Polar Capital Global Financials Trust plc (the "Company"): The Company is an investment company with investment trust status and its shares are excluded from the Financial Conduct Authority’s (“FCA”) restrictions on the promotion of non-mainstream investment products. The Company conducts its affairs, and intends to continue to conduct its affairs, so that the exemption will apply.
The Company is an Alternative Investment Fund under the EU's Alternative Investment Fund Managers Directive 2011/61/EU as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018.
The Investment Manager: Polar Capital LLP is the investment manager of the Company (the "Investment Manager"). The Investment Manager is authorised and regulated by the FCA and is a registered investment adviser with the United States' Securities and Exchange Commission.
Key Risks
- Investors' capital is at risk and there is no guarantee the Company will achieve its objective.
- Past performance is not a reliable guide to future performance.
- The value of investments may go down as well as up.
- Investors might get back less than they originally invested.
- The value of an investment’s assets may be affected by a variety of uncertainties such as (but not limited to): (i) international political developments; (ii) market sentiment; and (iii) economic conditions.
- The shares of the Company may trade at a discount or a premium to Net Asset Value.
- The Company may use derivatives which carry the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions.
- The Company invests in assets denominated in currencies other than the Company's base currency and changes in exchange rates may have a negative impact on the value of the Company's investments.
- The Company invests in a concentrated number of companies based in one sector. This focused strategy can lead to significant losses. The Company may be less diversified than other investment companies.
- The Company may invest in emerging markets where there is a greater risk of volatility than developed economies, for example due to political and economic uncertainties and restrictions on foreign investment. Emerging markets are typically less liquid than developed economies which may result in large price movements to the Company.
Important Information
Not an offer to buy or sell: This document is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, and under no circumstances is it to be construed as a prospectus or an advertisement. This document does not constitute, and may not be used for the purposes of, an offer of the securities of, or any interests in, the Company by any person in any jurisdiction in which such offer or invitation is not authorised.
Information subject to change: Any opinions expressed in this document may change.
Not Investment Advice: This document does not contain information material to the investment objectives or financial needs of the recipient. This document is not advice on legal, taxation or investment matters. Prospective investors must rely on their own examination of the consequences of an investment in the Company. Investors are advised to consult their own professional advisors concerning the investment.
No reliance: No reliance should be placed upon the contents of this document by any person for any purposes whatsoever. None of the Company, the Investment Manager or any of their respective affiliates accepts any responsibility for providing any investor with access to additional information, for revising or for correcting any inaccuracy in this document.
Performance and Holdings: All data is as at the document date unless indicated otherwise. Company holdings and performance are likely to have changed since the report date. Company information is provided by the Investment Manager.
Benchmark:The Company is actively managed and uses the MSCI ACWI Financials Net TR Index as a performance target and to calculate the performance fee. The benchmark has been chosen as it is generally considered to be representative of the investment universe in which the Company invests. The performance of the Company is likely to differ from the performance of the benchmark as the holdings, weightings and asset allocation will be different. Investors should carefully consider these differences when making comparisons. Further information about the benchmark can be found www.mscibarra.com.
Third-party Data: Some information contained in this document has been obtained from third party sources and has not been independently verified. Neither the Company nor any other party involved in compiling, computing or creating the data makes any warranties or representations with respect to such data, and all such parties expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any data contained within this document.
Country Specific Disclaimers
United States: The information contained within this document does not constitute or form a part of any offer to sell or issue, or the solicitation of any offer to purchase, subscribe for or otherwise acquire, any securities in the United States or in any jurisdiction in which such an offer or solicitation would be unlawful. The Company has not been and will not be registered under the United States Investment Company Act of 1940, as amended (the “Investment Company Act”) and, as such, the holders of its shares will not be entitled to the benefits of the Investment Company Act. In addition, the offer and sale of the Securities have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”). No Securities may be offered or sold or otherwise transacted within the United States or to, or for the account or benefit of U.S. Persons (as defined in Regulation S of the Securities Act). In connection with the transaction referred to in this document the shares of the Company will be offered and sold only outside the United States to, and for the account or benefit of non-U.S. Persons in “offshore- transactions” within the meaning of, and in reliance on the exemption from registration provided by Regulation S under the Securities Act. No money, securities or other consideration is being solicited and, if sent in response to the information contained in this document, will not be accepted. Any failure to comply with the above restrictions may constitute a violation of such securities laws.
Further Information about the Company: Investment in the Company is an investment in the shares of the Company and not in the underlying investments of the Company. Further information about the Company and any risks can be found in the Company’s Key Information Document, the Annual Report and Financial Statements and the Investor Disclosure Document which are available on the Company's website, found at: https://www.polarcapitalglobalfinancialstrust.com
Fund Manager Commentary As at 28 November 2025
Market and Trust review
Global financials outperformed broader markets in a month characterised by shifting expectations on central bank easing, along with a pullback in areas most exposed to the AI theme. A resumption of economic data following the reopening of the US government after a shutdown added to market uncertainty.
