Polar Capital Technology Trust plc AGM Presentation 2020
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Polar Capital Technology Trust plc AGM Presentation 2020
Results as at 30 April 2020
Year ended Year ended Change
30/04/19 30/04/20 (y/y)
Net Assets £1,935,646,000 £2,308,597,000 +19.3%
NAV per ordinary share 1446.40p 1715.59p +18.6%
Price per ordinary share 1354.00p 1774.00p +31.0%
Benchmark Change +18.1%
Ordinary shares in issue 133,825,000 134,566,000 + 0.6%
Source: Polar Capital, 30 April 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 2
PCT as at 31 July 2020
Year ended Year ended Change As at
30/04/19 30/04/20 (y/y) 31/07/20
Net Assets £1,935,646,000 £2,308,597,000 +19.3% £2,839,527,006
NAV per ordinary share 1446.40p 1715.59p +18.6% 2067.91p
Price per ordinary share 1354.00p 1774.00p +31.0% 1950.00p
Benchmark Change +18.1%
Ordinary shares in issue 133,825,000 134,566,000 + 0.6% 137,315,000
Source: Polar Capital, 31 July 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 3
Full Year Review
DJ World Technology vs. FTSE World TR since April 2019 • Global equities (FTSE World -1.5%) fell
modestly during one of the most remarkable
years in living memory as COVID-19 changed the
world as we knew it.
• This unprecedented challenge was met with
remarkable worldwide monetary and fiscal
support driving a stunning equity market reversal;
after the quickest ever descent into a bear
market, April delivered the best monthly returns
since 1987 (and Q2 proved the best quarter for
US stocks since 1998)
• Technology stocks enjoyed an outstanding year
of absolute and relative returns (DJ World Tech
+18.1% in Sterling terms) due to the sector’s
relative earnings progress and a valuation re-
rating while the Coronavirus crisis highlighted the
sector’s superior growth / balance sheet profile
and its criticality.
Source: Bloomberg, 31 July 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 4
Full Year Review
US technology small caps vs. large caps since April 2019 • Sector strength obscured the growing divergence
between next-generation and legacy companies,
as well as large cap (+21%) and small-cap (-
3%). This divergence extended post COVID with
outstanding outperformance experienced by
companies that benefit from (and capture the
zeitgeist of) the so-called ‘new normal’.
• NAV performance (+18.6%) exceeded the
benchmark by 0.5%.
• The current crisis has shown the modern world is
built on technology while many of the trends we
have written about for years have been
meaningfully accelerated by the crisis. While
valuations appear to capture at least some of this
acceleration, we look forward to many more
years of growth for the technology sector.
Source: Bloomberg, 31 July 2020. Past performance is not indicative or a guarantee of future returns. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to
change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 5
The Technology Team
• Technology is at the core of the Polar Capital business
• One of the largest technology franchises in Europe with c.US$10.9bn under management
• Nine dedicated technology specialists – strong multi-cycle track record
Global Technology Polar Capital Technology Automation & AI
Funds Fund Trust (LSE listed) Fund
US$6.6bn US$3.7bn US$578m
Nick Evans Ben Rogoff Xuesong Zhao
Partner Partner Fund Manager/Analyst
Investment experience: 22 years Investment experience: 25 years Investment experience: 13 years
Sectors: US Sectors: US Sectors: Asia (all-cap), global
semi / Semi cap equipment
Fund Managers
Fatima Iu Alastair Unwin
Fund Manager/Analyst Fund Manager/Analyst
Investment experience: 14 years Investment experience: 9 years
Sectors: Europe (all-cap), security, Sectors: Global (all-cap) Payments,
networking, energy & med tech SMB software, IT services
Chris Wittstock (based in US) Bradley Reynolds Paul Johnson Nick Williams
Senior Investment Analyst Investment Analyst Investment Analyst Investment Analyst
Investment experience: 36 years Investment experience: 13 years Investment experience: 8 years Investment experience: 4 years
Analysts
Sectors: US Technology/Software Sectors: US (all-cap) – Sectors: Emerging Tech inc. Sectors: Global (all-cap) –
Internet & digital media 3D printing, gaming & autos A&AI Fund
Source: Polar Capital, 31 July 2020.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 6
Investment Framework
4,000+ universe
Dynamic definition of technology
Thematic overview Real-world changes in userbehaviour
S-Curve inflections
What we look for Secular themes / pure-plays
Last-generation winners
What we avoid Public venturecapital
Growth bias – rev/earnings/ cash flow
Valuation Price targets (bull/base/bear) / Risk reward
Bottom-up stock picking
Portfolio construction Benchmark aware
Mis-execution / modelchange
Sell disciplines Price level attainment
Portfolio
Source: Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 7
Thematic Investing: Hype vs. Reality
Polar Capital Global Technology Team
Searching for revenue growth and cash flow inflections
R&D High growth Low growth No growth
Pre-Revenue negative OM% expanding OM% stable OM% uncertain / decliningOM%
Payment network
Digital Gaming EM smartphones
Sales (blue)
eCommerce IT Services Value Trap
Unified Communications Streaming media DM smartphones
Digital Twin Simulation Performance Marketing
Pay TV Subscription
5G Devices Factory Automation / Robotics
400G Optical Virtualisation
Block Chain
Robotic Process Autom ation Internet of Things (IoT)
Precision Medicine Clean Energy Cyber Security (Firewall)
Next Gen Memory Software as a Service (SaaS)
EUV Litho ERP / Traditional SW
Edge Computing / Analytics
Autonomous Driving Cloud computing (PaaS/IaaS)
3D Sensing Mainframe
5G mm Wave
SIC/48v Machine to Machine Communication
OLED TV Desktop PC / printers
Low Earth Orbit Satellite Systems Energy Storage Microservices / Containerisation
Hype (orange)
ADAS / Active Safety
Solid State Battery Smart Agriculture 3D Packaging
Light Cargo Delivery Drones Virtual Reality Mobile Payment
Flying Autonomous Vehicles Electric Vehicles Cyber Security (Cloud Security)
Adaptive Machine Learning 3D Printing Data Economy / Machine Learning
5G Network AI (Image Recognition)
Fuel Cell Vehicles
AI (Voice Recognition)
“Blue Sky” Disillusionment Emerging / Adoption Mainstream Maturity
Positioning of themes/products above is only intended to be indicative of approximate penetration/maturity
Source: Polar Capital & Gartner, October 2019. 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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 8
Thematic Investing: Hype vs. Reality
Consumer Cash Payments, forecasts vs. actual (m)4
• Introduced in late 2016 to derision1
• Analysts estimate that 16m AirPods were
sold in 20182 , 40m in 20193 and as many as “How did you go bankrupt?
