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

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

This presentation is for non-US investor use only

www.polarcapital.co.uk

Polar Capital Technology Trust

Full-year results presentation

15 July 2019


Results As At 30 April 2019

Source: Polar Capital, 30 April 2019.

Year ended

30/04/18

Year ended

30/04/19

Change

(y/y)

Net Assets £1,551,611,000 £1,935,646,000 +24.8%

NAV per ordinary share 1159.69p 1446.40p +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%


PCT As At 28 June 2019

Year ended

30/04/18

Year ended

30/04/19

Change

(y/y)

As at

28/06/19

Net Assets £1,551,611,000 £1,935,646,000 +24.8% £1,931,775,000

NAV per ordinary share 1159.69p 1446.40p +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, 28 June 2019.


Full Year Review

DJ World Technology vs. FTSE World TR since Apr 2018

Source: Bloomberg, 10 July 2019.

• 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.


Full Year Review

US technology small caps vs. large caps since Apr 2018

Source: Bloomberg, 10 July 2019. Past performance is not indicative or a guarantee of future returns.

• 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


• Technology is at the core of the Polar Capital business

• One of the largest technology franchises in Europe with c.US$6.3bn under management

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

Introduction To The Team

Fatima Iu (Maternity Leave)

Fund Manager/Analyst

Investment experience: 13 years

Sectors: Europe (all-cap), security,

networking, energy & med tech

Ben Rogoff

Partner


Sectors: US (mid/large-cap)

Polar Capital Technology

Trust (LSE listed)

US$2.5bn

Global Technology

Fund

US$3.4bn

Nick Evans

Partner


Sectors: US (small/mid-cap)

Xuesong Zhao



Sectors: Asia (all-cap), global

semi / Semi cap equipment

Bradley Reynolds

Investment Analyst


Sectors: US (all-cap) – Internet &

digital media

Paul Johnson

Investment Analyst


Sectors: Emerging Tech inc.

3D printing, gaming & autos

Analysts

Funds

Fund Managers

Automation & AI

Fund

US$409m

Source: Polar Capital, 28 June 2019.

Alastair Unwin



Sectors: Payments, SMB software,

IT services

Chris Wittstock (based in US)

Senior Investment Analyst


Sectors: US Technology/Software

Nick Williams

Investment Analyst


Sectors: Global all-cap –

A&AI Fund


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%

Sa

les

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

Ex

pe

cta

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, 28 June 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.

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/


Internet valuation (equal cap weighted):

EV/forward 2 year EV/EBITDA levels1

Software as a Service (SaaS) valuation:

EV/forward 12 month revenue multiples2

Source: 1. Bloomberg, 28 June 2019. UCITS Internet sector (AMZN/FB/GOOG/BABA/700HK/PYPL) vs Bank of America Merrill Lynch Internet sector Index. 2. KeyBanc, Capital Markets, May 2019. Past performance is

not indicative or a guarantee of future returns.

0

5

10

15

20

25

Jan-1

3

Aug-1

3

Mar-

14

Oct-

14

May-1

5

Dec-1

5

Jul-16

Fe

b-1

7

Sep-1

7

Apr-

18

Nov-1

8

Jun-1

9

UCITS Internet Average ML Internet Index

‘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, July 2019. 2. Bloomberg, BofA Merrill Lynch Global Research, June 2019. Past performance is not indicative or a guarantee of future returns.

