Grid-connected battery energy storage systems (BESS) should remain one of the highest growth areas in clean power generation and distribution for many years to come, offering compelling investment opportunities.

BESS act as a bridge between intermittent energy production and consumption, storing electricity during off-peak periods, thereby helping to maintain grid reliability. They can be installed standalone, co-located with renewables or residential and commercial properties. They offer grid flexibility, can be operated when the grid is not available and do not need extensive connections as they either sit alongside existing generation capacity or next to consumers, whether industrial or domestic. BESS have become essential to buffer electricity at sites of high load points, such as data centres and electric vehicle (EV) charging stations.

BESS reduce the curtailment of renewables, allowing deferrals in grid investments and optimising self-consumption. They allow energy arbitrage by storing excess energy generated during peak solar or wind times when prices are low, and releasing it during peak demand when prices are high. In EV charging stations, onsite batteries can increase the maximum charging power. In data centres, BESS ensure a stable power supply by regulating voltage fluctuations and filtering electrical noise. They also provide fast-deployment backup power, thereby decreasing the need for diesel generators. To understand the potential benefits of BESS to consumers and the grid operator, please have a look at the below case study ‘California: Smoothing the duck curve’.

Driving down the costs

With significant technical and cost breakthroughs in recent years, lithium-ion batteries have become the most widely deployed storage solution for short-duration storage (of typically 2-6 hours), having overtaken electricity storage through pumped hydro. Improvements in battery chemistry and manufacturing processes have allowed the production of batteries with higher energy density, better round-trip efficiency and increased cycle life at lower costs. Other early-stage technologies like flow batteries with different chemistry and gravitational energy storage for long-duration storage are in the development and piloting stage, and are expected to complement the current offering.

Battery cell price declines are essential to boost project economics and demand. The average cost of a four-hour turnkey energy storage system decreased 23% in 2023 compared to 20221. Costs are expected to further decline by 7% per year until 20301, allowing the addressable markets to expand even further.

Big Tech’s energy needs

As well as the overall, industry-level dynamics in BESS, there is also a distinct corporate side to the increasing demand for storage, in particular as the Big Tech companies aim to reconcile the huge electricity demands of their AI data centres with their clean energy commitments. The four biggest technology companies (Microsoft, Google, Amazon and Meta) account for close to a 40%2 share of global corporate renewables PPA (Power Purchase Agreement) contracts in 2024 so far. Their 100% renewable energy goals largely disregard the mismatches between the time of generation and time of consumption. However, Microsoft and Google have stated goals to move to “100% matching with carbon free energy” and will require battery storage to meet these goals3. Currently, the total electricity demand from these four companies is c100TWh3, close to the level of demand for the Netherlands. To shift just 10% of that total demand will require over 30GWh4 per annum of storage, which is more than the total BESS deployment of 22GWh1 in the US in 2023.

In the wider market, policy mandates are also driving the adoption of BESS. For example, in China, which is the world's largest energy storage system market, most provinces currently require renewables to have 10-20% of capacity integrated with energy storage systems that have two to four hours of storage duration. South Korea is targeting an extra 25GW storage by 20361. In the US, 12 states have approved energy storage targets totalling more than 20GW by 2030-351.

Accelerating BESS deployment

From a very low base, global annual BESS deployments have increased 11x over the past five years, adding 96 GWh last year compared to 7.5GWh in 20181. The strongest growth over the period has been seen in China, Texas and California. China dominates and accounted for 55% of the total global BESS market in 20231. We expect global annual BESS deployment to increase 5.8x with a 2024-30 CAGR of 34%, from 173 GWh in 2024 to 1000 GWh4, representing an investment value of $160bnin 2030, with the attachment rates at 32% of total newly installed renewable (solar and wind) capacity in 2030 from 8% in 20234.

BESS Installations

Source: Polar Capital estimates as of 2024

Compelling investment opportunity

BESS has become a strong growth area within clean energy, constituting an essential building block for the seamless integration of intermittent renewable power into the grid and offering excellent suitability to buffer electricity for data centres and EV charging stations.

