RCM Tech's NAV rises by a third

Technology’s propensity to create new markets and reduce costs across many industries will see it generate growth when other sectors are less buoyant, according to RCM Technology Trust.

The investment trust, managed by Walter Price, says that a carefully structured portfolio of technology investments will outperform in the present economic environment.
 
The chairman pointed to the sovereign debt crisis in the Eurozone and the associated risks if countries default on debts, as well as an uncertain inflationary outlook, as threats to the global economy.

"In this environment it is possible that the managers may seek to hedge some of the downside risk to the portfolio during the course of the year," said Price.

According to the company’s annual report, the undiluted net asset value (NAV) per ordinary share has increased 33.3 per cent in the year from 274.0p at 30 November 2009 to 365.2p at 30 November 2010. The benchmark index increased 18.7 per cent.

The discount to diluted NAV per ordinary share was 8.3 per cent compared with 9.1 per cent in 2009 and the market price of the company's ordinary shares rose by 28.3 per cent per share, from 249.0p to 319.5p.