Fund Overview

Investment Objective

To achieve longer term capital growth, without undue risk through diversified investment in equities of companies, or using derivatives to generate exposure to such equities, which are listed on a stock exchange in the European region or of companies that have their registered office, or carry out a predominant portion of their economic activity in the European region.

Investment Philosophy

The Fund seeks to maximise returns by purchasing shares (or financial instruments giving exposure to them) of companies perceived to be undervalued. Conversely, it seeks to generate returns by “shorting” companies perceived to be overvalued. This is achieved through the use of derivatives (financial instruments whose value is linked to the expected future price movements of the underlying assets).

Key Facts

Established long/short fund with around 60 positions
Aims to provide positive absolute returns, irrespective of the market environment
Invests in liquid, listed European equities
Maintains a low net exposure to equity markets and employs leverage judiciously
Low correlation to broader equity markets

Key Fund Literature

Fund Data Fact Sheet

28 Feb 2023

Annual Report & Audited Financial Statements

31 Dec 2021

Interim report & Unaudited Financial Statements

30 Jun 2022

Key Investor Information Documents (KIIDs)

Fund Manager & Analysts

Leonard Charlton

Fund Manager

Glen Pratt

Consultant

Hemant Agrawal

Analyst

Matthew Coupland

Analyst

Leonard Charlton

Leonard joined Dalton Strategic Partnership, which was acquired by Polar Capital in 2021, in 2006 to launch the Melchior European Absolute Return Strategy. He started his career as an equity trader for Goldman Sachs in 1998 before moving to GLG in 2003, where he was co-manager of the GLG European Opportunity Fund.

Academic qualificationsBSc in Management Science, University of Manchester Institute of Science and Technology
Industry experience24 years

Glen Pratt

Glen is a consultant with the Melchior European Absolute Return team. He joined from Newton Investment Management where he was lead manager on the Newton Growth and Newton Income funds. Prior to this he spent nine years at Fidelity where he managed the Fidelity UK Aggressive Fund.

Academic qualificationsEconomics degree, University of Nottingham
Industry experience29 years

Hemant Agrawal

Hemant Agrawal joined Polar Capital in 2021 as an analyst on the European team. He started his investment career in 2004 as a European equity analyst with research firm CFRA before moving to the buy-side in 2010. He has subsequently gained experience at Barrington Partners, Fidelity Worldwide Investment and, most recently, Anavon Capital. Before his investing career, Hemant worked in business consulting with American Express as well as a stint as a credit analyst with Mashreq Bank.

Academic qualificationsMasters in Finance from London Business SchoolPGDM (MBA) from IIM, Lucknow
Industry experience17 years

Matthew Coupland

Matthew joined Polar Capital in October 2021 as an analyst on the European team. He began his career in equities at Credit Suisse in 2008 before going to business school in 2013. Thereafter he worked as a research analyst at Redburn before moving to the buy-side in 2018.

Academic qualificationsMEng in Engineering Science from the University of OxfordMBA (Distinction) from NYU Stern School of Business
Industry experience14 years

Countries in which this fund is available

Please click on each country to see share class availability

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.
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.
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 may enter into a derivative contract. The Fund’s use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as failure amongst market participants.
The use of derivatives will result in the Fund being leveraged (where market exposure and the potential for loss exceeds the amount the Fund has invested) and in these market conditions the effect of leverage will magnify losses. The Fund makes extensive use of derivatives.
If the currency of the share class is different from the local currency in the country in which you reside, the figures shown in this document may increase or decrease if converted into your local currency.

Important Information: This document is provided for the sole use of the intended recipient and is not a financial promotion. Melchior European Absolute Return Fund (the “Fund”) is a sub-fund of Melchior Selected Trust (MST) which is an investment company organised under the laws of the Grand Duchy of Luxembourg as a Société d'Investissement à Capital Variable (SICAV). It is governed by Part I of the 2010 Law and qualifies as a UCITS within the meaning of Article 1 (2) of the UCITS Directive. Polar Capital LLP is the investment manager of the Melchior Selected Trust. ONE fund management S.A. Registered Address: 4 rue Peternelchen, Cubus C3, L-2370 Howald, Luxembourg, acts as the management company and is regulated by the Commission de Surveillance du Secteur Financier (“CSSF”). This document has been prepared by Polar Capital for informational purposes only for the sole use of the intended recipient. It does not seek to make any recommendation to buy or sell any particular security (including shares in the Fund) or to adopt any specific investment strategy. This document does not contain information material to an investor’s decision to invest in the Fund. Shares in the Fund are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapital.co.uk. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.

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.

Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.

