Apostle Asset Management

Apostle Polar Capital Emerging Markets Growth Strategy

Investment Objective

The Apostle Polar Capital Emerging Markets Growth Strategy’s investment objective is to deliver long-term capital appreciation through investment in emerging market equities, with a bias towards mid-cap companies demonstrating secular growth rather than cyclical growth. The benchmark used for performance measurement is the MSCI Emerging Market Total Return Index in AUD.

Primary Investments

Up to 100% of the Strategy is usually invested in a diversified basket of actively managed emerging market equities. A maximum of 10% of the Strategy can be allocated to cash.

Style

Bottom-up, Fundamental, Flat Portfolio.

Investment Philosophy

Polar Capital believe that the key differentiator for emerging markets is the process of economic development and consequently they attempt to invest in the beneficiaries of the growth in the middle class, the process of urbanisation, the rolling out of the necessary infrastructure and the financial deepening that occurs in developing economies.

Process

Polar Capital’s investment approach combines bottom-up stock selection with top-down macroeconomic research and analysis, including an innovative sector overlay designed to help identify the long-term secular drivers of the market.

The Investment Manager aims to identify sectors that will demonstrate higher than average growth within growing economies as well as compare those opportunities across the geographical universe of investible countries.

While top-down analysis provides useful indicators of the countries and sectors most likely to outperform, stock selection remains the key driver of portfolio construction and a key source of alpha. The Investment Manager uses a full matrix of valuation methods to ensure that it does not overpay for growth.

The Strategy is invested on a multi-capitalisation basis, although, it is expected to generally underweight the largest capitalisation stocks relative to the Index. The Strategy will normally hold between 60 and 80 stocks across a broad range of countries and sectors. Individual holdings are generally weighted between 1%-1.5% at cost.

Portfolio Fit

With an emphasis on mid-cap companies biased to domestic growth, the Strategy would complement value biased, large-cap cyclical growth-focused strategies.

Currency

Unhedged.

Management Fees

Available upon request.

Vehicle

Fully distributing wholesale Australian Registered Managed Investment Scheme. The Fund will have daily valuations, and applications and redemptions can generally be accepted daily. Apostle Asset Management Limited acts as Responsible Entity.

Segregated mandates are available for investments amounts above A$100mn.

Investment Manager

Founded in 2001, Polar Capital LLP is a specialist investment management company offering professional and institutional investors a range of geographical and sector funds. The Company’s investment strategies have a fundamental research driven approach.

Portfolio Team

William Calvert joined Polar Capital with his team from AXA Framlington in October 2010. The other team members include Ming Kemp and Neil Denman.

Pdf Download

Product Flyer - printable version
Monthly Fact Sheet - March 2012

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