Polar Capital Holdings plc, a UK-based research driven investment management firm, has announced its intention to launch the Polar Capital Global Financials Trust plc (PCFT).
PCFT, which will be managed by Nick Brind and John Yakas, is expected to seek an approval for the trading of its ordinary shares on the London Stock Exchange plc with a main market, premium listing.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to Polar Capital Holdings, PCFT is aiming to raise more than £100 million through a proposed placing and offer for subscription, in order to facilitate the retail element of the offer.
PCFT is expected to generate progressive dividend income plus capital growth by investing in a diversified global portfolio of equity, debt and other securities of listed financial stocks. It is expected that 90% of PCFT at outset will be in equities.
PCFT will seek to pay dividends at the rate initially of 3.1p annually (equal to an initial yield of 3.1%) with the aim of increasing the dividend progressively thereafter. The manager will be Polar Capital LLP.
PCFT will have a fixed life to May 2020 with an Annual Management Fee of 0.85 per cent per annum, based on the lower of market capitalization or NAV of PCFT so as to align the manager’s and shareholders’ interests.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIn addition, a performance fee may be payable at the end of the company’s life. The subscription shares will be attached to ordinary shares issued on IPO on a 1 for 5 basis, exercisable in April 2017 at a price of 115 pence (issue price is 100p per ordinary share).
Initially three members who, where they receive their fees personally, will reinvest 50% of their net remuneration back into PCFT’s shares for at least the first five years.
