The words and deeds of US President-elect Donald Trump and his administration could have a huge impact on emerging markets and Asia. Now we have had a few weeks to understand what that new administration will look like and analyse more of Trump’s rhetoric so far, we feel we have a much better understanding of the likely policy direction.

We now have clarity on the outcome and can start to search for similar clarity with regard to which policies we can expect under a Republican clean sweep.

Trump’s victory sends a very clear signal about where the US stands politically. The Democrats failed to convincingly demonstrate how they could improve the everyday lives of Americans compared to Trump. The uncontrolled inflation that the Biden administration created by keeping fiscal policy too loose for too long probably cost them this election.

For us so far, the ‘Trump risk’ to emerging markets and Asia has been much less than we feared – admittedly it is very early days – remembering his first presidential term. We suspected that a Trump victory was already priced into the market, as emerging markets and Asia had been risk averse for some time, with US politics, geopolitics and inflation being the big topics. This means Trump winning the election should not be a massive surprise. Betting firms turned out to be significantly better forecasters than traditional polling firms that, once again, did a poor job, missing the ‘Red sweep’ entirely.

The ‘Trump risk’ to emerging markets and Asia has been much less than we fearedLeading up to the election on 5 November, the so-called ‘Trump trade’ played out for most of October as he led the way in most swing states, even with a small margin, and it was only towards the end of the month that Harris was moving up the polls. The reaction in markets, including ours, was therefore more muted this time around relative to Trump’s first victory which came as a genuine surprise.

Trump’s key appointments

It is now clear that we are faced with a Republican majority in both the Senate and Congress. As we write this, we have seen most of the appointments for key positions in the new administration which also gives us more sense of what we need to look out for – we would like to say “expect” but we need more flexibility given the likelihood of a few surprises to come.

In the weeks since the election result, the equity and fixed income markets have started to paint their own picture of likely policy direction. The market believes this will be very pro-business and pro-technology, and we tend to agree. The initial reaction across our fund range in the days after the election was for most of our technology stocks to tick upwards. India followed the same path as it was seen as the safest of havens across emerging markets with regard to Trump risk. Many, including us, would say India has the potential for additional gains and being a genuine ‘winner’ with Trump in power in the US.

We see pressure on other emerging markets, with plenty of focus on China, though again a great deal of negative sentiment was already in the price.

When we started to see some of the more aggressive policy announcements, as with the commitment to deport illegal immigrants, Trump’s policies are starting to look inflationary – the 10-year Treasury curve moved up – which signalled the usual emerging market duration risk. Since then we have seen market weakness which is where we more or less stand today.

It appears that Trump and those behind him are picking people for the key positions in the administration who are very loyal to him. We should therefore expect that with a clean sweep and strong, loyal backers inside the White House, he will be able to push his policies through.

We have recently had two key announcements, the first being Scott Bessent as the new Treasury Secretary, assuming approval by the Senate. He has strong Wall Street credentials and in the past was a great advocator for debt reduction. The mini relief rally shows at least the market approved, though we also saw the dollar weaken suggesting it thinks Bessent can better control the debt trends.

The second was something we have more or less have been waiting for with the first round of tariff increases. They were  more mild than we expected, with ‘only’ a 10% additional tariff increase on goods from China on his first day in office – during his campaign he talked of much higher numbers. There were also tariff announcements for Mexico and Canda, with some seeing the Canadian tariffs as a surprise. We think the tariffs on Mexico and Canada are related to the renegotiation of their trade deal (the current NAFTA 2.0) which is soon up for renewal.

US/China relationship

From an emerging market and Asia perspective, the biggest question is how the US/China relationship will evolve under Trump as there are plenty of China hawks in the administration. It was assumed that Robert Lighthizer, one of the hawks, would be the US Trade Representative, however Trump selected his protégé Jamieson Greer. Our assumption for now is that he will follow Lighthizer’s path, as will John Ratcliffe (CIA), Mike Waltz (National Security Adviser) and Commerce Secretary Howard Lutnick, though we get the sense he will follow whatever line Trump follows. As yet, Mike Pompeo, former Director of the CIA under Trump, has not been given a role. In the past we have considered him risky as he seems to want to complicate the US/China relationship. He may yet have some form of influence from the sidelines.

Our base case is for a managed decoupling, built around our longer-term narrative for emerging markets and Asia over the coming decade and a ‘New Multipolar World’On the more dovish side are, we believe, people like Elon Musk and Wall Street darling Bessent. They are expected to want some form of deal with China and therefore greater stability. They will almost certainly have influence, particularly Musk given the access and influence he has on Trump. However, they will likely lack the authority to make a huge impact on the US approach should others go hard on China.