100m by 20212.. Two ways. Gradually, then suddenly.”
• This would make them Apple’s second fastest - Ernest Hemingway
selling new product of all time5
Source: 1. OneZero, 2019. 2. Ming-Chi Kuo of TF International Securities. 3. Neil Cybart, Above Avalon, February 2019. 4. UK Finance, Link Network. 5. Cult of Mac, 2019. The stocks represented herein do not
reflect the entire holdings contained within the Fund. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to
change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 9
Technology Outperformance Tech has driven all the earnings growth since 2009 Helping growth stocks sharply outperform value Tech vs. Ex. Tech earnings (1985 – Present) World Value vs. Growth stocks (1974 – Present) Source: FT, Goldman Sachs. Trailing 12-month earnings. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 10
Eight Core Investment Themes
Core Investment themes (estimated exposure in Fund)
SaaS / Software "Eating the World" 13.3%
Industry 4.0 / Automation 3.7%
Cloud Infrastructure / Security 11.1%
Digital Entertainment 11.6%
Mobility / Connectivity / 5G 17.6%
Payments / Fintech 4.6%
Data Economy / Artificial Intelligence 13.2%
Online Advertising / eCommerce 15.1%
Market Hedge / Beta Offset 1.6%
Other / Cyclical 6.3%
Other / Growth 1.7%
Other / Legacy 0.2%
0% 5% 10% 15% 20%
Source: Polar Capital, 31 July 2020, internal estimates. Past performance is not indicative or a guarantee of future returns. 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. All opinions and estimates constitute the best
judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 11Investment Themes
Eight core theme breakdown (31 January 2017 – 31 July 2020)
19%
18%
17%
16%
15%
14%
13%
12%
11%
10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Oct-17
Oct-18
Oct-19
Mar-17
Aug-17
Mar-18
Aug-18
Mar-19
Aug-19
Mar-20
Jul-19
Jul-17
Jul-18
Jul-20
Jun-17
Jun-18
Apr-19
Jun-19
Jun-20
Jan-17
Apr-17
Apr-18
Jan-19
Apr-20
Dec-17
Jan-18
Dec-18
Feb-19
Sep-19
Dec-19
Jan-20
Feb-17
Sep-17
Feb-18
Sep-18
Feb-20
Nov-19
Nov-17
Nov-18
May-17
May-18
May-19
May-20
Data Economy / Artificial Intelligence Cloud Infrastructure / Security Digital Entertainment Online Advertising / eCommerce
Market hedge / beta offset Industry 4.0 / Automation Mobility / Connectivity / 5G SaaS / Software "Eating the World"
Payments / Fintech Other / Cyclical Other / Growth Other / Legacy
Source: Polar Capital, 31 July 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 12Digital Disruption: Demographics
How couples meet (1940 – present)1 Gen Z consumers are different2
96% own a smartphone, more than 50% are online >10 hrs/day4
Generation Z 70% watch more than 2 hours of YouTube/day3, 83% watch Netflix5
62% will not use apps that are hard to navigate6
c.26% of the US pop8
80% feel distressed when away from their devices4
Average attention span = 8 seconds7
Source: 1. https://web.stanford.edu/~mrosenfe/Rosenfeld_et_al_Disintermediating_Friends.pdf 2. Visual Capitalist. 3. www.tvlicensing.co.uk. 4. Visual Capitalist. 5. IBM. 6. Uniquely Generation Z Report. 7. Nola
Research Group. 8. Digital Marketing Community, GenZ: New Insights Into the Mobile-First Mindset of US Teens, August 2016 | Think With Google.
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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 13Digital Disruption: Artificial Intelligence(AI)
Collapsing computing costs (1950 – 2019)1
“Artificial Intelligence technologies will be the
most disruptive class of technologies over the
next 10 years due to radical computational
power, near-endless amounts of data, and
unprecedented advances in deep neural
networks; these will enable organizations with
AI technologies to harness data in order to adapt
to new situations and solve problems that no
one has ever encountered previously”
- Gartner, July 20172
Source: 1. John C. McCallum; Gordon Moore; The Linley Group; Nielson Normal Group; The Economist. 2. Gartner. The stocks represented herein do not reflect the entire holdings contained within the Fund. All
opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 14Digital Disruption: COVID Acceleration
Digital transformation – “the business imperative of responding to needs of a new generation of customers,
partners and suppliers who expect transactions to be seamless, real-time, Facebook-like
in experience, Amazon-like in reliability”1
COVID acceleration – “As COVID-19 impacts every aspect of our work and life, we have seen two years’ worth
of digital transformation in two months. From remote teamwork and learning to sales
and customer service to critical cloud infrastructure and security, we are working alongside
customers every day to help them stay open for business in a world of remote everything.
