REG - Polar Capital Global - Half-year Report
15/07/2025 07:00
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RNS Number : 9929Q Polar Capital Global Financials Tst 15 July 2025
POLAR CAPITAL GLOBAL FINANCIALS TRUST PLC
(the "Company")
Unaudited Results for the half year ended 31 May 2025
Legal Entity Identifier: 549300G5SWN8EP2P4U41
15 July 2025
Financial Highlights for the half year ended 31 May 2025
Performance (Sterling total return) For six months ended 31 May 2025 Since
% Inception
%
Net asset value (NAV) per Ordinary share (1)~ 3.5 209.8
Ordinary share price (2)~ 6.4 190.5
Ordinary share price including subscription share value (3)~ - 196.7
Benchmark (Sterling total return) (4) 2.5 212.4
MSCI ACWI Financials
Other Indices and peer group (Sterling total return)
MSCI World Index -3.4 272.6
FTSE All Share Index 7.3 119.3
Lipper Financial Sector (5) 3.8 181.9
Since Reconstruction
Performance since the Reconstruction on 22 April 2020 %
(Sterling total return)
NAV per Ordinary share (6)~ 138.0
Benchmark (4) 133.8
Financials As at 31 May As at 31 May As at % Change
2025
2024
30 November 2024 Six months to 31 May 2025
Total net assets £645,524,000 £563,361,000 £629,767,800 2.5
NAV per Ordinary share 212.9p 185.0p 207.7p 2.5
Ordinary share price 206.5p 168.8p 196.2p 5.2
Discount per Ordinary share~ 3.0% 8.8% 5.5%
Net gearing~ 0.9% 1.9% 5.1%
Ordinary shares in issue (excluding those held in treasury) 303,219,365 304,547,705 303,219,365 -
Ordinary shares held in treasury 28,530,635 27,202,295 28,530,635 -
Six months to Six months to Year to
31 May 2025 31 May 2024 30 November 2024
Earnings per Ordinary share (7):
Revenue Return 3.26p 3.23p 5.31p
Capital Return 4.33p 25.59p 48.62p
Total 7.59p 28.82p 53.93p
Dividends*
First interim 2.60p 2.50p 2.50p 4.0
Special dividend 1.60p - -
Second interim - - 2.20p
Total 4.20p 2.50p 4.70p
* The Company declares dividends in respect of a financial year in July and
January for payment at the end of the following August and February. The first
interim dividend for the year ending 30 November 2025 was declared on 15 July
2025 and will be paid on 29 August 2025 to shareholders on the register on 8
August 2025. The shares will go ex-dividend on 7 August 2025. The second
interim dividend will be declared in January 2026 for payment in February
2026. In addition to the first interim dividend, the Company has declared a
special dividend to absorb surplus income available for distribution,
following the reduction in our issued share capital following the recent
Tender, and to ensure we continue to retain investment trust status by
distributing at least 85% of revenue earned in each financial year.
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 from the
initial NAV of 98p and the NAV on 31 May 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 31 May 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 31 May
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 average of open-ended funds in the Lipper Financial Sector
Universe which comprised 61 open-ended funds in the period under review.
Note 6 The total return NAV performance since Reconstruction is
calculated by reinvesting the dividends in the assets of the Company from the
relevant ex-dividend date.
.
Note 7 Refer to Note 3 of the notes to the Financial Statements below
for more details.
~See Alternative Performance Measure below.
Data sourced from HSBC Securities Services Limited, Polar Capital LLP and
Lipper.
For further information please contact: Simon Cordery, Chair Tel: 020 7227 2700
Polar Capital Global Financials Trust Plc
Jumoke Kupoluyi, Company Secretary Tel: 020 7227 2700
Polar Capital Global Financials Trust Plc
Chair's Statement
Dear Shareholders,
On behalf of the Board, I am pleased to provide you with the Company's Half
Year Report for the six months to 31 May 2025.
The Trust's portfolio delivered a positive Net Asset Value total return of
3.5% in the period, outperforming the benchmark, the MSCI All Country World
Index Financials Net Total Return Index, which rose 2.5%. We also saw a
narrowing of the discount at which our shares trade, resulting in a share
price return of 6.4%.
The performance of the Financials sector proved extremely resilient in the
period, in stark contrast to global equities which fell 2.6%, and the S&P
500 Index which fell 6.8%. This has been a very turbulent period for investors
with market volatility and headwinds seen as a result of the Trump
administration and its associated tariffs, as well as further geopolitical
unrest in the middle east.
Additionally, the Company completed its first five yearly tender offer which I
discuss below, and I would like to thank our many Shareholders for their
continuing support.
Performance
The Financial Highlights and the Investment Manager's Report contain detailed
information on investment performance and the key themes on which the
investment team are currently focussing.
Completion of 2025 Tender Offer
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
in treasury. Following the tender, the issued share capital of the Company
remains at 331,750,000 of which 161,443,623 shares are held in treasury.
The Company is required to make tender offers at five-yearly intervals, with
the next tender offer commencing on or around 30 June 2030.
NAV Discount Management
Despite discounts across the sector continuing to widen, the Company's
discount narrowed during the period under review, ending the period at 3.0%
compared to 5.5% at the end of FY24. This is likely a result of the recent
tender offer as some Shareholders awaited the chance to exit at close to NAV.
Notwithstanding this, the Board is proactive in monitoring the discount at
which the Company's ordinary shares trade in relation to the Company's
underlying NAV and took the opportunity to update its public policy in respect
of buybacks as part of the Tender Offer Circular issued in May 2025. Under
this policy, the Company will buy back Shares, with the intention of reducing
the discount to a level of no greater than 5 per cent. (i) if 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. 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.
During the period under review and to 11 July 2025, the latest practicable
date, no Ordinary shares have been bought back.
The Board
There have been no changes to the membership of the Board in the six months to
31 May 2025. The Directors' biographical details are available on the
Company's website and are provided in the Annual Report.
Dividends
The Company's current dividend policy and aim with respect to the Ordinary
Shares is to pay two interim dividends each year, in February and August.
These interim dividends will not necessarily be of equal amounts. The ability
to continue the Company's dividend policy is significantly driven by positive
investment performance and income receipts from our portfolio. If these
decline as a result of changes in the policies of investee companies, changes
in the composition of the portfolio, regulatory intervention, or as a result
of the currency exposure underlying the portfolio, a lower level of dividend
may be paid than intended or previously paid.
