European ex-UK Income Fund - Desktop and Mobile

A long-term track record

Since launch, the Polar Capital European ex UK Income Fund has built a strong performance track record over the long-term, ranking in the top quartile of its peer group since inception3.

A leading investment team

1 year

3 years

GBP Class I Acc

Index

Relative

8.0%

27.6%

14.6%

+9.36%

-9.66%

+18.23%

Past performance is not indicative or a guarantee of future returns. Source: Polar Capital and Bloomberg, as at 30 September 2024. The Polar Capital European ex UK Income Fund was launched on 30 June 2015. Performance figures represent the GBP I Acc Share Class. Performance data takes account of fees paid by the fund but does not take account of any commissions or costs you may pay to third parties when subscribing for or redeeming shares or any taxes or securities account charges that you may pay on your investment in the fund. Such charges will reduce the performance of your investment. A 5% subscription fee can be charged at the Investment Managers discretion. The index performance figures are sourced from Bloomberg and are in GBP terms.

We are trying to find cheap, boring companies with an attractive starting valuation and the ability to compound earnings over time. We feel there is great potential over the medium term that cannot be achieved from overvalued growth stocks or bonds that yield less than inflation.

Nick Davis, Fund Manager

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Nick Davis, manager of the Polar Capital European ex UK Income Fund, draws on his experience to discuss the ever-changing yet cyclical nature of the ‘investment race’. Exploring trending stocks, mean reversion and growth vs. value styles, he considers how a careful balance of risk and caution can help managers mitigate opportunity loss. Ultimately, Nick believes that managers must run their own race, seeking opportunities that align with their process and goes on to explain the Fund’s investment philosophy, the team’s contrarian approach and their view that European dividends continue to be misunderstood.

Building a defensive dividend portfolio

The Polar Capital European ex UK Income team look to invest in stocks with a return on equity of at least 10% through the cycle, so portfolio companies can reinvest double-digit returns. They also look for dividend yield plus earnings growth of 10% over the medium term. This leads them to favour sectors such as non-life insurers, pharmaceuticals and telecoms, where they can find stable businesses at compelling valuations, without compromising on quality.

Nick Davis, Fund Manager

Past performance is not indicative or a guarantee of future results. Source: 1. Polar Capital, Bloomberg, 30 September 2024. Performance for the GBP Class I Acc. The class launched on 30 June 2015. Performance is shown in GBP. 2. Polar Capital, Bloomberg, as 30 September 2024. Yield for the GBP Class I Dist. The class launched on 30 June 2015. Yield is shown in GBP. FE Crown Fund Ratings do not constitute investment advice offered by FE and should not be used as the sole basis for making any investment decision. © 2024 FE. All rights reserved. ©2024 Morningstar, Inc. All Rights Reserved. Rating representative of the I GBP Acc Share Class, as at 02/11/2023. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For more detailed information about the Morningstar’s Medalist rating, including its methodology, please go to: https://shareholders. morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.For disclosure and detailed information about this fund please request the full Morningstar Managed Investment Report from investorrelations@polarcapitalfunds.com.

Fund Highlights

Conviction portfolio 25-50 positions, well-run companies that have fallen out of favour for short-term reasons

In contrast to the many narratives in the market today, we think where you want to sit is between deep value and the most expensive stocks, our natural position in markets. We believe we are ideally positioned in the more defensive parts of the market, which should enable us to protect and grow capital over the medium term.

†

30.5%

43.0%

5 years

The Polar Capital European ex UK Income Fund focuses on defensive, well-valued companies with the ability to compound dividends and earnings steadily over the medium term – an approach that is increasingly important against a highly volatile, uncertain macro backdrop. Launched over nine years ago, the Polar Capital European ex UK Income Fund combines strong valuation discipline and risk management to find unloved, undervalued large-cap companies with the potential to defend and grow assets. Morningstar, who have awarded the Fund a Silver rating, note that it “offers investors a unique blend of value, quality, and income…thoughtful portfolio construction and a high degree of competition for capital ensures only the best ideas are held. Practically, the process has demonstrated its ability to protect and grow capital in varied environments, earning it an Above Average Process Pillar."

Compelling value Stocks with a return on equity of at least 10% throughout the cycle

Building an impressive track record Annualised return of 7.7% since launch1

Navigating uncertainty Combining strong valuation discipline and risk management

A defensive, dividend strategy Historic yield of 4.1%, built on the compounding power of dividend yield and growth2

Analyst-Driven 100% Data Coverage 100%

View fact sheet

Performance indicators

Sharpe ratio

0.4

Sortino ratio

0.5

Alpha

0.4%

Information ratio (net of fees)

-0.1

Source: Polar Capital and Bloomberg, EUR I Acc Share Class, 30 June 2015 to 30 September 2024. 3. Lipper, as at 30 September 2024. Figures quoted are representative of the EUR I Acc Share Class and are calculated since inception (30 June 2015). Lipper sector: Equity Europe Income. Benchmark: MSCI Daily Net Total Return Europe Ex UK Index (EUR). Past performance is not indicative or a guarantee of future results.

Nick Davis, CFA Fund Manager

Daniel joined Polar Capital in June 2013. He works as a Deputy Fund Manager on the European Income team. His primary responsibilities are stock analysis and supporting the Lead Fund Manager.

Daniel Tse

BSc (Joint Hons) in Computer Science and Management, University of Nottingham MSc in Accounting and Finance, London School of Economics and Political Science

Academic qualifications

11 years

Industry experience

Nick joined Polar Capital in September 2014 to set up the European Income team. Prior to this, he was with Threadneedle where he managed the Threadneedle European Fund and Pan European Equity Dividend Fund, both of which were top quartile performers since inception. Nick was also deputy fund manager of the Threadneedle European Select Fund. Previously, he was a sell-side analyst at Sanford Bernstein and a chartered accountant with Deloitte.

Nick Davis, CFA

BA (Hons) in Economics with French, University of Durham

Academic qualifications

Member of the Institute of Chartered Accountants in England and Wales. Investment Management Certificate (IMC) and CFA charterholder

Professional qualifications

17 years

Industry experience

YTD

4.5%

6.4%

+10.56%

Universe quartile3

Professional qualifications

Currently studying for the Chartered Alternative Investment Analyst (CAIA), Passed CFA Level III

Our experience and specialisation working in the London insurance market would prove a solid foundation to manage a Fund that invested exclusively within the insurance industry focusing predominantly on non-life property and casualty.

Everything is impermanent in investing

Raniyah Qureshi Analyst

Daniel Tse Fund Manager

Raniyah joined Polar Capital in May 2018. She works as an analyst with the European Income team.

Raniyah Qureshi

BA Hons in English (First Class) from Trinity College, University of Cambridge

Academic qualifications

Professional qualifications

6 years

Passed CFA level I

Industry experience

Relative

-1.9%

-6.6%

18.8%

8.8%

-12.5%

-14.6%

98.7%

113.3%

Since Inception

Morningstar report

Past performance is not indicative or a guarantee of future returns. Source: Polar Capital and Bloomberg, 30 September 2024.

Fund Highlights