be appear on the Company's website in late December 2014. Copies of this announcement and of the Half Year report will be available from the Secretary at the Registered Office, 4 Matthew Parker Street, London SW1H 9NP and from the Company's website at www.polarcapital.co.uk 

Neither the contents of the Company's website nor the contents of any website accessible from the hyperlinks on the Company's website (or any other website) is incorporated into or forms part of this announcement.

ENDS

 

END

 

 

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