There is both immediate surge demand and systemic structural changes across all of our
solution areas that will define the way we live and work going forward.”
-Satya Nadella, CEO, Microsoft2
Accelerated US eCommerce3 Online spending by sector (%)5 WFH likely to persist post COVID4
Source: 1. Baird. 2. Microsoft, 30/4/20. 3. Adobe Digital Economy Index May 2020 4 Gartner, compiled by Goldman Sachs Global Investment Research, May 2020. 5. BAC, May 2020. 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. All
opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 15Investment Themes
Advertising / eCommerce
Internet advertising worth $340bn in 2020E2, 52% of total ad spending2
eCommerce est. $4.2trn in 2020E, c16% of total retail sales1
Brand Building → Transaction facilitation
Payments / Fintech
Global mobile payments worth $2.73tr by 20234
2.1bn consumers to pay via mobile wallet in 20195
eCommerce → behavioural change / disruption
Data Economy / Artificial Intelligence
2.5bn Gb of data generated per day only 1% is stored & analysed7
AI likely largest driver of tech spend over 5-10 years ($127bn by 2025E7)
Rules based engines → Self improving algorithms
Cloud Infrastructure / Security
By 2023, 43% of application workloads expected to run in Cloud services5
Security tailwinds include data breaches, regulation, digitzation, cyberwarfare
Under-utilisation / cost arbitrage → Elastic Compute / TAM expansion
Source: 1. eMarketer, Dec 2019; 2. IAB, Zenith, BoA Dec 2019; 3. BoA / ML / Zenith, US market Jan 18; 4. Payments cards and mobile, 2019. 5. GS CIO Survey (Jan 2020). 6. MS, Geekwire July 2018. 7.
BAML, August 2018. 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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 16Investment Themes
Software / SaaS “Eating The World”
SaaS market of $141bn in 2019 expected to reach $550bn by 20258
As penetration rises (~30% today5 ) expect more strategic M&A by incumbents
SMB adoption / TAM expansion→ Enterprise / ‘rip and replace’
Digital Entertainment
$146bn 2019 gaming market1 growing to $200bn by 2023E driven by mobile, DLC / MTX 1
Streaming + 5G could open AAA titles to ~2.6bn mobile gamers worldwide2
Leisure → Connected / Competitive
Industry 4.0 / Automation
$381bn TAM by 2023 (c.10% CAGR)3 enabled by advanced components (e.g. sensors, gears)
Position repeatability: 0.01mm (robots) / 0.5mm (humans) VS 0.02mm (iPhone64) / 0.1mm (cars)
Cost savings → Necessity, Flexibility (‘CoBot’) and Consistency
Connectivity / Mobility / 5G
Current networks insufficient to support an increasingly connected world
5G infrastructure spending worth $26bn by 2022E, +118% CAGR (2018-2022)7
Capacity + latency → IoT enablement
Source: 1. Newzoo, April 2020; 2. Newzoo April 2020 3. marketsandmarkets, May 2018; 4. Cult of Mac, 2014. 5. IDC. 6. NewZoo May 2017. 7. ZDNet, 2018. 8. Keybanc. 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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 17Digital Marketing / Online Advertising
• Global online advertising worth $340bn in 2020E, c. 52% of total worldwide advertising spend1
• Online share of US advertising now commensurate with % time spent in media (51% vs. 20%/33% in 2010)…2
• …but TV + radio + print still c.49% of US ad spending and new dollar pools (trade spend / direct marketing) emerging2
• US digital media consumption accelerated in 2018 (to +7% y/y) aided by highly favourable demographic trends3
Worldwide digital advertising spending ($bn): 2018 – 20233 TAM expansion as new dollar pools emerge4
Sample Holdings
Source: Polar Capital, unless otherwise stated. 1. IAB, Zenith, BoA,, Dec 2019. 2. Bond Internet Trends 2019 3. Bond Internet Trends 2019 BoAML/Zenith, US market January 2018. 4. Morgan Stanley, March 2020. Note:
*Other includes Telemarketing, Event Sponsorship, Business-to-Business Promotion, Directories and Public Relations.. 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. All opinions and estimates constitute the best judgment of Polar
Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 18eCommerce
• eCommerce growth continues unabated and is forecast at $4.2tr in 2020E, representing c.16% of total retail sales1
• Amazon’s share of US e-commerce now 38%, 4% of all retail spend2
• Mobile now an integral part of the shopping experience, accounting for 63.5% of all retail eCommerce 2
• Improvements in payments / delivery continue to reduce online buying friction / change user behaviour and expectations
Global eCommerce sales, $bn (2017-2023E)1 Online penetration of US retail categories 20193
Sample Holdings
Source: Polar Capital, unless otherwise stated. 1. eMarketer, June 2019. 2. eMarketer, June 2019. 3. eMarketer, Bernstein, Jan 2020. 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. All opinions and estimates constitute the best judgment of Polar
Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 19Payments / Fintech • Global mobile payment market set to reach $2.73tr by 2023, representing a 25% CAGR 2018-20231 • 2.1bn consumers expected to make a purchase via a mobile wallet in 2019, >50% in China2 • B2B opportunity: $120tr (vs. $45tr consumer volume) largely cheque-based today ($4-20/transaction vs. 30-50c digital)3 • Contactless coming: half of US transactions
Cloud Infrastructure / Security
• Having debunked many of the earlier barriers to adoption, we expect Cloud migration to accelerate over the coming years
• Expect ‘all’ incremental capacity added in cloud: c. 50% of spend by 20192 and 44% of application workloads by 20213
• Cloud deflation to be felt across IT stack – IT Services market worth >$1.1tn in 2019 (2x software + datacentre combined)4
• Cost of cybercrime estimated at $6tr by 2021 with cybersecurity playing a vital role in protecting the digital economy1
Cloud penetration remains low across major IT spend Enterprise computing workloads expectations6
categories5
Sample Holdings
Source: Polar Capital unless otherwise stated. 1. PWC, The cost of inaction on cybercrime in the Middle East, 2018. 2. Deutsche Bank, January 2016. 3. Morgan Stanley / Geekwire August 2018 4. Gartner, May 2020.