I am pleased to announce that the Board has been able to increase the
Company's dividend and has declared a first interim dividend for the current
financial year of 2.60p per share (2024 first interim of 2.50p). In addition
to this, the Board has also declared a special dividend of 1.60p per share to
absorb surplus income available for distribution, following the reduction in
our issued share capital following the recent Tender, and to ensure we
continue to retain investment trust status by distributing at least 85% of
revenue earned in each the financial year. Both the first interim dividend and
the special dividend will be paid on 29 August 2025 to shareholders on the
register on 8 August 2025; the shares will trade ex-dividend from 7 August
2025. It is anticipated that the second interim dividend for the current
financial year will be declared in January and paid in February 2026.
As previously reported in my Annual Report statement to Shareholders in
February 2025 (and subsequently approved by Shareholders at the AGM in April
2025), with effect from the next financial year commencing on 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. It is
anticipated that the first quarterly dividend under the new policy will be
declared in March 2026 and paid thereafter.
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. At the period end, the term loans had
been fully drawn down, and £40m in sterling and $12m in US dollars had been
drawn down under the RCF.
Following the period end and the expiry of the RCF and term loans (outlined
above), and given the impending Tender Offer, the Company put in place a
six-month short-term extension with RBS by way of an RCF totalling £45m. This
extension is due to be repaid in January 2026 at which time the loan
facilities will be reviewed once again. As at 11 July 2025, the latest
practicable date of calculation, the portfolio was 2.4% geared.
Management Fees
As reported in the Tender Offer Circular, the Board has 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 has agreed a reduction in fees payable to the Investment Manager, Polar
Capital, as follows, with effect from 1 July 2025:
· introduction of a tiered management fee under which the current fee
rate of 0.70 per cent. per annum will apply to the first £500 million of the
calculation value and a lower rate of 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") will be amended from the current
basis (which is by reference to NAV alone) so as to comprise 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.
Outlook
Financials have proved to be a resilient investment during a period of intense
market volatility and geopolitical uncertainty. This is a large and diverse
sector that continues to trade on an attractive valuation relative to the
wider market and to growth sectors such as technology. The sector is in good
health and the outlook for earnings, including a less restrictive regulatory
backdrop, remains positive. The Board and I would like to thank our
shareholders for their ongoing support and we look forward to seeing our
portfolio evolve and reward investors over the long term.
Simon Cordery
Chair
14 July 2025
Investment Manager's Report for the half year ended 31 May 2025
Performance
Financials generated very strong returns during 2024, as detailed in our
full-year report
(https://www.polarcapitalglobalfinancialstrust.com/srp/lit/Xa40d8/Report-and-Financial-Statements_Polar-Capital-Global-Financials-Trust-plc_30-11-2024.pdf)
(to 30 November 2024). Equity markets entered this reporting period with the
expectation that the incoming administration of President Donald Trump, while
carrying some shorter-term risks around trade, would likely follow a similar
pattern to that of his first administration, with a focus on cutting taxes and
de-regulation. The honeymoon period was short, however, with erratic
announcements emanating from the White House at the beginning of the year,
coupled with the reciprocal tariffs announced on 2 April, leading to sharp
falls in equity markets and the US dollar.
Despite a sharp rebound in global equity markets in May, as Trump, under
pressure from a fall in US Treasuries, was forced into a partial reversal of
tariffs. US equities significantly underperformed over the period and worse in
sterling terms once the dollar weakness was factored in. In Sterling terms,
the S&P 500 Index fell 6.8% in the half year to 31 May 2025
underperforming global equites which fell 2.6%. Financials proved to be
resilient, with the benchmark MSCI All Country World Financials Index rising
by 2.5%. The Trust's portfolio outperformed with a net asset value total
return of 3.5% after taking into account the February dividend.
The positive relative performance of the portfolio was driven by both stock
selection and country allocation, in part offset by currency headwinds from
the weaker US dollar. In particular, the portfolio benefited from its
overweight holdings versus the benchmark in European banks such as UniCredit,
Italy's second largest bank, Barclays and Bank of Cyprus Holdings as well as
having a holding in FlatexDEGIRO, a German retail broking platform. Their
strong performance were significant contributors to overall performance.
Conversely, there was relative weakness in reinsurance holdings such as
RenaissanceRe Holdings, a Bermudan reinsurer, due to softer pricing at January
renewals. Alternative asset managers came under pressure as the trade war led
to an expectation that there would be less M&A activity and our holding in
Ares Management, a US alternative asset manager, was a drag on our
performance. Not having a holding in Banco Santander, a large index
constituent, was also a drag on performance as European banks outperformed.
Investment activity and sector performance
US exceptionalism
In the run-up to and after the US elections in November, we increased our
exposure to the US, adding to US banks and asset managers, in the expectation
that a lighter regulatory touch and more positive background for the US
economy would lead to a pick-up in M&A activity and strong share price
performance. After the strong rally we reversed that positioning in the first
few months of 2025, moving to an underweight position in US banks, and the US
in general, as we saw better value elsewhere. We sold holdings in US
Bancorp, Citigroup and Regions Financial and started a position in Bank of New
York Mellon.
First-quarter US bank results have remained solid, reflecting the US economy's
resilience and supported by strong trading revenues. The outlook however is
one of slower growth and US employment appears to be weakening. The housing
market has softened, with high US mortgage rates dampening demand. With the
more uncertain outlook, US banks have taken the precaution of raising the
level of provisions, even though delinquency trends in consumer lending have
been improving. The other weak spot of office commercial real estate has also
stabilised.
Against that background, the shift to an underweight position in the US
reflected increasing concerns that erratic US policy on trade and fiscal
largesse could act as a further overhang on sentiment. Consequently we think
it highly likely we will see further weakness in the dollar, which remains
overvalued on most metrics, and/or underperformance of US equities as non-US
investors reduce allocations to US financial assets. Nonetheless we believe
that the US continues to be home to great companies, many of which are
benefiting from strong tailwinds, and has huge advantages over the rest of the
world, all of which tempers the underweight position.
Private assets in public markets
For some time we have been positive on alternative asset managers, which are
beneficiaries from the growth in private assets. They benefit from a
significant portion of the capital they manage being effectively locked up;
their investors commit to invest via limited partnership funds and, latterly,
so-called 'evergreen' funds where there are no or infrequent options to
redeem. Coupled with the steady inflows of money in recent years due to the
strong returns from the asset class and the illusion of lower volatility, the
share prices of companies in the subsector have done exceptionally well.
