Final Results

RNS Number : 3520F

Polar Capital Global Financials Tst

09 March 2020

 

POLAR CAPITAL GLOBAL FINANCIALS TRUST PLC

Legal Entity Identifier: 549300G5SWN8EP2P4U41

AUDITED ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED

30 NOVEMBER 2019

FINANCIAL HIGHLIGHTS

Performance (Sterling total return)		For the year ended 30 November 2019 %	Since Inception %
Net asset value (NAV) per ordinary share (note 1)		10.4	85.5
Ordinary share price (note 2)		12.4	71.9
Ordinary share price including subscription share value (note 3)		-	75.8
Benchmark MSCI World Financials + Real Estate Net Total Return Index (note 4)		9.9	85.2
Other Indices and peer group (in Sterling)
MSCI World Index		13.0	111.4
FTSE All Share Index		11.0	54.5
Lipper Financial Sector (note 5)		8.1	58.2
Financials	As at 30 November 2019	As at 30 November 2018	% Change
Total net assets	£301,170,000	£280,984,000	+7.2
Net assets per ordinary share	148.5p	138.6p	+7.2
Ordinary share price	143.8p	132.0p	+8.9
Discount per ordinary share	3.2%	4.8%
Net gearing	4.4%	2.1%
Ordinary shares in issue	202,775,000	202,775,000	-
Total dividend per ordinary share	4.40p	4.15p	+6.0
Earnings per ordinary share	For the year ended 30 November 2019	For the year ended 30 November 2018
Revenue Return	4.89p	4.71p
Capital Return	9.36p	(6.73p)
Total	14.25p	(2.02p)
Ongoing Charges (note 6)	1.04%	0.99%

Dividends

The Company has paid or declared the following dividends relating to the financial year ended 30 November 2019 :

Pay date	Amount per ordinary share	Record date	Ex-date	Declared date
First interim: 30 August 2019	2.40p	2 August 2019	1 August 2019	3 July 2019
Second interim: 28 February 2020	2.00p	7 February 2020	6 February 2020	29 January 2020
Total (2018: 4.15p)	4.40p

Note 1 

The total return NAV performance for the period is calculated by reinvesting the dividends in the assets of the Company from the relevant ex-dividend date. Performance since inception has been calculated using the initial NAV of 98p and the NAV on 30 November 2019. Dividends are deemed to be reinvested on the ex-dividend date as this is the protocol used by the Company's benchmark and other indices.  

Note 2 

The total return share price performance is calculated by reinvesting  the dividends in the shares of the Company from the relevant ex-dividend date. Performance since inception has been calculated using the launch price of 100p to the closing price on 30 November 2019.

Note 3 

The total return share price performance since inception includes the value of the subscription shares issued free of payment at launch on the basis of one for every five Ordinary shares and assumes such were held throughout the period from launch to the conversion date of 31 July 2017. Performance is calculated by reinvesting the dividends in the shares of the Company from the   relevant ex-dividend date and uses the launch price of 100p per ordinary share and the closing price per ordinary share on 30 November 2019.

Note 4 

The benchmark was the MSCI World Financials Index to 31 August 2016, and the MSCI World Financials + Real Estate for all periods from 1 September 2016.  

Note 5 

Dynamic average of open ended funds in the Lipper Financial Sector Universe which comprised 55 open ended funds in the year under review.

Note 6 

Ongoing charges represents the total expenses of the Company, excluding finance costs, expressed as a percentage of the average daily net asset value, calculated in accordance with AIC guidance issued in May 2012. From 3 January 2018, the date of implementation of the MiFID II regulation, the research cost borne by the Company is included in the ongoing charges calculation. Previously these costs were covered by the commissions charged on the sale and purchase of shares which were charged to the capital account.

Data sourced by HSBC Securities Services Limited, Polar Capital LLP and Lipper.

CHAIRMAN'S STATEMENT

Dear Shareholders

On behalf of the Board I am pleased to report for this, the final full year of the Company's seven-year fixed life term, a double-digit rise in the Company's share price, an outperformance of NAV relative to the benchmark, a narrowing of the share price discount to NAV and a further year of strong dividend growth.

On its launch in 2013 the Company embedded into its Articles of Association a fixed life of seven years which would conclude with an opportunity for shareholders to vote for the liquidation of the Company at its AGM in 2020. The vote is enhanced such that a single vote in favour will be sufficient for the resolution to pass. This AGM is due to be held by the end of May 2020. Over the past year the Board has been considering whether any alternative proposals to continue with the Company beyond its seven-year term would be in shareholders' best interests. The results of these deliberations are described in my statement below.   

Performance

Despite broad political and economic volatility and policy U-turns, the year under review was a good one for global stock markets. In Sterling terms the MSCI World index and the FTSE All Share index rose by 13.0% and 11.0% respectively over the year under review. Despite ending the year strongly, the financials sector lagged a little against the Company's benchmark, the MSCI World Financials plus Real Estate Index, recording a gain of 9.9%.

After all fees and expenses, your Manager delivered a total return of 10.4%, outperforming the Company's benchmark. Share price performance at 12.4% for the year was even stronger as the Company's share price discount to NAV narrowed over the course of the financial year.

Your Manager has delivered this performance while navigating political and economic turbulence from trade wars; the Brexit rollercoaster, growing European populism and Euro-scepticism; monetary policy U-turns and the changing of the guard in various key central banks and financial institutions. Having taken certain defensive measures in response to earlier poor sentiment towards the financials sector, the Manager's strong stock selection capability came through in portfolio performance as sentiment recovered towards the end of the financial year.

From its launch to the recent year end, the Company has earned, after all fees and expenses a net total return of 85.5%, slightly ahead of the benchmark total return of 85.2%. Over the life of the Company the portfolio's active risk has ranged between 70% and 80% and its tracking error, relative to the benchmark, has ranged between 2% and 7%.

Over this same period the Company's net total return has ranked 9th among a range of 44 open ended funds within the Lipper Financial Sector universe. Exploiting the Company's active global mandate, the Manager has delivered risk adjusted returns significantly superior to that of direct peers and also to a narrow portfolio of holdings in UK mainstream banks.

Please refer to the Investment Manager's Report for more detailed information on investment policy and performance attribution over the most recent financial year.

Dividends

The Company aims to pursue a policy of dividend growth, although there is no guarantee that this can be achieved. The Board monitors, with the help of the Manager, the prospects for dividends from its equity holdings, interest income from cash and fixed income securities, and the potential to earn additional revenue from writing options. In its first full financial year the Company paid a total dividend of 3.1p per ordinary share as targeted at the time of the Company's launch. Since then the Company has raised the dividend in each financial year.

In August 2019 the Company paid an interim dividend of 2.40p per ordinary share. The Board has declared a further interim dividend of 2.00p per ordinary share payable to shareholders on the register as at 7 February 2020. This will bring the total dividend paid for the financial year under review to 4.40p per ordinary share, an increase of 6.0% over the previous financial year. As a result, over the five years since the first full financial year payment, the Company has been able to grow its dividend by an average of 7.3% p.a.

Share Capital

The Company had 202,775,000 ordinary shares in issue at the start of the financial year. No shares were bought back or issued during the financial year under review and the number of shares in issue therefore remains the same. The Company's share price on 30 November 2019 was 143.75p (2018: 132.00p). The Company's market capitalisation at the financial year end was £291.5m (2018: £267.7m).

The Company's share price traded in a discount range of 1.9% to 7.2% throughout the year, ending at a discount of 3.2% compared to 4.8% at the start of the year. The Board monitors the share price discount to NAV and market conditions and determines any appropriate action. The Board has reconfirmed its authority to the Manager to use its discretion to purchase further shares if appropriate, in order to maintain a smooth market in the Company's shares and where it believes value can be added for shareholders.

During the course of the year the Company's corporate broker, Panmure Gordon, made some changes in its team coverage of the Company. The Board took this as an opportunity to review its corporate broker services. Following completion of the review, the Board decided to engage Investec Bank PLC as its corporate broker and advisor. The Board believes that this change will ensure that the Company continues to receive high quality advisory and market making services.

Costs

The Board continues to place a high priority on monitoring the Company's expenses. At launch we had estimated an ongoing charges ratio (OCR) of 1.27% of net assets and we have managed to fall below this level for every full year to date. The OCR for the year under review to 30 November 2019 was 1.04%, slightly up on the low of 0.99% at 30 November 2017 and 2018.

The increase in OCR this year is as a result of some ad hoc legal expenses, Non-executive Director (NED) recruitment fees in relation to the appointment of Simon Cordery, and an increase in marketing undertaken in order to support the liquidity of the Company's shares by introducing the Company to a broader universe of investors. This included commissioning third party research on the Company from Marten & Co.

We continue to contribute to the bespoke specialist research used by the Manager under MiFID II regulation. However, the element of research cost borne by the Company has continued to reduce and has again been offset somewhat by the lower transaction commission rates charged to the capital account.

Outlook

As the Company approaches the end of its fixed seven-year life I would like to reflect on the past and consider the future of your Company.

In last year's Annual Report I wrote that ten years after the financial crisis, the sustained and profound regulatory-driven improvements in capital resources and risk management had not been reflected in the valuation of the sector. A year later, as your Manager argues in the Investment Manager's Report, the sector, and in particular banks, seems to be priced for recession and this does not reflect the impressive positive changes in the sector since 2008. For banks in particular, business models have been changed in favour of less capital intensive and off-balance sheet revenue streams; technology has been applied to underpin operating models and efficiency; and capital buffers have been built to the point that stress tests for the most severe of recessions are now a source of comfort rather than panic.

Against this background the Board has been reviewing how best to act in shareholders' interests as the end of the seven-year fixed life approaches. Following consultation with the Manager, our advisers and a number of shareholders, the Board believes that the original thesis for the Trust remains strong and that current valuation levels represent an excellent entry point into the investment opportunity.

The Board also remains comfortable that an actively managed closed-end, global vehicle remains an appropriate way of participating in, and managing the risks of, a financials portfolio. Such a vehicle will allow the Manager to take a long-term view; to exploit opportunities in less liquid smaller and mid-sized companies as well as non-quoted companies; to allow fintech and niche/specialist financial companies time to mature and realise value; to exploit the long-term growth in the penetration of financial services in emerging markets; and to utilise gearing when appropriate as a performance enhancing tool. Finally, the fixed-term, closed end nature of the vehicle has helped smooth the payment of dividends over the life of the Company and contributed to the Company's record of steady income growth for shareholders.

The Company was launched with a fixed life of seven years to end no later than 31 May 2020. The Company and its advisors have met with a number of shareholders who have indicated an interest in the Company continuing beyond the current seven-year life. The Board has determined that the best course of action is to offer to those shareholders who wish to remain in the investment thesis the opportunity to do so while honouring the original commitment to liquidity for those shareholders who wish to realise their investment at the end of the seven-year life..   

Future Proposals

On 6 February 2020, the Company announced that, following a period of shareholder consultation, a number of items would be proposed to shareholders (together 'the Proposals') including:

• minor changes to the Company's investment policy;

• a change to the Articles of Association to replace the current fixed life and requirement to wind-up the Company ahead of 31 May 2020 with an immediate and thereafter five-yearly tender offers;

• a change to the Company's benchmark;

• a reduction in the management fee and change of structure to the performance fee payable to the Investment Manager;

• an increase in the maximum permitted borrowing; and

• use of a treasury account to hold any shares bought in by the Company for future reissue into the market.

The replacement of the wind-up of the Company with a tender offer will give those shareholders wanting an exit the opportunity to tender their shares in full and those shareholders wanting to continue their investment a vehicle in which to remain invested.

Full details of the Proposals, including the timetable and anticipated exit costs, will be provided in a Circular to shareholders to be sent in early March.

General Meeting in Relation to the Proposals

Included within the Circular will be a Notice of General Meeting (GM) at which shareholders will have the opportunity to vote on the Proposals. We urge you to attend the meeting or submit your votes on the resolutions ahead of the meeting to ensure your views are considered. The meeting is expected to be held in early April.

Annual General Meeting

The Company's seventh Annual General Meeting (AGM) will be held no later than 31 May 2020 at a date to be notified following the GM detailed above. The formal Notice of AGM will be sent to shareholders as soon as possible and with at least the requisite notice period.

Both the GM and the AGM will be held at the offices of Polar Capital LLP, 16 Palace Street, London SW1E 5JD. The Directors will all be present and there will be an opportunity at the AGM to hear a short presentation directly from your Manager.

My fellow Directors and I look forward to welcoming you to the GM and subsequent AGM, there will be ample opportunity to discuss with us the performance and the future of the Company. We very much value your support and feedback.

Robert Kyprianou

Chairman

6 March 2020

INVESTMENT MANAGER'S REPORT

Performance

As highlighted in the Chairman's Statement, it is pleasing to report a year of solid returns from the portfolio. The Trust's net asset value total return for the period under review produced gains of 10.4%, against a rise of 9.9%* for our benchmark index, the MSCI World Financials Index + Real Estate Index. While both of these measures lag the MSCI World Index return of 13.0%, the general strength of global equity markets over the reporting period, provided investors with a tail wind.

Positive stock selection was partially offset by an overweight position in banks and an underweight positioning in real estate investment trusts (REITs), as the latter performed very well over the period. Our holdings in a number of emerging market banks and payments companies were also a positive contributor, as were our fixed-income holdings.  

Mastercard was the biggest contributor to performance, followed by holdings in Blackstone, the US alternative asset manager, Arch Capital, the US speciality insurer and Mapeltree Commercial Trust, a Singapore-listed REIT. Conversely, the biggest drag on performance was a holding in Swedbank, one of Sweden's largest banks, Caixabank, a Spanish bank and some of our US regional bank holdings such as East West Bancorp and SVB Financial Group.

Investment Review

Markets

Financial markets suffered a brutal sell-off in December 2018, for example, the S&P 500 Index fell by nearly 15.0% at the worst point on Christmas Eve before staging a partial recovery in the last few days of the year. The fall was sparked by hawkish commentary on the outlook for US interest rates by Jerome Powell, the Chairman of the Federal Reserve, and in particular a statement around the downsizing of the Federal Reserve's balance sheet which he said was on "automatic pilot".

The severity of the falls was not seen as justified and equity markets rallied strongly in January 2019 with the momentum of this rally carrying through to the end of April before there was another correction. The rally was given renewed impetus by less hawkish commentary from the Federal Reserve about the outlook for interest rates and the pace at which it would shrink its balance sheet. Solid fourth-quarter results also helped underpin the positive turn in sentiment.  

However, concern around the escalation of trade tensions between the US and China and a fall in leading indicators resulted in interest rate expectations and bond yields falling steadily over the first seven months of the financial year, as expectations increased that the Federal Reserve would have to cut interest rates.

As trade tensions continued to ratchet up with the US threatening to impose further tariffs, weak manufacturing data and softer   leading economic indicators caused bond yields to fall further as the market priced in three interest rate cuts in the US by the end of 2020.

