9th Mar 2020 12:31
(Alliance News) - Polar Capital Global Financials Trust PLC on Monday reported a rise in assets over financial 2019, slightly ahead of its benchmark.
At November 30, the technology investor's NAV per share stood at 148.5 pence, up 7.1% from 138.6p at the same point the year before.
Polar Capital Global Financials reported net assets rose 7.2% over the twelve months to November 30, growing to GBP301.2 million from GBP281.0 million.
The trust upped its total dividend by 6.0% to 4.40p from the 4.15p distributed in financial 2018.
Polar Capital Global Financials' NAV total return in financial 2019 was 10.4%, slightly ahead of its benchmark - which is made up of the MSCI World Financials plus Real Estate Net Total Return Index - added 9.9% in the same period.
"Having taken certain defensive measures in response to earlier poor sentiment towards the financials sector, the manager's strong stock selection capability came through in portfolio performance as sentiment recovered towards the end of the financial year," Chair Robert Kyprianou said.
The trust's investment managers, Nick Brind and John Yakas, added: "Positive stock selection was partially offset by an overweight position in banks and an underweight positioning in real estate investment trusts (REITs), as the latter performed very well over the period. Our holdings in a number of emerging market banks and payments companies were also a positive contributor, as were our fixed-income holdings.
"Mastercard was the biggest contributor to performance, followed by holdings in Blackstone, the US alternative asset manager, Arch Capital, the US speciality insurer and Mapeltree Commercial Trust, a Singapore-listed REIT. Conversely, the biggest drag on performance was a holding in Swedbank, one of Sweden's largest banks, Caixabank, a Spanish bank and some of our US regional bank holdings such as East West Bancorp and SVB Financial Group."
Looking ahead, Polar Capital Global Financials is nearing the end of its seven year life - May 31, 2020 - but the trust is eager to continue, believing an actively managed closed-end, global vehicle remains an "appropriate way of participating in, and managing the risks of, a financials portfolio".
As such, the trust has previously proposed changing its wind up date with a tender offer - which gives shareholders an opportunity to exit the trust but also allows the option for shareholders to remain invested in the trust.
"Full details of the proposals, including the timetable and anticipated exit costs, will be provided in a circular to shareholders to be sent in early March," Kyprianou said.
He added: "Following consultation with the manager, our advisers and a number of shareholders, the board believes that the original thesis for the Trust remains strong and that current valuation levels represent an excellent entry point into the investment opportunity."
Shares in Polar Capital Global Financials Trust were down 8.0% in London on Monday at 113.12 pence each.
By Paul McGowan; [email protected]
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