0x

2x

4x

6x

8x

10x

12x

14x

Jan-1

0

Jul-10

Fe

b-1

1

Sep-1

1

Mar-

12

Oct-

12

May-1

3

Nov-1

3

Jun-1

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Jul-15

Fe

b-1

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Oct-

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May-1

8

Nov-1

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Jun-1

9

EV

/ tr

aili

ng 1

2 m

onth

sale

s

LEGACY CLOUD

‘Next-Generation’ Valuations


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

June-18 GitHub Microsoft Private 7,500

Sept-18 Marketo Adobe Private 4,750

Oct-18 Red Hat IBM 63% 34,000

Nov-18 Qualtrics SAP Private 8,000

Source: 1. Centaur Partners, December 2015. 2. Bloomberg and Polar Capital, August 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

BOLD: owned in Fund


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. KPCB, 2018 3. https://expandedramblings.com/index.php/spotify-statistics/

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 > Netflix1

• Spotify = 180m active users, 83m paid subscribers3, c.20% of global music industry revenues1

US Recorded Music Revenues by Format (US$bn)1 Unique Artist Listening (2014 – 2017)2


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

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.


• 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


Cyber / Physical SecuritySecurity spending expected to reach $114bn in 2018E, +12.4% y/y5

Drivers include data breaches, regulation, digitalisation, cyberwarfare

Block & Protect → Detection, Mitigation & Response

Digital Marketing / AdvertisingInternet advertising worth $273bn in 20183, 43% of total ad spending3

Alphabet and Facebook combined account for c.90% of US market growth4

Brand Building → Transaction facilitation

Eight Core Investment Themes

eCommerce / Digital PaymentseCommerce worth $2.3tr in 2017, c10% of total retail sales2

Mobile commerce reached $1.4tr in 2017, >60% of total2

Number of SKU → Payments, Logistics + Ecosystem

Source: 1. Gartner, April 2018; 2.eMarketer, January 2018; 3. eMarketer, March 2018; 4. BoA / ML / Zenith, US market Jan 18; 5. Gartner, August 2018; 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.

Cloud Infrastructure / Artificial Intelligence (AI)Public Cloud market worth $186bn in 2018 (+21% y/y growth)1

By 2021, 44% of application workloads expected to run in Cloud services6

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



Source: 1. Newzoo, April 2018; 2. UBS, Jan 2016; 3. marketsandmarkets, May 2018; 4. http://www.cultofmac.com/305200/foxconns-promised-iphone-building-robot-army-running-late/ 5. IDC. 6. NewZoo May 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.

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’

Robotics / 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

Rising Semiconductor ComplexityRising 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

Digital Content / Games Software$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

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


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

18%

19%

20%

21%

22%

23%

24%

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, 28 June 2019. Past performance is not indicative or a guarantee of future returns.


Eight core theme breakdown (31 January 2017 – 28 June 2019)

eCommerce / Payments

Source: Polar Capital, unless otherwise stated. 1. Based on eMarketer forecast, January 2018 . 2. Techcrunch, July 2018 3. eMarketer January 2018. 4. Bond Capital, July 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.

• eCommerce growth continues unabated and reached $2.3tr in 2017, representing c.10% of total retail sales1

• Amazon’s share of US e-commerce now 49%, c.5% of all retail spend2

• Mobile now an integral part of the shopping experience, reaching $1.4tr in 2017 (c6% of total retail sales)3

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

eCommerce as % of US retail sales4

Sample Holdings

25For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.

• Mobile remains the dominant trend in payments while merchant adoption represents the biggest obstacle

• Smartphone is replacing the physical wallet, aided by the use of biometric authentication – Apple Pay etc

• Bank are being reduced to ‘dumb pipes’ as value moves to the networks

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

Source: 1. Statista, 2016 2. KPCB, August 2018. It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities in this document. A list of all

recommendations made within the immediately preceding 12 months is available upon request. 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 China Mobile Payment Volume2

eCommerce / Payments

Sample Holdings


Digital Advertising / Marketing

Source: Polar Capital, unless otherwise stated. 1. Based on eMarketer forecast, March 2018. 2. BoAML/Zenith, US market January 2018. 3. Bond Capital, July 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.

