Polar Capital plans June tender, outlines new fee and dividend policy
Polar Capital Global Financials Trust PLC on Thursday detailed its long-term plans and confirmed it will proceed with a 100% tender offer by the end of June 2025, as required under its articles of association.
At its annual general meeting, Chair Simon Cordery said shareholders who do not wish to retain their stake will be able to tender shares at the net asset value per share, minus costs expected to be no more than 1% of NAV.
The trust intends to repeat this full tender process every five years, with the next one due in 2030.
The investor for income and capital growth in financial companies globally said its core investment strategy and structure would remain unchanged, retaining Polar Capital LLP as manager and continuing to invest in listed securities across the financial sector.
From July 1, the trust will introduce a new fee structure. It will still charge an annual management fee of 0.70% on the first £500 million of assets, but any assets above that amount will be charged a lower fee of 0.65%.
The basis of calculation for both tiers will be amended so that 50% is calculated by reference to the NAV and 50% is calculated by reference to the lower of market capitalisation and NAV. Currently, the base management fee is calculated purely by reference to the NAV.
Importantly, the performance fee will be scrapped entirely.
The board also plans to adopt an ‘enhanced dividend’ policy, subject to shareholder approval. This would aim to return around 4% of NAV annually to investors, distributed quarterly at 1% per quarter. The change would take effect from the financial year beginning December 1, 2025.
However, the board cautioned that all proposals are contingent on the trust retaining a viable size following the 2025 tender offer. If net assets fall below a sustainable level, the company may pursue a liquidation and rollover option.
A full circular with further details will be published by the end of May.
Shares in Polar Capital Global Financials Trust were up 5.6% at 187.40 pence in London on Thursday afternoon.
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