Country Specific Disclaimers It is the responsibility of any person/s in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Neither Polar Capital nor MST shall be liable for, and accept no liability for, the use or misuse of this document. If such a person considers an investment in Shares of the Fund, they should ensure that they have been properly advised about the suitability of an investment. Please be aware that not every sub-fund of MST or share class is available in all jurisdictions.

Performance (%)

Change

Cumulative Performance (%)

								Since Launch
	1m	3m	YTD	1yr	3yrs	5yrs	10yrs	Cumulative	Annualised
EUR Class I Acc	-1.37	-1.59	-0.52	-1.92	-3.85	2.10	-4.06	8.23	0.61

Source: Northern Trust Global Services SE (Luxembourg), monthly percentage growth, EUR and has been calculated to account for the deduction of fees. 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 EUR Class I Acc was launched on 02 February 2010. Investments in funds are subject to risk. Past performance is not a reliable indicator of future returns. The money invested in a fund can increase and decrease in value and past performance is not a reliable indicator that you will get back the full amount invested. The performance calculation is based on EUR. If the currency in which the past performance is displayed differs from the currency of the country in which you reside, then you should be aware that due to exchange rate fluctuations the performance shown may increase or decrease if converted into your local currency.

	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
JPY Class I Acc Hedged	-	-	-	-10.95	-2.90	3.29	4.72	-3.84	1.70	-1.08

12 months to	28.02.23	28.02.22	26.02.21	28.02.20	28.02.19
EUR Class I Acc	-1.92	2.55	-4.40	1.10	5.04

Countries in which this fund is available

Please click on each country to see share class availability

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.
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.
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 may enter into a derivative contract. The Fund’s use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as failure amongst market participants.
The use of derivatives will result in the Fund being leveraged (where market exposure and the potential for loss exceeds the amount the Fund has invested) and in these market conditions the effect of leverage will magnify losses. The Fund makes extensive use of derivatives.
If the currency of the share class is different from the local currency in the country in which you reside, the figures shown in this document may increase or decrease if converted into your local currency.

Important Information: This document is provided for the sole use of the intended recipient and is not a financial promotion. Melchior European Absolute Return Fund (the “Fund”) is a sub-fund of Melchior Selected Trust (MST) which is an investment company organised under the laws of the Grand Duchy of Luxembourg as a Société d'Investissement à Capital Variable (SICAV). It is governed by Part I of the 2010 Law and qualifies as a UCITS within the meaning of Article 1 (2) of the UCITS Directive. Polar Capital LLP is the investment manager of the Melchior Selected Trust. ONE fund management S.A. Registered Address: 4 rue Peternelchen, Cubus C3, L-2370 Howald, Luxembourg, acts as the management company and is regulated by the Commission de Surveillance du Secteur Financier (“CSSF”). This document has been prepared by Polar Capital for informational purposes only for the sole use of the intended recipient. It does not seek to make any recommendation to buy or sell any particular security (including shares in the Fund) or to adopt any specific investment strategy. This document does not contain information material to an investor’s decision to invest in the Fund. Shares in the Fund are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapital.co.uk. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.

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.

Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.

Performance: The performance shown has been calculated to account for the deduction of fees and expenses and includes the reinvestment of dividends and capital gain distributions. £ or GBP/US$/JPY/EUR/CHF = Currency abbreviations of: British Pound sterling/US Dollar/Japanese Yen/Euro/Swiss Franc, respectively.

Risk: Factors affecting fund performance may include changes in market conditions (including currency risk) and interest rates, as well as other economic, political, or financial developments. The Fund’s investment policy allows for it to enter into derivatives contracts. Leverage may be generated through the use of such financial instruments and investors must be aware that the use of derivatives may expose the Fund to greater risks, including, but not limited to, unanticipated market developments and risks of illiquidity, and is not suitable for all investors. Past performance is not a guide to or indicative of future results. Future returns are not guaranteed and a loss of principal may occur. Polar Capital may also receive a performance fee based on the appreciation in the NAV per share and accordingly the performance fee will increase with regard to unrealised appreciation, as well as realised gains. The performance fee may create an incentive for Polar Capital to make investments for MST which are riskier than would be the case in the absence of a fee based on the performance of MST.

Country Specific Disclaimers It is the responsibility of any person/s in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Neither Polar Capital nor MST shall be liable for, and accept no liability for, the use or misuse of this document. If such a person considers an investment in Shares of the Fund, they should ensure that they have been properly advised about the suitability of an investment. Please be aware that not every sub-fund of MST or share class is available in all jurisdictions.

