polar capital technology trust · 2019-01-04 · for non-us investor use only. please refer to the...

1For non-US investor use only. Please refer to the Important Information at the end of this presentation.

Polar Capital Technology Trust

Full-year results presentation

17 July 2018

This presentation is for non-US investor use only

www.polarcapital.co.uk


Results As At 30 April 2018

Source: Polar Capital, 30 April 2018.

Year ended

30/04/17

Year ended

30/04/18

Change

(y/y)

Net Assets £1,252,525,000 £1,551,611,000 +23.9%

NAV per ordinary share 945.39p 1159.69p +22.7%

Price per ordinary share 947.00p 1148.00p +21.2%

Benchmark Change +17.1%

Ordinary shares in issue 132,487,000 133,795,000 + 1.0%


PCT As At 29 June 2018

Year ended

30/04/17

Year ended

30/04/18

Change

(y/y)

As at

29/06/18

Net Assets £1,252,525,000 £1,551,611,000 +23.9% £1,703,063,296

NAV per ordinary share 945.39p 1159.69p +22.7% 1272.60p

Price per ordinary share 947.00p 1148.00p +21.2% 1256.00p

Benchmark Change +17.1%

Ordinary shares in issue 132,487,000 133,795,000 + 1.0% 133,825,000

Source: Polar Capital, 30 June 2018.


Full Year Review

DJ World Technology vs. FTSE World TR since Apr 2017

Source: Bloomberg, 16 July 2018.

• Global equities (FTSE World + 7.7%) added to

their post financial crisis gains as the

strengthening global economy provided upward

momentum to earnings estimates that also

benefited from the weaker USD and US tax

reform.

• Sterling strength (+6.5%/+4.5% vs. Dollar /

Yen) dampened overall returns while USD

weakness / higher risk free rates saw the US trail

global equities.

• Technology stocks outperformed again (DJ

World Tech +17.1% in Sterling terms) due to

superior earnings growth and a valuation re-

rating. In addition, earnings benefited from

macroeconomic tailwinds and fiscal reform.


Full Year Review

US technology small caps vs. large caps since Apr 2017

Source: Bloomberg, 16 July 2018. Past performance is not indicative or a guarantee of future returns.

• Small-cap US technology stocks

underperformed during the year (c. 7%) as

earlier Trump-related relative strength unwound.

• NAV performance (+22.7%) exceeded the

benchmark by 5.6%.

– Key positives: Amazon, Square, Software-as-

a-Service / computer gaming stocks.

– M&A subdued (only one take-out)

– Stock selection positive across all major

regions and all market-cap tiers

– Negatives: AMD / liquidity


Mr Chris Wittstock (based in US)

Senior Investment Analyst

Investment experience: 34 years

Sectors: US Technology / Software

• Technology is at the core of the Polar Capital business

• One of the largest technology franchises in Europe with c.US$4.7bn under management

• Seven dedicated technology specialists – strong multi-cycle track record

Introduction To The Team

Senior Fund Managers

Polar Capital Technology Trust

US$2.2bn

Analysts / Fund Managers

FundsGlobal Technology Fund

US$2.5bn

Mr Nick Evans

Senior Fund Manager


Sectors: US (small/mid-cap)

Mr Ben Rogoff

Director - Technology


Sectors: US (mid/large-cap)

Miss Fatima Iu

Fund Manager/Analyst


Sectors: Europe (all-cap), global

security, networking, energy & med tech

Mr Xuesong Zhao

Fund Manager/Analyst


Sectors: Asia (all-cap), global

semi / Semi-cap equipment

Source: Polar Capital, 29 June 2018. The Polar Capital Technology Trust was awarded the Money Observer Rated Fund award.

Mr Bradley Reynolds

Investment Analyst


Sectors: US (all-cap) – Internet &

digital media

Mr Paul Johnson

Investment Analyst


Sectors: Emerging Tech inc.

3D printing, gaming & autos


Investment Framework

4,000+ universe

Thematic overviewDynamic definition of technology

Real-world changes in user behaviour

What we look forS-Curve inflections

Secular themes / pure-plays

What we avoidLast-generation winners

Public venture capital

Portfolio constructionBottom-up stock picking

Benchmark aware

ValuationGrowth bias – rev/earnings / cash flow

Price targets (bull/base/bear) / Risk reward

Sell disciplinesMis-execution / model change

Price level attainmentPortfolio

Source: Polar Capital.


Slope of enlightenment

InnovationTrigger

Trough ofdisillusionment

Plateau ofproductivity

Volumetric Displays

Neuromorphic Hardware

Deep Learning

Conversational

User Interface

IoT Platform

Augmented Data Discovery

Serverless PaaS

Smart Workforce

Quantum Computing

5G

Artificial General

Intelligence

Cognitive Computing

4D printing

Commercial UAVs (Drones)

Brain Computer Interface

Edge Computing

Smart Robots

Cognitive Expert Advisors

Enterprise Taxonomy and

Ontology Management

Virtual Personal Assistants Machine Learning

Software Defined Security

Autonomous Vehicles

Nanotube Electronics

Connected Home

Blockchain

No growth

uncertain / declining OM%

Thematic Investing: Hype vs. Reality

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.