While the BESS market is still very nascent, the growth potential is enormous. The Polar Capital Smart Energy Fund has exposure to leading companies addressing the battery storage value chain, including BESS integrators, suppliers of battery and management systems and lithium chemical producers.

Case study - California: Smoothing out the duck curve

In California, solar generation already accounts for about 30%5 of the total annual power supply. The net demand seen by the grid operator, the so-called ‘system load’ as defined by the total electricity consumption minus solar-generated electricity, dips around midday as solar generates most of the power. It soars again in the late afternoon as the sun goes down and residents come back home, driving up electricity consumption (through air-conditioning, cooking, TV etc). This creates a so-called ‘duck curve’, which is a major issue for the grid operator as it increases the need for a massive ramp-up of electricity capacity in the evening, mostly through expensive gas turbines.

BESS are very well suited to smooth out the duck curve. Utilities and consumers can charge grid-connected batteries at midday when solar power is abundant and cheap, and release the stored electricity in the evening. Consumers can also sell their surplus electricity to the grid in the evening, generating revenue through energy trading. Solar-plus-storage has been proven to almost eliminate the duck curve.

California’s duck curve4

Duck Curve

Source: Reuters, May 2024.

The Net Energy Metering 3.0 mechanism that came into effect in April 2023 has accelerated the deployment of BESS with solar systems to maximise utility bill savings. It is estimated that up to 90%6 of new residential solar photovoltaic installations are paired with battery storage, compared with just over 20%7 in October 2023. On 30 April 2024, for two hours in the evening peak battery storage output was the largest source of power supply, supplying more than one-fifth of California’s electricity – more than gas, hydro, nuclear and other renewables8.

The total battery storage capacity in California has increased significantly since 2018 from 500MW to more than 10,000MW8, sufficient to powering more than 10 million homes for up to four hours. As renewables’ penetration increases, negative power prices are becoming more prevalent, creating more opportunities for BESS to take advantage of price arbitrage and therefore driving the growth of BESS deployment.


1. BNEF, 1H2024 Energy Storage Market Outlook

2. BNEF, Corporate PPA, Deal Tracker September 2024

3. Google targets 24/7 carbon-free energy on every grid where it operates by 2030. Microsoft targets 100% of its electricity consumption will be matched by zero carbon energy purchases 100% of the time by 2030. Microsoft’s environmental sustainability report 2024, Google’s Environmental report 2024. Meta’s Sustainability report 2024, Amazon’s sustainability report 2023

4. Polar Capital’s estimates

5. S. EIA, Electricity Data Browser, Net generation for all sectors, California, All fuels, All solar, All utility-scale solar, Small-scale solar photovoltaic, Annual, 2001-23.

6. https://www.solarpowerworldonline.com/2024/08/california-solar-installers-get-well-acquainted-with-batteries-in-nem-3-0-era/

7. EIA, California residents are increasingly pairing battery storage with solar installations, 18 July 2024, https://www.eia.gov/todayinenergy/detail.php?id=62524

8.California Energy Storage System Survey

Risks:

  • Capital is at risk and there is no guarantee the Fund will achieve its objective. Investors should make sure their attitude towards risk is aligned with the risk profile of the Fund before investing.
  • Past performance is not a reliable guide to future performance. The value of investments may go down as well as up and you might get back less than you originally invested as there is no guarantee in place.
  • The value of a fund’s assets may be affected by uncertainties such as international political developments, market sentiment, economic conditions, changes in government policies, restrictions on foreign investment and currency repatriation, currency fluctuations and other developments in the laws and regulations of countries in which investment may be made. Please see the Fund’s Prospectus for details of all risks.
  • The Fund invests in the shares of companies and share prices can rise or fall due to several factors affecting global stock markets.
  • The Fund uses derivatives which carry the risk of reduced liquidity, substantial loss, and increased volatility in adverse market conditions, such as failure amongst market participants.
  • The Fund invests in assets denominated in currencies other than the Fund's base currency. Changes in exchange rates may have a negative impact on the Fund's investments. If the share class currency is different from the currency of the country in which you reside, exchange rate fluctuations may affect your returns when converted into your local currency.
  • The Fund invests in emerging markets where there is a greater risk of volatility due to political and economic uncertainties, restrictions on foreign investment, currency repatriation and currency fluctuations. Developing markets are typically less liquid which may result in large price movements to the Fund.
  • The Fund invests in a relatively concentrated number of companies and industries based in one sector. This focused strategy can produce high gains but can also lead to significant losses. The Fund may be less diversified than other investment funds.


