Polar Capital Global Financials Trust - Update research from QuotedData

1^st December 2022

Don't fear the dog that is yet to bark

There has been a distinct shift in sentiment towards financials stocks and Polar Capital Global Financials Trust (PCFT) since Spring 2022. As fears of economic recession grew, initial enthusiasm about the positive effects of rising interest rates on banks' profit margins gave way to concern about the prospect of higher loan defaults. However, these have not materialised, and PCFT's managers think it is likely that they will not.

As we discuss on page 7, they feel that the sector's sell-off is overdone, banks' valuations are more than pricing in a worst-case scenario, and the strong balance sheets and cautious lending practices adopted by banks in the wake of the financial crisis will cushion the economic blow.

In addition, there are positive developments in areas such as insurance and reinsurance, and new opportunities to acquire fixed interest stocks on attractive yields, all of which bode well for PCFT's future.

Full research:

https://quoteddata.com/research/polar-capital-global-financials-trust-fear-dog-bark-qd/

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NB: Marten & Co was paid to produce this note on Polar Capital Global Financials Trust Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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