In its results of the six months to October 31, the trust reveals that its undiluted net assets per ordinary share fell by 5% while its total net assets dropped by 4.5%. This compares with the fall of just 3.3% seen in the Dow Jones World Technology Index benchmark.
Ben Rogoff, the manager of the £415.8m trust, says: “The marked underperformance of small-cap stocks created a formidable investment headwind that we were unable to overcome.”
Rogoff adds that semiconductor companies suffered from inventory drawdowns, supply disruptions caused by the Japanese earthquake and deteriorating macroeconomic trends.
Networking firms were affected by a strike at Verizon and AT&T’s proposed acquisition of T-Mobile pushing down demand, while Chinese IT service companies’ “desirability” was hit by corporate governance scandals.
However, Rogoff says some individual stock performances were strong over the six months, highlighting the returns delivered by Opnet, Amazon, Google, Commvault and Teradata. The acquisition of Netlogic Microsystems by Broadcom also benefited the portfolio.
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