REG - Polar Capital Global - Final Results
19/02/2026 07:00
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RNS Number : 5771T Polar Capital Global Financials Tst 19 February 2026
Polar Capital Global Financials Trust plc
19 February 2026
POLAR CAPITAL GLOBAL FINANCIALS TRUST PLC
Legal Entity Identifier: 549300G5SWN8EP2P4U41
AUDITED ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED
30 NOVEMBER 2025
PERFORMANCE HIGHLIGHTS FOR THE YEAR ENDED 30 NOVEMBER 2025
Performance (Sterling total return) Note For the year ended Since Inception
30 November 2025 % %
NAV per ordinary share* 1 13.9 240.9
Ordinary share price* 2 14.5 212.8
Ordinary share price including subscription share value* 3 - 219.2
Benchmark (Sterling total return) 4
MSCI ACWI Financials 13.9 247.9
Other Indices and peer group (Sterling total return)
MSCI World Index 12.5 333.7
FTSE All Share Index 20.0 145.1
Lipper Financial Sector 5 16.5 210.4
Earnings per Ordinary share 6 For the year ended 30 November 2025 For the year ended 30 November 2024
Revenue Return 5.60p 5.31p
Capital Return 16.91p 48.62p
Total 22.51p 53.93p
Expenses* For the year ended 30 November 2025 For the year ended 30 November 2024
Ongoing Charges 0.91% 0.85%
Dividends~
The Company has paid or declared the following dividends relating to the
financial year ended 30 November 2025:
Pay Date Amount per Ordinary Share Record Date Ex-Date Declared Date
Ordinary Shares
In Issue
First interim: 29 August 2025 2.60p 170,306,377 8 August 2025 7 August 2025 15 July 2025
Special dividend: 29 August 2025 1.60p 170,306,377 8 August 2025 7 August 2025 15 July 2025
Second interim: 27 February 2026 2.55p 162,705,218 6 February 2026 5 February 2026 26 January 2026
Total (2024: 4.70p) 6.75p
Note 1
The total return NAV performance for the period is calculated by reinvesting
the dividends in the assets of the Company from the relevant ex-dividend date.
Performance since inception has been calculated using the initial NAV of 98p
and the NAV on 30 November 2025. Dividends are deemed to be reinvested on the
ex-dividend date as this is the protocol used by the Company's benchmark and
other indices.
Note 2
The total return share price performance is calculated by reinvesting the
dividends in the shares of the Company from the relevant ex-dividend date.
Performance since inception has been calculated using the launch price of 100p
to the closing price on 30 November 2025.
Note 3
The total return share price performance since inception includes the value of
the subscription shares issued free of payment at launch on the basis of one
for every five Ordinary shares and assumes such were held throughout the
period from launch to the final conversion date of 31 July 2017. Performance
is calculated by reinvesting the dividends in the shares of the Company from
the relevant ex-dividend date and uses the launch price of 100p per Ordinary
share and the closing price per Ordinary share on 30 November 2025.
Note 4
Effective from 1 June 2024, the Board agreed to remove the chain linked
benchmark which had historically been provided as a point of reference for
information purposes only. The chain linked benchmark was a combination of 3
benchmarks which were in operation during the life of the Company. From
inception until 31 August 2016, the Company's benchmark was the MSCI World
Financials Index Net Total Return Index, which included Real Estate as a
constituent until its removal that year. From 1 September 2016 to 23 April
2020 the benchmark was the MSCI World Financials + Real Estate Net Total
Return Index. From 23 April 2020, the benchmark changed to MSCI ACWI
Financials Net Total Return Index due to the Company's exposure to emerging
market equities and its limited exposure to real estate equities. Performance
and any associated calculations that include the Benchmark, which is now the
MSCI ACWI Financials Net Total Return Index, as a reference point, remain
unchanged.
Note 5
Dynamic median of open ended funds in the Lipper Financial Sector Universe
which comprised 58 open ended funds in the year under review.
Note 6
Refer to Note 11 below for more details.
~ Refer to Note 12 below for more details.
* Alternative Performance Measure, see below for further explanations.
Data sourced by HSBC Securities Services Limited, Polar Capital LLP.
For further information please contact:
Ed Gascoigne-Pees Kelly Nice John Regnier-Wilson
Camarco Polar Capital Global Financials Trust plc Polar Capital LLP
Tele. 020 3757 4984 Tele. 020 7227 2700 Tele. 020 7227 2725
Status of Announcement
The figures and financial information contained in this announcement are
extracted from the draft unaudited financial results for the year ended 30
November 2025 and do not constitute statutory accounts for that year. Once
finalised, the Annual Report and Financial Statements will include the Report
of the Independent Auditors which is expected to be unqualified and not
expected to contain a statement under either section 498(2) or Section 498(3)
of the Companies Act 2006. The Annual Report and Financial Statements for the
year ended 30 November 2025 have not yet been delivered to the Registrar of
Companies.
The figures and financial information for the year ended 30 November 2024 have
been extracted from the published Annual Report and Financial Statements for
the year ended 30 November 2024 and do not constitute the statutory accounts
for that year. The Annual Report and Financial Statements for the year ended
30 November 2024 have been delivered to the Registrar of Companies and
included the Report of the Independent Auditors which was unqualified and did
not contain a statement under either section 498(2) or Section 498(3) of the
Companies Act 2006.
The Directors' Remuneration Report and certain other helpful shareholder
information have not been included in this announcement but will form part
of the finalised Annual Report which will be available on the Company's
website and will be sent to shareholders in February 2026.
National Storage Mechanism
A copy of the Annual Report once published will be submitted to the National
Storage Mechanism ('NSM') and will then be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Neither the contents of the Company's website nor the contents of any website
accessible from the hyperlinks on the Company's website (or any other website)
are incorporated into or form part of this announcement.
CHAIR'S STATEMENT
Dear Shareholders,
On behalf of myself and the Board I am pleased to provide you the Annual
Report of the Company for the year to 30 November 2025.
It has been quite a year for global equity markets generally, led by turbulent
political and economic news flow. However, stock markets overall performed
strongly over the period under review. Major indices experienced significant
moves lower in April 2025 as announcements on US Tariffs spooked the market
but then rallied to close the period meaningfully higher than they started.
Against this backdrop, the Company performed well, returning a net asset value
total return ("NAVTR") per share of 13.9%, ending the year in line with the
benchmark ("MSCI ACWI Financials Index") which also rose 13.9%. Share Price
total returns were ahead of the benchmark at 14.5% reflecting a narrowing of
the Company's share price discount to NAV to 5.1% from 5.5% at the 2024 year
end.
Investment Performance
Equity investing, at its best, requires strong fundamental analysis and at
times patience. Investors have had a challenging time this past year. It would
have been easy to be put off by the US tariff positioning in the first part of
the year but we saw a positive outcome once markets digested the news and
navigated political manoeuvrings and their implications.
As a sector, Financials stocks performed well relative to the wider market,
outperforming the broader Global market which rose 13.4%. It was difficult to
match the returns of technology stocks; that sector tested investors' resolve
with significant volatility. The Manager's detailed report is provided below
and gives an overview of the past year's investment activity and the outlook
for the near future.
Completion of 2025 Tender Offer
As noted in my Chair's Statement in the Half Year Report, under the Articles
of Association, the Company is required to make tender offers at five-yearly
intervals, the first of which was announced in May 2025 in the Tender Offer
Circular. Shareholders representing 43.8% took the opportunity to tender their
shares at close to NAV; these shares were placed into treasury for potential
reissue to the market. I would like to thank all Shareholders for their
support over the past year and for their continued confidence in their
investment.
The next tender offer to Shareholders will be made on or around 30 June 2030.
NAV Discount Management
The Company continued to pursue a substantial share buyback policy during the
year which helped support liquidity in its shares. The Company bought back a
total of 6,514,153 ordinary shares into treasury (excluding the 132,912,988
shares repurchased under the tender offer), during the financial year, at an
average discount of 5.2%. These buybacks had an accretive effect on the NAV of
0.38p per share. Following the year end, a further 1,087,006 ordinary shares
were repurchased into treasury.
The Board issues delegated authority to the Manager and our Corporate Broker
to buy shares under defined parameters. This is designed to ensure that the
Company does not displace any market demand for shares but provides liquidity,
if required, once market demand has been satisfied. The Board has reconfirmed
its delegated authority to the Manager to continue the policy of share
repurchases under appropriate parameters to reduce the discount at which the
Company's shares trade. During the year, the Company's share price traded in a
discount range of 1.2% to 8.5%, ending the financial year at a discount of
5.1%.
Dividends
In respect of the financial year to 30 November 2025 the Company paid an
interim dividend and special dividend in August 2025 of 2.60p and 1.60p
respectively per ordinary share, totalling 4.20p per share. The Board has
declared a further interim dividend of 2.55p per ordinary share payable to
Shareholders on the register as at 6 February 2026. This will bring the total
dividend paid for the financial year under review to 6.75p per ordinary share,
an increase of more than 40% on the previous financial year.
At the Annual General Meeting in 2025, Shareholders approved the cancellation
of the Share Premium Account and changes to the Company's dividend policy.
With effect from 1 December 2025 the Board has adopted an enhanced dividend
policy under which it will aim to pay, in the absence of unforeseen
circumstances, an annual dividend equivalent to approximately 4 per cent. of
the Company's NAV. It is anticipated that the dividends will be paid quarterly
at a level of 1 per cent. of the Company's NAV, calculated on the last
business day of each prior financial quarter. Dividends will be paid from
available revenue reserves and may be topped up, if necessary, from
distributable capital reserves. The first quarterly dividend under the new
policy will be declared in March 2026 and paid thereafter. Further details in
respect of the payment of dividends from distributable capital reserves can be
found in Notes 22 and 24 in the financial statements. The ability to use other
distributable reserves to help smooth the level of dividend payments over the
longer term is a feature of the investment trust structure. Any dividend
distributions by the Company will result in a decrease in NAV.
Gearing
Under the Articles of Association, the Company may utilise an overall maximum
leverage limit of 20 per cent. of NAV at the time at which the relevant
borrowing is taken out or increased. In July 2022, the Company entered into an
agreement with Royal Bank of Scotland ("RBS"), for a three-year revolving
credit facility ("RCF") in the amount of £50m, and two three-year term loans
for £15m and USD $18.4m respectively. In anticipation of the expiry of the
RCF and term loans (outlined above) in July 2025, and given the then impending
Tender Offer, the Company put in place a six-month extension facility with RBS
by way of an RCF totalling £45m. Ahead of the expiry of this extension in
January 2026 the Board reviewed the Company's gearing arrangements and entered
into a new agreement with RBS for a one-year RCF in the amount of £50m. As at
12 February 2026, the latest practicable date of calculation, the portfolio
had net cash of 2.4%.
Management Fees
As reported in the Tender Offer Circular and Half Year Report, during the year
the Board reviewed the Company's management fee arrangements to ensure that
the Company continues to provide value for Shareholders and remains
competitive. Following this review, the Board agreed a reduction in fees
payable to the Investment Manager, Polar Capital, as follows, effective from 1
July 2025:
• A tiered management fee of 0.70 per cent. per annum up to £500
million of the calculation value; and 0.65 per cent. per annum will apply to
the calculation value in excess of £500m;
• the calculation value of the Company for fee calculation and for
tiering purposes (the "calculation value") comprises the sum of two elements:
(a) 50 per cent. of the NAV (on a cum income basis); and (b) 50 per cent. of
the lower of (i) the Company's market capitalisation (on a mid-market basis)
and (ii) NAV (on a cum income basis); and
• the performance fee element of the current fee structure was
completely removed.
Share Capital
As at 30 November 2025, the Company had 331,750,000 ordinary shares of 5 pence
each in issue, of which 167,957,776 shares were held in treasury (2024:
331,750,000 ordinary shares of 5 pence each in issue of which 28,530,635 were
held in treasury). Following the year end, a further 1,087,006 ordinary shares
were repurchased into treasury.
Following these share repurchases, as at 13 February 2026, the total number of
ordinary shares in issue was 331,750,000 and 169,044,782 shares were held in
treasury. There were no shares issued during the period under review.
The Board
The Board is aware of the FCA's Diversity and Inclusion Policy and notes that
its current composition meets two of the three 'comply or explain' targets
with three of the four members being female and one of the two senior
positions being occupied by a female. Whilst we do not meet the recommended
ethnicity requirements, the Board has put in place a succession plan based on
the recommended nine-year tenure of Directors. A key objective for the Board
is having an appropriate blend of skills and diversity of experience and
thought around the table. When the Board next embarks upon a director search
it will set criteria that ensures candidates continue to be sourced from a
broad pool. Further information on this can be found in the Annual Report.
As reported last year, the Board was joined by a Board Apprentice, Ada Okpe.
The Board Apprentice programme is an initiative designed to develop aspiring
board members and boost diversity in boardrooms. Ada's time with the Company
ended in July 2025. The Board found the programme worthwhile and wishes Ada
well for the future; we intend to appoint a further Board Apprentice in due
course.
There have been no other 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 in the Annual Report.
Our Corporate Broker
Shortly after the Company's year end, we were informed that Stifel, our
Corporate Broker, were no longer going to make markets in Investment
Companies. The Board held a beauty parade of potential new Brokers during
December and announced the appointment of Canaccord Genuity Limited as our new
Corporate Broker from 19 January 2026.
Annual General Meeting
The Company's Annual General Meeting ("AGM") will be held at 16 Palace Street
at 2:00pm on Thursday, 26 March 2026. The Notice of AGM has been provided to
Shareholders and will also be available on the Company's website. Detailed
explanations of the formal business and the resolutions to be proposed at the
AGM are contained in the Annual Report and in the Notice of AGM. We will
upload a copy of the Manager's Investment Presentation to the Company's
website ahead of the AGM and will hold only the formal business of the meeting
in person. We have provided a Zoom link in the Notice of AGM which will enable
interested parties to view the formal business and ask questions via the
on-line chat function.
The Managers will be available to answer questions and meet Shareholders
present. All formal business resolutions will be voted on by a poll and we
therefore encourage Shareholders to submit their votes ahead of the meeting by
proxy card which is provided with the Notice of Meeting. Shareholders who hold
shares via an online stockbroker or platform are encouraged to exercise their
vote through their respective platforms and where possible attend the AGM
proceedings. Further information can be found on the AIC's website and in the
Annual Report.
We are conscious of the importance of Shareholder engagement and would like to
encourage Shareholders to engage with the Board and the Investment Manager. As
such, the Board invites Shareholders 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 PCFT AGM by
Tuesday 24 March 2026.
Outlook
Financials as a sector rewarded investors well this past year and the outlook
remains positive. The macro backdrop, while not entirely benign, is
constructive and for banks (the largest sub sector), much improved on the
challenging years of very low interest rates. The sector is diverse and
remains the second largest sector after technology. The improving regulatory
environment is a positive tailwind which should encourage investors to
allocate more to the sector over time. Valuations remain low relative to the
wider market, so capital allocators may well start to pay more attention. Our
Managers have a positive view for the coming year and continue to find
attractive companies to include in the portfolio; they have a broad palette of
geographies to study, sectors to trawl and stocks to identify as long term
winners. We look forward to the coming year with optimism.
Simon Cordery
Chair
18 February 2026
INVESTMENT MANAGER'S REPORT
Investment Review
Performance
The Trust delivered a net asset value total return of 13.9% for the twelve
months to November 2025, in line with the benchmark, the MSCI All Country
World Financials Index, which also rose by 13.9%. Financials outperformed
global equity markets, which rose 13.4%, led by the technology sector which
rose by over 26%. Financials significantly outperformed in the first half of
the year but gave back some of its relative strength following the sharp rally
in AI-related technology shares in September and October. Outperformance
resumed in November and December.
US President Donald Trump's announcements especially around trade, culminated
in the Liberation Day (2 April 2025) package of tariffs. This led to sharp
falls in equity markets. The S&P 500 Index sold off by more than 20%,
hitting a low on 9 April, and led to the US dollar weakening by over 10% in
the first half of calendar year 2025. This impacted returns to sterling
investors.
On the back of a partial reversal of announced tariffs, due to rising concerns
about the impact the announcements were having on the US Treasury market,
there was a sharp rebound in global equity markets in May. This rally
continued for the remainder of the year on the back of strong corporate
earnings. While there was softness in the employment market, with large
negative revisions to historical labour data, equity markets took comfort from
central banks globally continuing to lower interest rates.
The Trust benefited from an overweight exposure to Europe and the Diversified
Financials subsector which were the biggest drivers of the year's positive
performance, offset by slightly weaker stock selection in Asia and the
Insurance sector. UniCredit, Italy's second largest bank, and FlatexDEGIRO, a
German retail broking platform, were the strongest individual contributors to
relative performance. Relative performance was also helped by not holding
Fiserv, a payments and banking software business, whose shares fell by nearly
three-quarters over the year.
Conversely, our holdings in Fidelity National Information Services (FIS),
another US payments and banking software business, and Ares Management
Corporation, a US alternative asset manager, were two of the biggest drags on
performance. Not holding HSBC Holdings, a large index constituent, also held
back relative performance. Equity options used to manage risk and fixed income
holdings were positive contributors.
Portfolio performance
The table below shows the achieved returns of the equity portfolio against
subsector indices.
Benchmark average weight Portfolio average weight
Benchmark performance Portfolio gross return
Index
MSCI ACWI Financials 13.9% 14.7%
-Banks 28.3% 30.8% 47.9% 41.1%
-Diversified Financials -1.0% 4.5% 33.7% 36.9%
-Insurance 7.1% 0.4% 18.4% 18.9%
Source: Bloomberg, 28 November 2025.