Top 10 Positions (%)

Scout24 SE	4.1
Merck KGaA	3.7
AIXTRON SE	3.7
Vivendi SA	3.4
Nestle	2.6
ASML Holding NV	2.6
Robertet SA	2.6
RELX	2.6
FinecoBank Banca Fineco SpA	2.5
Diageo	2.4
Total

Market Capitalisation Exposure (%)

	Large (> EUR 5bn)	46.7
	Medium (EUR 1bn to 5bn)	51.8
	Small (< EUR 1bn)	1.5

Composition (%)

Long	65.6
Short	-69.0
Gross	134.6
Net	-3.4

Sector Exposure (%)Top Long & Short

	Long	Short	Net
Health Care	6.5	0.0	6.5
Financials	6.2	0.0	6.2
Industrials	15.2	-9.3	5.9
Consumer Staples	5.1	0.0	5.1
Consumer Discretionary	15.8	-11.6	4.2
Technology	12.3	-9.3	3.0
Basic Materials	2.6	0.0	2.6
Real Estate	2.0	0.0	2.0
Energy	0.0	-9.3	-9.3
Futures & Options	0.0	-29.4	-29.4

Geographic Exposure (%)Top Long & Short

	Long	Short	Net
United Kingdom	18.4	0.0	18.4
France	10.0	-4.0	6.0
Netherlands	5.9	0.0	5.9
Germany	11.6	-6.5	5.0
Ireland	2.9	0.0	2.9
Luxembourg	1.8	0.0	1.8
Austria	1.6	0.0	1.6
Spain	1.2	0.0	1.2
Portugal	1.0	0.0	1.0
Italy	5.2	-5.2	0.0
Other	6.2	-23.8	-17.6
European Futures	0.0	-29.4	-29.4

Note: Totals may not sum due to rounding.

It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities in this document. A list of all recommendations made within the immediately preceding 12 months is available upon request.

Countries in which this fund is available

Please click on each country to see share class availability

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.
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.
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 may enter into a derivative contract. The Fund’s use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as failure amongst market participants.
The use of derivatives will result in the Fund being leveraged (where market exposure and the potential for loss exceeds the amount the Fund has invested) and in these market conditions the effect of leverage will magnify losses. The Fund makes extensive use of derivatives.
If the currency of the share class is different from the local currency in the country in which you reside, the figures shown in this document may increase or decrease if converted into your local currency.

Important Information: This document is provided for the sole use of the intended recipient and is not a financial promotion. Melchior European Absolute Return Fund (the “Fund”) is a sub-fund of Melchior Selected Trust (MST) which is an investment company organised under the laws of the Grand Duchy of Luxembourg as a Société d'Investissement à Capital Variable (SICAV). It is governed by Part I of the 2010 Law and qualifies as a UCITS within the meaning of Article 1 (2) of the UCITS Directive. Polar Capital LLP is the investment manager of the Melchior Selected Trust. ONE fund management S.A. Registered Address: 4 rue Peternelchen, Cubus C3, L-2370 Howald, Luxembourg, acts as the management company and is regulated by the Commission de Surveillance du Secteur Financier (“CSSF”). This document has been prepared by Polar Capital for informational purposes only for the sole use of the intended recipient. It does not seek to make any recommendation to buy or sell any particular security (including shares in the Fund) or to adopt any specific investment strategy. This document does not contain information material to an investor’s decision to invest in the Fund. Shares in the Fund are offered only on the basis of information contained in the prospectus, key investor information document (“KIID”), and the latest annual audited accounts. Copies are available free of charge from Polar Capital at the below address or on www.polarcapital.co.uk. The KIID is available in Danish, Dutch, English, French, German, Italian, Norwegian, Spanish and Swedish. The prospectus is available in English.

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.

Holdings: Portfolio data is “as at” the date indicated and should not be relied upon as a complete or current listing of the holdings (or top holdings) of the fund. The holdings may represent only a small percentage of the aggregate portfolio holdings, are subject to change without notice, and may not represent current or future portfolio composition. Information on particular holdings may be withheld if it is in the fund’s best interest to do so. A historic complete list of the portfolio holdings may be made available upon request. It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities in this document. A list of all recommendations made within the immediately preceding 12 months is available upon request. This document is designed to provide updated information to professional investors to enable them to monitor the Fund. No other persons should rely upon it. The information provided in this document should not be considered a recommendation to purchase or sell any particular security.

Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.

Allocations: The strategy allocation percentages set forth in this document are estimates and actual percentages may vary from time-to-time. The types of investments presented herein will not always have the same comparable risks and returns. Please see the private placement memorandum for a description of the investment allocations as well as the risks associated therewith. Please note that the Fund may elect to invest assets in different investment sectors from those depicted herein, which may entail additional and/or different risks. Performance of the Fund is dependent on the Investment Manager’s ability to identify and access appropriate investments, and balance assets to maximize return to the Fund while minimizing its risk. The actual investments in the Fund may or may not be the same or in the same proportion as those shown herein.

