Strategy Overview

Investment Objective

The Strategy’s investment objective is to generate both income and long term capital growth by investing in a diversified portfolio of securities, primarily in the global convertible market.

Investment Philosophy

Target asymmetric, risk-adjusted returns
Invest globally, geography and benchmark agnostic
Clear focus on limiting drawdowns and identifying re-rating catalysts
Maintain portfolio liquidity

The Portfolio Manager targets superior risk-adjusted returns based on extensive fundamental research and convertible bond analysis. The Strategy has a focus on downside protection, income generation, and balanced upside equity participation.

Investment decisions rely heavily upon fundamental credit and equity research, using both quantitative analysis (Convertible bond modelling, company balance sheet & income statement analysis and peer group analysis) and qualitative analysis (Third party research, management meetings and review of economic fundamentals and sector trends).

Key Facts

Team of four sector specialists based in London and Connecticut
The team has 90 years of combined industry experience
Typically 50‑80 positions with geographic and sector diversification
Fundamentally-driven convertible analysis. No benchmark constraints
Ability to hedge interest rates

Strategy Availability

UCITS Fund
Separate Account

Management

David Keetley

Portfolio Manager

Stephen McCormick

Portfolio Manager

Jake Collins, CFA

Head of Credit & Convertible Research

Michael Provvisionato

Investment Analyst

David Keetley

David joined Polar Capital in October 2010 to establish the Global Convertibles team.

David is an experienced convertible bond specialist, having spent 36 years in the asset class in both investment banking and investment management. Before joining Polar Capital in October 2010 to establish the Convertible team, he was joint CEO of Vicis Capital (UK) Ltd which he joined in 2006 to set up and manage the international convertible portfolio of the New York-based hedge fund. David started his career at Salomon Brothers International and moved to Baii (a subsidiary of BNP Paribas) in 1987, where he first started managing convertibles. He joined Schroders in 1996 and Citigroup in 2000 following the Citi takeover of Schroder Investment Bank.

Academic qualificationsBSc (Hons) in Civil Engineering, University of Glasgow
Professional qualificationsFellow of the Chartered Institute for Securities and Investment
Industry experience38 years

Stephen McCormick

Stephen joined Polar Capital in October 2010 and is co-manager of the Global Convertibles Strategy and the Convertibles Based Absolute Return Strategy.

Prior to moving into convertible trading, Stephen was a research analyst at Tucker Anthony. In 1993 he became a partner in Forum Capital Markets, eventually joining Paine Webber in 1994 where he went on to manage their convertible department until 1998. He was a senior member of the convertible sales team at Morgan Stanley before establishing and managing Valmiki Capital Management in 2005. The following year, he moved to Moore Capital where he, as a member of a three-person team, managed a $1bn global long/short equity portfolio before joining Vicis Capital to manage the US convertible bond portfolio in 2008.

Academic qualificationsBSc in Finance, Providence College, Rhode Island
Industry experience38 years

Jake Collins, CFA

Jake joined Polar Capital in October 2013 following a summer internship during which he created materials to help in the initial days of marketing the Polar Capital Global Convertible Fund. He joined as an Investment Analyst and was subsequently promoted to Senior Investment Analyst in 2022 and Head of Credit and Convertible Research in 2025.

Academic qualificationsBSc (1st Class Hons) in Mathematics, University of DurhamMSc (Merit) in Finance and Investment, University of Durham
Professional qualificationsCFA Charterholder
Industry experience11 years

Michael Provvisionato

Michael joined Polar Capital as an Investment Analyst in the Convertible Bond Team in July 2022. He completed a four-month internship with the team earlier in the year, carrying out ESG and sustainability research as the Funds transitioned to be SFDR Article 8 compliant. He graduated magna cum laude in Finance from Providence College, Rhode Island, in summer 2022.

Academic qualificationsBSc (magna cum laude) in Finance, Providence College, Rhode Island
Industry experience3 years

Risk Considerations

Risks:

Capital is at risk and there is no guarantee the Strategy will achieve its objective. Investors should make sure their attitude towards risk is aligned with the risk profile of the Strategy.

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 Strategy’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 Strategy’s Prospectus for details of all risks.
The Strategy may enter into a derivative contract. The Strategy’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 Strategy being leveraged (where market exposure and the potential for loss exceeds the amount the Strategy has invested) and in these market conditions the effect of leverage will magnify losses. The Strategy 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 on this webpage may increase or decrease if converted into your local currency.

Important Information: This website is provided for the sole use of the intended recipient and is not a financial promotion. The Polar Capital Global Convertibles Strategy (the “Strategy”) is a Strategy of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This website does not seek to make any recommendation to buy or sell any particular security (including shares in the Strategy) or to adopt any specific investment strategy. This website does not contain information material to an investor’s decision to invest in the Strategy. Shares in the Strategy 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.polarcapitalfunds.com. 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.

