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Polar Capital Technology Trust · For non-US investor use only. Please refer to the Important...
Transcript of 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
2For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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%
3For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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.
4For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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.
5For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
6For non-US investor use only. Please refer to the Important Information at the end of this presentation.
• 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
Investment experience: 23 years
Sectors: US (mid/large-cap)
Polar Capital Technology
Trust (LSE listed)
US$2.5bn
Global Technology
Fund
US$3.4bn
Nick Evans
Partner
Investment experience: 21 years
Sectors: US (small/mid-cap)
Xuesong Zhao
Fund Manager/Analyst
Investment experience: 12 years
Sectors: Asia (all-cap), global
semi / Semi cap equipment
Bradley Reynolds
Investment Analyst
Investment experience: 11 years
Sectors: US (all-cap) – Internet &
digital media
Paul Johnson
Investment Analyst
Investment experience: 7 years
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
Fund Manager/Analyst
Investment experience: 8 years
Sectors: Payments, SMB software,
IT services
Chris Wittstock (based in US)
Senior Investment Analyst
Investment experience: 34 years
Sectors: US Technology/Software
Nick Williams
Investment Analyst
Investment experience: 3 years
Sectors: Global all-cap –
A&AI Fund
7For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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.
8For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
9For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
10For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
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Jan-1
3
Aug-1
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May-1
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Dec-1
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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
11For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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-
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May-1
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Nov-1
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Jun-1
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Jan-1
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Jul-15
Fe
b-1
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Sep-1
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Mar-
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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
12For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
13For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
14For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Digital Disruption
Source: Polar Capital.
15For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
16For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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)
17For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
18For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
19For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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.
Digital Disruption: Brands
20For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
21For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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.
Digital Disruption: Brands
• 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
22For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
23For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Eight Core Investment Themes
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
24For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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 Investment Themes
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
26For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.
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
27For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.
28For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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.
29For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.
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
26For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.
• 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.
31For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.
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
32For non-US professional investor use only. Please refer to the Important Information at the end of this presentation.
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
33For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
34For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
36For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Sample Holdings
37For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Emerging Themes
Source: Gartner, August 2018.
38For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
39For non-US investor use only. Please refer to the Important Information at the end of this presentation.
• 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
40For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
41For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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%
42For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
IBM
Infosys
Intel
Intuit
Micron Technology
Microsoft
NASDAQ 100 Stock Index Put Option 6900 Oct 2019
Oracle
Red Hat
SAP
SK Hynix
Workday
43For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
44For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
45For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Appendix
46For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Team Biographies
Ben Rogoff – Partner
Experience: 23 years
Ben joined Polar Capital in May 2003. He is lead manager of Polar Capital Technology Trust plc and is a Fund Manager of the Polar Capital
Global Technology Fund and Polar Capital Automation and Artificial Intelligence Fund. He has been a technology specialist for 23 years. Prior to
joining Polar Capital he began his career in fund management at CMI, as a global technology analyst. He moved to Aberdeen Fund Managers in
1998 where he spent four years as a senior technology manager. Ben graduated from St Catherine’s College, Oxford in 1995.
Nick Evans – Partner
Experience: 21 years
Nick joined Polar Capital in September 2007 and has 21 years’ experience as a technology specialist. He has been lead manager of the Polar
Capital Global Technology Fund since January 2008 and is also a fund manager on the Polar Capital Technology Trust and Polar Capital
Automation and Artificial Intelligence Fund. Prior to joining Polar he was head of technology at AXA Framlington and lead manager of the AXA
Framlington Global Technology Fund and the AXA world fund (AWF) – Global Technology from 2001 to 2007 (both rated five stars by S&P). He
also spent three years as a Pan-European investment manager and technology analyst at Hill Samuel Asset Management. Nick has a degree in
Economics and Business Economics from Hull University, has completed all levels of the ASIP, and is a member of the CFA Institute.
