Macquarie Professional Series

Polaris Global Equity Fund

Macquarie Professional Series

Enabling local access to global specialists

The Polaris Global Equity Fund is proudly brought to you by Macquarie Professional Series. We have been scanning the world for 20 years, looking for global equity and liquid alternatives managers that have proven themselves, through multiple market fluctuations, again and again. Very few make the cut, but that’s the point.

We’ve sorted through the noise and dealt with the complexity, to bring you our selection of some of the world’s best. We want to share our passion for investing and support you all the way.

Overview

Proven value investors

One of the longest standing value strategies in the market

Clear and disciplined approach

A strong focus on sustainable free cash flows

Genuinely differentiated portfolio

Built from an all-cap, all-country approach

Philosophy

Polaris believes investor behaviour creates volatility that leads to temporary inefficiency in specific segments of global markets. During these periods, stock prices may not reflect a company’s long-term fundamental valuation and/or future cash flows. Polaris searches the globe to uncover such undervalued companies, regardless of benchmark inclusion, domicile or market capitalisation to build a diversified portfolio with an emphasis on value.

Key features

Potential for capital growth

Polaris seeks to uncover companies with the most undervalued streams of free cash flow worldwide, through a time-tested approach.
Global market fluctuations produce mispriced stocks. Where prices do not reflect a company’s long-term fundamental valuation, Polaris will seek to buy such undervalued companies.

Access to what Polaris believes are the best value opportunities globally

Polaris has the flexibility to uncover "hidden gems," regardless of country, industry or company size.
Polaris' unique approach to value investing filters thousands of companies across the investment universe into a high conviction portfolio of value opportunities.

Potential all-capitalisation, all-country diversification

The MSCI World Index provides exposure to only developed markets, and is composed of 81% large companies and 19% mid-size companies, excluding small companies altogether¹
Polaris provides broad, diversified exposure to countries and companies of any size by remaining benchmark-unaware.

Access to Polaris’ expertise in value investing

Polaris is an experienced boutique team, based in Boston, United States, boasting a highly credible performance track record and one of the longest among global equity fund managers.
The team is led by Bernard R. Horn, Jr, the founder of Polaris, who has extensive experience managing global equity portfolios.

¹FactSet Analytics, as at 30 September 2024.

Process

Polaris believes cash flow is the key indicator of a company's value.

The companies that typically enter the portfolio generate strong sustainable free cash flows, have conservative balance sheets, and meet Polaris' stringent valuation metrics.

The research process begins with Polaris' valuation screens, which provide a starting point to Polaris' fundamental, research-driven approach. The team regularly screens a database of over 46,000 companies, which produces a list of those that appear to be the most undervalued.

The focus of the investment process is on sustainable free cash flow, and Polaris use their unique discount rate (Polaris Global Cost of Equity) to determine if an investment offers a sufficiently attractive rate of return.

Polaris then conducts fundamental, bottom-up research on the resulting names to verify assumptions about a company's intrinsic value. This includes researching suppliers, customers, and competitors, as well as visiting company management.

Management team

For more information on our equity capabilities

Learn more

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying investments. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and portfolio value variability over the short term). Some of the significant risks of the Strategy are included below.

Investment risk: The Strategy has exposure to share markets. The risk of an investment in the Strategy is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Strategy’s unit price, by material amounts over short periods.

Market risk: The investments that the Strategy has exposure to are likely to have a broad correlation with share markets in general. Share markets can be volatile and have the potential to fall by large amounts over short periods of time. Poor performance or losses in domestic and/or global share markets are likely to negatively impact the overall performance of the Strategy.

International and emerging market risk: The Strategy has exposure to a range of international economies, including emerging economies. Global and country specific macroeconomic factors may impact the investments that the Strategy has exposure to. Governments may intervene in markets, industries, and companies; may alter tax and legal regimes; and may act to prevent or limit the repatriation of foreign capital. Emerging markets may experience lower liquidity (including as a result of securities or bond markets being closed for extended periods), potential for political unrest leading to recession or war, greater potential for sanctions to be imposed on the country or its citizens, companies or institutions, increased likelihood of sovereign intervention (including default and currency intervention), currency volatility, and increased legal risk.

Important information: The Fund is designed for consumers who are seeking capital growth and income distribution, are intending to use the Fund as a core component, minor allocation or satellite allocation within a portfolio, have a minimum investment timeframe of seven years, have a high or very high risk/return profile for that portion of their investment portfolio, and require the ability to have access to capital within one week of request.

The Target Market Determination (TMD), available at macquarie.com/mam/TMD, includes a description of the class of consumers for whom the Fund is likely to be consistent with their objectives, financial situation and needs.

Macquarie Asset management is a leading global asset manager offering a diverse range of investment solutions, including real assets, real estate, and credit.

This information is a general description of Macquarie Asset management only. The views expressed in this website represent those of the relevant investment team and are subject to change. No information set out above constitutes advice, an advertisement, an invitation, a confirmation, an offer or a solicitation, to buy or sell any security or other financial product or to engage in any investment activity, or an offer of any banking or financial service. Some products and/or services mentioned on this website may not be suitable for you and may not be available in all jurisdictions.

Investing involves risk including the possible loss of principal. The investment capabilities described in this website involve risks due, among other things, to the nature of the underlying investments. All examples herein are for illustrative purposes only and there can be no assurance that any particular investment objective will be realized or any investment strategy seeking to achieve such objective will be successful. Past performance is not a reliable indication of future performance.

Before acting on any information, you should consider the appropriateness of it having regard to your particular objectives, financial situation and needs and seek advice.

Other than Macquarie Bank Limited ABN 46 008 583 542 (“Macquarie Bank”), any Macquarie Group entity noted in this website is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this website relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.

Additional important information (including regional disclosures)

[3246420]