Polar Capital Technology Trust PLC · LSE:PCT
Polar Capital Technology Trust — Shareholder Meeting (July 2010)
19 slides from Polar Capital Technology Trust's shareholder meeting presentation, Jul 28, 2010
Slide 1: AGM Presentation
AGM Presentation 28 July 2010 This presentation is for non US investors only
Slide 2: Results as at 30 April 2010
Results as at 30 April 2010 Financial highlights Net assets per ordinary share Price per ordinary share Total net assets 315.13p 2009: 216.75p 306.80p 2009: 183.00p £398,627,000 2009: £274,179,000 +45.4% +67.7% +45.4% Benchmark over the year to 30 April 2010 Techmark Technology (Dow Jones World Tech
Slide 3: PCT as at 30 June 2010
PCT as at 30 June 2010 Financial highlights Net assets per ordinary share Price per ordinary share Total net assets 285.79p Year over year return: 289.90p Year over year return: £361,786,998 +32.7% +58.7% Benchmark over the year to 30 June 2010 (Dow Jones World Technology Index, total return) +27.6%
Slide 4: Full year review
Full year review DJ World Tech / FTSE World Index, Sterling terms (30/4/09 – 30/4/10) • Improved macro / risk appetite drives stocks higher • Technology retains its leadership status • Sector outperforms in most major markets • Outperformance driven entirely by superior earnings • Cyclical tailwinds
Slide 5: Improving capital spending backdrop
Improving capital spending backdrop IT expenditure vs. ISM Index (1948 – 1Q2010) IT Capital Spending as a % of US GDP (1947 – 1Q2010) Source: Ned Davis Source: Ned Davis Please refer to the important information at the end of this presentation 4
Slide 6: Valuations undemanding
Valuations undemanding Forward 12 month PE Relative forward 12 month PE Source: Ned Davis, as at 16/7/10 Source: Ned Davis, as at 16/7/10 Please refer to the important information at the end of this presentation 5
Slide 7: Sector far from 'over-owned'
Sector far from ‘over-owned’ US sector positioning, July 2010 Technology Assets as a % of total domestic sector assets Source: Bank of America Merrill Lynch, as at 13/7/10 Source: Ned Davis Research, as at 19/7/10 Please refer to the important information at the end of this presentation 6
Slide 8: Cyclical tailwinds likely persist
Cyclical tailwinds likely persist Global tech aggregate inventory (Q197 – Q110) Semiconductor capital spending to sales (1986 – 2011E) Source: Company Data, CSFB estimates. As at January 2010 Source: Company reports, WSTS, Piper Jaffray estimates. As at March 2010 Please refer to the important infor
Slide 9: A new technology cycle commences
A new technology cycle commences Ranking of CIO ‘top five technology priorities’ IT survey: “best of breed vs. multi-product solution?” Source: Gartner, January 2010 Source: Goldman Sachs IT Survey, January 2010 It should not be assumed that recommendations made in future will be profitable or will
Slide 10: Cloud Computing: delivering IT as a variable cost
Cloud Computing: delivering IT as a variable cost Historical view of computing • Unrelenting data growth + budget pressure is forcing an architectural rethink away from the “IT sprawl” • Datacentre consolidation driven by power-related savings, enabled by virtualisation and plentiful bandwidth • ’Cl
Slide 11: Internet-enabled applications expand the market
Internet-enabled applications expand the market Worldwide online advertising as % of total (2009 – 2020E) • Online advertising / e-Commerce enjoy only single digit penetration rates today = multi-year growth likely. • Internet delivery mechanism levels the playing field for software investment whils
Slide 12: New devices driving ubiquitous computing
New devices driving ubiquitous computing • Smartphone penetration appears to be inflecting, driven Annual Unit Shipments (MM) Smartphones by new devices, flat rate pricing and app availability. Notebook PCs • Mobile data is forecast to rise 39x between 2009 and 2014* with video accounting for c. 66%
Slide 13: EM growth likely to benefit tech sector going forwards
EM growth likely to benefit tech sector going forwards Tech spending by country (CAGR 2007-2013 *) • With a population of 1.3bn China accounts for 7% of global GDP but only 3% of global tech spend* • China enterprise tech spend $73bn in 2008 (1.6% of GDP) versus $831bn (5.8% of GDP) in US* • GS fore
Slide 14: Portfolio Summary
Portfolio Summary Source: Polar Capital, as at 30/6/10 Source: Polar Capital, as at 30/6/10 Please refer to the important information at the end of this presentation 13
Slide 15: Transitioning towards a next-generation portfolio
Transitioning towards a next-generation portfolio Largest overweights Largest underweights AsiaInfo-Linkage Applied Materials ASML Holding Apple Atheros Cisco Systems Market Cap exposure versus benchmark Ebay Corning Fanuc Dell Fujitsu Fujifilm F5 Networks Hewlett-Packard Hon Hai Precision HTC Jusun
Slide 16: New cycles are bad for incumbents
New cycles are bad for incumbents US technology sector (weighted) 1969 - Present US technology sector (un-weighted) 1969 - Present Source: Piper Jaffray Source: Piper Jaffray Please refer to the important information at the end of this presentation 15
Slide 17: Conclusion
Conclusion • Despite recent outperformance, we expect sector leadership to persist • Relative valuations remain undemanding before balance sheets considered • Sector should continue to deliver growth against a backdrop of sub-trend GDP • The IT industry is likely to experience radical change over th
Slide 18: Important Information
Polar Capital Four Matthew Parker Street London SW1H 9NP House View This document has been produced based on Polar Capital research and analysis and represents our house view. All sources are Polar Capital unless otherwise stated. Important Information The information provided in this presentation i
Slide 19: Regulatory Status
Polar Capital Four Matthew Parker Street London SW1H 9NP Regulatory Status This document is Issued in the UK by Polar Capital. Polar Capital LLP is a limited liability partnership number OC314700. It is authorised and regulated by the Financial Services Authority. A list of members is open to inspec
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