Note: The figures are in sterling total return with net dividends reinvested.
Portfolio returns are gross so exclude management fees. Past performance is
not a reliable guide to future performance.
We discuss performance and investment activity by subsector below:
Banks
Banks saw by far the strongest gains across the sector during the year with
the Trust outperforming the subsector benchmark.
Bank benchmark returns by region
Americas
US banks 13.9%
US regional banks -10.4%
Canadian banks 30.2%
Latin American banks 50.9%
Europe
Eurozone banks 95.3%
UK banks 63.4%
Asia Pacific
Japanese banks 30.1%
Chinese banks 19.7%
Indian banks 5.5%
Australian banks 4.4%
Source: Bloomberg, 28 November 2025; total return in sterling.
European banks
Market commentary
European banks stood out for their extremely strong performance over the
period, driven by the positive expectations for profits, despite the muted
background for economic growth. Southern European banks saw the strongest
gains. They were the banks hardest hit by the European Central Bank (ECB)'s
negative interest rate policy in the 2010s which squeezed net interest margins
- the difference between what a bank receives in interest on loans and
securities it holds versus what it has to pay out to depositors - and thus
were the biggest beneficiaries of the reversal of that policy. With ECB
interest rates now at a more 'normal' level, the lag effect of previous
interest rate rises continued to feed through to earnings, profitability and
share prices.
The rally in European bank shares has been supported by a pickup in M&A
activity which was particularly notable in Italy. BPER Banca, the fifth
largest bank in Italy by assets, announced the acquisition of Banca Popolare
di Sondria, a smaller peer, while Banca Montei dei Paschi, bid for Mediobanca,
an Italian investment bank. UniCredit, Italy's second largest bank, was less
successful, with its attempt to acquire Commerzbank, a German bank, being
rebuffed by the German government. Its offer to acquire Banco BPM, a smaller
Italian bank, was blocked by the Italian government although Greek authorities
have been much more welcoming of its purchase of a 29.9% stake in Alpha Bank.
Equally BBVA, the second largest bank in Spain, was unsuccessful in its bid
for Banco de Sabadell, a smaller Spanish bank, which sold its UK bank TSB to
Banco Santander. BPCE, France's third largest bank, acquired Novo Banco,
Portugal's fourth largest bank, which was in the final stages of a listing
process. Finally, Erste Group, an Austrian bank with operations in central and
eastern Europe, announced it was buying a 49% stake in Santander Polska for
€6.9bn.
Trust position
The Trust has had significant exposure to European banks over the year.
Initially the largest holding was UniCredit but in the second half of the year
we reduced it in favour of a holding in BPER Banca. This was on the basis that
the latter's underlying business was performing better than market
expectations and the potential that significant cost synergies from its
acquisition of Banca Popolare di Sondria were being underestimated. Other
holdings in the portfolio include Banco Santander, Alpha Bank and Erste Group.
We purchased Erste Group following the sale of a holding in BAWAG, another
Austrian bank, because of its exposure to the faster growing economies in
central and Eastern Europe. In July we purchased a holding in Permanent TSB
Group Holdings, Ireland's third largest bank, as we believed its franchise was
undervalued. Its shares jumped sharply towards the end of the year on the back
of an announcement that it had put itself up for sale.
In the UK, the largest holdings have been Barclays, which benefited from
stronger capital markets activity, and NatWest Group. The latter position was
then switched into Lloyds Banking Group. We took the opportunity to add to
both Lloyds Banking Group and Barclays following the November budget as the
feared increase in bank levies did not come to pass. We bought a new holding
in Shawbrook Group on its initial public offering (IPO). Shawbrook Group is a
specialist UK bank, focusing on buy-to-let mortgages and small business
lending, which has exhibited consistently higher levels of profitability and
growth versus other smaller UK specialist banks. We had previously owned it
when it listed in 2015 before it was taken private again by Pollen Street
Capital and BC Partners, the former having owned it prior to its initial
listing.
American banks
Market commentary
Large-cap banks led the rally in US banks driven by strong capital markets
activity which drove investment banking and trading revenues. This led to
positive earnings revisions. They also benefit more than their smaller peers
from the expected changes in capital requirements. Citigroup and JP Morgan
Chase saw the biggest rise in share prices, up 50.2% and 28.1% respectively.
Citigroup has had several false starts over the past 15 years in its attempt
to raise returns but a succession of better results led to a large re-rating
of its share price.
Conversely, super-regional banks and their smaller regional peers saw negative
returns over the period, having rallied in the run-up to and shortly after
Trump's election at the end of 2024. Not surprisingly they also sold off into
the tariff-induced market weakness in April but their recovery significantly
lagged the sector. Despite steady results, they lack the investment banking
businesses of their larger peers which have performed well. Notwithstanding
resilient asset quality trends, idiosyncratic loan losses at a couple of
regional banks, impacted sentiment negatively.
The expectation is for a more business-friendly regulatory background for the
sector and we anticipate faster M&A processes given the newly appointed
head of the Federal Deposit Insurance Corporation, the largest bank regulator.
There has been a pickup in M&A activity, albeit on a much smaller scale
than seen in Europe. The most notable transaction was the acquisition of
Comerica by Fifth Third, a Cincinnati headquartered bank with over $200bn of
assets. Comerica is a Texas bank with $77bn of assets and long seen as a
takeover target due to the attractions of the Texan banking market. The
acquisition still does not quite put Fifth Third in the top 15 banks by size
in the US, reflecting how fragmented US banking remains outside the top four
banks.
Canadian banks performed well despite the sluggishness in the Canadian
economy, not helped by trade tensions with the US administration. With
unemployment rising to 7.1%, Canadian banks' focus on mortgage lending and
general conservativism has shielded them, resulting in only a limited increase
in provisions for bad debts. Mexican and Brazilian banks saw very strong
returns. Mexican banks, along with the peso, rebounded strongly from their
selloff in the runup to the US election, when there were fears of a potential
trade war.
Trust position
JP Morgan Chase remained the largest holding in the Trust as we see the
breadth and strength of its franchise, its peer- leading profitability and
growth backed by an extremely strong balance sheet as a very attractive
combination. Other holdings include Bank of America and Citigroup. The Trust
had limited exposure to US regional banks during the year, which was the right
call, but following a trip to the US to see several smaller regional banks, we
purchased a call option on a US regional bank ETF in anticipation of a
year-end rally.
Our only bank holding in Canada has been Royal Bank of Canada. We have owned
Grupo Financiero Banorte, the second largest bank in Mexico, and Nu Holdings
since its founding in 2013. Nu Holdings, while listed in the US, is a
Brazilian digital bank with operations in Colombia and Mexico. It has grown
its customer base to over 100 million since its founding in 2013.
Asian-Pacific banks
Market commentary
Japanese banks have similarly seen a marked improvement in their profitability
and share prices as investors anticipated the need for further monetary
tightening (higher interest rates) which would boost earnings. Japanese banks,
much like their European peers, saw profitability squeezed and share prices
derate when the Bank of Japan cut interest rates to below zero in 2016. The
strong performance of Japanese banks in 2025 was partly offset by the weakness
of the yen against other major currencies, reducing returns to sterling
investors by more than 10% in the year.
Chinese, Indian, Indonesian and South Korean banks have seen a much larger
divergence in share price performance with Chinese and South Korean banks
performing strongly while Indian and Indonesian banks have been relatively
weak. Chinese and South Korean banks, which have historically traded at very
low valuations like those of Europe and Japan, performed well but for
different reasons. In China, they benefited from the government's stimulus
efforts and directed flows of funds. In South Korea the Value Up Program of
corporate governance and transparency reform aiming to emulate what has been
seen in Japan has helped lift valuations from very depressed levels.
Trust position
Our holdings in Asian banks have historically been focused on the faster
growing economies of India and Indonesia where banks have exhibited strong
growth, asset quality metrics and profitability. We had pared back our
holdings significantly over the past two years against a background of tighter
monetary policy and asset quality concerns. However, during the year we bought
back a holding in HDFC Bank which, following a prolonged period of balance
sheet adjustments after the merger with its parent, HDFC Corp, should
accelerate its growth and improve profitability.
We started a position in Bank Central Asia, the largest private sector bank in
Indonesia and one of the most profitable globally, following a derating on the
back of macro concerns related to the government's fiscal policy. After a year
of transition, we see an improved outlook for Indonesian banks in 2026
supported by a strengthening economy increasing liquidity and a pickup in
government spending. In Japan we own Sumitomo Mitsui Financial and Mizuho
Financial Group, the country's two largest banks, which continue to see
tailwinds from the normalisation in interest rates.
In Australia, valuations have arguably been distorted by the savings that have
been funnelled into the domestic equity markets (in contrast to the UK where
outflows from domestic equities have continued unabated). However, Australian
banks overall underperformed as the share price of Commonwealth Bank of
Australia, Australia's largest bank, (valued at over 2(1/2) times the
multiples of its global peers) fell in November after disappointing results.
Australian banks overall underperformed.
Diversified financials
Diversified financials saw very mixed performance with the Trust delivering a
positive performance through careful stock selection despite the subsector
benchmarks delivering returns negative for the period.
Payment companies and consumer finance
Market commentary
Visa and Mastercard dominate the diversified financials sector due to the size
and profitability of their payment networks. In the long term, they have been
fantastic investments benefiting from their oligopolistic characteristics and
consistently growing revenues and profits as consumers have shifted from cash
to cards and increased their spend on online shopping. As a result, they have
traded at a premium to the S&P 500 Index. However, over the past year
investors have raised questions about whether their businesses are threatened
by the growth of stablecoins. This led to muted returns over the period as
their premium rating to the S&P Index deflated.
American Express (AMEX) and Capital One Financial both operate payment
networks but on a much smaller scale, the latter following the purchase last
year of Discover Financial Services. Both companies are better known for their
credit card business with both delivering positive returns and while AMEX
outperformed over the year, Capital One lagged slightly. However, reflecting
the K-shaped economy in the US, smaller consumer finance companies with
greater exposure to lower income customers saw a much more mixed share price
performance.
Other payment businesses suffered significant weakness in share prices as
competition across the industry led to pressure on revenues and margins and
therefore profitability. Fiserv suffered a very significant drop in its share
price after a new CEO reset expectations lower, highlighting that the
decisions by the previous management team to defer investment and cut costs
had had an impact on growth. FIS, a competitor which had suffered some
weakness in its share price over a messy set of earnings and weaker cashflow
generation, was dragged down in sympathy, despite not cutting guidance on its
earnings. Other payments companies such as PayPal and Block also suffered
double-digit falls in their share prices.
Trust position
Mastercard and Visa remain two of the largest holdings in the portfolio, even
though they were reduced during the year, as we continue to like the defensive
characteristics of the businesses. We sold a holding in AMEX during the year
on valuation grounds while purchasing a new holding in Capital One Financial
as we see the synergies from the acquisition of Discover Financial Services
and the ability for Capital One Financial to drive more transactions through
its payment network as an extremely attractive combination. Nevertheless, we
have remained underweight consumer finance companies in the portfolio against
the background of a softening outlook for the labour market in the US.
We have no exposure to the smaller payment businesses and sold the holding in
FIS in the belief that the overhang on the sector would persist to the
detriment of its share price.
Exchanges and data providers
Market commentary
Exchanges and data providers came under pressure during the year for a variety
of reasons. Over recent years, some of the largest exchanges have morphed from
being purely driven by the volume of trades transacted on their platforms to,
in varying degrees, businesses that have excelled at monetising the data they
own, such as transactional data regarding financial or commodity markets or on
indices they compile. In the past year, the concern is that AI could
potentially impact these advantages and put pressure on fees and therefore
growth and profitability, because it can provide data at a much lower cost.
Similarly, data providers such as MSCI, S&P Global and Moody's, trade on
higher valuations than the wider equity market for the same oligopolistic
reasons that Visa and Mastercard do with S&P, with Moody's and Fitch
estimated to be responsible for over 90% of credit ratings globally. Trillions
of dollars are invested in funds that follow indices compiled by MSCI and
S&P, on which they charge fees. However, share prices struggled as they
lacked any significant positive news to offset the perceived AI threat. Also,
a smaller peer, FactSet, that provides analytical data to investment firms and
investment banks suffered a sharp fall in its share price on the back of
announcing it needed to make significant investments going forward including
in AI, which weighed on sentiment.
Trust position
During the year we had holdings in Deutsche Boerse, Hong Kong Clearing &
Exchanges (HKEX) and Nasdaq, (since sold after good share price performance).
HKEX is benefiting from the efforts by Chinese authorities to stimulate the
Chinese economy. We also had a holding in London Stock Exchange Group,
initially bought in the April selloff, reduced on the back of a weaker share
price and then added to following a further fall as we believe the concerns
over AI being a competitive threat to its business are overstated. However,
following the year end the holding in the London Stock Exchange Group has been
sold. We also bought back into Deutsche Boerse on weakness. We held
Intercontinental Exchange, which operates the New York Stock Exchange among
others, throughout the year, while purchasing a new holding in S&P Global
following its weak performance.
Asset managers
Market commentary
Asset managers are split between what are called 'traditional' and
'alternative' asset managers, with the former generally running actively
managed equity and bond funds and with several of the larger ones also having
exposure to passive funds. In contrast, alternative asset managers invest
mostly into private assets, whether that be private equity, private credit,
real estate or infrastructure, on behalf of clients. As we have highlighted in
previous reports, traditional asset managers have struggled as flows have
shifted from actively managed funds where fees are higher to passive funds
where fees are much lower, leading to pressure on asset managers to cut fees
on active funds to compete.
Conversely, alternative asset managers have seen and continue to see, very
strong inflows. However, share prices suffered significant volatility during
the year following the collapse of several highly leveraged automotive-related
companies in the US, notably First Brands and Tricolor, over concerns that
there has been a drop in underwriting standards due to the amount of capital
flowing into private credit. While there are allegations of fraud in both
cases, JP Morgan's CEO Jamie Dimon's comments about the two losses ("I
probably shouldn't say this but when you see one cockroach, there are probably
more") added fuel to the fire, with various commentators describing the
private credit industry as a Potemkin Village, although there have been
minimal credit losses to date.
Trust position
We had already significantly reduced our exposure to alternative asset
managers at the end of 2024 to around a mid-single-digit percentage of the
portfolio. But we took the opportunity to reduce it further, reducing holdings
in Ares Management Corporation and Blackstone while in Europe we sold holdings
in ICG (Intermediate Capital Group) and CVC Capital Partners. Nevertheless,
despite our more cautious outlook on the subsector, we purchased a holding in
EQT, a Swedish private equity manager founded by the Wallenberg family.
We also bought holdings in DWS Group, a German asset manager, and Affiliated
Managers Group (AMG), a US firm which owns stakes in 35 asset management
companies (including Artemis, Pantheon and AQR). DWS Group and AMG are seeing
inflows, with DWS Group benefiting from its Xtrackers ETF business. AMG has
seen strong inflows from its stable of alternative asset managers, in
particular AQR, a US quant manager.
Investment banks and trust banks
Market commentary
Counterintuitively, investment banks and trust banks are designated as
diversified financials. The logic becomes clearer when considering their
earnings are much more exposed to financial markets. Trust banks' revenues are
dominated by their custody businesses, holding assets on behalf of asset
managers, insurance companies and sovereign wealth funds with the largest,
State Street and Bank of New York Mellon, also having large asset management
and wealth businesses. Unsurprisingly against the background of strong
financial markets, performance was good.
Trust position
Our largest holding at the beginning of the year was in Goldman Sachs Group
and our caution on valuations led to trimming the position into strength
before selling the balance in preference for a holding in Morgan Stanley where
we saw a more attractive risk/reward due to its more diversified business. We
also purchased a holding in Bank of New York Mellon, the largest custody bank
globally with over $50trn of assets under custody, on the back of its
management team's strategy to manage the bank more effectively. The CEO has
highlighted that despite the size of the bank, clients on average only use one
service and the bank has missed out on opportunities to cross-sell and do more
for clients. Management stated it as the "single most compelling opportunity
for the company". Its shares rose over 40% during the year.
Trading and savings platforms
Market commentary
Outside the banks sector, savings and trading platforms saw the biggest share
price gains as buoyant financial markets, resulted in positive earnings
revisions and rising valuations across the subsector. Oliver Wyman estimates
that Europe will add 22 million new brokerage accounts by 2028 with
penetration of the adult population increasing from 6.8% to 11.7% by 2028,
still less than a third of that in the US. Younger generations are investing
at an earlier age with research showing that generation Z begins investing on
average at age 19, versus 26 for millennials, 32 for generation X and 35 for
those in their 60s and 70s, reflecting how much easier it has become to trade
with mobile apps.
Trust position
We had significant exposure to several such companies at the beginning of the
year which we added to on the basis that they would be beneficiaries of the
volatility in financial markets. Different business models and the
fragmentation of European markets have led us to have a diverse range of
holdings, including FinecoBank, an Italian digital bank (which we later sold),
FlatexDEGIRO, a pan-European retail broker, Interactive Brokers Group, a
US-listed retail broker, (which we reduced materially during the year) and
finally both IG Group Holdings (IG) and Plus500. IG and Plus500 are listed in
the UK and derive a significant percentage of their revenues from clients
trading equities and commodities. Historically there is a jump in trading
activity during periods of volatility and we saw this again this year.
Insurance
Insurance returns lagged the wider sector and the portfolio underperformed in
a challenging environment for stock selection.