Positioning of themes/products above is only intended to be indicative of approximate penetration/maturity

Maturity / Decline“Blue Sky” Emerging Mainstream

R&D

negative OM%

High growth

expanding OM%

Low growth

stable OM%

Sale

s

Early stage

investors Index / ETF

Polar Capital Global Technology Team

“Value Trap”?Developed market smartphones

PND/GPS

LCD TV / HDTV

Enterprise software

PVR/DVR (Sky+)

Home Broadband

Notebooks

ERP / Traditional software

Desktop PC / printers

DVD

Feature phones / 3G

VCR

Digital Camera (DSC)

Mainframe

IT Services

Electric

vehicles

Internet of Things (IoT) / M2M communication

Enterprise SSD / 64 bit ARM architecture

Mobile / social / location based advertising

Clean energy (solar & wind)

Wireless Networking (802.11n / ac)

Mobile broadband (4G / LTE)

Software as a Service (SaaS)

Server & Storage Virtualisation

Virtual Reality

EM smartphones & Ecommerce/Internet

Tablets / Ultrabooks (including Mac Air)

Smart agriculture / factory automation / robotics

Voice over LTE / WiFI (VoLTE / VoWiFI)

Cloud computing (public/private – PaaS/IaaS)

Big data / predictive analytics / Hadoop

Cyber security / app control / IPS

Software defined networking (SDN) / NFV / 100G optical / FTTx)

Mobile payments / mCommerce / NFC / biometrics

Moore’s stress / rising semi capital intensity

3D printing

eCommerce / online advertising

Multiplayer / mobile gaming / streaming media

Exp

ecta

tio

ns

Smart dust

Virtual Reality

TimeYears to mainstream adoption:

Human Augmentation

Less than 2 years 2 to 5 years 5 to 10 years Obsolete before plateauMore than 10 years

Augmented Reality

Searching for revenue growth and

cash flow inflections

Energy

Storage

Deep Reinforcement

Learning

Digital Twin

Peak ofInflated

expectation


Technology: PE Expansion In-line With Market

Source: Ned Davis, 13 July 2018. 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.

Absolute sector valuation (PE):

Compelling vs. history (1992 – present)

Relative sector valuation (PE):

At / around market level – with superior balance sheet

http://www.ndr.com/vendorinfo/


Undemanding ‘Next-Generation’ Valuations

Software as a Service (SaaS) valuation:

EV/forward 12 month revenue multiples2

Internet valuation (equal cap weighted):

EV/forward 2 year EV/EBITDA levels1

Source: 1. Bloomberg, 30 May 2018. UCITS Internet sector (AMZN/FB/GOOG/BABA/700HK/PYPL) vs Bank of America Merrill Lynch Internet sector Index. 2. KeyBanc, Capital Markets, June 2018.

Past performance is not indicative or a guarantee of future returns.

0

5

10

15

20

25

Jan-13 Oct-13 Jul-14 Apr-15 Jan-16 Oct-16 Jul-17 Apr-18

ML Internet Index


Undemanding ‘Next-Generation’ Valuations

IT security valuation:

EV/forward 12 month revenue multiples1

Cloud vs legacy valuation

EV/trailing 12 month revenue multiples2

Source: 1. Citi Research, FactSet, June 2018. 2. Merill Lynch, June 2018. Past performance is not indicative or a guarantee of future returns.

0x

2x

4x

6x

8x

10x

12x

14x

Ma

r-10

Se

p-1

0

Ap

r-11

Oct-

11

Ma

y-1

2

Nov-1

2

Jun

-13

Dec-1

3

Jul-1

4

Fe

b-1

5

Au

g-1

5

Ma

r-16

Se

p-1

6

Ap

r-17

Oct-

17

Ma

y-1

8

EV

/ tr

aili

ng

12

m

on

th s

ale

s

LEGACY CLOUD


Select M&A activity2

Date Target Acquirer Premium Value $m

May-12 Ariba SAP 19% 4,324

Aug-12 Kenexa IBM 42% 1,260

Oct -12 OPNET Riverbed 31% 912

June-13 ExactTarget Salesforce 50% 2,419

Jul -13 Sourcefire Cisco 29% 2,185

Dec-13 Responsys Oracle 38% 1,438

Sept-14 Concur SAP 28% 7,241

Nov-14 Sapient Publicis 70% 3,264

Feb-15 Freescale NXP 2% 17,469

Apr-15 Informatica PE consortium 11% 4,784

May-15 Altera Intel 18% 14,354

Oct-15 KLA-Tencor Lam Research 27% 10,955

Nov-15 King Digital Activision Blizzard 16% 4,881

Apr-16 Ruckus Wireless Brocade 45% 1,044

Apr-16 Cvent Vista Equity 68% 1,408

Jun-16 QLIK Technologies Thoma Bravo (PE) 5% 2,899

Jun-16 LinkedIn Microsoft 50% 26,401

Jun-16 Demandware Salesforce 56% 2,779

Jul-16 ARM Holdings SoftBank 43% 22,897

Jul-16 Netsuite Oracle 19% 8,716

Sept -16 Arcam GE 53% 688

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

Source: 1. Centaur Partners, December 2015. 2. Bloomberg and Polar Capital, March 2018. 3. E&Y, June 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.