Country Specific Disclaimers It is the responsibility of any person/s in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Neither Polar Capital nor MST shall be liable for, and accept no liability for, the use or misuse of this document. If such a person considers an investment in Shares of the Fund, they should ensure that they have been properly advised about the suitability of an investment. Please be aware that not every sub-fund of MST or share class is available in all jurisdictions.

Fund Literature

Key Fund Literature

Prospectus

13 Jan 2023

Information for UK Investors

23 Aug 2022

Reportable Income - Melchior Selected Trust

30 Jun 2021

Melchior Statutory Trust - Summary of Investor Rights

10 Aug 2021

Countries in which this fund is available

Please click on each country to see share class availability

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.
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.
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 may enter into a derivative contract. The Fund’s use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as failure amongst market participants.
The use of derivatives will result in the Fund being leveraged (where market exposure and the potential for loss exceeds the amount the Fund has invested) and in these market conditions the effect of leverage will magnify losses. The Fund makes extensive use of derivatives.
If the currency of the share class is different from the local currency in the country in which you reside, the figures shown in this document may increase or decrease if converted into your local currency.

Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.

Country Specific Disclaimers It is the responsibility of any person/s in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Neither Polar Capital nor MST shall be liable for, and accept no liability for, the use or misuse of this document. If such a person considers an investment in Shares of the Fund, they should ensure that they have been properly advised about the suitability of an investment. Please be aware that not every sub-fund of MST or share class is available in all jurisdictions.

Codes & Fees

	Bloomberg	ISIN	SEDOL	Annual Management Fee
EUR Class I Acc	MELEUB1 LX	LU0476438642	B5WG7J8	1.50%	-
GBP Class H Acc Hedged	MELEURH LX	LU0572597879	B592F62	1.75%	-
GBP Class C Acc Hedged	MELEURC LX	LU0476438998	-	2.00%	-
GBP Class I Acc Hedged	MELEURD LX	LU0476439020	B5VK9P1	1.50%	-
JPY Class I Acc Hedged	MELEB3H LX	LU0706247375	B72W4Q6	1.50%	-

Countries in which this fund is available

Please click on each country to see share class availability

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.
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.
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 may enter into a derivative contract. The Fund’s use of derivatives carries the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions, such as failure amongst market participants.
The use of derivatives will result in the Fund being leveraged (where market exposure and the potential for loss exceeds the amount the Fund has invested) and in these market conditions the effect of leverage will magnify losses. The Fund makes extensive use of derivatives.
If the currency of the share class is different from the local currency in the country in which you reside, the figures shown in this document may increase or decrease if converted into your local currency.

Information Subject to Change: The information contained herein is subject to change, without notice, at the discretion of Polar Capital and Polar Capital does not undertake to revise or update this information in any way.

Country Specific Disclaimers It is the responsibility of any person/s in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Neither Polar Capital nor MST shall be liable for, and accept no liability for, the use or misuse of this document. If such a person considers an investment in Shares of the Fund, they should ensure that they have been properly advised about the suitability of an investment. Please be aware that not every sub-fund of MST or share class is available in all jurisdictions.

Melchior Selected Trust - Melchior European Absolute Return Fund	549300YJQTLHX02YJP47
Polar Capital LLP	4YW3JKTZ3K1II2GVCK15

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Alternative

SICAV

Investment Trusts

Melchior European Absolute Return Fund

Fund Overview

Investment Objective

Investment Philosophy

Key Facts

Key Fund Literature

Fund Manager & Analysts

Leonard Charlton

Glen Pratt

Hemant Agrawal

Matthew Coupland

Leonard Charlton

Glen Pratt

Hemant Agrawal

Matthew Coupland

Countries in which this fund is available

Fund Performance

Cumulative Performance (%)

Calendar Year Performance (%)

Discrete Annual Performance (%)

Countries in which this fund is available

Portfolio Exposure

Top 10 Positions (%)

Market Capitalisation Exposure (%)

Composition (%)

Sector Exposure (%)Top Long & Short

Geographic Exposure (%)Top Long & Short

Countries in which this fund is available

Fund Literature

Key Fund Literature

Fact Sheet History

Regulatory Documents

Sustainable Finance Disclosure Regulations

Tax & Distribution Reporting

Report & Accounts

Corporate Documents

Further Literature

Dealing Forms

Countries in which this fund is available

Codes & Fees

Legal Entity Identifier (LEI)

Countries in which this fund is available

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Regional

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Alternative

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Investment Trusts