Insurance brokers
Insurance brokers have provided investors with excellent returns over the past
decade as they have benefited from the growing demand for insurance, improving
profit margins and, as they take no underwriting risk, strong cashflows
coupled with a succession of accretive acquisitions of smaller insurance
brokers. However, with the subsector trading on relatively high premiums to
the wider equity market, a slowing in topline growth in the second half of the
year resulted in share prices falling. They ended the year down on average by
just under 20%, after adjusting for US dollar weakness, even though the impact
on profitability has so far been limited.
Against that background we have been underweight the subsector. We saw an
opportunity to buy a holding in Arthur J Gallagher, the third largest listed
insurance broker, following the announcement that it had agreed to pay over
$12bn to acquire Assured Partners, a Florida-headquartered insurance broker,
in December 2024. The announcement had led to weakness in its share price as
it required a capital raise. The shares then performed well over the first few
months of our holding before coming under pressure as the Federal Trade
Commission requested more information to approve the transaction. We sold the
position and, with the background less favourable for the industry, have no
exposure at the date of this report.
Reinsurance and P&C Insurance
Reinsurers and P&C (property & casualty) insurers saw mixed returns.
For reinsurers, the past three years have been excellent for profitability.
The substantial increase in the cost of reinsurance and tighter terms and
conditions on policies - namely an increase in the size of losses needed
before a primary insurer can claim on its reinsurance policy led to much
better returns for the risk being underwritten. Notwithstanding higher
reinsurance costs, P&C insurers also benefited from similar trends with
the subsector overall performing very well.
Not surprisingly, reflecting the much better background for profitability,
2025 has seen pricing of insurance fall across a number of areas of the
market, most notably property catastrophe reinsurance but also cyber
insurance, director and officers, workers compensation and property insurance,
with US motor insurance expected to follow suit. Even with these falls, other
classes of insurance are still seeing pricing increase and higher investment
income from the rise in bond yields since the pandemic, and profitability
remains very good. However, the market has been more concerned that price
falls will get worse as competition picks up which has put pressure on share
prices.
At the beginning of 2025 we sold holdings in Arch Capital and RenaissanceRe
Holdings, both Bermuda-based reinsurance companies. As well as believing the
narrative described above would weigh on share prices, we also felt several
other companies would have to raise reserves for claims in their casualty
books and were concerned that this would continue to weigh on sentiment. We
sold a holding in Hannover Re, a German reinsurer, to buy a holding in Swiss
Re where we saw greater upside with the company having materially strengthened
reserves. We have subsequently sold out of our position.
We have retained holdings in Intact Financial Corporation, a Canadian
insurance company, which expanded into the UK via its purchase of RSA
Insurance in 2021. We also purchased a new holding in The Hartford Insurance
Group which has a large business focused on insuring small and mid-sized
businesses in the US, where insurance pricing is less volatile and continues
to show steady rises year on year. We sold a holding in Progressive, the
second largest motor insurer in the US, over fears that excess profitability
in motor insurance would lead to lower growth and competition as GEICO, owned
by Berkshire Hathaway, had seen a significant improvement in its
profitability.
Life & health insurance and multi-line insurance
Life & health and multi-line insurers were the best performing parts of
the insurance sector with the latter predominantly made up of diversified
European insurance companies benefiting from the weight of money going into
Europe attracted by undemanding valuations and steady businesses. Life &
health saw greater dispersion, with US companies seeing weaker performance in
part due to dollar weakness and poor performance of the wider US insurance
sector but also exposure in their investment portfolios to private credit
impacting sentiment. Asian companies conversely saw strong performance, again
in part from the strength of Chinese, Hong Kong and Japanese equity markets.
Historically we have had limited exposure to this part of the insurance sector
due to the opaqueness of their accounts, the hard-to-quantify risks that are
being underwritten and a history of poorly designed products that led to
significant losses for some US life insurers from poor hedging. Reflecting
this, some trade on very low multiples which do offer opportunities but often
not sufficiently attractive compared to others we can find. Nevertheless,
there are exceptions and against a background of higher interest rates and
bond yields it has become a more attractive opportunity for businesses to sell
new policies, so we remain open-minded.
Consequently, at the end of the year we had around two-thirds of our exposure
in the insurance sector to life insurers, notably AIA Group, Prudential, Globe
Life and Reinsurance Group of America where we saw a more attractive set up
than in property and casualty insurers or reinsurers. AIA Group and Prudential
are both Asia-focused life and health insurance businesses and we see them as
very attractive when looking at a growing middle class in Asia and the low
penetration of insurance relative to developed markets. Both are heavily
reliant on agents to sell their products with China and Hong Kong generating a
significant percentage of profits. Lockdowns during Covid impacted both
significantly, leading to reduced sales. The slow recovery in travel after the
lifting of travel restrictions also impacted them as a meaningful number of
customers in mainland China travel to Hong Kong to purchase policies.
Outlook
Financials outperformance
Financials have now outperformed wider equity markets in four of the past five
years. We believe its outperformance in 2025 reflected a combination of
attractive fundamentals while being seen as relatively insulated from the
direct impact of tariffs, notwithstanding that it would not be immune from the
indirect impacts. Furthermore, as the sector is more diversified regionally,
with less than 50% comprising US-listed companies versus 65% for global
equities, it benefited in relative terms from the weaker dollar. Another
likely factor was that both the technology and healthcare sectors came under
pressure for idiosyncratic reasons earlier in the year before recovering,
albeit with technology stocks selling off again in November and December 2025,
after the year end.
The background has improved markedly for the sector but, as importantly, so
has the perception that it is an attractive area of the market to allocate
capital to, where it offers greater diversification in equity markets that are
highly concentrated around US equity markets and in particular US technology.
Not only does the fundamental outlook remain constructive for the sector and
offer exposure to a number of exciting themes, but it continues to benefit
from attractive valuations relative to wider equity markets and other sectors.
Europe overweight and US underweight
The portfolio positioning has not dramatically changed since the last
reporting period with an overweight position in Europe set against a small
underweight to the US and underweight positioning to Australia and China while
continuing to be selective on what we hold in emerging markets. The
underweight position in the US reflects in part, increasing concerns that
erratic US policy and fiscal largesse will act as an overhang on sentiment and
that has led to investors reallocating away from the US. Nevertheless, the US
continues to be home to great companies, many of which are benefiting from
strong tailwinds, and the region has significant advantages over the rest of
the world, all of which tempers the underweight position.
Europe remains the largest overweight in the portfolio as we believe the
risk/reward continues to look favourable. Despite strong performance,
sentiment continues to improve with valuations still attractive relative to
history.
We continue to like the outlook for the European banking sector, which has
outperformed the so-called 'Magnificent Seven' US large-cap technology stocks
over the past five years with a combination of strong earnings, high levels of
capital return and supported from a favourable environment for M&A.
Furthermore, the potential for the EU Savings and Investments Union initiative
to unlock the huge amount of deposits currently in low-yield deposit accounts
for investment would benefit several of our holdings, including FlatexDEGIRO
and DWS Group.
Emerging markets
With few interruptions, emerging market financials have consistently
underperformed the wider sector over the past 15 years, returning on average
5% per annum compared to 10% for developed market financials. This is despite
the huge potential for growth due to the relatively low level of penetration
of financial services. With the growth in the middle classes, we would expect
the demand for financial services to grow faster than GDP as their increased
level of income increases demand for mortgages, insurance products and
investments.
In 2025, emerging market financials marginally lagged, dragged down by the
weak performance of Indian and Indonesian financials. We remain underweight
for now but have been getting some of our exposure via AIA Group and
Prudential, both developed-market listed companies that generate a significant
percentage of their revenues from emerging Asian markets. Similarly, holdings
in both UniCredit and Erste Group have material exposure to the economies of
Central and Eastern Europe.
Regulation
Regulators, both in the US and elsewhere, are looking to simplify rules that
have built up over the past 15 years, with Trump appointing new heads to a
number of regulatory agencies with that aim. As Michelle Bowman, the newly
appointed Vice Chair for Supervision at the Federal Reserve, noted in April
2025 at the Senate Committee on Banking to review her nomination: "The US
regulatory framework has grown expansively to become overly complicated and
redundant, with conflicting and overlapping requirements. The growth has
imposed unnecessary and significant costs on banks and their customers."
US Treasury Secretary Scott Bessent also took to X, in December, to lambast
Democrat Senator Elizabeth Warren, who is the ranking Democrat member on the
Senate Banking Committee in relation to the impact of "the Senator's beloved
and ill-conceived regulatory straitjacket as enforced by the Biden
Administration" on the banking sector. While in the US, proposals to reduce
capital requirements for banks are expected to come into effect in 2026 and
2027, in the UK and Europe policymakers are belatedly waking up to the
realisation that the answer to growth cannot be more regulation, more capital
and yet more acronyms.
Last year, the House of Lords produced a report stating that the UK's two main
regulators, the Prudential Regulatory Authority and the Financial Conduct
Authority had overseen the evolution of regulatory processes to the point that
"international competitiveness and growth objective is being held back by
pervasive risk aversion, regulatory uncertainty and inefficiency in the
regulatory system." The UK Chancellor of the Exchequer stated in her Mansion
House speech, that she will be "rolling back regulation that had gone too far
in seeking to eliminate risk". These belated efforts include making the UK
equity market more attractive for new issues and making changes to capital
requirements. In the UK, claims management companies are now having to pay
towards the cost of frivolous claims. It is a start. In Europe, regulatory
change will move more slowly but either way we see the steps being taken as
positive for the sector.
Nick Brind, George Barrow and Tom Dorner
Co-Managers
Polar Capital Global Financials Team
18 February 2026
Note
We would draw shareholders attention to
www.polarcapitalglobalfinancialstrust.com for regular monthly portfolio
updates and commentary.
Full Investment Portfolio
As at 30 November 2025
Ranking Market Value % of total net assets
£'000
2025 2024 Stock Sector Country 2025 2024 2025 2024
1 (1) JP Morgan Chase Banks North America 27,834 45,025 7.4% 7.1%
2 (2) Mastercard Financial Services North America 16,466 28,254 4.4% 4.5%
3 (3) Bank of America Banks North America 15,859 25,594 4.2% 4.1%
4 (4) Visa Financial Services North America 11,780 23,130 3.1% 3.7%
5 (-) Royal Bank of Canada Banks North America 11,404 - 3.0% -
6 (-) BPER BANCA Banks Europe 10,627 - 2.8% -
7 (-) AIA Group Insurance Asia (ex-Japan) 10,062 - 2.7% -
8 (15) Erste Group Banks Europe 9,422 12,214 2.5% 2.0%
9 (8) Citigroup Banks North America 9,284 13,914 2.5% 2.2%
10 (12) Globe Life Insurance North America 9,260 12,845 2.5% 2.0%
Top 10 investments 131,998 35.1%
11 (-) Banco Santander Banks Europe 9,014 - 2.4% -
12 (-) Morgan Stanley Financial Services North America 8,645 - 2.3% -
13 (5) Berkshire Hathaway Financial Services North America 8,065 17,466 2.1% 2.8%
14 (-) Prudential Insurance Asia (ex-Japan) 7,867 - 2.1% -
15 (-) S&P Global Financial Services North America 7,813 - 2.1% -
16 (10) Sumitomo Mitsui Financial Banks Japan 7,580 13,526 2.0% 2.1%
17 (-) HDFC Bank Banks Asia (ex-Japan) 7,482 - 2.0% -
18 (-) Bank of New York Mellon Financial Services North America 7,295 - 1.9% -
19 (51) Moneybox (unquoted) Financial Services United Kingdom 6,772 5,418 1.8% 0.9%
20 (-) Capital One Financial Financial Services North America 6,767 - 1.8% -
Top 20 investments 209,298 55.6%
21 (-) NU Holdings Banks Latin America 6,634 - 1.8% -
22 (-) Alpha Bank Banks Eastern Europe 6,435 - 1.7% -
23 (27) Intercontinental Exchange Financial Services North America 6,421 10,766 1.7% 1.7%
24 (-) The Hartford Insurance Group Insurance North America 6,341 - 1.7% -
25 (33) UniCredit Banks Europe 6,238 8,940 1.7% 1.4%
26 (-) Lloyds Banking Group Banks United Kingdom 6,228 - 1.7% -
27 (9) Barclays Banks United Kingdom 6,167 13,689 1.6% 2.2%
28 (-) London Stock Exchange Group Financial Services United Kingdom 6,120 - 1.6% -
29 (-) NOBA Bank Banks Europe 6,114 - 1.6% -
30 (-) Shinhan Financial Group Banks Asia (ex-Japan) 5,982 - 1.6% -
Top 30 investments 271,978 72.3%
31 (-) Affiliated Managers Group Financial Services North America 5,950 - 1.5% -
32 (21) Intact Financial Corporation Insurance North America 5,717 10,911 1.5% 1.7%
33 (-) Grupo Financiero Banorte Banks Latin America 5,603 - 1.5% -
34 (47) Bank of Cyprus Holdings Banks Europe 5,598 5,609 1.5% 0.9%
35 (-) Shawbrook Group Banks United Kingdom 5,528 - 1.5% -
36 (-) FlatexDEGIRO Financial Services Europe 5,215 - 1.4% -
37 (-) DWS Group Financial Services Europe 5,121 - 1.4% -
38 (53) Bank Central Asia Indonesia Banks Asia (ex-Japan) 5,098 5,370 1.3% 0.8%
39 (-) Stonex Group Financial Services North America 4,855 - 1.3% -
40 (-) Permanent TSB Group Holdings Banks Europe 4,848 - 1.3% -
Top 40 investments 325,511 86.5%
41 (-) Reinsurance Group of America Insurance North America 4,790 - 1.3% -
42 (-) Mizuho Financial Group Banks Japan 4,742 - 1.3% -
43 (-) EQT Financial Services Europe 4,711 - 1.3% -
44 (-) Plus500 Financial Services Asia (ex-Japan) 4,599 - 1.2% -
45 (36) BlackStone Group Financial Services North America 4,438 8,220 1.2% 1.3%
46 (-) China Life Insurance Insurance Equity Real Estate Asia (ex-Japan) 4,372 - 1.1% -
47 (55) Irish Residential Properties REIT Investment Trusts Europe 3,955 4,412 1.1% 0.7%
(REITs)
48 (23) Beazley Insurance United Kingdom 3,911 10,844 1.0% 1.7%
49 (35) Deutsche Boerse Financial Services Europe 3,892 8,704 1.0% 1.4%
50 (14) ICICI Bank Banks Asia (ex-Japan) 3,791 12,617 1.0% 2.0%
Top 50 investments 368,712 98.0%
51 (-) Axa Insurance Europe 3,417 - 0.9% -
52 (22) IG Group Financial Services United Kingdom 3,388 10,876 0.9% 1.7%
53 (24) Ares Management Corporation Financial Services North America 3,231 10,828 0.9% 1.7%
54 (60) Deutsche Beteiligungs 5.5% 2030 Fixed Income Fixed Income 2,667 2,373 0.7% 0.4%
Convertible Bond
55 (63) Investec preference Fixed Income Fixed Income 2,482 2,181 0.7% 0.3%
56 (75) Personal Group Insurance United Kingdom 2,400 1,302 0.6% 0.2%
57 (64) Atom Bank 11.5% 2035 Bond Fixed Income Fixed Income 2,371 2,103 0.6% 0.3%
58 (-) Coinbase Global Financial Services North America 2,349 - 0.6% -
59 (28) Interactive Brokers Group Financial Services North America 2,310 10,714 0.6% 1.7%
60 (-) ANZ Group Holdings Banks Asia (ex-Japan) 1,855 - 0.5% -
Top 60 investments 395,182 105.0%
61 (-) Oberon Investments Group CLN 12% Financial Services United Kingdom 1,530 - 0.4% -
09/2028 (unquoted)
62 (-) Atom Bank 9.5% Perp Bond Fixed Income Fixed Income 1,511 - 0.4% -
63 (-) Vanquis Banking Group 10.875% Perp Bond Fixed Income Fixed Income 1,401 - 0.4% -
64 (77) Atom Bank (unquoted) Banks United Kingdom 1,281 1,281 0.3% 0.2%
65 (68) Riverstone Credit Opportunities Fixed Income Fixed Income 1,136 1,761 0.3% 0.3%
66 (-) Augmentum Fintech Financial Services United Kingdom 283 - 0.1% -
Total Investments 402,324 106.9%
Other net liabilities (26,032) (6.9%)
Total net assets 376,292 100.0%
Note: Figures in brackets denote comparative rankings as at 30 November 2024.
Portfolio Review
As at 30 November 2025
Geographical Exposure* Benchmark weighting as at 30 November 2025** 30 November 2025 30 November 2024
North America 54.06% 49.5% 61.0%
Europe 15.87% 20.9% 14.0%
Asia (ex-Japan) 15.63% 13.7% 7.9%
United Kingdom 4.57% 11.5% 11.3%
Japan 4.66% 3.3% 3.2%
Latin America 1.12% 3.2% 0.9%
Fixed Income 0.58% 3.1% 6.5%
Eastern Europe 0.86% 1.7% -
Other net liabilities - (6.9%) (4.8%)
Total 100.0% 100.0%
Sector Exposure* Benchmark weighting as at 30 November 2025** 30 November 2025 30 November 2024
Banks 45.61% 50.7% 35.3%
Financial services 36.4% 36.5% 42.4%
Insurance 17.39% 15.5% 19.9%
Fixed Income 0.58% 3.1% 6.5%
Equity Real Estate Investment Trusts (REITs) - 1.1% 0.7%
Other net liabilities - (6.9%) (4.8%)
Total 100.0% 100.0%
Market Capitalisation* Benchmark weighting as at 30 November 2025** 30 November 2025 30 November 2024
Mega Cap 39.59% 37.8% 33.5%
Large Cap 31.7% 24.8% 24.5%
Mid Cap 19.8% 16.8% 12.8%
Smallest Cap 0.7% 16.0% 11.9%
Small Cap 7.6% 8.4% 15.6%
Fixed Income - 3.1% 6.5%
Other net liabilities - (6.9%) (4.8%)
Total 100.0% 100.0%
* Based on the net assets as at 30 November 2025 of £376.3m (2024: £629.7m).
