Chair's Statement
The financial information set out below does not constitute the company's statutory accounts for the years ended 30 April 2026 or 30 April 2025 but is derived from those accounts. Statutory accounts for 2025 have been delivered to the registrar of companies, and those for 2026 will be delivered in due course. The auditor has reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
The full Annual Report and Financial Statements for the Year Ending 30 April 2026 can be found here.
Introduction
On behalf of the Board and myself I am pleased to present to you the Annual Report of the Company for the financial year ended 30 April 2026 (FY26). I would like to thank Shareholders for their continued support and am pleased to note that Shareholders voted overwhelmingly in favour of the Company's continuation at the AGM in 2025.
Performance
The Investment Manager's report is provided on pages 14 to 32 and gives an overview of the year past and the outlook for the near future.
After a volatile start to the 2025 calendar year, navigating DeepSeek and Liberation Day tariff shocks, the technology sector led the market's recovery during the Company's financial year. During the year under review, your Company's net asset value (NAV) per share rose from 325.20p to 657.41p, an increase of 102.2%, while the Benchmark increased 55.0% in sterling terms over the same period. AI again dominated investor attention, market returns and portfolio outcomes. This has been the best relative year for the Company in at least two decades, reflecting the Investment Manager's 'AI maximalist' positioning which aligned closely with accelerating AI adoption.
This year also marked 20 years for Ben Rogoff as the lead manager of the Polar Capital Technology Trust. Under his management, the Company's NAV has increased by 2,498% versus the benchmark's 1,825% increase. During his tenure, Ben has built and retained a deep and talented investment team, the quality of which is reflected in the Company's performance. The Board maintains its high confidence in the continued success of Ben and the team.
The Board continues to believe that there are many interesting developments and long-term opportunities within our sector and this is discussed further in the Investment Manager's Report.
Catherine Cripps
Chair
Discount Management
The Company's discount narrowed during the financial year under review, ending the year at 8.3% compared to 11.3% at the end of FY25. The average discount was 9.5% over the financial year. The Board actively monitors the discount at which the Company's ordinary shares trade in relation to the Company's underlying NAV and, whilst the Board does not have a formal discount policy, it will continue to exercise its discretion to buy back shares at a discount in normal market conditions. Equally, the Board will also use discretion to issue shares at a premium.
Utilising this discretion, the Company repurchased a total of 55,803,823 ordinary shares (representing 4.8% of the issued share capital) in the year under review at an average price of 411.8 pence per share and at an average discount of 10.1% to the prevailing NAV. Following the year end, and up to close of business 2 July 2026, the Company has bought back a further 7,051,976 shares. While purchase levels have been relatively low on an individual transaction basis, we should note that this activity does not preclude the Manager determining that a more significant amount than usual on any one day should be purchased. Such a decision may be influenced by, in the Manager's view, there being a particular investment opportunity best accessed through buying shares in the Company rather than buying individual securities.
Fees
As previously reported, the Company's revised management fee arrangements came into effect on 1 May 2025. We were pleased to have achieved an agreement with the Manager for an overall reduction to the base management fee as well as the complete removal of the performance fee.
New fee arrangements:
The new base management fee is now structured over two tiers and the performance fee removed entirely:
- Tier 1: 0.75% on NAV up to and including £2bn
- Tier 2: 0.60% on NAV above £2bn
Please refer to page 53 for further information on fees. As a result of the reduction in fees and continued growth in NAV we are pleased to see that the ongoing charges ratio has fallen from 0.77% to 0.69%.
Current Base Management Fee Arrangement:
effective 1 May 2022
| 0.80% | £0 - £2bn |
| 0.70% | £2bn - £3.5bn |
| 0.60% | over £3.5bn |
Base Management Fee Arrangement:
to 30 April 2022
| 1% | Up to £800m |
| 0.85% | £800m - £1.6bn |
| 0.80% | £1.6bn - £2.00bn |
| 0.70% | over £2.0bn |
Board Composition
The Nomination Committee continues to work on succession planning as each of the Directors approach their nine year tenure on the Board. Tim Cruttenden and Charles Park will be retiring from the Board at the conclusion of the Annual General Meeting in 2026 and will therefore not be seeking re-election. We would like to thank both Tim and Charles for their significant contribution to the Company's development during their tenure. The Board is continuing to work on a managed programme of recruitment and further information will be shared when available.
