“Polar Capital Global Financials Trust (PCFT) has had a good six months both in net asset value (NAV) terms, where returns have been ahead of both its MSCI All-Countries World Financials Index performance benchmark and the global MSCI All Countries World Index, and in share price terms, as the share price discount to NAV has narrowed. Next year’s liquidity opportunity (see page 14) ought to help the discount narrow further.

It is early days, but the team reviewed the investment process with the recent hiring of new co-manager Tom Dorner (see page 15). Active share has increased, and the trust has reduced its exposure to banks (which has been a headwind to performance historically). The managers are cautiously optimistic.

As we explore in this note, they have identified five core themes that they feel will help drive further outperformance: alternative asset managers; a strong pricing environment for reinsurance companies; growth and reform within emerging markets; undervalued small- and mid-caps; and a need to be selective in PCFT’s exposure to banks."

Read the latest QuotedData report:

QuotedData: Handful of themes to drive performance

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Some information contained herein has been obtained from third party sources and has not been independently verified by Polar Capital.