Discover tomorrow's brightest opportunities

The Polar Capital Emerging Market Stars Fund invests in the future star companies from across the world’s most dynamic, fastest-growing economies.

The Fund is founded on a strong belief that investing in sustainable companies will generate long-term alpha and outperformance. That is why ESG analysis is fully integrated into the portfolio’s distinct investment process, which has been employed by the team since April 2011 and shown to generate alpha in vastly different environments.

Jorry Nøddekær, lead manager of the Polar Capital Emerging Market Stars Fund, explains the fund’s distinct approach to achieving responsible returns within emerging markets.

Long-only emerging market equity fund with a five year track record
Concentrated portfolio of c.50 stocks^†
8.5% excess return since launch*
Sustainability fully integrated into process, with a strong focus on material ESG issues
Strong team of sector specialists with significant experience

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Past performance is not indicative or a guarantee of future results. Source: *Polar Capital, US$ I Acc Share Class, 29 June 2018 to 29 September 2023. Benchmark: MSCI Emerging Markets Net Total Return Index (US$).

^†Typical range of 45-65 stocks.

Home to the most dynamic, fastest-growing economies in the world, emerging markets continue to offer tremendous investment potential. This is especially so for active stockpickers able to not only identify the future star companies but to back them with real conviction.

Identifying the stars of tomorrow

The Polar Capital Emerging Market Stars Fund invests in the future star companies from across these rapidly developing economies. The team of sector specialists seek to identify those companies best placed to leverage their specific strategic positioning in order to significantly grow their Economic Value Add (EVA). It’s a robust, repeatable process that combines strong bottom-up stockpicking with top-down macroeconomic research.

The investment process consists of detailed EVA research with fully integrated sustainability analysis. The outcome seeks to identify the future star companies – companies we believe will generate sustainable shareholder value over the medium to long term.

Building a strong track record

Testament to the skill and experience of the team, the Polar Capital Emerging Market Stars Fund has begun to build an enviable track record.

	1 year	3 years	5 years	Since Inception
Emerging Market Stars Fund	9.65%	-15.10%	19.26%	10.20%
Index	11.70%	-5.09%	2.80%	1.68%
Relative	-2.05%	-10.01%	+16.46%	+8.52%

Past performance is not indicative or a guarantee of future results. Source: Polar Capital, US$ I Acc Share Class, 29 June 2018 to 29 September 2023. Benchmark: MSCI Emerging Markets Net Total Return Index (US$).

Performance indicators(Since inception)

10^th

Universe percentile*

0.01

Sharpe ratio

0.02

Sortino ratio

1.6%

Alpha

0.19%

Information ratio
(net of fees)

Past performance is not indicative or a guarantee of future results. Source: Polar Capital, Lipper, US$ I Acc Share Class, 29 June 2018 to 29 September 2023. Benchmark: MSCI Emerging Markets Net Total Return Index (US$). Peer Group: Lipper Global: Equity Emerging Markets Global.

ESG

A fully integrated approach

Fund manager Jorry Nøddekær has been incorporating ESG analysis into his research for the last 20 years and strongly believes that allocating capital towards real and long-term sustainable companies will lead to alpha generation and deliver outperformance.

There are strong links between a company’s EVA growth and its sustainability and so it is important to move beyond a narrowly defined checklist approach to ESG profiling; each company’s ESG profile is a unique combination of the factors material to its future success or failure. The investment process therefore seeks to:

Directly link a company’s sustainability profile into our EVA framework and financial modelling
Calculate how sustainability modelling directly impacts our assumptions for a company’s cost of capital and fade rate assumptions for future growth
Quantify the future ESG impact on every company we research

We strongly believe that investing in genuine, long-term sustainable companies will lead to alpha generation and deliver outperformance for our clients. That is why sustainability and ESG analysis are fully integrated into the Polar Capital Emerging Stars Fund process.

A highly differentiated portfolio

The Fund’s distinct process and integrated ESG analysis results in a highly differentiated portfolio focused on high conviction stock selection while still managing risk & liquidity.

Source: Polar Capital, 29 September 2023. *Typical range of 45-65 stocks, although manager prefers to invest in 50-55 stocks.

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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.

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 Emerging Markets 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.

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 Polar Capital Funds plc which are riskier than would be the case in the absence of a fee based on the performance of Polar Capital Funds plc.

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.

Statements/Opinions/Views: All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital. This material does not constitute legal or accounting advice; readers should contact their legal and accounting professionals for such information. All sources are Polar Capital unless otherwise stated.

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 emerging markets (developing countries), or from companies which generate a significant amount of their business from emerging market countries.