As a result, by the middle of August, US and German ten-year government bond yields had fallen to around 1.45% and -0.7% respectively, in the latter case below levels last seen in 2016. In comparison, the equivalent yields at the start of the financial year were 3.0% and 0.3%. The amount of negative yielding debt globally ballooned to over US$15 trillion, double that at the start of the financial year. At this juncture bond yields bottomed and started to rally and there was a sharp rotation out of growth stocks into value stocks.

The change in outlook was helped by a number of factors. In particular, the Federal Reserve after having cut interest rates three times during 2019, announced in September it was not expecting to cut rates further, citing robust consumer spending, strengthening home sales and reduced geopolitical risks and furthermore stating that they required a material reassessment of the outlook to justify further cuts.  There was also progress in trade talks between the US and China, and the UK government came to a new agreement with the EU on Brexit, leading to a sharp rally in Sterling.

Finally, while the ECB announced a further cut in interest rates to stimulate growth, it was coupled with the introduction of a tiered deposit scheme to offset some of the negative impact from negative interest rates on banks' profitability. On top of this the heads of the German, Austrian, Dutch and French central banks all voiced opposition to the ECB's decision to undertake additional monetary easing. There were also increased calls for fiscal stimulus to reduce the need for monetary policy to remain so loose.

US repo markets (short-term funding markets) suffered a sharp spike in cost in September. While a number of reasons were given for causing the ruction, at its simplest we believe it was driven by the unintended consequence of the liquidity requirements put in place post the financial crisis. As banks are now required to hold a higher amount of high-quality short-dated securities, (in other words government bonds, cash and deposits at central banks) then the ability of the Federal Reserve to shrink its balance sheet materially is vastly reduced. As a result, the Federal Reserve was forced into pumping more liquidity into markets which undoubtedly helped underpin the improvement in tone in financial markets and rally into the year end.  

Sector

This background of falling interest rates and bond yields acted as a headwind for bank stocks over the year, as while they are beneficiaries of rising interest rates, the reverse is also true.  Japanese banks were particularly weak over the year but European banks and US regional banks also underperformed, reflecting in the latter case their greater sensitivity to movements in interest rates versus larger US banks and in the others the weaker outlook for interest rates relative to the US.

The sell-off in bank stocks saw their valuations fall materially, bottoming in August. At this point the discount at which US banks traded to the wider equity market had widened out to around 45% on a PE ratio relative to the 20% discount they have, on average, traded for the last seven years. In the case of European banks, valuations fell to levels on a par with those seen in the middle of the crises of 2009 and 2012 before both rebounded sharply.

Money laundering allegations weighed on sentiment towards Swedish banks. Danske Bank, Denmark's largest bank, had come under significant criticism in 2018 over alleged flows through its Estonian branch. While initially Danske was seen as an exception, Swedish banks also came under suspicion over their money laundering controls, in particular Swedbank, which suffered a sharp fall in its share price and resulted in its CEO and Chairman both being forced to step down.

UK banks initially rallied in the first half of the year on the expectation of a "softer" Brexit as the UK government was forced to concede to the date when the UK could leave the EU being pushed back. However, the rally proved short-lived, along with strength in Sterling, as the political impasse worsened. This led to the resignation of Prime Minister Theresa May and the election of Boris Johnson as her replacement and continued uncertainty about the outlook for the UK as an early act was to prorogue parliament.

Merger and acquisition activity picked up during the period with Deutsche Bank and Commerzbank admitting to talks, which fell through, with other banks also linked to discussions with the latter. In the US, SunTrust and BB&T announced a merger to create the sixth largest bank in the country with one of the reasons given being a need to increase spending on technology to compete against their larger peers. In the UK, Charter Court Financial Services and OneSavings Bank, both buy-to-let focused lenders and both holdings in the Trust, also announced a merger.

Non-life insurance and REITs performed well over the year albeit their relative performance in the second half of the financial year was weaker, the latter due in part to the pick-up in bond yields. The non-life insurance sector has continued to benefit from its defensive characteristics, namely a steady growth in earnings combined with a relative lack of economic sensitivity, in an environment where investors have been concerned about global growth.

2019 turned out to be the third year in a row to see significant catastrophic losses after several events late in the year, including Hurricane Dorian, Typhoons Hagibis and Faxai as well as   Californian and Australian wildfires. However, the bigger concern for non-life insurers has been around social inflation in the US, which hit the share prices of several companies. Social inflation is the increase in insurance losses caused by higher jury awards which have been rising for a number of reasons, including the increasing availability of third-party litigation funding.

Asset managers also performed well, benefiting from rising equity markets which was enough to offset negative flows and fee pressure for most traditional asset managers as the shift into passive funds out of active funds continues. Alternative asset managers saw a significant jump in their share prices as they continue to benefit from strong demand for alternative assets. Several US alternative asset managers announced they would be changing from a partnership structure to a corporate structure and therefore their shares would become eligible for inclusion in indices and this boosted their share prices further.

Subordinated debt of banks and insurance companies performed strongly over the year as bond yields fell and there was a tightening in the spread at which they traded relative to government bonds. Bond funds have continued to attract inflows as investors search for yield and the outlook for the sector from a credit standpoint remained robust. An expectation that banks would honour call dates which are optional also helped performance.

Investment Activity

We used the sell-off in December 2018 to add to our US bank holdings, taking gearing on the Trust close to 5.0%. However, as the rally in equity markets following the sell-off was so strong we took the opportunity to take gearing back down and make further sales, in particular reducing some of our US, European and Japanese bank holdings, resulting in the Trust holding net cash at the half year.

Subsequently, valuations fell further and as we started to see a rotation back into bank shares, we increased gearing back up to just over 4.0% towards the end of the period covered by the report. We increased exposure to emerging markets by introducing a number of new holdings as well as adding to current holdings. We also increased exposure to US regional banks while reducing exposure to payments companies and the insurance sector.

New holdings over the course of the year included AJ Bell, the UK investment platform, which we purchased at IPO, Bank Central Asia, an Indonesian bank, Grupo Financiero Banorte, a Mexican bank, Itau Unibanco, a Brazilian bank, Paypal, the payments company and Intact Financial, a Canadian, non-life insurance company. We also added to holdings in AIA, an Asian life assurer, East West Bancorp, a Californian bank and DNB, Norway's largest bank.

Conversely, holdings in Commonwealth Bank of Australia, Mitsubishi UFJ Financial and Swedbank, Australian, Japanese and Swedish banks respectively, Indiabulls Housing Finance, an Indian non-bank finance company, and Caixabank, a Spanish bank, were all sold. We also reduced exposure to REITs by reducing holdings in Frasers Centrepoint Trust and Mapletree Commercial Trust, both Singapore-listed REITs.

Outlook

Performance since launch

Since the launch of the Trust, the net asset value total return has annualised at around 10.3%, ahead of financial sector benchmarks but behind global equity markets which have been led by the very strong performance of technology shares. However, while valuations for equity markets have risen by around 30% over this period in PE terms, valuations for financials are little changed, but within that, valuations for banks have fallen by close to 10%.

We believe this relative derating of the sector - or absolute derating in the case of banks - reflects concerns about the medium-term outlook for economic growth, inflation and therefore interest rates, latterly driven by concerns over the impact of coronavirus on global growth, and how these factors will impact profitability. We believe these concerns are overdone and that views on the outlook are so entrenched that investors risk having little or no exposure to the sector and missing out on a rotation back into value stocks, of which financials represent the largest percentage.

Risks

The biggest downside risks to the sector are falling equity markets driving to lower fee income, lower interest rates and weaker economic growth or recession leading to lower net interest margins, higher unemployment and corporate insolvencies in turn triggering higher loan losses and bond defaults, all resulting in lower profitability. Lower equity markets aside, asset quality currently, outside some emerging markets, remains resilient and if anything has continued to positively surprise, reflecting the relatively benign macro background.

While the recovery in the US has been the longest expansion in history according to the National Bureau of Economic Research, it has also been far weaker than any previous recovery. Similarly, economic growth in other countries has also been much weaker than in past recoveries. This would suggest that the risks that normally build up in the banking system in an expansion have yet to do so and that therefore banks' operating performance should surprise positively through the next downturn.

One way to observe this is via the credit to GDP gap which has been negative for most developed countries since the crisis i.e. loan growth has been slower than nominal GDP growth. The correlation between loan growth relative to GDP and future loan losses is very high as strong loan growth correlates highly with higher loan losses in a downturn and vice versa, reflecting   the exuberance or caution with which banks extend new loans. If the correlation stands then this would suggest there will be little or no pick-up in loan losses if a recession were to occur in the next year.

This cautiousness around risk can also be seen in an area where banks lost significant money during the financial crisis, namely trading assets, for example, leveraged loans. There has been understandable concern recently around both the significant increase in leveraged loan issuance but also the fall in underwriting standards and use of adjusted EBITDA forecasts by private equity sponsors to justify paying high valuations. However, the banking sector's exposure to leveraged loans has fallen on some estimates by around 85% since 2007 with other market participants taking up the slack.

All things being equal, lower interest rates lead to lower net interest margins and therefore profitability for banks. But looking back at previous recessions it is noticeable that margins expand as banks look to offset the impact of higher loan losses. It is only as a recovery picks up and loans losses fall that competition picks-up and net interest margins fall. More recently, the impact of lower interest rates, while negative, has been overstated, having a bigger impact on sentiment. That said, longer-term it will force banks to adjust their business models to adapt if interest rates remain at their current low levels.

Banks' balance sheets are significantly stronger than they were prior to the financial crisis. In the case of US banks one has to go back to the 1930s to find a time when they had lower leverage. Funding similarly is much more robust, with banks less reliant on short-term wholesale funding, so the sector is much more resilient to any volatility in funding markets. Regular stress tests by regulators and better governance around risk by banks also underpins our view that concerns are overdone.

Drivers of future performance

Banks represent a significant portion of the sector and the Trust's portfolio. The sector's performance remains welded to the performance of bank shares and thus any changes in trends in economic data and bond yields in the short term. The pick-up in bond yields since August has benefited the sector and, while we believe that shorter-term data could disappoint, there are sufficient indicators suggesting that economic data will pick-up further over the course of 2020 and therefore the sector should perform well over the next year.

The financial sector is the second largest globally and there are significant opportunities within the sector and a number of themes that are worth highlighting.

We have increased the Trust's exposure to emerging markets over the last year, reflecting our optimism on the long-term outlook for the growth in penetration of financial services in Asia and Latin America, which remains well below that of developed markets, more recently taking advantage of weak share price performance of a number of individual companies to add to or introduce new holdings.

The non-life insurance sector also remains an important theme and is the second largest exposure of the Trust. With further evidence of insurance premium rate rises coming through, we believe the sector is well positioned to continue to do well.   Reflecting its defensive characteristics, it also offers a counterbalance to our banks' exposure for times when we want to reduce risk across the portfolio. For that reason alone, we marginally reduced our exposure in recent months.

FinTech is a broad theme and one we have played primarily through payments companies, which we continue to expect to do well from the growth in e-commerce and shift from cash to card payments. We have steered clear of so called peer-to-peer or marketplace lender that take balance sheet risk, and which have universally struggled to justify their high valuations.

Smaller and mid-sized banks remain an important part of the portfolio whether they are focused on niche or specialist lending markets or whether they are regional banks based in a faster growing state or markets in the US or countries elsewhere. We expect the opportunities for these banks to continue as they take market share from their larger peers.

Finally, credit has been a small part of the Trust's portfolio but an area where we have been able to make attractive risk- adjusted returns from buying the debt instruments of banks, non-life insurance and life assurance companies. There remain many interesting opportunities, some of which have resulted from changes in regulation that require the issuer to look to retire or refinance bonds over coming years where bonds no longer count towards regulatory capital.

In conclusion

Looking forward we remain constructive on the outlook for the sector notwithstanding the impact of coronavirus in the short-term. The brief rotation out of growth stocks into value stocks over the last few months of the financial year, of which banks played a prominent part, is not surprising considering the latter's underperformance. Warren Buffet's business partner, Charlie Munger is quoted as saying: "A great business at a fair price is superior to a fair business at a great price". They have increased Berkshire Hathaway's exposure to US financials over the past year and a half by around 40% at the expense of almost any other sector. In an equity market where investors struggle to find value, they see them as solid investments, as do we.

Nick Brind & John Yakas

6 March 2020

Note

We would draw shareholders attention to http://www.polarcapitalglobalfinancialstrust.com/ for regular monthly portfolio updates and commentary.

*index performance figures are total return in Sterling

Portfolio Review

As at 30 November

Geographical Exposure*	30 November 2019	30 November 2018
North America	52.2%	46.1%
Asia (ex-Japan)	16.8%	14.5%
Europe	16.3%	21.2%
United Kingdom	8.3%	8.5%
Fixed Income	7.2%	7.3%
Latin America	1.6%	-
Japan	1.5%	3.4%
Eastern Europe	0.2%	0.9%
Other net liabilities	(4.1%)	(1.9%)
Total	100.0%	100.0%

Sector Exposure*	30 November 2019	30 November 2018
Banks	64.6%	66.7%
Insurance	16.6%	13.1%
Fixed Income	7.2%	7.3%
Diversified Financials	7.1%	8.4%
Software & Services	4.6%	2.8%
Real Estate	4.0%	3.6%
Other net liabilities	(4.1%)	(1.9%)
Total	100.0%	100.0%

Market Cap*	30 November 2019	30 November 2018
Large (>US$5bn)	90.1%	82.9%
Medium (US$0.5bn - US$5bn)	10.7%	14.9%
Small (<US$0.5bn)	3.3%	4.1%
Other net liabilities	(4.1%)	(1.9%)
Total	100.0%	100.0%

* Based on the net assets as at 30 November 2019 of £301.2m (2018: £281.0m)

