September, 2023
• The Fund returned -2.43%, net of fees, in September 2023, compared with a return for the Benchmark of -4.01%, with the US Federal Reserve signalling the possibility of further interest rate increases and maintaining “high levels for longer”.
• Energy was the only sector to contribute to Benchmark performance for the month, with all other sectors detracting in unhedged terms. For the Fund, the largest relative sector contributors were holdings in Consumer Discretionary, such as eBay, and an overweight to the Health Care sector. Relative detractors included holdings in Financials, including AIA Group, and a lack of exposure to the energy sector.
• Takeda Pharmaceutical was among the top individual contributors to performance in September. The company has been supported by positive developments in its pipeline including positive topline results from a Phase 2b study for its treatment of active psoriatic arthritis. The share price was up modestly in local currency terms, which, against choppy equity markets, resulted in outperformance.
• NextEra Energy was among the top individual detractors from performance in September. Following the announcement of the sale of Florida City Gas to Chesapeake Utilities for $923 million (USD), NextEra Energy Partners, LP, a subsidiary of NextEra Energy, announced that it was lowering the limited partner distribution per unit growth rate to 5-8% through to 2026 versus previous guidance of 12-15%. The change was mainly driven by tight financial conditions that put pressure on the growth prospects of NextEra Energy Partners. Following the announcements, NextEra Energy’s stock price fell around 20% over 4 days. Mirova believe that the investment case of NextEra Energy is still valid in spite of the short-term challenges. NextEra Energy continues to be very well positioned to pursue the growth opportunities in both the unregulated renewable energy and regulated utility business in Florida. NextEra Energy has a strong track record on execution over more than a decade and a solid balance sheet. Its valuation has become very attractive after its recent selloff.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/205859676.pdfAugust, 2023
• The Fund returned -0.67%, net of fees, in August 2023, compared with a return for the Benchmark of 1.60%, with market activity remaining resilient in the US but softening in Europe and China, as a result of weak macroeconomic conditions.
• The IT, Health Care and Energy sectors made the largest contributions to a positive month for the index in unhedged terms. For the Fund, the largest relative sector detractors included holdings in Financials, such as Capital One Financial and Webster Financial, and holdings in Consumer Discretionary, including Canadian Tire, Sally Beauty Holdings and Crocs. Notable relative contributors included holdings in Energy, led by Marathon Petroleum.
• Horizon Therapeutics and Marathon Petroleum were among the top individual contributors in August. Shares in Horizon, which develops and commercialises orphan drugs, rose during the month after the US Federal Trade Commission (FTC) approved its acquisition by Amgen. During 2022, Amgen announced its intention to acquire Horizon for US$27.8 billion, but was subsequently blocked by the FTC over anti-competition fears. Last month the FTC and Amgen reached a deal allowing the acquisition to go through. With Horizon trading close to the acquisition price with limited upside potential, Polaris sold its position during the month. Marathon Petroleum reported earnings in early August, beating EPS estimates, with reported crude capacity utilisation at 93%, above guidance of 91%.
• Lundin Mining and Canadian Tire were among the top individual detractors in August. Shares in Lundin Mining fell following leadership departures that have interrupted the Toronto-based miner as it navigates a return to its Vancouver home territory. Three senior vice presidents on the executive leadership team are stepping down as the company approaches a September deadline to relocate its headquarters to Canada’s west coast. Canadian Tire's retail sales declined 0.1% in Q2 2023, impacted by softening consumer demand, particularly in Ontario, and a mix shift towards more essential and value offerings. Management withdrew its previous four-year (2022-2025) financial guidance, given the slowdown in retail.
• During the month, Polaris completed the final sales of Horizon Therapeutics, as noted above, and Carter’s Inc. Carter’s was sold on weaker infant population numbers and the shift in customer preferences regarding branded baby products.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/204370880.pdfJuly, 2023
• The Fund returned 3.66%, net of fees, in July 2023, compared with a return for the Benchmark of 2.09%, as value stocks outpaced their growth counterparts amid a rebound in Financials and Materials and relative slowdown in outsized technology sector gains.
• The Energy, Financials and Materials sectors led the market higher in July, amid a strong month for value investing. The largest relative sector contributors for the Fund included holdings in Financials, such as Webster Financial and Popular, and holdings in Materials, including Smurfit Kappa, Lundin Mining and Yara. Notable relative detractors included holdings in Communication Services, led by Interpublic Group.
• Webster Financial and Smurfit Kappa were among the top individual contributors in July. Despite seeing pressure on net interest margins and slight adjustments on guidance, Webster had robust growth in both loans and deposits. Investors were optimistic about the stock, positing even further improvement in the second half of 2023. Smurfit Kappa posted record first quarter earnings, driven by easing of input costs and resilient pricing levels, setting a positive outlook for the remainder of the year. The company is now setting its sights on wider expansion efforts in North Africa, after the launch of its first plant in Morocco. The market became bullish on Smurfit Kappa’s business cycle on the back of restocking demand projections over the next twelve months.
• Teleperformance and Interpublic Group were among the top individual detractors in July. Teleperformance scaled back guidance on top-line expectations for the second consecutive quarter. Margins held up, but the company noted a pullback in client spending, as focus rotated to leaner operations and lower fixed costs. Interpublic Group reversed full-year organic revenue guidance from 2-4% to 1-2%. The advertising holding companies saw spending drop among its notable technology and telecommunications clients, overshadowing net new business gains among other industry players.
• During the month, Polaris completed the final sale of Brookline Bancorp. Brookline had one of the highest loan-to-deposit ratios in the portfolio and, due to recent acquisitions, had more commercial real estate exposure than Polaris deemed appropriate. Polaris’ recent addition of Cullen Frost provided the opportunity to sell Brookline while maintaining the portfolio’s exposure to banks.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/203219118.pdfMay, 2023
• The Fund returned -2.13%, net of fees, in May 2023, compared with a return for the Benchmark of 1.18%, as investor enthusiasm for technology drove further disparity between growth and value performance year-to-date.
• The growth-oriented IT sector saw the only significant gains in May; most index sectors, led by Energy and Materials, moved lower. For the Fund, the largest relative detractors were an underweight to IT and holdings in Consumer Discretionary, such as Sally Beauty Holdings and Crocs. Relative contributors included underweights to Consumer Staples, Utilities and Real Estate.
