Fund Overview

Investment Objective

The Fund’s investment objective is to achieve long term capital growth. The Fund seeks to achieve its objective by investing in a broad range of shares from companies in The Peoples’ Republic of China, Hong Kong and Taiwan (known as ‘Greater China’), or from companies which generate a significant amount of their business from Greater China.

Investment Philosophy

The Fund’s investment objective is to achieve long term capital growth. The Fund seeks to achieve its objective by investing in a broad range of shares from companies in The Peoples’ Republic of China, Hong Kong and Taiwan (known as ‘Greater China’), or from companies which generate a significant amount of their business from Greater China.

The Investment Manager looks to invest in structural winners that are able to capitalise on the massive growth and transformation opportunities in Chinese economy. Stock-picking efforts are directed towards identifying high quality businesses under the stewardship of high quality management teams that care about minority shareholders. These well managed companies with strong and sustainable strategic position and growth opportunities are able to create significant future Economic Value Add (“EVA”) and long term shareholder value.

Key Facts

Team of dedicated sector specialists
The team has 85+ years of combined industry experience
Fundamentally-driven analysis and stock selection
Typically 40‑60 positions

Key Fund Literature

Morningstar Managed Investment Report

30 Sep 2023

Fund Managers & Analysts

Jerry Wu

Fund Manager

Jorry Nøddekær

Fund Manager

Andy Chen

Head of Research

Jerry Wu

Jerry joined Polar Capital in June 2018. Prior to joining Polar Capital, Jerry was the fund manager of the Nordea Chinese Equity Fund and prior to his tenure at Nordea, Jerry was an equity analyst at Generation Investment Management specialising in China.

Jerry has also worked for BlackRock as a fundamental equity research analyst based in London and the US, specialising in the global consumer and technology sectors. Further to this, Jerry is a native speaker of Mandarin and fluent in English.

Academic qualificationsBSc in Economics, Peking UniversityMSc in Management, London Business School
Professional qualificationsCFA Charterholder
Industry experience13 years

Jorry Nøddekær

Jorry joined Polar Capital in June 2018 to set up the Polar Capital emerging markets growth franchise.

Prior to joining Polar Capital, Jorry worked at various firms including Nordea Investment Management, Danske Capital, F&C Investment Management, New Star Asset Management and BankInvest Asset Management.

Academic qualificationsMSc in Economics and Finance, Aarhus University
Industry experience23 years

Andy Chen

Andy joined Polar Capital in June 2018. Previously, Andy was a portfolio manager at Laxey Partners Ltd, having joined the firm in 2008. During his tenure at Laxey, Andy specialised in Chinese and China-related equities. Andy is a native speaker of Mandarin and fluent in English.

Academic qualificationsBSc in Accounting and Finance, Lancaster UniversityMPhil in Real Estate Finance, University of Cambridge
Industry experience15 years

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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 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 country. 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 website does not contain information material to the investment objectives or financial needs of the recipient. This website 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 website 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. 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, among other characteristics, environmental or social characteristics and is classified as an Article 8 fund under the EU's Sustainable Finance Disclosure Regulation (SFDR). For more information, please see the Prospectus and relevant Fund Supplement.

ESG and sustainability characteristics are further detailed on the investment manager’s website: (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. 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.

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.

Benchmark: The Fund is actively managed and uses the MSCI China All Shares Net Total Return Index as a performance target and to calculate the performance fee. 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 www.msci.com. 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.

Country Specific Disclaimers When considering an investment into the Fund, you should make yourself aware of the relevant financial, legal and tax implications. Neither Polar Capital LLP nor Polar Capital Funds plc shall be liable for, and accept no liability for, the use or misuse of this document.

The Fund is registered for sale to all investors in the countries listed above. Investors should make themselves aware of the relevant financial, legal and tax implications if they choose to invest.

Source & Copyright: ©2023 Morningstar, Inc. All Rights Reserved. Rating representative of the I USD Acc Share Class, as at 30/09/2023. 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. This rating is 55% Analyst-Driven and based on Data Coverage of 98%. 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 investor-relations@polarcapitalfunds.com.

Long-term performance built on sustainability

Looking at companies through the lens of sustainability helps us understand what drives and influences industries and companies, and to identify the best investment opportunities. We believe high quality assets that can deliver superior long-term shareholder returns must be sustainable businesses.

