Half-year Financial Report
Summary by AI BETAClose X
POLAR CAPITAL GLOBAL FINANCIALS TRUST PLC
(the "Company")
Unaudited Results for the half year ended 31 May 2026
Legal Entity Identifier: 549300G5SWN8EP2P4U41
13 July 2026
Financial Highlights for the half year ended 31 May 2026
|
Performance (Sterling total return)
|
For six months ended 31 May 2026 % |
Since Inception % |
||
|
Net asset value (NAV) per Ordinary share (1)~ |
4.8 |
257.1 |
||
|
Ordinary share price (2)~ |
5.7 |
230.7 |
||
|
Ordinary share price including subscription share value (3)~ |
- |
237.9 |
||
|
Benchmark (Sterling total return) (4) MSCI ACWI Financials |
3.1 |
257.7 |
||
|
Other Indices and peer group (Sterling total return) |
|
|
||
|
MSCI World Index |
9.5 |
374.8 |
||
|
FTSE All Share Index |
8.8 |
166.7 |
||
|
Lipper Financial Sector (5) |
8.3 |
218.2 |
||
|
Financials |
As at 31 May 2026 |
As at 31 May |
As at 30 November 2025 |
% Change Six months to 31 May 2026 |
|
Total net assets |
£372,003,000 |
£645,524,000 |
£376,292,000 |
-1.1 |
|
NAV per Ordinary share |
235.7p |
212.9p |
229.7p |
2.6 |
|
Ordinary share price |
225.5p |
206.5p |
218.0p |
3.4 |
|
Discount per Ordinary share~ |
4.3% |
3.0% |
5.1% |
|
|
Net gearing~ |
1.8% |
0.9% |
7.2% |
|
|
Ordinary shares in issue (excluding those held in treasury) |
157,800,000 |
303,219,365 |
163,792,224 |
-3.7 |
|
Ordinary shares held in treasury |
173,950,000 |
28,530,635 |
167,957,776 |
3.6 |
|
|
Six months to 31 May 2026 |
Six months to 31 May 2025 |
Year to 30 November 2025 |
|
Earnings per Ordinary share (6): |
|
|
|
|
Revenue Return |
3.37p |
3.26p |
5.60p |
|
Capital Return |
6.97p |
4.33p |
16.91p |
|
Total |
10.34p |
7.59p |
22.51p |
|
Dividends* |
|
|
|
|
First quarterly/interim |
2.34p |
2.60p |
2.60p |
|
Special dividend |
- |
1.60p |
1.60p |
|
Second quarterly/interim |
2.36p |
- |
2.55p |
|
Total |
4.70p |
4.20p |
6.75p |
* As per the new dividend policy, the Company declares dividends in respect of a financial year in March, June, September and December for payment at the end of the following April, July, October and January. The first quarterly dividend for the year ending 30 November 2026 was declared on 26 March 2026 and was paid on 30 April 2026 to shareholders on the register on 7 April 2026. The second quarterly dividend was declared on 15 June 2026 and will be paid on 30 July 2026, the third quarterly dividend will be declared on or around September 2026 and will be paid on 29 October 2026 and the fourth quarterly dividend will be declared on or around December 2026 and will be paid on 29 January 2027.
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 2026. 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 2026.
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 2026.
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 62 open ended funds in the period under review.
Note 6 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 and Polar Capital LLP.
|
For further information please contact: |
Simon Cordery, Chair Polar Capital Global Financials Trust Plc |
Tel: 020 7227 2700 |
|
|
Kelly Nice, Company Secretary Polar Capital Global Financials Trust Plc |
Tel: 020 7227 2700 |
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 2026.
The Trust's portfolio delivered a positive Net Asset Value total return of 4.8% in the period, outperforming the benchmark, the MSCI All Country World Index Financials Net Total Return Index, which rose 3.1%. We also saw a narrowing of the discount at which our shares trade, resulting in a share price total return of 5.7%.
Financials hit all-time highs in February before selling off as the conflict in the Middle East and the closure of the Strait of Hormuz raised concerns over the broader impact on economic growth. Despite an oil supply disruption larger than those seen in the 1970s, the sector recovered the majority of its losses as the release of strategic reserves, the rerouting of supply, and a decline in Chinese imports dampened the effect on commodity prices. Against that background financials lagged wider equity markets which hit new all-time highs in April and then again in May, led by the technology sector, amid expectations that a resolution to the Gulf stand-off would ultimately be reached which would lead to lower oil prices.
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.
NAV Discount Management
The Company's discount narrowed during the period under review, ending the period at 4.3% compared to 5.1% at the end of FY25. The Company has a policy to 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 9 July 2026, the latest practicable date, 6,781,583 Ordinary shares have been bought back, equivalent to 4.1% of the issued share capital (excluding treasury shares) at the start of the period.
The Board
There have been no changes to the membership of the Board in the six months to 31 May 2026. The Directors' biographical details are available on the Company's website and are provided in the Annual Report.
Corporate Broker
In December 2025 the Company was informed that Stifel Nicolaus Europe Limited, the Company's Corporate Broker, was no longer going to make markets in investment companies. The Board held a tender process of potential new corporate brokers and announced the appointment of Canaccord Genuity Limited as the new Corporate Broker from 19 January 2026.
Dividends
With effect from 1 December 2025 the Board 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.
The first interim dividend of 2.34p per Ordinary share was paid to Shareholders on 30 April 2026 under the new dividend policy. A second interim dividend of 2.36p per Ordinary share has been declared by the Company on 15 June 2026. This will be paid on 30 July 2026 to those Shareholders on the register on 3 July 2026.
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") and two three-year term loans. In July 2025 the Company repaid the term loans and put in place a six month extension to the RCF totalling £45m. 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 9 July 2026, the latest practicable date of calculation, the portfolio was 1.3% net cash.
Outlook
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.
Simon Cordery
Chair
13 July 2026
Investment Manager's Report for the half year ended 31 May 2026
Performance
Market backdrop
Over the six months to 31 May 2026, global financials experienced elevated volatility with a number of cross-currents impacting market sentiment. These included a supportive monetary backdrop at the turn of the calendar year, a sharp escalation in geopolitical risk centred on the Middle East, an intensifying debate over the threats and opportunities posed by artificial intelligence (AI), and a reassuring run of corporate results.
The period began well with December a positive month for financials' performance. Although the interest rate cut by the US Federal Reserve (the Fed, the US central bank) had been widely anticipated, its announcement of $40bn per month of Treasury bill purchases - intended to ease strains in short-term funding markets - was received positively. The minutes of the Federal Open Market Committee (FOMC, the Fed's rate-setting body) later revealed a more finely balanced decision than the vote implied, with several members questioning whether progress on inflation was durable enough to justify further cuts.