5. Gartner, Goldman Sachs Global Investment Research. 6. Goldman Sachs, Global Investment Research. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date
hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 21The Data Economy / Artificial Intelligence (AI)
• 2.5bn gigabytes of data is generated per day but only 1% is stored and analysed; this could increase to 37% by 20251
– e.g. a single AV may generate 4TB of data/ day, equivalent to 3,000 people today1
• AI likely to be the single largest driver of tech spending over the next 5-10 years, worth $127bn by 2025E1
– Only 8% of companies have deployed ML beyond testing1, focus likely to remain narrow / specific use-cases
• Data Economy includes semi / components (DRAM / NAND, GPU / FPGA), Cloud (scale), tools (data prep / analytics) and apps.
The ‘Data Economy’ ecosystem2 AI revenue growth by technology, $bn (2015 – 2025E)1
Apps
Tools
Cloud
Semi / components
Sample Holdings
Source: 1. BAML, August 2018 2. Polar Capital. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do
not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 22Software (Is Eating The World)
• Rental / usage-based model is expanding the software market while threatening incumbent franchises / maintenance
• Software as a service (SaaS) targets a $325bn opportunity by 2022, representing 25% of IT spending1
• Focus on the customer experience (CX) driving a front office transformation CRM, UCaaS, CPaaS, voice, payments
• Agility in the data age requires automation / upgraded core business functions AI, BPA, HR, procurement
US nominal tech capex (1980 – Q1’20)2 SaaS spending (2004 – 2020E)1
Sample Holdings
Source: 1. Statista, 2020. 2. Cornerstone, Q1’20. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do
not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 23Digital Entertainment
• Video games: $146bn bn market in 2019 → $201bn by 2023E (~8% CAGR), driven by new console cycle, mobile and AR/VR1
• Meteoric rise of Free-To-Play Fortnite (>78m MAU / $2.4bn sales): both risk and opportunity2
• Streaming video : c.200m (vs. 1bn paid TV) subscribers worldwide, Netflix dominates today with 140m (6x closest comp)3
• eSports: modest TAM (~$1.1bn) but massive audience (201m enthusiasts + 253m occasional viewers) watching 6.6bn hours4
2020 global games market1 Total paid US subscriptions5
Sample Holdings
Source: 1. Newzoo, Apr 2020. 2. Polygon, September 2018 & The Telegraph, 2019. 3. RBC, August 2019. 4. Influencer Marketing Hub. 5. Company data, SNL Kagan, Ampere, Moran Stanley Research estimates. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of
Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 24Digital Entertainment
• Video games: $146bn bn market in 2019 → $201bn by 2023E (~8% CAGR), driven by new console cycle, mobile and AR/VR1
• Meteoric rise of Free-To-Play Fortnite (>78m MAU / $2.4bn sales): both risk and opportunity2
• Streaming video : c.200m (vs. 1bn paid TV) subscribers worldwide, Netflix dominates today with 140m (6x closest comp)3
• eSports: modest TAM (~$1.1bn) but massive audience (201m enthusiasts + 253m occasional viewers) watching 6.6bn hours4
Real meets Virtual – Travis Scott / Fortnite5 Real meets Virtual – F1 eSports Series6
Sample Holdings
Source: 1. Newzoo, Apr 2020. 2. Polygon, September 2018 & The Telegraph, 2019. 3. RBC, August 2019. 4. Influencer Marketing Hub. 5. YouTube, 2020. 6. Autosport, 2020. 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. All
opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of
Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 25Industry 4.0: Automation / Simulation
• The Fourth Industrial Revolution underway driven by Cyber Physical Systems, Internet of Things and Cloud Services
• Edge AI, low latency from 5G and advanced machine vision should enable cobots to self-learn tasks
• Over 25% of manufacturing tasks that can be automated may be performed by robots over the next decade1
• Service robotics (logistics, domestic, medical) market ($17bn +32% y/y in 2019) now the same size as Industrial robotics market
Connected factory combines multiple technologies2 Annual installations of industrial Robots (2013-2022E)3
Sample Holdings
Source: 1. Boston Consulting Group, September 2015. 2. Analog Devices. 3. World Robotics, 2019. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date
hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 26Connectivity: 5G / IoT / Edge Computing • Current networks insufficient capacity / latency to support an increasingly connected world (c.29bn devices by 2022)1 • 5G up to 100x faster with low latency (
5G – Smartphones / Apple
• The c.1.5bn unit smartphone market is mature: global penetration at c.66%1 and units declined 2% y/y in 20201
• Apple remains unique: premium pricing + services. Wearables (+32% y/y in FQ2’20) AirPod / Watch attach at estimated 7% / 12%2
• Can 5G shorten replacement cycles? Although the PC experience is sobering, sentiment could improve ahead of 5G launch in 2020
• 5G content gains coming at a time of higher capital intensity due to ‘Moore’s Stress’ – favours RF, SPE, IC design, test and materials
Smartphone worldwide unit shipments (2008 - 2022)3 Apple replacement cycles FY16 – FY21E4
Sample Holdings