Portfolio Composition

As at 30 November 2019

Full Portfolio

Ranking				Geographical	Market Value		% of total net assets
2019	( 2018 )	Stock	Sector	Exposure	2019 £'000	2018 £'000	2019 %	2018 %
1	(1)	JP Morgan Chase	Banks	North America	19,842	16,756	6.6	6.0
2	(2)	Bank of America	Banks	North America	13,844	12,397	4.6	4.4
3	(5)	Mastercard	Software & Services	North America	10,847	7,780	3.6	2.8
4	( 3 )	CHUBB	Insurance	Europe	9,966	8,666	3.3	3.1
5	( 13 )	Arch Capital	Insurance	North America	9,576	6,177	3.2	2.2
6	( 19 )	Citizens Financial Group	Banks	North America	8,349	4,954	2.8	1.8
7	( 10 )	US Bancorp	Banks	North America	7,801	6,375	2.6	2.3
8	( 6 )	Wells Fargo	Banks	North America	7,786	7,688	2.6	2.7
9	( 8 )	PNC Financial Services	Banks	North America	7,728	6,772	2.6	2.4
10	( 12 )	Marsh & McLennan	Insurance	North America	7,487	6,226	2.4	2.2
Top 10 investments					103,226		34.3
11	( 60 )	AIA Group	Insurance	Asia (ex-Japan)	7,198	1,950	2.4	0.7
12	( 9 )	Toronto-Dominion Bank	Banks	North America	7,178	6,413	2.4	2.3
13	( 33 )	HDFC Bank	Banks	Asia (ex-Japan)	7,013	3,468	2.3	1.2
14	( 11 )	KBC Groep	Banks	Europe	6,868	6,244	2.3	2.2
15	( 4 )	Citigroup	Banks	North America	6,862	7,952	2.2	2.8
16	( 20 )	First Republic Bank	Banks	North America	5,660	4,938	1.9	1.8
17	( 18 )	Allianz	Insurance	Europe	5,590	4,994	1.9	1.8
18	( 54 )	DNB	Banks	Europe	5,582	2,422	1.9	0.9
19	( 15 )	KeyCorp	Banks	North America	5,577	5,785	1.8	2.0
20	( 23 )	Blackstone	Diversified Financials	North America	5,453	4,520	1.8	1.6
Top 20 investments					166,207		55.2
21	( 21 )	ING Groep	Banks	Europe	5,158	4,808	1.7	1.7
22	(-)	Bank Central Asia	Banks	Asia (ex-Japan)	5,134	-	1.7	-
23	( 32 )	East West Bancorp	Banks	North America	5,102	3,777	1.7	1.3
24	(-)	Enterprise Financial Services	Banks	North America	5,081	-	1.7	-
25	( 25 )	E. Sun Financial	Banks	Asia (ex-Japan)	4,994	4,100	1.7	1.5
26	( 56 )	Lloyds Banking Group	Banks	United Kingdom	4,952	2,392	1.6	0.9
27	( 30 )	SVB Financial	Banks	North America	4,936	3,927	1.6	1.4
28	(7)	Sumitomo Mitsui Financial	Banks	Japan	4,373	7,148	1.5	2.5
29	( 17 )	Sampo	Insurance	Europe	4,347	5,487	1.4	2.0
30	( 59 )	OneSavings Bank	Banks	United Kingdom	4,276	2,077	1.4	0.7
Top 30 investments					214,560		71.2
31	( 26 )	Ares Capital	Diversified Financials	North America	4,127	4,094	1.4	1.4
32	( 47 )	Standard Chartered	Banks	United Kingdom	3,946	2,717	1.3	1.0
33	( 28 )	BNP Paribas	Banks	Europe	3,923	4,047	1.3	1.4
34	( 24 )	Solar Capital	Diversified Financials	North America	3,793	4,366	1.2	1.6
35	(29)	Mapletree Commercial	Real Estate	Asia (ex-Japan)	3,751	4,045	1.2	1.4
36	( 39 )	VPC Specialty Lending Investments	Fixed Income	Fixed Income	3,737	3,141	1.2	1.1
37	(-)	Bank of the Philippine Islands	Banks	Asia (ex-Japan)	3,555	-	1.2	-
38	( 34 )	Fortune REIT	Real Estate	Asia (ex-Japan)	3,546	3,453	1.2	1.2
39	( 14 )	Oversea-Chinese Banking	Banks	Asia (ex-Japan)	3,441	5,858	1.2	2.1
40	( 44 )	Nationwide Building Society 10.25% CCDS	Fixed Income	Fixed Income	3,267	2,811	1.1	1.0
Top 40 investments					251,646		83.5
41	(38)	Atom Bank (unquoted)	Banks	United Kingdom	3,191	3,191	1.1	1.1
42	( 42 )	Tisco Financial	Banks	Asia (ex-Japan)	3,113	3,041	1.0	1.1
43	(-)	Intact Financial Corporation	Insurance	North America	3,041	-	1.0	-
44	( 43 )	Frasers Centrepoint Trust	Real Estate	Asia (ex-Japan)	3,039	2,858	1.0	1.0
45	(-)	PayPal	Software & Services	North America	3,023	-	1.0	-
46	( 40 )	Direct Line Insurance	Insurance	United Kingdom	2,858	3,068	1.0	1.1
47	(22)	Banco Santander	Banks	Europe	2,832	4,634	0.9	1.6
48	(-)	Itaú Unibanco	Banks	Latin America	2,775	-	0.9	-
49	(52)	City of London Investment Group	Diversified Financials	United Kingdom	2,622	2,451	0.9	0.9
50	( 46 )	International Personal Finance 5.75% Bond	Fixed Income	Fixed Income	2,603	2,781	0.9	1.0
Top 50 investments					280,743		93.2
51	(53)	Sparebank SMN	Banks	Europe	2,470	2,443	0.8	0.9
52	(36)	UBS Group	Banks	Europe	2,421	3,385	0.8	1.2
53	(45)	Pollen Street Secured Lending (formerly P2P Global Investments)	Fixed Income	Fixed Income	2,379	2,786	0.8	1.0
54	(57)	Pennant Park Floating Rate Capital	Diversified Financials	North America	2,323	2,384	0.8	0.8
55	( 48 )	BOC Hong Kong	Banks	Asia (ex-Japan)	2,278	2,693	0.7	0.9
56	(-)	Grupo Financiero Banorte	Banks	Latin America	2,206	-	0.7	-
57	(58)	Aldermore Group 8.5% Bond	Fixed Income	Fixed Income	2,151	2,204	0.7	0.8
58	(49)	Bank of N. T. Butterfield	Banks	North America	1,979	2,666	0.7	0.9
59	(-)	AJ Bell	Diversified Financials	United Kingdom	1,961	-	0.7	-
60	(-)	Indusind Bank	Banks	Asia (ex-Japan)	1,869	-	0.6	-
Top 60 investments					302,780		100.5
61	(-)	Link REIT	Real Estate	Asia (ex-Japan)	1,793	-	0.6	-
62	(63)	Phoenix Life 7.25% Bond	Fixed Income	Fixed Income	1,719	1,749	0.6	0.6
63	(-)	International Personal Finance 7.75% Bond	Fixed Income	Fixed Income	1,626	-	0.5	-
64	(66)	Amigo Luxembourg 7.625% Bond	Fixed Income	Fixed Income	1,422	1,461	0.5	0.5
65	(64)	Aegon Floating Rate Bond	Fixed Income	Fixed Income	1,377	1,652	0.5	0.6
66	(-)	HSBC Floating Rate Bond	Fixed Income	Fixed Income	1,179	-	0.4	-
67	(70)	Augmentum Fintech	Diversified Financials	United Kingdom	1,050	738	0.3	0.3
68	(50)	TBC Bank	Banks	Eastern Europe	659	2,606	0.2	0.9
Total investments					313,605		104.1
Other net liabilities					(12,435)		(4.1)
Total net assets					301,170		100.0

STRATEGIC REPORT

The Strategic Report Section of this Annual Report comprises the Chairman's Statement, the Investment Manager's Report, including information on the portfolio and this Strategic Report. It has been prepared solely to provide information to shareholders on the Company's strategy and potential for that strategy to succeed, including a fair review of the strategy and performance of the Company during the year ended 30 November 2019, as well as a description of the principal risks and uncertainties. The Strategic Report contains certain forward-looking statements; these statements are made by the Directors in good faith, based on the information available to them at the time of their approval of this report and such statements should be treated with caution, due to inherent uncertainties, including both economic and business risk factors underlying any such forward looking statements.

Business Model and Regulatory Arrangements

The Company's business model follows that of an externally managed investment trust, and its investment objective is set out below. Its shares are listed on the Main Market of the London Stock Exchange.

The Company is designated an Alternative Investment Fund ('AIF') under the Alternative Investment Fund Managers Directive ('AIFMD') and as required by the Directive, has contracted Polar Capital LLP to act as the Alternative Investment Fund Manager ('AIFM') and HSBC Bank plc to act as the Depositary.

Both the AIFM and the Depositary have responsibilities to ensure that the assets of the Company are managed in accordance with the investment policy and are held in safe custody. The Board remains responsible for setting the investment strategy and operational guidelines as well as meeting the requirements of the applicable UK and European legislation, including the Listing Rules of the Financial Conduct Authority and the Companies Act. Statements from the AIFM and the Depositary can be found on in the Annual Report.

The Company seeks to manage its portfolio in such a way as to meet the tests set down in Sections 1158 and 1159 of the Corporation Tax Act 2010 (as amended by section 49(2) of the Finance Act 2011) and continue to qualify as an investment trust. This qualification permits the accumulation of capital within the portfolio without any liability to UK Capital Gains Tax. Further information is provided in the Report of the Directors in the Annual Report. The Company has no employees or premises and the Board is comprised of Non-executive Directors. The day to day operations and functions have all been delegated to third parties.

Investment Objective and Policy

Objective  

The Company's investment objective is to generate a growing dividend income together with capital appreciation by investing in a global portfolio of financials stocks.  

Policy

The Company seeks to achieve its objective by investing primarily in a global portfolio consisting of listed or quoted securities issued by companies in the financials sector operating in banking, insurance, property and other sub-sectors.

The portfolio is diversified by geography, industry sub-sector and stock market capitalisation.

The Company may have a small exposure to unlisted and unquoted companies, but in aggregate, this is not expected to exceed 10% of total assets at the time of investment. The Company will not invest more than 10% of total assets, at the time of investment, in other listed closed-ended investment companies and no single investment will normally account for more than 10% of the portfolio at the time of investment.

The Company may employ levels of borrowing from time to time with the aim of enhancing returns, currently subject to an overall maximum of 15% of net assets at the time the relevant borrowing is taken out. Actual levels of borrowing may change from time to time based on the Investment Manager's assessment of risk and reward.

The Company may invest through equities, index-linked and other debt securities, cash deposits, money market instruments, foreign currency exchange transactions, forward transactions, index options and other instruments including derivatives. Forward transactions, derivatives (including put and call options on individual positions or indices) and participation notes may be used to gain exposure to the securities of companies falling within the Company's investment policy or to seek to generate income from the Company's position in such securities, as well as for efficient portfolio management.

Any use of derivatives for investment purposes is made on the basis of the same principles of risk spreading and diversification that apply to the Company's direct investments. The Company may hedge exposure to foreign currencies if considered appropriate for efficient portfolio management.

The Board

As the day to day management of the Company is outsourced to service providers, the Board's primary focus at each meeting is performance, including the outlook, strategy and management of the service providers and the risks inherent in the various matters reviewed.

Future Developments

The Articles of Association require the Directors to put forward, at the Annual General Meeting of the Company in 2020, a resolution to place the Company into liquidation. The voting on that resolution is enhanced such that, provided any single vote is cast in favour, the resolution will be passed. As detailed within the Chairman's Statement, the Company is making Proposals to amend the Articles of Association and extend the Company's life for those shareholders wishing to remain invested by removing the requirement to propose the winding up of the Company and replacing such with a tender offer and subsequent five-yearly tender offers, in addition to minor changes to the investment policy and structural aspects. The Board remains positive on the longer-term outlook for the global financials sector.

Future performance is dependent, to a significant degree, on the world's financial markets and their response to economic events and other geo-political forces as well as the regulatory environment. The Chairman's Statement and the Investment Manager's Report comment on the business, the outlook and threats.

Investment Team

The portfolio is managed jointly by Mr Nick Brind and Mr John Yakas, supported by five other financials specialists within the team.

Strategy

The Investment Manager's investment process is a six-stage process primarily driven by a bottom-up fundamental analysis of individual companies, albeit with macroeconomic inputs. The Investment Manager regularly uses both quantitative and qualitative screens to rank companies on a risk-adjusted basis, since the fundamental view is that long-term returns in most financial stocks are driven by their success in writing risk, rather than short-term growth trends. The approach involves undertaking a detailed income statement and balance sheet analysis and values a company based on the Capital Asset Pricing Model that compares a company's return on equity versus its cost of capital (the latter taking account of both stock and country risk) to provide a fair price/book valuation. This valuation (coupled with other more standard valuation systems) is then ranked across the global universe and added to scores focused on other variables such as profitability, risk and growth metrics to provide a model portfolio and so a focus for additional stock-specific research. The Investment Manager undertakes regular trips to the US, Europe and Asia to meet companies as well as those they meet in London, leveraging off the combined experience of the Investment Manager's team of seven fund managers and analysts who focus on the global financials sector.

The Company's investment portfolio is both geographically and sectorally diversified with its largest concentration being to the banking sector, and the balance being in insurance, life assurance, real estate investment trusts, asset management and other sub-sectors, subject to the Investment Manager's assessment of where the best opportunities lie. There are no limits on the exposure of the investment portfolio to either smaller or mid-cap companies but the majority of the portfolio is invested in companies with a market capitalisation of above US$5bn. The Investment Manager has discretion to invest up to 10% of the portfolio in debt securities.

The vast majority of the investment portfolio is invested in companies that not only offer capital appreciation but pay a level of dividends, which are expected to rise over time, so as to meet the necessary income required to facilitate the payment of a rising level of dividends to shareholders.

Service Providers

Polar Capital LLP has been appointed to act as Investment Manager and AIFM as well as to provide or procure company secretarial and administrative services, including accounting, portfolio valuation and trade settlement, which it has arranged to deliver through HSBC Securities Services.

The Company also contracts directly with a number of third parties for the provision of specialist services:

· HSBC Bank plc as Custodian and Depositary;

· Investec Bank plc as Corporate Broker;

· Equiniti Limited as Share Registrars;

· PricewaterhouseCoopers LLP as Independent Auditors;

· RD:IR for investor relations and shareholder analysis;

· Marten & Co as third party research providers;

· Emperor as Designers and Printers for shareholder communications; and

· Huguenot Limited as Website Designers and internet hosting services.

Benchmark

The Company compares the Investment Manager's performance against the MSCI World Financials + Real Estate Net Total Return Index, in Sterling with dividends reinvested ('the Benchmark'). This is used to measure the performance of the Company, which does not seek to replicate the index in constructing its portfolio. The portfolio may, therefore, diverge substantially from the constituents of this Index.

Although the Company has a Benchmark, this is neither a target nor a determinant of investment strategy. The purpose of the Benchmark is to set out a reasonable measure of performance for shareholders and an appropriate base which, together with an additional hurdle, forms the level above which the Investment Manager earns a share of any outperformance it has delivered.

