What We Do

Why invest in Financials?

Together, financial companies form one of the largest investable sectors in the world.

More than just banks, they include insurance companies (non-life insurers, reinsurers, life assurers and so on), other financials companies such as asset managers and stock exchanges, and more recently, technology-based providers such as online payment companies and challenger banks.

That breadth provides investors with a vast array of choice, with investors able to tap into the high growth potential of fintech or income in the form of dividends.

How the companies operate - and in turn how they perform from an investment point of view - can differ markedly from region to region, again creating opportunities.


Why the Polar Capital Global Financials Trust (PCFT)?

PCFT aims to select the best investment opportunities from the world of financials. The investment team scours the globe and actively invests in developed regions such as the US as well as emerging economies and Asia. With a relatively low exposure to UK companies, the Trust could be a complementary holding to existing UK financial stocks.

Investing in a specialist sector such as financials requires an expert eye. The five-strong team at Polar Capital invests solely in financials and has done for many years. The culture at the firm is collegiate and, as such, the managers are able to draw on the expertise of the wider investment teams at Polar Capital, which includes a dedicated Global Insurance team.

The Trust aims to deliver capital growth and income through dividends. A feature of an investment trust is the ability to store income to facilitate dividend payments during times when its underlying companies are unable to do so. One example of this is during the COVID-19 pandemic when many financial companies did not pay a dividend but PCFT maintained its own income payment.

It is worth reiterating that PCFT has more strings to its bow than developed world banks. Asia ex Japan is now a significant part of the trust and exposure to fintech payments companies has been rewarded handsomely.

March 2021. Past performance is not a guide to future performance.