Valuations Supported By Elevated M&A…

Cash & equivalents at top 25 tech companies3

Technology M&A since 19951


Source: 1. Gartner Q417. 2. Factset, Q118. 3. https://siliconangle.com/blog/2018/02/28/citing-acceleration-demand-salesforce-com-beats-earnings-estimates/. 4. Baird.

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.

….And Strengthening Fundamentals

S&P 500 Revenue Growth CY18E2

Worldwide IT spending (2016 – 2022E)1

“I’ve never seen a demand environmentlike this. Every CEO is using the positiveeconomic environment, as well as thedomestic tax cuts, as a way to acceleratetheir digital transformation.”3

- Mark Benioff, CEO Salesforce.com

“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”4

https://siliconangle.com/blog/2018/02/28/citing-acceleration-demand-salesforce-com-beats-earnings-estimates/


Digital Disruption

Source: Polar Capital.


Centralised, decentralised and distributed networks1

Source: 1. RAND corporation, ‘Where wizards stay up late’’. Other sources: Amazon https://www.scrapehero.com/many-products-amazon-sell-january-2018/ https://www.nasdaq.com/article/youll-never-believe-

amazons-share-of-the-e-commerce-market-cm904080, techcrunch; Alibaba https://seekingalpha.com/article/4170052-alibaba-group-holding-limited-2018-q1-results-earnings-call-slides May 2018; Tencent, August 2017;

Facebook, https://zephoria.com/top-15-valuable-facebook-statistics/ ; Google, August 2017; Booking.com, July 2017; Airbnb, https://press.atairbnb.com/fast-facts/ March 2018; Uber, August 2017. 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.

562m products, 100m prime subs

44% of 2017 US ecommerce

c.5m listings

>300m guest arrivals

>5bn rides, 78 countries

1.3m properties online

1.5m room nights/day

>2tr annual searches

5 apps > 1bn MAU

WeChat: >1bn MAU

2.2bn MAU, 1.45bn DAU

20+ minutes/user/day

552m active users

$768bn GMV in F18

Digital Disruption: New Networks / Scale

https://www.scrapehero.com/many-products-amazon-sell-january-2018/

https://www.nasdaq.com/article/youll-never-believe-amazons-share-of-the-e-commerce-market-cm904080

https://seekingalpha.com/article/4170052-alibaba-group-holding-limited-2018-q1-results-earnings-call-slides

https://zephoria.com/top-15-valuable-facebook-statistics/

https://press.atairbnb.com/fast-facts/


Collapsing Computing Costs (1850 – 2010)1

Source: 1. Aiimpacts.org (https://aiimpacts.org/trends-in-the-cost-of-computing/) 2. Gartner http://www.gartner.com/newsroom/id/3784363. 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.

“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

Digital Disruption: Artificial Intelligence (AI)

https://aiimpacts.org/trends-in-the-cost-of-computing/)

http://www.gartner.com/newsroom/id/3784363


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.

Digital Disruption: Retail

US Retail Store Closings: 1995 – 2017 YTD1 Amazon Prime Subscriber Growth: 2012 – 20171

“I don't think retail is dead.

Mediocre retail experiences are dead.”

- Neil Blumenthal, Co-CEO @ Warby Parker2

“This business is all about reducing response time.

In fashion, stock is like food. It goes bad quickly”

- Jose Maria Castellano, former CEO Inditex Group3


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.

Digital Disruption: Brands

Amazon Basics, US online market share1

“Big brands are being nibbled to death”2

– IAB CEO Randall Rothenberg


An extra large, wet,

double-shot

caramel macchiato

(and WiFi)

Coffee

£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.



Source: 1. KPCB 2017. 2. https://www.forbes.com/sites/johnkoetsier/2018/04/04/apple-music-hits-40m-paid-subscribers-gaining-ground-on-spotifys-71m/#7077ce1ee463 3. KPCB 2017.

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.