Performance and Key Performance Objectives

The Board appraises the performance of the Company and the Investment Manager as the key supplier of services to the Company against key performance indicators (KPIs). The objectives comprise both specific financial and shareholder related measures including:

Objective	Control process	KPI / Outcome
The provision of investment returns to shareholders measured by long-term NAV total return relative to the Benchmark Index and a comparator group.	The Board reviews at each meeting the performance of the portfolio and considers the views of the Investment Manager and the value delivered to shareholders through NAV growth and dividends paid. The Board also receives monthly reports on performance against both the benchmark and a comparator group of open ended investment funds.	The Company's NAV total return, over the year ended 30 November 2019, was 10.4% while the Benchmark Index over the same period delivered 9.9%. The Company ranked 9th of 44 open ended funds within the Lipper Financial Sector universe and 1st of 7 within the short comparator group of funds regularly considered by the Board.
The achievement of a progressive dividend policy.	Financial forecasts are reviewed to track income and distributions at each meeting.	A total of two interim dividends amounting to 4.40p (2018: 4.15p) per ordinary share have been paid or are payable in respect of the financial year ended 30 November 2019, representing an increase of 6.0% year on year. In line with the progressive dividend policy, since the first full year payment, the dividend has grown by an average of 7.3% each year.
Monitoring and reacting to issues created by the discount or premium of the ordinary share price to the NAV per ordinary share with the aim of reducing volatility for shareholders.	The Board receives regular information on the composition of the share register including trading patterns and discount / premium levels of the Company's ordinary shares. The Board discusses and authorises the issue or buy back of shares when appropriate. A daily NAV per share, calculated in accordance with the AIC guidelines, is issued to the London Stock Exchange.	The discount of the ordinary share price to the NAV per ordinary share at the year end was 3.2% compared with the widest discount over the year ended 30 November 2019 of 7.2%, reached on 10 December 2018 and the narrowest discount of 1.9% reached on 24 December 2018. In the year ended 30 November 2019, the Company did not buy back any ordinary shares.
Monitoring and managing ongoing charges.	The Board receives regular financial information which discloses expenses against budget.	Ongoing charges for the year ended 30 November 2019 were 1.04% (year ended 30 November 2018: 0.99%). Details of the slight increase are given in the Chairman's Statement and the Notes to the Financial Statements.
Meeting the requirements of Sections 1158 and 1159 of the Corporation Tax Act 2010.	The Board receives regular financial information which discloses the current and projected financial position of the Company against each of the tests set out in Sections 1158 and 1159.	Investment trust status has been granted to the Company subject to the Company continuing to satisfy the conditions of Sections 1158 and 1159 of the Corporation Tax Act 2010. The Directors believe that the conditions have been met in respect of the year ended 30 November 2019 and they believe that the Company will continue to meet the requirements.

In addition to the above performance objectives, the Investment Manager and Directors use a variety of financial alternative performance measures ('APMs') to assess the performance of the Company.

Principal Risks and Uncertainties

The Board is responsible for the management of risks faced by the Company in delivering long-term returns to shareholders. The identification, monitoring and appraisal of the risks, any mitigating factors and control systems is crucial.

The Board has carried out a robust assessment of the risks and maintains a Risk Map which seeks to identify and allocate risks to four main risk categories: Business, Portfolio Management, Infrastructure and External. The Risk Map details each identified risk and any factors, both internal and external, that could provide mitigation, as well as outlining the reporting structure which monitors and mitigates, as far as practicable, such risks. During the year, the Board continued to consider the market uncertainty specifically arising as a result of various political movements including both Brexit which is yet to be finalised and the General Election held on 12 December 2019 shortly after the Company's financial year end. Other risks identified and discussed by the Board during the year included the risk of a contagion effect from the situation which evolved out of Woodford Investment Management, the near term fixed life expiry of the Company, and the overall ESG environment and the impact of such on the investment process and outcomes.

Principal Business Risks and Uncertainties	Management of risks through Mitigation & Controls
Business
Failure to achieve investment objective, investment performance below agreed benchmark objective or market/industry average.	The Board seeks to manage the impact of such risks through regular reporting and monitoring of investment performance against a comparator group of open-ended funds, the Benchmark and other agreed indicators of relative performance. In months when the Board is not scheduled to meet, it receives a monthly report containing financial information on the Company including gearing and cash balances. Performance and strategy are reviewed throughout the year at regular Board meetings where the Board can challenge the Investment Manager. The Board also receives a monthly commentary from the Investment Manager in the form of factsheets for all the specialist financial sector funds managed by Polar Capital. The Board is committed to a clear communication programme to ensure shareholders understand the investment strategy. This is maintained through the use of monthly factsheets which have a market commentary from the Investment Manager as well as portfolio data, an informative and relevant website as well as annual and half year reports. The Management Engagement Committee considers the suitability of the Investment Manager on the basis of performance and other services provided.
Loss of portfolio manager or other key staff.	Key personnel are incentivised by equity participation in the investment management company.
Persistent excessive share price discount to NAV.	In consultation with its advisors, including the corporate broker, the Board regularly considers the level of the share price discount to the NAV and the Board reviews ways to enhance shareholder value including share issuance and buy backs. The Board believes that having a fixed life with a wind-up date in 2020 has helped to limit discount volatility.
Principal Business Risks and Uncertainties PORTFOLIO MANAGEMENT	Management of risks through Mitigation & Controls
While the portfolio is diversified across a number of stock markets worldwide, the investment mandate is focused on financials and thus the portfolio is more sensitive to investor sentiment and the commercial acceptance of the sector than a general investment portfolio. The Company's portfolio is exposed to risks such as market price, credit, liquidity, foreign currency and interest rates. The portfolio is actively managed. The Investment Manager's style focuses primarily on the investment opportunity of individual stocks and, accordingly, may not follow the makeup of the Benchmark. This may result in returns which are not in line with the Benchmark. The degree of risk which the Investment Manager incurs in order to generate the investment returns and the effect of gearing on the portfolio by borrowed funds can magnify the portfolio returns per share positively or negatively.	The Board has set appropriate investment limits and monitors the position of the portfolio against such. These include guidelines on exposures to certain investment markets and sectors. The Board discusses with the Investment Manager at each Board meeting its views on the sector. At each Board meeting the composition and diversification of the portfolio by geographies, sectors and capitalisations are considered along with sales and purchases of investments. Individual investments are discussed with the Investment Manager as well as the Investment Manager's general views on the various investment markets and the financials sector in particular. Analytical performance data and attribution analysis is presented by the Investment Manager. The policies for managing the risks posed by exposure to market prices, interest rates, foreign currency exchange rates, credit and liquidity are set out in Note 26 to the financial statements. Investors have sight of the entire portfolio and geographic exposure of investments.
Gearing, either through bank debt or the use of derivatives may be utilised from time to time. Whilst the use of gearing is intended to enhance the NAV total return, it will have the opposite effect when the return on the Company's investment portfolio is negative.	The arrangement of any new banking facilities and gearing limits under such arrangements are controlled by the Board. Derivatives are considered as being a form of gearing and their use has been agreed by the Board. The deployment of borrowed funds (if any) is based on the Investment Manager's assessment of risk and reward. At 30 November 2019 the Company was 4.4% geared (2018: 2.1%).
The ability to continue the dividend policy may be compromised due to lower income or as a result of the currency exposure underlying the portfolio. This could result in a lower level of dividend being paid than intended or previously paid.	The Board monitors income and currency exposure through monthly management accounts and discussion. In the event of there being insufficient income during the financial year the Company has built up revenue reserves on which to draw to pay dividends. Equally, in the event of the revenue reserves being fully utilised the Company may use other distributable reserves. See notes 21-23 below
Infrastructure
There are risks from the failure of, or disruption to, operational and accounting systems and processes provided by the Investment Manager including any subcontractors to which the Investment Manager has delegated a task as well as directly appointed suppliers. The mis-valuation of investments or the loss of assets from the custodian or sub custodians could affect the NAV per share or lead to a loss of shareholder value. There is taxation risk that the Company may fail to continue as an investment trust and suffer capital gains tax or fail to recover as fully as possible withholding taxes on overseas investments. The legal and regulatory risks include failure to comply with the FCA's Prospectus Rules, Listing Rules and Disclosure Guidance and Transparency Rules; not meeting the provisions of the Companies Act 2006 and other UK, European and overseas legislation affecting UK companies and not complying with accounting standards. Further risks arise from not keeping abreast of changes in legislation and regulations which have in recent years been substantial.	At each Board meeting there is an administration report which provides details on general corporate matters including legislative and regulatory developments and changes. There is an annual review of suppliers and their internal control reports which includes the disaster recovery procedures of the Investment Manager. Regular reporting from the Depositary on the safe custody of the Company's assets and the operation of control systems related to the portfolio reconciliation are monitored. Specialist advice is sought on taxation issues as and when required. The Audit Committee has oversight of such work. Information and guidance on legal and regulatory risks is managed by using the Investment Manager or professional advisers where necessary and the submission of reports to the Board for discussion and, if required, any remedial action or changes considered necessary. The Board monitors new developments and changes in the regulatory environment. While it has no control over such changes, the Board seeks to ensure that their impact on the Company is understood and complied with.
Principal Business Risks and Uncertainties External	Management of risks through Mitigation & Controls
There is significant exposure to the economic cycles of the markets in which the underlying investments conduct their business operations as well as the economic impact on investment markets where such investments are listed. The fluctuations of exchange rates can also have a material impact on shareholder returns.	The Board regularly discusses general economic conditions and developments. The impact on the portfolio from Brexit continues to be considered. Whilst it is difficult to quantify the impact of such a change, it is not believed to fundamentally impact the business of the Company or to make the financials sector any less attractive as an investment. At the year-end over 65% of the portfolio was invested outside of the EEA. Note 26 describes the impact of changes in foreign exchange rates. The Investment Manager has the ability to hedge foreign currency if it is thought appropriate at the time.

Investment Management Company and Management of the Portfolio

As the Company is an investment vehicle for shareholders, the Directors have sought to ensure that the business of the Company is managed by a leading specialist investment management team and that the investment strategy is attractive to shareholders. The Directors believe that a strong working relationship with the Investment Manager will achieve the optimum return for shareholders and the Board and the Investment Manager operate in a supportive, co-operative and open environment.

The Company has an Investment Management Agreement (IMA) with Polar Capital LLP (the Investment Manager), which is authorised and regulated by the Financial Conduct Authority, to act as Investment Manager and AIFM of the Company with sole responsibility for the discretionary management of the Company's assets (including uninvested cash) and sole responsibility to take decisions as to the purchase and sale of individual investments. The Investment Manager also has responsibility for asset allocation within the limits of the investment policy and guidelines established and regularly reviewed by the Board, all subject to the overall control and supervision of the Board.

The Investment Manager has other investment resources which support the investment team and has experience in administering and managing other investment trust companies. The Investment Manager also procures or provides accountancy services, company secretarial and day to day administrative services, including the monitoring of third-party suppliers, which are directly appointed by the Company. The Investment Manager has, with the consent of the Directors, delegated the provision of certain of these administrative functions to HSBC Securities Services and to Polar Capital Secretarial Services Limited. The fees of HSBC Securities Services are paid by the Company.

Information is provided to the Directors on a timely basis, covering all aspects of relevant management, regulatory and financial information. The Board receives a report from the Investment Manager at each Board meeting and may ask representatives of the Investment Manager to attend Board meetings enabling Directors to probe further on matters of concern or seek clarification as appropriate.

While the Board reviews the performance of the Investment Manager at each Board meeting, and the Company's performance against Benchmark and a peer group of funds with similar objectives, the Management Engagement Committee formally carries out an annual review of the Investment Manager's and other suppliers' performance during the year.

Termination Arrangements

The Investment Management Agreement is terminable by either the Investment Manager or the Company giving to the other not less than 12 months' written notice. The Investment Management Agreement may be terminated earlier by the Company with immediate effect on the occurrence of certain events, including: (i) if an order has been made or an effective resolution passed for the liquidation of the Investment Manager; (ii) if the Investment Manager ceases or threatens to cease to carry on its business; (iii) where the Company is required to do so by a relevant regulatory authority; (iv) on the liquidation of the Company; or (v) subject to certain conditions, where the Investment Manager commits a material breach of the Investment Management Agreement.

In the event the Investment Management Agreement is terminated before the expiry of the Company's fixed life then, except in the event of termination by the Company for certain specified causes, the management fee and the performance fee will be calculated pro rata for the period up to and including the date of termination.

Fee Arrangements

Management Fee

Under the terms of the Investment Management Agreement, the Investment Manager is entitled to a management fee together with reimbursement of reasonable expenses incurred by it in the performance of its duties. The management fee is payable monthly in arrears at the rate of 0.85% per annum of the lower of the Company's market capitalisation and the Company's net asset value on the relevant day.

In accordance with the Directors' policy on the allocation of expenses between income and capital, in each financial year 80% of the management fee payable is charged to capital and the remaining 20% to revenue.

Performance Fee

The Investment Manager may be entitled to a performance fee. Any performance fee will be paid at the end of the Company's expected life (except in the case of an earlier termination of the Investment Management Agreement) and will be an amount equal to 10% of the excess return (based on the Adjusted net asset value per ordinary share at that time) over the performance fee hurdle.

The performance fee hurdle is 100 pence, increased or decreased by reference to the return on the Benchmark Index plus 1.25 pence per annum (reduced pro rata for periods of less than one full year) over the period from the day following Admission to the date on which it is resolved to wind up the affairs of the Company.

For the purposes of calculating the performance fee, the Company's Adjusted net asset value will be based on the net asset value adjusted as follows:

• the amount of any dividends paid by the Company shall be deemed to have been reinvested on the date of payment in ordinary shares at their net asset value (on such date) and the resulting amount added to the Company's net asset value;

• any dilutive effect caused by the exercise by shareholders of subscription rights in relation to subscription shares shall be deemed to have been added back to the Company's net asset value at the time of issue of the ordinary shares resulting from such exercise, so as to negate the effect of the dilution;

• any enhancement to the Terminal NAV arising from any issue of ordinary shares at a premium to the net asset value per ordinary share prevailing at the time of such issue since Admission shall be deducted; and

• any enhancement to the Terminal NAV arising from the repurchase of ordinary shares pursuant to a tender offer at a discount to net asset value per ordinary share prevailing at the time of such repurchase since Admission shall be deducted.

If, at the end of the Company's expected life, the amount available for distribution to shareholders is less than 100 pence per ordinary share, no performance fee will be payable. If the amount is more than 100 pence per ordinary share but payment of the performance fee in full would reduce it below that level, then the performance fee will be reduced (but to not less than nil) such that shareholders receive exactly 100 pence per share.

No performance fee has been accrued as at 30 November 2019 (2018: nil).

Corporate Responsibility

Socially responsible investing and exercise of voting powers

The Board has instructed the Investment Manager to take into account and have regard to the published corporate governance and ESG policies of the companies in which it invests. The Investment Manager has an ESG policy which is embedded and integral to each of the investment teams' processes. The investment trusts and funds managed by Polar Capital are ranked on their ESG credentials and each portfolio manager is expected to ensure the underlying portfolio companies are improving their ESG credentials on an ongoing basis. The Investment Manager utilises agency rating reports along with industry intelligence, team expertise and research when considering making or withdrawing investments. Polar Capital has signed up to the United Nations Principles of Responsible Investing (UNPRI) and meets all the criteria required by the UNPRI Charter. The full policy is available on the Polar Capital website.

The Board has also considered the Investment Manager's Stewardship Code and Proxy Voting Policy. The Voting Policy is for the Investment Manager to vote at all general meetings of companies in line with Institutional Shareholder Services (ISS) policy. However, in exceptional cases, where it believes that voting on a resolution in line with the ISS policy could be detrimental to the interests of shareholders or the financial performance of the Company, appropriate notification will be given and abstentions or a vote against will be lodged at the Investment Manager's discretion.