• Global online advertising expected to reach $273bn in 2018, c. 43% of total advertising spend1

• Paid Search and Social Media markets expected to grow 14% and 27% respectively in 20172

• Size matters: US market dominated by Alphabet and Facebook, combined c. 90% of overall growth in 20172

• Growth drivers: continued improvement in ROI measurement, video content, location-based marketing

% Media Time vs. Advertising Spending (2010 vs. 2018)3

Sample Holdings



Software As A Service (SaaS)

Source: Polar Capital unless otherwise stated. 1. IDC. 2. KeyBanc, August 2018. It should not be assumed that recommendations made in future will be profitable or will equal performance of the securities in this

document. A list of all recommendations made within the immediately preceding 12 months is available upon request. 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.

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

• 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

• Top Categories: Communications (UCaaS), Sales/Marketing, Analytics, Education, Procurement, Vertical/Horizontal & SMB

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

Sample Holdings

Digital / Online Gaming

• Video games: $122bn market in 2017 → $152bn by 2020E (~10% CAGR), driven by new console cycle, mobile and AR/VR1

• Improving market dynamics: industry consolidation = greater scale / profitability / barriers to entry

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

• Meteoric rise of ‘Battle Royale’ games PUBG and Fortnite (>40m MAUs2, $296m sales)3 = risk and opportunity?

Global Games Market ($bn) 2017 –2020E1

Source: 1. Newzoo, Apr 2018. 2. Tencent, May 2018 3. 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,

Sample Holdings

but are subject to change without notice, and do not necessarily represent the views of Polar Capital.


Cyber / Physical Security

• Security remains one of the more attractive areas within traditional IT budgets, expected to grow c. 12% to $114bn in 2018E1

• Favourable backdrop likely to persist – regulation (GDPR, Federal Action Plan), digitalisation, cyberwarfare, IoT / BYOD

• Priorities shifting from ‘block and protect’ to rapid detection and response (c. 60% of budgets by 2020)2

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

US cyber security spending: 2009 – 20173

Source: 1. Gartner August 2018. 2. Gartner, January 2016. 3. 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 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 while pressuring pricing / volume in the $866bn IT services / BPO market4

Cloud Service Revenue: Amazon + Azure + Cloud: Q1’15 – Q1’195

Cloud / AI Infrastructure

Source: Polar Capital unless otherwise stated. 1. Amazon, May 2017. 2. Deutsche Bank, January 2016. 3. Morgan Stanley / Geekwire August 2018 4. BNP, Gartner, July 2016. 5. Bond Capital, July 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.


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 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 while pressuring pricing / volume in the $866bn IT services / BPO market4

Enterprise Computing Workloads: 2016 – 2024E5

Source: Polar Capital unless otherwise stated. 1. Amazon, May 2017. 2. Deutsche Bank, January 2016. 3. Morgan Stanley / Geekwire August 2018 4. BNP, Gartner, July 2016. 5. 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.

Sample Holdings


Cloud / AI Infrastructure

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

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


For non-US professional investor use only. Please refer to the Important Information at the end of this presentation. 31

‘More Than Moore’ – Rising Semiconductor Complexity

Source: 1. Computer Architecture by John Hennessy and David Patterson, FT. 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.

• Cost reductions tied to shrinkage stops <20nm, diluting benefits of migration to finer nodes. Opportunity for ‘fast followers’.

• Increasing complexity drives up capital intensity on a per wafer basis benefiting semiconductor equipment (SPE) vendors.

• Greater focus on compound materials, advance packaging and IC design to deliver future performance / cost improvement.

• Growth segments 1) Solid State Drive (SSD) 2) Public Cloud 2) ML / AI 3) Automotive (8.5% CAGR to $50bn in 2020)1

Cost ($m per 1000 300mm wafer / month) by node1 Transistor density growth (1978 – Present)1

Sample Holdings

Smartphones / Apple / 5G

Source: 1. https://www.zenithmedia.com/smartphone-penetration-reach-66-2018/ 2. https://www.gartner.com/newsroom/id/ 3. https://www.cnbc.com/2018/02/23/smartphone-sales-are-slowing-and-here-are-two-key-

reasons-why.html 4. https://www.pcworld.com/article/3078010/hardware/the-pc- upgrade-cycle-slows-to-every-five-to-six-years-intels-ceo-says.html) 5. BoA 6. Bond Capital, July 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.