• SK Hynix and MKS Instruments were among the top individual contributors in May. SK Hynix benefited from a number of tailwinds, including new investment powering the AI infrastructure buildout, troughing of the semiconductor cycle and market share leverage, as competitor Micron was banned as a supplier to the Chinese government. Despite a ransomware attack in February, MKS reported better than anticipated first quarter results with decent revenues from its electronics, packaging, and specialty industrial divisions. MKS also announced progress in the integration of Atotech, a chemical consumables company acquired in July 2021.
• Tyson Foods and Sally Beauty Holdings were among the top individual detractors in May. Tyson struggled with high input costs, primarily labour, that could not be fully offset with higher prices. While the company’s prepared foods business remained steady, its pork, chicken and beef businesses came under pressure. US beauty supply/hair colour retailer Sally Beauty reported modestly positive sales growth but lower margins, as wages increased for in-store employees. Sally Beauty’s high-touch sales expertise is a competitive differentiator making these investments necessary. Concerns about weakening consumer spending also weighed on shares.
• During the month, Polaris completed the initial purchases of Cullen/Frost Bankers, Tecnoglass, Teleperformance, and TotalEnergies. San Antonio-based Cullen/Frost is a leading independent bank in Texas. Founded in 1868, the bank has had 29 straight years of dividend increases. Its conservative culture is evidenced by its low loan-to-deposit ratio and ample liquidity, positioning itself for further profitable growth as peers pull back on lending. Tecnoglass is a US-listed Colombian architectural glass supplier for commercial and residential construction, primarily servicing the attractive US southeast market, including Florida and Texas. The company has a sizeable cost advantage on labour and energy, resulting in significant market share gains and sector-leading margins. Teleperformance is a global leader in customer interaction management, serving thousands of customers in 170 markets globally. Healthcare and financial services are their two largest verticals. TotalEnergies is adeptly navigating the transition from a traditional oil and gas company to an integrated energy company, comprising an upstream business that branches out into an LNG business with global reach and an enviable renewable energy portfolio. TotalEnergies recognised the opportunity to transition earlier than peers and is well positioned to serve the growing needs of the electric economy.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/201339465.pdfApril, 2023
The Fund returned 1.68%, net of fees, in April 2023, compared with a return for the Benchmark of 3.16%, with a benign month for global markets reflecting an environment of countervailing forces, including persistent inflation, tightening liquidity, and ongoing geopolitical risks, alongside a resilient labour market and surprisingly good corporate earnings.
• A rising market tide lifted all sectors in April, with Health Care and Financials contributing most to index returns. For the Fund, the largest relative detractors were holdings in Energy, led by Marathon Petroleum, and holdings in Health Care, which lagged the rise of the broader sector. These results were partially offset by holdings in Consumer Discretionary, including Bellway and Taylor Wimpey.
• Sallie Mae (SLM), Bellway and Vinci were among the top individual contributors in April. SLM reported a strong first quarter, following a disappointing Q4 where weakening credit trends led to an outsized provision. Credit performance has improved, loan growth was 12% and the company’s floating rate assets resulted in margin expansion. The UK housing market has seen a slight improvement as the spring selling season has progressed with prices remaining relatively steady, and in this environment, Bellway confirmed guidance for the full year with the expectation of lower volumes, but within market expectations. While most of the attention for Vinci is focused on their toll road concession business, the strength of its construction and electrical contracting segments was a positive surprise in the first quarter.
• Marathon Petroleum and Northern Trust were among the top individual detractors in April. Marathon Petroleum is producing record earnings due to wide refining margins, but concern about weaker gasoline and diesel demand led to profit taking by investors. Results at Northern Trust were pressured by expense growth and the expectation that its net interest margin will be pressured by higher deposit costs.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/200112012-1.pdfFebruary, 2023
• The Fund returned 2.52%, net of fees, in February 2023, compared with a return for the Benchmark of 2.09%, as the US Federal Reserve signalled its intention to keep interest rates higher for longer.
• Cyclical sectors including IT, Industrials and Financials supported the market in February, while Real Estate, Energy and Utilities lagged. The largest relative contributors to the Fund were holdings in Industrials, including SKF and Allison Transmission, and in Communication Services, led by Publicis Groupe. Holdings in IT, such as Intel and Samsung Electronics, and an underweight to the sector were the largest relative detractors.
• Publicis Groupe and SKF were among the top individual contributors in February. French advertising company Publicis released fullyear earnings, highlighting 2022 organic growth backed by its productive Epsilon and Sapient divisions. Seemingly resistant to macroeconomic concerns, the company laid out upbeat full year 2023 organic growth guidance, pointing to continued client investment in non-traditional marketing venues, such as data, technology, and digital transformation. Swedish bearing and seal manufacturer SKF reported strong fourth quarter 2022 results, signalling that the company caught up on the cost curve and is set to benefit from organic growth on pricing, mix, and volume. The company noted solid industrial and auto sector demand, specifically highlighting their ball bearing applications in the burgeoning electric vehicle (EV) marketplace.
• Lundin Mining and SLM were among the top individual detractors in February. Lundin Mining declined in lockstep with the overall mining industry. The downward trend was further aggravated by news that the Canadian firm’s copper reserves decreased, excluding the recently acquired Josemaria Resources project. SLM, a provider of education loans, reported lacklustre earnings with higherthan-expected provisions, elevated net charge-offs and a weak 2023 outlook.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/197836781.pdfDecember, 2022
The Fund returned -3.18%, net of fees, in December 2022, compared with a return for the Benchmark of -5.49%, with geopolitical conflicts and inflation proving to be the most pressing economic risks during the month.
Defensive sectors including Utilities and Consumer Staples outperformed in a month in which all market sectors moved lower. For the Fund, the largest relative contributors were holdings in Consumer Discretionary, including Crocs and Sally Beauty Holdings, and in IT, including OpenText and MKS Instruments, as well as an underweight to the latter. Holdings in Financials, led by Webster Financial, International Bancshares and M&T Bank, and an underweight to Utilities were the largest relative detractors.