Digital Disruption: Content (Is Not King)

• Number of TV channels watched <10% of those received while Pay TV ARPU 10-15x > Netflix 1

• Spotify = 71m paid subscribers2, c.20% of global music industry revenues3

US Recorded Music Revenues by Format (US$bn)1 US Network TV Minutes Delivered1

https://www.forbes.com/sites/johnkoetsier/2018/04/04/apple-music-hits-40m-paid-subscribers-gaining-ground-on-spotifys-71m/#7077ce1ee463


Source: 1. https://www.pcgamesn.com/fortnite/fortnite-vs-pubg-map-players-graphics-gameplay-weapons-review#playercount 2. www.nme.com/news/fortnite-most-watched-game-youtube-history-2280172




• Free-to-play ‘shooter’ where you battle 99 other players solo / team

• Released in July 2017 but became popular once a ‘Battle Royale’

mode was introduced following the success of PC-based

PlayerUnknown’s Battlegrounds (PUBG)

• More than just a ‘Call of Duty for kids’ – a new genre, easy to play

including random elements to the gameplay, amusing emotes and

skins (rather than pure skill / ‘pay to play’)

• >45m players and over 3m concurrent users1 and now the most

watched game in YouTube history: 2.4bn views in Feb 182

• Monetisation via exclusive (time-sensitive) skins, items and emotes

https://www.pcgamesn.com/fortnite/fortnite-vs-pubg-map-players-graphics-gameplay-weapons-review#playercount

http://www.nme.com/news/fortnite-most-watched-game-youtube-history-2280172


Source: 1. Epic Games.





Cyber Security$58bn market in 2016, 6% CAGR to 2019, only ~14% of total S/W spending8

Protect most valuable assets – intangibles (IP, Customers & Reputation)

Block & Protect → Detection, Mitigation & Response

Digital Advertising / MarketingInternet advertising worth $180bn this year6, Social ads ~16% only penetrated6

Social Media ads in US growing 50% in every half year since 20127

Brand Building → Transaction facilitation

Core Investment Themes

eCommerce / paymentseCommerce worth $342bn in the US2 and $467bn in China4 last year

Penetration just 9% / 8% / 11% in US2 / Europe3 / China5

Number of SKUs→ Logistics + Ecosystem

Cloud Infrastructure$137bn Public Cloud Market (44% CAGR) VS ~$650bn legacy TAM (6% CAGR) by 20201

$19bn AWS LTM revenue growing >49% y/y, still innovating9

Under-utilisation / cost arbitrage→ Elastic Compute / TAM expansion

Source: 1. Goldman Sachs, Nov 2016, IaaS + PaaS; 2. US Census Bureau, Penetration of US is calculated by Polar Capital using 2015 adjusted retail sales ex Auto and Gas Station; 3. European B2C Ecommerce

Report 2016; 4. iResearch, May 2016, B2C only; 5. Nielson, Jan 2016; 6. Zenith/Bloomberg; 7. PwC/IAB 2016 Internet Advertising Revenue Half-Year Report; 8. Macquarie, July 2016.

9. https://www.geekwire.com/2018/aws-grows-48-percent-q1-2018-hit-5-4b-revenue/


months is available upon request.

https://www.geekwire.com/2018/aws-grows-48-percent-q1-2018-hit-5-4b-revenue/


Core Investment Themes

Source: 1. Goldman Sachs, Nov 2016, IaaS + PaaS; 2. UBS, Jan 2016; 3. marketsandmarkets, Feb 2016; 4. http://www.cultofmac.com/305200/foxconns-promised-iphone-building-robot-army-running-late/

5. NewZoo, June 2016; 6. PwC <Global Entertainment and Media Outlook 2016>, Global Box Office is estimated to be $36.8 in 2016; 7. NewZoo, June 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.

Software As A ServiceUsage based pricing disrupting $150bn2 maintenance market

As penetration rises (~27% today2 ) expect more strategic M&A by incumbents

SMB adoption / TAM expansion→ Enterprise / ‘rip and replace’

Robotics / Automation$80bn Market1 by 2022 (~12% CAGR3) 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

“More than Moore”Rising capital intensity due to end of ‘Moore’s Law’ (transistor costs stop falling at 20nm)

Greater focus on integration / power consumption VS performance / density

Lithography → Materials Improvement / Process Innovation

Gaming$100bn gaming market5 c. 3x > movie box office6, Mobile gaming growing c.15% per annum7

148m eSports Audience5,6, +29% YoY, $3.3 annual rev per fan5,6 VS $20 of NBA5 VS $60 of NFL5

Leisure → Connected / Competitive

http://www.cultofmac.com/305200/foxconns-promised-iphone-building-robot-army-running-late/


eCommerce / Payments

Source: Polar Capital, unless otherwise stated. 1. Based on eMarketer forecast, August 2016, 2016. 2. UBS, 2016. 3. KPCB 2017.



Polar Capital.

