Financial stocks are still undervalued compared to other sectors and their historical averages. Although earlier gains in 2026 have been lost, Polar Capital Global Financials Trust (PCFT) has outperformed this year in NAV terms, thanks to strong stock selection by its managers.
Some PCFT holdings are already showing strong potential to cut costs and boost profits using AI. This adds to the sector’s appeal, as trading conditions normalise and regulations ease. Despite this, many investors still see the sector through the lens of the global financial crisis nearly 20 years ago. If sentiment changes, there could be a major rerating, and PCFT is well placed to benefit.
Article originally published by Polar Capital. FE fundinfo is not responsible for its content or accuracy and may not share the author’s views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.
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