Horizon Therapeutics and Crocs were among the top individual contributors in December. Shares in Horizon gained after Amgen announced its intent to acquire the company. The deal is valued at US$27.8 billion, which represented a 48% premium to Horizon’s stock price closing on 29 November 2022. Shoe and sportswear retailers, including Crocs, benefitted from NIKE’s upbeat guidance referencing better inventory controls. Concerns about post-pandemic sales and higher shipping costs have weighed on Crocs’ share price in recent months, yet the company’s most recent earnings report outlined robust sales both domestically and abroad.
Webster Financial, International Bancshares and M&T Bank were among the top individual detractors in December. Each company was among a handful of US banks that languished on lower-than-expected net interest margins and banking fees, while costs increased.
During the month, Polaris completed the initial purchases of MKS Instruments and Northern Trust, and the final sale of Brother Industries. MKS Instruments is a semiconductor equipment manufacturer dominant in material and photonic solutions. Northern Trust is a US trust and custodian bank with a sizeable wealth and investment management business. Brother Industries, a Japanese print manufacturer, was sold following supply chain challenges and slower retail/home ink sales as professionals transitioned back to commercial offices.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/195743253.pdfNovember, 2022
The Fund returned 4.62%, net of fees, in November 2022, compared with a return for the Benchmark of 2.02%, with investor risk appetite returning despite a weakening European economy and consumers across the world feeling the pinch of high inflation.
Most market sectors, with the exception of Energy, moved higher in November. For the Fund, the largest relative contributors were holdings in Consumer Discretionary, such as Crocs and Next, and in Health Care, including United Therapeutics and newly purchased Horizon Therapeutics. Holdings in Financials, led by Capital One Financial, were the largest relative detractors, partially offset by an overweight to the sector.
Crocs and Weichai Power were among the top individual contributors in November. Crocs recovered strongly following a significant de-rating due to concerns that pandemic tailwinds for their unique shoes had waned. While growth in core Crocs brand is slowing from its rapid pace, the recent acquisition of Hey Dude, a casual, lightweight shoe, is expected to drive the company’s next leg of growth. Chinese diesel engine manufacturer Weichai rallied after releasing its Q3 results and benefitted from investor expectations that orders for heavy duty trucks in China have reached a cyclical low.
Brother Industries and Sally Beauty Holdings were among the top individual detractors in November. Shares in Japanese printer manufacturer Brother Industries were weaker as supply chain challenges impacted profits and demand for consumable ink fell. The weakness in ink demand can be attributed to the work-from-home phenomenon moderating to some extent. Quarterly same-store sales at haircare product retailer Sally Beauty were flat, with the company citing “inflationary pressures and supply chain headwinds”. The company plans to close about 10% of their Sally Beauty locations as they continue to shift to the omnichannel retail model.
During the month, Polaris completed the initial purchases of Horizon Therapeutics and Interpublic Group. Global biotechnology company Horizon manufactures Tepezza, targeting thyroid eye disease, and Krystexxa for the treatment for gout. Tepezza is already a multi-billion-dollar product and Krystexxa has the potential to be meaningful as well. Interpublic, which provides advertising and marketing services, has historically been too expensive for Polaris’ value discipline, but recent significant share price falls presented a good entry point.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/193661748.pdfOctober, 2022
The Fund returned 9.30%, net of fees, in October 2022, compared with a return for the Benchmark of 7.81%, as major economy central banks continued to either raise rates or guide to ongoing rate rises to combat inflation.
Positive performance in all market sectors, led by Energy and Industrials, drove the index higher in October. The largest relative contributors for the Fund were holdings in Consumer Discretionary, such as Magna International and Inchcape, and in Financials, such as Webster Financial and JPMorgan Chase. Holdings in IT, which lagged the rise of the broader sector, and an underweight to Energy were notable relative detractors.
NOV and Elevance Health were among the top individual contributors in October. NOV, the US based supplier of upstream energy equipment and services, reported decent results, with CEO Clay Williams noting that “the petroleum industry’s ability to ramp activity quickly to respond to the emerging energy shortage remains limited by, among other factors, availability of the technology and the equipment we provide.” US health insurer Elevance Health reported double-digit growth in revenues, operating earnings, and adjusted earnings per share driven by mid-single digit membership growth and premium increases.
Kia Corporation and M&T Bank were among the top individual detractors in October. Volumes, sales and profits of South Korean auto maker Kia fell in the third quarter. Price increases could not offset higher costs and the company made extra provisions for recalls. While US-based M&T Bank announced decent gains in net operating income for the second quarter and year-on-year, the company missed estimates, with net interest income and fee income both below expectations and loan loss provisions higher than anticipated.
During the month, Polaris completed the initial purchase of Ahold Delhaize and the final sales of Asahi Group, BASF, Cinemark, FedEx, HeidelbergCement, Solvay and Warner Bros. Discovery. Ahold Delhaize is the owner of the leading supermarket chains in Belgium and the Netherlands, and several chains in the US. It is a well-run company with industry leading margins and excellent capital allocation policy. Most of the proceeds from the sales were used to add to existing portfolio companies in which Polaris has greater conviction.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/192536836.pdfSeptember, 2022
• The Fund returned -4.13% in September 2022, compared with a return for the Benchmark of -3.23%, as central banks around the world pushed interest rates higher to fend off inflation. The US Federal Reserve, the Bank of Canada and European Central Bank all raised rates by 75 basis points, and the Bank of England and Reserve Bank of India raised rates by 50 basis points.
• Negative performance in all market sectors except Health Care led to index declines in September. The Fund’s largest relative detractors were holdings in Consumer Discretionary, such as LG Electronics and Kia, and in Industrials, such as FedEx and Weichai Power. Holdings in Financials, such as International Bancshares and Hannover Re, and in Communication Services, including Publicis Groupe and Ipsos, were notable relative contributors.
• Marathon Petroleum and International Bancshares were among the top individual contributors in September. Record high refining margins boosted profits for Marathon, which is also using excess cash for stock buybacks. A rising rate environment boosted US regional banks such as International Bancshares, which expanded net interest margins despite higher funding costs.
