Polar Capital Global Financials Trust (LSE:PCFT) reported a net asset value total return of 4.8% for the half year to 31 May, which it highlighted was ahead of the MSCI ACWI Financials benchmark's 3.1% return, an outperformance of roughly 1.7 percentage points in sterling terms.
Total net assets stood at £372 million at the period end, down from £645.5 million a year earlier and slightly below the £376.3 million reported at 30 November.
The closed-end fund invests in banks, insurers and other financial companies globally.
Global financials swung sharply over the period, hitting all-time highs in February before a US and Israeli strike on Iran and the closure of the Strait of Hormuz sent Brent crude to $120 a barrel in March, its highest since 2022, driving a 4.9% monthly fall in the sector.
Chair Simon Cordery said financials "lagged wider equity markets" as markets rotated toward technology amid expectations of an eventual resolution to the Gulf standoff.
European banks outperformed while US banks lagged, with holdings including UniCredit and Erste Group Bank pointing to encouraging loan demand as first-quarter results showed the impact on asset quality from the energy shock.
The board adopted an enhanced dividend policy from 1 December, targeting a payout of approximately 4% of NAV annually, paid quarterly at 1% of NAV.
Canaccord Genuity was appointed as the trust's new corporate broker from 19 January, following Stifel Nicolaus Europe Limited's exit from investment company market-making.
The portfolio held a net cash position of 1.3% as at 9 July, the latest practicable date.
