Polar Capital Technology Trust plc AGM Presentation - 4 September 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Polar Capital Technology Trust plc AGM Presentation 4 September 2019 This presentation is for non-US investor use only For non-USwww.polarcapital.co.uk investor use only. Please refer to the Important Information at the end of this presentation. 1
Results As At 30 April 2019 Year ended Year ended Change 30/04/18 30/04/19 (y/y) Net Assets £1,551,611,000 £1,935,646,000 +24.8% NAV per ordinary share 1159.69p 1446.17p +24.7% Price per ordinary share 1148.00p 1354.00p +17.9% Benchmark Change +21.4% Ordinary shares in issue 133,795,000 133,825,000 0.02% Source: Polar Capital, 30 April 2019. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 2
PCT As At 31 July 2019 Year ended Year ended Change As at 30/04/18 30/04/19 (y/y) 31/07/19 Net Assets £1,551,611,000 £1,935,646,000 +24.8% £1,931,775,000 NAV per ordinary share 1159.69p 1446.17p +24.7% 1443.51p Price per ordinary share 1148.00p 1354.00p +17.9% 1338.00p Benchmark Change +21.4% Ordinary shares in issue 133,795,000 133,825,000 0.02% 133,825,000 Source: Polar Capital, 31 July 2019. 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. MSCI ACWI since Apr 2018 • Global equities (FTSE World + 11.6%) added to their post financial crisis gains despite a weaker macroeconomic backdrop with the Fed volte-face in January sparking a dramatic reversal of fortunes for risk assets during the final third of the year • Equity returns were substantially driven by the US (+19.8% in sterling terms) while most other markets delivered total returns +/- 5%. US exceptionalism reflected diverging fundamentals, resilient US earnings / buybacks / M&A and US Dollar strength (DXY +6.1%) • Technology stocks (DJ World Tech +21.4% in Sterling terms) enjoyed another impressive year of absolute and relative returns driven by superior earnings growth, disproportionate US exposure and the outperformance of software, cloud and payment stocks Source: Bloomberg, 10 July 2019. 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 Apr 2018 • NAV performance (+24.7%) exceeded the benchmark by 3.3% – Key positives: AMD, software-as-a-service, payments – M&A supportive but only one take-out (Red Hat) – US exposure drove outperformance (Europe / Japan weaker due to semiconductor / robotics exposure) but stock selection remained positive across all market-capitalisation tiers – Negatives: GrubHub / select incumbents / computer gaming / liquidity Source: Bloomberg, 10 July 2019. 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. 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$6.1bn 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$3.2bn US$2.5bn US$403m Nick Evans Ben Rogoff Xuesong Zhao Partner Partner Fund Manager/Analyst Investment experience: 21 years Investment experience: 24 years Investment experience: 12 years Sectors: US (small/mid-cap) Sectors: US (mid/large-cap) Sectors: Asia (all-cap), global semi / Semi cap equipment Fund Managers Fatima Iu (Maternity Leave) Alastair Unwin Fund Manager/Analyst Fund Manager/Analyst Investment experience: 13 years Investment experience: 8 years Sectors: Europe (all-cap), security, Sectors: Payments, SMB software, networking, energy & med tech IT services Chris Wittstock (based in US) Bradley Reynolds Paul Johnson Nick Williams Senior Investment Analyst Investment Analyst Investment Analyst Investment Analyst Investment experience: 35 years Investment experience: 11 years Investment experience: 7 years Investment experience: 3 years Analysts Sectors: US Technology/Software Sectors: US (all-cap) – Internet & Sectors: Emerging Tech inc. Sectors: Global all-cap – digital media 3D printing, gaming & autos A&AI Fund Source: Polar Capital, 31 July 2019. 