Macquarie Professional Series
Enabling local access to global specialists
The Polaris Global Equity Fund is proudly brought to you by Macquarie Professional Series. We search the world to uncover differentiated investment solutions, enabling local investors to access strategies from world-class fund managers. We leverage our insights into the local investment landscape, seeking to anticipate investment needs and identify relevant opportunities currently overlooked in the market.
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
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.
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 18% 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.
1 Style Analytics, as at 30 September 2023.
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 approximately 45,000 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.
For more information on our equity capabilities
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 Polaris Global Equity Fund is designed for investors who are seeking capital growth, are intending to use the Fund as a satellite within a portfolio, have a medium to long-term investment timeframe, have a high or very high risk/return profile and require the ability to have daily access to capital. Please review the Target Market Determination for the Fund available at macquarieim.com/TMD and consider if the Fund may be suitable for you.
Macquarie Investment Management Australia Limited (ABN 55 092 552 611 AFSL 238321) the issuer and responsible entity of the Fund. In deciding whether to acquire or continue to hold an investment in the Fund, an investor should consider the Fund’s product disclosure statement. The product disclosure statement is available on our website at macquarie.com.au/pds or by contacting Macquarie Investment Management on 1800 814 523. This information is intended for recipients in Australia only.