• FedEx and Weichai Power were among the top individual detractors in September. Global package delivery operator FedEx missed earnings expectations due to volume decline across all three divisions – Express, Ground, and Freight. In particular, operating income in the Express business declined materially. FedEx raised prices in all three divisions but profits disappointed on the back of declining volume and cost headwinds. Weichai Power declined as heavy-duty truck market sales fell, along with its profits, on the back of continued Covid lockdowns in China. Its overseas subsidiary, KION Group, also issued a profit warning.
• There were no initial purchases or final sales within the portfolio during the month.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/191770647.pdfJuly, 2022
The Fund returned 3.92% in July 2022, compared with a return for the Benchmark of 6.40%, with equity markets looking through various economic headwinds to the possibility of slowing interest rate hikes and inflation in the coming months. • Positive performance in all GICS sectors drove equity markets higher in July, with IT and Consumer Discretionary contributing most. The largest relative detractors for the Fund were holdings in IT, which lagged the rise of the broader sector, holdings in Materials, such as Lundin Mining and Methanex, and an underweight and overweight to those sectors, respectively. Holdings in Communication Services, such as Cinemark and Publicis Groupe, were a notable relative sector contributor.
• Crocs and Cinemark were among the top individual contributors in July. Footwear company Crocs rose as investors returned to the name following its previous sell-off. Polaris are looking to the company’s Q2 earnings results and commentary to see if management still sees strong demand from both the Crocs brand and the newly acquired HeyDude brand. Cinema operator Cinemark traded higher on the backdrop of better-than-expected box office at the top end of the range.
• Lundin Mining and Fresenius were among the top individual detractors in July. Lundin posted Q2 results which missed consensus guidance on EBITDA, cut production guidance, and increased estimated cash costs and capital spending. Health care provider Fresenius continues to face headwinds in excess mortality related to COVID-19, labour cost inflation, and problems with the shortage of trained nurses. During the month, Fresenius released Q2 results with management cutting the 2022 outlook and withdrawing 2025 financial targets. The new CEO will launch a new restructuring plan to help improve margins.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/189766715.pdfJune, 2022
The Fund returned -6.49% in June 2022, compared with a return for the Benchmark of -4.64%, with global equities impacted by the measures of central banks worldwide to raise interest rates in an effort to curb inflation. The US Federal Reserve lifted interest rates by 0.75%, the Bank of England also raised its key interest rate and the European Central Bank hinted it may do so in its July meeting. • Defensive market sectors, namely Health Care and Consumer Staples, were the sole contributors to index returns in June. The largest relative detractors for the Fund were holdings in Financials, including Bancolombia and Capital One Financial, an overweight to Materials, and holdings in Consumer Discretionary, such as Sally Beauty and Kia Corporation. Holdings in Industrials, such as FedEx, were the largest relative sector contributor.
• United Therapeutics, AbbVie and UnitedHealth Group were among the top individual contributors in June. The US health care sector broadly remained in positive territory across the month. Additionally, UnitedHealth’s UK division agreed to pay £1.24bn to acquire EMIS Group in an all-cash deal. EMIS provides healthcare software, IT, and other services in the UK. • Bancolombia and Lundin Mining were among the top individual detractors in June. Shares in Bancolombia moved lower after leftist candidate Gustavo Petro won the Colombian presidential election on a platform to wean the country off its reliance on raw materials and increase taxes on the wealthy. Lundin was impacted by recession concerns that caused commodity prices including copper to drop sharply during the month. Lundin also completed the acquisition of Josemaria Resources, but shares dipped on projected capital expenditures.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/188914710.pdfMay, 2022
The Fund returned 1.91% in May 2022, compared with a return for the Benchmark of -0.83%, with global markets stabilising across the month despite soaring energy prices and indications of further economic weakness.
• Most market sectors fell in May, led by IT and Consumer Discretionary, with Energy and Financials noteworthy contributors to index returns. For the Fund, holdings in IT, including Catcher Technology and Avnet, and an underweight to the sector, as well as overweight positioning and holdings in Financials, such as Bancolombia, were the largest relative contributors. An underweight to Energy was the largest relative sector detractor.
• United Therapeutics and Marathon Petroleum were among the top individual contributors in May. United Therapeutics received US FDA approval in May for Tyvaso DPI (dry powder inhaler) in treating pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. This approval extends their existing franchise and creates a greater barrier against competitors. Marathon is benefitting from record refining margins as the shortage of Russian crude oil is tightening availability of gasoline and diesel on a global basis.
• Crocs and Publicis Groupe were among the top individual detractors in May. Although Crocs reported good earnings, the company’s valuation de-rating has not abated as investors remain bearish on consumer stocks. The retail environment has certainly slowed from the heady days of the stimulus-driven boom and many consumer companies are now priced for a significant recession. Publicis fell in sympathy with many of the advertising houses after Snap warned of a material slowdown in online advertising. The combination of a weaker consumer and changes in privacy and data access regulations is impacting the sector.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/187689011.pdfApril, 2022
The Fund returned -0.39% in April 2022, compared with a return for the Benchmark of -3.17%, as global trade contracted due to continued supply chain disruptions, higher commodity prices and an overall decline in equity markets as additional rate hikes were priced in to temper rising inflation.
• IT, Consumer Discretionary and Communication Services were among the largest detractors from index performance in April. For the Fund, these same sectors were the largest relative contributors owing to stock selection, with Kia of particular note. Consumer Staples were the largest relative detractor, due to both underweight positioning and stock selection, namely Nomad Foods.
• Kia and Amcor were among the top individual contributors for the month. Kia, a South Korean automobile manufacturer, reported higher overseas car sales for March compared to 2021. Investors were also satisfied with the latest month-end earnings, noting the company’s ability to increase its average selling price for its small segment models, despite supply chain shortages. Amcor, a global consumer packaging company, announced it would purchase ExxonMobil’s Exxtend technology to increase the amount of recycled content in its packaging. The company also has the ability to recover input cost inflation via higher prices.