Source: 1. Gartner, Feb 2020. 2. Bernstein, 3 June 2020. 3. Business Insider, 2018. 4. Bernstein, 2020. 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. All opinions and estimates constitute the best judgment of Polar Capital as of the date
hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 28Technology Valuations Absolute sector valuation (PE): Relative sector valuation (PE): At post GFC highs (1992 – present) At / around market level – with superior balance sheet Source: Ned Davis, 31 July 2020. Copyright 2018 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. See NDR Disclaimer at www.ndr.com/copyright.html. For data vendor disclaimers refer to www.ndr.com/vendorinfo/. Past performance is not indicative or a guarantee of future returns. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 29
‘Next-Generation’ Valuations
Internet valuation (equal cap weighted): Software as a Service (SaaS) valuation:
EV/forward 2 year EV/EBITDA levels1 EV/forward 12 month revenue multiples2
25
20
15
10
5
0
Oct-17
Jan-13
Jan-15
Jun-16
Jun-18
Mar-19
Feb-17
Nov-19
Sep-13
Sep-15
May-14
Jul-20
ML Internet Index
Source: 1. Bloomberg, 31 July 2020. UCITS Internet sector (AMZN/FB/GOOG/BABA/700HK/PYPL) vs Bank of America Merrill Lynch Internet sector Index. 2. Thomson Reuters, KeyBanc, Capital Markets, July 2020. Includes
the following tickers: ADBE, ALRM, APPF, APPN, AVLR, AYX, BAND, BILL, BL, BNFT, BOX, CDAY, CLDR, COUP, CRM, CRWD, CSLT, CSOD, DBX, DDOG, DOCU, DOMO, DT, ECOM, ESTC, EVBG, FIVN, FSLY,
HUBS, LOGM, MDB, MIME, NET, NEWR, NOW, OKTA, PAYC, PCTY, PD, PFPT, PING, PLAN, PRO, PS, QLYS, QTWO, RNG, RP, RPD, SHOP, SMAR, SPSC, SQ, SVMK, TDOC, TEAM, TENB, TLND, TWLO,
TWOU, VEEV, WDAY, WIX, W K, WORK, YEXT, ZEN, ZM, ZS, ZUO. Past performance is not indicative or a guarantee of futurereturns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 30‘Next-Generation’ Valuations
IT security valuation: Cloud vs legacy valuation
EV/forward 12 month revenue multiples1 EV/trailing 12 month revenue multiples2
14x
12x
EV/ trailing 12 month sales
10x
8x
6x
4x
2x
0x
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jan-18
Jan-19
Jan-20
Sep-10
Sep-11
Sep-12
Sep-13
Sep-14
Sep-15
Sep-16
Sep-17
Sep-18
Sep-19
May-10
May-11
May-12
May-13
May-14
May-15
May-16
May-17
May-18
May-19
May-20
LEGACY CLOUD
Source: 1. Citi Research, FactSet, July 2020. 2. Bloomberg, BofA Merrill Lynch Global Research, July 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 31Rhymes, Not Repeats
Technology outperformance Technology outperformance
Sector market cap as % of S&P 500 market cap Market cap weight minus earnings weight
‒ Q1’20: technology earnings +15% y/y vs. +2.5% S&P 500
Source: Ned Davis, July 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 32Rhymes, Not Repeats Concentration risk: Concentration risk: % of S&P 500 accounted for by largest 5 stocks1 Weights of Top 5 / bottom half of stocks in the S&P 5002 Source: 1. BoA Global Investment Strategy / Bloomberg, June 2020 2. Ned Davis, June 2020. Past performance is not indicative or a guarantee of future returns. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 33
Rhymes, Not Repeats
Investor sentiment
AAII Bulls / (Bulls + Bears)1
Late 1990s exuberance
32.9%
as at
2 July 20201
Post GFC trauma
Source: 1. Ned Davis as at 2 July 2020. Past performance is not indicative or a guarantee of future returns.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 34PCT Positioning
Sector exposure (%) Market cap exposure (%)
Software 24.1%
Semiconductors & Semiconductor Equipment 17.4% 88.0%
Large Cap (>$10bn)
Interactive Media & Services 16.0%
Technology Hardware, Storage & Peripherals 12.7% Mid Cap (>$1bn - $10bn) 11.2%
Internet & Direct Marketing Retail 8.0% Small Cap (PCT Positioning
Largest overweights Largest underweights Market cap exposure versus benchmark
Activision Blizzard Alphabet
Advanced Micro Devices Analog Devices
Advantest Corp Apple
Large-cap -4.7%
Amazon Applied Materials
Axon Enterprise Autodesk
Blackline Broadcom
CloudFlare Cisco Systems
Crowdstrike Facebook Mid-cap 4.4%
Everbridge IBM
GrubHub Infosys
MediaTek Intel
Netflix Intuit Small-cap 0.3%
PayPal LAM Research
Peloton Interactive Micron Technology
Take-Two Interactive Software Microsoft -20% -15% -10% -5% 0% 5% 10% 15%
Tokyo Electron Oracle
Twilio SAP
Xilinx Shopify
Zendesk SK Hynix
Zoom Video Communications Texas Instruments
Source: Polar Capital, as at 31 July 2020. Bold denotes a zero position. 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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 36PCT Positioning
Thematic breakdown1,2 Thematic breakdown relative to benchmark (%)1,2
6.0%
Legacy 4.0%
11%
2.0%
Internet
25% 0.0%
-2.0%
-4.0%
-6.0%
Semiconductors
21%
-8.0%
-10.0%
-12.0%
Cloud: applications
13%
-14.0%
-16.0%
Smartphones
Video Games
Legacy
IoT
Cybersecurity
Medical Technology
Electric Vehicles
Internet
3D Printing
Semiconductors
Smartphones
Emerging
Cloud: infrastructure
Automotive
Materials
Payments
Apple
Cloud: applications
Solar
Other
Big data / AI
Factory automation/robotics
2%
Apple
10%
Medical Technology
0%
Cloud: infrastructure
Electric Vehicles 4%
1% Solar
Other Cybersecurity
0%
Emerging Big data / AI 1%
0%
1% IoT PaymentsFactory Automotive 2%
3D Printing automation/robotics
1% 4% 2%
0% 2%
Source: Polar Capital, 31 July 2020. 1. Benchmark: Dow Jones Global Technology Index (TR). 2. Index exposure based on Top 100 index constituents. Figures are shown as gross weightings.
