As demand for cyclical sectors remains strong, Polar Capital Global Financials Trust (PCFT) – which launched in 2013 and has assets of £305m – is hoping to raise a chunky £100m via an offer of 100m ‘C shares’ (conversion shares). Retail investors can participate in the fundraise until 1pm on 16 June.
Since November 2020, the trust – which is the only investment trust specifically focused on financials – has re-issued roughly 40 per cent of its shares from treasury. This followed a significant tender offer as part of a reconstruction last year, which saw 39 per cent of its issued share capital elect to exit.
Increased expectations of an economic recovery, alongside a rise in inflation fears, have proved a helpful environment for banks. Because banks tend to borrow money at short maturities and lend at longer ones, the current difference between long- and short-term rates – which is significantly wider than a year ago – plays into their favour.