**The classifications are derived from the Benchmark as far as possible. Not
all geographical areas or sectors of the Benchmark are shown, only those in
which the Company had an investment at the year end.
STRATEGIC REPORT
The Strategic Report section of this Annual Report comprises the Chair's
Statement, the Investment Manager's Report, including information on the
portfolio, and this Strategic Report. This Report has been prepared to provide
information to Shareholders on the Company's strategy and the potential for
this strategy to succeed, including a fair review of the Company's performance
during the year ended 30 November 2025, the position of the Company at the
year end and a description of the principal risks and uncertainties, including
both economic and business risk factors, underlying any such forward-looking
information.
Business Model and Regulatory Arrangements
The Company's business model follows that of an externally managed investment
trust providing Shareholders with access to a portfolio of mostly listed or
quoted securities issued by companies in the financial sector. Its shares are
listed on the main market of the London Stock Exchange.
The Company is designated an Alternative Investment Fund ('AIF') under the
Alternative Investment Fund Management Directive ('AIFMD') and, as required by
the Directive, has contracted with Polar Capital LLP to act as the Alternative
Investment Fund Manager ('AIFM') and HSBC Bank Plc to act as the Depositary.
Both the AIFM and the Depositary have responsibilities under AIFMD for
ensuring that the assets of the Company are managed in accordance with the
investment policy and are held in safe custody. The Board remains responsible
for setting the investment strategy and operational guidelines as well as
meeting the requirements of the Financial Conduct Authority ('FCA') Listing
Rules and the Companies Act 2006.
The AIFMD requires certain information to be made available to investors in
AIFs before they invest and requires that material changes to this information
be disclosed in the Annual Report of each AIF. Investor Disclosure Documents,
which set out information on the Company's investment strategy and policies,
gearing, risk, liquidity, administration, management, fees, conflicts of
interest and other Shareholder information are available on the Company's
website.
There have been no material changes to the information requiring disclosure.
Any information requiring immediate disclosure pursuant to the AIFMD will be
disclosed to the London Stock Exchange. Statements from the Depositary and the
AIFM can be found on the Company's website.
Investment Objective and Policy
The Company's investment objective is to generate for investors a growing
dividend income together with capital appreciation. The Company seeks to
achieve its objective by investing in a global portfolio primarily consisting
of listed or quoted securities issued by companies in the financial sector
operating in its various subsectors. The portfolio is diversified by factors
including geography, industry subsectors and stock market capitalisation.
The Company may have a small exposure to unlisted and unquoted companies, but
in aggregate, this is not expected to exceed 10% of total assets at the time
of investment. The Company will not invest more than 10% of total assets, at
the time of investment, in other listed closed-ended investment companies and
no single investment will account for more than 10% of the portfolio at the
time of investment.
The Company may employ levels of borrowing from time to time with the aim of
enhancing returns. This is currently subject to an overall maximum of 20% of
net assets at the time the relevant borrowing is taken out. Actual levels of
borrowing may change from time to time based on the Manager's assessment of
risk and reward. The Company may invest through equities, index-linked and
other debt securities, cash deposits, money market instruments, foreign
currency exchange transactions, forward transactions, index options and other
instruments including derivatives. Forward transactions, derivatives
(including put and call options on individual positions or indices) and
participation notes may be used to gain exposure to the securities of
companies falling within the Company's investment policy or to seek to
generate income from the Company's position in such securities, as well as for
efficient portfolio management. Any use of derivatives for investment purposes
is made based on the same principles of risk spreading and diversification
that apply to the Company's direct investments. The Company may hedge exposure
to foreign currencies if considered appropriate for efficient portfolio
management.
Strategy and Investment Approach
The Manager's investment process is primarily driven by a bottom-up
fundamental analysis of individual companies, with macroeconomic inputs. The
Manager uses both quantitative and qualitative screens to rank companies on a
risk-adjusted basis using a number of variables such as profitability, risk,
growth and ESG metrics which is in addition to more detailed stock or
sector-specific research. The Portfolio Managers undertake trips to the US,
Europe and Asia to meet companies as well as regularly meeting companies at
various conferences and at the Polar Capital offices.
The portfolio is primarily invested in companies with a market capitalisation
greater than US$5bn. There are no limits on the exposure of the investment
portfolio to either small or mid-cap companies where the Managers take
positions on an opportunistic basis. The Manager has discretion to invest up
to 10% of the portfolio in debt securities.
The investment portfolio is invested in a variety of companies that may offer
both income and capital growth. The Board, together with the Manager will
continue to assess the likely income capability of the portfolio to determine
the appropriate longer-term distribution level. Please refer to the Chair's
Statement for information on the changes to the Company's Dividend Policy.
Service Providers
Polar Capital LLP has been appointed to act as the Investment Manager and AIFM
as well as to provide or procure company secretarial, marketing and
administrative services, including accounting and portfolio valuation which it
has arranged to deliver through HSBC Securities Services ("HSS").
The Company also contracts directly, on terms agreed periodically, with
several third parties for the provision of specialist services:
· HSBC Securities Services as Custodian, Depositary and
Administrator;
· Canaccord Genuity Limited were appointed as Corporate Broker from
19 January 2026. Stifel Nicolaus Europe Limited as Corporate Broker (until 19
January 2026);
· Equiniti Limited as Share Registrars;
· PricewaterhouseCoopers LLP as Independent Auditor;
· Equiniti RD:IR for Investor Relations and Shareholder Analysis;
· Quoted Data (formerly known as Marten & Co) as third-party
research providers;
· Camarco as PR advisors;
· Perivan as Designers and Printers for shareholder communications;
and
· Huguenot Limited as Website Designers and internet hosting
services.
Benchmark
The Company measures the Manager's performance against the MSCI ACWI
Financials Net Total Return Index ('the Benchmark'). The Manager does not seek
to replicate the index in constructing the Company's portfolio. The portfolio
may, therefore, diverge substantially from the constituents of the Benchmark.
Although the Company evaluates its performance against the Benchmark, this is
neither a target nor a determinant of investment strategy. The purpose of the
Benchmark is to set out a reasonable measure of performance for Shareholders.
Investment Management Company and Management of the Portfolio
As the Company is an investment vehicle for Shareholders, the Directors have
sought to ensure that the business of the Company is managed by a leading
specialist investment management team and that the investment strategy is
attractive to Shareholders. The Directors believe that a strong working
relationship with the Manager will achieve the optimum return for
Shareholders. As such, the Board and Manager operate in a supportive,
co-operative and open environment.
The Investment Manager is Polar Capital LLP ("Polar Capital") which is
authorised and regulated by the Financial Conduct Authority, to act as
Investment Manager and AIFM of the Company with sole responsibility for the
discretionary management of the Company's assets (including uninvested cash)
and sole responsibility for decisions as to the purchase and sale of
individual investments. The Manager also has responsibility for asset
allocation within the limits of the investment policy and guidelines
established and regularly reviewed by the Board, all subject to the overall
control and supervision of the Board. Polar Capital provides a team of five
specialists in the financials sector, with the portfolio jointly managed by
George Barrow, Nick Brind and Tom Dorner. The Manager has other investment
resources which support the investment team and has experience in
administering and managing other investment companies.
Fee Arrangements
Management Fee and Performance Fee
Under the terms of the Investment Management Agreement (IMA), the Manager is
entitled to a management fee together with reimbursement of reasonable
expenses incurred by it in the performance of its duties. During the year
under review, the Management and Performance Fee structure was reviewed by the
Board to ensure that the Company continued to provide value for Shareholders
and remained competitive. Until 30 June 2025 a Management fee was payable
monthly in arrears charged at a rate of 0.70% per annum of the Company's NAV.
As reported in the Half Year Report, with effect from 1 July 2025 the
Management Fee structure is as follows:
· A tiered management fee of 0.70% per annum up to £500 million of
the calculation value; and 0.65% per annum will apply to calculation value in
excess of £500m;
· the calculation value of the Company for fee calculation and for
tiering purposes (the "calculation value") comprises the sum of two elements:
(a) 50 per cent. of the NAV (on a cum income basis); and (b) 50 per cent. of
the lower of (i) the Company's market capitalisation (on a mid-market basis)
and (ii) NAV (on a cum income basis); and
· the performance fee element of the prior fee structure was
completely removed.
In accordance with the Directors' policy on the allocation of expenses between
income and capital, in each financial year 80% of the management fee payable
is charged to capital and the remaining 20% to revenue.
Termination Arrangements
The IMA may be terminated by either party giving 12 months' notice. The IMA
may be terminated earlier by the Company with immediate effect on the
occurrence of certain events, including: (i) if an order has been made or an
effective resolution passed for the liquidation of the Manager; (ii) if the
Manager ceases or threatens to cease to carry on its business; (iii) where the
Company is required to do so by a relevant regulatory authority; (iv) on the
liquidation of the Company; or (v) subject to certain conditions, where the
Manager commits a material breach of the IMA. In the event the IMA is
terminated by the Company, except in the event of termination by the Company
for certain specified causes, the base fee will be calculated pro rata for the
period up to and including the date of termination.
Performance and Key Performance Objectives
The Board appraises the performance of the Company and the Manager as the key
supplier of services to the Company against key performance indicators
('KPIs'). The objectives of the KPIs comprise both specific financial and
Shareholder related measures. These KPIs have not differed from the prior
year.
KPI Control process Outcome
The provision of investment returns to Shareholders measured by long-term NAV The Board reviews at each meeting the performance of the portfolio and The Company's NAV total return, over the year ended 30 November 2025, was
total return relative to the Benchmark and a comparator group. considers the views of the Manager and the value delivered to Shareholders 13.9%* and the Benchmark delivered 13.9% over the same period. Since inception
through NAV growth and dividends paid. the NAV total return was 240.9%* compared to 247.9% for the Benchmark and
210.4% for a comparator group.
The Board also receives monthly reports on performance against both the
Benchmark and a comparator group of open-ended investment funds. As at 30 November 2025 the Company ranks 9 out of a comparator group of 28
open ended funds within the Lipper Financial Sector universe since inception.
The achievement of a progressive dividend policy. Financial forecasts are reviewed to track income and distributions. Two interim dividends totaling 5.15p (2024: 4.70p) per ordinary share have
been paid or declared in respect of the financial year ended 30 November 2025.
The Company also paid a special dividend of 1.60p per ordinary share in August
2025.
At the AGM in 2025, Shareholders approved the cancellation of the Share
Premium Account and changes to the Company's dividend policy. With effect from
1 December 2025, the Board will aim to pay, in the absence of unforeseen
circumstances, a dividend equivalent to approximately 4% of the Company's NAV
in a given year. These will be paid quarterly at a level of 1% of NAV,
calculated on the last business day of each prior financial quarter. While the
aim to achieve dividend growth remains there is no guarantee that this can be
achieved.
Monitoring and reacting to issues created by the discount or premium of the The Board receives regular information on the composition of the share The discount of the ordinary share price to the NAV per ordinary share at the
ordinary share price to the NAV per ordinary share with the aim of reducing register including trading patterns and discount/premium levels of the year-end was 5.1%* compared with a discount of 5.5% at the year ended 30
volatility for Shareholders. Company's ordinary shares. The Board discusses and authorises the issue or buy November 2024. The average discount for the investment trust sector at 30
back of shares when appropriate. November 2025 was 9.6%.
The Board is aware of the vulnerability of a sector specialist investment During the year under review, the Company bought back 6,514,153 ordinary
trust to a change in investor sentiment towards that sector. During the year shares at an average discount of 5.2%. Following the year end 1,087,006 shares
the Board updated its public policy around Share buybacks. If, under normal have been bought back. All shares bought back have been placed into treasury
market conditions: (i) the three-month average Share price discount to NAV is for reissue to the market under the appropriate conditions.
greater than 5 per cent. on any given date; and (ii) the Share price discount
is greater than 5 per cent. on such date, the Company will buy back Shares
with the intention of reducing the discount to a level of no greater than 5
per cent. It should be noted, however, that all buybacks remain at the In June 2025, the Company held its first regular tender offer, as a result,
absolute discretion of the Board, who may seek to take advantage of market 132,912,988 shares were bought back into the treasury account for potential
conditions to purchase Shares at different discount levels. reissue into the market.
A daily NAV per share, calculated in accordance with the AIC guidelines is
issued to the London Stock exchange.
To qualify and continue to meet the requirements for Sections 1158 and 1159 of The Board receives regular financial information which discloses the current The Company has been granted investment trust status annually since its launch
the Corporation Tax Act 2010 ('investment trust status'). and projected financial position of the Company against each of the tests set on 1 July 2013 and is deemed to be granted such status for each subsequent
out in Sections 1158 and 1159. year subject to the Company continuing to satisfy the conditions of Section
1158 of the Corporation Tax Act 2010 and other associated ongoing
requirements. The Directors believe that the tests have been met in the
financial year ended 30 November 2025 and will continue to be met.
Efficient operation of the Company with appropriate investment management Annually the Board considers the services provided by the Manager, both The Board, through the Audit Committee has received and considered
resources and services from third party suppliers within a stable and risk investment and administrative, and reviews the provision of services from satisfactory the internal controls report of the Manager and other key
controlled environment. third parties including the costs of their services. suppliers including contingency arrangements to facilitate the ongoing
operations of the Company in the event of withdrawal or failure of services.
The annual operating expenses are reviewed and any non-recurring project
related expenditure approved by the Board. The ongoing charges for the year ended 30 November 2025 were 0.91% of net
assets (2024: 0.85%)*.
* Alternative Performance Measures, see below for further explanations.
PRINCIPAL RISKS AND UNCERTAINTIES
The Board is responsible for the management of risks faced by the Company.
Through delegation to the Audit Committee, it has established procedures to
manage risk, oversee the internal control framework and determine the nature
and extent of the principal risks the Company is willing to take to achieve
its long-term strategic objectives.
The established risk management process the Company follows identifies and
assesses various risks, their likelihood, and possible severity of impact,
considering both internal and external controls and factors that could provide
mitigation. A post mitigation risk impact score is then determined for each
principal risk.
The Audit Committee carries out, at least annually, a robust assessment of the
principal risks and uncertainties. With the assistance of the Manager, it
monitors identified risks and meets to discuss both long-term and emerging
risks.
During the year the Audit Committee, in conjunction with the Board and the
Manager, undertook a full review of the Company's Risk Map including the
mitigating factors and controls to reduce the impact of the risks. The
Committee continues to closely monitor these risks along with any other
emerging risks as they develop and implements mitigating actions as necessary.
The Committee is mindful of the geopolitical landscape, specifically the
ongoing military activity in Ukraine and the Middle East. Geopolitical events
such as these can have a significant impact on global financial markets, and
hence on the Company's portfolio performance. Further information on how the
Committee has assessed the Company's ability to operate as a going concern and
the Company's longer-term viability can be found in the Annual Report.
The principal risks are detailed on the following pages along with a
high-level summary of their management through mitigation over the past
financial year.
Investor Manager Performance
Principal Business Risks and Uncertainties Management of Risks through Mitigation & Controls Assessment
Failure to achieve investment objective, investment performance below agreed The Board seeks to manage the impact of such risks through regular reporting Unchanged from previous year.
benchmark objective or market/ industry average. and monitoring of investment performance against a comparator group of
open-ended funds, the Benchmark and other agreed indicators of relative
performance. In months when the Board is not scheduled to meet, it receives a
monthly report containing financial information on the Company including
gearing and cash balances.
Performance and strategy are reviewed throughout the year at regular Board
meetings where the Board can challenge the Manager. The Board also receives a
monthly commentary from the Manager in the form of factsheets for all the
specialist financial sector funds managed by Polar Capital.
The Board is committed to a clear communication programme to ensure
Shareholders understand the investment strategy. This is maintained using
monthly factsheets which have a market commentary from the Manager as well as
portfolio data, an informative website as well as annual and half year
reports. The Management Engagement Committee considers the suitability of the
Manager based on performance and other services provided.
Loss of portfolio manager or other key staff. The strength and depth of the investment team provides comfort that there is Unchanged from previous year.
not over-reliance on one person with alternative portfolio managers available
to act if needed. For each key business process roles, responsibilities and
reporting lines are clear and unambiguous. Key personnel are incentivised by
equity participation in the investment management company.
The ability to continue the dividend policy may be compromised due to poor The Board monitors the level of investment income through monthly management Decrease from previous year.
investment selection or portfolio construction leading to lower investment accounts and discussion. In the event of there being insufficient income
income, changes in underlying companies' dividend policies, regulatory during the financial year, the Company has built up revenue reserves on which
intervention, local taxes, currency exposure and other factors. This could to draw to pay dividends. Equally, in the event of the revenue reserves being
result in a lower level of dividend being paid than intended or previously fully utilised the Company may use distributable capital reserves. See notes
paid 22 to 24 in the Annual Report.