• 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 Q4172

• Replacement cycles are extending: 2.4 years (2016) → 2.6 years in 20173. The PC experience is sobering (5-6 years today)4

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

• 5G: ultra-low latency enabling new business models, infrastructure refresh and a $18bn semiconductor opportunity by 20225

Smartphone unit shipments (2009 - 2018)6


Sample Holdings


Emerging Themes

Source: Gartner, August 2018.


Voice As The Computing Interface

Source: 1. Baidu / KPCB, 2016. 2. 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.

• Humans speak 150 vs. type 40 words per minute on average

• Recognition accuracy shift from 95% to 99% will drive

ubiquity of voice as an interface for a variety of apps

• By 2020, c50% of all searches via images or speech1

Words recognised by machine: 1970 - 20162

Sample

Holdings


• 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 https://waymo.com/tech

• 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 subject to change

without notice, and do not necessarily represent the views of Polar Capital.

Electric / Autonomous Vehicles

“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

Sample

Holdings

https://waymo.com/tech

https://waymo.com/tech/


http://www.autonews.com/



eSports

• eSports = Competitive gaming as a spectator sport

• Rapidly growing TAM: $906m in 2018E, +38% y/y2

• Social media has grown eSports viewership making professional

leagues with full time players / teams possible

– 165m enthusiasts and a further 215m occasional viewers expected in 20181

– 42% of eSports viewers do not play the games themselves2

– Twitch reaches 55% of US millennial males3

– >10m people watched Overwatch League’s opening weekend4

• Sales opportunities: broadcast rights, franchise sales, advertising,

sponsorship, tickets and merchandise

– Overwatch franchises $20m each; Twitch paid $90m for 2yr broadcast rights5

Source: 1. Newzoo, February 2018. 2. Newzoo, May 2017. 3. comScore, September 2017. 4. https://blizzardwatch.com/2018/01/17/10-million-viewers-watched-overwatch-leagues-opening-week/. 5. www.sporttechie.com,

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. Forecasts contained herein are for illustrative purposes only and does not constitute advice or a recommendation.

Sample

Holdings

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

http://www.sporttechie.com/


Total number of holdings 110

Top 15 holdings

Microsoft 9.4%

Alphabet 6.3%

Apple 4.6%

Facebook 4.2%

Samsung Electronics 3.2%

Alibaba Group Holding 3.1%

Tencent 2.7%

Amazon 2.5%

TSMC 2.1%

Advanced Micro Devices 2.1%

Adobe Systems 2.1%

ServiceNow 1.8%

Analog Devices 1.5%

Zendesk 1.4%

Arista Networks 1.3%

Large Cap (>$10bn)

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

Small Cap (<$1bn)

76.9%

21.5%

1.6%

Market cap exposure (%)

PCT Positioning

Sector exposure (%)

Source: Polar Capital, 28 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. Totals may not sum due to rounding.

Software 28.3%

Semiconductors & Semiconductor Equipment 15.9%

Interactive Media & Services 14.5%

Technology Hardware, Storage & Peripherals 8.4%

Internet & Direct Marketing Retail 6.3%

Electronic Equipment, Instruments & Components 5.2%

IT Services 4.7%

Entertainment 2.4%

Communications Equipment 1.5%

Machinery 1.0%

Other 4.7%

Cash 7.0%

0

10

20

30

40

50

60

70

80

US & Canada Asia Pac (ex-Japan)

Japan Europe (ex UK) UK Middle East &Africa

70.8%

12.1%

4.9% 1.1%4.0%

Geographic exposure (%)

0.2%


0.8%

11.9%

-12.4%

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

Small-cap

Mid-cap

Large-cap

PCT Positioning

Source: Polar Capital, as at 28 June 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.