During the year under review, the Investment Manager voted at 61 of a possible 65 company meetings, of which 98.5% of votes cast followed the recommendations of the ISS policy.

The Investment Manager reports to the Board, when requested, on the application of the Stewardship Code and Voting Policy. The Investment Manager's Stewardship Code and Voting Policy can be found on the Investment Manager's website in the Document Library (www.polarcapital.co.uk).

Environment and Greenhouse Gas Emissions

The Company's core activities are undertaken by its Investment Manager which seeks to limit the use of non-renewable resources and reduce waste where possible.

The Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013 require companies listed on the Main Market of the London Stock Exchange to report on the greenhouse gas (GHG) emissions for which they are responsible. The Company is an investment trust, with neither employees nor premises, nor has it any financial or operational control of the assets which it owns. Consequently, it has no GHG emissions to report from its operations nor does it have responsibility for any other emissions.

Diversity, Gender Reporting and Human Rights Policy

The Company has no employees and the Board comprises two male and two female Non-executive Directors.

In the event of continuation of the Company following the expiry of the fixed life, the Board will adopt a succession plan and throughout any recruitment process will continue to have regard to the benefits of diversity, including gender, when seeking to make any such appointment(s).

The Company has not adopted formal policies on human rights or diversity as it has no employees or operational control of

its assets.

Modern Slavery Act, Anti-Bribery and Corruption

As an investment company, the Company does not provide goods or services in the normal course of business and does not have any customers. Accordingly, it is considered that the Company is not required to make any slavery or human trafficking statements under the Modern Slavery Act 2015.

The Board has adopted a zero tolerance approach to bribery and corruption in its business activities and uses the anti- bribery policy formulated and implemented by Polar Capital LLP which has been sent to all suppliers of both Polar Capital LLP and the Company.

s172 Statement - Directors' Duties

The statutory duties of the Directors are listed in s171-177 of the Companies Act 2006. Under s172, Directors have a duty to promote the success of the Company for the benefit of its members (the shareholders) as a whole and in doing so have regard to the consequences of any decision in the long term, as well as having regard to the Company's stakeholders amongst other considerations.

The fulfilment of this duty not only helps the Company achieve its Investment Objective but ensures decisions are made in a responsible and sustainable way for shareholders. The Directors have considered this duty when making the strategic decisions during the year that affect shareholders, including: the change of the Company's Corporate Broker following numerous changes in personnel at the previously appointed firm; the appointment of Simon Cordery to the Board, bringing extensive marketing and industry experience; continuing the increase in dividends paid to shareholders and adopting an annual vote on the Dividend Policy; monitoring the Investment Manager's use of gearing and taking careful and detailed steps in the considerations for the reconstruction Proposals to be made to shareholders, which included meeting with shareholders representing some 70.0% of the Company's issued share capital to gauge the appetite for continuation of the Company and the financials mandate. The Board has also sought to better understand the views of both shareholders and stakeholders. Accordingly, the Directors have attended several industry events to meet with shareholders and prospective investors, as well as meeting the Company's service providers. For the first time, shareholders will also have the opportunity to consider the Company's dividend policy, approval of which will be sought by way of ordinary resolution at the Company's AGM (further details can be found in the Report of the Directors). The Board considers the understanding of shareholders' views as essential in fulfilling its duty under s172 and welcomes the opportunity to meet and speak with shareholders. shareholders are therefore encouraged to attend the Company's AGM, details of which will be sent to shareholders in April 2020. Alternatively shareholders may contact the Directors via the Company Secretary.

Approved by the Board on 6 March 2020.

By order of the Board

Tracey Lago FCG

Polar Capital Secretarial Services Limited

Company Secretary

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report, the Directors' Remuneration Report and the Company's Financial Statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare Financial Statements for each financial year. Under that law the Directors have prepared the Company Financial Statements in accordance with International Financial Reporting Standards ('IFRSs') as adopted by the European Union.

Under company law, the Directors must not approve the Financial Statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

• Select suitable accounting policies and then apply them consistently;

• Make judgements and accounting estimates that are reasonable and prudent;

• State whether applicable IFRSs as adopted by the European Union have been followed, subject to any material departures disclosed and explained in the Financial Statements;

• Assess the Company's ability to continue as a going concern, disclosing as applicable matters related to going concern; and

• Prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the Financial Statements and the Directors' Remuneration Report comply with the Companies Act 2006 and, as regards the Financial Statements, Article 4 of the IAS Regulations. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Directors are responsible for such internal control as they determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

The Directors consider that the Annual Report and Financial Statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's performance, business model and strategy. Under applicable law and regulations, the Directors are responsible for preparing a Strategic Report and a Corporate Governance Statement which are each compliant with such laws and regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website although day to day maintenance has been delegated to Polar Capital LLP. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

The work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditor accepts no responsibility for any changes that may have occurred to the Financial Statements since they were initially presented on the Company's website.

Disclosure of Information to the Auditors

As far as the Directors are aware and to the best of their knowledge having made enquiries, there is no relevant audit information of which the auditor is unaware and the Directors have taken steps to make themselves aware of any relevant audit information and to establish that the auditors are aware of such information.

Going Concern

As referenced within the Report of the Audit Committee, the Board has considered the Company's position as at 30 November 2019 and the factors impacting the forthcoming year, which represent a material uncertainty and may cast significant doubt on the Company's ability to continue as a going concern. Details are set out in the Chairman's Statement and the Investment Manager's Report above and in the Strategic Review, the Report of the Directors and the Report on Corporate Governance in the Annual Report.

The financial position of the Company, its cash flows, and its liquidity position are described in the Strategic Report section above. Note 26 to the Financial Statements includes the Company's policies and process for managing its capital, its financial risk management objectives and details of financial instruments. Exposure to credit risk and liquidity risk are also disclosed.

The Company has a portfolio of investments listed and traded on stock exchanges around the world, the great majority of which can be sold within seven working days, providing considerable financial resources, and after making enquiries the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors continue to adopt the going concern basis in preparing the Annual Report and Financial Statements notwithstanding the material uncertainty in relation to the shareholder vote to be taken on the Proposals for reconstruction.

Longer-Term Viability

The Board has also considered and addressed the ability of the Company to continue to operate over a longer period. The work of the Audit Committee in looking at the longer-term viability is described in the Annual Report. Such work includes consideration of the risk environment, the valuation of investments and the ability to liquidate the portfolio should it become necessary.

As an investment company with a liquid portfolio, the majority of which can be sold within seven working days, limited expenses which are modest in relation to the asset base of the Company, and no employees the Directors are of the opinion that the Company can continue in operation up to the end of the fixed life and, in the event of the reconstruction Proposals being approved by shareholders at the General Meeting as referenced within the Chairman's Statement, up to the first five-yearly tender offer of the Company expected to be in 2025.

Responsibility Statement under the Disclosure Guidance and Transparency Rules

Each of the Directors of Polar Capital Global Financials Trust plc, who are listed in the Annual Report, confirm that, to the best of their knowledge:

• The Financial Statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

• The Chairman's Statement, Investment Manager's Report, Strategic Review and Report of the Directors (together constituting the Management Report) include a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

The financial statements and the responsibility statement were [approved by the Board on 6 March 2020] and Robert Kyprianou, Chairman of the Board, was authorised to sign them on behalf of the Board.

Robert Kyprianou

Chairman

6 March 2020

Statement of Comprehensive Income

For the year ended 30 November 2019

	Notes	Year ended 30 November 2019			Year ended 30 November 2018
		Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000
Investment income	3	12,021	-	12,021	11,674	-	11,674
Other operating income	4	36	-	36	23	-	23
Gains/(losses) on investments held at fair value	5	-	20,925	20,925	-	(11,630)	(11,630)
Other currency losses	6	-	(76)	(76)	-	(63)	(63)
Total income		12,057	20,849	32,906	11,697	(11,693)	4
Expenses
Investment management fee	7	(461)	(1,846)	(2,307)	(475)	(1,900)	(2,375)
Other administrative expenses	8	(646)	(15)	(661)	(506)	(15)	(521)
Total expenses		(1,107)	(1,861)	(2,968)	(981)	(1,915)	(2,896)
Profit/(loss) before finance costs and tax		10,950	18,988	29,938	10,716	(13,608)	(2,892)
Finance costs	9	(60)	(242)	(302)	(69)	(274)	(343)
Profit/(loss) before tax		10,890	18,746	29,636	10,647	(13,882)	(3,235)
Tax	10	(967)	237	(730)	(1,090)	227	(863)
Net profit/(loss) for the year and total comprehensive income/(expense)		9,923	18,983	28,906	9,557	(13,655)	(4,098)
Earnings/(losses) per ordinary share (pence)	11	4.89	9.36	14.25	4.71	(6.73)	(2.02)

The total return column of this statement represents the Company's Statement of Comprehensive Income, prepared in accordance with IFRS as adopted by the European Union.

The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

The amounts dealt with in the Statement of Comprehensive Income are all derived from continuing activities.

The notes to follow form part of these financial statements.

Statement of Changes in Equity

For the year ended 30 November 2019

	Notes	Year ended 30 November 2019
		Called up share capital £'000	Capital redemption reserve £'000	Share premium reserve £'000	Special distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total equity £'000
Total equity at 1 December 2018		10,139	251	55,854	139,235	67,469	8,036	280,984
Total comprehensive  income:
Profit for the year ended 30 November 2019		-	-	-	-	18,983	9,923	28,906
Transactions with owners, recorded directly to equity:
Equity dividends paid	12	-	-	-	-	-	(8,720)	(8,720)
Total equity at 30 November 2019		10,139	251	55,854	139,235	86,452	9,239	301,170

	Notes	Year ended 30 November 2018
		Called up share capital £'000	Capital redemption reserve £'000	Share premium reserve £'000	Special distributable reserve £'000	Capital reserves £'000	Revenue reserve £'000	Total equity £'000
Total equity at 1 December 2017		10,139	251	55,852	139,235	81,124	6,691	293,292
Total comprehensive (expense)/income:
(Loss)/profit for the year ended 30 November 2018		-	-	-	-	(13,655)	9,557	(4,098)
Transactions with owners, recorded directly to equity:
Conversion of subscription shares - prior year adjustment	20	-	-	2	-	-	-	2
Equity dividends paid		-	-	-	-	-	(8,212)	(8,212)
Total equity at 30 November 2018		10,139	251	55,854	139,235	67,469	8,036	280,984

The notes to follow form part of these financial statements.

Balance Sheet

As at 30 November 2019

	Notes	30 November 2019 £'000	30 November 2018 £'000
Non-current assets
Investments held at fair value through profit or loss	13	313,605	286,424
Current assets
Receivables	14	807	1,439
Corporation tax receivable		-	30
Overseas tax recoverable		316	184
Cash and cash equivalents	15	4,175	8,363
		5,298	10,016
Total assets		318,903	296,440
Current liabilities
Payables	16	(2,858)	(456)
Bank overdraft	15	(4,875)	-
Bank loan	17	(10,000)	(15,000)
		(17,733)	(15,456)
Net assets		301,170	280,984
Equity attributable to equity shareholders
Called up share capital	18	10,139	10,139
Capital redemption reserve	19	251	251
Share premium reserve	20	55,854	55,854
Special distributable reserve	21	139,235	139,235
Capital reserves	22	86,452	67,469
Revenue reserve	23	9,239	8,036
Total equity		301,170	280,984
Net asset value per ordinary share (pence)	24	148.52	138.57

The financial statements, including the associated notes, were approved and authorised for issue by the Board of Directors on 6 March 2020 and signed on its behalf by:

Robert Kyprianou

Chairman

The notes to follow form part of these financial statements.

Registered number: 8534332

Cash Flow Statement

For the year ended 30 November 2019

	Notes	Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
Cash flows from operating activities
(Profit)/loss before tax		29,636	(3,235)
Adjustment for non-cash items:
(Gains)/losses on investments held at fair value through profit or loss		(20,925)	11,630
Scrip dividends received		(125)	(146)
Amortisation on fixed interest securities		(110)	(93)
Adjusted profit before tax		8,476	8,156
Adjustments for:
Purchases of investments, including transaction costs		(76,222)	(56,569)
Sales of investments, including transaction costs		73,210	53,727
Decrease/(increase) in receivables		65	(76)
(Decrease)/increase in payables		(10)	63
Overseas taxation deducted at source		(862)	(959)
Net cash generated from operating activities		4,657	4,342
Cash flows from financing activities
Cost of subscription shares conversion	20	-	2
Loan repaid	17	(15,000)	(22,500)
Loan drawn	17	10,000	27,500
Equity dividends paid	12	(8,720)	(8,212)
Net cash used in financing activities		(13,720)	(3,210)
Net (decrease)/increase in cash and cash equivalents		(9,063)	1,132
Cash and cash equivalents at the beginning of the year		8,363	7,231
Cash and cash equivalents at the end of the year	15	(700)	8,363

The notes to follow form part of these financial statements.

Notes to the Financial Statements

For the year ended 30 November 2019

1  General Information

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), which comprise standards and interpretations approved by the International Accounting Standards Board (IASB) and International Accounting Standards Committee (IASC), as adopted by the European Union, and with those parts of the Companies Act 2006 applicable to companies under IFRS.

The Board has determined that Sterling is the Company's functional currency and the presentational currency of the financial statements because it is the currency which is most relevant to the majority of the Company's shareholders and creditors and is the currency in which the majority of the Company's operating expenses are paid. All figures are rounded to the nearest thousand pounds (£'000) except as otherwise stated.

2  Accounting Policies

The principal accounting policies, which have been applied consistently for all periods presented, are set out below:

(a)  Basis of Preparation

The Company announced on 6 February 2020, that Proposals would be put to shareholders at a General Meeting expected to be held in early April 2020 to, inter alia, change the Articles of Association to replace the current fixed life with a tender offer and thereafter subsequent five yearly tender offers. The Proposals are detailed in the Chairman's Statement and in the Report of the Directors above . On the basis of extensive discussions with shareholders, the Board believes that there is sufficient support for the Proposals and that the Company's financial statements for the year ended 30 November 2019 can be prepared on a going concern basis. The Board acknowledges that should the Proposals not proceed or the minimum size condition for the ongoing vehicle not be met, the Board will bring forward liquidation proposals to shareholders in accordance with the current requirements of the Articles of Association. As such, the outcome of the vote on the Proposals represents a material uncertainty which may cast significant doubt on the Company's ability to continue as a going concern. The Board is satisfied that even if the Company were to enter liquidation at that time there is no material impact on the preparation of the financial statements for the year ended 30 November 2019. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern. In arriving at the decision on the basis of preparation, the Board has considered the financial position of the Company, it's cashflow and liquidity position as well as the liquidation vote, in relation to the Company's fixed life.

