Polar Capital Technology Trust (PCT) has entered the FTSE 100 Index for the first time today, nearly 25 years after its launch in 1996. In achieving this milestone, PCT becomes one of a select group of six investment companies (a record in itself) that are constituents of the UK’s premier index: 3i Group, Scottish Mortgage, Pershing Square Holdings, F&C Investment Trust, Alliance Witan and now PCT.

PCT was launched as Henderson Technology Trust in 1996, but the management contract passed to Polar Capital in 2002 when PCT’s then managers, Tim Woolley and Brian Ashford-Russell, left to establish Polar Capital. PCT has since seen strong asset growth, recently benefiting from its manager Ben Rogoff’s high conviction on the AI story – you can read more about this here in our most recent note on PCT, published on 16 January – and today has some £4.7bn of net assets and a market capitalisation in the region of £4.4bn.

Ben Rogoff, who has managed PCT since 2006, says “It has been a great privilege to be part of the Polar Capital Technology Trust journey, which began nearly 25 years ago. In the early days, Brian had to convince UK investors of the merits of technology investment; today, our companies need no introduction”. He adds that “More than anything, our inclusion in the FTSE 100 Index reflects the extraordinary nature of technology, its ability to reinvent industries, create massive new markets and drive superior returns for investors. Technology has conquered distance, connected billions and democratised knowledge. Today, rapid innovation is propelling AI towards superhuman capability. While market fluctuations are inevitable, PCT is well positioned for the AI-era which we expect to be one of the most exciting and transformative investment opportunities of our lifetimes.”

[QD comment: The tech sector is a complicated and fast-moving space to follow. As PCT’s managers say, there is limited permanence there; it is forever engaged in a process of creative disruption and once-great companies can disappear, while minnows can become giants, making it a challenging sector to follow. For us it is an area that most, if not all, smaller investors would be best served by delegating their exposure to a professional investment manager, with a diversified portfolio, who has the expertise and resources to manage investments in this space. We think PCT has done an outstanding job in this regard.]

Comments from Catherine Cripps, chair of PCT

“Through what has been a challenging period for the investment trust sector, it is pleasing to see Polar Capital Technology Trust go from strength to strength, under the diligent stewardship of Ben Rogoff, Alastair Unwin and the Polar Capital Technology team. To enter the FTSE 100 Index is no ordinary feat and I and my fellow board members are delighted to see the Company reach this milestone.”