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Polar Capital Global Financials Trust PLC on Tuesday said it beat its benchmark in its financial half-year, as brokerage businesses and the performance of European banks contributed positively. The investor in financial companies said net asset value per share rose 2.6% to 235.74 pence as at May 31, from 229.74p at November 30. NAV total return for the six months to May 31 was 4.8%, outperforming its benchmark, the MSCI ACWI Financials, which had a total return of 3.1%. The company said among the biggest detractors was Nu Holdings Ltd, which suffered from concerns over asset quality. Further, an underweight position in HSBC Holdings PLC was a big detractor. Meanwhile, London Stock Exchange Group derated on artificial intelligence disruption fears, while NOBA Bank Group derated amid asset quality worries as an unsecured lender in a more uncertain economic environment. The company noted that when the US started its war against Iran in late February, rising concerns over AI were overshadowed by the sharp rise in energy prices, with the price of Brent crude having since come down from a peak of $120 per barrel in March. Meanwhile, key contributors were IG Group Holdings PLC and brokerage businesses such as StoneX Group. Polar Capital said it also benefited from the performance of European banks such as BPER Banca Spa and some potential candidates for consolidation such as Hiscox Ltd. Dividends for the first financial half amounted to 4.70p, up 12% from 4.20p a year ago. Chair Simon Cordery said: ‘Financials have returned over 15% since the tender offer in June 2025 and compounded at over 20% per annum over the past 3 years reflecting strong growth in earnings as well as a degree of re-rating relative to wider equity markets, although they remain on a wider discount than they have historically. Despite positive earnings revisions the sector has lagged wider equity markets in 2026. Nevertheless, strong balance sheets, good profitability and a regulatory framework that is becoming more pragmatic in its approach to the sector provide the solid foundations for the sector to continue generating attractive returns for investors.’ Polar Capital Global shares closed 1.4% higher at 246.50 pence each on Tuesday in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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