Where presentational guidance set out in the Statement of Recommended Practice (SORP) for investment trusts issued by the Association of Investment Companies (AIC) in October 2019, is consistent with the requirements of IFRS, in so far as those requirements are applicable to the financial statements, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP.

The revised SORP, issued in October 2019, is applicable for accounting periods beginning on or after 1 January 2019 and early adoption is encouraged. The Company has chosen to early adopt the revised SORP. As a result, the presentation of gains and losses arising from disposals of investments and gains and losses on revaluation of investments have now been combined, as shown in note 13 with no impact to the net asset value or profit/(loss) reported for both the current or prior year. No other accounting policies or disclosures have changed as a result of the revised SORP.

(b)  Presentation of the Statement of Comprehensive Income

In order to better reflect the activities of an investment trust company and in accordance with the guidance set out by the AIC, supplementary information which analyses the Statement of Comprehensive Income between items of a revenue and capital nature has been presented alongside the Statement of Comprehensive Income. The result presented in the revenue return column is the measure the Directors believe appropriate in assessing the Company's compliance with certain requirements set out in Section 1158 of the Corporation Tax Act 2010.

(c)  Income

Dividends receivable from equity shares are taken to the revenue return column of the Statement of Comprehensive Income on an ex-dividend basis.

Special dividends are recognised on an ex-dividend basis and may be considered to be either revenue or capital items. The facts and circumstances are considered on a case-by-case basis before a conclusion on appropriate allocation is reached.

Where the Company has received dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised in the revenue return column of the Statement of Comprehensive Income. Any excess in value of shares received over the amount of cash dividend foregone is recognised in the capital return column of the Statement of Comprehensive Income.

The fixed returns on debt securities and non-equity shares are recognised under the effective interest rate method.

Bank interest is accounted for on an accrual basis. Interest outstanding at the year end is calculated on a time apportionment basis using market rates of interest.

(d)  Written Options

The Company may write exchange-traded options with a view to generating income. This involves writing short-dated covered- call options and put options. The use of financial derivatives is governed by the Company's policies, as approved by the Board.

These options are recorded initially at fair value, based on the premium income received, and are then measured at subsequent reporting dates at fair value. Changes in the fair value of the options are recognised in the capital return for the year.

The option premiums are recognised evenly over the life of the option and shown in the revenue return, with an appropriate amount shown in the capital return to ensure the total return reflects the overall change in the fair value of the options.

Where an option is exercised, any balance of the premium is recognised immediately in the revenue return with a corresponding adjustment in the capital return based on the amount of the loss arising on exercise of the option.  

(e)  Expenses and Finance Costs

All expenses, including the management fee, are accounted for on an accrual basis.

Expenses are allocated wholly to the revenue column of the Statement of Comprehensive Income except as follows:

Expenses are charged to the capital column of the Statement of Comprehensive Income where a connection with the maintenance or enhancement of the value of investments can be demonstrated. In this respect the investment management fees have been charged to the Statement of Comprehensive Income in line with the Board's expected long-term split of returns, in the form of capital gains and income from the Company's portfolio. As a result, 20% of the investment management fees are charged to the revenue account and 80% charged to the capital account of the Statement of Comprehensive Income.

Finance costs are calculated using the effective interest rate method and are accounted for on an accruals basis and, in line with the management fee expense, are charged 20% to the revenue account and 80% to the capital account of the Statement of Comprehensive Income.

Any performance fee accrued is charged entirely to capital as the fee is based on the outperformance of the Benchmark and is expected to be attributable largely, if not wholly, to capital performance. A provision will be recognised when outperformance has been achieved in accordance with the calculations detailed above and in the Annual Report .

The research costs relate solely to specialist financial research and are accounted for on an accrual basis. They are allocated 20% to revenue and 80% capital in line with the Board's expected long-term split of revenue and capital return from the Company's investment portfolio.

(f)  Taxation

The tax expense represents the sum of the overseas withholding tax deducted from investment income, tax currently payable and deferred tax.

The tax currently payable is based on the taxable profits for the year ended 30 November 2019. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted at the balance sheet date.

In line with the recommendations of the SORP, the allocation method used to calculate tax relief on expenses presented against capital returns in the supplementary information in the Statement of Comprehensive Income is the "marginal basis". Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return column of the Statement of Comprehensive Income, then no tax relief is transferred to the capital return column. Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

Investment trusts which have approval as such under section 1158 of the Corporation Tax Act 2010 are not liable for taxation on capital gains.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or when the asset is realised based on tax rates that have been enacted or substantively enacted at the balance sheet date.

Deferred tax is charged or credited in the Statement of Comprehensive Income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

(g)  Investments Held at Fair Value Through Profit or Loss

When a purchase or sale is made under contract, the terms of which require delivery within the timeframe of the relevant market, the investments concerned are recognised or derecognised on the trade date and are initially measured at fair value.

On initial recognition the Company has designated all of its investments as held at fair value through profit or loss as defined by IFRS. All investments are measured at subsequent reporting dates at fair value, which is either the bid price or the last traded price, depending on the convention of the exchange on which the investment is quoted.

Written options are valued at fair value using quoted bid prices.

All investments, classified as fair value through profit or loss, are further categorised into the fair value hierarchy detailed below.

Changes in fair value of all investments and derivatives held at fair value and realised gains and losses on disposal are recognised in the capital return column of the Statement of Comprehensive Income.

In respect of unquoted investments, or where the market for a financial instrument is not active, fair value is established by using various valuation techniques, in accordance with the International Private Equity and Venture Capital ("IPEVC") Valuation Guidelines - Edition December 2018. These may include using reference to recent arm's length market transactions between knowledgeable, willing parties, if available, reference to recent rounds of re-financing undertaken by investee companies involving knowledgeable parties, reference to the current fair value of another instrument that is substantially the same or an earnings multiple.

(h)  Receivables

Receivables are initially recognised at fair value and subsequently measured at amortised cost. Receivables do not carry any interest and are short-term in nature and are accordingly stated at their nominal value (amortised cost) as reduced by appropriate allowances for estimated irrecoverable amounts.

(i)  Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, maturity of three months or less, highly liquid investments that are readily convertible to known amounts of cash.

(j)  Dividends Payable

Dividends payable to shareholders are recognised in the financial statements when they are paid, or in the case of final dividends, when they are approved by the shareholders.  

(k)  Payables

Payables are not interest-bearing and are initially valued at fair value and subsequently stated at their nominal value (amortised cost).

(l)  Bank Loans

Interest-bearing bank loans are initially recognised at cost, being the proceeds received net of direct issue costs, and subsequently at amortised cost. The amounts falling due for repayment within one year are included under current liabilities in the Balance Sheet.

(m)  Foreign Currency Translation

Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling on the date of each transaction. Monetary assets, monetary liabilities and equity investments in foreign currencies at the balance sheet date are translated into Sterling at the rates of exchange ruling on that date.

Realised profits or losses on exchange, together with differences arising on the translation of foreign currency assets or liabilities, are taken to the capital return column of the Statement of Comprehensive Income.

Foreign exchange gains and losses arising on investments held at fair value are included within changes in fair value.

(n)  Share Capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity, as a deduction, net of tax, from the proceeds.

(o)  Capital Reserves

Capital reserve arising on investments sold includes:

-  gains/losses on disposal of investments;

-  exchange differences on currency balances; and

-  other capital charges and credits charged to this account in accordance with the accounting policies above.

Capital reserve arising on investments held includes:

-  increases and decreases in the valuation of investments held at the balance sheet date.

All of the above are accounted for in the Statement of Comprehensive Income.

(p)  Repurchase of Ordinary Shares

Where applicable, the costs of repurchasing ordinary shares including related stamp duty and transaction costs are taken directly to equity and reported through the Statement of Changes in Equity as a charge on the special distributable reserve. Share repurchase transactions are accounted for on a trade date basis.

The nominal value of ordinary share capital repurchased and cancelled is transferred out of called up share capital and into the capital redemption reserve.

(q)  Share issue costs

Where applicable, costs incurred directly in relation to the issue of new shares together with additional share listing costs have been deducted from the share premium reserve.

(r)  New and Revised Accounting Standards

There were no new IFRSs or amendments to IFRSs applicable to the current year which had any significant impact on the Company's accounts.

The following standards became effective on 1 January 2018 and the adoption of the standards and interpretations have not had a material impact on the financial statements of the Company.

IFRS 9 (2014) Financial Instruments

The requirements of IFRS 9 and its application to the assets and liabilities held by the Company were considered ahead of its adoption on 1 January 2018. The classification of all assets and liabilities remains unchanged under IFRS 9 and all figures will be directly comparable to the existing basis of valuation.

IFRS 15 Revenue from Contracts with Customers

IFRS 15 sets out the requirements for revenue recognition. The Company's only revenue streams are dividend income and gains and losses from sale of investments. Given the nature of the Company's revenue streams from financial instruments, the provisions of this standard have not had a material impact.

At the date of authorisation of these financial statements, the following new IFRS that potentially impact the Company are in issue but are not yet effective and have not been applied in these accounts:

Effective for periods commencing on or after 1 January 2019:

IFRS 16 Leases

As the Company neither holds, trades or has any lease obligations of any type, the provisions of this standard are not expected to have a material impact on the accounts.

IFRIC 23 Uncertainty over Income Tax Treatments

The interpretation provides guidance on considering uncertain tax treatments in relation to taxable profit or loss and does not add any new disclosures. The Company complies with all relevant tax laws where applicable and the provisions of this interpretation are not expected to have a material impact on the accounts.

IAS 19 (amended) Employee Benefits

As the Company has no employees, the amendment to this standard is not expected to have any impact on the accounts.

IAS 28 (amended) Investments in Associates and Joint Ventures

As the Company has no investment in associates or joint ventures, the amendment to this standard is not expected to have any impact on the accounts.

IFRS 9 (Amended) Prepayment Features with Negative Compensation

Negative compensation arises where the contractual terms permit a borrower to prepay the instrument before its contractual maturity, but the prepayment amount could be less than unpaid amounts of principal and interest. The Company has no such terms in any of its loan agreements in place and the amendment is not expected to have any impact on the accounts.

Annual Improvement Cycles 2015-2017 (Amendments)

This makes narrow-scope amendments to four IFRS Standards: IFRS 3 Business Combinations, IFRS 11 Joint Arrangements, IAS 12 Incomes Taxes and IAS 23 Borrowing costs. These limited amendments are not expected to have any impact on the accounts.

Effective for periods commencing on or after 1 January 2020:

IFRS 3 Business Combinations (amended)

IAS 1 and IAS 8 Definition of Material (amended)

References to the conceptual Framework in IFRS Standards (amended)

Effective for periods commencing on or after 1 January 2021:

IFRS 17 Insurance Contracts (issued on 18 May 2017)

The Directors expect that the adoption of the standards listed above will have either no impact or that any impact will not be material on the financial statements of the Company in future periods.

(s)  Segmental Reporting

Under IFRS 8, Operating Segments, operating segments are considered to be the components of an entity about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker has been identified as the Investment Manager (with oversight from the Board).

The Directors are of the opinion that the Company has only one operating segment and as such no distinct segmental reporting is required.

(t)  Critical Accounting Estimates and Judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Estimates and assumptions used in preparing the financial statements are reviewed on an ongoing basis and are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The results of these estimates and assumptions form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources.

The key judgements and sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities and expenses in future periods are as follows:

Valuation of Level 3 Investments

Investments valued using valuation techniques include unlisted financial investments, which by their nature, do not have an externally quoted price based on regular trades.

The valuation techniques used may include the techniques described in note 2(g). When determining the inputs into the valuation techniques used, priority is given to publicly available prices from independent sources when available, but overall the source of pricing is chosen with the objective of arriving at a fair value measurement that reflects the price at which an orderly transaction would take place between market participants at the balance sheet date.

3   Investment Income

	Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
UK dividends	1,763	1,712
Overseas dividends	9,028	8,912
Scrip dividends	125	146
Interest on debt securities	1,105	904
Total investment income	12,021	11,674

4   Other Operating Income

	Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
Bank interest	35	23
Interest on tax receivable	1	-
Total other operating income	36	23

5   Gains/(Losses) on Investments Held at Fair Value

	Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
Net gains on disposal of investments at historic cost	767	10,088
Less fair value adjustments in earlier years	(3,870)	(12,275)
Losses based on carrying value at previous balance sheet date	(3,103)	(2,187)
Valuation gains/(losses) on investments held during the year	24,028	(9,443)
	20,925	(11,630)

6   Other Currency Losses 

	Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
Exchange losses on currency balances	(76)	(63)

7   Investment Management Fee

	Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
Management fee
- charged to revenue	461	475
- charged to capital	1,846	1,900
Investment management fee payable to Polar Capital LLP	2,307	2,375

Management fees are allocated 20% to revenue and 80% to capital. Details of the fee arrangements are given in the Strategic Report above. No performance fees have been accrued for the year ended 30 November 2019 (2018: nil).

8   Other Administrative Expenses (including VAT where appropriate)

		Year ended 30 November 2019 £'000	Year ended 30 November 2018 £'000
Directors' fees1		106	95
Directors' NIC		6	6
Auditors' remuneration - for audit of the financial statements		33	26
Depositary fee2		25	28
Registrar fee		26	25
Custody and other bank charges2		42	42
UKLA and LSE listing fees		27	24
Legal and professional fees3		22	6
AIC fees		21	18
Directors' and officers' liability insurance		8	8
Corporate broker's fee		54	51
Marketing expenses4		87	9
Research costs5		4	4
Shareholder communications		26	25
HSBC administration fee		133	128
Other expenses6		26	11
		646	506
Research costs - allocated to capital5		15	15
		661	521

1  Full disclosure is given in the Directors' Remuneration Report in the Annual Report.

2  Fees determined on the pre-approved rate card with HSBC.

3  2019 includes Taiwan tax agent fee and legal costs relating to preparations for the reconstruction proposals.

4  Includes bespoke marketing expenses payable to Polar Capital LLP of £60,000.

5  Research costs (which applied from 3 January 2018) payable by the Company relate solely to specialist financial research. The estimated spend for the calendar year 2019 was US $24,476 (£18,922) (2018: US$ 26,811 (£21,013)), the cost of general non-specialist research was absorbed by Polar Capital. These costs are allocated 20% to revenue and 80% to capital and are included in the ongoing charges calculation.

6  2019 includes costs in relation to the Non-executive Director search fee.

9  Finance Costs

	Year ended 30 November 2019			Year ended 30 November 2018
	Revenue £'000	Capital £'000	Total £'000	Revenue £'000	Capital £'000	Total £'000
Interest on loans and overdrafts	49	197	246	61	241	302
Loan arrangement fees	11	45	56	8	33	41
	60	242	302	69	274	343

Finance costs are allocated 20% to revenue and 80% to capital.