January was far more volatile with a combination of geopolitical events, including regime change in Venezuela, US pressure over Greenland and deadly protests in Iran, unsettling markets. Questions surrounding the appointment of the next Fed Chair, and the Department of Justice investigation into the incumbent Fed Chair Jerome Powell, added to the uncertainty. With economic data broadly surprising to the upside, however, more cyclical parts of the market outperformed and returns broadened away from the US, with certain emerging markets and Europe outperforming.
February saw financials lag the wider market as investors rotated out of cyclical and into defensive sectors, with several stocks caught up in mounting concerns over AI. These moves were then overshadowed by events at the very end of the month: on 28 February a US and Israeli strike on Iran, and the subsequent disruption to the Strait of Hormuz, triggered a spike in energy prices, with Brent crude touching $120 per barrel in March, its highest level since 2022. Global financials fell 4.9% in March, with Europe and Asia - more reliant on imported energy - hit hardest. The final two months of the period brought relief: a partial de-escalation, supported by diplomatic efforts towards a ceasefire framework, allowed energy prices to retreat towards $95 per barrel and equity markets to recover.
Against this backdrop, the Trust's net asset value (NAV) total return was 4.8% over the six months, ahead of the benchmark MSCI All Country World Financials Net Total Return Index, which returned approximately 3.1%, an outperformance of around 1.7% (all figures in sterling terms).
Key contributors to positive relative performance included stocks that benefit from the pickup in volatility such as trading platforms (IG Group Holdings) and brokerage businesses (StoneX Group). The Trust also benefited from the performance of European banks (BPER Banca) and from some potential candidates for consolidation (Hiscox). Among the biggest detractors were Nu Holdings which suffered from concerns over asset quality, HSBC Holdings (an underweight position), the London Stock Exchange Group (LSEG) which derated on AI disruption fears, and NOBA Bank Group over asset quality worries as an unsecured lender in a more uncertain economic environment.
Banks
Market commentary
The banking sector experienced elevated volatility during the period with sentiment influenced by geopolitical developments despite limited impact on reported earnings or management guidance. Relative performance differed markedly by region with European banks outperforming while US banks lagged and Asian and emerging market banks saw a mixed performance - broadly, developed Asia and North Asia outperformed while South Asia and Latin America underperformed.
European banks entered the period as a clear area of strength but endured a volatile few months. In February they sold off sharply intra-month, falling on derisking rather than any deterioration in fundamentals, even as Q4 results drove further positive earnings revisions. The March energy shock weighed most heavily on the banking sector, particularly in Europe, Japan, South Korea and India, given their greater economic sensitivity to higher energy costs. By April, however, Q1 2026 results provided reassurance with limited visible impact on asset quality from the energy dislocation. Holdings in UniCredit, Italy's second largest bank, and Erste Group Bank, an Austrian bank, both pointed to encouraging loan demand. Detail on banks' private credit exposure - concentrated in the investment banks and secured at loan-to-value ratios of around 60% - showed only modest, idiosyncratic losses in the quarter.
US banks delivered results ahead of expectations but slightly underperformed in the period (exacerbated by dollar weakness) with some fading in optimism on the pace of regulatory easing as well as a greater focus on asset quality, particularly within consumer lending. Operating trends remained solid with guidance implying double-digit earnings growth for 2026, following a 17% increase the prior year, supported by lower funding costs, a pickup in lending, a revival in capital markets activity, positive operating leverage and lower share counts. Asset quality remained broadly stable, with non-performing loans edging lower. The principal regulatory worry was President Trump's call for a one-year 10% cap on credit card interest rates, which weighed on the card lenders, although we judged the probability of it passing Congress to be low. More broadly, the direction of regulatory travel continued to be towards easing, with new leadership at the Fed and the Federal Deposit Insurance Corporation (FDIC, the largest US bank regulator) recalibrating supervision towards what they have termed responsible growth.
Mergers and acquisitions (M&A) activity was a feature. In Europe, Banco Santander, Spain's largest bank, having bought TSB in the UK, announced the acquisition of Webster Financial, a US regional bank then held in the Trust; BAWAG Group, an Austrian bank, agreed to acquire Permanent TSB (PTSB) in Ireland; and UniCredit advanced towards a near-30% stake in Alpha Bank, a Greek bank. A recurring theme was the role of AI as a cost-and-returns opportunity: UniCredit set a target for a 25% return on tangible equity by 2030, against 19% in 2025 and 6.7% in 2019, while Banco Santander targeted 20% versus around 15% today.
Trust positioning
Compared to its benchmark, the Trust retained an overweight position in European banks throughout, a smaller overweight in the US and underweight positions in Australia and China. Bank exposure ranged between roughly 46% and 49% of the portfolio over the half year. In March we reduced our European bank exposure, given the economic risks of a prolonged energy shock, while retaining the overweight, before raising risk again in April through additions to bank holdings in Europe, the US and Asia (Japan and South Korea) as tensions eased. We initiated a holding in BAWAG Group following its announced acquisition of PTSB, where management estimates point to more than 20% earnings per share growth by year three, and added to Oversea-Chinese Banking Corporation (OCBC) in Singapore, which we regard as a beneficiary of the city-state's growing status as a safe haven for global wealth. During the period, we also started a new position in Hana Financial Group (South Korea) given rerating potential linked to ongoing Value-Up corporate governance reforms along with the tailwind from improving profitability in its non-bank subsidiaries.
Insurance
Market commentary
The insurance sector in aggregate slightly lagged the benchmark over the period, although there was wide dispersion in the performance by region with Asian insurers generally performing better than those in the US and Europe.
US insurance stocks were very weak, led by brokers and the property and casualty sector. The main reason for this is concern over a softening pricing cycle in the commercial insurance sectors as high levels of profitability and strong capital levels encourage increased competition. Insurance brokers faced the additional headwind of concern over disintermediation by artificial intelligence which, while likely exaggerated, has driven a material de-rating in the sector. By contrast, the US life insurance sector outperformed, led by underwriting businesses such as Globe Life, rather than more market-sensitive businesses that sell annuities which continue to be adversely affected by worries over their exposure to private credit.
In Europe the insurance sector also lagged due to weakness among the large composite insurers and European reinsurers. An important driver of this is the relatively better performance of European banks which are seeing ongoing strong operating momentum. European reinsurers suffered from increased competition in pricing, which has been visible at the 1 January and 1 June reinsurance renewals. There has been a notable increase in M&A activity as Beazley was acquired by Zurich and there are rumours of interest in other businesses such as Hiscox. We think this trend of consolidation is likely to continue as companies use M&A as a way of achieving growth.
Asian insurers performed well, albeit in some cases this was a second order consequence of the momentum in capital expenditure (capex) related to artificial intelligence. In South Korea and Taiwan life insurers benefited meaningfully from their exposure to local equity markets which rose sharply as local players have big positions in this capex. Japanese insurers also performed well in anticipation of Bank of Japan interest rate hikes which was a similar dynamic to Japanese banks. Asian life insurers like AIA Group and Prudential had performed very strongly in 2025 but have recently been adversely impacted by concerns over a regulatory crackdown on transferring wealth between China and Hong Kong.