Important Information
: This is a marketing communication and does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments. Any opinions expressed may change. This document does not contain information material to the investment objectives or financial needs of the recipient. This document is not advice on legal, taxation or investment matters. Tax treatment depends on personal circumstances. Investors must rely on their own examination of the fund or seek advice. Investment may be restricted in other countries and as such, any individual who receives this document must make themselves aware of their respective jurisdiction and observe any restrictions.

A decision may be taken at any time to terminate the marketing of the Fund in any EEA Member State in which it is currently marketed. Shareholders in the affected EEA Member State will be given notification of any decision and provided the opportunity to redeem their interests in the Fund, free of any charges or deductions, for at least 30 working days from the date of the notification.

Investment in the Fund is an investment in the shares of the Fund and not in the underlying investments of the Fund. Further information about fund characteristics and any associated risks can be found in the Fund’s Key Investor Document or Key Investor Information Document (“KID” or “KIID”), the Prospectus (and relevant Fund Supplement), the Articles of Association and the Annual and Semi-Annual Reports. Please refer to these documents before making any final investment decisions.  Investment in the Fund concerns shares of the Fund and not in the underlying investments of the Fund. These documents are available free of charge at Polar Capital Funds plc, Georges Court, 54-62 Townsend Street, Dublin 2, Ireland, via email by contacting Investor-Relations@polarcapitalfunds.com or at www.polarcapital.co.uk. The KID is available in the languages of all EEA member states in which the Fund is registered for sale; the Prospectus, Annual and Semi-Annual Reports and KIID are available in English.

The Fund promotes environmental and/or social characteristics and is classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation (“SFDR”). For more information, please see the Fund Supplement and Prospectus or by visiting www.polarcapital.co.uk.

ESG and sustainability characteristics are further detailed on the investment manager’s websites. - https://www.polarcapital.co.uk/ESG-and-Sustainability/Responsible-Investing/.

A summary of investor rights associated with investment in the Fund is available online at the above website, or by contacting the above email address. A link to the document can be found here.

This document is provided and approved by both Polar Capital LLP and Polar Capital (Europe) SAS.

Polar Capital LLP is authorised and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom, and the Securities and Exchange Commission (“SEC”) in the United States. Polar Capital LLP’s registered address is 16 Palace Street, London, SW1E 5JD, United Kingdom.

Polar Capital (Europe) SAS is authorised and regulated by the Autorité des marchés financiers (AMF) in France. Polar Capital (Europe) SAS’s registered address is 18 Rue de Londres, Paris 75009, France.

Polar Capital LLP is a registered Investment Advisor with the SEC. Polar Capital LLP is the investment manager and promoter of Polar Capital Funds plc – an open-ended investment company with variable capital and with segregated liability between its sub-funds – incorporated in Ireland, authorised by the Central Bank of Ireland and recognised by the FCA. Bridge Fund Management Limited acts as management company and is regulated by the Central Bank of Ireland. Registered Address: Percy Exchange, 8/34 Percy Place, Dublin 4, Ireland.

Polar Capital (Switzerland) AG is the investment manager of the Fund and is authorised and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”). Registered address Klausstrasse 4, 8008, Zurich, Switzerland. Bridge Fund Management Limited acts as management company and is regulated by the Central Bank of Ireland. Registered Address: Percy Exchange, 8/34 Percy Place, Dublin 4, Ireland.