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 user behaviour S-Curve inflections What we look for Secular themes / pure-plays Last-generation winners What we avoid Public venture capital Growth bias – rev/earnings / cash flow Valuation Price targets (bull/base/bear) / Risk reward Bottom-up stock picking Portfolio construction Benchmark aware Mis-execution / model change 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 Early stage investors Index / ETF R&D High growth Low growth No growth Connected Home negative OM% expanding OM% stable OM% uncertain / declining OM% Deep Learning Virtual Personal Assistants Machine Learning Autonomous Vehicles IoT Platform Nanotube Electronics Smart Robots Cognitive Computing Edge Computing Blockchain Augmented Data Discovery Commercial UAVs (Drones) Smart Workforce Conversational Brain Computer Interface User Interface Cognitive Expert Advisors Developed market smartphones Volumetric Displays Wireless Networking (802.11n / ac) Enterprise software IT Services “Value Trap”? Quantum Computing Server & Storage Virtualisation Tablets / Ultrabooks (including Mac Air) LCD TV / HDTV Digital Twin eCommerce / online advertising Notebooks Mobile broadband (4G / LTE) Expectations Home Broadband Serverless PaaS EM smartphones & Ecommerce/Internet PVR/DVR (Sky+) Multiplayer / mobile gaming / streaming media Sales 5G ERP / Traditional software Moore’s stress / rising semi capital intensity Smart agriculture / factory automation / robotics Feature phones / 3G Human Augmentation Software as a Service (SaaS) Enterprise Taxonomy and Mainframe Neuromorphic Hardware Enterprise SSD / 64 bit ARM architecture Ontology Management Cloud computing (public/private – PaaS/IaaS) Desktop PC / printers Virtual Reality Deep Reinforcement Cyber security / app control / IPS PND/GPS Learning Big data / predictive analytics / Hadoop Voice over LTE / WiFI (VoLTE / VoWiFI) Digital Camera (DSC) Artificial General Software Defined Security 4D printing Intelligence Mobile / social / location based advertising DVD Augmented Reality Mobile payments / mCommerce / NFC / biometrics VCR Internet of Things (IoT) / M2M communication Software defined networking (SDN) / NFV / 100G optical / FTTx) Virtual Reality Smart dust Clean energy (solar & wind) Electric 3D printing Energy vehicles Innovation Peak of Trough of Slope of Plateau of Storage Trigger Inflated disillusionment enlightenment productivity expectation Time Years to mainstream adoption: “Blue Sky” Emerging Mainstream Maturity / Decline Less than 2 years 2 to 5 years 5 to 10 years More than 10 years Obsolete before plateau Positioning of themes/products above is only intended to be indicative of approximate penetration/maturity Source: Polar Capital & Gartner, July 2017. 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 • Although Apple has never broken out unit sales, analysts estimate that 16m AirPods “How did you go bankrupt? were sold in 20182. This is forecast to Two ways. Gradually, then suddenly.” increase to 40m units this year3 and 100m by - Ernest Hemingway 20212 • Apple’s second fastest selling new product of all time? 5 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
An Unusual Cycle Longest bull market Weakest economic recovery S&P 500: periods without a 20% drawdown1 US real GDP from trough 10 years onward1 Source: 1. 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
An Unusual Cycle Limited labour participation Unprecedented monetary policy Labour share of non-farm business sector %1 UK bond yields since 17001 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. 11
An Unusual Cycle Tech has driven all the earnings growth since 2009 Helping growth stocks sharply outperform value Tech vs. Ex. Tech earnings (1985 – Present)1 World Value vs. Growth stocks (1974 – Present)1 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. 12
Technology: PE Expansion In-line With Market Absolute sector valuation (PE): Relative sector valuation (PE): Compelling vs. history (1992 – present) At / around market level – with superior balance sheet Source: Ned Davis, 23 August 2019. 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. 13
‘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 Jan-13 Apr-13 Jul-13 Oct-13 Feb-14 May-14 Dec-14 Mar-15 Jun-15 Jan-16 Apr-16 Jul-16 Nov-16 Feb-17 May-17 Dec-17 Mar-18 Jun-18 Oct-18 Jan-19 Apr-19 Jul-19 Aug-14 Sep-15 Aug-17 ML Internet Index Source: 1. Bloomberg, 31 July 2019. UCITS Internet sector (AMZN/FB/GOOG/BABA/700HK/PYPL) vs Bank of America Merrill Lynch Internet sector Index. 2. KeyBanc Capital Markets, June 2019, Polar Capital. 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. 14
‘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 May-10 Jan-12 Jun-12 Jan-19 Jun-19 Nov-12 Dec-14 May-15 Dec-16 May-17 Oct-10 Mar-11 Aug-11 Apr-13 Sep-13 Feb-14 Jul-14 Oct-15 Feb-16 Jul-16 Oct-17 Mar-18 Aug-18 LEGACY CLOUD Source: 1. Citi Research, FactSet, July 2019. 2. Bloomberg, BofA Merrill Lynch Global Research, July 2019. 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. 15