10   Taxation 

a) Analysis of tax charge/(credit) for the year:

	Year ended 30 November 2019			Year ended 30 November 2018
	Revenue return £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000
Overseas tax	841	-	841	833	-	833
Tax relief in capital	237	(237)	-	257	(257)	-
Withholding tax recovered	(111)	-	(111)	-	-	-
Overseas capital gain tax	-	-	-	-	30	30
Total tax charge/(credit) for the year (see note 10b)	967	(237)	730	1,090	(227)	863

b) Factors affecting tax charge/(credit) for the year:

The tax charge/(credit) for the year can be reconciled to the profit per the Statement of Comprehensive Income as follows:
	Year ended 30 November 2019			Year ended 30 November 2018
	Revenue r eturn £'000	Capital return £'000	Total return £'000	Revenue return £'000	Capital return £'000	Total return £'000
Profit/(loss) before tax	10,890	18,746	39,636	10,647	(13,882)	(3,235)
Tax at the UK corporation tax rate of 19% (2018: 19%)	2,069	3,562	5,631	2,023	(2,637)	(614)
Tax effect of non-taxable dividends	(1,727)	-	(1,727)	(1,681)	-	(1,681)
(Gains)/losses on investments that are not taxable	-	(3,961)	(3,961)	-	2,222	2,222
Overseas tax suffered	841	-	841	833	-	833
Overseas capital gain tax	-	-	-	-	30	30
Unrelieved current period expenses and deficits	-	77	77	-	90	90
Withholding tax recovered	(111)	-	(111)	-	-	-
Tax relief on overseas tax suffered	(105)	85	(20)	(85)	68	(17)
Total tax for the year (see note 10a)	967	(237)	730	1,090	(227)	863

c) Factors that may affect future tax charges: 

The Company has an unrecognised deferred tax asset of £222,000 (30 November 2018: £126,000) based on a prospective corporation tax rate of 17% (2018: 17%).

The deferred tax asset has arisen due to the cumulative excess of deductible expenses over taxable income. Given the composition of the Company's portfolio, it is not likely that this asset will be utilised in the foreseeable future and therefore no asset has been recognised in the financial statements.

Given the Company's intention to continue to meet the conditions required to retain its status as an Investment Trust Company, no provision has been made for deferred tax on any capital gains or losses arising on the revaluation or disposal of investments.

11   Earnings/(Losses) Per Ordinary Share 

The calculation of basic earnings/(losses) per share is based on the following data:	Year ended 30 November 2019			Year ended 30 November 2018
	Revenue return	Capital return	Total return	Revenue return	Capital return	Total return
Net profit/(loss) for the year (£'000)	9,923	18,983	28,906	9,557	(13,655)	(4,098)
Weighted average ordinary shares in issue during the year	202,775,000	202,775,000	202,775,000	202,775,000	202,775,000	202,775,000
From continuing operations
Basic - ordinary shares (pence)	4.89	9.36	14.25	4.71	(6.73)	(2.02)

As at 30 November 2019 there were no potentially dilutive shares in issue (2018: nil).

12   Amounts Recognised as Distributions to Ordinary Shareholders in the Year

  Dividends paid in the year ended 30 November 2019

Payment date	No of shares	Amount per share	Year ended 30 November 2019 £'000
28 February 2019	202,775,000	1.90p	3,853
30 August 2019	202,775,000	2.40p	4,867
			8,720

The revenue available for distribution by way of dividend for the year is £9,923,000 (2018: £9,557,000).

The total dividends payable in respect of the financial year ended 30 November 2019, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered, are set out below:

Payment date	No of shares	Amount per share	Year ended 30 November 2019 £'000
30 August 2019	202,775,000	2.40p	4,867
28 February 2020	202,775,000	2.00p	4,055
			8,922

The total dividends payable in respect of the financial year ended 30 November 2018, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered, are set out below:  

Payment date	No of shares	Amount per share	Year ended 30 November 2018 £'000
31 August 2018	202,775,000	2.25p	4,562
28 February 2019	202,775,000	1.90p	3,853
			8,415

13   Investments Held at Fair Value Through Profit or Loss

  (a) Investments held at fair value through profit or loss*

	30 November 2019 £'000	30 November 2018 £'000
Opening book cost	232,411	222,644
Opening investment holding gains/(losses)	54,013	75,731
Opening fair value	286,424	298,375
Analysis of transactions made during the year
Purchases at cost	78,759	53,910
Sales proceeds received	(72,613)	(54,324)
Gains/(losses) on investments held at fair value	20,925	(11,630)
Amortisation on fixed interest securities	110	93
Closing fair value	313,605	286,424
Closing book cost	239,434	232,411
Closing investment holding gains	74,171	54,013
Closing fair value	313,605	286,424

The Company received £72,613,000 (2018: £54,324,000) from disposal of investments in the year. The book cost of these investments when they were purchased was £71,846,000 (2018: £44,236,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.

The following transaction costs, including stamp duty and broker commissions, were incurred during the year:

	30 November 2019 £'000	30 November 2018 £'000
On acquisitions	102	51
On disposals	47	31
	149	82

*Note 13(a), including the prior year, has been updated in accordance with the presentational guidance set out in the Statement of Recommended Practice (SORP) for investment trusts issued by the Association of Investment Companies (AIC) in October 2019.

 (b) Fair value hierarchy 

The Company's financial instruments within the scope of IFRS 7 that are held at fair value comprise its investment portfolio and derivative financial instruments.

They are categorised into a hierarchy consisting of the following three levels:

Level 1 - valued using quoted prices in active markets for identical assets or liabilities.

Level 2 - valued by reference to valuation techniques using observable inputs other than quoted market prices included within Level 1.

Level 3 - valued by reference to valuation techniques using inputs that are not based on observable market data.

Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair value measurement of the relevant asset.

Details of the valuation techniques used by the Company are given in note 2(g) above.

The following tables set out the fair value measurements using the IFRS 7 hierarchy at 30 November 2019 and 2018:

	As at 30 November 2019
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Equity Investments	288,954	-	3,191	292,145
Interest-bearing securities	21,460	-	-	21,460
Total	310,414	-	3,191	313,605
The Level 3 investment relates to the shares in Atom Bank.
	As at 30 November 2018
	Level 1 £'000	Level 2 £'000	Level 3 £'000	Total £'000
Equity Investments	262,711	-	3,191	265,902
Interest-bearing securities	20,522	-	-	20,522
Total	283,233	-	3,191	286,424

The Level 3 investment relates to the shares in Atom Bank.

There have been no transfers during the year between Levels 1 and 2. A reconciliation of fair value measurements in Level 3 is set out below.

Level 3 investments at fair value through profit or loss	30 November 2019 £'000	30 November 2018 £'000
Opening balance	3,191	3,191
Closing balance	3,191	3,191

Level 3 Investments are recognised at fair value through profit or loss on a recurring basis.

Level 3 investments are valued by comparison to recent arm's length transactions. As such, the valuation of the investment in Atom Bank reflects the price per share at which Atom Bank agreed terms with external shareholders and at which additional capital was raised in both 2017 and 2018. An investment valuation decision was taken not to increase the valuation of Atom Bank during the year.

A +/- 10% change in the price used to value the investment in Atom Bank as at the year end would result in a +/- £319,000 (2018: £319,000) impact on the profit or loss.

c)  Unquoted investments 

The value of the unquoted investments as at 30 November 2019 was £3,191,000 (2018: £3,191,000) and the portfolio comprised the following holdings:

	30 November 2019 £'000	30 November 2018 £'000
Atom Bank	3,191	3,191
	3,191	3,191

At 30 November 2019, the Company owned 0.64% (2018: 0.71%) of Atom Bank's issued share capital. Atom Bank was granted a full banking licence on 4 April 2016 and started to accept savings and loan business from this date.

At 31 March 2019 (Atom Bank's financial year end), Atom Bank announced that it had made pre-tax losses of £79,857,000 (2018: £52,680,000) and had net assets attributable to shareholders of £212,704,000 (2018: £134,971,000).

The valuation of Atom Bank was reviewed by the Investment Manager and Board during both the half year and full year financial results processes. Taking into account the operating performance of the bank and its expected future performance, market movements in the share prices of UK banks and the valuations at which other start-up banks have raised capital, in both instances the valuation was left unchanged from the price at which it raised capital from shareholders during 2017 and 2018.   In the event of the Proposals, as detailed in the Chairman's Statement, not being passed, the Board will bring forward liquidation proposals; it is recognised that within such proposals a discount may need to be applied to the value that may be achieved in a forced sale situation of the holding in Atom Bank.

14   Receivables 

	30 November 2019 £'000	30 November 2018 £'000
Securities sold awaiting settlement	-	597
VAT recoverable	10	2
Dividends and interest receivable	770	814
Prepayments	27	26
	807	1,439

15   Cash and Cash Equivalents 

	30 November 2019 £'000	30 November 2018 £'000
Cash at bank	1,780	5,977
Cash held at derivative clearing houses	2,395	2,386
Bank overdraft	4,175 (4,875)	8,363 -
	(700)	8,363

16   Payables 

	30 November 2019 £'000	30 November 2018 £'000
Securities purchased awaiting settlement	2,412	-
Accruals	446	456
	2,858	456

17   Bank Loans

i)  Bank loans

	30 November 2019 £'000	30 November 2018 £'000
The Company has the following unsecured Sterling loans:
£15m at 1.775% repayable 12 July 2019	-	15,000
£10m at 1.51% repayable 12 July 2020	10,000	-
	10,000	15,000

During the year, the Company repaid the drawn down amount of £15m on the £30m bank loan facility with ING Bank N.V. and entered into a replacement arrangement with ING Luxembourg SA for a one-year revolving credit facility of £20m and a one-year term loan of £10m.

The revolving credit facility of £20m expires on 12 July 2020. This facility was undrawn at the year end. Since the year end,

£12.5m has been drawn down and £7.5m remains available on the credit facility.

The term loan of £10m held at the year end is due for settlement within 12 months and is stated at its fair value, which equates to amortised cost.

Both the term loan and credit facility are unsecured but subject to certain covenants and restrictions, all of which have been complied with during the year. The main covenants to the current loan and credit facility are:

(i)  Total borrowings shall not exceed 35%.

(ii)  The Company's minimum net asset value shall be £50m.

(iii)  The Company shall not change the Investment Manager without the prior consent of the shareholders.

(iv)  The Company shall ensure that the collateral posted with CFD and derivative transaction counterparties shall not exceed an aggregate of 8% of the net asset value.

ii)  Reconciliation of bank loans

	30 November 2019 £'000	30 November 2018 £'000
Bank loans held as at 1 December 2018	15,000	10,000
Loan repaid	(15,000)	(22,500)
Loan drawn	10,000	27,500
Bank loans held as at 30 November 2019	10,000	15,000

18   Called Up Share Capital 

	30 November 2019 £'000	30 November 2018 £'000
Allotted, Called up and Fully paid:
Ordinary shares of 5p each:
Opening balance of 202,775,000 (30 November 2018: 202,775,000)	10,139	10,139
Allotted, Called up and Fully paid: 202,775,000 (30 November 2018: 202,775,000) ordinary shares of 5p	10,139	10,139
At 30 November 2019	10,139	10,139

This reserve is not distributable.

No ordinary shares were repurchased or cancelled in the year (2018: nil).

19   Capital Redemption Reserve 

	30 November 2019 £'000	30 November 2018 £'000
At 1 December 2018	251	251
At 30 November 2019	251	251

This reserve is not distributable.

20   Share Premium Reserve 

	30 November 2019 £'000	30 November 2018 £'000
At 1 December 2018	55,854	55,852
Adjustment to prior year subscription share conversion cost*	-	2
At 30 November 2019	55,854	55,854

This reserve is not distributable.

*  The adjustment related to the refund of the fee paid out from share premium reserve and VAT adjustment as part of the subscription share conversion, and was paid back in 2018.

21   Special Distributable Reserve 

	30 November 2019 £'000	30 November 2018 £'000
At 1 December 2018	139,235	139,235
At 30 November 2019	139,235	139,235

Surpluses to the credit of the special distributable reserve can be used to purchase the Company's own shares. In addition, the Company may use this reserve for the payment of dividends.

22   Capital Reserves 

	30 November 2019 £'000	30 November 2018 £'000
At 1 December 2018	67,469	81,124
Net losses on disposal of investments	(3,103)	(2,187)
Valuation gains/(losses) on investments held during the year	24,028	(9,443)
Exchange losses on currency balances	(76)	(63)
Investment management fee charged to capital	(1,846)	(1,900)
Research costs charged to capital	(15)	(15)
Finance costs	(242)	(274)
Overseas capital gain tax	-	(30)
Tax relief due from revenue	237	257
At 30 November 2019	86,452	67,469

The balance on the capital reserve represents a profit of £74,171,000 (2018: profit of £54,013,000) on investments held and a gain of £12,281,000 (2018: gain of £13,456,000) on investments sold.

The balance on investments held comprises holding gains on investments (which may be deemed to be realised) and other amounts, which are unrealised. An analysis has not been made between the amounts that are realised (and may be distributed or used to repurchase the Company's shares) and those that are unrealised.

The balance on investments sold are realised distributable capital reserves which may be used to repurchase the Company's shares or be distributed as dividends.

23   Revenue Reserve 

	30 November 2019 £'000	30 November 2018 £'000
At 1 December 2018	8,036	6,691
Revenue profit	9,923	9,557
Interim dividends paid	(8,720)	(8,212)
At 30 November 2019	9,239	8,036

The revenue reserve may be distributed or used to repurchase the Company's shares (subject to being a positive balance).

24   Net Asset Value Per Ordinary Share 

	30 November 2019	30 November 2018
Net assets attributable to ordinary shareholders (£'000)	301,170	280,984
Ordinary shares in issue at end of year	202,775,000	202,775,000
Net asset value per ordinary share (pence)	148.52	138.57

As at 30 November 2019, there were no potentially dilutive shares in issue (2018: nil).

25   Transactions with the Investment Manager and Related Party Transactions

(a) Transactions with the manager 

Under the terms of an agreement dated 11 June 2013, the Company has appointed Polar Capital LLP ("Polar Capital") to provide investment management, accounting, secretarial and administrative services. Details of the fee arrangement for these services are given in the Strategic Report. The total fees paid under this agreement to Polar Capital in respect of the year ended 30 November 2019 were £2,307,000 (2018: £2,375,000) of which £201,000 (2018: £184,000) was outstanding at the year end.

In addition, the total research costs in respect of the period from 1 January 2019 to 30 November 2019 were £19,000 (2018: £19,000) of which £9,000 (2018: £13,000) was outstanding at the year-end.

(b) Related party transactions 

The Company has no employees and therefore no key management personnel other than the Directors. The Company paid £106,000 (2018: £95,000) to the Directors of which £34,000 (2018: £26,000) was outstanding at the year end and the Remuneration Report is provided in the Annual Report. When dividends are paid by the Company these are received by the Directors at the same rates and terms as by all other shareholders.

26   Derivatives and Other Financial Instruments 

Risk management policies and procedures for the Company 

The Company invests in equities, debt securities and other financial instruments for the long-term to further the investment objective set out above.

This exposes the Company to a range of financial risks that could impact on the assets or performance of the Company.