Benchmark: The Fund is actively managed and uses the MSCI ACWI Net TR Index. The benchmark has been chosen as it is generally considered to be representative of the investment universe in which the Fund invests. The performance of the Fund is likely to differ from the performance of the benchmark as the holdings, weightings and asset allocation will be different. Investors should carefully consider these differences when making comparisons. Further information about the benchmark can be found https://www.msci. com/acwi. The benchmark is provided by an administrator on the European Securities and Markets Authority (ESMA) register of benchmarks which includes details of all authorised, registered, recognised and endorsed EU and third country benchmark administrators together with their national competent authorities.

Third-party Data: Some information contained herein has been obtained from third party sources and has not been independently verified by Polar Capital. Neither Polar Capital nor any other party involved in or related to compiling, computing or creating the data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any data contained herein.

Country Specific Disclaimers:  Please be aware that not every share class of every fund is available in all jurisdictions. When considering an investment into the Fund, you should make yourself aware of the relevant financial, legal and tax implications. Neither Polar Capital LLP, Polar Capital Funds PLC or Polar Capital (Switzerland) AG shall be held liable for, and accept no liability for, the use or misuse of this document.

The Netherlands: This document is for professional client use only in the Netherlands and it is intended that the Fund will only be marketed to professional clients in the Netherlands. Polar Capital Funds plc is authorized to offer shares in the Fund to investors in the Netherlands on a cross border basis and is registered as such in the register kept by the Dutch Authority for the Financial Markets (“AFM”) www.afm.nl.

Spain: The Fund is registered in Spain with the Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 771.

Switzerland: The principal Fund documents (the Prospectus, Fund Supplement, KIDs, Memorandum and Articles of Association, Annual Report and Semi-Annual Report) of the Fund may be obtained free of charge from the Swiss Representative. The Fund is domiciled in Ireland. The Swiss representative FundRock Switzerland SA, Route de Cité-Ouest 2, 1196 Gland, Switzerland. The paying agent in Switzerland is Banque Cantonale de Genève, 17 quai de I’Ile, 1204 Geneva, Switzerland.

Austria / Belgium / Finland / France / Germany /Gibraltar / Ireland / Italy / Liechtenstein / Luxembourg / Netherlands / Norway / Spain / Sweden / Switzerlandand theUnited Kingdom: The Fund is registered for sale to investors in these countries. Investors should make themselves aware of the relevant financial, legal and tax implications if they choose to invest. Please be aware that not every share class of the Fund is available in all jurisdictions.

Singapore: This document has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this document and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of Shares may not be circulated or distributed, nor may Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor Pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. The Prospectus and Information Memorandum are available to download at www.polarcapital.co.uk alternatively; you can obtain the latest copy from the Polar Capital Investor Relations team.

Hong Kong: The Fund is a collective investment scheme but is not authorised under Section 104 of the Securities and Futures Ordinance of Hong Kong by the Securities and Futures Commission of Hong Kong. Accordingly, the distribution of this document, and the placement of interests in Hong Kong, is restricted. This document may only be distributed, circulated or issued to persons who are professional investors under the Securities and Futures Ordinance and any rules made under that Ordinance or as otherwise permitted by the Securities and Futures Ordinance.

Australia: The Fund is not registered and has not authorised nor taken any action to prepare or lodge with the Australian Securities & Investments Commission an Australian law compliant prospectus or product disclosure statement. This document may not be issued or distributed in Australia and the shares/interests in the Fund may not be offered, issued, sold or distributed in Australia by the investment manager, or any other person, under this document other than by way of or pursuant to an offer or invitation that does not need disclosure to investors under Part 6D.2 or Part 7.9 of the Corporations Act, whether by reason of the investor being a 'wholesale client' (as defined in section 761G of the Corporations Act) or otherwise. The investment manager holds Australian financial services licence no. 528982 covering certain services to wholesale clients.

None

Grid-connected battery energy storage systems (BESS) should remain one of the highest growth areas in clean power generation and distribution for many years to come, offering compelling investment opportunities.

