Continental European Income Strategy

Generating income from stock-picking in continental Europe

Inception DateJune 2015
IndexMSCI Daily Net Total Return Europe Ex UK Index
US$305mAUM

AUM 30.09.2024

32Holdings
86.89%
i

Figures are representative and are used here for illustrative purposes only.

Active Share
As at 09/30/2024

Strategy Overview

Investment Objective

The Strategy’s investment objective is to deliver strong, long-term risk-adjusted returns to achieve both income and capital growth by investing in companies that are incorporated, headquartered, or exercise a significant part of their economic activities (greater than 20%) in European markets/countries (excluding the United Kingdom).

Investment Philosophy

The Portfolio Manager’s investment philosophy is based on taking advantage of entrenched behavioural inefficiencies. The team views time horizon to be the key source of market inefficiency. This is driven by two key factors – an excessive focus on short-term noise and failure to properly value the duration of excess returns and profits.

The investment approach is to invest in good companies that are out of favour for short-term reasons. Competition for capital is key within the concentrated portfolio approach. There are few truly mispriced stocks – these must be identified and held with conviction. The team only own stocks they view as attractive.

Key Facts

  • Clear investment philosophy focused on compounding power of dividend yield and growth
  • High conviction approach with 25‑50 positions
  • Disciplined, consistent, transparent and repeatable investment process
  • Bottom up stock selection with long term horizon

Strategy Availability

  • UCITS Fund
  • Separate Account

Management

None

Nick Davis, CFA

Portfolio Manager
None

Daniel Tse

Portfolio Manager
None

Raniyah Qureshi

Analyst

Nick Davis, CFA

Nick joined Polar Capital in September 2014 to set up the European Income team.

Prior to this, he was with Threadneedle where he managed the Threadneedle European Fund and Pan European Equity Dividend Fund, both of which were top quartile performers since inception. Nick was also deputy fund manager of the Threadneedle European Select Fund. Previously, he was a sell-side analyst at Sanford Bernstein and a chartered accountant with Deloitte.

  • BA (Hons) in Economics with French, University of Durham
  • Member of the Institute of Chartered Accountants in England and Wales. Investment Management Certificate (IMC) and CFA charterholder
  • 17 years

Daniel Tse

Daniel joined Polar Capital in June 2013. He works as a Deputy Fund Manager on the European Income team. His primary responsibilities are stock analysis and supporting the Lead Fund Manager.

  • BSc (Joint Hons) in Computer Science and Management, University of NottinghamMSc in Accounting and Finance, London School of Economics and Political Science
  • Currently studying for the Chartered Alternative Investment Analyst (CAIA), Passed CFA Level III
  • 11 years

Raniyah Qureshi

Raniyah joined Polar Capital in May 2018. She works as an analyst with the European Income team.

  • BA Hons in English (First Class) from Trinity College, University of Cambridge
  • Passed CFA level I
  • 6 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 Continental European Income 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 MSCI Daily Net Total Return Europe Ex UK 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 http://www.msci.com/. The benchmark is provided by an administrator on the European Securities and Markets Authority (ESMA) register of benchmarks which includes details of all authorised, registered, recognised and endorsed EU and third country benchmark administrators together with their national competent authorities.

Country Specific Disclaimers: When considering an investment into the 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.