Valuations Supported By Elevated M&A… Software M&A since 19951 Select M&A activity2 Date Target Acquirer Premium Value $m Jan-17 AppDynamics Cisco 100%* 3,700 Mar-17 Nimble Storage HP Enterprise 45% 1,000 Mar-17 Mobileye Intel 34% 14,131 Mar-18 MuleSoft Salesforce.com 36% 5,667 Jun-18 GitHub Microsoft Private 7,500 Sep-18 Marketo Adobe Private 4,750 Oct-18 Red Hat IBM 63% 34,000 Nov-18 Qualtrics SAP Private 8,000 Dec-18 MINDBODY Vista Equity 68% 1,900 Feb-19 Elie Mae Thoma Bravo 47% 3,700 Jun-19 Looker Google Private 2,600 Jun-19 Tableau Salesforce.com 63% 15,700 Jun-19 Medidata Dassault Systemes 17%* 5,700 BOLD: owned in Fund Source: 1. Dealogic, The MergerSight Group, 2018. 2. Bloomberg and Polar Capital, June 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. 16
… And The ‘Digital Transformation’ Imperative 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 Proportion of CEO’s undertaking a ‘transformation’2 “The Digital Giants Are Coming!”2 Source: 1. Baird 2. Gartner 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. 17
Digital Disruption Source: Polar Capital, 31 July 2019. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 18
New Networks / Unprecedented Scale Centralised, decentralised and distributed networks1 >6bn daily searches 636m active users 8 apps > 1bn MAU $768bn GMV in F18 2.3bn MAU, 1.5bn DAU WeChat: >1bn MAU 27+ minutes/user/day 45bn daily messages 101m US prime subs >10bn rides 48% of US ecommerce 600+ cities Source: 1. RAND corporation, ‘Where wizards stay up late’’. Other Sources: Google: Ardorseo, 2018, The Verge 2018. Facebook: Expanded Ramblings, Fool.com. 2018. Tencent: Tencent, Q3 2018, Business of Apps, 2018. Amazon: Fortune.com, 2018. eMerketer.com. Alibaba: Fool.com, 2019. Uber: Uber, July 2018. 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. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 19
Digital Disruption: Artificial Intelligence (AI) Collapsing Computing Costs (1850 – 2010)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. Aiimpacts.org. 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. 20
Digital Disruption: Retail US Retail Store Closings: 1995 – 2017 YTD1 Amazon Prime Subscriber Growth: 2012 – 20171 “I don't think retail is dead. “This business is all about reducing response time. Mediocre retail experiences are dead” In fashion, stock is like food. It goes bad quickly” - Neil Blumenthal, Co-CEO @ Warby Parker2 - Jose Maria Castellano, former CEO Inditex Group3 Source: 1. KPCB, BI Intelligence. 2. KPCB. 3. Kornit Digital IR presentation. 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. 21
Digital Disruption: Brands Amazon Basics, US online market share1 “Big brands are being nibbled to death”2 – IAB CEO Randall Rothenberg Source: 1. Amazon market share as at August 2016. 2. http://www.businessinsider.com/new-breed-programmatic-first-ad-agencies-grabbing-business-ignored-by-traditional-firms-2018-4?IR=T 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. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 22
Digital Disruption: Brands An extra large, wet, double-shot Coffee caramel macchiato (and WiFi) £1.00 £4.00 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. 23
Digital Disruption: Distribution > Content Global recorded music, inflation adjusted sales1 Listening hours / unique artists played (2014-2017)2 • Streaming now c. 47% of recorded music sales1 led by Spotify (217m active, >100m paid subs)2 • Video disruption: YouTube (>1.8bn MAU)3, Netflix (>150m subs)4, Twitch (10.8bn hours/year)5 • Fortnite (250m registered / 0.8m record concurrent players) disrupting gaming via FtP model6 • Delivery becoming disruptive in the restaurant industry: takeaway TAM > entertainment in the UK7 Source: 1. Quartz Creative, 2019. 2. Spotify, 2017. 3. Business Insider, 2018. 4. Market Realist, 2019. 5. Sullygnome.com, 29 August 2019. 6. Games Radar. 7. https://jeweb-11431-s3.s3.eu-west- 2.amazonaws.com/application/files/2215/0045/3682/TAKEAWAY_ECONOMY_REPORT_2017.pdf 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. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 24
Digital Disruption: Demographics How Couples Meet (1940 – Present)1 Spending Breakdown: Chinese Millennials2 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. Goldman Sachs, December 2016. 3. www.tvlicensing.co.uk 4. Visual Capitalist. 5. IBM, 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. 25