At the Annual General Meeting in 2025, Shareholders approved the cancellation
of the Share Premium Account and changes to the Company's dividend policy.
With effect from 1 December 2025 the Board has adopted an enhanced dividend
policy under which it will aim to pay, in the absence of unforeseen
circumstances, a dividend equivalent to approximately 4 per cent. of the
Company's NAV in a given year. It is anticipated that the dividends will be
paid quarterly at a level of 1 per cent. of the Company's NAV, calculated on
the last business day of each prior financial quarter. Dividends will be paid
from available revenue reserves and may be topped up, if necessary, from
distributable capital reserves.
Risk of regular five yearly tenders being taken up at a level which leaves Under the Articles of Association, the Company is required to make tender Decrease from previous year.
size of the Company unviable. offers at five-yearly intervals, the first of which took place in June 2025.
Shareholders representing 43.8% tendered their shares. The next tender offer
will commence on or before 30 June 2030. There is a risk that the size of the
Company following each tender offer may not meet the minimum size condition to
continue in existence.
The Board, Investment Manager and Corporate Broker maintain a close
relationship with Shareholders. Regular reports are provided to the Board on
communications with Shareholders and feedback received is discussed at Board
meetings. Ahead of each tender offer, further engagement will be held with
Shareholders and an assessment will be undertaken to determine Shareholders
likely to remain invested in the Company post tender.
Market, Economic and Political Risk
Principal Business Risks and Uncertainties Management of Risks through Mitigation & Controls Assessment
While the portfolio is diversified across a number of stock markets worldwide, The Board has set appropriate investment limits against which it monitors the Unchanged from previous year.
the investment mandate is focused on financials and thus the portfolio is more position of the portfolio. They include guidelines on exposures to certain
sensitive to investor sentiment and the commercial acceptance of the sector investment markets and sectors. The Board discusses with the Manager at each
than a general investment portfolio. Board meeting its views on the sector.
The Company's portfolio is exposed to risks such as market price, credit, At each Board meeting the composition and diversification of the portfolio by
liquidity, foreign currency and interest rates. The portfolio is actively geographies, sectors and capitalisations are considered along with sales and
managed. The Manager's style focuses primarily on the investment opportunity purchases of investments. Individual investments are discussed with the
of individual stocks and, accordingly, may not follow the makeup of the Manager as well as the Manager's general views on the various investment
Benchmark. This may result in returns which are not in line with the markets and the financial sector.
Benchmark.
Analytical performance data and attribution analysis is presented by the
The degree of risk which the Manager incurs in order to generate the Manager.
investment returns and the effect of gearing on the portfolio by borrowed
funds can magnify the portfolio returns per share positively or negatively.
The policies for managing the risks posed by exposure to market prices,
interest rates, foreign currency exchange rates, credit and liquidity are set
out in Note 27 to the financial statements. Shareholders have sight of the
entire portfolio and geographic exposure of investments.
There is significant exposure to the economic cycles of the markets in which The Board regularly discusses global geopolitical issues and general economic Unchanged from previous year.
the underlying investments conduct their business operations as well as the conditions and developments.
economic impact on investment markets where such investments are listed.
The impact on the portfolio from other geopolitical changes and the overall
The fluctuations of exchange rates can also have a material impact on economic and geopolitical environment in which the Company operates is
Shareholder returns. monitored through existing control systems and discussed regularly by the
Board.
Note 27 describes the risks posed by changes in foreign exchange rates. The
Manager can hedge foreign currency if it is thought appropriate at the time.
Operational and Regulatory Risk
Principal Business Risks and Uncertainties Management of Risks through Mitigation & Controls Assessment
There are risks from the failure of, or disruption to, operational and At each Board meeting the Board receives an administration report that Unchanged from previous year.
accounting systems and processes provided by the Manager including any provides details on general corporate matters including legislative and
subcontractors to which the Manager has delegated a task as well as directly regulatory developments and changes.
appointed suppliers.
The Board conducts an annual review of suppliers and their internal control
The mis-valuation of investments or the loss of assets from the custodian or reports, which includes the disaster recovery procedures of the Manager.
sub custodians could affect the NAV per share or lead to a loss of Shareholder
value. Regular reporting from the Depositary on the safe custody of the Company's
assets and the operation of control systems related to the portfolio
There is taxation risk that the Company may fail to continue as an investment reconciliation is monitored. Specialist advice is sought on taxation issues as
trust and suffer capital gains tax or fail to recover as fully as possible and when required. The Audit Committee has oversight of such work.
withholding taxes on overseas investments.
Information and guidance on legal and regulatory risks is given by the Manager
The legal and regulatory risks include failure to comply with the FCA's or professional advisers where necessary and reports are submitted to the
Prospectus Rules, Listing Rules and Disclosure Guidance and Transparency Board for discussion and, if required, any remedial action or changes. The
Rules; not meeting the provisions of the Companies Act 2006 and other UK and Board monitors new developments and changes in the regulatory environment and
overseas legislation affecting UK companies and not complying with accounting seeks to ensure that their impact on the Company is understood and complied
standards. Further risks arise from not keeping abreast of changes in with.
legislation and regulations which have in recent years been substantial.
Cyber-attack causing disruption to or failure of operational and accounting The number, severity and success rate of cyber-attacks have increased Unchanged from previous year.
systems and processes provided by the Investment Manager creating an considerably over recent years. Detailed controls are in place and the Board
unexpected event and/or adverse impact on personnel or the portfolio. proactively seeks to keep abreast of developments through updates with
representatives of the Investment Manager who undertakes meetings with
relevant service providers.
Investor Relations and Stewardship
Principal Business Risks and Uncertainties Management of Risks through Mitigation & Controls Assessment
Persistent excessive share price premium/discount to NAV. In consultation with its advisors, including the Corporate Broker, the Board Decrease from previous year.
regularly considers the level of the share price premium/discount to the NAV
and the Board reviews ways to enhance Shareholder value, including share
issuance and buy backs. The Company has in place a stated discount control
policy.
Failure to communicate effectively and timeously with investors or the Polar Capital's Sales Team and the Corporate Broker provide periodic reports Unchanged from previous year.
issuance of erroneous or misleading information. to the Board on communications with Shareholders and feedback received.
The Investment Manager also has regular interaction with clients, shareholders
and investors. This is through a combination of channels including one-to-one
meetings, presentations at retail, professional events or at Polar Capital's
Annual Investor conference.
The Board is committed to a clear communication programme to ensure
Shareholders understand the investment strategy. This is maintained using
monthly factsheets which have a market commentary from the Investment Manager
as well as portfolio data, an informative website as well as annual and half
year reports. Contact details and how to contact the Board are provided in
regulatory announcements and the Board is present at the AGM to speak to
Shareholders.
SECTION 172 OF THE COMPANIES ACT 2006
The statutory duties of the Directors are listed in s171-177 of the Companies
Act 2006. Under s172, Directors have a duty to promote the success of the
Company for the benefit of its members (its Shareholders) as a whole and in
doing so have regard to the consequences of any decision in the long term, as
well as having regard to the Company's wider stakeholders amongst other
considerations. The fulfilment of this duty not only helps the Company achieve
its Investment Objective but ensures decisions are made in a responsible and
sustainable way for Shareholders.
To ensure that the Directors are aware of, and understand, their duties, they
are provided with an induction when they first join the Board, including
details of all relevant regulatory and legal duties as a director and continue
to receive regular and ongoing updates on relevant legislative and regulatory
developments. They have continued access to the advice and services of the
Company Secretary and, when deemed necessary, the Directors can seek
independent professional advice. The Schedule of Matters Reserved for the
Board, and the Terms of Reference of its committees, are reviewed annually and
further describe Directors' responsibilities and obligations and include any
statutory and regulatory duties.
The Board seeks to understand the needs and priorities of the Company's
stakeholders and these are taken into account during discussions and as part
of the decision-making process. As an externally managed investment company,
the Company does not have any employees or customers, however the key
stakeholders and a summary of the Board's consideration and actions where
possible in relation to each group of stakeholders are described in the table
below.
Stakeholder Group How we engage with them
Shareholders The Directors have considered this duty when making the strategic decisions
during the year that affect Shareholders, including the continued appointment
of the Investment Manager and the recommendation that Shareholders vote in
favour of the resolutions for the Company to continue through and post the
tender offer including revisions to the management fees, dividend policy and
share buy back parameters, and to renew the allotment and buy back authorities
at the AGM. The Directors have engaged with and taken account of Shareholders'
interests during the year.
The Company's AGM will be held at 2:00pm on Thursday 26 March 2026 at the
offices of Polar Capital, 16 Palace Street, London SW1E 5JD. The Board
recognises that the AGM is an important event for Shareholders and the Company
and is keen to ensure that Shareholders can exercise their right to vote and
participate.
The Board believes that Shareholder engagement remains important and is keen
that the AGM be a participative event for all. Shareholders have the
opportunity to hear a pre-recorded presentation from the Manager, reviewing
the Company's performance in the year and the outlook for the year in advance
of the AGM. The presentation is uploaded to the Company's website ahead of the
AGM. In addition, Shareholders can participate in the proceedings of the AGM
live via Zoom Conference.
Shareholders are encouraged to send any questions ahead of the AGM to the
Board via the Company Secretary at cosec@polarcapital.co.uk stating the
subject matter as PCFT-AGM by Tuesday 24 March 2026.
The Chair of the Board and of the Committees, along with the Managers, will
attend the AGM and will be available to respond to questions and concerns from
Shareholders.
Should any significant votes be cast against a resolution, the Board will
engage with Shareholders and explain in its announcement of the results of the
AGM the actions it intends to take to consult Shareholders to understand the
reasons behind the votes against. Following the consultation, an update will
be published no later than six months after the AGM and the Annual Report will
detail the impact the Shareholder feedback has had on any decisions the Board
has taken and any actions or resolutions proposed.
Relations with Shareholders
The Board and the Manager seek to maintain good communications and engagement
with Shareholders through meetings, presentations, correspondence and regular
communications.
The Board regularly considers the share register of the Company and receives
regular reports from the Manager and the Corporate Broker on meetings attended
with Shareholders and any concerns that are raised in those meetings. Board
members may also attend Manager presentations to investors.
The Board reviews any correspondence from Shareholders. Shareholders can raise
any concerns directly with the Chair or the Board without intervention of the
Manager or Company Secretary. They may do this either in person at the AGM or
at other events, or in writing either via the registered office of the Company
or to the Chair's specific email address Chair.PCFT@polarcapital.co.uk.
Shareholders are kept informed by the publication of annual and half year
reports, monthly fact sheets, access to commentary from the Manager via the
Company's website and invitations to events at which the Manager presents.
The Company, through the sales and marketing efforts of the Manager,
encourages retail investment platforms to engage with underlying Shareholders
in relation to Company communications and to enable those Shareholders to cast
their votes on Shareholder resolutions; the Company however has no
responsibility over such platforms. The Board therefore encourages
Shareholders invested via platforms to regularly visit the Company's website
or to contact the Company directly to obtain copies of Shareholder
communications.
The Company has made arrangements with its registrar for Shareholders who own
their shares directly rather than through a nominee or share scheme to view
their account online at www.shareview.co.uk. Other services are available via
this website.
Outcomes and strategic decisions during the year
Corporate Action
Tender Offer
Ahead of the Tender Offer to Shareholders in 2025, Directors engaged with the
Manager, Polar Sales and the Company's Brokers to understand Shareholder
views, the proposed mechanisms and timetable for the Tender. Shareholders
representing 43.8% of the Company's issued share capital took the opportunity
to tender their shares at close to NAV; these shares (132,912,988 ordinary
shares) were placed in treasury. This was below the minimum continuation
condition set out in the tender offer circular.
Fees
As mentioned previously, the Board undertook a review of the Management fees
at the time of the tender offer to ensure that the Company continues to
provide value for Shareholders and remains competitive.
Further details on the changes to the fee structure that came into effect on 1
July 2025 can be found in the Annual Report.
Buybacks
During the year the Board updated its public policy around share buy backs.
If, under normal market conditions: (i) the three-month average Share price
discount to NAV is greater than 5 per cent. on any given date; and (ii) the
Share price discount is greater than 5 per cent. on such date, the Company
will buy back Shares with the intention of reducing the discount to a level of
no greater than 5 per cent. It should be noted, however, that all buybacks
remain at the absolute discretion of the Board, who may seek to take advantage
of market conditions to purchase Shares at different discount levels. The
Company bought back a total of 6,514,153 shares during the year under review.
1,087,006 ordinary shares were bought back following the year end.
Manager Through the Board meeting cycle, regular updates and the work of the
Management Engagement Committee in reviewing the services of the Manager
annually, the Board is able to safeguard Shareholder interests by:
• Ensuring excessive risk is not undertaken in the pursuit of
investment performance;
• Ensuring adherence to the Investment Policy;
• Ensuring adherence to the Investment Management Agreement and
reviewing the agreed management and performance fees;
• Ensuring compliance with statutory legal requirements,
regulations and other advisory guidance such as consumer duty and aspects of
operational resilience; and
• Reviewing the Manager's decision making and consistency of its
investment process.
Maintaining a close and constructive working relationship with the Manager is
crucial as the Board and the Manager both aim to continue to deliver
consistent, long-term returns in line with the Investment Objective. The
culture which the Board maintains to achieve this involves encouraging open
discussion with the Manager, ensuring that the interests of Shareholders and
the Manager are aligned, providing constructive challenge and making
Directors' experience available to support the Manager. This culture is
aligned with the collegiate and meritocratic culture which Polar Capital has
developed and maintains.
Outcomes and strategic decisions during the year
ESG
The Board continued to engage with the Investment Manager to oversee how ESG
has been integrated into the overall house methodology as well as the bespoke
financials team investment approach, engagement and decision making. The Board
also receives information on how ESG affects Polar Capital as a business and
the financials team.
Management
On the recommendation of the Management Engagement Committee the Board has
resolved to the continue the appointment of the Manager on the terms agreed
within the Investment Management Agreement.
Investee Companies The Board has instructed the Manager to consider the published corporate
governance policies of the companies in which they invest.
The Board has also considered the Investment Manager's Stewardship Code and
Proxy Voting Policy. The Voting Policy is for the Investment Manager to vote
at all general meetings of companies in favour of resolutions proposed by the
management where it believes that the proposals are in the interests of
Shareholders. However, in exceptional cases, where the Investment Manager
believes that a resolution would be detrimental to the interests of
Shareholders or the financial performance of the Company, appropriate
notification will be given and abstentions or a vote against will be lodged.
The Manager voted at 60 company meetings over the year ended 30 November 2025,
with 40.6% of meetings having at least one vote against, withheld or
abstained. The Manager reports to the Board, when requested, on the
application of the Stewardship Code and Voting Policy. The Manager's
Stewardship Code and Voting Policy can be found on the Manager's website in
the Corporate Governance section (www.polarcapital.co.uk). Further information
on how the Manager considers ESG in its engagement with investee companies can
be found in the ESG Report in the Annual Report.
Outcomes and strategic decisions during the year
The Board receives information on the ratings of investee companies and can
use this as a tool to inform discussions with the Manager during Board
meetings.
Service Providers The Directors oversee the Company's service providers through the annual cycle
of reporting and due diligence meetings or site visits undertaken by the
Manager. This engagement is undertaken with the aim of having effective
oversight of delegated services, seeking to improve the processes for the
benefit of the Company and to understand the needs and views of the Company's
service providers, as stakeholders in the Company. Further information on the
Board's engagement with service providers is included in the Corporate
Governance Statement and the Report of the Audit Committee. During the year
under review, due diligence meetings have been undertaken by the Investment
Manager and where possible, service providers have joined meetings to present
their reports directly to the Board or the Audit Committee as appropriate.
Outcomes and strategic decisions during the year
The reviews of the Company's service providers have been positive, and the
Directors believe their continued appointment is in the best interests of
Shareholders. The accounting and administration services of HSBC Securities
Services (HSS) are contracted through Polar Capital and provided to the
Company under the terms of the IMA. However, the Board continues to conduct
due diligence service reviews in conjunction with the Company Secretary and is
satisfied that the services received continue to be of a satisfactory
standard. Following the year end the Board were informed that the Company's
corporate broker, Stifel Nicholaus Europe Limited, would be ceasing to provide
a market making service in the UK. A corporate broker beauty parade was
undertaken by the Board and Canaccord Genuity were appointed as Corporate
Broker on 19 January 2026.
Proxy Advisors The support of the major institutional investors and proxy adviser agencies is
important to the Directors, as the Company seeks to retain a reputation for
high standards of corporate governance, which the Directors believe
contributes to the long-term sustainable success of the Company. The Directors
consider the recommendations of these various proxy voting agencies when
contemplating decisions that will affect Shareholders and when reporting to
Shareholders through the Half Year and Annual Reports.
Recognising the principles of stewardship, as promoted by the UK Stewardship
Code, the Board welcomes engagement with all its investors. The Board
recognises that the views, questions from, and recommendations of many
institutional investors and proxy adviser agencies provide a valuable feedback
mechanism and play a part in highlighting evolving shareholders' expectations
and concerns.
Outcomes and strategic decisions during the year
During the year, the Chair and other representatives of the Company have
engaged with the stewardship teams of some larger investors to understand and
address their expectations in respect of the continuation of the Company.
Prior to AGMs, the Company engages with proxy advisor agencies to fact check
their advisory reports and clarify any areas or topics contained within the
report. This aims to ensure that whilst the proxy advisory reports provided to
Shareholders are objective and independent, the Company's actions and
intentions are represented as clearly as possible to assist with Shareholders'
decision making when considering the resolutions proposed at the AGM.