Despite these structural trends remaining intact, investors have taken profit
this year as the likelihood increased that earnings expectations would not be
met, resulting in weak share prices. We materially reduced our exposure at the
end of 2024, selling a holding in KKR and reducing our holdings in Blackstone
and Intermediate Capital Group, as valuations of many of the companies looked
stretched. While the industry has been very successful at diversifying away
from managing primarily private equity, adding private credit, infrastructure
and real estate to funds it manages, its earnings are still very sensitive to
performance fees that are largely generated from M&A activity in their
private equity funds.
Expectations coming into 2025 were reliant on the ability of managers to
realise some of their private equity holdings to generate performance fees, or
'carry' as it is also called. An inability to sell some of these investments,
to strategic acquirers or via an initial public offering (IPO; a stock market
listing), does not imply that the quality or carrying value of these
investments themselves are in question. However, it does result in a lower
level of current earnings as the profit from successful realisations will be
pushed into later years. We have selectively added to specific holdings when
we saw value in the April sell-off but our position remains well below where
we were in 2024.
European banks
European banks stood out for their strong performance over the period, rising
by an average of 42.8%. In contrast to the wider equity market, they benefited
from a continued pick-up in M&A activity and positive earnings revisions.
This was particularly notable in Italy but in May, Erste Group Bank, an
Austrian bank with operations in central and eastern Europe announced it was
buying a 49% stake in Santander Polska* for €6.9bn. Despite speculation
about the ability of UniCredit to execute on its acquisition of Banco BPM*, a
smaller Italian bank, due to restrictions put in place by the Italian
government for its approval, it lifted its stake in Alpha Bank, a Greek bank,
to just under 20% and requested permission to take it to 29.9%.
The response from Greek regulators and politicians has been uniformly positive
to the increase by UniCredit, in contrast to the reaction of politicians in
Germany in relation to its building a stake in Commerzbank* and in Italy where
the government has been against UniCredit's attempt to acquire Banco BPM. We
expect more M&A which is a positive for the sector. It is an accretive use
of surplus capital by banks, especially in-country deals, which have lower
execution risk and a greater opportunity to cut costs due to overlapping
branch networks.
We made several changes to our European banks' exposure with new holdings in
Alpha Bank and Erste Group Bank and sales of AIB Group and BAWAG Group. The
driver behind some of these changes is a lower sensitivity to interest rate
cuts and a shift towards those areas with the greatest potential for a pick-up
in loan growth. For example, the periphery of Europe, Central and Eastern
European countries are also well placed to benefit from German fiscal
stimulus. Despite material outperformance over the past three years, European
banks remain attractively valued as their performance is reflective of
earnings upgrades. We continue to find interesting stock specific
opportunities where valuations are at discounts to fair value and investor
perceptions on the business are now changing due to management actions.
Volatility beneficiaries
Against the background of increasing geopolitical risks, we added to our
holdings in a number of retail trading platforms and exchanges. Trading
platforms have been strong in 2025, benefiting from the continued growth in
retail trading as well as the pick-up in volatility. The listing of eToro*, a
European retail platform, in the US at a significant premium to its European
listed peers highlighted the value and the opportunity set 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
and 32 for generation X, reflecting the ease and greater user experience due
to mobile apps, access to more financial markets and commodities to trade and
the ability to learn about trading and investing leading to greater
participation. The business models and fragmentation of European markets has
led us to have a diverse range of holdings including FinecoBank, FlatexDEGIRO,
IG Group Holdings and Plus500 - this group represents one of the largest
positions in the portfolio.
Our largest holdings in exchanges include Deutsche Boerse and Intercontinental
Exchange, which operates the New York Stock Exchange. The attraction of some
of the holdings is how these businesses have diversified over time to become
financial technology businesses with significant data revenues making them
less cyclical. We added a new holding during April's sell-off, in London Stock
Exchange Group which owns the FTSE and Russell indices businesses and
Refinitiv, better known under its former name, Thomson Reuters. We bought Hong
Kong Clearing & Exchanges during the reporting period as a beneficiary of
the Chinese government's efforts to stimulate its economy.
Insurance
The insurance subsector continues to be an important part of the portfolio,
acting as a defensive counterweight to the more cyclical elements of the
Financials sector. Claims are driven by accidents and weather-related losses
so earnings are relatively immune to the economic cycle. In the short term
their share prices can be affected by changes in sentiment towards risk,
underperforming when markets are rising and vice versa but their performance
over the medium term will be driven more by an underwriting cycle and its
impacts on profitability.
Over the reporting period, insurance stocks performed relatively well but
performance was mixed. Reinsurance rates at January renewals fell on average
by 8%, according to insurance broker Howdens. Nevertheless, large European
reinsurers and UK insurance companies with exposure to the Lloyds of London
market performed well, as investors saw them as continuing to generate high
levels of profitability. They also benefitted from the strengthening in the
euro and sterling relative to the dollar.
Bermuda-based reinsurers were weaker, with some impacted by concerns around
the need to increase reserves on their casualty books for higher claims. US
insurers and insurance brokers also generally lagged the wider sector with
concern about the softening in reinsurance rates and US commercial insurance
rates hitting sentiment. We sold our holdings in Arch Capital and
RenasisanceRe Holdings during the period, concerned that the softening
interest rate environment would continue to weigh on share prices. We also
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 bought a new holding in Arthur J Gallagher, an insurance broker,
following a pullback in its share price after the announcement of an
acquisition.
Emerging market financials
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 1 (#_ftn1) .
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 class, 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.
This year we have used the weakness in some emerging market financials to
increase our exposure. We added to Grupo Financiero Banorte, one of Mexico's
largest banks, Mercardo Libre, a leading Latin American e-commerce and FinTech
platform that empowers financial inclusion by providing digital payment
solutions and marketplace access to millions of underserved individuals and
small businesses. We also started a position in Nu Holdings, a Brazilian
digital bank disruptor now serving more than 50% of Brazil's adults which has
over 100 million customers. It is expanding its low-cost model, of less than
€1 per month, to countries such as Mexico and Colombia.