Digital Disruption: The Next Interface Is Voice Words recognised by machine: 1970 - 20161 Amazon Echo Installed Base / Skills2 • Humans speak 150 vs. type 40 words per minute on average1 • Recognition accuracy shift from 95% to 99% will drive ubiquity of voice as an interface1 • By 2020, 75% of US households will own a voice-activated smart speaker3 • By 2020, c.50% of all searches via images or speech4 Source: 1. Baidu / KPCB, 2016. 2. Bond Internet Trends 2019. 3. Instead Knowledge, How Speech Recognition Is Set to Disrupt, 2018. 4. Forbes, 2017, Optimizing For Voice Search Is More Important Than Ever. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 26
Investment Themes Digital Marketing / Advertising Internet advertising worth $273bn in 20182, 43% of total ad spending2 Alphabet and Facebook combined account for c.90% of US market growth3 Brand Building → Transaction facilitation eCommerce eCommerce est. $3.5tr in 2019, c14% of total retail sales1 China the largest market at $1.9tr, more than 3x the US1 Number of SKU → Payments, Logistics + Ecosystem Payments / Fintech Global mobile payments worth $2.73tr by 20234 2.1bn consumers to pay via mobile wallet in 20195 eCommerce → behavioural change / disruption Cloud Infrastructure / Security By 2021, 44% of application workloads expected to run in Cloud services5 Security tailwinds include data breaches, regulation, digitalisation, cyberwarfare Under-utilisation / cost arbitrage → Elastic Compute / TAM expansion Source: 1. eMarketer, June 2019; 2. eMarketer, March 2018; 3. BoA / ML / Zenith, US market Jan 18; 4. Payments cards and mobile, 2019. 5. Globe News Wire. 6. MS, Geekwire July 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. 27
Investment Themes Software / SaaS “Reshaping The World” Usage based pricing disrupting $150bn2 maintenance market As penetration rises (~30% today5 ) expect more strategic M&A by incumbents SMB adoption / TAM expansion→ Enterprise / ‘rip and replace’ Digital Entertainment $122bn gaming market1 growing to $152bn by 2020E driven by mobile, DLC / MTX1 eSports: 165m enthusiasts1 and a market worth $906m in 2018E, +38% y/y6 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 / 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 2018; 2. UBS, Jan 2016; 3. marketsandmarkets, May 2018; 4. Cult of Mac, 2014. 5. IDC. 6. NewZoo May 2017. 7. ZDNet, 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. 28
Investment Themes Eight core theme breakdown (31 January 2017 – 31 July 2019) 24% 23% 22% 21% 20% 19% 18% 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 eCommerce / Digital Payments Digital Marketing / Advertising Cyber / Physical Security Cloud Infrastructure / Artificial Intelligence Software / SaaS Digital Content / Games Software Robotics / Automation Semiconductor / Material Science Apple/smartphone related Other / Legacy Other / Growth Market hedge / beta offset Source: Polar Capital, 31 July 2019. 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
Online Advertising / Digital Marketing • Global online advertising worth $283bn in 2018, c. 46% of total worldwide advertising spend1 • Online share of US advertising now commensurate with % time spent in media (51% vs. 20%/33% in 2010)…2 • …but TV + radio + print still c.49% of US ad spending and new dollar pools (trade spend / direct marketing) emerging2 • US digital media consumption accelerated in 2018 (to +7% y/y) aided by highly favourable demographic trends3 Worldwide Digital Advertising Spending ($bn): 2018 – 20233 TAM expansion as new dollar pools emerge (2009 – 2019E)4 Sample Holdings Sample Holdings Source: Polar Capital, unless otherwise stated. 1. eMarketer, 2019. 2. Bond Internet Trends 2019 3. Bond Internet Trends 2019 BoAML/Zenith, US market January 2018. 4. KPCB, 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. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 30
eCommerce • eCommerce growth continues unabated and is forecast at $3.5tr in 2019E, representing c.14% of total retail sales1 • Amazon’s share of US e-commerce now 47%, 4.6% 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 Global Mobile Commerce: 2016 – 2021E3 Sample Holdings Source: Polar Capital, unless otherwise stated. 1. eMarketer, June 2019. 2. eMarketer, Feb 2019. 3. Statista. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 31