Trust positioning
During the market volatility caused by the conflict in the Middle East, we tactically increased our exposure to property and casualty companies, such as Chubb, due to their defensive nature and low exposure to capital markets. We have since reduced this as markets have recovered quite sharply despite the lack of resolution to the Middle East conflict.
More broadly we have been reducing our exposure to property and casualty which used to be a material overweight position in the portfolio but is now seeing stocks underperform in anticipation of a weaker earnings outlook. We also have no exposure to insurance brokers for similar reasons which was a material tailwind for the portfolio during the period.
We have redeployed capital into insurers we think should be able to sustain earnings growth in a softening market (Hamilton Insurance Group; Intact Financial) or could be beneficiaries of increased consolidation in the industry (Hiscox; Lancashire Holdings).
The Trust has been overweight the US life insurance sector for some time, primarily through holdings in Globe Life and RGA (Reinsurance Group of America). They have low sensitivity to capital markets and we think there is an opportunity for their valuations to rerate on continued operational delivery.
In Europe, we have holdings in Admiral Group, which we think should benefit from greater concentration in the UK motor market, and Storebrand, which is seeing strong growth in the Norwegian pensions and asset management markets.
We have large positions in Asian life insurers AIA Group and Prudential which performed well in 2025 due to high levels of new business sales in Hong Kong and wider Asia. However, we have reduced this significantly more recently on increased risk of intervention by Chinese regulators.
Diversified financials
Market commentary
Asset managers
Unsurprisingly, against the backdrop of global equity markets up over 10%, asset managers, investment banks and trust banks saw the best performance in the sector over the past six months. Traditional asset managers have suffered fund outflows and fee pressure leading to a derating. Nevertheless, the flow picture has improved somewhat and higher equity markets feed through to higher earnings. There has also been industry consolidation with Schroders selling itself to Nuveen for nearly £10bn and Trian Fund Management acquiring Janus Henderson for around $7.4bn.
Alternative asset managers have continued to come under pressure. A slower pace of private equity deals and a tougher fundraising environment were compounded by concerns over underwriting standards in private credit, brought into focus by the collapse of First Brands and Tricolor in 2025 and by JP Morgan chief executive Jamie Dimon's warning that, in effect, where one problem loan appears, others usually follow. Redemption requests at several retail-focused private credit funds and write-downs at a listed lending vehicle hit sentiment, as did fears that the industry's large exposure to software could be vulnerable to AI disruption.
Trading and savings platforms
Trading and savings platforms in the US saw a large dispersion in returns. Interactive Brokers Group, a leading US savings platform, performed well as it reported a >30% increase in client accounts and it continues to outperform its peers. StoneX Group, a US-based broker that provides institutions with ways to hedge their commodity and market exposure, has seen strong trading activity due to increased volatility and is delivering structural growth through consolidation. In contrast, Charles Schwab was affected by concern around the impact on its profitability of clients moving their cash out of lower earning accounts into money market funds. Robinhood Markets suffered due to its exposure to crypto trading which was affected by the weakness in crypto currencies.
European companies also saw mixed performance. IG Group Holdings and Plus500, which offer retail trading via spread bets and contracts for difference, benefited from heightened volatility in financial markets which led to upgraded earnings guidance. In contrast, larger players Swissquote and FlatexDEGIRO suffered negative share price performance. FlatexDEGIRO released very conservative earnings guidance relative to consensus expectations and the market became concerned that there is increased competition in Germany ahead of pension reform.
Payment companies, data providers and exchanges
Payment companies have continued to struggle over the six month reporting period. The operating performance of the network businesses, Visa and MasterCard, has remained resilient. However, sentiment weighed on share prices as the market was concerned that new forms of payment such as stable coins or agentic commerce could disrupt payment systems. They were also impacted by Trump's proposed cap on credit card fees. Data providers such as S&P Global and Moody's also came under pressure over fear that AI would reduce the value of their services as AI-sourced data could erode the value of their proprietary datasets.
Most exchanges performed disappointingly, with LSEG (London Stock Exchange Group) falling sharply on AI disruption concerns before becoming a target by an activist investor and seeing a partial recovery in its share price. Nasdaq, Inc. also lagged as the market questioned its transformation into a diversified financial technology business. Similarly, International Continental Exchange struggled, weighed down by its mortgage technology division. Cboe Global Markets was the clear exception, reporting record results thanks to volatility in markets as it currently owns the licence to trade S&P 500 Index options. It has also benefited from the growth in zero-days-to-expiration options that have seen significant growth due to demand from retail investors.
Trust positioning
The Trust has for some time had a large overweight position in businesses that benefit from increased retail participation in trading and elevated market volatility across various asset classes. Significant holdings in StoneX Group, Interactive Brokers Group, IG Group Holdings and Plus500 have been meaningful positive contributors to performance.
We have retained an underweight position in alternative asset managers, selling a holding in EQT during the period and leaving Blackstone, the largest and most diversified of the group with over $1trn of assets under management, as the only remaining holding. We have a holding in Affiliated Managers Group, a diversified asset manager with stakes in 40 independent asset managers, including Artemis in the UK.
We sold holdings in LSEG and Deutsche Boerse during the period on the back of weakness in their share prices. Our largest exchange is Miami International Holdings that operates several platforms to trade options. We retain holdings in Visa and MasterCard which we reduced earlier in the reporting period. However, we have since added to them and increased the holding in Visa at the expense of the holding in MasterCard. We believe recent share price falls were an attractive opportunity to increase our exposure.
The impact of AI
Artificial intelligence has become one of the most important debates running through the sector, and it cuts both ways. On the threat side, the market has worried that AI could disintermediate payment networks, erode the data 'moats' of exchanges and rating agencies, expose alternative asset managers with large software investments and, in a more dystopian reading, drive higher white-collar unemployment that would feed through to banks and consumer finance businesses. These fears drove sharp, often indiscriminate selloffs during the period which, in our view, sometimes failed to distinguish between genuinely exposed businesses and those whose data and franchises are more durable.
On the opportunity side, banking and insurance are widely seen as among the largest potential beneficiaries of AI, precisely because they are so process driven. Independent studies have pointed to substantial cost savings from automating routine customer interactions and streamlining middle office functions, and management teams have begun to quantify the prize: JPMorgan has described processing 50% more clients with 20% fewer staff in onboarding, while UniCredit and Banco Santander have lifted medium-term return targets with cost reduction, enabled by AI, as a central driver. We are dedicating increasing research time to this theme, facilitated by the incorporation of AI into our internal processes where automation is supporting productivity. Our response has been to reduce exposure to the subsectors most exposed to disruption while leaning into the areas, notably banks, where AI looks more like an opportunity than a threat. The indiscriminate selling has, at times, created attractive entry points, but it will take time to disprove the bear case and, given the rapid advances in AI technology and use cases, we are cautious on taking contrarian positions in 'AI loser' categories.