We have increased our exposure to Indian private banks which have been some of
the few financial stocks in emerging markets to buck the trend of
underperformance. For a number of years they were a significant weighting in
the portfolio but we reduced this on concerns around tighter liquidity in the
banking sector impacting profitability. With the Reserve Bank of India cutting
interest rates this has created a much better backdrop to add to holdings. We
bought a holding in HDFC Bank, the largest private bank in India, and Shriram
Transport Finance, a non-bank lender.
Outlook
We believe the outperformance of Financials against wider equity markets over
the six months in part reflected it being seen as relatively insulated from
the direct impact of tariffs, notwithstanding that it would not be immune from
the indirect impacts. As it is more diversified regionally, with around 50% of
the sector comprising US-listed companies, versus 64% for global equities 2
(#_ftn2) , it benefited in relative terms from the weaker US dollar. Another
likely factor was that both the technology and healthcare sectors came under
pressure for idiosyncratic reasons, the former most notably around the news in
January of Deepseek's latest AI model which led to a large sell-off in
technology shares.
As the second largest sector in equity markets after technology, the Financial
sector is the largest constituent of value indices, i.e. those companies that
trade on lower valuations relative to the wider equity market. It stands to
benefit from any rotation away from growth sectors where, we would argue,
investors often pay a premium for promises while value stocks often trade on a
discount to reality. Data in the US shows that value indices on a 10-year
rolling basis outperformed growth indices since the mid-1920s until the global
financial crisis. Since then, growth has been in the ascendency as the
ingredients for its strong performance, in particular technology stocks from
smartphones and the cloud to latterly artificial intelligence, have been the
latest driver of share price performance.
Conversely, value sectors have struggled. For example, until the past couple
of years the Financials sector faced significant headwinds. This included a
significant increase in capital and liquidity requirements, increased
regulatory and compliance costs as well as fines and litigation dating back to
the global financial crisis, with shareholders paying for the excesses of the
preceding years while the executives responsible for it escaped the
consequences. However, low and negative interest rates that had the biggest
impact leading to the profitability of many banks falling substantially and
with it their share prices, while mispricing in bond markets led to a
significant misallocation of capital that has only just unwound.
Today, Financials are far more attractive. Interest rates have normalised,
providing a much better background for the sector to generate attractive
returns for shareholders, and investors have been slow to realise that these
higher returns are sustainable. Higher insurance and reinsurance rates have
increased the profitability of the insurance sector. Significant investment in
technology across the Financial sector will lead to the potential for a better
customer experience, better risk pricing and increased efficiency, with
automation helping to cut significant costs.
Furthermore, regulators, both in the US and elsewhere, are looking to simplify
regulation which has built up over the past 15 years with Donald 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 at the Senate Committee on Banking to review her
nomination that: "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."
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. In June, the House of Lords produced a report stating that the UK's
two main regulators, the Prudential Regulatory Authority and the Financial
Conduct Authority's "international competitiveness and growth objective is
being held back by pervasive risk aversion, regulatory uncertainty and
inefficiency in the regulatory system."
Some of the regulatory changes proposed in the US are likely to be enacted
this year which will be positive for the sector and hence profitability. This
is not a bonfire of regulations but sensible, prudent steps to alleviate the
sand in the wheels of companies across the sector. Consequently, we see 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, where it offers greater diversification in equity markets that are
highly concentrated.
* not held
Nick Brind, George Barrow and Tom Dorner
14 July 2025
We draw shareholders' attention to
https://www.polarcapitalglobalfinancialstrust.com/
(https://www.polarcapitalglobalfinancialstrust.com/) for monthly factsheets,
regular investment commentary and portfolio updates
Full Portfolio
Market Value £'000 % of total net assets
2025 2024 Stock Sector Geographical Exposure 31 May 30 November 31 May 30 November
2025 2024 2025 2024
1 (1) JP Morgan Chase Banks North America 42,053 45,025 6.5% 7.1%
2 (2) Mastercard Financial Services North America 32,093 28,254 4.9% 4.5%
3 (5) Berkshire Hathaway Financial Services North America 26,220 17,466 4.1% 2.8%
4 (4) Visa Financial Services North America 25,239 23,130 3.9% 3.7%
5 (3) Bank of America Banks North America 24,782 25,594 3.8% 4.1%
6 (33) UniCredit Banks Europe 17,450 8,940 2.7% 1.4%
7 (9) Barclays Banks United Kingdom 16,520 13,689 2.6% 2.2%
8 (-) Royal Bank of Canada Banks North America 14,439 - 2.2% -
9 (-) Plus500 Financial Services Asia (ex-Japan) 13,990 - 2.2% -
10 (-) Gallagher (Arthur J) Insurance North America 13,319 - 2.1% -
Top 10 investments 226,105 35.0%
11 (7) NASDAQ Group Financial Services North America 13,284 15,329 2.1% 2.4%
12 (23) Beazley Insurance United Kingdom 13,178 10,844 2.0% 1.7%
13 (-) Bank of New York Mellon Financial Services North America 13,123 - 2.0% -
14 (16) Axis Capital Holding Insurance North America 12,746 12,136 2.0% 1.9%