Payments / 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 • Disruption inevitable: mobile payments cost Chinese banks $23bn in 2015, expected to reach $60bn by 2020E4 Proximity Payment Penetration of Mobile Users, 20195 Personal Loan Balance Market Share6 Sample Holdings Source: 1. Payments cards and mobile, 2019. 2. Globe News Wire, 2018. 3. E&Y. 4. Caixin Global, 2019. 5. eMarketer. 6. William Blair. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 32
Software (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 – Present)2 SaaS / Cloud Software (2012 – 2022E)1 Sample Holdings Source: 1. KeyBanc, 2019. 2. Cornerstone, Q1’19. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 33
Digital Entertainment • Video games: $122bn market in 2017 → $152bn by 2020E (~10% 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 ($906m) but massive audience (165m enthusiasts + 215m occasional viewers) watching 6.6bn hours4 Global Games Market ($bn) 2017 – 2020E1 Share of global recorded music sales, by format5 Sample Holdings Source: 1. Newzoo, Apr 2018. 2. Polygon, September 2018 & The Telegraph, 2019. 3. RBC, August 2019. 4. Influencer Marketing Hub. 5. Superdata (April data) May 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. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 34
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 likely to be felt throughout the IT stack - $1tr of enterprise IT spending at risk4 • Cost of cybercrime estimated at $6tr by 2021 with cybersecurity playing a vital role in protecting the digital economy1 Amazon + Azure + Google Cloud Revenue: Q1’15-Q1’195 Enterprise Computing Workloads: 2016 – 2024E6 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, August 2018 5. KeyBanc, Q119 6. Gartner, August 2016. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 35
The 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. 36
Connectivity: 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 (
Smartphones / Apple • The c.1.5bn unit smartphone market is mature: global penetration at c.66%1 and units expected to decline 2.5% y/y in 2019E1 • Apple remains unique: premium pricing + services. Wearables (+50% y/y in FQ3’19) 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 Smartphone replacement cycles (2007 – 2020E)4 Sample Holdings Source: 1. Gartner, August 2019. 2. UBS, 16 August 2019. 3. Business Insider, 2018. 4. Statista, 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. 38
Industry 4.0: Automation / Simulation • The Fourth Industrial Revolution underway driven by Cyber Physical Systems, Internet of Things and Cloud Services • Sensor data + connectivity = design software / simulation expands into product lifecycle management / ‘digital twin’ • Over 25% of manufacturing tasks that can be automated may be performed by robots over the next decade1 • Human-robot collaboration will radically alter the way factories operate, making highly versatile production lines possible Declining IoT sensor costs (2004 – 2020E)2 Global shipments of industrial robots (2016-205E)3 Sample Holdings Source: 1. Boston Consulting Group, September 2015. 2. IoT One, MongoDB. 3. IC Insights. 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. 39
Emerging Themes Source: Gartner, August 2019. For non-US investor use only. Please refer to the Important Information at the end of this presentation. 40
Autonomous Vehicles • Automotive market ripe for reinvention: connectivity / infotainment, advanced driver assistance systems (ADAS) / autonomous driving, vehicle electrification • 1.25m deaths worldwide due to vehicle crashes in 2014 while 94% of US accidents involve human choice / error1 • Global ADAS / autonomous vehicle penetration forecast to grow from 12% in 2015, to 48% in 2020 and 70% by 20252 • Fully autonomous driving by 2020? Technically yes – Waymo cars have already completed 5m miles3 • Car ownership? Depreciating, underutilised asset used just c. 4% of the time → shared private rides becoming mainstream4 “We are approaching the end of the automotive era. The tipping point will come when 20-30% of vehicles are fully autonomous. Countries will look at the accident statistics and figure out that human drivers are causing 99.9% of the accidents”5 – Bob Lutz, former vice Chairman GM Source: 1. https://waymo.com/tech/. 2. KPCB, 2016. 3. https://waymo.com/tech/. 4. Baidu / KPCB, 2016. 5. www.autonews.com. Chart from https://waymo.com/tech/. 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. Forecasts contained herein are for illustrative purposes only and does not constitute advice or a recommendation. 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 professional investor use only. Please refer to the Important Information at the end of this presentation. 41