• eCommerce growth continues unabated and is forecast to reach $1,9tr in 2016, representing c. 8.7% of total retail sales1

• Mobile becoming an integral part of the shopping experience, enabling greater volumes and new use cases (eg. Uber)

• Improvements in payments / delivery continue to reduce online buying friction / change user behaviour and expectations

• Sharing Economy goes mainstream: shared transportation / accommodation markets worth $350bn / $139bn by 20202

US Online Retail Sales: 2010 - 20163

Sample Holdings


• The shift to mobile remains the central and dominant trend in payments while merchant adoption represents the biggest obstacle

• Over time the smartphone is likely to replace the physical wallet, aided by the use of biometric authentication

• As payments are taken out of the banking system, banks are being reduced to ‘dumb pipes’ as value moves to the networks

• Distributed ledger technology: a longer-term opportunity, enabling payment systems to operate in a decentralised framework

Source: 1. Statista, 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.

Global Mobile Payments (2010 – 2017E)1

Sample Holdings

eCommerce / Payments


Digital Advertising / Marketing

Source: Polar Capital, unless otherwise stated. 1. Based on eMarketer forecast, October 2016. 2. Goldman Sachs/Magna Global, January 2017. 3. KPCB, 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. 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.

US Internet Advertising: 2009 – 20163

• Global online advertising expected to reach $195bn in 2016, c. 20% of total advertising spend1

• Paid Search and Social Media markets expected to grow 16% and 33% respectively in 20172

• Size matters: US market dominated by Alphabet and Facebook, who combined captured c. 75% of overall growth in 20162

• Growth drivers: continued improvement in ROI measurement, video content / live streaming, location-based targeting

Sample Holdings


Digital Advertising / Marketing

Source: Polar Capital, unless otherwise stated. 1. Based on eMarketer forecast, October 2016. 2. Goldman Sachs/Magna Global, January 2017. 3. KPCB, 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. All opinions and estimates


Sample Holdings

• Global online advertising expected to reach $195bn in 2016, c. 20% of total advertising spend1

• Paid Search and Social Media markets expected to grow 16% and 33% respectively in 20172

• Size matters: US market dominated by Alphabet and Facebook, who combined captured c. 75% of overall growth in 20162

• Growth drivers: continued improvement in ROI measurement, video content / live streaming, location-based targeting

% of Time Spent in Media vs. % of Advertising Spending, USA 20163


Software As A Service (SaaS)

Source: Polar Capital unless otherwise stated.1. IDC. 2. IDC, Centaur Partners, 2014. 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.

• The rental / usage-based model is expanding the software market while threatening incumbent franchises / maintenance

• Enabled by Cloud, software as a service (SaaS) targets a $164bn opportunity by 2022, c. 30% penetrated today1

• Recent acceleration in M&A supportive of our view that Cloud disruption is intensifying

• Preferred areas: enterprise applications, digital marketing, unified communications as a service + new opportunities e.g. Axon

Worldwide SaaS and Cloud Software (2012 – 2017E) 2

Sample Holdings


Gaming

• Video game industry worth $100bn in 2016 → $118bn by 2019, driven by new console cycle, mobile and AR/VR1

• Improving market dynamics: industry consolidation + focus on blockbuster franchises = greater scale / profitability / barriers to entry

• The shift to digital distribution (full game digital downloads / additional content) expands the TAM and structurally improves margins

• Meteoric rise of ‘Battle Royale’ games such as PUBG and Fortnite (45m players, 3.4m concurrent2) = risk and opportunity?

Source: 1. Newzoo, Apr 2016. 2. https://www.pcgamesn.com/fortnite/fortnite-vs-pubg-map-players-graphics-gameplay-weapons-review#playercount . 3. Evercore ISI, January 2016.



Polar Capital.

22.0 26.9 32.0 36.0 40.38.3

10.010.7

12.413.027.5

28.929.8

30.430.8

25.7

26.9

27.7

29.329.7

91.8

99.6

106.5112.5

118.6

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2015 2016E 2017E 2018E 2019E

Smartphone Tablet Handheld TV/Console Casual Webgames PC/MMO

Global Games Market ($bn) 2015 – 2019E3

Sample Holdings

https://www.pcgamesn.com/fortnite/fortnite-vs-pubg-map-players-graphics-gameplay-weapons-review#playercount


Cyber Security

• Security remains one of the more attractive areas within traditional IT budgets, expected to grow c. 10% through 20201

• Favourable regulatory backdrop likely to persist – US National Action Plan calls for a c. 35% increase in spending to $19bn in FY172

• However, priorities shifting from ‘block and protect’ to rapid detection and response (<10% of budgets in 2014 → 60% by 2020)3

• Preferred areas: email security, privileged account management (PAM), vulnerability management (VM) and SIEM

US cyber security spending: 2009 – 20174

Source: 1. marketsandmarkets.com, January 2016. 2. Financial Times, February 2016.3. Gartner, January 2016. 4. atlanticcouncil.org, 2015. 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.