• Discovery and Nomad Foods were among the top individual detractors from performance in April. Discovery’s acquisition of Warner Media from AT&T closed at the beginning of April. The newly formed communication services company, Warner Bros Discover, was the top individual detractor, likely due to market selling post completion of the merger. Nomad Foods, a leading frozen foods company, declined as the market anticipated management may shift its input exposure, as it sources a portion of its fish from Russia. Although the company can continue sourcing from the region, input costs are likely to increase and this near-term distraction may damper Nomad’s future growth prospects into eastern Europe
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/186802058.pdfMarch, 2022
• The Fund returned -5.01% in March 2022, compared with a return for the Benchmark of -0.89%, as inflation remained elevated, fuelled by fiscal spending, supply chain issues, and higher commodity prices caused by the conflict in Ukraine.
• Financials, Consumer Staples and Communication Services were among the largest detractors from index performance in March. The largest relative detractors for the Fund on a sector basis were holdings in Consumer Discretionary, including UK homebuilders Bellway and Taylor Wimpey, and holdings in Materials, such as BASF. Notable relative contributors included holdings in Health Care, including Jazz Pharmaceuticals and AbbVie.
• Marubeni and Bancolombia were among the top individual contributors to performance in March. Marubeni, a Japanese trading company, raised its full year guidance by ¥50 billion compared to previous forecasts, due to robust operations across its agriculture, energy, and metals and mining businesses. The company also raised dividends and announced a share buyback of up to ¥30 billion in 2022. Bancolombia reported strong earnings in late February with non-performing loans improving, net interest margins expanding, and digital banking Nequi reaching 10 million users.
• Alrosa and Capital One Financial were among the top individual detractors from performance in March. The Moscow Stock Exchange remained closed throughout March to avoid the impact of global sanctions following the Russian invasion of Ukraine. The Fund’s position in Alrosa, a Russian diamond miner, was revalued to nil during the month and the investment manager team intends to divest the position when restrictions are lifted. The Responsible Entity continues to closely monitor the market situation to ensure an appropriate valuation is applied to this holding. Capital One Financial, a US-based credit card and auto financing company, was impacted by concerns around consumer confidence, a potential economic downturn, and stagflation. Although credit card and auto loan growth are increasing and delinquencies remain well below historical levels, there is growing concern over a worsening consumer credit cycle with stimulus checks and deferral programs ending.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/185954796.pdfFebruary, 2022
The Fund returned -3.82% in February 2022, compared with a return for the Benchmark of -5.52%, with the sector rotation from growth to value continuing in the face of expected increases in interest rates and higher inflation, the latter further fuelled by the conflict between Russia and Ukraine.
• The Energy sector was the sole positive contributor for the index in February, with the growth-dominated IT and Consumer Discretionary sectors leading declines. For the Fund, the largest relative contributors on a sector basis were holdings in Financials, such as M&T Bank and flatexDEGIRO, and holdings in Communication Services, particularly Cinemark. Relative detractors included holdings in Health Care, including United Therapeutics, and holdings in Consumer Discretionary, such as Crocs and Michelin. • Methanex and Lundin Mining were among the top individual contributors to performance in February. Methanol producer Methanex reported its strongest operational and financial performance in its history in the fourth quarter, as strong market conditions supported high methanol prices while cost pressures from higher natural gas and coal prices led to restrictions in methanol industry production. Lundin Mining took advantage of a favourable base metal price environment to set many all-time financial records in 2021. Production of all metals met or exceeded the company’s most recent annual production guidance.
• Alrosa and United Therapeutics were among the top individual detractors from performance in February. Russian diamond miner Alrosa fell during the month primarily due to the Russia-Ukraine conflict. As at the end of the month, shortly after the closure of the Russian stock exchange, the position in Alrosa represented 0.41% of the Fund and has since been revalued to zero. Alrosa is the only direct Russian exposure in the Fund.. US-based biotechnology company United Therapeutics recently received an information request letter from the US Food and Drug Administration (FDA) requesting additional information regarding the pulmonary safety of its Tyvaso Dry Powder Inhaler. The company responded to the information request; however, the FDA has considered this response to be a major amendment to the NDA, extending the FDA’s review deadline to May 2022.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/185019030.pdfJanuary, 2022
The Fund returned 1.69% in January 2022, compared with a return for the Benchmark of -2.20%, with a market rotation out of growthdominated sectors in favour of value dragging on overall market performance.
• Traditional value sectors, led by Energy and Financials, moved higher in January, at the expense of the growth-dominated IT and Health Care sectors. For the Fund, the largest relative contributors on a sector basis were holdings in Financials, such as Popular, and an overweight to the sector, and holdings in Materials, including Methanex and BASF. Relative detractors included underweight positioning in Energy, and holdings in Utilities, namely NextEra Energy.
• Discovery and Marathon Petroleum were among the top individual contributors to performance in January. Discovery rose strongly after an analyst upgrade on the potential, following its merger with WarnerMedia, for the combined entity to create a “global media powerhouse” and “highly achievable” synergy target of $3 billion. Marathon gained on market sentiment surrounding capacity rationalisations, strong demand recovery, slow capacity addition, and low inventory among US refiners. The company also announced that refining margin had doubled from a year ago after the month end.
• Crocs and Bellway were among the top individual detractors from performance in January. Crocs announced it expects record 2021 revenue, with around 67% growth compared to 2020. However, after outperforming since the onset of the pandemic, the stock has come down sharply since hitting its peak last year. Shares in UK housebuilder Bellway declined following news that the UK government may ask the industry to pay an additional cost of £4 billion for the remediation of unsafe cladding.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/183936952.pdfDecember, 2021
The Fund returned 2.85% in December 2021, compared with a return for the Benchmark of 1.68%, with the market rally capping off a strong 2021 despite pandemic headwinds, supply chain challenges, and interest rate uncertainty.
• Health Care was the largest contributor to index performance in December, while defensive sectors such as Consumer Staples and Utilities saw strong returns. For the Fund, the largest relative contributors on a sector basis were holdings in IT, such as SK Hynix, and in Consumer Discretionary, led by LG Electronics. Relative detractors included holdings in Materials, such as BASF and Alrosa, and in Industrials, namely SKF and Vinci.