Largest overweights Largest underweights Market cap exposure versus benchmark

Advanced Micro Devices

Amazon

Analog Devices

ANSYS Inc

Arista Networks

Cognex Corp

Five9

IAC/InterActiveCorp

Keyence

Mastercard

Medidata Solutions

Mimecast

PayPal Holdings

Proofpoint

ServiceNow

Tokyo Electron

Uber Technologies

Universal Display Corp

Visa

Zendesk

Alphabet

Amadeus IT Holding

Apple

Baidu

Broadcom

Cisco Systems

Cognizant Technology Solutions

Facebook

IBM

Infosys

Intel

Intuit

Micron Technology

Microsoft

NASDAQ 100 Stock Index Put Option 6900 Oct 2019

Oracle

Red Hat

SAP

SK Hynix

Workday


PCT Positioning

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

Source: Polar Capital, 28 June 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.

Internet22%

Cloud: applications17%

Cloud: infrastructure5%Cybersecurity

2%

Big data / AI3%

Automotive2%Factory

automation/robotics5%

Payments4%

IoT1%3D Printing

0%

Other0%

Emerging1%

Solar0%

Electric Vehicles0%

Medical Technology1%

Apple5%

Smartphones1%

Semiconductors22%

Legacy10%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Clo

ud: a

pplic

ations

Facto

ry a

uto

mation/r

obotics

Clo

ud: in

frastr

uctu

re

Pa

ym

ents

Big

data

/ A

I

Vid

eo

Gam

es

Cybers

ecurity

Medic

al T

echno

logy

Mate

rials

Au

tom

otive

IoT

Em

erg

ing

Sm

art

ph

ones

Ele

ctr

ic V

ehic

les

3D

Printing

So

lar

Se

mic

onducto

rs

Oth

er

Inte

rnet

Ap

ple

Legacy


PCT1Index

Top 100

Index ex

Apple

PE (Median) CY 30.6 22.2 22.4

NY 24.8 18.7 18.7

Earnings growth (Median) CY 2.7 5.5 5.5

NY 16.7 14.8 14.8

EV/Sales (Mean) CY 8.6 6.2 6.3

NY 6.8 5.4 5.5

EV/Sales (Median) CY 6.8 4.8 4.9

NY 5.9 4.4 4.4

EV/Sales (Weighted)** CY 7.7 5.9 6.3

NY 6.4 5.2 5.5

Sales Growth (Mean) CY 13.4 7.8 7.9

NY 24.2 11.0 11.1

Sales Growth (Median) CY 12.0 5.9 5.9

NY 17.2 8.9 9.0

Sales Growth (Weighted)** CY 13.4 8.3 9.6

NY 18.3 11.9 12.7

Gross Margin (Mean) 60.3 58.3 58.5

Gross Margin (Median) 65.1 61.5 61.7

Gross Margin (Weighted)** 58.5 57.8 60.4

Net Cash as % mkt cap Avg 5.5 -1.6 -1.7

Wgtd** 6.8 5.4 4.5

Market Cap ($m) Mean 80,975 85,209 76,570

Median 10,312 27,701 27,686

Wgtd** 325,523 451,910 385,715

PCT Positioning

Sales growth 2020 – PCT vs. benchmark2

Source: 1. Polar Capital, 05 July 2019. Figures in blue exclude Apple (11.9% gross) from the Index Top 100. CY = Current Year, NY = 2018 calendar year estimates. 2. Polar Capital, 05 July 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.

% o

f P

ort

folio

0.0

10.0

20.0

30.0

40.0

50.0

60.0

<0 0:10 10:20 20:30 30:40 40:50 >50

PCT GROSS WEIGHT BENCH GROSS WEIGHT


Appendix


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


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


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.


Team Biographies cont.

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).

Fatima Iu (Maternity Leave)


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.


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: 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.

Team Biographies cont.


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 · for non-us investor use only. please refer to the important...

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