POLAR CAPITAL GLOBAL FINANCIALS TRUST: A £221m trust well placed for the recovery
By JEFF PRESTRIDGE, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:52, 6 March 2021 | UPDATED: 16:32, 7 March 2021
Investment trust Polar Capital Global Financials represents a big market play on economic recovery. If the world economy bounces back as many experts anticipate it will, the trust should enjoy good fortune as its portfolio of economically sensitive stocks performs well.
But if growth is interrupted by economic disruption from further coronavirus outbreaks, the outlook for the trust will be challenging.
‘This is a trust that is very sensitive to the macroeconomic backdrop,’ admits Nick Brind, one of three managers who have responsibility for overseeing the fund’s portfolio.
Although the trust’s shares fell somewhat alarmingly as coronavirus took grip last year, they have bounced back strongly – by 47 per cent over the past six months…
Although the trust has key holdings in US payment companies, such as PayPal and Mastercard, that have benefited from the recent big increase in contactless and online payments, it’s the banks that dominate the portfolio.
Says Barrow: ‘Most of the banks we hold are set up to benefit from economic recovery. The largest geographic exposure is in the United States where banks such as JPMorgan and Bank of America are well capitalised and have strong balance sheets.’ …
UK-listed companies account for 7 per cent of the trust’s assets with key holdings including buy-to-let specialist OneSavings Bank and insurers Direct Line and Lancashire Holdings…
Meanwhile, researchers at QuotedData say the ‘tide has turned’ for financial stocks.
They also like the trust’s 26 per cent exposure to South East Asia (where demand for financial products remains strong) and its holdings in payment companies.
Read more here