Finding true value is tough
Finding and profiting from true value investment opportunities is tough. Luckily Polaris thinks differently. Polaris believes their portfolio of hidden gems brings you some of the most undervalued companies from around the world.
Polaris has one of the longest standing value strategies available in the market and a close-knit, experienced team who are dedicated to traditional value investing.
With their diverse backgrounds, each member of the Polaris team brings a unique perspective and this helps them better identify and understand opportunities.
Despite markets in the last decade favouring growth investors, Polaris has not drifted from their core belief and are well positioned now that value stocks are potentially back in favour. Market cycles come and go, but Polaris’ ongoing, thorough research into companies continues to seek out value opportunities that are missed by many.
No accounting tricks here. For Polaris, it’s all about sustainable free cash flows, the key pillar of their disciplined approach to valuation.
While many focus on projecting the growth of future cash flows, Polaris have a different mindset – they focus on risk. For Polaris it’s about what can go wrong and what can threaten cash flow sustainability.
To ensure company valuations remain robust, Polaris employs a single measure of value across all sectors, all countries, and at all points of the economic cycle. Polaris’ approach is not about selecting different measures to justify a purchase – it is a disciplined method to ensure that even in periods of market stress, companies within the portfolio are more likely to continue to generate steady cash flows.
Opportunities far and wide, large or small. Polaris offers you access to a genuinely differentiated portfolio.
Source: Macquarie, FactSet, as at 31 December 2023. Future compositions will vary from that shown above.
Holdings for the Polaris Global Equity Fund. Benchmark is the MSCI World ex Australia Index, in $A unhedged with net dividends reinvested.
The team conducts their own fundamental, bottom-up research as they believe careful stock selection results in true-to-label value investing. Polaris uses a benchmark agnostic, proprietary approach that emphasises sustainable inflation adjusted cashflows.
Employing an all-cap, all-country approach provides the flexibility to find some of the best value opportunities available across the market. The result is a well-diversified portfolio with a higher exposure to small-and mid-cap companies than the benchmark.
For over 20 years, Boston-based specialist global equity manager, Polaris Capital Management, LLC (Polaris), has applied its own brand of value investing by focusing on forecasting sustainable free cashflows.
Led by Bernie Horn, who has been in investment management since the early 1980s, the Polaris team has 150+ years of collective industry expertise.
Find out more about the Polaris Global Equity Fund
Target investors
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.
Polaris Global Equity Fund
All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk (including the potential for loss and unit price variability over the short term). The risks of investing in the Polaris Global Equity Fund include:
Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price, by material amounts over short periods.
Market risk: The investments that the Fund 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 Fund.
International and emerging market risk: The Fund has exposure to a range of international economies, including emerging economies. Global and country specific macroeconomic factors may impact the investments that the Fund 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.