Benchmark: The Strategy is actively managed and uses the Refinitiv Global Focus Convertible Bond 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 Strategy invests. The performance of the Strategy 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 at https://www.refinitiv.com/en/financial-data/indices/convertible-indices. 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 Strategy, 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.

Consideration of UN SDG 8: Decent Work and Economic Growth

The Polar Capital Global Convertibles Strategy considers the alignment of its investments with the United Nations Sustainable Development Goal 8 ¹, which promotes sustained, inclusive and sustainable economic growth, full and productive employment for all, efficient use of resources and protection against environmental degradation.

Below please find a summary of our 3 stage process to promote responsible and sustainable corporate behaviour.

1. UN SDGs refers to the United Nations Sustainable Development Goals as described here: The 17 Goals | Sustainable Development (un.org).

Stage 1 – Exclusions

Applying norms-based and negative screens

The Global Convertible Bond Fund’s investment universe is subject to the following two exclusion criteria.

1. Norms-based screening

This ensures that potential investee companies that are involved in controversial practices are excluded from investment. We take into account the UN’s Global Compact, International Labour Organisation and Human Rights violations in this process.

2. Exclusions

We also exclude companies we believe have a negative impact on the world by virtue of their business activities. We exclude companies that derive a certain percentage of their revenues from the following activities.

Thermal coal production and distribution

Tobacco production and distribution

Adult entertainment

It should be noted that exclusions do not apply to short positions.

Stage 2 – Alignment Framework

Seeking positive alignment to our ESG framework

The framework considers the alignment of companies issuing convertible bonds with the United Nations Sustainable Development Goal 8: Decent Work and Economic Growth. We see a strong parallel between the aims of SDG Goal 8 and the essential characteristics of the Strategy’s investment selection process.

We have identified eight sustainability indicators, listed below. We analyse potential investments against these eight indicators and determine either alignment or mis-alignment. From this analysis we are able to determine the quantum of alignment and so calculate an alignment score. We are then able to construct a portfolio ensuring that the majority of the portfolio is positively aligned to our ESG framework.

Promotion of Economic Growth

Support companies generating positive economic impacts.

Drive Innovation, Progress and Productivity

Support companies driving developing technologies that improve economic productivity and labour productivity.

Job Creation and Entrepreneurship

Support companies whose activities improve labour market dynamics and contribute to breadth of economic performance.

Resource Efficiency and Environmental Protection

Support companies who are improving resource efficiencies and whose activities do not contribute to environmental degradation.

Equality of Opportunity

Support companies providing equal opportunity and who do not contribute to exploitation of labor.

Access to Financial Services and Insurance

Support companies whose reach and intent enables lower cost or increased access to financial services.

Youth Unemployment

Support skills growth and wealth creation opportunities in the younger generation.

Sustainable Tourism

Support responsible travel that benefits, rather than exploits, the communities in which it occurs.

Stage 3 - Investment Integration

Sustainability inherent to our modelling process

Sustainability considerations play an integral role in our expectation of risk and opportunity of each prospective investment. This is manifested within our fundamental modelling process in three key ways; (i) the use of credit spreads to reflect the risk of near- and medium-term cash flow and repayment certainty, (ii) determining the appropriate weighted average cost of capital and (iii) making forward projections over our seven-year forecast horizon.

Risk Considerations

Risks:

Capital is at risk and there is no guarantee the Strategy will achieve its objective. Investors should make sure their attitude towards risk is aligned with the risk profile of the Strategy.

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 Strategy’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 Strategy’s Prospectus for details of all risks.
The Strategy may enter into a derivative contract. The Strategy’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 Strategy being leveraged (where market exposure and the potential for loss exceeds the amount the Strategy has invested) and in these market conditions the effect of leverage will magnify losses. The Strategy 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 on this webpage may increase or decrease if converted into your local currency.

Important Information: This website is provided for the sole use of the intended recipient and is not a financial promotion. The Polar Capital Global Convertibles Strategy (the “Strategy”) is a Strategy of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This website does not seek to make any recommendation to buy or sell any particular security (including shares in the Strategy) or to adopt any specific investment strategy. This website does not contain information material to an investor’s decision to invest in the Strategy. Shares in the Strategy 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.polarcapitalfunds.com. 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: When considering an investment into the Strategy, 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.