15 (13) Progressive Corp Insurance North America 12,719 12,744 2.0% 2.0%
16 (27) Intercontinental Exchange Financial Services North America 12,579 10,766 1.9% 1.7%
17 (6) Goldman Sachs Group Financial Services North America 12,297 16,785 1.9% 2.7%
18 (21) Intact Financial Corporation Insurance North America 12,204 10,911 1.9% 1.7%
19 (11) Fidelity National Information Services Financial Services North America 12,169 13,458 1.9% 2.1%
20 (-) Alpha Bank Banks Eastern Europe 12,164 - 1.9% -
Top 20 investments 352,568 54.6%
21 (14) ICICI Bank Banks Asia (ex-Japan) 12,074 12,617 1.9% 2.0%
22 (-) HDFC Bank Banks Asia (ex-Japan) 12,003 - 1.8% -
23 (-) Hong Kong Exchanges and Clearing Financial Services Asia (ex-Japan) 11,697 - 1.8% -
24 (12) Globe Life Insurance North America 10,256 12,845 1.6% 2.0%
25 (22) IG Group Financial Services United Kingdom 10,141 10,876 1.6% 1.7%
26 (20) NatWest Group Banks United Kingdom 10,133 11,060 1.6% 1.8%
27 (-) Finecobank Banks Europe 10,128 - 1.6% -
28 (-) Capital One Financial Financial Services North America 10,023 - 1.5% -
29 (45) Mercadolibre Financial Services Latin America 9,813 6,086 1.5% 0.9%
30 (-) FlatexDEGIRO Financial Services Europe 9,232 - 1.5% -
Top 30 investments 458,068 71.0%
31 (35) Deutsche Boerse Financial Services Europe 9,170 8,704 1.4% 1.4%
32 (-) Grupo Financiero Banorte Banks Latin America 8,913 - 1.4% -
33 (-) London Stock Exchange Group Financial Services United Kingdom 8,816 - 1.4% -
34 (-) NU Holdings Banks Latin America 8,642 - 1.3% -
35 (28) Interactive Brokers Group Financial Services North America 8,236 10,714 1.3% 1.7%
36 (-) Swiss Reinsurance Insurance Europe 8,042 - 1.2% -
37 (10) Sumitomo Mitsui Financial Banks Japan 8,001 13,526 1.2% 2.1%
38 (24) Ares Management Corporation Financial Services North America 7,888 10,828 1.2% 1.7%
39 (-) Shriram Finance Financial Services Asia (ex-Japan) 7,589 - 1.2% -
40 (47) Bank of Cyprus Holdings Banks Europe 7,156 5,609 1.1% 0.9%
Top 40 investments 540,521 83.7%
41 (15) Erste Bank Banks Europe 7,070 12,214 1.1% 2.0%
42 (-) Deutsche Bank Financial Services Europe 6,475 - 1.0% -
43 (50) BDO Unibank Banks Asia (ex-Japan) 6,425 5,467 1.0% 0.9%
44 (25) Intermediate Capital Group Financial Services United Kingdom 6,399 10,786 1.0% 1.7%
45 (-) Axa Insurance Europe 6,112 - 1.0% -
46 (-) United Overseas Bank Banks Asia (ex-Japan) 6,098 - 0.9% -
47 (38) Equitable Holdings Financial Services North America 5,674 7,370 0.9% 1.2%
48 (51) Moneybox (unquoted) Financial Services United Kingdom 5,418 5,418 0.9% 0.9%
49 (55) Irish Residential Properties REIT Equity Real Estate Investment Trusts (REITs) Europe 5,405 4,412 0.8% 0.7%
50 (-) Tokio Marine Holdings Insurance Japan 4,990 - 0.8% -
Top 50 investments 600,587 93.1%
51 (36) Blackstone Financial Services North America 4,750 8,220 0.7% 1.3%
52 (44) First Horizon National Banks North America 4,726 6,154 0.7% 1.0%
53 (17) BlackRock Financial Services North America 4,203 11,821 0.7% 1.9%
54 (-) XTB Financial Services Eastern Europe 4,093 - 0.6% -
55 (52) CVC Capital Partners Financial Services Europe 3,895 5,414 0.6% 0.9%
56 (56) International Personal Finance 10.75% 2029 Bond Fixed Income Fixed Income 2,587 4,328 0.5% 0.6%
57 (60) Deutsche Beteiligungs 5.5% 2030 Convertible Bond Fixed Income Fixed Income 2,558 2,373 0.4% 0.4%
58 (63) Investec preference Fixed Income Fixed Income 2,476 2,181 0.4% 0.3%
59 (62) Aviva 6.875% Perp Bond Fixed Income Fixed Income 2,199 2,203 0.3% 0.4%
60 (58) Rothesay Life 4.875% Perp Bond Fixed Income Fixed Income 2,165 2,987 0.3% 0.5%
Top 60 investments 634,239 98.3%
61 (64) Atom Bank 11.5% 2035 Bond Fixed Income Fixed Income 2,130 2,103 0.3% 0.3%
62 (75) Personal Group Holdings Insurance United Kingdom 2,030 1,302 0.3% 0.2%
63 (69) Rothesay Life 5% Perp Bond Fixed Income Fixed Income 1,677 1,624 0.3% 0.3%
64 (71) Vanquis Banking Group 8.875% 2032 Bond Fixed Income Fixed Income 1,624 1,424 0.3% 0.2%
65 (68) Riverstone Credit Opportunities Fixed Income Fixed Income 1,594 1,761 0.2% 0.3%
66 (74) Shawbrook Group 9% 2030 Bond Fixed Income Fixed Income 1,300 1,313 0.2% 0.2%
67 (76) Shawbrook Group 12.25% 2034 Bond Fixed Income Fixed Income 1,290 1,284 0.2% 0.2%
68 (77) Atom Bank (unquoted) Banks United Kingdom 1,281 1,281 0.2% 0.2%
69 (78) Chesnara 4.75% 2032 Bond Fixed Income Fixed Income 1,226 1,222 0.2% 0.2%
70 - Shawbrook Group 9.25% 2035 Bond Fixed Income Fixed Income 700 - 0.1% -
Top 70 investments 649,091 100.6%
71 (61) VEF Financial Services Europe 213 2,372 0.0% 0.4%
72 (82) National Westminster 9% Pref Share Fixed Income Fixed Income 149 700 0.0% 0.1%
Total Investments 649,453 100.6%
Other net liabilities (3,929) (0.6%)
Total net assets 645,524 100.0%
Note: Figures in brackets denote comparative rankings as at 30 November 2024.
Portfolio Analysis
Geographical Exposure* Benchmark weighting as at 31 May 2025** 31 May 2025 30 November 2024
North America 54.9% 51.8% 61.0%
Europe 15.3% 14.0% 14.0%
United Kingdom 4.6% 11.6% 11.3%
Asia (ex-Japan) 15.7% 10.8% 7.9%
Latin America 1.0% 4.2% 0.9%
Fixed Income - 3.7% 6.5%
Eastern Europe 0.8% 2.5% -
Japan 4.6% 2.0% 3.2%
Other net liabilities - (0.6%) (4.8%)
Total 100.0% 100.0%
Sector Exposure* Benchmark weighting as at 31 May 2025** 31 May 2025 30 November 2024
Financial services 37.6% 45.7% 42.4%
Banks 42.8% 35.5% 35.3%
Insurance 19.0% 14.9% 19.9%
Fixed Income - 3.7% 6.5%
Equity Real Estate Investment Trusts (REITs) - 0.8% 0.7%
Other net liabilities - (0.6%) (4.8%)
Total 100.0% 100.0%
Market Capitalisation* Benchmark weighting as at 31 May 2025** 31 May 2025 30 November 2024
Mega Cap 39.4% 32.5% 33.5%
Large Cap 33.9% 31.7% 24.5%
Mid Cap 17.6% 9.6% 12.8%
Small Cap 8.0% 13.9% 15.6%
Smallest Cap 0.6% 9.2% 11.9%
Fixed Income - 3.7% 6.5%
Other net liabilities - (0.6%) (4.8%)
Total 100.0% 100.0%
* Based on the net assets as at 31 May 2025 of £654.5m (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 period end.