To summarise, there are four scenarios for the US/China relationship. (1) A deal between the two superpowers around trade, tariffs, commitment to manufacturing in the US and so on; (2) A managed decoupling, which is pretty much what we have now, with the two drifting apart on many fronts but still inter-dependent on key trade items. This will play out over the long term, so as to not cause too much volatility; (3) an unmanaged decoupling, where any relationship breaks down very quickly the next two years or so; and (4) a direct crisis/conflict.

Our base case is for a managed decoupling, built around our longer-term narrative for emerging markets and Asia over the coming decade and a ‘New Multipolar World’. However, we do see the probability of an unmanaged decoupling having increased slightly with some of these key administration appointments. This is certainly something we will monitor closely.

The pros and the cons

From our point of view, there is one likely risk and one likely benefit of Trump as president. The risk is that many countries (and therefore companies) will likely be hit with tariff increases, potentially across the board. Hopefully, his tariff policies are merely negotiation tactics and will not be too bad in the end. We do not see manufacturing moving back to the US in a hurry so will ultimately be a direct extra tax (inflation) on the US consumer and Asian companies will likely be hit due to higher prices.

We believe India stands to be one of the big winners from Trump being electedWith this in mind, technology is a difficult sector to assess as we have been informed that key US companies, particularly NVIDIA and Tesla, need the Asian supply chain. Also, many key geopolitical hawks want to help Taiwan, or rather they want to do anything to upset China.

Technology leads me to the likely benefit. Trump will push for lower taxes and less regulation which we believe will be bullish for the large US technology companies and hyperscalers. If they have strong/stronger earnings we see a greater likelihood they will go for higher capex in their fight for AI leadership which will spill over for the South Korean and Taiwanese technology companies, a large part of the Asian investment universe.

We believe India stands to be one of the big winners from Trump being elected and on most risk and export-related models, it is forecast to be the least negatively impacted country from Trump coming to power. This is what the market has been signalling so far. We have benefited from our India exposure and have retained an overweight position, adding to our position recently as our view is India will see little impact and, given the sell off in India over the past six or seven weeks, there are a couple of good candidates likely to benefit from us adding capital.

From a medium to longer-term view, Trump carries additional risk, more directly for the US but his impact could be felt further afield, as most policies indicated so far are stagflationary, i.e. lower growth and higher inflation. Though felt harder in the US, this is a risk to all investments globally that have some form of duration risk. Furthermore, this will likely limit the Fed’s monetary (easing) cycle which, combined with tariffs and the impact on trade, will lead to a stronger dollar – at least until the rest of the world retaliates. Given Trump is trying to front-load growth, he will drive up debt levels in the US, which is likely to turn into a higher term premium in the Treasury market. None of this is long-term bullish for any asset with a duration profile.

The really big unknown is what Musk will do from inside the government. Can he bring efficiency? If he does it will be the equivalent of a positive supply shock and reduce much of the fear around inflation. We see this as a potential positive upside for the future but our base case is that we will not see a huge impact from him.

Given all this, the key question becomes ‘Is this time different?’. The last time we saw even low levels of stagflation, it hit markets like ours harder that the root of the problem, the US, which has been able to survive on its so-called exceptionalism. We bow to history but believe fundamentals are on our side. Asian equities have a good chance of becoming the new global growth engine and the anti-debt trade – this is all part of our ‘New Multipolar World’ narrative.

Outlook

The long and short of Trump’s victory is that we believe much of the risk is already priced into the market and we have seen weakness over the past six weeks or so on how Trump polls. However, whenever Trump says anything negative about China there is a risk of markets reacting the following day, even though we all know it is coming sooner or later.

On the positive side, underlying economic fundamentals – excluding China – are stacking up nicely and valuation levels are low, reflecting much of the risk already. We believe that eventually fundamentals will prevail.

It is interesting to note that over the last Trump presidency, emerging markets and Asia outperformed US small caps (as per the Russell 2000 Index) and gave a positive absolute return.

Over the past three months, we have taken some duration risk out of the portfolios and effectively only kept traditional duration risk in technology companies, given we see this as one of the few industries to see support from Trump. Furthermore, we have kept an underweight in China though there is a high risk China will expand its stimulus measures on the back of Trump winning.

Geopolitically, we see more risk to Europe than Asia in the coming period. Trump is likely to oppose any support for Ukraine meaning the Russian border will effectively shift further west.

Given all of this, we remain constructive on the outlook for emerging markets. The Fund has shown strong long-term performance and is in the top decile since inception in June 2018 as well as the past five years, according to Lipper, and we remain confident that we can continue to deliver for our investors.

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 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, 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. 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.

Benchmark: The Fund is actively managed and uses the MSCI Emerging Market 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.

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.

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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.

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Emerging Market Stars

The words and deeds of US President-elect Donald Trump and his administration could have a huge impact on emerging markets and Asia. Now we have had a few weeks to understand what that new administration will look like and analyse more of Trump’s rhetoric so far, we feel we have a much better understanding of the likely policy direction.