Top 5 Positions (Net Exposure by LMV) (%)

Helios Towers 2.875% 03/2027	7.8
Nutanix Inc 0.25% 10/2027	5.0
MP Materials Corp 3% 03/2030	4.7
Bill Holdings 0% 04/2030	4.1
Just Eat Takeaway 0% 08/2025	3.9
Total	25.5

Leverage (LMV/AUM)112.39%

Market Cap Underlying Stocks (%)

	Fund
Large (>US$5bn)	63.7
Medium (US$500m to 5bn)	36.1
Small (<US$500m)	0.2


0 to 3 Years	32.6
3 to 5 Years	45.8
5 to 7 Years	21.6
		0 5 10 15 20 25 30 35 40 45


USD	78.9
EUR	12.3
JPY	6.0
AUD	2.2
CHF	0.3
KRW	0.3
SGD	-0.1
Other	0.0
		0 10 20 30 40 50 60 70

	Strategy	Relative
Financial	12.7	8.4
Telecom	7.7	6.0
IT	31.8	5.3
Consumer Discretionary	14.7	2.3
Materials	4.9	1.8
Healthcare	12.4	1.5
Credit Hedge	0.0	0.0
Consumer Staples	0.0	-0.6
Energy	3.1	-0.9
Transportation	4.2	-3.6
Real Estate	0.5	-6.3
Industrial	4.5	-6.8
Utilities	3.5	-7.1
			-6 -4 -2 0 2 4 6 8

Regional Exposure by LMV (%)

Polar Capital Global Convertibles Strategy

	US	38.6
	Europe	28.8
	Japan	2.7
	Asia ex Japan	17.7
	Other Markets	10.8
	Canada	1.3

Refinitiv Global Focus Convertible Bond Index

	US	68.9
	Europe	13.0
	Japan	6.3
	Asia ex Japan	9.2
	Other Markets	2.5

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.

Risk Considerations

Risks:

Capital is at risk and there is no guarantee the Strategy will achieve its objective. Investors should make sure their attitude towards risk is aligned with the risk profile of the Strategy.

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 Strategy’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 Strategy’s Prospectus for details of all risks.
The Strategy may enter into a derivative contract. The Strategy’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 Strategy being leveraged (where market exposure and the potential for loss exceeds the amount the Strategy has invested) and in these market conditions the effect of leverage will magnify losses. The Strategy 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 on this webpage may increase or decrease if converted into your local currency.

Important Information: This website is provided for the sole use of the intended recipient and is not a financial promotion. The Polar Capital Global Convertibles Strategy (the “Strategy”) is a Strategy of Polar Capital Funds plc which is authorised by the Central Bank of Ireland as an Undertaking for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. 352/2011), as amended. This website does not seek to make any recommendation to buy or sell any particular security (including shares in the Strategy) or to adopt any specific investment strategy. This website does not contain information material to an investor’s decision to invest in the Strategy. Shares in the Strategy 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.polarcapitalfunds.com. 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 Strategy. 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 Strategy’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 the future will be profitable or will equal performance of the securities. A list of all recommendations made within the immediately preceding 12 months is available upon request. This webpage is designed to provide updated information to institutional investors to enable them to monitor the Strategy. No other persons should rely upon it. The information provided on this webpage 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.

Benchmark: The Strategy is actively managed and uses the Refinitiv Global Focus Convertible Bond 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 Strategy invests. The performance of the Strategy 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 at https://www.refinitiv.com/en/financial-data/indices/convertible-indices. 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.

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 Strategy may elect to invest assets in different investment sectors from those depicted herein, which may entail additional and/or different risks. Performance of the Strategy is dependent on the Investment Manager’s ability to identify and access appropriate investments, and balance assets to maximize return to the Strategy while minimizing its risk. The actual investments in the Strategy may or may not be the same or in the same proportion as those shown herein.

Country Specific Disclaimers: When considering an investment into the Strategy, 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.

Regional

Thematic

Specialist

Global Convertibles Strategy

Aiming to provide income and growth from global convertible bonds

Strategy Overview

Investment Objective

Investment Philosophy

Key Facts

Strategy Availability

Management

David Keetley

Stephen McCormick

Jake Collins, CFA

Michael Provvisionato

David Keetley

David joined Polar Capital in October 2010 to establish the Global Convertibles team.

Stephen McCormick

Stephen joined Polar Capital in October 2010 and is co-manager of the Global Convertibles Strategy and the Convertibles Based Absolute Return Strategy.

Jake Collins, CFA

Michael Provvisionato

Risk Considerations

Consideration of UN SDG 8: Decent Work and Economic Growth

Applying norms-based and negative screens

1. Norms-based screening

2. Exclusions

Seeking positive alignment to our ESG framework

Sustainability inherent to our modelling process

Risk Considerations

Portfolio Exposure

Top 5 Positions (Net Exposure by LMV) (%)

Leverage (LMV/AUM)112.39%

Market Cap Underlying Stocks (%)

Maturity Distribution by LMV (%)

Currency Breakdown AUM (%)

Sector Exposure by LMV (%)Top Overweights & Underweights Relative to Index

Regional Exposure by LMV (%)

Polar Capital Global Convertibles Strategy

Refinitiv Global Focus Convertible Bond Index

Risk Considerations

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Terms and Conditions

Regional

Thematic

Specialist