Sample Holdings


• Having debunked many of the earlier barriers to adoption, we expect Cloud migration to accelerate over the coming years

• Computing / storage costs headed lower: Amazon Web Services (AWS) has lowered prices 61 times since launch1

• Expect ‘all’ incremental capacity added beyond the enterprise: traditional IT budgets contract as Cloud → c. 50% of spend by 20192

• Cloud deflation likely to be felt throughout the IT stack while pressuring pricing / volume in the $866bn IT services / BPO market3

Amazon Web Services ($m): Q2’14 – Q1’184

Cloud Infrastructure

Source: Polar Capital unless otherwise stated. 1. Amazon, May 2017. 2. Deutsche Bank, January 2016. 3. BNP, Gartner, July 2016. 4. Geekwire. 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.

Sample Holdings


• Having debunked many of the earlier barriers to adoption, we expect Cloud migration to accelerate over the coming years

• Computing / storage costs headed lower: Amazon Web Services (AWS) has lowered prices 61 times since launch1

• Expect ‘all’ incremental capacity added beyond the enterprise: traditional IT budgets contract as Cloud → c. 50% of spend by 20192

• Cloud deflation likely to be felt throughout the IT stack while pressuring pricing / volume in the $866bn IT services / BPO market3

Enterprise Computing Workloads: 2016 – 2024E4

Cloud Infrastructure

Source: Polar Capital unless otherwise stated. 1. Amazon, May 2017. 2. Deutsche Bank, January 2016. 3. BNP, Gartner, July 2016. 4. 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


Sample Holdings


Robotics / Automation

Source: 1. Boston Consulting Group, September 2015. 2. marketsandmarkets, February 2016. 3. Rob Lineback, 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.

• The Fourth Industrial Revolution underway driven by Cyber Physical Systems, Internet of Things and Cloud Services

• 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

• $80bn TAM by 2022 (c.12% CAGR)2 - we prefer high precision components / sensors over robotic manufacturers

Worldw

ide s

pendin

g o

n r

obots

(U

SD

, bill

ions)

Sensor prices (1992 – 2014)3

Sample Holdings


Robotics / Automation

Source: 1. Boston Consulting Group, September 2015. 2. marketsandmarkets, February 2016. 3. Recode, ABI 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.

• The Fourth Industrial Revolution underway driven by Cyber Physical Systems, Internet of Things and Cloud Services

• 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

• $80bn TAM by 2022 (c.12% CAGR)2 - we prefer high precision components / sensors over robotic manufacturers

Global shipments of industrial robots (2016-205E)3

Sample Holdings


Smartphones / Apple

Source: 1. https://www.zenithmedia.com/smartphone-penetration-reach-66-2018/ 2. https://www.gartner.com/newsroom/id/3859963 3. https://www.recode.net/2018/1/23/16923832/global-smartphone-prices-

grew-faster-iphone-quarter 4. https://www.cnbc.com/2018/02/23/smartphone-sales-are-slowing-and-here-are-two-key-reasons-why.html 5. https://www.pcworld.com/article/3078010/hardware/the-pc-

upgrade-cycle-slows-to-every-five-to-six-years-intels-ceo-says.html) 6. 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


• The smartphone market is now mature: global penetration at c.66%1 and unit growth of just +2.7% in 2017 and -5.6% y/y in Q417 2

• The ‘unit’ super-cycle’ has given way to a ‘value’ one, driven by average selling prices which increased 6% in 20173

• Replacement cycles are extending: 2.4 years (2016) → 2.6 years in 20174. The PC experience is sobering (5-6 years today)5

• Apple remains a unique story: mass affluent customer base / premium pricing and a walled-garden services business

Smartphone unit shipments (2007 - 2017)6

https://www.zenithmedia.com/smartphone-penetration-reach-66-2018/

https://www.recode.net/2018/1/23/16923832/global-smartphone-prices-grew-faster-iphone-quarter

https://www.cnbc.com/2018/02/23/smartphone-sales-are-slowing-and-here-are-two-key-reasons-why.html

https://www.pcworld.com/article/3078010/hardware/the-pc-upgrade-cycle-slows-to-every-five-to-six-years-intels-ceo-says.html)


Emerging Themes

Source: Gartner, July 2017.


Words recognised by machine: 1970 - 20165

Voice As A Computing Interface

• Human speak 150 vs. type 40 words per minute on average → voice

should become the most efficient form of computing input1

• Voice queries already account for 20% of Android mobile app

searches in the US, while Siri handles >1bn requests per week2

• “As speech recognition accuracy goes from 95% to 99%, all of

us...will go from barely using it to using it all the time” – Andrew NG3

• By 2020, at least 50% of all searches are going to be through images

or speech according to Baidu4

Source: 1. KPCB, 2016. 2. KPCB, 2016. 3. KPCB, 2016. 4. Baidu / KPCB, 2016. 5. KPCB, 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.