Investment Philosophy

The Fund seeks to achieve its objective by investing in a broad range of shares from companies in emerging markets (developing countries), or from companies which generate a significant amount of their business from emerging market countries.

The Investment Manager’s investment approach focuses primarily on fundamental bottom-up stock selection with top-down macro-economic research and analysis.

The Investment Manager seeks to identify growth opportunities by looking at global growth expectations, demand drivers, supply drivers (including those which impact changes in supply), macroeconomic trends (such as social demographic trends, monetary and fiscal policy, government models, and competitiveness) and factors impacting company valuations to establish a dynamic understanding of the economic backdrop to the investment universe. The Investment Manager’s research efforts are directed towards detailed analysis of a company’s specific strategic position and opportunities within its industry with a view to establishing its potential for future Economic Value Add (“EVA”). The Investment Manager looks to identify companies with the capability to generate a high, and growing level, of EVA in the future (identified over the medium to long term investment horizon). Having established a company’s opportunity for growth, its competitive position and its potential to create EVA, the Investment Manager uses a proprietary valuation model to identify its expected level of future EVA creation and its expected market value in relation to its current price. The Investment Manager’s process incorporates quantitive and qualitative analysis of environmental, societal and governance policies, performance, practices and impacts. The Investment Manager uses quantitive analysis (exclusionary screening) to avoid companies involved in activities deemed unacceptable or controversial from an environmental, societal and governance perspective, and uses qualitative methods (external research and internal analysis) to identify companies which can demonstrate continual improvement from an environmental, societal and governance perspective.

Key Facts

Team of dedicated sector specialists
Fundamentally-driven analysis and stock selection
ESG-based analysis incorporated as part of the investment process
Typically 45-65 positions

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Key Fund Literature

Morningstar Managed Investment Report

11 Jul 2023

Fund Managers, Analysts & Consultants

Jorry Nøddekær

Lead Fund Manager

Naomi Waistell

Senior Fund Manager

Jasper Wright

Fund Manager

Jerry Wu

Analyst

Peter Andersen

Analyst

Andy Chen

Head of China Research (Shanghai-based)

Aatman Ajmera

Independent Research Consultant (Mumbai based)

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

Naomi Waistell

Naomi joined Polar Capital in August 2020 as a Fund Manager on the Polar Capital Emerging Market Stars Fund, launched in July 2018.

From February 2010, she worked at Newton Investment Management where, since September 2014, she was an investment manager on the emerging markets and Asian equity team. Before this, she was an investment manager on their European and global equity teams. Naomi began her career as an associate at Praefinium Partners Investment Management in 2007 before moving to the financial consultancy arm of the Capita Group in 2009.

Her specific area of interest and expertise is managing portfolios with an ESG focus.

Academic qualificationsBA in English literature, University College London (UCL)Executive MBA (focusing on sustainability management), Cambridge UniversityMA in Shakespeare, UCL
Professional qualificationsCFA Charterholder
Industry experience16 years

Jasper Wright

Jasper joined Polar Capital in June 2023 as a Fund Manager in the Emerging Markets & Asia team. He previously worked for six years at Federated Hermes in London as an Associate Director on their Global Emerging Markets team. Prior to this, Jasper worked for two years as an Analyst at Aberdeen Asset Management in London and completed a summer internship at Arisaig Partners in Singapore.

Academic qualificationsBSc in Economics, University of St Andrews
Professional qualificationsPassed CFA Level 1
Industry experience9 years

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

Peter Andersen

Peter joined Polar Capital in April 2018. Prior to joining Polar Capital, Peter worked for Nordea Asset Management as an analyst on their Emerging Markets team and prior to his tenure at Nordea Asset Management he worked as a junior sell side analyst for Jyske Bank in their corporate bonds team.

Academic qualificationsMSc in Economics and Management, Aarhus University
Professional qualificationsPassed CFA Level III
Industry experience11 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

Aatman Ajmera

Aatman has provided investment research and advisory services on Indian equities to Polar Capital’s Emerging Markets and Asia team since April 2023. Previously, he was the co-portfolio manager of the Nordea Asian Stars Fund, having joined the firm in 2019, before which he worked with East Capital in Sweden, focussing on frontier markets. He is based in Mumbai, India.

Related Insights

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What a Fed pivot and ‘higher for longer’ mean for emerging markets

Jorry Nøddekær

6 Dec 2023

Emerging Markets & Asia

The view across global emerging markets

Jorry Nøddekær

16 Nov 2023

Emerging Markets & Asia

Emerging markets: A base case for rate cuts and bullishness

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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.