The MSCI All Country World Financials Index rose 1.2% in November relative to a 0.8% fall in the MSCI All Country World Index. The Trust’s NAV rose 2.3% (all figures in sterling terms) with the relative performance supported by an overweight to European banks, continued strength in Asian life insurers (the Trust holds both AIA Group and Prudential) and an underweight in Australia. This was partially offset by weakness in P&C insurance holdings (primarily Beazley following its results), London Stock Exchange Group (LSEG) and the underweight in Berkshire Hathaway.
European banks
European banks continued their outperformance during November with sentiment supported by a positive Q3 results season which led to modest upgrades to earnings forecasts. Along with an improvement in underlying profitability reflecting more normalised interest rates along with solid asset quality, there is evidence of a pickup in loan growth (particularly in Central and Eastern Europe and the periphery). The extent to which loan growth accelerates is set to become a key differentiator as we move into 2026. While some enthusiasm around the theme of German fiscal stimulus has cooled as longer-term ambitions collide with political reality, we are seeing signs of regulatory easing which should continue to support attractive capital distributions (the sector has a total yield of 9% on average including buybacks).
The Bank of England’s Financial Policy Committee has lowered the banking sector’s minimum capital requirements at a system level by 100bps with an emphasis on introducing reforms to promote growth. This is a material shift in tone towards the sector and we expect similar changes as part of the upcoming ECB High-Level Task Force on simplification, due to be published before the year-end. While the sector has rerated (to 9.6x 2026 EPS), the 34% discount to the broader market remains wider than the historical average despite the improved underlying environment.
Asia
Asian financials outperformed during the month, led by Japan and China. Japanese financials rose 3.6% in November, with the cabinet’s approval of a ¥21trn fiscal package providing some clarity on the outlook while the Bank of Japan’s comments, particularly in relation to a weaker yen, raised expectations regarding an interest rate increase in December, which would provide additional support to banks’ core revenues.
Despite mixed economic trends in China, with weakness in consumption and the real estate sector remaining a drag on growth, the stock market has outperformed this year. Along with a reduction in concerns surrounding geopolitical tensions with the US and enthusiasm around Chinese innovation sectors, the role of government policy and liquidity has been a critical factor (driven by the increased allocation of state insurers to invest in domestic stocks as well as rising retail investor participation). The Trust’s exposure to China is primarily through AIA Group and Prudential where results have been supported by strong momentum in new business growth in both mainland China and Hong Kong. Consequently, we see fundamental support to both companies from robust growth drivers along with strong governance, rather than pure participation in a liquidity driven rally.
Stablecoin
We see the rapid growth of stablecoins as a material development for the sector with implications across the payments sector, banks and central banks. Crucially, there has been a shift in the regulatory landscape with the GENIUS Act (passed in July) providing a legislative framework for the issuance and exchange of stablecoins in the US.
For the payments industry, there is potential disruption linked to stablecoin’s ability to offer real-time settlement and programmability with B2B payment flows and cross-border likely most affected. However, stablecoin also offers incremental flows to the networks, providing on/off ramps and stablecoin-linked cards.
The banking sector’s response to stablecoins, through the issuance of tokenised deposits, offers significant opportunities (the ability to pay interest a crucial distinction from stablecoin) but there are questions around interoperability and it will require broader take-up by banks to create common standards. While it remains too early to assess the ultimate winners and losers, we view the conditions in place for the growing adoption of stablecoin supported by additional legislation (the CLARITY Act is expected to be passed in early 2026). The Trust has started a small position in Coinbase Global, one of the largest crypto exchanges, which, through its partnership with Circle, is positioned to benefit from what in our view is a secular theme.
Outlook
We have been encouraged by recent operating trends which have underpinned the sector’s strong relative performance and while there has been some rerating, principally within the banking sector, valuations are not expensive relative to history or the broader market.
Looking into next year, we see continued support from the key themes the Trust has invested in. Within the banking sector, we expect regulatory easing to be supportive for an acceleration in lending, capital return and consolidation. We are likely in the early innings of a ‘democratisation of trading and investing’ and expect to see more legislation passed, including the EU’s Savings & Investment Union, which will provide a tailwind.
Within emerging markets, an easing liquidity environment creates a supportive backdrop while corporate governance reforms, particularly in South Korea, if sustained, provide opportunities for further rerating.
Within diversified financials, we expect to see greater clarity on the issue of data monetisation while the AI debate has opened up attractive valuation opportunities in long-term compounders – the Trust has positions in both S&P Global and LSEG.
Nick Brind
Nick’s experience comes from running specialist and generalist funds with UK and global mandates for the past 25+ years
George Barrow
George is a specialist financials fund manager as well as an analyst across Europe, Asia and emerging markets
Tom Dorner
Tom joined Polar Capital in 2023 as a financials fund manager and is the analyst responsible for the global insurance sector.
Historical Fact Sheets