Sample

Holdings


• Automotive market ripe for reinvention: connectivity / infotainment,

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 - Alphabet’s self-

driving cars have already completed 5m miles3

• Car ownership? Depreciating, underutilised asset used just c. 4% of

the time → shared private rides becoming mainstream4

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


Electric / Autonomous Vehicles

Sample

Holdings

“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

https://waymo.com/tech/


http://www.autonews.com/



Augmented / Virtual Reality (AR / VR)

Source: 1. Goldman Sachs, Feb 2016. 2. https://techcrunch.com/2016/12/24/the-reality-of-vrar-trial/ . 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.

Annual VR Hardware / Content Revenue, 2014 – 2020E2

• Nascent today, but massive LT opportunity (TAM = $80bn by 20251)

• Technology driven by smartphone / display / sensor advances

• Gaming primary market today, but additional applications include live

events (sports / concerts) patient monitoring, real estate and education

• Early stage of hardware penetration currently constraining AR/VR

• Success of Pokemon Go (peak >50m MAU2) highlights AR potential

• Current market leaders: Facebook, Sony, HTC, Samsung and Google

Sample

Holdings

https://techcrunch.com/2016/12/24/the-reality-of-vrar-trial/


eSports

Source: All KPCB, 2016 unless otherwise stated. 1. https://blizzardwatch.com/2018/01/17/10-million-viewers-watched-overwatch-leagues-opening-week/ 2. https://www.investors.com/news/technology/click/global-

esports-revenue-forecast-to-top-905-million-in-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.

• eSports = Competitive gaming as a spectator sport

• Social media has grown eSports viewership making professional

leagues with full time players / teams possible

– 148m enthusiasts and a further 144m occasional viewers

– 40% of eSports viewers do not play the games themselves

– Twitch reaches half of US millennial males

– 2016 NBA finals = c.31m viewers vs. League of Legends world finals = c. 36m

– >10m people watched Overwatch League’s opening weekend1

• Revenue opportunities: ads, sponsorship, ticket, merchandise sales

• Rapidly growing TAM: $908m in 2018E, +38% y/y2

Sample

Holdings

https://blizzardwatch.com/2018/01/17/10-million-viewers-watched-overwatch-leagues-opening-week/

https://www.investors.com/news/technology/click/global-esports-revenue-forecast-to-top-905-million-in-2018/


Total number of holdings 114

Top 15 holdings

Alphabet 8.2%

Microsoft 7.9%

Apple 6.4%

Facebook 6.0%

Tencent 3.5%

Alibaba Group Holding 2.9%

Amazon 2.6%

Samsung Electronics 2.4%

Salesforce.com 1.7%

TSMC 1.6%

Adobe Systems 1.6%

Advanced Micro Devices^ 1.4%

NVIDIA 1.4%

Intel 1.4%

ServiceNow 1.2%

Large Cap (>$10bn)

Mid Cap (>$1bn - $10bn)

Small Cap (<$1bn)

76.5%

21.8%

1.7%

Market cap exposure (%)

PCT Positioning

Sector exposure (%)

Source: Polar Capital, 29 June 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. Totals may not sum due to rounding. ^The Fund holds AMD Call options which represent 5bps of NAV and a delta adjusted exposure of 31bps.

The Fund also currently holds a QQQ (NASDAQ) Put option, which represents 12bps of NAV and a delta adjusted exposure of -1.56%. All are held to reduce risk/beta (in the event of a market correction) whilst

maintaining optimal portfolio structure (efficient portfolio management). The delta adjusted impact of these options is only reflected in the top 15 positions table and all other exposure tables are based on MTM figures.

Internet Software & Services 26.9%

Software 24.7%

Semiconductors & Semiconductor Equipment 15.7%

Technology Hardware, Storage & Peripherals 9.7%

Electronic Equipment, Instruments & Components 4.2%

Internet & Direct Marketing Retail 3.7%

IT Services 2.4%

Communications Equipment 2.2%

Machinery 1.2%

Aerospace & Defense 0.9%

Other 3.0%

Cash 5.5%

0

10

20

30

40

50

60

70

80

US &Canada

Asia Pac(ex-Japan)

Japan Europe (exUK)

UK Middle East& Africa

LatinAmerica

Cash

70.1%

13.2%5.0%

4.0% 1.5% 0.6%

Geographic exposure (%)

0.1%

5.5%


0.7%

11.9%

-12.6%

-20% -15% -10% -5% 0% 5% 10% 15%

Small-cap

Mid-cap

Large-cap

PCT Positioning

Source: Polar Capital, as at 29 June 2018. Bold denotes a zero position. ^The Fund holds AMD Call options which represent 5bps of NAV and a delta adjusted exposure of 31bps. The Fund also currently holds a QQQ

(NASDAQ) Put option, which represents 12bps of NAV and a delta adjusted exposure of -1.56%. All are held to reduce risk/beta (in the event of a market correction) whilst maintaining optimal portfolio structure (efficient

portfolio management). The delta adjusted impact of these options is only reflected in the top 15 positions table and all other exposure tables are based on MTM figures. 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.