Xuesong Zhao
Experience: 12 years
Xuesong joined Polar Capital in May 2012 and has 12 years’ investment experience. He is a lead manager of the Polar Capital Automation and
Artificial Intelligence Fund and is a Fund Manager on the Polar Capital Technology Trust and Polar Capital Global Technology Fund. Prior to
joining Polar Capital, he spent four years working as an investment analyst within the emerging markets & Asia team at Aviva Investors, where he
was responsible for the technology, media and telecom sectors. Prior to that, he worked as a quantitative analyst and risk manager for the
emerging market debt team at Pictet Asset Management. He started his career as a financial engineer at Algorithmics, now owned by IBM, in
2005. He holds an MSc in Finance from Imperial College of Science & Technology, a BA (Hons) in Economics from Peking University. He is also
a CFA charterholder.
47For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Team Biographies cont.
Chris Wittstock
Experience: 34 years
Chris joined Polar Capital in July 2017 as a senior technology analyst based in the US. Prior to joining, Chris led the International research sales
effort at Pacific Crest, a technology investment bank that was ultimately acquired by KeyBanc Capital in 2014. Prior to joining Pacific Crest in
2004, Chris led the International sales effort at Schwab SoundView, the successor company to Soundview Technology Group where he was
since 1996. Chris spent significant time in Europe as a derivative products specialist in the late 80s and 90s, lastly with Morgan Stanley
International. He is a graduate of University of Toronto, Faculty of Engineering (Industrial).
Fatima Iu (Maternity Leave)
Experience: 13 years
Fatima joined Polar Capital in April 2006 and has 13 years’ experience. She is a fund manager on the Polar Capital Technology Fund, Polar
Capital Technology Trust and Polar Capital Automation and Artificial Intelligence Fund. She is responsible for the coverage of European
Technology, Global Security, Networking, Clean Energy and Medical Technology. Prior to joining Polar, Fatima spent 18 months working at
Citigroup Asset Management with a focus on consumer products and pharmaceuticals. Fatima holds an MSc in Medicinal Chemistry from
Imperial College of Science & Technology in London. She is also a CFA Charterholder.
Alastair Unwin
Experience: 8 years
Alastair joined Polar Capital in June 2019 as a Fund Manager and Senior Analyst. Prior to joining Polar Capital, Alastair co-managed the Arbrook
American Equities Fund. Between 2014 and 2018 he launched and then managed the Neptune Global Technology Fund and managed the
Neptune US Opportunities Fund. Prior to Neptune, Alastair was a technology analyst at Herald Investment Management. Alastair has a BA (1st
Class Hons) in history from Trinity College, Cambridge and is a CFA Charterholder.
48For non-US investor use only. Please refer to the Important Information at the end of this presentation.
Brad Reynolds
Experience: 11 years
Brad joined Polar Capital in October 2011 as an Investment Analyst and Trader working as part of the European Market Neutral team with a focus
on media and internet. In 2014, he joined the Technology team as an Investment Analyst. Prior to joining Polar Capital, Brad worked at Ratio
Asset Management as an analyst and trader, and from 2007 to 2011 he worked at F&C as a hedge fund analyst. Brad started his career in 2001
at Gartmore Investment Management working within the hedge fund team. Brad graduated from the University of Hertfordshire with a degree in
Business Studies.
Paul Johnson
Experience: 7 years
Paul joined Polar Capital in March 2012 as an Investment Analyst on the Polar Capital Technology team. Prior to joining Polar Capital, Paul
helped manage a private investment fund between 2010 and 2012. Paul holds a BA in History and Politics and a Masters in History from Keele
University. He has successfully passed all three levels of the CFA program.
Nick Williams
Experience: 3 years
Nick joined Polar Capital in June 2019 as an analyst on the Polar Capital Technology team. Prior to joining Polar Capital, Nick worked at Neptune
Investment Management as the Assistant Fund Manager on the US Opportunities growth fund. Prior to that he worked in academia at the
University of Oxford. Nick holds an MChem Chemistry from the University of Oxford.
Team Biographies cont.
49For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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
50For non-US investor use only. Please refer to the Important Information at the end of this presentation.
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