Corporate Matters
Principal Risks and Uncertainties
A detailed explanation of the Company's principal risks and uncertainties, and
how they are managed through mitigation and controls, can be found on pages 40
to 44 of the Annual Report for the year ended 30 November 2024. These
principal risks can be summarised as business risks, including meeting the
investment objective of the Company, and market-related risks encompassing
factors such as excessive share price discount to NAV, market volatility,
stock pricing and liquidity risk, currency and interest rate risk,
counterparty risk, gearing and the ability to meet the dividend policy. Other
principal risks include infrastructure risks, including the performance of the
operational and accounting systems and processes provided by the Investment
Manager, taxation, mis-valuation and legal and regulatory risks; and external
risks which focus on the exposure to the economic cycles of the markets of the
underlying investments.
The Directors consider that, overall, the principal risks and uncertainties
faced by the Company for the remaining six months of the financial year have
not changed from those outlined within the Annual Report.
Further detail on the Company's performance and portfolio can be found in the
Investment Managers' Report.
Going Concern
As detailed in the notes to the financial statements, the Board continually
monitors the financial position of the Company and has undertaken
stress-testing and analysis in determining the appropriateness of preparing
the Financial Statements on a going concern basis. Having carried out the
testing, the Directors are satisfied that it is appropriate to continue to
adopt the going concern basis in preparing the financial results of the
Company. In reaching this conclusion, the Board also considered the Company's
performance and its assessment of any material uncertainties and events that
might cast significant doubt upon the Company's ability to continue as a going
concern.
Related Party Transactions
In accordance with DTR 4.2.8R, there have been no new related party
transactions during the six-month period to 31 May 2025. There have been no
changes in any related party transaction described in the last Annual Report
that could have a material effect on the financial position or performance of
the Company in the first six months of the current financial year or to the
date of this report.
Statement of Directors' Responsibilities
The Directors of Polar Capital Global Financials Trust plc, who are listed in
the Company Information section, confirm to the best of their knowledge that:
· The condensed set of financial statements has been prepared in
accordance with the UK-adopted International Accounting Standard 34 and in
conformity with the requirements of the Companies Act 2006 and gives a true
and fair view of the assets, liabilities, financial position and profit or
loss of the Company as at 31 May 2025; and
· The Interim Management Report includes a fair review of the
information required by the Disclosure Guidance and Transparency Rules 4.2.7R
and 4.2.8R.
The half-year financial report for the six-month period to 31 May 2025 has not
been audited or reviewed by the Auditors. The half-year financial report was
approved by the Board on 14 July 2025.
On behalf of the Board
Simon Cordery
Chair
Statement of Comprehensive Income for the half year ended 31 May 2025
(Unaudited) (Unaudited) (Audited)
Notes Half year ended 31 May 2025 Half year ended 31 May 2024 Year ended 30 November 2024
Revenue Capital Total Revenue Capital Total Revenue Capital Total
return return return return return return return return return
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investment income 2 11,539 - 11,539 11,557 - 11,557 19,067 - 19,067
Other operating income 2 723 - 723 608 - 608 1,505 - 1,505
Gains on investments held at fair value - 16,423 16,423 - 82,196 82,196 - 156,916 156,916
Gains/(losses) on derivatives - 886 886 - (377) (377) - (251) (251)
Other currency losses - (550) (550) - (597) (597) - (2,312) (2,312)
Total income 12,262 16,759 29,021 12,165 81,222 93,387 20,572 154,353 174,925
Expenses
Investment management fee (437) (1,747) (2,184) (369) (1,477) (1,846) (772) (3,088) (3,860)
Other administrative expenses (457) (22) (479) (372) (16) (388) (798) (46) (844)
Total expenses (894) (1,769) (2,663) (741) (1,493) (2,234) (1,570) (3,134) (4,704)
Profit before finance costs and tax 11,368 14,990 26,358 11,424 79,729 91,153 19,002 151,219 170,221
Finance costs (431) (1,725) (2,156) (392) (1,568) (1,960) (799) (3,196) (3,995)
Profit before tax 10,937 13,265 24,202 11,032 78,161 89,193 18,203 148,023 166,226
Tax (1,059) (133) (1,192) (1,137) 242 (895) (1,988) 337 (1,651)
Net profit for the period and total comprehensive income 9,878 13,132 23,010 9,895 78,403 88,298 16,215 148,360 164,575
Earnings per ordinary share (pence) 3 3.26 4.33 7.59 3.23 25.59 28.82 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 half year ended 31 May 2025
(Unaudited) Half year ended 31 May 2025
Notes Called up share capital Capital redemption Share premium reserve Special distributable reserve Capital reserves Revenue reserve Total Equity
£'000 reserve £'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 half year ended 31 May 2025 - - - - 13,132 9,878 23,010
Transactions with owners, recorded directly to equity:
Cancellation of share premium* - - (311,369) 311,369 - - -
Tender offer costs - - - (493) - - (493)
Equity dividends paid - - - - - (6,671) (6,671)
Total equity at 31 May 2025 16,588 251 - 406,955 204,999 16,731 645,524
* Following an application to the Court on 13 May 2025, the Company has
cancelled its share premium and converted it to a distributable reserve.
(Unaudited) Half year ended 31 May 2024
Called up share capital Capital redemption Share premium reserve Special distributable reserve Capital reserves Revenue reserve Total Equity
£'000 reserve £'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 half year ended 31 May 2024 - - - - 78,403 9,895 88,298
Transactions with owners, recorded directly to equity:
Shares bought back and held in treasury 5 - - - (6,685) - - (6,685)
Equity dividends paid - - - - - (6,450) (6,450)
Total equity at 31 May 2024 16,588 251 311,369 98,432 121,910 14,811 563,361
(Audited) Year ended 30 November 2024
Called up share capital Capital redemption Share premium reserve Special distributable reserve Capital reserves Revenue reserve Total Equity
£'000 reserve £'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 5 - - - (9,038) - - (9,038)
treasury
Equity dividends paid - - - - - (14,057) (14,057)
Total equity at 30 November 2024 16,588 251 311,369 96,079 191,867 13,524 629,678
The notes to follow form part of these financial statements.