BESS act as a bridge between intermittent energy production and consumption, storing electricity during off-peak periods, thereby helping to maintain grid reliability. They can be installed standalone, co-located with renewables or residential and commercial properties. They offer grid flexibility, can be operated when the grid is not available and do not need extensive connections as they either sit alongside existing generation capacity or next to consumers, whether industrial or domestic. BESS have become essential to buffer electricity at sites of high load points, such as data centres and electric vehicle (EV) charging stations.

BESS reduce the curtailment of renewables, allowing deferrals in grid investments and optimising self-consumption. They allow energy arbitrage by storing excess energy generated during peak solar or wind times when prices are low, and releasing it during peak demand when prices are high. In EV charging stations, onsite batteries can increase the maximum charging power. In data centres, BESS ensure a stable power supply by regulating voltage fluctuations and filtering electrical noise. They also provide fast-deployment backup power, thereby decreasing the need for diesel generators. To understand the potential benefits of BESS to consumers and the grid operator, please have a look at the below case study ‘California: Smoothing the duck curve’.

Driving down the costs

With significant technical and cost breakthroughs in recent years, lithium-ion batteries have become the most widely deployed storage solution for short-duration storage (of typically 2-6 hours), having overtaken electricity storage through pumped hydro. Improvements in battery chemistry and manufacturing processes have allowed the production of batteries with higher energy density, better round-trip efficiency and increased cycle life at lower costs. Other early-stage technologies like flow batteries with different chemistry and gravitational energy storage for long-duration storage are in the development and piloting stage, and are expected to complement the current offering.

Battery cell price declines are essential to boost project economics and demand. The average cost of a four-hour turnkey energy storage system decreased 23% in 2023 compared to 20221. Costs are expected to further decline by 7% per year until 20301, allowing the addressable markets to expand even further.

Big Tech’s energy needs

As well as the overall, industry-level dynamics in BESS, there is also a distinct corporate side to the increasing demand for storage, in particular as the Big Tech companies aim to reconcile the huge electricity demands of their AI data centres with their clean energy commitments. The four biggest technology companies (Microsoft, Google, Amazon and Meta) account for close to a 40%2 share of global corporate renewables PPA (Power Purchase Agreement) contracts in 2024 so far. Their 100% renewable energy goals largely disregard the mismatches between the time of generation and time of consumption. However, Microsoft and Google have stated goals to move to “100% matching with carbon free energy” and will require battery storage to meet these goals3. Currently, the total electricity demand from these four companies is c100TWh3, close to the level of demand for the Netherlands. To shift just 10% of that total demand will require over 30GWh4 per annum of storage, which is more than the total BESS deployment of 22GWh1 in the US in 2023.

In the wider market, policy mandates are also driving the adoption of BESS. For example, in China, which is the world's largest energy storage system market, most provinces currently require renewables to have 10-20% of capacity integrated with energy storage systems that have two to four hours of storage duration. South Korea is targeting an extra 25GW storage by 20361. In the US, 12 states have approved energy storage targets totalling more than 20GW by 2030-351.

Accelerating BESS deployment

From a very low base, global annual BESS deployments have increased 11x over the past five years, adding 96 GWh last year compared to 7.5GWh in 20181. The strongest growth over the period has been seen in China, Texas and California. China dominates and accounted for 55% of the total global BESS market in 20231. We expect global annual BESS deployment to increase 5.8x with a 2024-30 CAGR of 34%, from 173 GWh in 2024 to 1000 GWh4, representing an investment value of $160bnin 2030, with the attachment rates at 32% of total newly installed renewable (solar and wind) capacity in 2030 from 8% in 20234.

BESS Installations

Source: Polar Capital estimates as of 2024

Compelling investment opportunity

BESS has become a strong growth area within clean energy, constituting an essential building block for the seamless integration of intermittent renewable power into the grid and offering excellent suitability to buffer electricity for data centres and EV charging stations.