PCT Positioning Sector exposure (%) Market cap exposure (%) Software 28.0% Semiconductors & Semiconductor Equipment 17.3% Large Cap (>$10bn) 77.9% Interactive Media & Services 16.2% Mid Cap (>$1bn - $10bn) 20.5% Technology Hardware, Storage & Peripherals 8.5% Internet & Direct Marketing Retail 5.9% Small Cap (
PCT Positioning Largest overweights Largest underweights Market cap exposure versus benchmark Advanced Micro Devices Alphabet Aixtron Amadeus IT Holding Alteryx Apple Large-cap -11.7% Amazon Broadcom Analog Devices Cisco Systems Arista Networks Cognizant Technology Solutions Aspen Technology eBay Chegg Facebook Mid-cap 11.2% Dolby Laboratories HP IAC/InterActiveCorp IBM LivePerson Infosys Mastercard Intel Small-cap 0.9% Mimecast Intuit PayPal Holdings Micron Technology Proofpoint Microsoft -20% -15% -10% -5% 0% 5% 10% 15% ServiceNow Oracle Tokyo Electron SAP Uber Technologies Shopify Visa SK Hynix Zendesk Workday Source: Polar Capital, as at 31 July 2019. 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. 43
PCT Positioning Thematic breakdown1,2 Thematic breakdown relative to benchmark (%)1,2 10.0% Legacy 10% 5.0% Internet 23% 0.0% -5.0% Semiconductors 23% -10.0% Cloud: applications -15.0% 16% -20.0% Smartphones 1% Apple 6% Medical Technology -25.0% Big data / AI Smartphones Emerging Solar IoT Materials Internet Apple Other Legacy Cloud: applications Cloud: infrastructure Payments Automotive Factory automation/robotics Video Games Medical Technology Semiconductors 3D Printing Cybersecurity Electric Vehicles 1% Electric Vehicles Solar 0% 0% Cloud: infrastructure Emerging 1% 4% Payments Cybersecurity 3D Printing Other 4% 2% 0% 0% Automotive IoT Factory 2% Big data / AI 1% automation/robotics 2% 5% Source: Polar Capital, 31 July 2019. 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. 44
PCT Positioning Index Index ex PCT1 Sales growth 2020 – PCT vs. benchmark2 Top 100 Apple PE (Median) CY 29.5 21.2 21.3 50.0 NY 25.1 17.6 18.1 Earnings growth (Median) CY 4.8 5.5 5.6 45.0 NY 25.1 14.9 15.1 EV/Sales (Mean) CY 7.9 6.0 6.0 40.0 NY 6.3 5.2 5.2 EV/Sales (Median) CY 6.7 4.6 4.7 35.0 NY 5.6 4.2 4.2 % of Portfolio EV/Sales (Weighted)** CY 7.2 5.6 6.0 30.0 NY 6.0 4.9 5.2 Sales Growth (Mean) CY 12.6 7.4 7.4 NY 24.0 11.1 11.2 25.0 Sales Growth (Median) CY 11.1 5.4 5.4 NY 17.1 8.8 8.9 20.0 Sales Growth (Weighted)** CY 13.2 8.8 10.1 NY 18.3 12.2 13.0 15.0 Gross Margin (Mean) 59.7 57.3 57.5 Gross Margin (Median) 63.6 59.0 59.1 10.0 Gross Margin (Weighted)** 58.3 57.4 60.1 Net Cash as % mkt cap Avg 6.2 -1.6 -1.7 5.0 Wgtd** 7.0 5.6 4.8 Market Cap ($m) Mean 78,186 81,678 73,484 0.0 Median 9,465 26,946 26,471 50 Wgtd** 324,359 443,938 380,288 PCT GROSS WEIGHT BENCH GROSS WEIGHT Source: 1. Polar Capital, 6 August 2019. Figures in blue exclude Apple (12.4% gross) from the Index Top 100. CY = Current Year, NY = 2018 calendar year estimates. 2. Polar Capital, 7 August 2019. 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. 45
Appendix For non-US investor use only. Please refer to the Important Information at the end of this presentation. 46
Team Biographies Ben Rogoff – Partner Experience: 23 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 23 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: 21 years Nick joined Polar Capital in September 2007 and has 21 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: 12 years Xuesong joined Polar Capital in May 2012 and has 12 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. 47
Team Biographies Cont. Fatima Iu (Maternity Leave) Experience: 13 years Fatima joined Polar Capital in April 2006 and has 13 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: 8 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: 34 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. 48
Team Biographies Cont. Brad Reynolds Experience: 11 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: 7 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: 3 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. 49
Important 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 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. 50
You can also read