AIC The Company is a member of the AIC and has supported various lobbying
activities. Representatives of the Manager sit on a variety of forums run by
the AIC which aids development and understanding of new policies and
procedures. The Directors may cast votes in the AIC Board Elections each year
and regularly attend AIC events.
Approved by the Board on 18 February 2026.
By order of the Board
Kelly Nice
Polar Capital Secretarial Services Limited
Company Secretary
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Financial Statements for each
financial year. Under that law the Directors have prepared the Company's
Financial Statements in accordance with the UK-adopted International
Accounting Standards (UK-adopted IAS) and applicable law. Additionally, the
Financial Conduct Authority's Disclosure Guidance and Transparency Rules
require the Directors to prepare the Financial Statements in accordance with
UK-adopted IAS.
Under company law, the Directors must not approve the Financial Statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of the Company for that
period. In preparing the financial statements, the Directors are required to:
• select suitable accounting policies and then apply them
consistently;
• state whether they have been prepared in accordance with
UK-adopted IAS, subject to any material departures disclosed and explained in
the Financial Statements;
• make judgements and accounting estimates that are reasonable and
prudent; and
• prepare the Financial Statements on the going concern basis
unless it is inappropriate to presume that the Company will continue in
business.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that the Financial Statements and the Directors'
Remuneration Report comply with the Companies Act 2006. They are responsible
for such internal controls as they determine is necessary to enable the
preparation of Financial Statements that are free from material misstatement,
whether due to fraud or error, and have general responsibility for taking such
steps as are reasonably open to them to safeguard the assets of the Company
and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the Directors are also responsible for
preparing a Strategic Report, Directors' Report, Directors' Remuneration
Report and Corporate Governance Statement that comply with that law and those
regulations.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Directors' confirmations
The Directors consider that the annual report and financial statements, taken
as a whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company's position and performance,
business model and strategy.
Each of the directors, whose names and functions are listed in the Strategic
Report confirm that, to the best of their knowledge:
• the Company Financial Statements, which have been prepared in
accordance with the applicable set of accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit/loss of
the Company; and
• the Strategic Report includes a fair review of the development
and performance of the business and the position of the Company, together with
a description of the principal risks and uncertainties that it faces.
In the case of each director in office at the date the Directors' Report is
approved:
• so far as the director is aware, there is no relevant audit
information of which the Company's auditors are unaware; and
• they have taken all the steps that they ought to have taken as a
director in order to make themselves aware of any relevant audit information
and to establish that the Company's auditors are aware of that information.
Simon Cordery
Chair
18 February 2026
Statement of Comprehensive Income
For the year ended 30 November 2025
Notes Year ended 30 November 2025 Year ended 30 November 2024
Revenue Capital Total Revenue Capital Total
return return return return return return
£'000 £'000 £'000 £'000 £'000 £'000
Investment income 3 16,172 - 16,172 19,067 - 19,067
Other operating income 4 1,438 - 1,438 1,505 - 1,505
Gains on investments held at fair value 5 - 46,207 46,207 - 156,916 156,916
Losses on derivatives - (669) (669) - (251) (251)
Other currency gains/(losses) 6 - 1,165 1,165 - (2,312) (2,312)
Total income 17,610 46,703 64,313 20,572 154,353 174,925
Expenses
Investment management fee 7 (712) (2,849) (3,561) (772) (3,088) (3,860)
Other administrative expenses 8 (1,037) (59) (1,096) (798) (46) (844)
Total expenses (1,749) (2,908) (4,657) (1,570) (3,134) (4,704)
Profit before finance costs and tax 15,861 43,795 59,656 19,002 151,219 170,221
Finance costs 9 (702) (2,806) (3,508) (799) (3,196) (3,995)
Profit before tax 15,159 40,989 56,148 18,203 148,023 166,226
Tax 10 (1,574) 46 (1,528) (1,988) 337 (1,651)
Net profit for the year and total comprehensive income
13,585 41,035 54,620 16,215 148,360 164,575
Earnings per ordinary share (pence) 11 5.60 16.91 22.51 5.31 48.62 53.93
The total column of this statement represents the Company's Statement of
Comprehensive Income, prepared in accordance with UK-adopted International
Accounting Standards.
The revenue return and capital return columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies.
The amounts dealt with in the Statement of Comprehensive Income are all
derived from continuing activities.
The notes to follow form part of these Financial Statements.
Statement of Changes in Equity
For the year ended 30 November 2025
Notes Year ended 30 November 2025
Called up share capital Capital redemption reserve Share premium reserve Special distributable reserve Capital reserves Revenue reserve Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Total equity at 1 December 2024 16,588 251 311,369 96,079 191,867 13,524 629,678
Total comprehensive income:
Profit for the year ended 30 November 2025 - - - - 41,035 13,585 54,620
Transactions with owners, recorded directly to equity:
Cancellation of share premium - - (311,369) 311,369 - - -
Shares bought back into treasury pursuant to tender offer (including costs) 15 - - - (280,368) - - (280,368)
Shares bought back and held in treasury 15 - - - (13,814) - - (13,814)
Equity dividends paid 12 - - - - - (13,824) (13,824)
Total equity at 30 November 2025 16,588 251 - 113,266 232,902 13,285 376,292
Notes Year ended 30 November 2024
Called up share capital Capital redemption reserve Share premium reserve Special distributable reserve Capital reserves Revenue reserve Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Total equity at
1 December 2023 16,588 251 311,369 105,117 43,507 11,366 488,198
Total comprehensive income:
Profit for the year ended 30 November 2024
- - - - 148,360 16,215 164,575
Transactions with owners, recorded directly to equity:
Shares bought back and held in 15
treasury - - - (9,038) - - (9,038)
Equity dividends paid 12 - - - - - (14,057) (14,057)
Total equity at 16,588 251 311,369 96,079 191,867 13,524 629,678
30 November 2024
The notes to follow form part of these Financial Statements.
Balance Sheet
As at 30 November 2025
Notes 30 November 2025 30 November 2024
£'000 £'000
Non-current assets
Investments held at fair value through profit or loss 13 402,324 659,943
Current assets
Cash and cash equivalents 14 13,665 28,178
Fair value of open derivative contracts 13 560 728
Receivables 9,797 22,873
24,022 51,779
Total assets 426,346 711,722
Current liabilities
Bank overdraft 14 (415) -
Fair value of open derivative contracts 13 - (378)
Payables (9,472) (2,335)
Bank loan (40,000) (78,935)
(49,887) (81,648)
Non-current liabilities
Indian capital gains tax provision (167) (396)
(167) (396)
Net assets 376,292 629,678
Equity attributable to equity shareholders
Called up share capital 15 16,588 16,588
Capital redemption reserve 251 251
Share premium reserve - 311,369
Special distributable reserve 113,266 96,079
Capital reserves 232,902 191,867
Revenue reserve 13,285 13,524
Total equity 376,292 629,678
Net asset value per ordinary share (pence) 16 229.74 207.66
The Financial Statements, including the associated notes, were approved and
authorised for issue by the Board of Directors on 18 February 2026 and signed
on its behalf by:
Simon Cordery
Chair
The notes to follow form part of these Financial Statements.
Registered number: 8534332
Cash Flow Statement
For the year ended 30 November 2025
Notes Year ended Year ended
30 November 2025 30 November 2024
£'000 £'000
Cash flows from operating activities
Profit before tax 56,148 166,226
Adjustment for non-cash items:
Profit on investments held at fair value through profit or loss (46,207) (156,916)
Losses on derivative investments 669 251
Scrip dividends received (42) -
Amortisation on fixed interest securities (22) (141)
Adjusted profit before tax 10,546 9,420
Adjustments for:
Purchases of investments, including transaction costs (532,430) (670,314)
Sales of investments, including transaction costs 854,805 667,632
Purchases of derivative financial instruments (3,544) (3,621)
Proceeds on disposal of derivative financial instruments 4,550 3,210
Decrease/(increase) in receivables 1,894 (548)
(Decrease)/increase in payables (362) 167
Indian capital gains tax (411) (199)
Greek sales tax (14) -
Overseas tax deducted at source (1,178) (1,450)
Net cash generated from operating activities 333,856 4,297
Cash flows from financing activities
Shares repurchased from tender offer into treasury (including costs) (280,368) -
Shares repurchased into treasury (13,814) (9,227)
Loan repaid (39,181) -
Loan drawn - 10,000
Exchange gains on the loan facility (1,597) (96)
Equity dividends paid 12 (13,824) (14,057)
Net cash used in financing activities (348,784) (13,380)
Net decrease in cash and cash equivalents (14,928) (9,083)
Cash and cash equivalents at the beginning of the year 28,178 37,261
Cash and cash equivalents at the end of the year 14 13,250 28,178
The notes to follow form part of these Financial Statements.
Notes to the Financial Statements
For the year ended 30 November 2025
1 General Information
Polar Capital Global Financials Trust plc is a public limited company
registered in England and Wales whose shares are traded on the London Stock
Exchange.
The principal activity of the Company is that of an investment trust company
within the meaning of Section 1158/1159 of the Corporation Tax Act 2010 and
its investment approach is detailed in the Strategic Report.
The Board has determined that Sterling is the Company's functional currency
and the presentational currency of the financial statements because it is the
currency which is most relevant to the majority of the Company's Shareholders
and creditors and is the currency in which the majority of the Company's
operating expenses are paid. All figures are rounded to the nearest thousand
pounds (£'000) except as otherwise stated.
2 Accounting Policies
The material principal accounting policies, which have been applied
consistently for all years presented, are set out below:
(a) Basis of Preparation
The Group and Company's Financial Statements have been prepared and approved
by the Directors in accordance with UK-adopted international accounting
standards ("UK-adopted IAS") and with the requirements of the Companies Act
2006 as applicable to companies reporting under those standards.
The financial statements have been prepared on a going concern basis under the
historical cost convention, as modified by the revaluation of investments and
derivative financial instruments at fair value through profit or loss.
Where presentational guidance set out in the Statement of Recommended Practice
(SORP) for investment trusts issued by the Association of Investment Companies
(AIC) in July 2022 is consistent with the requirements of UK-adopted IAS, the
Directors have sought to prepare the financial statements on a basis compliant
with the recommendations of the SORP.
The financial position of the Company as at 30 November 2025 is shown in the
balance sheet above. As at 30 November 2025 the Company's total assets
exceeded its total liabilities by a multiple of over 8.5. The assets of the
Company consist mainly of securities that are held in accordance with the
Company's Investment Policy and these securities are readily realisable. The
Directors have considered a detailed assessment of the Company's ability to
meet its liabilities as they
fall due. The assessment took account of the Company's current financial
position, its cash flows and its liquidity position. In addition to the
assessment the Company also considered its loan repayment obligations in
January 2026 and carried out stress testing, which used a variety of falling
parameters to demonstrate the effects on the Company's share price and net
asset value. In light of the results of these tests, the Company's cash
balances, and the liquidity position, the Directors consider that the Company
has adequate financial resources to enable it to continue in operational
existence for at least 12 from the date of issuance of these Financial
Statements. Accordingly, the Directors believe that it is appropriate to
continue to adopt the going concern basis in preparing the Company's Financial
Statements.
(b) Presentation of the Statement of Comprehensive Income
In order to better reflect the activities of an investment trust company and
in accordance with the guidance set out by the AIC, supplementary information
which analyses the Statement of Comprehensive Income between items of a
revenue and capital nature has been presented alongside the Statement of
Comprehensive Income. The result presented in the revenue return column is the
measure the Directors believe appropriate in assessing the Company's
compliance with certain requirements set out in Section 1158 of the
Corporation Tax Act 2010.
(c) Income
Dividends receivable from equity shares are taken to the revenue return column
of the Statement of Comprehensive Income on an ex-dividend basis.
Special dividends are recognised on an ex-dividend basis and may be considered
to be either revenue or capital items. The facts and circumstances are
considered on a case-by-case basis before a conclusion on appropriate
allocation is reached.
Where the Company has received dividends in the form of additional shares
rather than in cash, the amount of the cash dividend foregone is recognised in
the revenue return column of the Statement of Comprehensive Income. Any excess
in value of shares received over the amount of cash dividend foregone is
recognised in the capital return column of the Statement of Comprehensive
Income.
The fixed returns on debt securities and non-equity shares are recognised
under the effective interest rate method.
Bank interest is accounted for on an accrual basis. Interest outstanding at
the year end is calculated on a time apportionment basis using market rates of
interest.
(d) Written Options
The Company may write exchange-traded options with a view to generating
income. This involves writing short-dated covered call options and put
options. The use of financial derivatives is governed by the Company's
policies, as approved by the Board.
These options are recorded initially at fair value, based on the premium
income received, and are then measured at subsequent reporting dates at fair
value. Changes in the fair value of the options are recognised in the capital
return for the year.
The option premiums are recognised evenly over the life of the option and
shown in the revenue return, with an appropriate amount shown in the capital
return to ensure the total return reflects the overall change in the fair
value of the options.
Where an option is exercised, any balance of the premium is recognised
immediately in the revenue return with a corresponding adjustment in the
capital return based on the amount of the loss arising on exercise of the
option.
(e) Expenses and Finance Costs
All expenses, including the management fee, are accounted for on an accrual
basis.
Expenses are allocated wholly to the revenue column of the Statement of
Comprehensive Income except as follows:
Expenses are charged to the capital column of the Statement of Comprehensive
Income where a connection with the maintenance or enhancement of the value of
investments can be demonstrated. In this respect the investment management
fees have been charged to the Statement of Comprehensive Income in line with
the Board's expected long-term split of returns, in the form of capital gains
and income from the Company's portfolio. As a result, 20% of the investment
management fees are charged to the revenue account and 80% charged to the
capital account of the Statement of Comprehensive Income.
Finance costs are calculated using the effective interest rate method and are
accounted for on an accruals basis and, in line with the management fee
expense, are charged 20% to the revenue account and 80% to the capital account
of the Statement of Comprehensive Income.
The research costs relate solely to specialist financial research and are
accounted for on an accruals basis. They are allocated 20% to revenue and 80%
to capital in line with the expected long-term split of revenue and capital
return from the Company's investment portfolio.
The research costs relate solely to specialist financial research and are
accounted for on an accruals basis. They are allocated 20% to revenue and 80%
to capital in line with the expected long-term split of revenue and capital
return from the Company's investment portfolio.
(f) Tax
The tax expense represents the sum of the overseas withholding tax deducted
from investment income, tax currently payable and deferred tax.
The tax currently payable is based on the taxable profits for the year ended
30 November 2025. Taxable profit differs from net profit as reported in the
Statement of Comprehensive Income because it excludes items of income or
expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Company's liability for
current tax is calculated using tax rates that have been enacted or
substantively enacted at the balance sheet date.
In line with the recommendations of the SORP, the allocation method used to
calculate tax relief on expenses presented against capital returns in the
supplementary information in the Statement of Comprehensive Income is the
"marginal basis". Under this basis, if taxable income is capable of being
offset entirely by expenses presented in the revenue return column of the
Statement of Comprehensive Income, then no tax relief is transferred to the
capital return column.
Deferred tax is the tax expected to be payable or recoverable on temporary
differences between the carrying amounts of assets and liabilities in the
financial statements and the corresponding tax bases used in the computation
of taxable profit, and is accounted for using the balance sheet liability
method. Deferred tax liabilities are recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised.
Investment trusts which have approval as such under Section 1158 of the
Corporation Tax Act 2010 are not liable for taxation on UK capital gains.
The Company is liable to Indian capital gains tax under Section 115 AD of the
Indian Income Tax Act 1961. The Indian capital gains tax provision represents
an estimate of the amount of tax payable by the Company. Tax amounts payable
may differ from this provision depending on when the Company disposes of its
investments. The current provision for Indian capital gains tax is calculated
based on the long term (securities held more than one year) or short term
(securities held less than one year) nature of the investments and the
applicable tax rate at the year end. Currently, the short-term tax rate is 20%
and the long-term tax rate is 12.5%. The estimated tax charge is subject to
regular review including a consideration of the likely period of ownership,
tax rates and market valuation movements. The provision at the year end is
recognised in the Balance Sheet and the year-on- year movement in the
provision is recognised in the Statement of Comprehensive Income.
The carrying amount of deferred tax assets is reviewed at each balance sheet
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or when the asset is realised based on
tax rates that have been enacted or substantively enacted at the balance sheet
date.
Deferred tax is charged or credited in the Statement of Comprehensive Income,
except when it relates to items charged or credited directly to equity, in
which case the deferred tax is also dealt with in equity.
(g) Investments Held at Fair Value Through Profit or Loss
When a purchase or sale is made under contract, the terms of which require
delivery within the timeframe of the relevant market, the investments
concerned are recognised or derecognised on the trade date and are initially
measured at fair value.
On initial recognition the Company has designated all of its investments as
held at fair value through profit or loss as defined by UK-adopted IAS. All
investments are measured at subsequent reporting dates at fair value, which is
either the bid price or the last traded price, depending on the convention of
the exchange on which the investment is quoted.
Written and purchased options are valued at fair value using quoted bid
prices.
Index futures are valued at the difference between exchange settlement prices
and inception prices.
All investments, classified as fair value through profit or loss, are further
categorised into the fair value hierarchy detailed in the Annual Report.
Changes in fair value of all investments and derivatives held at fair value
are recognised in the capital return column of the Statement of Comprehensive
Income. Gains or losses on derivative financial instruments are treated as
capital or revenue depending on the motive and circumstances of the
transaction. Where positions are undertaken to protect or enhance capital, the
returns are capital and where they are generating or protecting revenue, the
returns are revenue.