Outlook
The sector lagged equity markets during the period. We think this has less to do with the relative attractions of financials and more to do with the fact that AI-related investment is dominating equity market returns.
We remain constructive on the fundamental outlook for financials. The sector is delivering the highest level of returns that we have seen since the global financial crisis. Interest rates have normalised which, combined with efficiency gains, is driving materially higher levels of profitability. Strong balance sheets and disciplined capital allocation are facilitating high levels of capital return to shareholders. Furthermore, the sector's valuation looks attractive, at 13x forward earnings, which is a significant discount to other sectors.
The portfolio's core positioning geographically remained broadly unchanged during the period with, compared to the benchmark, an overweight to Europe, a modest underweight to the US and underweights to Australia and China, with a selective approach to emerging markets. As less than half of the sector is US-listed, against around two-thirds for global equities, financials also offer useful diversification away from the highly concentrated US technology complex and benefited in relative terms from a weaker US dollar over the period.
The principal risk to this view is geopolitical: a renewed escalation in the Middle East and a sustained energy shock would test the region. The de-escalation seen in April and May is encouraging, but the situation remains unresolved, and we have deliberately taken a balanced approach to portfolio construction. Looking forward, there has been a notable increase in M&A activity which we think reflects the fact that industry participants see current valuations as attractive. There is also a clear move to reduce the regulatory burden faced by the sector which is most clearly visible in the US, and we expect this to be an ongoing positive theme for the next few years.
Nick Brind, George Barrow and Tom Dorner
13 July 2026
We draw shareholders' attention to https://www.polarcapitalglobalfinancialstrust.com/ for monthly factsheets, regular investment commentary and portfolio updates
Full Portfolio
|
|
|
|
|
|
Market Value £'000 |
% of total net assets |
||
|
2026 |
2025 |
Stock |
Sector |
Geographical Exposure |
31 May 2026 |
30 November 2025 |
31 May 2026 |
30 November 2025 |
|
1 |
(1) |
JP Morgan Chase |
Banks |
North America |
24,023 |
27,834 |
6.4% |
7.4% |
|
2 |
(3) |
Bank of America |
Banks |
North America |
14,348 |
15,859 |
3.9% |
4.2% |
|
3 |
(5) |
Royal Bank of Canada |
Banks |
North America |
11,843 |
11,404 |
3.2% |
3.0% |
|
4 |
(18) |
Bank of New York Mellon |
Financial Services |
North America |
11,151 |
7,295 |
3.0% |
1.9% |
|
5 |
(4) |
Visa |
Financial Services |
North America |
11,099 |
11,780 |
3.0% |
3.1% |
|
6 |
(9) |
Citigroup |
Banks |
North America |
10,495 |
9,284 |
2.8% |
2.5% |
|
7 |
(52) |
IG Group |
Financial Services |
United Kingdom |
9,699 |
3,388 |
2.6% |
0.9% |
|
8 |
(2) |
Mastercard |
Financial Services |
North America |
8,903 |
16,466 |
2.4% |
4.4% |
|
9 |
(12) |
Morgan Stanley |
Financial Services |
North America |
8,704 |
8,645 |
2.3% |
2.3% |
|
10 |
(42) |
Mizuho Financial Group |
Banks |
Japan |
8,583 |
4,742 |
2.3% |
1.3% |
|
Top 10 investments |
|
|
118,848 |
|
31.9% |
|
||
|
11 |
(11) |
Banco Santander |
Banks |
Europe |
8,504 |
9,014 |
2.2% |
2.4% |
|
12 |
(10) |
Globe Life |
Insurance |
North America |
7,670 |
9,260 |
2.1% |
2.5% |
|
13 |
(25) |
UniCredit |
Banks |
Europe |
7,101 |
6,238 |
1.9% |
1.7% |
|
14 |
(13) |
Berkshire Hathaway |
Financial Services |
North America |
7,006 |
8,065 |
1.9% |
2.1% |
|
15 |
(14) |
Prudential |
Insurance |
Asia (ex-Japan) |
6,936 |
7,867 |
1.9% |
2.1% |
|
16 |
(7) |
AIA Group |
Insurance |
Asia (ex-Japan) |
6,892 |
10,062 |
1.9% |
2.7% |
|
17 |
(-) |
HSBC Holdings |
Banks |
United Kingdom |
6,795 |
- |
1.8% |
- |
|
18 |
(19) |
Moneybox (unquoted) |
Financial Services |
United Kingdom |
6,772 |
6,772 |
1.8% |
1.8% |
|
19 |
(6) |
BPER BANCA |
Banks |
Europe |
6,612 |
10,627 |
1.8% |
2.8% |
|
20 |
(-) |
AIB Group |
Banks |
Europe |
6,298 |
- |
1.7% |
- |
|
Top 20 investments |
|
|
189,434 |
|
50.9% |
|
||
|
21 |
(-) |
Admiral Group |
Insurance |
United Kingdom |
6,234 |
- |
1.7% |
- |
|
22 |
(16) |
Sumitomo Mitsui Financial |
Banks |
Japan |
6,228 |
7,580 |
1.7% |
2.0% |
|
23 |
(31) |
Affiliated Managers Group |
Financial Services |
North America |
6,196 |
5,950 |
1.6% |
1.5% |
|
24 |
(44) |
Plus500 |
Financial Services |
Asia (ex-Japan) |
6,073 |
4,599 |
1.6% |
