Polar Capital plans to launch a fund investing in global financial stocks and may also alter its European financials fund following its acquisition of Him Capital, a specialist financials investor.
The new Polar Capital financial opportunities fund will be managed by John Yakas and regulated under the European Union Ucits III funds directive.
Yakas, who also manages the Asian Financials and European Financials funds, says many investors have “an appetite for financials” but the funds Polar Capital is offering are too specialised.
Once the financial opportunities fund is launched, Polar Capital may also change the regions in which it is able to invest its European financials portfolio.
“European financials has done well but it is relatively small and very specialised,” says Yakas. “In Europe, a large part of the banking sector is under stress and it remains difficult to invest in the southern European countries.”
Polar Capital expects to launch the Dublin-domiciled global fund next month. The fund will seek out opportunities for investment in the recovering American and European markets. It will also favour larger companies and, in terms of sectors, banks.
The fund will, however, be launched with a bias towards emerging markets. Yakas considers the region to be “fundamentally more interesting” in terms of the profitability and growth of its financial sectors.
Yakas says the fund will aim to increase investors’ capital rather than focus on collecting dividend income.