Highlights
- Financial sector stocks may fall under categories like retail and commercial banking, asset management, and insurance.
- Some financial stocks may gain from rising inflation and interest rates.
The financial sector is very diverse and comprises of various types of UK firms offering a wide range of services to individuals and businesses, such as insurance, loans, savings, money management, and payments. Thus, the financial sector stocks may fall under categories like retail and commercial banking, asset management, credit cards, accounting, insurance, and brokerage.
Even during these rough times with soaring inflation, financial stocks have been on the radar of investors lately as they are generally inflation resistant. The rising inflation leading to an increase in interest rate may actually be good for some financial stocks as it increases their profit margins.
As of September 2021, the total number of financial firms trading on the LSE stood at 721, with a market cap of approximately £902 billion.
Let’s take a look at 5 lesser-known FTSE financial stocks that have given high returns to investors in last one year.
RELATED READ: Why banking stocks are good options amid rising interest rates?
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Record plc (LON: REC)
UK-based currency management company Record plc offers management consulting services with assets under management for foundations, pension funds, and other institutional clients across the globe. The market cap of the company stands at £150.49 million, and it has provided a return of 61.15% to its shareholders over the past year as of 2 February 2022. Record plc’s shares were trading at GBX 75.60 at 8:25 AM on 2 February 2022.
River and Mercantile Group PLC (LON: RIV)
Advisory and asset management business River and Mercantile Group PLC provides pension schemes, investment management, consulting services, fund management, and other similar financial services. The market cap of the company stands at £243.54 million, and it has provided a return of 27.80% to its shareholders over the past year as of 2 February 2022. River and Mercantile Group plc’s shares were trading at GBX 285.00 at 8:32 AM on 2 February 2022.
Aberdeen Standard Equity Income Trust Plc (LON:ASEI)
UK-based company Aberdeen Standard Equity Income Trust Plc offers above average income to shareholders from equity investments while providing them with real growth in terms of capital as well as income. The market cap of the company stands at £174.36 million, and it has provided a return of 21.13% to its shareholders over the past year as of 2 February 2022. Aberdeen Standard Equity Income Trust plc’s shares were trading at GBX 363.00 at 8:43 AM on 2 February 2022.
RELATED READ: 7 most bought FTSE stocks despite inflation concerns
XPS Pensions Group PLC (LON: XPS)
UK-based pensions consultancy XPS Pensions Group plc mainly focuses on investment consulting along with actuarial and administration. The market cap of the company stands at £291.32 million, and it has provided a return of 21.37% to its shareholders over the past year as of 2 February 2022. XPS Pensions Group plc’s shares were trading at GBX 142.00 at 9:34 AM on 2 February 2022.
Polar Capital Global Financials Trust Plc (LON: PCFT)
Polar Capital Global Financials Trust Plc is a portfolio that is actively managed with an aim of providing strong income and capital gains to investors. The market cap of the company stands at £521.23 million, and it has provided a return of 30.23% to its shareholders over the past year as of 2 February 2022. Polar Capital Global Financials Trust plc’s shares were trading at GBX 179.50 at 9:36 AM on 2 February 2022.