• Coca-Cola Europacific Partners (CCEP) and United Therapeutics were among the top individual contributors to performance in December. CCEP, digesting the acquisition of Coca-Cola Amatil in Australia, gained 13% for the month as management provided proforma financial targets. While cash flow is expected to grow meaningfully in the next few years due to cost cutting, Polaris believe this is already discounted in the share price and used the strength as an opportunity to exit the position. United Therapeutics’ resubmission of its combination drug-device product Tyvaso DPI, used to treat pulmonary hypertension, for US Food and Drug Administration review was favourably received by the market, and is expected to be approved by mid-2022.
• Crocs was among the top individual detractors from performance in December. The company had a tough month as concerns that the brand was peaking were compounded by a fairly large, unexpected acquisition. The company is acquiring Hey Dudes, a casual footwear company that, like Crocs, has a loyal customer following. Management explained the deal as the combination of two high-growth, unique offerings on reasonable financial terms, although it is clear the market will need more evidence of the benefits of the combined entity.
• During the month, Polaris completed the initial purchase of FedEx, and the final sales of Allete, CCEP, KT&G Corporation and Siam Commercial Bank, each on valuation grounds. FedEx is a market leader in logistics and transport for e-commerce. The stock had derated to an attractive valuation over concerns around labour availability and inefficiencies in their air freight business. Polaris believe both of these issues are manageable and present an attractive entry point for a company with a nice secular tailwind.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/182477828.pdfNovember, 2021
The Fund returned -1.62% in October 2021, compared with a return for the Benchmark of 1.65%, as an elevated inflationary environment saw markets price in a higher probability of rising interest rates by the end of 2022.
• Increased consumer demand, as well as higher commodity and input costs, resulted in a continued inflationary environment in October. Most market sectors moved higher, with Communication Services and Consumer Staples the only exceptions. For the Fund, the largest relative detractors on a sector basis were holdings in IT, including Brother Industries and Intel, and an underweight to the sector, as well as holdings in Consumer Discretionary, such as Honda. Positive relative contributors included holdings in Materials, namely Lundin Mining, and in Health Care, such as Anthem and UnitedHealth Group.
• Lundin Mining and Crocs were among the top individual contributors to performance in October. The third-quarter earnings of Canadian materials company Lundin were bolstered by an increase in copper prices, resulting in higher year-to-date cash flow. Footwear company Crocs reported strong quarterly sales and operating margins, despite facing global supply chain disruptions. • Brother Industries and Cineworld were among the top individual detractors from performance in October. Brother Industries fell as the positive work-from-home sentiment waned. Cineworld was impacted by lower market expectations for box office performance going forward, as well as an ongoing court case with Cineplex over its failed takeover bid, and increased short interest in the stock, all despite the company’s CEO stating it expects to return to pre-pandemic earnings in the fourth quarter of 2021.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/181057121-1.pdfOctober, 2021
The Fund returned -1.07% in September 2021, compared with a return for the Benchmark of -3.05%, as global equity markets moved lower on investor concerns around inflation and rising yields.
• With the exception of Energy, all sectors made a negative contribution to market returns in September. For the Fund, the largest relative sector contributors were holdings in Financials, led by Siam Commercial Bank, and an overweight to the sector, as well as holdings in Communication Services, namely Cinemark. These results were partially offset by holdings in Consumer Discretionary, including Taylor Wimpey.
• Cinemark and Methanex were among the top individual contributors to performance in September. US theatre operator Cinemark continued to perform well as US domestic cinema activity continued to gain traction amid declining new COVID cases, the ongoing vaccine rollout, and a strong line-up of film content. Canadian methanol producer Methanex is benefiting from strong methanol prices as a result of solid global demand, persistent supply interruptions and delays, and surging global feedstock costs. In addition, the company announced a 5% share repurchase program in September.
• United Therapeutics and Taylor Wimpey were among the top individual detractors from performance in September. Shares in United Therapeutics fell ahead of an announcement by the US FDA regarding United’s new device launch for Tyvaso, the Dry Powder Inhaler (DPI), which delivers the medication in a powder formulation instead of an aerosol. UK homebuilder Taylor Wimpey fell on the backdrop of a deceleration of house-price inflation, with UK house asking prices flat over the past two months.
• During the month, Polaris completed the initial purchase of Alrosa, a world-leading Russian rough diamond producer. Rough diamonds have entered into a favourable cycle with rising average selling prices, strong demand, and limited new supply entering the market. Alrosa operates in a duopoly industry structure along with De Beers, in which the two companies control about two-thirds of the global rough diamond market. Alrosa is extremely shareholder friendly with almost the entirety of its free cash flow being paid out as dividends.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/180201237.pdfSeptember, 2021
The Fund returned -1.07% in September 2021, compared with a return for the Benchmark of -3.05%, as global equity markets moved lower on investor concerns around inflation and rising yields.
• With the exception of Energy, all sectors made a negative contribution to market returns in September. For the Fund, the largest relative sector contributors were holdings in Financials, led by Siam Commercial Bank, and an overweight to the sector, as well as holdings in Communication Services, namely Cinemark. These results were partially offset by holdings in Consumer Discretionary, including Taylor Wimpey.
• Cinemark and Methanex were among the top individual contributors to performance in September. US theatre operator Cinemark continued to perform well as US domestic cinema activity continued to gain traction amid declining new COVID cases, the ongoing vaccine rollout, and a strong line-up of film content. Canadian methanol producer Methanex is benefiting from strong methanol prices as a result of solid global demand, persistent supply interruptions and delays, and surging global feedstock costs. In addition, the company announced a 5% share repurchase program in September.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/179774104.pdfAugust, 2021
The Fund returned 2.42% in August 2021, compared with a return for the Benchmark of 3.10%, with global equity markets achieving a further consecutive month of gains.
• All GICS sectors with the exception of Energy moved higher in August. For the Fund, the largest sector detractors on a relative basis were holdings in IT, which lagged the rise of the broader sector, and an underweight to the sector, as well as holdings in Materials, including Lundin Mining and Lanxess, and an overweight to the sector. These results were partially offset by overweight positioning and holdings in Financials, such as Bancolombia.