1.2% |
|
25 |
(-) |
East West Bancorp |
Banks |
North America |
6,007 |
- |
1.6% |
- |
|
26 |
(21) |
NU Holdings |
Banks |
Latin America |
5,814 |
6,634 |
1.6% |
1.8% |
|
27 |
(20) |
Capital One Financial |
Financial Services |
North America |
5,799 |
6,767 |
1.6% |
1.8% |
|
28 |
(34) |
Bank of Cyprus Holdings |
Banks |
Europe |
5,734 |
5,598 |
1.5% |
1.5% |
|
29 |
(-) |
Oversea Chinese Banking Corporation |
Banks |
Asia (ex-Japan) |
5,590 |
- |
1.5% |
- |
|
30 |
(-) |
Chubb Limited |
Insurance |
Europe |
5,507 |
- |
1.5% |
- |
|
Top 30 investments |
|
|
248,616 |
|
66.8% |
|
||
|
31 |
(-) |
Hamilton Insurance |
Insurance |
North America |
5,384 |
- |
1.5% |
- |
|
32 |
(22) |
Alpha Bank |
Banks |
Eastern Europe |
5,217 |
6,435 |
1.4% |
1.7% |
|
33 |
(33) |
Grupo Financiero Banorte |
Banks |
Latin America |
4,991 |
5,603 |
1.3% |
1.5% |
|
34 |
(-) |
Miami International |
Financial Services |
North America |
4,948 |
- |
1.3% |
- |
|
35 |
(-) |
Standard Chartered |
Banks |
United Kingdom |
4,901 |
- |
1.3% |
- |
|
36 |
(41) |
Reinsurance Group of America |
Insurance |
North America |
4,874 |
4,790 |
1.3% |
1.3% |
|
37 |
(-) |
BAWAG Group AG |
Banks |
Europe |
4,634 |
- |
1.2% |
- |
|
38 |
(47) |
Irish Residential Properties REIT |
Equity Real Estate Investment Trusts (REITs) |
Europe |
4,480 |
3,955 |
1.2% |
1.1% |
|
39 |
(-) |
Storebrand |
Insurance |
Europe |
4,357 |
- |
1.2% |
- |
|
40 |
(60) |
ANZ Group Holdings |
Banks |
Asia (ex-Japan) |
4,196 |
1,855 |
1.2% |
0.5% |
|
Top 40 investments |
|
|
296,598 |
|
79.7% |
|
||
|
41 |
(-) |
Moodys |
Financial Services |
North America |
4,182 |
- |
1.1% |
- |
|
42 |
(39) |
Stonex Group |
Financial Services |
North America |
4,115 |
4,855 |
1.1% |
1.3% |
|
43 |
(32) |
Intact Financial Corporation |
Insurance |
North America |
4,001 |
5,717 |
1.1% |
1.5% |
|
44 |
(-) |
Hiscox |
Insurance |
United Kingdom |
3,967 |
- |
1.1% |
- |
|
45 |
(-) |
Hana Financial |
Banks |
Asia (ex-Japan) |
3,775 |
- |
1.0% |
- |
|
46 |
(8) |
Erste Group |
Banks |
Europe |
3,767 |
9,422 |
1.0% |
2.5% |
|
47 |
(-) |
Resona |
Banks |
Japan |
3,735 |
- |
1.0% |
- |
|
48 |
(30) |
Shinhan Financial Group |
Banks |
Asia (ex-Japan) |
3,732 |
5,982 |
1.0% |
1.6% |
|
49 |
(45) |
BlackStone Group |
Financial Services |
North America |
3,684 |
4,438 |
1.0% |
1.2% |
|
50 |
(46) |
China Life Insurance |
Insurance |
Asia (ex-Japan) |
3,631 |
4,372 |
1.0% |
1.1% |
|
Top 50 investments |
|
|
335,187 |
|
90.1% |
|
||
|
51 |
(50) |
ICICI Bank |
Banks |
Asia (ex-Japan) |
3,620 |
3,791 |
1.0% |
1.0% |
|
52 |
(-) |
Wise |
Financial Services |
United Kingdom |
3,369 |
- |
0.9% |
- |
|
53 |
(56) |
Personal Group |
Insurance |
United Kingdom |
2,982 |
2,400 |
0.8% |
0.6% |
|
54 |
(59) |
Interactive Brokers Group |
Financial Services |
North America |
2,906 |
2,310 |
0.8% |
0.6% |
|
55 |
(36) |
FlatexDEGIRO |
Financial Services |
Europe |
2,796 |
5,215 |
0.8% |
1.4% |
|
56 |
(55) |
Investec preference |
Fixed Income |
Fixed Income |
2,623 |
2,482 |
0.7% |
0.7% |
|
57 |
(54) |
Deutsche Beteiligungs 5.5% 2030 Convertible Bond |
Fixed Income |
Fixed Income |
2,559 |
2,667 |
0.7% |
0.7% |
|
58 |
(57) |
Atom Bank 11.5% 2035 Bond |
Fixed Income |
Fixed Income |
2,318 |
2,371 |
0.6% |
0.6% |
|
59 |
(58) |
Coinbase Global |
Financial Services |
North America |
2,132 |
2,349 |
0.6% |
0.6% |
|
60 |
(24) |
The Hartford Insurance Group |
Insurance |
North America |
2,032 |
6,341 |
0.5% |
1.7% |
|
Top 60 investments |
|
|
362,524 |
|
97.5% |
|
||
|
61 |
(29) |
NOBA Bank |
Banks |
Europe |
2,021 |
6,114 |
0.5% |
1.6% |
|
62 |
(-) |
Lancashire Holdings |
Insurance |
United Kingdom |
2,008 |
- |
0.5% |
- |
|
63 |
(-) |
PKO Bank Polski |
Banks |
Eastern Europe |
1,841 |
- |
0.5% |
- |
|
64 |
(61) |
Oberon Investments Group CLN 12% 09/2028 (unquoted) |
Financial Services |
United Kingdom |
1,620 |
1,530 |
0.5% |
0.4% |
|
65 |
(62) |
Atom Bank 9.5% Perp Bond |
Fixed Income |
Fixed Income |
1,487 |
1,511 |
0.4% |
0.4% |
|
66 |
(-) |
DB Insurance |
Insurance |
Asia (ex-Japan) |
1,424 |
- |
0.4% |
- |
|
67 |
(63) |
Vanquis Banking Group 10.875% Perp Bond |
Fixed Income |
Fixed Income |
1,389 |
1,401 |
0.4% |
0.4% |
|
68 |
(64) |
Atom Bank (unquoted) |
Banks |
United Kingdom |
1,281 |
1,281 |
0.3% |
0.3% |
|
69 |
(65) |
Riverstone Credit Opportunities |
Fixed Income |
Fixed Income |
876 |
1,136 |
0.2% |
0.3% |
|
Total Investments |
|
|
376,471 |
|
101.2% |
|
||
|
Other net liabilities |
|
|
(4,468) |
|
(1.2%) |
|
||
|
Total net assets |
|
|
372,003 |
|
100.0% |
|
||
Note: Figures in brackets denote comparative rankings as at 30 November 2025.