There have been no changes to the membership of the Board during the year under review. The Directors' biographical details are available on the Company's website and are provided on pages 8 and 9.
Directors’ Fees
As detailed further within the Remuneration Committee Report, an annual fee review was undertaken to ensure that the remuneration paid to Directors remains attractive, competitive and in line with those of its peers in order to attract and retain the best candidates. The Board usually favours modest increases year-on-year (where applicable) and with effect from 1 May 2026, the Directors' base remuneration increased by 3.4% to £38,250 and the remuneration of the Chair to £69,500. The supplement for the Audit Committee Chair was increased to £9,250 to reflect the additional time required in connection with increased audit regulation and overall responsibility, and the supplement for the Senior Independent Director was increased marginally to £4,250.
Current Base Management Fee Arrangement:
effective 1 May 2022
| 0.80% | £0 - £2bn |
| 0.70% | £2bn - £3.5bn |
| 0.60% | over £3.5bn |
Base Management Fee Arrangement:
to 30 April 2022
| 1% | Up to £800m |
| 0.85% | £800m - £1.6bn |
| 0.80% | £1.6bn - £2.00bn |
| 0.70% | over £2.0bn |
Annual General Meeting
I am pleased to confirm that the Company's AGM will be held on 5 October 2026 at 2:30pm at Herbert Smith Freehills Kramer, Exchange House, Primrose Street, London, EC2A 2EG. We look forward to welcoming Shareholders to the meeting, at which they will receive a presentation from the Investment Manager and his team and Shareholders will also have the opportunity to ask questions and meet the Board; light refreshments will be available following the meeting. The Notice of AGM will shortly be provided to Shareholders and will also be available on the Company's website.
Shareholders are encouraged to read the detailed explanations on the formal business and the resolutions to be proposed at the AGM contained within the Shareholder Information section on pages 135 to 136 of this document as well as the Notice of AGM.
In order to ensure that Shareholders are able to follow the proceedings of the AGM without attending in person, the Company will also broadcast the meeting online via Zoom videoconferencing. However, please note that Shareholders joining via Zoom will not be able to vote online during the AGM and are therefore encouraged to submit their votes via proxy, as early as possible. All formal resolutions will be voted on by way of a poll. In addition to voting on resolutions proposed at the AGM, we also welcome Shareholder engagement with the Board and the Investment Manager. As such, the Board invites Shareholders to not only attend the AGM in person but to submit questions in writing to which we will respond, as far as possible, ahead of the AGM date. Please send your questions to cosec@polarcapital.co.uk with the subject heading PCTT AGM.
Environmental, Social and Governance (ESG)
The Investment Manager incorporates ESG considerations into its investment process and the Board continues to engage closely with the Manager to monitor their progress. The Board receives regular updates on ESG developments on the corporate side of Polar Capital's business. As at 30 April 2026, based on MSCI ESG ratings, the portfolio and the benchmark were both A rated.
Please refer to the ESG Report on pages 42 to 47 which incorporates both the investment and corporate approaches.
Outlook
While macroeconomic uncertainty remains and market volatility may continue, we remain confident in the long-term outlook for the sector. We believe these conditions can create attractive investment opportunities, and both the investment team and the portfolio are well positioned to benefit from continued developments in artificial intelligence. At the same time, Shareholders should be aware that any continued weakening of the US dollar could act as a near-term headwind to performance, given that a significant proportion of the Company's assets are denominated in US dollars. I encourage you to read the Investment Manager's report on pages 14 to 32 for more insight into the excitement the Manager has about various themes developing within our sector.