Our fully integrated ESG process includes comprehensive analysis of environmental, social and governance issues, all material factors in our evaluation of business and management quality.

ESG Policy Documents

SFDR Level 2 Website Disclosure

28 Dec 2022

ESG Integration

Our Sustainability Delta

There are three elements to our ‘Sustainability Delta’ and all are instrumental in understanding, analysing and forecasting the full sustainability integration and potential of a business.

Companies are analysed and then scored across the three areas–Impact on Progress, Material ESG Issues and Business Ethics, for both their current level and future direction (determined by current projections and commitments).

We seek to understand the strategic goals of companies, their positioning and their path towards achieving those goals, in relation to three pillars: Economic Progress, Social Development and Resource Management.

Impact on Progress

We analyse material ESG issues, focussing on the operational aspects of the business. Not only do we score companies on the current level of their operations, but also their longer-term direction, meaning we have a comprehensive view of how these might impact alpha generation.

Material ESG Issues

We believe a company needs to act with integrity, compete fairly and be open and honest with its stakeholders. We score companies across three core factors: Fraud Prevention; Corruption Prevention and Competitive Practices.

Business Ethics

123Sustainability
Delta

Investment Integration

Our investment philosophy and process is built around long-term Economic Value Added (EVA). We believe EVA is the true measure of shareholder value creation, and changes in a company’s future EVA creation are what ultimately drives stock prices.

A company’s sustainability profile is one of the essential drivers of long-term EVA creation, which is why we fully intertwine the two. This gives us a complete picture of the best risk-adjusted, mispriced investment opportunities; Star companies that will enable us to achieve responsible returns.

We also maintain focus on a smaller, select group of Chinese companies that fall within key growth areas and our ‘Circle of Competence’, which enables us to dig deeper into potential investment opportunities. This often leads us to differentiated conclusions on the quality and long-term performance of companies; a distinct approach to idea generation which helps us spot the best opportunities across this large and varied region.

Engagement

Building strong relationships with management teams

Ongoing engagement and monitoring are a constant and valuable part of our process and we focus very heavily on how companies see the future and how they allocate capital accordingly. We view engagement as entirely integrated with ongoing, fundamental dialogue with our investment companies.

We hold hundreds of meetings each year, alongside site visits, meetings with competitors, suppliers, customers, industry experts and employees as part of our ongoing engagement and due diligence. Building strong relationships with management teams means that we are well-placed to engage with companies on a range of issues, going beyond (although still relevant to) immediate strategic and financial considerations.

These can include:

Management Remuneration

Capital Structure

Supply Chains

Regulatory Changes

Environmental Policies

Human Capital Management

Product Development and Safety

Litigation

Improvement in Disclosure

Voting

Supporting long-term value generation

We will always vote in the best interests of clients, and for long-term value generation. We aim to vote on 100% of our holdings and are not afraid to vote against management where we believe that is necessary.

Polar Capital uses Institutional Shareholder Services (ISS) to assist with proxy voting. Stewardship is a very important part of our fiduciary duty, and we see ourselves as stewards of our clients’ capital. Find out more here.


Items voted	776
Votable items	776
Ballots voted	94
Votable ballots	94
Meetings voted	94
Votable meetings	94

Vote Cast Statistics

	Votes FOR	639
	Votes AGAINST	133
	Votes ABSTAIN	0
	Votes WITHHOLD	0
	Votes on MSOP	4

All voting data as at 30 June 2023


China	58
Cayman Islands	28
Taiwan	3
Hong Kong	2
Bermuda	1
Netherlands	1
USA	1

Related Insights

Emerging Markets & Asia

What is at the root of China’s recent woes?

Jerry Wu

13 Sep 2023

Emerging Markets & Asia

Why China is often misunderstood by the West

Jerry Wu

17 Mar 2023

Emerging Markets & Asia

China’s Year of the Rabbit: Reopen, Recover, Reset

Jerry Wu

3 Feb 2023

Emerging Markets & Asia

China in 2023: Year of the Economy

Jerry Wu

11 Jan 2023

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 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 country. This focused strategy can produce high gains but can also lead to significant losses. The Fund may be less diversified than other investment funds.