In respect of unquoted investments, or where the market for a financial
instrument is not active, fair value is established by using various valuation
techniques, in accordance with the International Private Equity and Venture
Capital ("IPEVC") Valuation Guidelines - Edition December 2022. These may
include using reference to recent arm's length market transactions between
knowledgeable, willing parties, if available, reference to recent rounds of
re-financing undertaken by investee companies involving knowledgeable parties,
reference to the current fair value of another instrument that is
substantially the same or a relevant comparable.
(h) Receivables
Receivables are initially recognised at fair value and subsequently measured
at amortised cost. Receivables do not carry any interest and are short-term in
nature and are accordingly stated at their nominal value (amortised cost) as
reduced by appropriate allowances for estimated irrecoverable amounts.
(i) Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are
short-term, maturity of three months or less, highly liquid investments that
are readily convertible to known amounts of cash.
(j) Dividends Payable
Interim dividends payable to Shareholders are recognised in the financial
statements in the period in which they are paid.
(k) Payables
Payables are not interest-bearing and are initially valued at fair value and
subsequently stated at their nominal value (amortised cost).
(l) Bank Loans
Interest-bearing bank loans are initially recognised at cost, being the
proceeds received net of direct issue costs, and subsequently at amortised
cost. The amounts falling due for repayment within one year are included under
current liabilities and more than one year under non-current liabilities in
the Balance Sheet.
(m) Foreign Currency Translation
Transactions in foreign currencies are translated into Sterling at the rate of
exchange ruling on the date of each transaction. Monetary assets, monetary
liabilities and equity investments in foreign currencies at the balance sheet
date are translated into Sterling at the rates of exchange ruling on that
date.
Realised profits or losses on exchange, together with differences arising on
the translation of foreign currency assets or liabilities, are taken to the
capital return column of the Statement of Comprehensive Income.
Foreign exchange gains and losses arising on investments held at fair value
are included within changes in fair value.
(n) Share Capital
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issue of new ordinary shares or options are shown in
equity, as a deduction, net of tax, from the proceeds.
(o) Capital Reserves
Capital reserve arising on investments sold includes:
- gains/losses on disposal of investments;
- exchange differences on currency balances; and
- other capital charges and credits charged to this account in accordance with
the accounting policies above.
Capital reserve arising on investments held includes:
- increases and decreases in the valuation of investments held at the balance
sheet date.
All of the above are accounted for in the Statement of Comprehensive Income.
When making a distribution to Shareholders, the Directors determine the
profits available for distribution by reference to the 'Guidance on realised
and distributable profits under the Companies Act 2006' issued by the
Institute of Chartered Accountants in England and Wales and the Institute of
Chartered Accountants of Scotland in April 2017. The availability of
distributable reserves in the Company is dependent on those dividends meeting
the definition of qualifying consideration within the guidance and on the
available cash resources of the Company and other accessible sources of funds.
The distributable reserves are therefore subject to any future restrictions or
limitations at the time such distribution is made.
(p) Repurchase of Ordinary Shares (including those held in treasury)
Where applicable, the costs of repurchasing Ordinary Shares including related
stamp duty and transaction costs are taken directly to equity and reported
through the Statement of Changes in Equity as a charge on the special
distributable reserve. Share repurchase transactions are accounted for on a
trade date basis.
The nominal value of ordinary share capital repurchased and cancelled is
transferred out of called up share capital and into the capital redemption
reserve.
Where shares are repurchased and held in treasury, the transfer to capital
redemption reserve is made if and when such shares are subsequently cancelled.
Where the shares held in treasury are reissued, the amount of the sales
proceed up to the repurchased cost of those shares is transferred back into
special distributable reserve, the excess of the sales proceeds over the
repurchased cost is transferred to share premium.
(q) Share Issue Costs
Where applicable, costs incurred directly in relation to the issue of new
shares together with additional share listing costs have been deducted from
the share premium reserve.
(r) Segmental Reporting
Under IFRS 8 Operating Segments, operating segments are considered to be the
components of an entity about which separate financial information is
available that is evaluated regularly by the chief operating decision maker in
deciding how to allocate resources and in assessing performance. The chief
operating decision maker has been identified as the Investment Manager (with
oversight from the Board).
The Directors are of the opinion that the Company has only one operating
segment and as such no distinct segmental reporting is required.
(s) Key Estimates and Judgements
The preparation of financial statements in conformity with UK-adopted IAS
requires management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets, liabilities,
income and expenses. Estimates and assumptions used in preparing the financial
statements are reviewed on an ongoing basis and are based on historical
experience and various other factors that are believed to be reasonable under
the circumstances. The results of these estimates and assumptions form the
basis of making judgements about carrying values of assets and liabilities
that are not readily apparent from other sources.
The key judgements and sources of estimation uncertainty that have a
significant risk of causing material adjustment to the carrying amounts of
assets and liabilities and expenses in future periods are as follows:
Valuation of Level 3 Investments
Investments valued using valuation techniques include unlisted financial
investments, which by their nature, do not have an externally quoted price
based on regular trades.
The valuation techniques used may include the techniques described in note
2(g). When determining the inputs into the valuation techniques used, priority
is given to publicly available prices from independent sources when available,
but overall the source of pricing is chosen with the objective of arriving at
a fair value measurement that reflects the price at which an orderly
transaction would take place between market participants at the balance sheet
date.
(t) New and revised accounting Standards
There were no new UK-adopted IAS or amendments to UK-adopted IAS applicable to
the current year which had any significant impact on the Company's financial
statements.
i) The following new or amended standards became effective for the current
annual reporting period and the adoption of the standards and interpretations
have not had a material impact on the Financial Statements of the
Company.
Standards & Interpretations Effective for periods commencing on or after
Amendments to IAS 1 Presentation of Financial Statements The amendments clarify that only covenants with which an entity must comply on 1 January 2024
or before the reporting date will affect a liability's classification as
- Non-current liabilities with Covenants current or non-current and the disclosure requirement in the financial
statements for the risk that non-current liabilities with covenant could
- Deferral of Effective Date Amendment (published 15 July 2020) become repayable within twelve months.
Classification of Liabilities as Current or Non-Current
(Amendments to IAS 1) (publicised 23 January
2020)
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) The amendments address the disclosure requirements to enhance the transparency 1 January 2024
of supplier finance arrangements and their effects on a company's liabilities,
cash flows and exposure to liquidity risk.
ii) At the date of authorisation of the Company's Financial Statements, the
following relevant standards that potentially impact the Company are in issue
but are not yet effective and have not been applied in the Financial
Statements:
Standards & Interpretations Effective for periods commencing on or after
Lack of Exchangeability (Amendments to IAS 21) The amendments specify how to assess whether a currency is exchangeable and 1 January 2025
how to determine a spot exchange rate if it is
not.
Annual Improvements to IFRS Accounting Standards - Volume 11 The amendments clarify the requirements for: Hedge accounting by a first-time 1 January 2026
adopter (IFRS 1 First-time Adoption of International Financial Reporting
Standards); Gain or loss on derecognition (IFRS 7 Financial Instruments:
Disclosures); Transaction price (IFRS 9 Financial Instruments); Derecognition
of lease liabilities (IFRS 9); Determination of a 'de facto agent' (IFRS 10
Consolidated Financial Statements) and
Cost method (IAS 7 Statement of Cash Flows).
Amendments to IFRS 9 and IFRS 7 - The amendments address two of the issues identified during the 1 January 2026
post-implementation review of IFRS 9, being the derecognition of a financial
Amendments to the Classification and Measurement of liability settled through electronic transfer and the classification of
financial assets, it also introduces new and amended disclosure
Financial Instruments requirements.
The Directors expect that the adoption of the standards listed above will have
either no impact or that any impact will not be material on the financial
statements of the Company in future
periods.
3 Investment Income
Year ended Year ended
30 November 2025 30 November 2024
£'000 £'000
Revenue:
UK dividends 2,143 2,933
Overseas dividends 12,238 13,182
Scrip dividends 42 -
Interest on debt securities 1,749 2,952
Total investment income 16,172 19,067
Included within income from investments is £505,000 (2024: £1,460,000) of
special dividends classified as revenue in nature in accordance with note 2
(c). No special dividends have been recognised in capital (2024: nil).
4 Other Operating Income
Year ended Year ended
30 November 2025 £'000 30 November 2024
£'000
Bank interest 1,426 1,505
Other interest 12 -
Total other operating income 1,438 1,505
5 Gains on Investments Held at Fair Value
Year ended Year ended
30 November 2025 30 November 2024
£'000 £'000
Net gains on disposal of investments at historic cost 97,755 68,405
Less fair value adjustments in earlier years (97,452) (21,042)
Gains based on carrying value at previous balance sheet date 303 47,363
Valuation gains on investments held during the year 45,904 109,553
46,207 156,916
6 Other Currency Gains/(Losses)
Year ended Year ended
30 November 2025 30 November 2024
£'000 £'000
Exchange losses on currency balances (432) (2,408)
Exchange gains on the loan facility 1,597 96
1,165 (2,312)
7 Investment Management
Year ended Year ended
30 November 2025 30 November 2024
£'000 £'000
Management fee
- charged to revenue 712 772
- charged to capital 2,849 3,088
Investment management fee payable to Polar Capital LLP 3,561 3,860
Management fees are allocated 20% to revenue and 80% to capital.
A revised Investment Management Agreement was put in place with the Manager
which took effect on 1 July 2025. The new base management fee is structured
over two tiers, and the performance fee has been removed entirely. Details of
the revised terms of the Investment Management Agreement are disclosed in the
Strategic Report in the Annual Report.
8 Other Administrative Expenses (including VAT where appropriate)
Year ended Year ended
30 November 2025 30 November 2024
£'000 £'000
Directors' fees(1) 149 142
Directors' NIC 17 15
Auditors' remuneration - for audit of the Financial Statements(2) 56 54
Depositary fee(3) 33 37
HSBC administration fee(3) 233 206
Registrar fee 38 38
Custody and other bank charges(4) 81 77
UKLA and LSE listing fees(5) 68 57
Legal & professional fees(6) 79 3
AIC fees 23 21
Directors' and officers' liability insurance 20 19
Corporate broker's fee(7) 54 16
Marketing expenses(8) 132 72
Research costs - allocated to revenue(9) 15 11
Shareholder communications 21 22
Other expenses(10) 18 8
Total other administrative expenses 1,037 798
allocated to revenue
Research costs - allocated to capital(9) 59 46
Total other administrative expenses 1,096 844
1 Full disclosure is given in the Directors' Remuneration Report in the
Annual Report
2 In June 2025, the Company engaged PwC to perform agreed upon
procedures on the tender price calculation, such service was deemed to be a
non-audit service for which a fee of £19,000
was paid. The amount has been charged to special distributable reserve as
defined under IAS 32. The base audit fee for the statutory audit in the
current year was £56,175 (2024: £53,500).
3 Fees are determined on the pre-approved rate card with HSBC.
4 Fee is based on the value of the assets and geographical activity and
determined on the pre-approved rate card with HSBC.
5 Fees are based on the market capitalisation of the Company which has
risen over the last invoice period.
6 Includes legal cost associated to the tender offer of the Company and
RBS credit facility legal fee.
7 Prior year annual fee was offset by the commission credit on shares
repurchases.
8 Includes bespoke marketing budget of £50,000 (2024: £50,000) and
additional marketing budget of £50,000 relating to the tender offer.
9 Research costs (which applied from 3 January 2018) payable by the
Company relate solely to specialist financial research. The budget for the
year is $100,000 (2024: $75,000).
10 2025 includes external third party Board evaluation cost.
Ongoing charges represents the total expenses of the Company, excluding
finance costs and tax, expressed as a percentage of the average daily net
asset value, in accordance with AIC guidance.
The ongoing charges ratio for the year ended 30 November 2025 was 0.91% (2024:
0.85%). See Alternative Performance Measures below.
9 Finance Costs
Year ended 30 November 2025 Year ended 30 November 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Interest on loans and overdrafts 688 2,750 3,438 781 3,123 3,904
Loan arrangement fees 14 56 70 18 73 91
702 2,806 3,508 799 3,196 3,995
Finance costs are allocated 20% to revenue and 80% to capital.
10 Tax
a) Analysis of tax charge/(credit) for the year:
Year ended 30 November 2025 Year ended 30 November 2024
Revenue Capital Total Revenue Capital Total
return return return return return return
£'000 £'000 £'000 £'000 £'000 £'000
Overseas tax 1,332 - 1,332 1,319 - 1,319
Tax relief in capital 242 (242) - 669 (669) -
Withholding tax recovered - 182 182 - 332 332
Indian capital gains tax - 14 14 - - -
Total tax charge/(credit) for the year (see note 10b) 1,574 (46) 1,528 1,988 (337) 1,651
b) Factors affecting tax charge/(credit) for the year:
The charge/(credit) for the year can be reconciled to the profit before tax
per the Statement of Comprehensive Income as follows:
Year ended 30 November 2025 Year ended 30 November 2024
Revenue return Capital return Total return Revenue return Capital return Total return
£'000 £'000 £'000 £'000 £'000 £'000
Profit before tax 15,159 40,988 56,147 18,203 148,023 166,226
Tax at the UK corporation tax rate of 25% (2024: 25%) 3,790 10,247 14,037 4,551 37,006 41,557
Tax effect of non-taxable dividends (3,532) - (3,532) (3,871) - (3,871)
Capital gains on investments that are not taxable - (11,680) (11,680) - (38,589) (38,589)
Overseas tax suffered 1,332 - 1,332 1,319 - 1,319
Indian capital gains tax - 182 182 - 332 332
Greek sales tax - 14 14 - - -
Unrelieved current period expenses and deficits - 1,187 1,187 - 914 914
Tax relief on overseas tax suffered (16) 4 (12) (11) - (11)
Total tax charge/(credit) for the year (see note 10a) 1,574 (46) 1,528 1,988 (337) 1,651
c) Factors that may affect future tax charges:
The Company has an unrecognised deferred tax asset of £4,699,000 (2024:
£3,524,000). The deferred tax asset is based on the current corporation tax
rate of 25% (2024: 25%).
It is unlikely that the Company will generate sufficient taxable profits in
the future to utilise these expenses and deficits and therefore no deferred
tax asset has been recognised.
Due to the Company's tax status as an investment trust and the intention to
continue meeting the conditions required to obtain approval of such status in
the foreseeable future, the Company has not provided UK tax on any capital
gains arising on the revaluation or disposal of investments held by the
Company.
The Company is liable to Indian capital gains tax under Section 115 AD of the
Indian Income Tax Act 1961. A tax provision on Indian capital gains is
calculated based on the long term (securities held more than one year) or
short term (securities held less than one year) nature of the investments and
the applicable tax rate at the year end. The current rates from 23 July 2024
of short-term tax rates are 20% and the long term tax rates are 12.5%
respectively. At the year ended 30 November 2025, the Company has a deferred
tax liability of £167,000 (2024: £396,000) on capital gains which may arise
if Indian investments are sold.
11 Earnings Per Ordinary Share
Year ended 30 November 2025 Year ended 30 November 2024
Revenue Capital Total Revenue Capital Total
return return return return return return
The calculation of basic earnings per share is based on the following data:
Net profit for the year (£'000) 13,585 41,035 54,620 16,215 148,360 164,575
Weighted average ordinary shares in issue during the year
242,603,469 242,603,469 242,603,469 305,146,436 305,146,436 305,146,436
Basic-ordinary shares (pence) 5.60 16.91 22.51 5.31 48.62 53.93
As at 30 November 2025 there were no potentially dilutive shares in issue
(2024: nil).
12 Amounts Recognised as Distributions to Ordinary Shareholders in the Year
Dividends paid in the year ended 30 November 2025
Payment date No. of shares Amount per share Year ended
30 November 2025
£'000
28 February 2025-Interim 303,219,365 2.20p 6,671
29 August 2025-Interim 170,306,377 2.60p 4,428
29 August 2025-Special 170,306,377 1.60p 2,725
13,824
The revenue available for distribution by way of dividend for the year is
£13,585,000 (2024: £16,215,000).
The total dividends payable in respect of the financial year ended 30 November
2025, which is the basis on which the requirements of section 1158 Corporation
Tax Act 2010 are considered, are set out below:
Payment date No. of shares Amount per share Year ended
30 November 2025
£'000
29 August 2025-Interim 170,306,377 2.60p 4,428
29 August 2025-Special 170,306,377 1.60p 2,725
27 February 2026-Interim 162,705,218 2.55p 4,149
11,302
The total dividends payable in respect of the financial year ended 30 November
2024, which is the basis on which the requirements of section 1158 Corporation
Tax Act 2010 are considered, are set out below:
Payment date No. of shares Amount per share Year ended
30 November 2024
£'000
30 August 2024-Interim 304,272,705 2.50p 7,607
28 February 2025-Interim 303,219,365 2.20p 6,671
14,278
All dividends are paid as interim dividends, and all have been charged to
revenue, where necessary utilising the revenue reserve and in exceptional
circumstances utilising the special distributable reserve.