While the BESS market is still very nascent, the growth potential is enormous. The Polar Capital Smart Energy Fund has exposure to leading companies addressing the battery storage value chain, including BESS integrators, suppliers of battery and management systems and lithium chemical producers.

Case study - California: Smoothing out the duck curve

In California, solar generation already accounts for about 30%5 of the total annual power supply. The net demand seen by the grid operator, the so-called ‘system load’ as defined by the total electricity consumption minus solar-generated electricity, dips around midday as solar generates most of the power. It soars again in the late afternoon as the sun goes down and residents come back home, driving up electricity consumption (through air-conditioning, cooking, TV etc). This creates a so-called ‘duck curve’, which is a major issue for the grid operator as it increases the need for a massive ramp-up of electricity capacity in the evening, mostly through expensive gas turbines.

BESS are very well suited to smooth out the duck curve. Utilities and consumers can charge grid-connected batteries at midday when solar power is abundant and cheap, and release the stored electricity in the evening. Consumers can also sell their surplus electricity to the grid in the evening, generating revenue through energy trading. Solar-plus-storage has been proven to almost eliminate the duck curve.

California’s duck curve4

Duck Curve

Source: Reuters, May 2024.

The Net Energy Metering 3.0 mechanism that came into effect in April 2023 has accelerated the deployment of BESS with solar systems to maximise utility bill savings. It is estimated that up to 90%6 of new residential solar photovoltaic installations are paired with battery storage, compared with just over 20%7 in October 2023. On 30 April 2024, for two hours in the evening peak battery storage output was the largest source of power supply, supplying more than one-fifth of California’s electricity – more than gas, hydro, nuclear and other renewables8.

The total battery storage capacity in California has increased significantly since 2018 from 500MW to more than 10,000MW8, sufficient to powering more than 10 million homes for up to four hours. As renewables’ penetration increases, negative power prices are becoming more prevalent, creating more opportunities for BESS to take advantage of price arbitrage and therefore driving the growth of BESS deployment.


1. BNEF, 1H2024 Energy Storage Market Outlook

2. BNEF, Corporate PPA, Deal Tracker September 2024

3. Google targets 24/7 carbon-free energy on every grid where it operates by 2030. Microsoft targets 100% of its electricity consumption will be matched by zero carbon energy purchases 100% of the time by 2030. Microsoft’s environmental sustainability report 2024, Google’s Environmental report 2024. Meta’s Sustainability report 2024, Amazon’s sustainability report 2023

4. Polar Capital’s estimates

5. S. EIA, Electricity Data Browser, Net generation for all sectors, California, All fuels, All solar, All utility-scale solar, Small-scale solar photovoltaic, Annual, 2001-23.

6. https://www.solarpowerworldonline.com/2024/08/california-solar-installers-get-well-acquainted-with-batteries-in-nem-3-0-era/

7. EIA, California residents are increasingly pairing battery storage with solar installations, 18 July 2024, https://www.eia.gov/todayinenergy/detail.php?id=62524

8.California Energy Storage System Survey

Related Fund

Risks:

  • Capital is at risk and there is no guarantee the Fund will achieve its objective. Investors should make sure their attitude towards risk is aligned with the risk profile of the Fund before investing.
  • Past performance is not a reliable guide to future performance. The value of investments may go down as well as up and you might get back less than you originally invested as there is no guarantee in place.
  • The value of a fund’s assets may be affected by uncertainties such as international political developments, market sentiment, economic conditions, changes in government policies, restrictions on foreign investment and currency repatriation, currency fluctuations and other developments in the laws and regulations of countries in which investment may be made. Please see the Fund’s Prospectus for details of all risks.
  • The Fund invests in the shares of companies and share prices can rise or fall due to several factors affecting global stock markets.
  • The Fund uses derivatives which carry the risk of reduced liquidity, substantial loss, and increased volatility in adverse market conditions, such as failure amongst market participants.
  • The Fund invests in assets denominated in currencies other than the Fund's base currency. Changes in exchange rates may have a negative impact on the Fund's investments. If the share class currency is different from the currency of the country in which you reside, exchange rate fluctuations may affect your returns when converted into your local currency.
  • The Fund invests in emerging markets where there is a greater risk of volatility due to political and economic uncertainties, restrictions on foreign investment, currency repatriation and currency fluctuations. Developing markets are typically less liquid which may result in large price movements to the Fund.
  • The Fund invests in a relatively concentrated number of companies and industries based in one sector. This focused strategy can produce high gains but can also lead to significant losses. The Fund may be less diversified than other investment funds.