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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 37PCT Positioning
Index Index
PCT 1 Top ex Sales growth 2020 – PCT vs. benchmark2
100 Apple
60.0
PE (Median) CY 32.8 27.1 27.0
NY 31.7 23.4 23.2
Earnings growth (Median) CY 4.4 3.8 3.7
50.0
NY 29.2 18.0 18.0
EV/Sales (Mean) CY 10.3 9.4 9.4
NY 8.4 7.9 7.9
EV/Sales (Median) CY 8.3 6.7 6.7 40.0
NY 6.8 5.9 5.9
EV/Sales (Weighted)** CY 9.7 8.8 9.2
Weight
NY 8.2 7.6 7.9
30.0
Sales Growth (Mean) CY 11.7 11.3 11.3
NY 19.4 14.8 14.8
Sales Growth (Median) CY 12.0 10.4 10.4
NY 17.5 12.8 12.9 20.0
Sales Growth (Weighted)** CY 13.6 11.5 12.7
NY 17.9 14.5 15.1
Gross Margin (Mean) 55.6 57.6 57.8
10.0
Gross Margin (Median) 54.9 58.6 59.0
Gross Margin (Weighted)** 53.3 56.0 59.7
Net Cash as % mkt cap Avg 7.8 10.4 10.4
Wgtd** 6.5 6.0 6.4 0.0
50
Market Cap ($m) Mean 136,899 121,918 104,135
Best Estimate Sales Growth 2020
Median 20,999 33,328 33,188
Wgtd** 589,801 795,596 579,302 PCT GROSS WEIGHT BENCH GROSS WEIGHT
Source: 1. Polar Capital, 6 August 2020. Figures in blue exclude Apple (16.6% gross) from the Index Top 100. CY = Current Year, NY = 2021 calendar year estimates. 2. Polar Capital, 6 August 2020. Benchmark: Dow
Jones Global Technology Index (TR). Past performance is not indicative or a guarantee of future results. All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to
change without notice, and do not necessarily represent the views of Polar Capital. 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.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 38Appendix For non-US investor use only. Please refer to the Important Information at the end of this presentation. 39
Team Biographies
Ben Rogoff – Partner
Experience: 25 years
Ben joined Polar Capital in May 2003. He is lead manager of Polar Capital Technology Trust plc and is a Fund Manager of the Polar Capital
Global Technology Fund and Polar Capital Automation and Artificial Intelligence Fund. He has been a technology specialist for 25 years. Prior to
joining Polar Capital he began his career in fund management at CMI, as a global technology analyst. He moved to Aberdeen Fund Managers in
1998 where he spent four years as a senior technology manager. Ben graduated from St Catherine’s College, Oxford in 1995.
Nick Evans – Partner
Experience: 22 years
Nick joined Polar Capital in September 2007 and has 22 years’ experience as a technology specialist. He has been lead manager of the Polar
Capital Global Technology Fund since January 2008 and is also a fund manager on the Polar Capital Technology Trust and Polar Capital
Automation and Artificial Intelligence Fund. Prior to joining Polar he was head of technology at AXA Framlington and lead manager of the AXA
Framlington Global Technology Fund and the AXA world fund (AWF) – Global Technology from 2001 to 2007 (both rated five stars by S&P). He
also spent three years as a Pan-European investment manager and technology analyst at Hill Samuel Asset Management. Nick has a degree in
Economics and Business Economics from Hull University, has completed all levels of the ASIP, and is a member of the CFA Institute.
Xuesong Zhao
Experience: 13 years
Xuesong joined Polar Capital in May 2012 and has 13 years’ investment experience. He is a lead manager of the Polar Capital Automation and
Artificial Intelligence Fund and is a Fund Manager on the Polar Capital Technology Trust and Polar Capital Global Technology Fund. Prior to
joining Polar Capital, he spent four years working as an investment analyst within the emerging markets & Asia team at Aviva Investors, where he
was responsible for the technology, media and telecom sectors. Prior to that, he worked as a quantitative analyst and risk manager for the
emerging market debt team at Pictet Asset Management. He started his career as a financial engineer at Algorithmics, now owned by IBM, in
2005. He holds an MSc in Finance from Imperial College of Science & Technology, a BA (Hons) in Economics from Peking University. He is also
a CFA charterholder.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 40Team Biographies cont.
Fatima Iu
Experience: 14 years
Fatima joined Polar Capital in April 2006 and has 14 years’ experience. She is a fund manager on the Polar Capital Technology Fund, Polar
Capital Technology Trust and Polar Capital Automation and Artificial Intelligence Fund. She is responsible for the coverage of European
Technology, Global Security, Networking, Clean Energy and Medical Technology. Prior to joining Polar, Fatima spent 18 months working at
Citigroup Asset Management with a focus on consumer products and pharmaceuticals. Fatima holds an MSc in Medicinal Chemistry from Imperial
College of Science & Technology in London. She is also a CFA Charterholder.