Balance Sheet as at 31 May 2025
Notes (Unaudited) (Unaudited) (Audited)
31 May 2025 31 May 2024 30 November 2024
£'000 £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 649,453 571,641 659,943
Current assets
Cash and cash equivalents 62,254 58,500 28,178
Fair value of open derivative contracts 1,217 - 728
Receivables 15,143 5,961 22,873
78,614 64,461 51,779
Total assets 728,067 636,102 711,722
Current liabilities
Bank overdraft (378) - -
Fair value of open derivative contracts (42) (660) (378)
Payables (3,997) (3,036) (2,335)
Bank Loan (77,559) - (78,935)
(81,976) (3,696) (81,648)
Non-current Liabilities
Bank loan - (68,894) -
Indian capital gains tax provision (567) (151) (396)
(567) (69,045) (396)
Net assets 645,524 563,361 629,678
Equity attributable to equity shareholders
Called up share capital 16,588 16,588 16,588
Capital redemption reserve 251 251 251
Share premium reserve - 311,369 311,369
Special distributable reserve 406,955 98,432 96,079
Capital reserves 204,999 121,910 191,867
Revenue reserve 16,731 14,811 13,524
Total equity 645,524 563,361 629,678
Net asset value per Ordinary share (pence) 4 212.89 184.98 207.66
The notes to follow form part of these financial statements.
Simon Cordery
Chair
14 July 2025
Cash Flow Statement for the half year ended 31 May 2025
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
31 May 31 May 30 November 2024
2025 2024 £'000
£'000 £'000
Cash flows from operating activities
Profit before tax 24,202 89,193 166,226
Adjustment for non-cash items:
Profit on investments held at fair value through profit or loss (16,423) (82,196) (156,916)
(Gains)/losses on derivative financial instruments (886) 377 251
Scrip dividends received 42 - -
Amortisation on fixed interest securities (17) (83) (141)
Adjusted profit before tax 6,918 7,291 9,420
Adjustments for:
Purchases of investments, including transaction costs (312,151) (323,258) (670,314)
Sales of investments, including transaction costs 347,243 352,914 667,632
Purchases of derivative financial instruments (7,154) (1,090) (3,621)
Proceeds on disposal of derivative financial instruments 7,214 262 3,210
Decrease/(increase) in receivables 477 (534) (548)
(Decrease)/increase in payables (19) (14) 167
Indian capital gains tax (146) (203) (199)
Greek sales tax (3) - -
Overseas tax deducted at source (614) (958) (1,450)
Net cash generated from operating activities 41,765 34,410 4,297
Cash flows from financing activities
Shares repurchased into treasury - (6,584) (9,227)
Tender offer costs paid (20) - -
Loan drawn - - 10,000
Exchange gains on the loan facility (1,376) (137) (96)
Equity dividends paid (6,671) (6,450) (14,057)
Net cash used in financing activities (8,067) (13,171) (13,380)
Net increase/(decrease) in cash and cash equivalents 33,698 21,239 (9,083)
Cash and cash equivalents at the beginning of the period 28,178 37,261 37,261
Cash and cash equivalents at the end of the period 61,876 58,500 28,178
The notes to follow form part of these financial statements.
Notes to the Financial Statements for the half year ended 31 May 2025
1 General Information
The financial statements comprise the unaudited results for Polar Capital
Global Financials Trust Plc for the six-month period to 31 May 2025.
The unaudited financial statements to 31 May 2025 have been prepared using the
accounting policies used in the Company's financial statements to 30 November
2024. These accounting policies are based on UK-adopted International
Accounting Standards ("UK-adopted IAS").
The financial information in this half year report does not constitute
statutory accounts as defined in section 434 of the Companies Act 2006.
The financial information for the periods ended 31 May 2025 and 31 May 2024
have not been audited. The figures and financial information for the year
ended 30 November 2024 are an extract from the latest published accounts and
do not constitute statutory accounts for that year. Full statutory accounts
for the year ended 30 November 2024, prepared under UK-adopted IAS, including
the report of the auditors which was unqualified, did not draw attention to
any matters by way of emphasis and did not contain a statement under section
498 of the Companies Act 2006, have been delivered to the Registrar of
Companies.
The Company's accounting policies have not varied from those described in the
financial statements for the year ended 30 November 2024.
The financial statements are presented in Pounds Sterling and all values are
rounded to the nearest thousand pounds (£'000), except where otherwise
stated.
The Board continually monitors the financial position of the Company. As at 31
May 2025 the Company's total assets exceeded its total liabilities by a
multiple of over 8.8. 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 July 2025 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.
Should the loan facilities not be renewed in July 2025, the Board is satisfied
that the Company could fund the repayment and ongoing cash flow requirements
through the sale of a portion of the portfolio of listed securities in all
severe but plausible downside scenarios considered. 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 months from the date
of issuance of these Financial Statements.
As part of the going concern assessment at the year end, the Directors had to
consider the uncertainty of the tender offer taking place on or before 30 June
2025 and the possibility of the Company not remaining viable. However, on the
17 June 2025 it was announced to the market that the tender offer was
successful, retaining close to 60% of the Company and having assets in excess
of £350m based on the latest published NAV. Accordingly, the Directors
believe that it is appropriate to continue to adopt the going concern basis in
preparing the Company's Financial Statements.
There were no new UK-adopted IAS or amendments to UK-adopted IAS applicable to
the current period which had any significant impact on the Company's Financial
Statements.
2 Dividends and Other Income
(Unaudited) (Unaudited) (Audited)
For the half For the half For the
year ended year ended year ended
31 May 31 May 30 November 2024
2025
2024
£'000
£'000 £'000
Investment income
Revenue:
UK dividends 1,307 1,283 2,933
Overseas dividends 8,890 8,676 13,182
Scrip dividends 42 - -
Interest on debt securities 1,300 1,598 2,952
Total investment income allocated to revenue 11,539 11,557 19,067
Included within income from investments is £404,000 (31 May 2024: £677,810
and 30 November 2024: £1,460,000) of special dividends classified as revenue
in nature. No special dividends have been recognised in capital (31 May 2024:
£nil and 30 November 2024: £nil).