Important Information
: This is a marketing communication and does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments. Any opinions expressed may change. This document does not contain information material to the investment objectives or financial needs of the recipient. This document is not advice on legal, taxation or investment matters. Tax treatment depends on personal circumstances. Investors must rely on their own examination of the fund or seek advice. Investment may be restricted in other countries and as such, any individual who receives this document must make themselves aware of their respective jurisdiction and observe any restrictions.

A decision may be taken at any time to terminate the marketing of the Fund in any EEA Member State in which it is currently marketed. Shareholders in the affected EEA Member State will be given notification of any decision and provided the opportunity to redeem their interests in the Fund, free of any charges or deductions, for at least 30 working days from the date of the notification.

Investment in the Fund is an investment in the shares of the Fund and not in the underlying investments of the Fund. Further information about fund characteristics and any associated risks can be found in the Fund’s Key Investor Document or Key Investor Information Document (“KID” or “KIID”), the Prospectus (and relevant Fund Supplement), the Articles of Association and the Annual and Semi-Annual Reports. Please refer to these documents before making any final investment decisions.  Investment in the Fund concerns shares of the Fund and not in the underlying investments of the Fund. These documents are available free of charge at Polar Capital Funds plc, Georges Court, 54-62 Townsend Street, Dublin 2, Ireland, via email by contacting Investor-Relations@polarcapitalfunds.com or at www.polarcapital.co.uk. The KID is available in the languages of all EEA member states in which the Fund is registered for sale; the Prospectus, Annual and Semi-Annual Reports and KIID are available in English.

The Fund promotes environmental and/or social characteristics and is classified as an Article 9 fund under the EU’s Sustainable Finance Disclosure Regulation (“SFDR”). For more information, please see the Fund Supplement and Prospectus or by visiting www.polarcapital.co.uk.

ESG and sustainability characteristics are further detailed on the investment manager’s websites. - https://www.polarcapital.co.uk/ESG-and-Sustainability/Responsible-Investing/.

A summary of investor rights associated with investment in the Fund is available online at the above website, or by contacting the above email address. A link to the document can be found here.

This document is provided and approved by both Polar Capital LLP and Polar Capital (Europe) SAS.

Polar Capital LLP is authorised and regulated by the Financial Conduct Authority (“FCA”) in the United Kingdom, and the Securities and Exchange Commission (“SEC”) in the United States. Polar Capital LLP’s registered address is 16 Palace Street, London, SW1E 5JD, United Kingdom.

Polar Capital (Europe) SAS is authorised and regulated by the Autorité des marchés financiers (AMF) in France. Polar Capital (Europe) SAS’s registered address is 18 Rue de Londres, Paris 75009, France.

Polar Capital LLP is a registered Investment Advisor with the SEC. Polar Capital LLP is the investment manager and promoter of Polar Capital Funds plc – an open-ended investment company with variable capital and with segregated liability between its sub-funds – incorporated in Ireland, authorised by the Central Bank of Ireland and recognised by the FCA. Bridge Fund Management Limited acts as management company and is regulated by the Central Bank of Ireland. Registered Address: Percy Exchange, 8/34 Percy Place, Dublin 4, Ireland.

Polar Capital (Switzerland) AG is the investment manager of the Fund and is authorised and regulated by the Swiss Financial Market Supervisory Authority (“FINMA”). Registered address Klausstrasse 4, 8008, Zurich, Switzerland. Bridge Fund Management Limited acts as management company and is regulated by the Central Bank of Ireland. Registered Address: Percy Exchange, 8/34 Percy Place, Dublin 4, Ireland.