13 Investments Held at Fair Value Through Profit or Loss
a) Investments held at fair value through profit or loss
30 November 2025 £'000 30 November 2024
£'000
Opening book cost 529,953 476,645
Opening investment holding gains 129,990 41,479
Opening fair value 659,943 518,124
Analysis of transactions made during the year
Purchases at cost 539,929 666,169
Sales proceeds received (843,777) (681,407)
Gains on investments held at fair value 46,207 156,916
Amortisation on fixed interest securities 22 141
Closing fair value 402,324 659,943
Closing book cost 323,882 529,953
Closing investment holding gains 78,442 129,990
Closing fair value 402,324 659,943
The Company received £843,777,000 (2024: £681,407,000) from disposal of
investments in the year. The book cost of these investments when they were
purchased were £746,022,000 (2024: £613,002,000). These investments have
been revalued over time and until they were sold any unrealised gains/losses
were included in the fair value of the investments.
The following transactions costs, including stamp duty and broker commissions
were incurred during the year:
30 November 2025 £'000 30 November 2024 £'000
On acquisitions 830 924
On disposals 550 561
1,380 1,485
b) Changes in Derivative Financial Instruments
(i) Futures 30 November 2025 £'000 30 November 2024 £'000
Valuation at 1 December 350 (288)
Additions at cost 2,212 1,816
Proceeds of disposal (1,048) (984)
Losses on disposal (1,164) (832)
Valuation (losses)/gains (350) 638
Valuation at 30 November - 350
The Company invested in currency and index futures during the year for the
purposes of efficient portfolio management. As at 30 November 2025, the
Company had sold out of all currency and index futures. (2024: Short position
of 80 CME British
pound/ Japanese Yen December 2024 contracts and a short position of 250 CME
Euro December 2024 contracts with a market value gain of
£350,000).
(ii) Options 30 November 2025 £'000 30 November 2024 £'000
Valuation at 1 December - 478
Additions at cost 5,010 1,805
Proceeds of disposal (6,166) (2,226)
Gains/(losses) on disposal 1,846 (201)
Valuation (losses)/gains (274) 144
Valuation at 30 November 416 -
The Company invested in purchased call and put options during the year for the
purposes of efficient portfolio management. As at 30 November 2025, the
company held State Street Financial Select Sector SPDR and State Street SPDR
S&P Regional call options and the market value of these open call options
position was £416,000 (2024: Sold out of all options).
(iii) Forward currency contracts 30 November 2025 £'000 30 November 2024 £'000
Forward currency buys 85,892 -
Forward currency sales (85,748) -
Net movement in unrealised appreciation on forward foreign exchange contracts 144 -
(c) Fair Value of Open Derivative Contracts 30 November 2025 £'000 30 November 2024 £'000
State Street Financial Select Sector SPDR call option 31 -
State Street SPDR S&P Regional call option 385 -
CME Euro December 2024 Futures - 728
Open Forward currency contracts 144 -
560 728
CME British Pound/Japanese Yen December 2024 Futures - (378)
- (378)
Total 560 350
(d) Fair value hierarchy
The Company's financial instruments within the scope of IFRS 7 that are held
at fair value comprise its investment portfolio and derivative financial
instruments.
They are categorised into a hierarchy consisting of the following three
levels:
Level 1 - valued using quoted prices in active markets for identical assets or
liabilities.
Level 2 - valued by reference to valuation techniques using observable inputs
other than quoted market prices included within Level 1.
Level 3 - valued by reference to valuation techniques using inputs that are
not based on observable market data.
Categorisation within the hierarchy has been determined on the basis of the
lowest level input that is significant to 'the fair value measurement of the
relevant asset'.
Details of the valuation techniques used by the Company are given in note 2(g)
above.
The following tables set out the fair value measurements using the IFRS 7
hierarchy at 30 November 2025 and 2024:
30 November 2025
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity Investments and derivative financial instruments 381,173 560 8,053 389,786
Interest bearing securities 11,568 - - 11,568
Convertible Loan Note - - 1,530 1,530
Total 392,741 560 9,583 402,884
The Level 2 investment relates to the Financial Select Sector SPDR and State
Street SPDR S&P Regional Call Options and unsettled forward currency
contracts.
The Level 3 investment relates to the shares in Atom Bank, Moneybox and Oberon
Investments Group CLN 12% 09/2028.
30 November 2024
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
Equity Investments and derivative financial instruments
612,625 - 6,699 619,324
Interest bearing securities 40,969 - - 40,969
Total 653,594 - 6,699 660,293
The Level 3 investment relates to the shares in Atom Bank and Moneybox.
There have been no transfers during the year between Levels 1 and 2. A
reconciliation of fair value measurements in Level 3 is set out below.
Level 3 investments at fair value through profit or loss 30 November 2025 £'000 30 November 2024 £'000
Opening balance 6,699 5,054
Additions at cost
- Convertible Loan Note 1,530 -
Total gains included in the Statement of Comprehensive Income - on assets held
at the year end
1,354 1,645
Closing balance 9,583 6,699
Level 3 Investments are recognised at fair value through profit or loss on a
recurring basis.
Level 3 investments are valued in accordance with the accounting policy in
Note 2(g) above.
A +/- 10% change in the price used to value the investment in the level 3
investments at the year end would result in a +/- £958,000 (2024: £670,000)
impact on the gains or losses on investments held at fair value in the
Statement of Comprehensive Income.
e) Unquoted investments
The value of the unquoted investments as at 30 November 2025 was £9,583,000
(2024: £6,699,000) and the portfolio comprised the following holdings:
30 November 2025 30 November 2024
£'000 £'000
Atom Bank 1,281 1,281
Moneybox 6,772 5,418
Oberon Investments Group CLN 12% 09/2028 1,530 -
9,583 6,699
Atom Bank is a UK digital bank founded in 2014 and based in Durham. It
currently offers fixed rate and instant access savings products, business
banking loans and retail mortgages.
At 31 March 2025 (Atom Bank's financial year end), Atom Bank announced that it
had made a pre-tax profit of £5,100,000 (2024: £6,700,000) and had net
assets attributable to Shareholders of £423,900,000 (2024: £402,400,000).
The valuation of Atom Bank was reviewed by the Investment Manager and the
Board during both the half year and full year financial results process. The
valuation of Atom Bank at the year end is supported by the secondary
transaction announced by the company in October 2025.
Moneybox is a UK savings and investments platform with over 1.3m customers
offering tax efficient products, such as ISAs, personal pensions as well as
various savings accounts.
The valuation of Moneybox was reviewed by the Investment Manager and the Board
during both the half year and full year financial results process. The
valuation of Moneybox was calculated by calculating the average enterprise
value to EBITDA ratio of a peer group of listed companies and then applying a
discount to reflect that it is a smaller and less diversified business. An
increase/decrease in the discount used of 5% would decrease/increase the fair
value by £448,100 and an increase/decrease of the multiple of EBITDA of the
peer group used of 1x would increase/decrease the fair value by £529,300.
In the prior year valuation has been calculated using the price of the
secondary share sale transaction. To factor in any uncertainty surrounding the
current price, if the fair value of the investment at the reporting date has
been stressed by +/- 10% the fair value would increase/decrease by £542,000.
Oberon is a UK wealth manager with over £1.3bn in AUM. Smaller parts of the
business also offer financial planning, VCTs, asset management and corporate
broking. The Company has invested £1,500,000 into 12% convertible loan note.
The interest will be payment in kind (PIK) and it matures in 3 years' time.
The loan note is convertible at anytime at 4.25p per share.
At 31 March 2025 (Oberon's financial year end), Oberon announced that it had
made a pre-tax loss of £4,135,000 and had net assets attributable to
Shareholders of £6,034,000.
The valuation of Oberon Investments Group CLN was reviewed by the Investment
Manager and the Board during the full year financial results process.
Following this review, it was determined that the Oberon Investments Group CLN
continues to be held at its initial carrying value, which represents the fair
value at the year end.
See Note 13(d) above for further details
14 Cash and Cash Equivalents
30 November 2025 30 November 2024
£'000 £'000
Cash at bank 10,837 26,436
Cash held at derivative clearing houses 2,828 1,742
Cash and Cash Equivalents 13,665 28,178
Bank overdraft (415) -
13,250 28,178
15 Called Up Share Capital
30 November 2025 November 2024
£'000 £'000
Ordinary shares-Allotted, Called up and Fully paid:
Ordinary shares of nominal value 5p each:
Opening balance of 303,219,365 (2024: 308,861,687) ordinary shares in issue 15,161 15,443
Repurchase of 132,912,988 ordinary shares into treasury pursuant to tender (6,646) -
offer
Repurchase of 6,514,153 (2024: 5,642,322) ordinary shares into treasury (325) (282)
163,792,224 (2024: 303,219,365) ordinary shares in issue 8,190 15,161
167,957,776 (2024: 28,530,635) ordinary shares held in treasury 8,398 1,427
Total of 331,750,000 (2024: 331,750,000) shares 16,588 16,588
During the year, there were 139,427,141 ordinary shares repurchased into
treasury (2024: 5,642,322) for a total consideration
£293,573,000 (2024: £9,038,000) plus expenses of £609,000, of which
£19,000 relates to non-audit services, as defined under IAS 32. No ordinary
shares were issued during the year (2024: nil)
Subsequent to the year end to 13 February 2026, the Company has repurchased a
further 1,087,006 shares out of treasury for a total consideration of
£2,423,458 into treasury.
The ordinary shares held in treasury have no voting rights and are not
entitled to dividends.
16. Net Asset Value Per Ordinary
Share
30 November 2025 30 November 2024
Net assets attributable to ordinary Shareholders (£'000) 376,292 629,678
Ordinary shares in issue at end of year (excluding shares held in treasury) 163,792,224 303,219,365
Net asset value per ordinary share (pence) 229.74 207.66
As at 30 November 2025, there were no potentially dilutive shares in issue.
(2024: nil.).
17. Transactions with the Investment Manager and Related Party Transactions
a) Transactions with the manager
Under the terms of an agreement dated 11 June 2013 the Company has appointed
Polar Capital LLP ("Polar Capital") to provide investment management,
accounting, secretarial and administrative services. Details of the fee
arrangement for these services are given in the Strategic Report. The total
fees, paid under this agreement to Polar Capital in respect of the year ended
30 November 2025 were £3,561,000 (2024: £3,860,000) of which £208,000
(2024: £350,000) was outstanding at the year end.
A revised Investment Management Agreement was put in place with the Manager
which took effect on 1 July 2025. The new base management fee is structured
over two tiers, and the performance fee has been removed entirely. Details of
the revised terms of the Investment Management Agreement are disclosed in the
Strategic Report in the Annual Report.
In addition, the total research costs in respect of the year from 1 December
2024 to the year ended 30 November 2025 were
£74,000 (2024: £57,000) of which £69,000 (2024: £19,000) was
outstanding.
b) Related party transactions
The Company has no employees and therefore no key management personnel other
than the Directors. The Company paid £149,000 (2024: £142,000) to the
Directors of which £63,000 (2024: £35,000) was outstanding at the year end.
The Remuneration Report is set out in the Annual Report. When dividends are
paid by the Company these are received by the Directors who own shares at the
same rates and terms as by all other
Shareholders.
18. Post Balance Sheet Events
Subsequent to the year end, a further 1,087,006 ordinary shares were bought
back and held in treasury. Following these buy backs, the total number of
ordinary shares in issue was 331.750,000 and the share held in treasury was
169,044,782.
There are no other significant events that have occurred after the end of the
reporting period to the date of this report which require disclosure.
Alternative Performance Measures (APMs)
In assessing the performance of the Company, the Investment Manager and the
Directors use the following APMs which are not defined in accounting standards
or law but are considered to be known industry metrics:
NAV Total Return
The NAV total return shows how the net asset value per share has performed
over a period of time taking into account both capital returns and dividends
paid to shareholders. The NAV total return performance for the period is
calculated by reinvesting the dividends in the assets of the Company from the
relevant ex-dividend date.
Year ended Year ended
30 November 2025 30 November 2024
Opening NAV per share a 207.7p 158.1p
Closing NAV per share b 229.7p 207.7p
Dividend reinvestment factor c 1.029837 1.025875
Adjusted closing NAV per share d = b*c 236.6p 213.1p
NAV total return for the year (d / a)-1 13.9% 34.8%
NAV Total Return Since Inception
NAV total return since inception is calculated as the change in NAV from the
initial NAV of 98p, assuming that dividends paid to Shareholders are
reinvested on the ex-dividend date in ordinary shares at their net asset
value.
Year ended Year ended
30 November 2025 30 November 2024
NAV per share at inception a 98.0p 98.0p
Closing NAV per share b 229.7p 207.7p
Dividend reinvestment factor c 1.454352 1.411532
Adjusted closing NAV per share d = b*c 334.1p 293.2p
NAV total return since inception (d / a)-1 240.9% 199.2%
Share Price Total Return
Share price total return shows how the share price has performed over a period
of time. It assumes that dividends paid to Shareholders are reinvested in the
shares at the time the shares are quoted
ex-dividend.
Year ended Year ended
30 November 2025 30 November 2024
Opening share price a 196.2p 138.8p
Closing share price b 218.0p 196.2p
Dividend reinvestment factor c 1.030603 1.028511
Adjusted closing share price d = b*c 224.7p 201.8p
Share price total return for the year (d / a)-1 14.5% 45.4%
Share Price Total Return Since Inception
Share price total return since inception is calculated as the change in share
price from the launch price of 100p, assuming that dividends paid to
Shareholders are reinvested on the ex-dividend
date.
Year ended Year ended
30 November 2025 30 November 2024
Share price at inception a 100.0p 100.0p
Closing share price b 218.0p 196.2p
Dividend reinvestment factor c 1.434862 1.391998
Adjusted closing share price d = b*c 312.8p 273.1p
Share price total return since inception (d / a)-1 212.8% 173.1%
Share Price Total Return Including Subscription Share Value
The share price total return including subscription share value performance
since inception includes the value of the subscription shares issued free of
payment at launch on the basis of one-for-five ordinary shares and assumes
such were held throughout the period from launch to the conversion date of 31
July 2017. Performance is calculated by reinvesting the dividends in the
shares of the Company from the relevant ex-dividend date and uses the launch
price of 100p per ordinary
share.
Year ended Year ended
30 November 2025 30 November 2024
Share price at inception a 100.0p 100.0p
Closing share price b 218.0p 196.2p
Dividend reinvestment factor c 1.464220 1.401121
Adjusted closing share price d = b*c 319.2p 274.9p
Share price total return including subscription share value since inception (d / a)-1
219.2% 174.9%
(Discount)/Premium
A description of the difference between the share price and the net asset
value per share usually expressed as a percentage (%)
of the net asset value per share. If the share price is higher than the NAV
per share the result is a premium. If the share price is
lower than the NAV per share, the shares are trading at a
discount.
30 November 2025 30 November 2024
Closing share price a 218.0p 196.2p
Closing NAV per share b 229.7p 207.7p
Discount per ordinary share (a / b)-1 -5.1% -5.5%
Ongoing Charges
Ongoing charges are calculated in accordance with AIC guidance by taking the
Company's annual ongoing charges, excluding performance fees and exceptional
items, if any, and expressing them as a percentage of the average daily net
asset value of the Company over the year.
Ongoing charges include all regular operating expenses of the Company.
Transaction costs, interest payments, tax and non- recurring expenses are
excluded from the calculation as are the costs incurred in relation to share
issues and share
buybacks.
Year ended Year ended
30 November 2025 30 November 2024
Investment Management Fee (Note 7 above) £3,561,000 £3,860,000
Other Administrative Expenses (Note 8 above) £1,096,000 £844,000
a £4,657,000 £4,704,000
Average daily net assets value b £510,393,000 £552,193,000
Ongoing Charges a / b 0.91% 0.85%
Net Gearing
Gearing is calculated in line with AIC guidelines and represents net gearing.
This is defined as total assets less cash and cash equivalents divided by net
assets. The total assets are calculated by adding back the bank loan. Cash and
cash equivalents are cash and purchases and sales for future settlement
outstanding at the year
end.
30 November 2025 30 November 2024
Net assets a £376,292,000 £629,678,000
Bank loan b £40,000,000 £78,935,000
Total assets c = (a+b) £416,292,000 £708,613,000
Cash and cash equivalents (including amounts awaiting settlement and d £13,055,000 £46,510,000
overdrafts)
Net gearing (c-d)/a-1 7.2% 5.1%
AGM
The Annual Report and separate Notice of Annual General Meeting will be posted
to Shareholders in February 2026 and will be available from the Company
Secretary at the Company's Registered Office, (16 Palace Street London SW1E
5JD) and on the Company's website. The AGM will be held at the Company's
Registered Office at 2:00pm on Thursday 26 March 2026.
Forward Looking Statements
Certain statements included above contain forward-looking information
concerning the Company's strategy, operations, financial performance or
condition, outlook, growth opportunities or circumstances in the countries,
sectors or markets in which the Company operates. By their nature,
forward-looking statements involve uncertainty because they depend on future
circumstances, and relate to events, not all of which are within the Company's
control or can be predicted by the Company. Although the Company believes that
the expectations reflected in such forward-looking statements are reasonable,
no assurance can be given that such expectations will prove to have been
correct. Actual results could differ materially from those set out in the
forward-looking statements. For a detailed analysis of the factors that may
affect our business, financial performance or results of operations, we urge
you to look at the principal risks and uncertainties included in the Strategic
Report Section of the Annual Report and Financial Statements.
No part of these preliminary results constitutes, or shall be taken to
constitute, an invitation or inducement to invest in Polar Capital Global
Financials Trust plc or any other entity and must not be relied upon in any
way in connection with any investment decision. The Company undertakes no
obligation to update any forward-looking statements. Neither the contents of
the Company's website nor the contents of any website accessible from
hyperlinks on the Company's website (or any other website) is incorporated
into, or forms part of, this announcement.
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