Other operating income
Bank interest 723 608 1,505
Total other operating income 723 608 1,505
3 Earnings per ordinary share
(Unaudited) (Unaudited) (Audited)
For the half For the half For the
year ended year ended year ended
31 May 31 May 30 November 2024
2025
2024
£'000
£'000 £'000
Basic earnings per share
Net profit for the period:
Revenue 9,878 9,895 16,215
Capital 13,132 78,403 148,360
Total 23,010 88,298 164,575
Weighted average number of shares in issue during the period 303,219,365 306,354,334 305,146,436
Basic - Ordinary shares (pence)
Revenue 3.26p 3.23p 5.31p
Capital 4.33p 25.59p 48.62p
Total 7.59p 28.82p 53.93p
As at 31 May 2025 there were no potentially dilutive shares in issues (31 May
2024 and 30 November 2024: same).
4 Net Asset Value per Ordinary Share
(Unaudited) (Unaudited) (Audited)
For the half For the half For the
year ended year ended year ended
31 May 31 May 30 November 2024
2025
2024
Net assets attributable to Ordinary shareholders (£'000) 645,524 563,361 629,678
Ordinary shares in issue at end of period 303,219,365 304,547,705 303,219,365
Net asset value per Ordinary share (pence) 212.89 184.98 207.66
As at 31 May 2025 there were no potentially dilutive shares in issues (31 May
2024 and 30 November 2024: same).
5 Share Capital
During the six months ended 31 May 2025, there were no ordinary shares
repurchased into treasury (31 May 2024: 4,313,982; 30 November 2024:
5,642,322) for a total consideration of £nil (31 May 2024: £6,685,000; 30
November 2024: £9,038,000). Following this, the company's issued share
capital consists of 303,219,365 ordinary shares and an additional 28,530,635
ordinary shares held in treasury.
6 Dividends
The first interim dividend for the year ending 30 November 2025 was declared
on 15 July 2025 and will be paid on 29 August 2025; it is anticipated that the
second interim dividend for the year ending 30 November 2025 will be declared
during January 2026 and will be paid on 27 February 2026. In addition to the
first interim dividend, the Company has declared a special dividend to pay out
surplus income; this will also be paid on 29 August 2025.
7 Related Party Transactions
There have been no related party transactions that have materially affected
the financial positions or the performance of the Company during the six month
period to 31 May 2025.
8 Post Balance Sheet Events
In accordance with the Company's Articles of Association (the "Articles"), the
Company put forward a 100 per cent tender offer to its Shareholders.
Shareholders who did not wish to continue their investment in the Company,
were offered the opportunity to tender their shares at the prevailing NAV per
ordinary share less costs and other appropriate adjustments. On the 17 June
2025, the Company announced to the market that the total number of shares
tendered was 132,912,988 with a total of £278,359,671 paid out to
shareholders based on a tender price of 209.43p. Following the tender offer,
the total number of ordinary shares in issue was 170,306,377 and 161,443,623
shares were held in treasury.
Forward-looking Statements
Certain statements included in this half year Report 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
be 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 Annual
Report for the financial year ended 30 November 2024. No part of these
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.
Company Website
www.polarcapitalglobalfinancialstrust.com
(http://www.polarcapitalglobalfinancialstrust.com)
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)
is incorporated into or forms part of this announcement.
Alternative Performance Measures (APM's)
In assessing the performance of the Company, the 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.
For the half year ended Year ended
31 May 2025 30 November 2024
Opening NAV per share a 207.7p 158.1p
Closing NAV per share b 212.9p 207.7p
Dividend reinvestment factor c 1.009721 1.025875
Adjusted closing NAV per share d=b*c 215.0p 213.1p
NAV total return for the period (d/a)-1 3.5% 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.
For the half year ended Year ended
31 May 2025 30 November 2024
NAV per share at inception a 98.0p 98.0p
Closing NAV per share b 212.9p 207.7p
Dividend reinvestment factor c 1.426073 1.411532
Adjusted closing NAV per share d=b*c 303.6p 293.2p
NAV total return since inception (d/a)-1 209.8% 199.2%
NAV Total Return Since Reconstruction
NAV total return since reconstruction is calculated as the change in NAV from
the NAV of 102.8p, which was the closing NAV the day before the tender offer
on 22 April 2020, assuming that dividends paid to shareholders are reinvested
on the ex-dividend date in ordinary shares at their net asset value.
For the half year ended Year ended
31 May 2025 30 November 2024
Rebased NAV per share at reconstruction a 102.8p 102.8p
Closing NAV per share b 212.9p 207.7p
Dividend reinvestment factor c 1.149203 1.137893
Adjusted closing NAV per share d=b*c 244.7p 236.3p
NAV total return since reconstruction (d/a)-1 138.0% 129.9%
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.
For the half year ended Year ended
31 May 2025 30 November 2024
Opening share price a 196.2p 138.8p
Closing share price b 206.5p 196.2p
Dividend reinvestment factor c 1.010926 1.028511
Adjusted closing share price d=b*c 208.8p 201.8p
Share price total return for the period (d/a)-1 6.4% 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.
For the half year ended Year ended
31 May 2025 30 November 2024
Share price at inception a 100.0p 100.0p
Closing share price b 206.5p 196.2p
Dividend reinvestment factor c 1.406780 1.391998
Adjusted closing share price d=b*c 290.5p 273.1p
Share price total return since inception (d/a)-1 190.5% 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.
For the half year ended Year ended
31 May 2025 30 November 2024
Share price at inception a 100.0p 100.0p
Closing share price b 206.5p 196.2p
Dividend reinvestment factor c 1.436804 1.401121
Adjusted closing share price d=b*c 296.7p 274.9p
Share price total return including subscription share value since inception (d/a)-1
196.7% 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.
31 May 2025
30 November 2024
Closing share price a 206.5p 196.2p
Closing NAV per share b 212.9p 207.7p
Discount per ordinary share (a / b)-1 -3.0% -5.5%
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.
31 May 2025 30 November 2024
Net assets a £645,524,000 £629,678,000
Bank loan b £77,559,000 £78,935,000
Total assets c = (a+b) £723,083,000 £708,613,000
d
Cash and cash equivalents (including amounts awaiting settlement and £72,004,000 £46,510,000
overdrafts)
(c-d)/a-1
Net gearing 0.9% 5.1%
1 (#_ftnref1) MSCI Emerging Market Financials Net Total Return Index vs MSCI
World Financials Net Total Return Index in GBP
2 (#_ftnref2) The MSCI All Country World Index
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