We now have clarity on the outcome and can start to search for similar clarity with regard to which policies we can expect under a Republican clean sweep.

Trump’s victory sends a very clear signal about where the US stands politically. The Democrats failed to convincingly demonstrate how they could improve the everyday lives of Americans compared to Trump. The uncontrolled inflation that the Biden administration created by keeping fiscal policy too loose for too long probably cost them this election.

For us so far, the ‘Trump risk’ to emerging markets and Asia has been much less than we feared – admittedly it is very early days – remembering his first presidential term. We suspected that a Trump victory was already priced into the market, as emerging markets and Asia had been risk averse for some time, with US politics, geopolitics and inflation being the big topics. This means Trump winning the election should not be a massive surprise. Betting firms turned out to be significantly better forecasters than traditional polling firms that, once again, did a poor job, missing the ‘Red sweep’ entirely.

The ‘Trump risk’ to emerging markets and Asia has been much less than we fearedLeading up to the election on 5 November, the so-called ‘Trump trade’ played out for most of October as he led the way in most swing states, even with a small margin, and it was only towards the end of the month that Harris was moving up the polls. The reaction in markets, including ours, was therefore more muted this time around relative to Trump’s first victory which came as a genuine surprise.

Trump’s key appointments

It is now clear that we are faced with a Republican majority in both the Senate and Congress. As we write this, we have seen most of the appointments for key positions in the new administration which also gives us more sense of what we need to look out for – we would like to say “expect” but we need more flexibility given the likelihood of a few surprises to come.

In the weeks since the election result, the equity and fixed income markets have started to paint their own picture of likely policy direction. The market believes this will be very pro-business and pro-technology, and we tend to agree. The initial reaction across our fund range in the days after the election was for most of our technology stocks to tick upwards. India followed the same path as it was seen as the safest of havens across emerging markets with regard to Trump risk. Many, including us, would say India has the potential for additional gains and being a genuine ‘winner’ with Trump in power in the US.

We see pressure on other emerging markets, with plenty of focus on China, though again a great deal of negative sentiment was already in the price.

When we started to see some of the more aggressive policy announcements, as with the commitment to deport illegal immigrants, Trump’s policies are starting to look inflationary – the 10-year Treasury curve moved up – which signalled the usual emerging market duration risk. Since then we have seen market weakness which is where we more or less stand today.

It appears that Trump and those behind him are picking people for the key positions in the administration who are very loyal to him. We should therefore expect that with a clean sweep and strong, loyal backers inside the White House, he will be able to push his policies through.

We have recently had two key announcements, the first being Scott Bessent as the new Treasury Secretary, assuming approval by the Senate. He has strong Wall Street credentials and in the past was a great advocator for debt reduction. The mini relief rally shows at least the market approved, though we also saw the dollar weaken suggesting it thinks Bessent can better control the debt trends.

The second was something we have more or less have been waiting for with the first round of tariff increases. They were  more mild than we expected, with ‘only’ a 10% additional tariff increase on goods from China on his first day in office – during his campaign he talked of much higher numbers. There were also tariff announcements for Mexico and Canda, with some seeing the Canadian tariffs as a surprise. We think the tariffs on Mexico and Canada are related to the renegotiation of their trade deal (the current NAFTA 2.0) which is soon up for renewal.

US/China relationship

From an emerging market and Asia perspective, the biggest question is how the US/China relationship will evolve under Trump as there are plenty of China hawks in the administration. It was assumed that Robert Lighthizer, one of the hawks, would be the US Trade Representative, however Trump selected his protégé Jamieson Greer. Our assumption for now is that he will follow Lighthizer’s path, as will John Ratcliffe (CIA), Mike Waltz (National Security Adviser) and Commerce Secretary Howard Lutnick, though we get the sense he will follow whatever line Trump follows. As yet, Mike Pompeo, former Director of the CIA under Trump, has not been given a role. In the past we have considered him risky as he seems to want to complicate the US/China relationship. He may yet have some form of influence from the sidelines.

Our base case is for a managed decoupling, built around our longer-term narrative for emerging markets and Asia over the coming decade and a ‘New Multipolar World’On the more dovish side are, we believe, people like Elon Musk and Wall Street darling Bessent. They are expected to want some form of deal with China and therefore greater stability. They will almost certainly have influence, particularly Musk given the access and influence he has on Trump. However, they will likely lack the authority to make a huge impact on the US approach should others go hard on China.