• United Therapeutics and Babcock International were among the top individual contributors to performance in August. United Therapeutics beat analyst estimates for both revenue and earnings for the second quarter, and the company continued its expansion of Tyvaso into new applications beyond pulmonary arterial hypertension. Babcock International, which provides engineering support services to the UK defence sector, bounced back after reassuring the market in its annual results announcement that it does not need to raise equity, and is expecting improved sales growth.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/178792962.pdfJune, 2021
The Fund returned -0.04% in June 2021, compared with a return for the Benchmark of 4.71%, as market fears of a sustained surge in inflation tempered, to the detriment of value stocks.
• After several quarters of value outperforming growth, this trend reversed sharply in June. The primary driver was a shift in tone from the US Federal Reserve, which guided a path towards future monetary tightening, albeit still very accommodative by almost any measure. Most GICS sectors moved higher, led by IT, while Financials and Materials declined. For the Fund, the largest relative sector detractors were an underweight to IT and the absence of index heavyweights Apple and Nvidia from the portfolio, as well as an overweight to Financials.
• Crocs and Microsoft were among the top individual contributors to performance in June. Crocs continues to exceed expectations as demand for their comfortable footwear is exceptionally strong. Working from home, outdoor living, children and medical professionals are all key drivers. Margins are robust, supporting accelerated investment in distribution centres, marketing and expansion in future key geographies such as China. For Microsoft, the secular trend of digital transformation and cloud adoption continues to be a persistent tailwind.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/174342128.pdfMay, 2021
The Fund returned 2.26% in May 2021, compared with a return for the Benchmark of 1.19%, with investor enthusiasm around a strong global macroeconomic backdrop driving equity markets higher.
• The value component of the market continued to perform well in May, and cyclical GICS sectors, including Energy, Financials and Materials saw the largest gains. The largest relative sector contributors for the Fund were holdings in Consumer Discretionary, such as Kia Corporation and Next, and in Communication Services, including LG Uplus and Cinemark. Holdings in Materials, namely Antofagasta, and in Financials, such as Svenska Handelsbanken, were the largest relative detractors, partially offset by overweights to both sectors.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/173009927.pdfApril, 2021
The Fund returned 1.96% in April 2021, compared with a return for the Benchmark of 3.18%, as equity markets posted another strong result driven by investor optimism around a stimulus-driven economic recovery.
• All GICS sectors, with the exception of Energy, continued their positive climb in April, with Communication Services, Real Estate, and Information Technology rising most. For the Fund, the largest relative sector detractors were holdings in Information Technology, chiefly Intel, as well as holdings in Financials, including Webster Financial and Bancolombia. Holdings in Health Care, namely United Therapeutics, and in Industrials, such as Andritz and Babcock International, were the largest relative contributors.
• Crocs and United Therapeutics were among the top individual contributors to performance in April. Crocs reported record first quarter earnings, driven by sales in the digital channel, Americas, and direct-to-consumer, and its 2021 guidance was also raised. United Therapeutics rose on the news the company, along with their global collaborator MannKind, had submitted Tyvaso DPI to the FDA for approval.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/171516238.pdfMarch, 2021
The Fund returned 5.29% in March 2021, compared with a return for the Benchmark of 5.09%, as investor optimism around the level of fiscal and monetary stimulus drove global equities higher across the month. All sectors moved higher in March, led by Utilities and Consumer Staples, as economic recovery hopes outweighed market concerns over inflation and rising bond yields. Capital rotation from expensive high growth stocks to value companies continued. For the Fund, the largest relative sector contributors were an underweight to Information Technology and holdings in the sector, including Arrow Electronics, as well as holdings in Health Care, including Anthem. Holdings in Industrials, namely Weichai Power, were again the largest relative detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/170122556.pdfFebruary, 2021
The Fund returned 5.15% in February 2021, compared with a return for the Benchmark of 1.64%, with a strong cyclical sector rebound driving global equities higher across the month.
The market rotation from high growth and expensive stocks into those cheaper cyclicals more geared towards an economic recovery continued in February. The Energy sector and Financials moved higher, while Utilities and Consumer Staples detracted. Against this backdrop, the largest sector contributors to the Fund’s relative performance were an overweight to Financials, and holdings in Consumer Staples, including Greencore Group, and in Materials, such as Antofagasta. Holdings in Industrials, such as SAIC, were the largest relative detractors.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/167980628.pdfJanuary, 2021
The Fund returned 1.54% in January 2021, compared with a return for the Benchmark of -0.45%, with global equities recording a subdued start to the year against a backdrop of economic uncertainty.
• Most sectors moved lower in January, with the notable exceptions of Energy, as oil prices climbed across the month, and Health Care. For the Fund, the largest sector contributors to relative performance were holdings in Consumer Discretionary, including KIA Motors and Hyundai Mobis, and in Industrials, such as Weichai Power. Holdings in Materials, in particular Methanex, were the largest relative detractors for the month.
• Weichai Power and KIA Motors were among the top individual contributors to performance in January. Weichai, a Chinese manufacturer of engines for heavy vehicles, rose sharply following heavy truck sales hitting another record high in January 2021. Shareholders also approved a proposed capital raising to invest in hydrogen fuel cells, high-end China 6 engines, large diameter industrial engines, and hydraulic powertrain. Weichai’s parent company also bought a majority stake in a large agricultural equipment producer, which may use Weichai’s engines. KIA Motors rose as the company reported a record fourth quarter operating profit. KIA was also boosted by speculation during that month that Apple, the US-based technology giant, may partner up to build electric vehicles.
• Methanex and Babcock International were among the top individual detractors from performance in January. Methanex suffered from reduced gas supply to its Titan plant in Trinidad, which remains idled. Babcock moved lower with earnings likely to be hit by lockdowns in the fourth quarter of 2020; the company expects a negative impact on profit and its balance sheet from the early results of the evaluation by its new management team.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/165061083.pdfDecember, 2020
The Fund returned 2.22% in December 2020, compared with a return for the Benchmark of -0.50%, with a rising Australian dollar offsetting what proved to be another strong month for global equities.
• While certain aspects of economic activity remain constrained by COVID-19, and countries struggle with second and third waves of the virus, a number of factors continued to fuel stock prices, including the deployment of vaccines, near-zero interest rates, and aggressive government stimulus and support measures. For the Fund, the largest sector contributors to relative performance were holdings in Financials, including Bancolombia and Popular Inc., and in Information Technology, such as Samsung Electronics. Holdings in Energy were the sole, minor relative detractor for the month on a sector basis.