Benchmark: The Fund is actively managed and uses the MSCI ACWI Net TR Index. The benchmark has been chosen as it is generally considered to be representative of the investment universe in which the Fund invests. The performance of the Fund is likely to differ from the performance of the benchmark as the holdings, weightings and asset allocation will be different. Investors should carefully consider these differences when making comparisons. Further information about the benchmark can be found https://www.msci. com/acwi. The benchmark is provided by an administrator on the European Securities and Markets Authority (ESMA) register of benchmarks which includes details of all authorised, registered, recognised and endorsed EU and third country benchmark administrators together with their national competent authorities.

Third-party Data: Some information contained herein has been obtained from third party sources and has not been independently verified by Polar Capital. Neither Polar Capital nor any other party involved in or related to compiling, computing or creating the data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any data contained herein.

Country Specific Disclaimers:  Please be aware that not every share class of every fund is available in all jurisdictions. When considering an investment into the Fund, you should make yourself aware of the relevant financial, legal and tax implications. Neither Polar Capital LLP, Polar Capital Funds PLC or Polar Capital (Switzerland) AG shall be held liable for, and accept no liability for, the use or misuse of this document.

The Netherlands: This document is for professional client use only in the Netherlands and it is intended that the Fund will only be marketed to professional clients in the Netherlands. Polar Capital Funds plc is authorized to offer shares in the Fund to investors in the Netherlands on a cross border basis and is registered as such in the register kept by the Dutch Authority for the Financial Markets (“AFM”) www.afm.nl.

Spain: The Fund is registered in Spain with the Comisión Nacional del Mercado de Valores (“CNMV”) under registration number 771.

Switzerland: The principal Fund documents (the Prospectus, Fund Supplement, KIDs, Memorandum and Articles of Association, Annual Report and Semi-Annual Report) of the Fund may be obtained free of charge from the Swiss Representative. The Fund is domiciled in Ireland. The Swiss representative FundRock Switzerland SA, Route de Cité-Ouest 2, 1196 Gland, Switzerland. The paying agent in Switzerland is Banque Cantonale de Genève, 17 quai de I’Ile, 1204 Geneva, Switzerland.

Austria / Belgium / Finland / France / Germany /Gibraltar / Ireland / Italy / Liechtenstein / Luxembourg / Netherlands / Norway / Spain / Sweden / Switzerlandand theUnited Kingdom: The Fund is registered for sale to investors in these countries. Investors should make themselves aware of the relevant financial, legal and tax implications if they choose to invest. Please be aware that not every share class of the Fund is available in all jurisdictions.

Singapore: This document has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this document and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of Shares may not be circulated or distributed, nor may Shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor Pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. The Prospectus and Information Memorandum are available to download at www.polarcapital.co.uk alternatively; you can obtain the latest copy from the Polar Capital Investor Relations team.

Hong Kong: The Fund is a collective investment scheme but is not authorised under Section 104 of the Securities and Futures Ordinance of Hong Kong by the Securities and Futures Commission of Hong Kong. Accordingly, the distribution of this document, and the placement of interests in Hong Kong, is restricted. This document may only be distributed, circulated or issued to persons who are professional investors under the Securities and Futures Ordinance and any rules made under that Ordinance or as otherwise permitted by the Securities and Futures Ordinance.

Australia: The Fund is not registered and has not authorised nor taken any action to prepare or lodge with the Australian Securities & Investments Commission an Australian law compliant prospectus or product disclosure statement. This document may not be issued or distributed in Australia and the shares/interests in the Fund may not be offered, issued, sold or distributed in Australia by the investment manager, or any other person, under this document other than by way of or pursuant to an offer or invitation that does not need disclosure to investors under Part 6D.2 or Part 7.9 of the Corporations Act, whether by reason of the investor being a 'wholesale client' (as defined in section 761G of the Corporations Act) or otherwise. The investment manager holds Australian financial services licence no. 528982 covering certain services to wholesale clients.