To summarise, there are four scenarios for the US/China relationship. (1) A deal between the two superpowers around trade, tariffs, commitment to manufacturing in the US and so on; (2) A managed decoupling, which is pretty much what we have now, with the two drifting apart on many fronts but still inter-dependent on key trade items. This will play out over the long term, so as to not cause too much volatility; (3) an unmanaged decoupling, where any relationship breaks down very quickly the next two years or so; and (4) a direct crisis/conflict.

Our base case is for a managed decoupling, built around our longer-term narrative for emerging markets and Asia over the coming decade and a ‘New Multipolar World’. However, we do see the probability of an unmanaged decoupling having increased slightly with some of these key administration appointments. This is certainly something we will monitor closely.

The pros and the cons

From our point of view, there is one likely risk and one likely benefit of Trump as president. The risk is that many countries (and therefore companies) will likely be hit with tariff increases, potentially across the board. Hopefully, his tariff policies are merely negotiation tactics and will not be too bad in the end. We do not see manufacturing moving back to the US in a hurry so will ultimately be a direct extra tax (inflation) on the US consumer and Asian companies will likely be hit due to higher prices.

We believe India stands to be one of the big winners from Trump being electedWith this in mind, technology is a difficult sector to assess as we have been informed that key US companies, particularly NVIDIA and Tesla, need the Asian supply chain. Also, many key geopolitical hawks want to help Taiwan, or rather they want to do anything to upset China.

Technology leads me to the likely benefit. Trump will push for lower taxes and less regulation which we believe will be bullish for the large US technology companies and hyperscalers. If they have strong/stronger earnings we see a greater likelihood they will go for higher capex in their fight for AI leadership which will spill over for the South Korean and Taiwanese technology companies, a large part of the Asian investment universe.

We believe India stands to be one of the big winners from Trump being elected and on most risk and export-related models, it is forecast to be the least negatively impacted country from Trump coming to power. This is what the market has been signalling so far. We have benefited from our India exposure and have retained an overweight position, adding to our position recently as our view is India will see little impact and, given the sell off in India over the past six or seven weeks, there are a couple of good candidates likely to benefit from us adding capital.

From a medium to longer-term view, Trump carries additional risk, more directly for the US but his impact could be felt further afield, as most policies indicated so far are stagflationary, i.e. lower growth and higher inflation. Though felt harder in the US, this is a risk to all investments globally that have some form of duration risk. Furthermore, this will likely limit the Fed’s monetary (easing) cycle which, combined with tariffs and the impact on trade, will lead to a stronger dollar – at least until the rest of the world retaliates. Given Trump is trying to front-load growth, he will drive up debt levels in the US, which is likely to turn into a higher term premium in the Treasury market. None of this is long-term bullish for any asset with a duration profile.

The really big unknown is what Musk will do from inside the government. Can he bring efficiency? If he does it will be the equivalent of a positive supply shock and reduce much of the fear around inflation. We see this as a potential positive upside for the future but our base case is that we will not see a huge impact from him.

Given all this, the key question becomes ‘Is this time different?’. The last time we saw even low levels of stagflation, it hit markets like ours harder that the root of the problem, the US, which has been able to survive on its so-called exceptionalism. We bow to history but believe fundamentals are on our side. Asian equities have a good chance of becoming the new global growth engine and the anti-debt trade – this is all part of our ‘New Multipolar World’ narrative.

Outlook

The long and short of Trump’s victory is that we believe much of the risk is already priced into the market and we have seen weakness over the past six weeks or so on how Trump polls. However, whenever Trump says anything negative about China there is a risk of markets reacting the following day, even though we all know it is coming sooner or later.

On the positive side, underlying economic fundamentals – excluding China – are stacking up nicely and valuation levels are low, reflecting much of the risk already. We believe that eventually fundamentals will prevail.

It is interesting to note that over the last Trump presidency, emerging markets and Asia outperformed US small caps (as per the Russell 2000 Index) and gave a positive absolute return.

Over the past three months, we have taken some duration risk out of the portfolios and effectively only kept traditional duration risk in technology companies, given we see this as one of the few industries to see support from Trump. Furthermore, we have kept an underweight in China though there is a high risk China will expand its stimulus measures on the back of Trump winning.

Geopolitically, we see more risk to Europe than Asia in the coming period. Trump is likely to oppose any support for Ukraine meaning the Russian border will effectively shift further west.

Given all of this, we remain constructive on the outlook for emerging markets. The Fund has shown strong long-term performance and is in the top decile since inception in June 2018 as well as the past five years, according to Lipper, and we remain confident that we can continue to deliver for our investors.

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 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, 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. 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.

Benchmark: The Fund is actively managed and uses the MSCI Emerging Market 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.

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: 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 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 and paying agent is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, CH-8002 Zurich, Switzerland.

Austria / Belgium / Denmark (professional only) / Finland / France / Germany /Gibraltar / Ireland / Italy / Liechtenstein / Luxembourg / Netherlands / Norway / Portugal / 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.