• Signature Aviation and Bancolombia were among the top individual contributors to performance in December. An operator of private aviation facilities, Signature rose following the disclosure of a potential buyout offer from a private equity firm. The company has had multiple approaches from various parties given its strong market share in these infrastructure assets. Bancolombia recovered most of 2020’s lost ground due to the combination of Moody’s rating affirmation and the expectation of an economic recovery in Colombia. Additionally, it is likely that provisions for credit losses peaked in the company’s third quarter earnings report.
• Babcock International and Hannover Re were among the top individual detractors from performance in December. Babcock reported challenging half-year results, with social distancing measures affecting the company’s operational efficiency in fulfilling maintenance activities for the UK government, and helicopter support services remaining depressed. Hannover Re’s third quarter results were impacted by COVID-19 provisions, with elevated claims in the Life and Health segment offsetting better Property and Casualty results.
• During the month, Polaris completed the initial purchases of Cinemark and Honda, and the final sale of Infosys, which was sold to fund the new additions. Cinemark is the third largest US movie theatre operator, with roughly 75% of its business in the US and 25% in South America. Through conservative balance sheet management, the company is well positioned to ride out the pandemic and consolidate market share post-COVID. While better known for their auto business, Honda have a highly profitable and dominant motorcycle and scooter franchise, and emerging markets are a source of growth, as two wheelers remain an affordable mode of transportation.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/163537537.pdfNovember, 2020
The Fund returned 12.49% in November 2020, compared with a return for the Benchmark of 7.43%, with growing optimism over the deployment of a COVID-19 vaccine driving developed markets to their strongest monthly return since July 2013.
• Following the release of three separate, positive sets of COVID-19 vaccine efficacy results, November gave some light into a sea of change in the market, lifting some of the most beaten-down stocks for the year, and contributing to a strong month for the portfolio. All market sectors were higher for the month. For the Fund, the largest sector contributors to relative performance were holdings in Materials, including Methanex and Solvay; Consumer Discretionary, such as Taylor Wimpey and Tapestry; and Communication Services, such as Cineworld. The only relative detractors of note were the Fund’s holdings in Energy, which lagged the rise of the wider sector.
• Taylor Wimpey, Methanex and Solvay were among the top individual contributors to performance in November. UK homebuilder Taylor Wimpey rose strongly after management announced their 2021 profit expectations, beating the top end of consensus. Methanex maintained its strong momentum as Methanol spot prices continued to improve from end demand recovery, oil price recovery, and continued supply outages. Solvay released earnings and beat on free cash flow and profits. The earnings beat was attributable to the specialty polymer segment, as a result of a recovery in the automotive market.
• CVS Health was among the top individual detractors from performance in November. A new addition to the portfolio, CVS Health, a US healthcare company and pharmacy operator, was one of only a handful of individual detractors during the month after Amazon announced the launch of Amazon Pharmacy. Amazon's involvement in the delivery of prescriptions is not new and was widely expected following their acquisition of Pillpack in 2018. CVS Health was purchased on the thesis the company will deliver efficient and effective management of their customers' health benefits through their integration with Aetna.
• During the month, Polaris completed the initial purchase of CVS Health, as mentioned, and the final sale of Hewlett-Packard Enterprise, based on the structural challenges facing the commercial printing market, particularly post-COVID.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/162268815.pdfOctober, 2020
• The Fund returned 2.13% in October 2020, compared with a return for the Benchmark of -1.13%, with key European markets moving lower as COVID-19 cases in the region soared.
• Most market sectors saw declines in October, including Energy, following a further fall in oil prices, and Information Technology; Utilities and Communication Services moved higher. For the Fund, the largest sector contributors to relative performance were holdings in Consumer Discretionary, including Tapestry and Crocs, as well as holdings in Financials. The largest relative detractors were the Fund’s holdings in Communication Services, largely driven by Cineworld, as well as an underweight to the sector.
• Tapestry and Crocs were among the top individual contributors to performance in October. Tapestry announced its new CEO and signalled that it was ready to move forward with the company’s strategic agenda. Third quarter earnings proved Tapestry is on the right track, with an increase in revenue across its three brands – Coach, Kate Spade, and Stuart Weitzman. Footwear manufacturer Crocs reported record revenues, supported by a 23% increase in direct-to-consumer sales, and launched a new marketing campaign featuring musician Justin Bieber.
• Intel and Cineworld were among the top individual detractors from performance in October. Investors worried about Intel’s competitors cutting into its market share, and possibly engaging a third-party foundry for its next generation of chips. Despite this, Intel exceeded its quarterly revenue expectations. Cineworld fell sharply as a result of sustained operational pressures from the COVID-19 pandemic, with the company announcing the temporary closure of all operations at its 536 Regal theatres in the US and 127 Cineworld theatres in the UK. Polaris continues to communicate with management and views the company as a long-term holding that will rebound post-pandemic.
• During the month, Polaris completed the initial purchase of Berry Global, a US-based plastic packaging manufacturer, and Williams Companies, a US gas pipeline and midstream business. Polaris also completed the final sales of Dometic Group, Imerys and Wesco International, on valuation grounds.
File: https://commentary.quantreports.net/wp-content/uploads/2020/12/160483264.pdfticker: MAQ0838AU
commentary_block: Array
factsheet_url:
https://investmentcentre.moneymanagement.com.au/factsheets/mi/kx8d/macquarie-polaris-global-equity
release_schedule: Monthly
fund_features:
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). The Fund is actively managed using a, fundamental, research driven approach to build a diversified portfolio of companies that Polaris believes: demonstrate strong, sustainable, cash flow generation; and are priced at a meaningful discount to their intrinsic value.
- Provides exposure to a diversified portfolio of global equities which may include emerging markets and small-capitalisation companies.
- Typically holds 65 – 85 stocks in the portfolio.
- For minimum 7 year investment timeframe suggestion.
- The fund may hold cash by no more than 10%.
manager_contact_details: Array
asset_class: Foreign Equity
asset_category: Large Value
peer_benchmark: Foreign Equity - Large Value Index
broad_market_index: Developed -World Index
structure: Managed Fund