Alastair Unwin
Experience: 9 years
Alastair joined Polar Capital in June 2019 as a Fund Manager and Senior Analyst. Prior to joining Polar Capital, Alastair co-managed the Arbrook
American Equities Fund. Between 2014 and 2018 he launched and then managed the Neptune Global Technology Fund and managed the
Neptune US Opportunities Fund. Prior to Neptune, Alastair was a technology analyst at Herald Investment Management. Alastair has a BA (1st
Class Hons) in history from Trinity College, Cambridge and is a CFA Charterholder.
Chris Wittstock
Experience: 36 years
Chris joined Polar Capital in July 2017 as a senior technology analyst based in the US. Prior to joining, Chris led the International research sales
effort at Pacific Crest, a technology investment bank that was ultimately acquired by KeyBanc Capital in 2014. Prior to joining Pacific Crest in 2004,
Chris led the International sales effort at Schwab SoundView, the successor company to Soundview Technology Group where he was since 1996.
Chris spent significant time in Europe as a derivative products specialist in the late 80s and 90s, lastly with Morgan Stanley International. He is a
graduate of University of Toronto, Faculty of Engineering (Industrial).
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 41Team Biographies cont.
Brad Reynolds
Experience: 13 years
Brad joined Polar Capital in October 2011 as an Investment Analyst and Trader working as part of the European Market Neutral team with a focus
on media and internet. In 2014, he joined the Technology team as an Investment Analyst. Prior to joining Polar Capital, Brad worked at Ratio Asset
Management as an analyst and trader, and from 2007 to 2011 he worked at F&C as a hedge fund analyst. Brad started his career in 2001 at
Gartmore Investment Management working within the hedge fund team. Brad graduated from the University of Hertfordshire with a degree in
Business Studies.
Paul Johnson
Experience: 8 years
Paul joined Polar Capital in March 2012 as an Investment Analyst on the Polar Capital Technology team. Prior to joining Polar Capital, Paul helped
manage a private investment fund between 2010 and 2012. Paul holds a BA in History and Politics and a Masters in History from Keele University.
He has successfully passed all three levels of the CFA program.
Nick Williams
Experience: 4 years
Nick joined Polar Capital in June 2019 as an analyst on the Polar Capital Technology team. Prior to joining Polar Capital, Nick worked at Neptune
Investment Management as the Assistant Fund Manager on the US Opportunities growth fund. Prior to that he worked in academia at the
University of Oxford. Nick holds an MChem Chemistry from the University of Oxford.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 42Portfolio Structure – Liquidity Profile
Liquidity horizon evaluation
12,000,000,000 6.00
10,000,000,000 5.00
Days to liquidate
8,000,000,000 4.00
AUM (USDM)
6,000,000,000 3.00
4,000,000,000 2.00
2,000,000,000 1.00
0 -
Sep-18
Aug-18
Aug-19
Sep-19
Feb-18
Jun-18
Feb-19
Jun-19
Mar-18
Mar-19
Feb-20
Jun-20
Mar-20
Jul-20
Dec-17
Nov-18
Dec-18
Nov-19
Dec-19
May-18
May-19
May-20
Global Tech AUM $ Strategy AUM $ Days to liquidate 95% (GT) Days to liquidate 95% (Strat)
Source: Polar Capital, 31 July 2020. Liquidation is calculated assuming 20% of daily volume based on the average volume over the previous 60 days. Past performance is not indicative or a guarantee of future returns.
For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 43Important Information
Polar Capital
16 Palace Street
London SW1E 5JD
Important Information: This document is provided for the sole use of the intended recipient and is not a financial promotion. It shall not and does not constitute an offer or solicitation of an offer to make an
investment into any fund or Company managed by Polar Capital. It may not be reproduced in any form without the express permission of Polar Capital and is for the intended recipient only. Clients who have
access to this document should make themselves aware of all relevant risk factors relating to these products contained in the Fund or Company’s Prospectus or latest financial report. The law restricts distribution
of this document in certain jurisdictions; therefore, it is the responsibility of the reader to inform themselves about and observe any such restrictions. It is the responsibility of any person/s in possession of this
document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. Polar Capital Technology Trust plc is an Investment Company with investment trust status and as
such its ordinary shares are excluded from the FCA’s (Financial Conduct Authority’s) restrictions which apply to non-mainstream investment products. The Company conducts its affairs and intends to continue to
do so for the foreseeable future so that the exclusion continues to apply. It is not designed to contain information material to an investor’s decision to invest in in Polar Capital Funds Plc – Automation and Artificial
Intelligence Fund, Polar Capital PLC – Global Technology Fund or Polar Capital Technology Trust plc which is an Alternative Investment Fund under the Alternative Investment Fund Managers Directive
2011/61/EU (“AIFMD”) managed by Polar Capital LLP the appointed Alternative Investment Manager. In relation to each member state of the EEA (each a “Member State”) which has implemented the AIFMD,
this document may only be distributed and shares may only be offered or placed in a Member State to the extent that (1) the fund is permitted to be marketed to professional investors in the relevant Member
State in accordance with AIFMD; or (2) this document may otherwise be lawfully distributed and the shares may otherwise be lawfully offered or placed in that Member State (including at the initiative of the
investor). As at the date of this document, the Fund has not been approved, notified or registered in accordance with the AIFMD for marketing to professional investors in any member state of the EEA. However,
such approval may be sought or such notification or registration may be made in the future. Therefore this document is only transmitted to an investor in an EEA Member State at such investor’s own
initiative. SUCH INFORMATION, INCLUDING RELEVANT RISK FACTORS, IS CONTAINED IN THE COMPANY OR FUND’S OFFER DOCUMENT WHICH MUST BE READ BY ANY PROSPECTIVE
INVESTOR.
