Polar Capital Global Financials Trust PLC on Thursday announced a higher interim dividend as it outperformed its benchmark but remained cautious amid high interest rates.
The trust invests for income and capital growth in financial companies globally. It is managed by Polar Capital Holdings PLC.
The company said net asset value per share improved 22% to 184.98 pence as at May 31 from 151.23p a year prior.
NAV total return was 18.2%, outperforming its benchmark, the MSCI ACWI Financials Net Total Return Index, which had a return of 15.9%.
The company raised its interim dividend by 2.0% to 2.50p each from 2.45p a year ago.
While the results were positive, Polar Capital Global Financials remained cautious: ‘Despite generally strong markets, sentiment amongst investors, particularly towards the financials sector remained weak. Central banks across the world continued to keep interest rates on hold while economic news flow was dominated by inflation, ongoing geopolitical events and the prospect of interest rates finally starting to fall. Latterly the announcement of elections in the UK and Europe have perhaps pushed this event out a little further.’
Looking ahead, Chair Simon Cordery said: ‘Our managers retain a positive outlook for the sector and the portfolio. Economic data is broadly supportive and interest rate cuts from the main central banks are expected before the end of 2024. This should benefit the business of companies within our investment universe, which continue to trade at low valuations to both the wider market and the sector’s history.’
Polar Capital Global Financials Trust shares were 0.4% lower at 168.06 pence each late Thursday morning in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