Portfolio Analysis
|
Geographical Exposure* |
Benchmark weighting as at 31 May 2026** |
31 May 2026 |
30 November 2025 |
|
North America |
51.7% |
46.1% |
49.5% |
|
Europe |
16.6% |
16.5% |
20.9% |
|
United Kingdom |
5.0% |
13.3% |
11.5% |
|
Asia (ex-Japan) |
15.8% |
12.5% |
13.7% |
|
Japan |
5.6% |
5.0% |
3.3% |
|
Fixed Income |
- |
3.0% |
3.1% |
|
Latin America |
1.6% |
2.9% |
3.2% |
|
Eastern Europe |
1.0% |
1.9% |
1.7% |
|
Other net liabilities |
- |
(1.2%) |
(6.9%) |
|
Total |
|
100.0% |
100.0% |
|
Sector Exposure* |
Benchmark weighting as at 31 May 2026** |
31 May 2026 |
30 November 2025 |
|
Banks |
48.8% |
48.6% |
50.7% |
|
Financial services |
34.3% |
29.9% |
36.5% |
|
Insurance |
16.8% |
18.5% |
15.5% |
|
Fixed Income |
- |
3.0% |
3.1% |
|
Equity Real Estate Investment Trusts (REITs) |
- |
1.2% |
1.1% |
|
Other net liabilities |
- |
(1.2%) |
(6.9%) |
|
Total |
|
100.0% |
100.0% |
|
Market Capitalisation* |
Benchmark weighting as at 31 May 2026** |
31 May 2026 |
30 November 2025~ |
|
Large Cap |
97.8% |
77.9% |
84.6% |
|
Mid Cap |
1.4% |
8.0% |
6.7% |
|
Small Cap |
0.2% |
7.7% |
8.2% |
|
Micro Cap |
- |
4.6% |
4.3% |
|
Fixed Income |
- |
3.0% |
3.1% |
|
Other net liabilities |
- |
(1.2%) |
(6.9%) |
|
Total |
|
100.0% |
100.0% |
* Based on the net assets as at 31 May 2026 of £372.0m (2025: £376.3m)
** 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.
~ With effect from February 2026, the market capitalisation bandings were changed from dynamic to standard static market capitalisation bandings. The year ended 30 November 2025 data has been re-presented based on the static market capitalisation banding.
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 39 to 43 of the Annual Report for the year ended 30 November 2025. 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 2026. 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 2026; 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 2026 has not been audited or reviewed by the Auditors. The half-year financial report was approved by the Board on 13 July 2026.
On behalf of the Board
Simon Cordery
Chair
Statement of Comprehensive Income for the half year ended 31 May 2026
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
||||||||
|
Notes |
Half year ended 31 May 2026 |
Half year ended 31 May 2025 |
Year ended 30 November 2025 |
||||||||
|
|
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 |
6,437 |
- |
6,437 |
11,539 |
- |
11,539 |
16,172 |
- |
16,172 |
|
|
Other operating income |
2 |
304 |
- |
304 |
723 |
- |
723 |
1,438 |
- |
1,438 |
|
|
Gains on investments held at fair value |
|
- |
12,446 |
12,446 |
- |
16,423 |
16,423 |
- |
46,207 |
46,207 |
|
|
Gains/(losses) on derivatives |
|
- |
673 |
673 |
- |
886 |
886 |
- |
(669) |
(669) |
|
|
Other currency (losses)/gains |
|
- |
(77) |
(77) |
- |
(550) |
(550) |
- |
1,165 |
1,165 |
|
|
Total income |
6,741 |
13,042 |
19,783 |
12,262 |
16,759 |
29,021 |
17,610 |
46,703 |
64,313 |
||
|
Expenses |
|
|
|
|
|
|
|
|
|
||
|
Investment management fee |
(257) |
(1,030) |
(1,287) |
(437) |
(1,747) |
(2,184) |
(712) |
(2,849) |
(3,561) |
||
|
Other administrative expenses |
(433) |
(19) |
(452) |
(457) |
(22) |
(479) |
(1,037) |
(59) |
(1,096) |
||
|
Total expenses |
(690) |
(1,049) |
(1,739) |
(894) |
(1,769) |
(2,663) |
(1,749) |
(2,908) |
(4,657) |
||
|
Profit before finance costs and tax |
6,051 |
11,993 |
18,044 |
11,368 |
14,990 |
26,358 |
15,861 |
43,795 |
59,656 |
||
|
Finance costs |
(183) |
(730) |
(913) |
(431) |
(1,725) |
(2,156) |
(702) |
(2,806) |
(3,508) |
||
|
Profit before tax |
5,868 |
11,263 |
17,131 |
10,937 |
13,265 |
24,202 |
15,159 |
40,989 |
56,148 |
||
|
Tax |
(442) |
(30) |
(472) |
(1,059) |
(133) |
(1,192) |
(1,574) |
46 |
(1,528) |
||
|
Net profit for the period and total comprehensive income |
5,426 |
11,233 |
16,659 |
9,878 |
13,132 |
23,010 |
13,585 |
41,035 |
54,620 |
||
|
Earnings per ordinary share (pence) |
3 |
3.37 |
6.97 |
10.34 |
3.26 |
4.33 |
7.59 |
5.60 |
16.91 |
22.51 |
|
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 2026
|
|
|
|
(Unaudited) Half year ended 31 May 2026 |
|||||||
|
Notes |
Called up share capital £'000 |
Capital redemption reserve £'000 |
Share premium reserve £'000 |
Special distributable reserve £'000 |
Capital reserves £'000 |
Revenue reserve £'000 |
Total Equity £'000 |
|
||
|
Total equity at 1 December 2025 |
|
16,588 |
251 |
- |
113,266 |
232,902 |
13,285 |
376,292 |
|
|
|
Total comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
Profit for the half year ended 31 May 2026 |
|
- |
- |
- |
- |
11,233 |
5,426 |
16,659 |
|
|
|
Transactions with owners, recorded directly to equity: |
|
|
|
|
|
|
|
|
|
|
|
Shares bought back and held in treasury |
6 |
- |
- |
- |
(13,058) |
- |
- |
(13,058) |
|
|
|
Equity dividends paid |
|
- |
- |
- |
- |
- |
(7,890) |
(7,890) |
|
|
|
Total equity at 31 May 2026 |
|
16,588 |
251 |
- |
100,208 |
244,135 |
10,821 |
372,003 |
|
|
|
|
||||||||||
|
|
|
|
(Unaudited) Half year ended 31 May 2025 |
|||||||
|
|
Called up share capital £'000 |
Capital redemption reserve £'000 |
Share premium reserve £'000 |
Special distributable reserve £'000 |
Capital reserves £'000 |
Revenue reserve £'000 |
Total Equity £'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 |
|
|
|
|
|
|
(Audited) Year ended 30 November 2025 |
|||||||
|
|
Called up share capital £'000 |
Capital redemption reserve £'000 |
Share premium reserve £'000 |
Special distributable reserve £'000 |
Capital reserves £'000 |
Revenue reserve £'000 |
Total Equity £'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) |
|
- |
- |
- |
(280,368) |
- |
- |
(280,368) |
|
|
|
Shares bought back and held in treasury |
6 |
- |
- |
- |
(13,814) |
- |
- |
(13,814) |
|
|
|
Equity dividends paid |
|
- |
- |
- |
- |
- |
(13,824) |
(13,824) |
|
|
|
Total equity at 30 November 2025 |
|
16,588 |
251 |
- |
113,266 |
232,902 |
13,285 |
376,292 |
|
|
* Following an application to the Court on 13 May 2025, the Company has cancelled its share premium and converted it to a distributable reserve.
The notes to follow form part of these financial statements.
