Polar Capital Global Financials Trust Reports Strong 34.8% NAV Return in Annual Results
Why we think this is good
The trust has delivered impressive financial results for the year, with a substantial 34.8% increase in NAV total return and a 45.4% share price total return. This performance is bolstered by a significant rise in earnings per share from -4.87p to 53.93p, and an increase in the total dividend from 4.55p to 4.70p. The narrowing of the discount from 12.2% to 5.5% indicates growing investor confidence. However, the slight underperformance against the benchmark (34.8% vs 36.1%) and an increase in net gearing from 5.1% to 6.5% prevent this from being an unequivocally positive report. Overall, the strong financial performance and increased shareholder returns outweigh these minor concerns, resulting in a positive outlook for the trust.
Key Points
- NAV per ordinary share total return of 34.8% for the year
- Ordinary share price total return of 45.4%
- Total net assets increased from £488.2m to £629.7m
- NAV per ordinary share rose from 158.1p to 207.7p
- Earnings per ordinary share improved from -4.87p to 53.93p
- Total dividend increased from 4.55p to 4.70p per ordinary share
- Discount to NAV narrowed from 12.2% to 5.5%
- Slight underperformance compared to benchmark (36.1% return)
- Net gearing increased from 5.1% to 6.5%
Summary
Polar Capital Global Financials Trust has reported strong annual results, with NAV per share rising 34.8% and share price increasing by 45.4%. The trust's total net assets grew from £488.2m to £629.7m, a 29% increase. Earnings per share saw a dramatic improvement from -4.87p to 53.93p. The discount to NAV narrowed from 12.2% to 5.5%, indicating increased investor interest. While slightly underperforming its benchmark (36.1%), the trust increased its dividend from 4.55p to 4.70p per share. Net gearing rose marginally from 5.1% to 6.5%. These results demonstrate robust performance in a strong year for the financial sector.