Statements/Opinions/Views: All opinions and estimates constitute the best judgment of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views
of Polar Capital. This material does not constitute legal or accounting advice; readers should contact their legal and accounting professionals for such information. All sources are Polar Capital unless otherwise
stated.
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 Company or Fund. 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 Company or Fund’s best interest to do so. 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. This document is not a recommendation to purchase or sell any particular security. It is designed to provide
updated information to professional investors to enable them to monitor the Company or Fund.
Benchmarks: The following benchmark index is used: Dow Jones World Technology Index (Total Return). This benchmark is generally considered to be representative of the Technology Equity universe. This
benchmark is a broad-based index which is used for comparative/illustrative purposes only and has been selected as it is well known and is easily recognizable by investors. Please refer to www.djindexes.com
for further information on this index. Comparisons to benchmarks have limitations as benchmarks volatility and other material characteristics that may differ from the Company or Fund. Security holdings, industry
weightings and asset allocation made for the Company or Fund may differ significantly from the benchmark. Accordingly, investment results and volatility of the Company or Fund may differ from those of the
benchmark. The indices noted in this document are unmanaged, are unavailable for direct investment, and are not subject to management fees, transaction costs or other types of expenses that the Company or
Fund may incur. The performance of the indices reflects reinvestment of dividends and, where applicable, capital gain distributions. Therefore, investors should carefully consider these limitations and differences
when evaluating the comparative benchmark data performance. Information regarding indices is included merely to show general trends in the periods indicated, it is not intended to imply that the fund was similar
to the indices in composition or risk.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 44Important Information Cont.
Polar Capital
16 Palace Street
London SW1E 5JD
Regulatory Status: Polar Capital LLP is a limited liability partnership number OC314700. It is authorised and regulated by the UK FCA and is registered as an investment adviser with the US Securities &
Exchange Commission (“SEC”). A list of members is open to inspection at the registered office, 16 Palace Street, London SW1E 5JD. FCA authorised and regulated Investment Managers are expected to write to
investors in funds they manage with details of any side letters they have entered into. The FCA considers a side letter to be an arrangement known to the investment manager which can reasonably be expected
to provide one investor with more materially favourable rights, than those afforded to other investors. These rights may, for example, include enhanced redemption rights, capacity commitments or the provision of
portfolio transparency information which are not generally available. The Fund and the Investment Manager are not aware of, or party to, any such arrangement whereby an investor has any preferential
redemption rights. However, in exceptional circumstances, such as where an investor seeds a new fund or expresses a wish to invest in the Fund over time, certain investors have been or may be provided with
portfolio transparency information and/or capacity commitments which are not generally available. Investors who have any questions concerning side letters or related arrangements should contact the Polar
Capital Desk at the Registrar on 0800 876 6889 (PCTT) or Administrator on +353 1 434 5007 (UCITS). The Fund is prepared to instruct the custodian of the Fund, upon request, to make available to investors
portfolio custody position balance reports monthly in arrears.
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.
Forecasts: References to future returns are not promises or estimates of actual returns Polar Capital may achieve. Forecasts contained herein are for illustrative purposes only and does not constitute advice or a
recommendation. Forecasts are based upon subjective estimates and assumptions about circumstances and events that have not and may not take place.
Performance/Investment Process/Risk: Performance is shown net of fees and expenses and includes the reinvestment of dividends and capital gain distributions. Factors affecting the Company or Fund’s
performance may include changes in market conditions (including currency risk) and interest rates and in response to other economic, political, or financial developments. Past performance is not a guide to or
indicative of future results. Future returns are not guaranteed and a loss of principal may occur. Investments are not insured by the FDIC (or any other state or federal agency), or guaranteed by any bank, and
may lose value. No investment process or strategy is free of risk and there is no guarantee that the investment process or strategy described herein will be profitable.
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 or prospectus for a description of the investment allocations as well as the risks associated therewith. Please note that the
Company or Fund may elect to invest assets in different investment sectors from those depicted herein, which may entail additional and/or different risks. Performance of the Company or Fund is dependent on
the Investment Manager’s ability to identify and access appropriate investments, and balance assets to maximize return to the Company or Fund while minimizing its risk. The actual investments in the Company
or Fund may or may not be the same or in the same proportion as those shown herein.
Country Specific disclaimers: The Company or Funds have not been and will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and the holders
of its shares will not be entitled to the benefits of the Investment Company Act. In addition, the offer and sale of the Securities have not been, and will not be, registered under the U.S. Securities Act of 1933, as
amended (the "Securities Act"). No Securities may be offered or sold or otherwise transacted within the United States or to, or for the account or benefit of U.S. Persons (as defined in Regulation S of the
Securities Act). In connection with the transaction referred to in this document the shares of the Fund will be offered and sold only outside the United States to, and for the account or benefit of non U.S. Persons
in "offshore- transactions" within the meaning of, and in reliance on the exemption from registration provided by Regulation S under the Securities Act. No money, securities or other consideration is being solicited
and, if sent in response to the information contained herein, will not be accepted. Any failure to comply with the above restrictions may constitute a violation of such securities laws.
For non-US investor use only. Please refer to the Important Information at the end of this presentation. 45You can also read