Balance Sheet as at 31 May 2026
|
|
Notes |
(Unaudited) 31 May 2026 £'000 |
(Unaudited) 31 May 2025 £'000 |
(Audited) 30 November 2025 £'000 |
|
Non-current assets |
|
|
|
|
|
Investments held at fair value through profit or loss |
|
376,471 |
649,453 |
402,324 |
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
35,373 |
62,254 |
13,665 |
|
Fair value of open derivative contracts |
|
- |
1,217 |
560 |
|
Receivables |
|
5,264 |
15,143 |
9,797 |
|
|
|
40,637 |
78,614 |
24,022 |
|
Total assets |
|
417,108 |
728,067 |
426,346 |
|
Current liabilities |
|
|
|
|
|
Bank overdraft |
|
- |
(378) |
(415) |
|
Fair value of open derivative contracts |
|
(89) |
(42) |
- |
|
Payables |
|
(5,016) |
(3,997) |
(9,472) |
|
Bank Loan |
|
(40,000) |
(77,559) |
(40,000) |
|
|
|
(45,105) |
(81,976) |
(49,887) |
|
Non-current Liabilities |
|
|
|
|
|
Indian capital gains tax provision |
|
- |
(567) |
(167) |
|
|
|
- |
(567) |
(167) |
|
Net assets |
|
372,003 |
645,524 |
376,292 |
|
Equity attributable to equity shareholders |
|
|
|
|
|
Called up share capital |
|
16,588 |
16,588 |
16,588 |
|
Capital redemption reserve |
|
251 |
251 |
251 |
|
Special distributable reserve |
|
100,208 |
406,955 |
113,266 |
|
Capital reserves |
|
244,135 |
204,999 |
232,902 |
|
Revenue reserve |
|
10,821 |
16,731 |
13,285 |
|
Total equity |
|
372,003 |
645,524 |
376,292 |
|
Net asset value per Ordinary share (pence) |
5 |
235.74 |
212.89 |
229.74 |
|
|
||||
|
|
||||
The notes to follow form part of these financial statements.
Simon Cordery
Chair
13 July 2026
Cash Flow Statement for the half year ended 31 May 2026
|
|
(Unaudited) Half year ended 31 May 2026 £'000 |
(Unaudited) Half year ended 31 May 2025 £'000 |
(Audited) Year ended 30 November 2025 £'000 |
|
Cash flows from operating activities |
|
|
|
|
Profit before tax |
17,131 |
24,202 |
56,148 |
|
Adjustment for non-cash items: |
|
|
|
|
Profit on investments held at fair value through profit or loss |
(12,446) |
(16,423) |
(46,207) |
|
(Gains)/losses on derivative financial instruments |
(673) |
(886) |
669 |
|
Scrip dividends received |
- |
42 |
(42) |
|
Amortisation on fixed interest securities |
2 |
(17) |
(22) |
|
Adjusted profit before tax |
4,014 |
6,918 |
10,546 |
|
Adjustments for: |
|
|
|
|
Purchases of investments, including transaction costs |
(211,734) |
(312,151) |
(532,430) |
|
Sales of investments, including transaction costs |
251,682 |
347,243 |
854,805 |
|
Purchases of derivative financial instruments |
(1,981) |
(7,154) |
(3,544) |
|
Proceeds on disposal of derivative financial instruments |
3,305 |
7,214 |
4,550 |
|
(Increase)/decrease in receivables |
(1,234) |
477 |
1,894 |
|
Decrease in payables |
(340) |
(19) |
(362) |
|
Indian capital gains tax |
(191) |
(146) |
(411) |
|
Greek sales tax |
(6) |
(3) |
(14) |
|
Overseas tax deducted at source |
(485) |
(614) |
(1,178) |
|
Net cash generated from operating activities |
43,030 |
41,765 |
333,856 |
|
Cash flows from financing activities |
|
|
|
|
Shares repurchased from tender offer into treasury (including costs) |
- |
- |
(280,368) |
|
Shares repurchased into treasury |
(13,008) |
- |
(13,814) |
|
Tender offer costs paid |
(9) |
(20) |
- |
|
Loan repaid |
- |
- |
(39,181) |
|
Exchange gains on the loan facility |
- |
(1,376) |
(1,597) |
|
Equity dividends paid |
(7,890) |
(6,671) |
(13,824) |
|
Net cash used in financing activities |
(20,907) |
(8,067) |
(348,784) |
|
Net increase/(decrease) in cash and cash equivalents |
22,123 |
33,698 |
(14,928) |
|
Cash and cash equivalents at the beginning of the period |
13,250 |
28,178 |
28,178 |
|
Cash and cash equivalents at the end of the period |
35,373 |
61,876 |
13,250 |
The notes to follow form part of these financial statements.
Notes to the Financial Statements for the half year ended 31 May 2026
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 2026.
The unaudited financial statements to 31 May 2026 have been prepared using the accounting policies used in the Company's financial statements to 30 November 2025. 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 2026 and 31 May 2025 have not been audited. The figures and financial information for the year ended 30 November 2025 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 2025, 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 2025.
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 2026 the Company's total assets exceeded its total liabilities by a multiple of over 9.2. 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 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. 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) For the half year ended 31 May £'000 |
(Unaudited) For the half year ended 31 May £'000 |
(Audited) For the year ended 30 November 2025 £'000 |
|
Investment income |
|
|
|
|
Revenue: |
|
|
|
|
UK dividends |
814 |
1,307 |
2,143 |
|
Overseas dividends |
5,203 |
8,890 |
12,238 |
|
Scrip dividends |
- |
42 |
42 |
|
Interest on debt securities |
420 |
1,300 |
1,749 |
|
Total investment income allocated to revenue |
6,437 |
11,539 |
16,172 |
|
|
|
|
|
|
Included within income from investments is £665,000 (31 May 2025: £404,000 and 30 November 2025: £505,000) of special dividends classified as revenue in nature. No special dividends have been recognised in capital (31 May 2025: £nil and 30 November 2025: £nil). |
|||
|
|
|
|
|
|
Other operating income |
|
|
|
|
Bank interest |
304 |
723 |
1,426 |
|
Other Interest |
- |
- |
12 |
|
Total other operating income |
304 |
723 |
1,438 |
3 Earnings per ordinary share
|
|
(Unaudited) For the half year ended 31 May £'000 |
(Unaudited) For the half year ended 31 May £'000 |
(Audited) For the year ended 30 November 2025 £'000 |
|
Basic earnings per share |
|
|
|
|
Net profit for the period: |
|
|
|
|
Revenue |
5,426 |
9,878 |
13,585 |
|
Capital |
11,233 |
13,132 |
41,035 |
|
Total |
16,659 |
23,010 |
54,620 |
|
Weighted average number of shares in issue during the period |
161,194,468 |
303,219,365 |
242,603,469 |
|
Basic - Ordinary shares (pence) |
|
|
|
|
Revenue |
3.37p |
3.26p |
5.60p |
|
Capital |
6.97p |
4.33p |
16.91p |
|
Total |
10.34p |
7.59p |
22.51p |
As at 31 May 2026 there were no potentially dilutive shares in issues (31 May 2025 and 30 November 2025: same).