Largest overweights Largest underweights Market cap exposure versus benchmark

8x8

Activision Blizzard

Advanced Micro Devices^

Alteryx

Amazon

Arista Networks

Axon Enterprise

Cognex Corp

Dolby Laboratories Inc

Electronic Arts

Keyence

Medidata Solutions

PayPal Holdings

Pegasystems

Pure Storage

ServiceNow

UBISOFT Entertainment

Visa

Xilinx

Zendesk

Alphabet

Amadeus IT Holding

Analog Devices

Apple

Broadcom

Canon Inc

Cisco Systems

Cognizant Technology Solutions

HP

IBM

Infosys

Intel

Intuit

Microsoft

NVIDIA

NXP Semiconductor

Oracle

Qualcomm

Samsung Electronics

SAP


PCT Positioning

Thematic breakdown1,2 Thematic breakdown relative to benchmark (%)1,2

Source: Polar Capital, 29 June 2018. 1. Benchmark: Dow Jones World Technology Index (TR). 2. Index exposure based on Top 100 index constituents. Figures are shown as gross weightings.


months is available upon request.

Internet26%

Cloud: applications13%

Cloud: infrastructure6%Cybersecurity

2%

Big data / AI3%

Automotive3%

Factory automation/robotics4%

Payments2%

IoT1%

3D Printing0%

Other0%

Emerging0%

Solar0%

Electric Vehicles1%

Medical Technology1%

Apple7%

Smartphones2%

Semiconductors20%

Legacy10%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Clo

ud: app

lica

tio

ns

Clo

ud: in

frastr

uctu

re

Vid

eo

Gam

es

Fa

cto

ry a

uto

matio

n/r

obotics

Pa

ym

ents

Big

data

/ A

I

Au

tom

otive

Cyb

ers

ecurity

Sm

art

phones

IoT

Ele

ctr

ic V

ehic

les

Me

dic

al T

echn

olo

gy

Em

erg

ing

Ma

teria

ls

3D

Prin

tin

g

So

lar

Oth

er

Inte

rnet

Se

mic

ondu

cto

rs

Ap

ple

Legacy


PCT1Index

Top 100

Index ex

Apple

PE (Median) CY 29.8 20.8 20.9

NY 26.0 18.7 18.7

Earnings growth (Median) CY 20.5 16.3 16.1

NY 16.5 11.6 11.6

EV/Sales (Mean) CY 6.6 5.1 5.2

NY 5.5 4.5 4.6

EV/Sales (Median) CY 5.9 4.2 4.2

NY 5.1 3.8 3.9

EV/Sales (Weighted)** CY 6.8 5.7 6.1

NY 5.7 4.9 5.2

Sales Growth (Mean) CY 23.8 14.9 14.9

NY 17.6 9.7 9.8

Sales Growth (Median) CY 19.5 10.1 9.9

NY 14.9 6.6 6.7

Sales Growth (Weighted)** CY 23.6 17.9 19.0

NY 16.9 11.6 12.9

Gross Margin (Mean) 61.3 58.6 58.8

Gross Margin (Median) 64.3 60.0 60.1

Gross Margin (Weighted)** 59.3 57.2 60.0

Net Cash as % mkt cap Avg 7.0 1.5 1.3

Wgtd** 7.9 7.1 5.8

Market Cap ($m) Mean 75,441 82,993 74,322

Median 8,837 23,183 22,922

Wgtd** 333,399 425,174 346,397

PCT Positioning

Sales growth 2017 – PCT vs. benchmark2

Source: 1. Polar Capital, 13 July 2018. Figures in blue exclude Apple (12% gross) from the Index Top 100. CY = Current Year, NY = 2018 calendar year estimates. 2. Polar Capital, 29 July 2018. Benchmark: Dow Jones

World 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.

% o

f P

ort

folio

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

PCT GROSS WEIGHT BENCH GROSS WEIGHT


Appendix


Team Biographies

Ben Rogoff, Director – Technology

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, Senior Fund Manager


Nick joined Polar Capital in September 2007 and has 20 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.

Fatima Iu


Fatima joined Polar Capital in April 2006 and has 12 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.


Team Biographies cont.

Xuesong Zhao


Xuesong joined Polar Capital in May 2012 and has 11 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 and has

passed all three levels of the CFA.

Brad Reynolds


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: 6 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.

Chris Wittstock


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).


Inflation adjusted UK holiday expenditure: 1951-1996

overseas

domestic

New Cycles Challenge The Value Of Incumbency

Source: seasidehistory.co.uk.


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.

Polar Capital

16 Palace Street

London SW1E 5JD

Important Information


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.

Important Information Cont.

Polar Capital

16 Palace Street

London SW1E 5JD

polar capital technology trust · 2019-01-04 · for non-us investor use only. please refer to the...

Documents