Polaris Global Equity FundSeeking to uncover the world's most undervalued companies

What the Polaris Global Equity Fund aims to offer

Broad diversified exposure

To some of the world’s most undervalued companies across a range of industries, countries and market capitalisations

Unique brand of value investing

A strong focus on cashflow; the key indicator of value

Long-term returns

Potential for attractive performance

Fund facts
Investment objective The Polaris Global Equity Fund aims to achieve a long-term total return (before fees and expenses) that exceeds the MSCI World ex Australia Index, in $A unhedged with net dividends reinvested.
Benchmark MSCI World ex Australia Index, in $A unhedged with net dividends reinvested.
Portfolio managers Bernard Horn, Sumanta Biswas, Bin Xiao, Jason Crawshaw
Inception date 10 October 2014
Fund size $A179.4m (current as at 31 October 2018)
Management fee 1.28% pa of the net asset value of the Fund
Performance fee 0.00%
Minimum investment $A20,000
Distribution frequency Generally semi-annually
APIR code MAQ0838AU
Macquarie Professional Series The Polaris Global Equity Fund is proudly brought to you by Macquarie Professional Series. Learn more

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

Investment strategy

Polaris’s global value investment philosophy is based on two basic beliefs:

    (i) country and industry factors are important determinants of security prices, and
    (ii) global market fluctuations produce mispriced stocks.

Global markets have proven generally efficient over time, but investor behaviour creates volatility that can lead to inefficiencies. During these periods, the stock price may not reflect a company’s long-term fundamental valuation and/or future cash flows. The Polaris team seeks to buy such undervalued companies worldwide.

Bottom-up fundamental research comprises the vast majority of time spent in the investment process. The research process is driven by a worldwide search for undervalued common stocks of strong companies that are priced to provide the required rate of return. Fundamental research covers financial analyses of companies including in-depth review of financial statements, research on suppliers, customers and competitors and meetings with company management.

This bottom-up stock selection results in portfolio weightings across industry, country and market capitalisation that are a function of what Polaris believes are the most attractive value opportunities. Although there are no limits on the proportion of the fund’s assets that may be invested in companies located in any one country, Polaris seeks to achieve broad geographic diversification and typically invests in approximately 15 industries. The fund will generally hold between 65 and 100 securities of companies listed globally which may also include exposure to companies in emerging markets and small capitalisation companies.

Performance

Net returns as at 30 November 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Polaris Global Equity Fund** -2.33 -7.40 -1.50 -1.44 8.15 6.52 11.66
Benchmark*** -1.83 -6.62 2.02 4.23 12.08 8.23 12.58

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Past performance is not a reliable indicator of future performance.

* Inception date is 10 October 2014

** Total net returns are quoted after the deduction of all fees and expenses. Due to individual investor circumstances, your net returns may differ from the net returns quoted above

*** The benchmark is the MSCI World ex Australia Index, in $A unhedged with net dividends reinvested.

Managers

Bernard Horn
Sumanta Biswas
Bin Xiao
Jason Crawshaw

Meet the manager

08 July 2015

Polaris Capital Management has a single focus on global equities and applying their deep value investment philosophy. Sumanta Biswas provides some insights into Polaris’s highly skilled stock selection capability in value investing, proven over 20 years.

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:

Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated.

Market risk: Share markets can be volatile, and have the potential to fall by large amounts over short periods of time. The investments of the Fund are likely to have a broad correlation with share markets in general, and hence poor performance or losses in domestic and/or global share markets are likely to impact negatively on the overall performance of the Fund.

International investments risk: The fund invests in a range of international securities, and in companies that have exposure to a range of international economies. Global and country specific macroeconomic factors may impact the fund's international investments. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Such interventions may impact the fund's international investments.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Send us the Application Form and any required identification documents

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