4 Investments Held At Fair Value
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'.
The following tables set out the fair value measurements using the IFRS 7 hierarchy at 31 May 2026, 31 May 2025 and 30 November 2025:
|
|
(Unaudited) For the half year ended 31 May 2026 |
|||
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
Equity Investments and derivative financial instruments |
355,546 |
(89) |
8,053 |
363,510 |
|
Interest bearing securities |
11,252 |
- |
- |
11,252 |
|
Convertible Loan Note |
- |
- |
1,620 |
1,620 |
|
Total |
366,798 |
(89) |
9,673 |
376,382 |
The Level 2 investment relates to unsettled forward currency contracts.
The Level 3 investment relates to the shares in Atom Bank, Moneybox and Oberon Investments Group CLN 12% 09/2028.
|
|
(Unaudited) For the half year ended 31 May 2025 |
|||
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|
Equity Investments and derivative financial instruments |
619,079 |
1,175 |
6,699 |
626,953 |
|
Interest bearing securities |
23,675 |
- |
- |
23,675 |
|
Total |
642,754 |
1,175 |
6,699 |
650,628 |
The Level 2 investment relates to the Bank of China and Industrial & Commercial Call Options, Euro Stoxx Put Option and unsettled forward currency contracts.
The Level 3 investment relates to the shares in Atom Bank and Moneybox.
|
|
(Audited) For the year ended 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.
5 Net Asset Value per Ordinary Share
|
|
(Unaudited) For the half year ended 31 May
|
(Unaudited) For the half year ended 31 May
|
(Audited) For the year ended 30 November 2025
|
|
Net assets attributable to Ordinary shareholders (£'000) |
372,003 |
645,524 |
376,292 |
|
Ordinary shares in issue at end of period |
157,800,000 |
303,219,365 |
163,792,224 |
|
Net asset value per Ordinary share (pence) |
235.74 |
212.89 |
229.74 |
As at 31 May 2026 there were no potentially dilutive shares in issues (31 May 2025 and 30 November 2025: same).
6 Share Capital
During the six months ended 31 May 2026, there were 5,992,224 ordinary shares repurchased into treasury (31 May 2025: £nil; 30 November 2025: 139,427,141) for a total consideration of £13,058,000 (31 May 2025: £nil; 30 November 2025: £293,573,000). Following this, the company's issued share capital consists of 157,800,000 ordinary shares and an additional 173,950,000 ordinary shares held in treasury.
7 Dividends
With effect from 1 December 2025 the Board had adopted an enhanced dividend policy under which the Company will aim to pay, in the absence of unforeseen circumstances, an annual dividend equivalent to approximately 4% 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 for the year ending 30 November 2026 was paid on 30 April 2026, the second quarterly dividend was declared on 15 June 2026 and will be paid on 30 July 2026, the third quarterly dividend will be declared on or around September 2026 and will be paid on 29 October 2026 and the fourth quarterly dividend will be declared on or around December 2026 and will be paid on 29 January 2027.
8 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 2026.
9 Post Balance Sheet Events
After the period end, a further 789,359 ordinary shares were repurchased into treasury. Following these shares repurchases, the total number of ordinary shares in issue was 331,750,000 of which 174,739,359 shares were held in treasury as at 9 July 2026.
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.
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 2025. 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
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 (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.
|
|
|
For the half year ended 31 May 2026 |
Year ended 30 November 2025 |
|
Opening NAV per share |
a |
229.7p |
207.7p |
|
|
|
|
|
|
Closing NAV per share |
b |
235.7p |
229.7p |
|
Dividend reinvestment factor |
c |
1.021030 |
1.029837 |
|
Adjusted closing NAV per share |
d=b*c |
240.7p |
236.6p |
|
NAV total return for the period |
(d/a)-1 |
4.8% |
13.9% |
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 31 May 2026 |
Year ended 30 November 2025 |
|
NAV per share at inception |
a |
98.0p |
98.0p |
|
|
|
|
|
|
Closing NAV per share |
b |
235.7p |
229.7p |
|
Dividend reinvestment factor |
c |
1.484866 |
1.454352 |
|
Adjusted closing NAV per share |
d=b*c |
350.0p |
334.1p |
|
NAV total return since inception |
(d/a)-1 |
257.1% |
240.9% |
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 31 May 2026 |
Year ended 30 November 2025 |
|
Opening share price |
a |
218.0p |
196.2p |
|
|
|
|
|
|
Closing share price |
b |
225.5p |
218.0p |
|
Dividend reinvestment factor |
c |
1.021941 |
1.030603 |
|
Adjusted closing share price |
d=b*c |
230.4p |
224.7p |
|
Share price total return for the period |
(d/a)-1 |
5.7% |
14.5% |
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 31 May 2026 |
Year ended 30 November 2025 |
|
Share price at inception |
a |
100.0p |
100.0p |
|
|
|
|
|
|
Closing share price |
b |
225.5p |
218.0p |
|
Dividend reinvestment factor |
c |
1.466386 |
1.434862 |
|
Adjusted closing share price |
d=b*c |
330.7p |
312.8p |
|
Share price total return since inception |
(d/a)-1 |
230.7% |
212.8% |
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 31 May 2026 |
Year ended 30 November 2025 |
|
Share price at inception |
a |
100.0p |
100.0p |
|
|
|
|
|
|
Closing share price |
b |
225.5p |
218.0p |
|
Dividend reinvestment factor |
c |
1.498271 |
1.464220 |
|
Adjusted closing share price |
d=b*c |
337.9p |
319.2p |
|
Share price total return including subscription share value since inception |
(d/a)-1 |
237.9% |
219.2% |
(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 2026 |
30 November 2025 |
|
Closing share price |
a |
225.5p |
218.0p |
|
Closing NAV per share |
b |
235.7p |
229.7p |
|
Discount per ordinary share |
(a / b)-1 |
-4.3% |
-5.1% |
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 period/year end.
|
|
|
31 May 2026 |
30 November 2025 |
|
Net assets |
a |
£372,003,000 |
£376,292,000 |
|
Bank loan |
b |
£40,000,000 |
£40,000,000 |
|
Total assets |
c = (a+b) |
£412,003,000 |
£416,292,000 |
|
Cash and cash equivalents (including amounts awaiting settlement and overdrafts) |
d |
£33,448,000 |
£13,055,000 |
|
Net gearing |
(c-d)/a-1 |
1.8% |
7.2% |
-END-
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 13 hours ago Luceco
- 13 hours ago Helios Towers
- 14 hours ago Wise Class A
- 14 hours ago EDX Medical Group Plc
- 14 hours ago Naked Wines