The main risks arising from the Company's pursuit of its investment objective are market risk, liquidity risk and credit risk and the Directors' approach to the management of them is set out below.

The Company's exposure to financial instruments can comprise:

- Equity and non-equity shares and fixed interest securities which may be held in the investment portfolio in accordance with the investment objective.

- Borrowings, the main purpose of which is to enhance returns.

- Cash, liquid resources and short-term debtors and creditors that arise directly from the Company's operations.

- Derivative transactions which the Company enters into may include equity or index options, contracts for difference, index futures contracts, and forward foreign exchange contracts. The purpose of these is to manage the market price risks and foreign exchange risks arising from the Company's investment activities.

The overall management of the risks is determined by the Board and its approach to each risk identified is set out below. The Board and the Investment Manager co-ordinate the risk management and the Investment Manager assesses the exposure to market risk when making each investment decision.  

(a) Market Risk

Market risk comprises three types of risk: market price risk (see note 26(a)(i)), currency risk (see note 26(a)(ii)), and interest rate risk (see note 26(a)(iii)). Further details are included in the Strategic Report above.

(i) Market Price Risk

The Company is an investment company and as such its performance is dependent on its valuation of its investments. Consequently, market price risk is the most significant risk that the Company faces.

Market price risk arises mainly from uncertainty about future prices of financial instruments used in the Company's operations. It represents the potential loss the Company might suffer through holding market positions in the face of price movements.

A detailed breakdown of the investment portfolio is provided above. Investments are valued in accordance with the accounting policies as stated in note 2(g).

At the year end, there was no derivative instrument included in the Company's portfolio (2018: nil).

Management of the risk

In order to manage this risk it is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce both the statistical risk and the risk arising from factors specific to a particular financial sub-sector. The allocation of assets to international markets, together with stock selection covering small, medium and large companies, and the use of options, are additional factors which act to reduce price risk. The Investment Manager actively monitors market prices and reports to the Board, which meets regularly in order to consider investment strategy.

Market price risk exposure

The Company's exposure to changes in market prices on its investments at 30 November was as follows:

	30 November 2019 £'000	30 November 2018 £'000
Investments held at fair value through profit or loss	313,605	286,424

Market price risk sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and the value of shareholders' funds to an increase or decrease of 15% (2018: 15%) in the fair values of the Company's investments. This level of change is considered to be reasonably possible based on observation of current market conditions and historic trends. The sensitivity analysis is based on the Company's investments at each balance sheet date, adjusting for a change in management fee, with all other variables held constant.

	30 November 2019		30 November 2018
	Increase in fair value £'000	Decrease in fair value £'000	Increase in fair value £'000	Decrease in fair value £'000
Statement of Comprehensive Income - profit after tax
Revenue return	(80)	80	(73)	73
Capital return	46,721	(46,721)	42,671	(42,671)
Change to the profit after tax for the year	46,641	(46,641)	42,598	(42,598)
Change to equity attributable to shareholders	46,641	(46,641)	42,598	(42,598)

(ii) Currency Risk 

The Company's total return and net assets can be significantly affected by currency translation movements as the majority of the Company's assets and revenue are denominated in currencies other than Sterling.

Management of the risk

The Investment Manager mitigates risks through an international spread of investments.

Derivative contracts may be used to hedge against the exposure to currency risk at the Investment Manager's discretion.

Foreign currency exposure

The table below shows, by currency, the split of the Company's monetary assets, liabilities and investments that are priced in currencies other than Sterling.

	30 November 2019 £'000	30 November 2018 £'000
Monetary Assets:
Cash and short-term receivables
US dollars	1,501	530
Taiwan dollars	1,245	507
Hong Kong dollars	638	-
Indian rupee	603	-
Norwegian krona	369	29
Euros	277	303
Japanese yen	89	171
Philippine peso	28	-
Monetary Liabilities:
Payables
Norwegian krona	(299)	-
Indonesian rupiah	(301)	-
Indian rupee	(603)	-
Hong Kong dollars	(606)	-
US dollar	(1,027)	(14)
Foreign currency exposure on net monetary items	1,914	1,526
Non-Monetary Items:
Investments held at fair value through profit or loss
US dollars	162,473	133,913
Euros	31,321	39,720
Hong Kong dollars	18,761	13,855
Singapore dollars	10,231	12,761
Canadian dollars	10,219	6,413
Indian rupee	8,882	5,865
Norwegian krona	8,052	4,865
Indonesian rupiah	5,134	-
Taiwan dollars	4,994	4,100
Japanese yen	4,373	9,671
Philippine peso	3,555	-
Thai baht	3,113	3,041
Swiss francs	2,421	3,385
Mexican peso	2,206	-
Swedish krone	-	5,702
Australian dollars	-	3,844
Total net foreign currency exposure	277,649	248,661

Foreign currency sensitivity 

The following tables illustrate the sensitivity of net profit for the year and net assets with regard to the Company's monetary financial assets and liabilities and exchange rates. The sensitivity analysis is based on the Company's monetary currency financial instruments held at the balance sheet date and assumes a 15% (2018: 15%) appreciation or depreciation in Sterling against the currencies to which the Company is exposed, which is considered to be a reasonable illustration based on the volatility of exchange rates during the year.

If Sterling had weakened by 15% this would have had the following effect:

	30 November 2019 £'000	30 November 2018 £'000
Statement of Comprehensive Income - profit after tax
Revenue return	1,276	1,261
Capital return	287	229
Change to the profit after tax for the year	1,563	1,490
Change to equity attributable to shareholders	1,563	1,490

Conversely, if Sterling had strengthened by 15% this would have had the following effect:

	30 November 2019 £'000	30 November 2018 £'000
Statement of Comprehensive Income - profit after tax
Revenue return	(1,276)	(1,261)
Capital return	(287)	(229)
Change to the profit after tax for the year	(1,563)	(1,490)
Change to equity attributable to shareholders	(1,563)	(1,490)

In the opinion of the Directors, while these are regarded as reasonable estimates, neither of the above sensitivity analyses are representative of the year as a whole since the level of exposure changes frequently as part of the currency risk management process used to meet the Company's objectives.

(iii) Interest Rate Risk

The Company will be affected by interest rate changes as it holds interest-bearing financial assets. Interest rate changes will also have an impact on the valuation of investments, although this forms part of price risk, which is considered separately above.

Management of the risk

The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment decisions.

Derivative contracts may be used to hedge against the exposure to currency risk at the Investment Manager's discretion.

Interest rate exposure

The exposure, at 30 November 2019, of financial assets and liabilities to interest rate risk is shown by reference to:

-  Floating interest rates (i.e. giving cash flow interest rate risk) - when the rate is due to be re-set; and

-  Fixed interest rates (i.e. giving fair value interest rate risk) - when the financial instrument is due for repayment.

	30 November 2019
	Within one year £'000	More than one year £'000	Total £'000
Exposure to floating interest rates:
Cash and cash equivalents	4,175	-	4,175
Bank overdraft	(4,875)	-	(4,875)
Non-current asset investments held at fair value through profit or loss	-	15,809	15,809
Exposure to fixed interest rates:
Non-current asset investments held at fair value through profit or loss	-	5,651	5,651
Bank loans	(10,000)	-	(10,000)
Total exposure to interest rates	(10,700)	21,460	10,760

	30 November 2018
	Within one year £'000	More than one year £'000	Total £'000
Exposure to floating interest rates:
Cash and cash equivalents	8,363	-	8,363
Non-current asset investments held at fair value through profit or loss	-	14,343	14,343
Exposure to fixed interest rates:
Non-current asset investments held at fair value through profit or loss	-	6,179	6,179
Bank loans	(15,000)	-	(15,000)
Total exposure to interest rates	(6,637)	20,522	13,885

The weighted average interest rate for the fixed rate financial assets was 8.2% (30 November 2018: 9.2%) and the effective period for which the rate was fixed was 2.8 years (30 November 2018: 3.4 years).

During the year, the Company entered a £10m (2018: £15m with ING Bank N.V.) term loan with ING Luxembourg SA. Interest is payable at a fixed rate of 1.51%. The loan will expire on 12 July 2020. Details of the amounts drawn on the term loan are given in note 17.

The Company also agreed a one-year revolving credit facility for the amount of £20m (2018: £15m with ING Bank N.V.) with ING Luxembourg SA. Interest is payable at a rate of LIBOR as quoted in the market for the relevant currency and period, plus a margin, plus mandatory costs, which are the lender's costs of complying with certain regulatory requirements of the Bank of England. The facility was undrawn at the year end.

Since the year end, the Company has drawn down £12.5m from the revolving credit facility; £7.5m was drawn down on 4 December 2019 at an interest rate of 1.727% and an additional £5m was drawn down on 17 January 2020 at an interest rate of 1.5885%. Both are repayable on the expiry of the facility on 13 July 2020 or earlier if the reconstruction Proposals are not approved.

The above amounts are not necessarily representative of the exposure to interest rates in the year ahead, as the level of cash and investment in fixed interest securities varies during the year according to the performance of the stock market, events within the wider economy and the Investment Manager's decisions on the best use of cash or borrowings over the year.

Interest rate sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decrease of 25 basis points in interest rates in respect of the Company's monetary financial assets, which are subject to interest rate risk. This level of change is considered to be reasonably possible based on observation of current market conditions.

The sensitivity analysis is based on the Company's monetary financial instruments held at each balance sheet date, with all other variables held constant.

	30 November 2019		30 November 2018
	Increase in rate £'000	Decrease in rate £'000	Increase in rate £'000	Decrease in rate £'000
Effect on revenue return	(2)	2	21	(21)
Effect on capital return	-	-	-	-
Effect on net profit and on equity attributable to shareholders	(2)	2	21	(21)

In the opinion of the Directors, the above sensitivity analyses may not be representative of the year as a whole, since the level of exposure may change.

(b)  Liquidity Risk

Liquidity risk is the possibility of failure of the Company to realise sufficient assets to meet its financial liabilities.

Management of the risk

The Company's assets mainly comprise readily realisable securities which may be sold to meet funding requirements as necessary.

Liquidity risk exposure

At 30 November the financial liabilities comprised of:

	30 November 2019 £'000	30 November 2018 £'000
Due within 1 month:
Balances due to brokers	2,412	-
Accruals	446	456
Bank overdraft	4,875	-
Due after 3 months and within 1 year:
Bank loan	10,000	15,000
	17,733	15,456

(c) Credit Risk 

Credit risk is the exposure to loss from failure of a counterparty to deliver securities or cash for acquisitions or disposal of investments or to repay deposits.

Management of the risk

The Company manages credit risk by using brokers from a database of approved brokers and by dealing through Polar Capital. All cash balances are held with approved counterparties.

HSBC Bank plc is the custodian of the Company's assets. The Company's assets are segregated from HSBC's own trading assets and are therefore protected in the event that HSBC were to cease trading.

These arrangements were in place throughout the current and prior year.

Credit risk exposure

The maximum exposure to credit risk at 30 November 2019 was £4,945,000 (2018: £9,774,000) comprising:

	30 November 2019 £'000	30 November 2018 £'000
Balances due from brokers	-	597
Accrued income	770	814
Cash and cash equivalents	4,175	8,363
	4,945	9,774

All of the above financial assets are current, their fair values are considered to be the same as the values shown and the likelihood of a material credit default is considered low. None of the Company's financial assets are past due or impaired. All deposits were placed with banks that had ratings of A or higher.  

(d) Gearing Risk

The Company's policy is to increase its exposure to markets through the judicious use of borrowings. When borrowings are invested, this magnifies the impact on shareholders' funds of changes, both positive and negative, in the value of the portfolio.

Management of the risk

The Company uses short-term loans to manage gearing risk, details of which can be found in note 17.

Gearing risk exposure

The loans are valued at amortised cost, using the effective interest rate method in the financial statements.  

(e) Capital Management Policies and Procedures

The Company's capital, or equity, is represented by its net assets which amounted to £301,170,000 as at 30 November 2019 (£280,984,000 as at 30 November 2018),which are managed to achieve the Company's investment objective set out above.

The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis.

This review includes:  

(i)  the need to issue or buy back equity shares for cancellation, which takes account of the difference between the net asset value per share and the share price (i.e. the level of share price discount or premium),

(ii)  the determination of dividend payments; and

(iii)  the planned level of gearing through the Company's fixed rate loan facility.

The Company is subject to externally imposed capital requirements through the Companies Act 2006 with respect to its status as a public company. In addition, in order to pay dividends out of profits available for distribution by way of dividend, the Company has to be able to meet one of the two capital restriction tests imposed on investment companies by company law.  

27  Capital Commitments, Contingent Assets and Liabilities 

Capital Commitments 

The Company has no commitments to further investment in Atom Bank (2018: £nil) or any other investee companies.

28.  Post Balance Sheet Events

After the year end, £12.5m has been drawn down from the Company's one year revolving credit facility of £20m with ING Luxembourg SA. Following this draw down, £7.5m remains available on the credit facility.

On 6 February 2020, an announcement was released by the Company detailing a number of Proposals for the reconstruction of the Company ahead of the end of the fixed seven-year life. A Circular to shareholders will be distributed in early March with the expectation that a General Meeting of the Company will be held in early April 2020.

There are no other significant events that have occurred after the end of the reporting period to the date of this report which

require disclosure.

Status of announcement 

The figures and financial information contained in this announcement are extracted from the Audited Annual Report for the year ended 30 November 2019 and do not constitute statutory accounts for the year. The Annual Report and Financial Statements include the Report of the Independent Auditors which is unqualified and does not contain a statement under either section 498(2) or Section 498(3) of the Companies Act 2006.

The Annual Report and Financial Statements for the year ended 30 November 2019 have not yet been delivered to the Registrar of Companies. The figures and financial information for the year ended 30 November 2018 are extracted from the published Annual Report and Financial Statements for the year ended 30 November 2018 and do not constitute the statutory accounts for that year. The Annual Report and Financial Statements for the year ended 30 November 2018 have been delivered to the Registrar of Companies and included the Report of the Independent Auditors which was unqualified and did not contain a statement under either section 498(2) or Section 498(3) of the Companies Act 2006.

The Directors' Remuneration Report and certain other helpful shareholder information has not been included in this announcement but forms part of the Annual Report which will be available on the Company's website and will be sent to shareholders in or around early March 2020. (www.polarcapitalglobafinancialstrust.com).

AGM 

A separate Notice of Meeting for the Annual General Meeting will be posted to shareholders in or around mid-April 2020 and will be available thereafter from the Company Secretary at the Registered Office, 16 Palace Street, London, SW1E 5JD or from the Company's website.

Forward Looking Statements

Certain statements included in the Annual Report and Financial Statements contain forward-looking information concerning the Company's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which the Company operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within the Company's control or can be predicted by the Company. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the principal risks and uncertainties included in the Strategic Report Section of the Annual Report and Financial Statements.

No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in Polar Capital Global Financials Trust plc or any other entity and must not be relied upon in any way in connection with any investment decision. The Company undertakes no obligation to update any forward-looking statements. Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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