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(Alliance News) - Polar Capital Global Financials Trust PLC on Friday said its net asset value and returns rose in the first half of its financial year as the financial sector prospects began to recover.
The London-based financial investor said its net asset value per share at the end of May was 162.41 pence, up 40% from 115.77p a year before.
Shares in Polar Capital Global Financials Trust were trading up 0.4% at 167.70p each in London on Friday morning.
The company said that the rollout of successful Covid-19 vaccines, lifting restrictions and the prospect of economic recovery has improved attitudes towards the financial sector.
During the six months to May 31, the MSCI World Index rose by 9.3% in sterling terms, while the company's chain linked benchmark rose 21.5%, reflected closely by the 22.2% rise in the trust's total return NAV.
The trust said its overweight position in bank stocks, especially in US regional banks, was the most significant contributor to its improved performance. Whilst its holdings in property, casualty insurance and payment companies proved to be the biggest break on performance.
As in its previous financial year, the company declared a first interim dividend of 2.40p on Tuesday, to be paid at the end of August.
With regard to the company's future performance, Chair Robert Kyprianou said: "Growth combined with rising interest rates presents a very favourable background for bank stocks in particular. More broadly, despite its recent re-rating, the financials sector remains good value both on a relative and absolute basis. Finally, with the improved outlook for the sector, and banks in particular, beginning to be reflected in earnings forecasts, and with the perception of risks in the sector moderating significantly, the prospects for dividend growth and share buybacks will be a further positive driver for the sector."
By Scarlett Butler; scarlettbutler@alliancenews.com
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