Polar Capital Share Discussion Threads

[tommy ten chins] 02/7/2013 15:44

Thanks Henry, good article. Price seems to be ready for another rise after some sideways movement around the £4 ceiling.

[henryatkin] 23/6/2013 18:24

hxxp://www.morningstar.co.uk/uk/news/109344/an-investment-trust-that-really-puts-shareholders-first.aspx

An Investment Trust that Really Puts Shareholders First?

The imminent launch of Polar Capital Global Financials has caught our attention, and not just because of its investment remit

Jackie Beard, FCSI 21 June, 2013 | 12:19PM
We don't normally write about individual fund launches, but the imminent launch in the investment trust sector of a new fund has caught my attention and not just because of its investment remit. Polar Capital Global Financials has some features that make it more shareholder-friendly than we're used to seeing.

Firstly there is the structure of the performance fee. It has a hurdle rate, a high water mark and it will only be paid to the investment manager at the end of the trust's seven-year life. That means it won't erode gains unnecessarily during the fund's life by chipping away at them every year. It also discourages the investment managers from being overly focused on short-term gains and allows them to take a longer-term view. The management fee is calculated on the lower of the fund's net asset value (NAV) and market capitalisation. At 0.85% it compares very favourably with its peers, although the deferral of the performance fee to the end of the fund's life will distort the Ongoing Charges somewhat.

The seven-year fixed life is an interesting feature. The managers believe in 10-year market cycles and their view is that we're two years or so into the current cycle. No doubt as the end of the fund's life approaches, there will be discussions on whether to offer a rollover vehicle, but the fixed life helps with the management of the fund's discount, or at least that's Polar's view. Nonetheless, it should give some comfort to those who are a little sceptical of investment trusts and their potential for widening discounts as there will always be an endpoint in sight (May 2020).

The managers themselves are investing at launch, despite the fact they already run open-end financials funds and already have personal investments in the sector. They each bring a background in financials as well as public track records through which we can analyse their performance-a caveat here is that this is the first time they share the management responsibility of a fund. John Yakas has the greater experience as he has spent the majority of his 25-year career analysing financials; co-manager Nick Brind has a wider background, which includes the management of investment trusts while at Exeter Fund Management.

Then there's the fund's board of non-executive directors. Initially there will be just three members, of which two are female; that's the first fund board I've seen that has a female majority. Further, they will all be investing at least half of their annual salary into the fund each year for the first five years. A smaller-than-average board helps to keep a lid on costs, although it increases their workload. Each member has wide-ranging experience and, unusually, they are all under 60 years of age (just!). While some can argue a younger board is by definition less experienced, each of them has a background that is relevant to this fund's remit and they're not part of the investment trust 'old guard.'

But what about the opportunity set? The word 'financials' has been enough to send many into hiding in the last six years. The financials sector is about much more than banks, though. The Bloomberg World Financials index comprises banks, property, non-life insurance and life insurance, and these can be split further into sub-categories such as insurance broking, credit card issuers, exchanges, asset management and specialist lenders. It's fair to say that financials aren't top of most investors' buy-lists right now but I can see the logic behind Polar's belief that the next cycle is underway.

The decision on whether the time is right to buy into financials isn't mine to make but there's no doubt this fund has some shareholder-friendly qualities that make it stand out among peers.
- See more at: hxxp://www.morningstar.co.uk/uk/news/109344/an-investment-trust-that-really-puts-shareholders-first.aspx#sthash.sch6Vkg1.dpuf

[glynedwards] 14/6/2013 08:44

Keep quiet. More stunning results and a good payout. Cautious outlook but I think fund/asset managers will do well over the next few years.

[tommy ten chins] 13/6/2013 13:08

Results tomorrow?
chart turning down.. now 368

[tommy ten chins] 20/5/2013 16:28

The new fund seems to have had a smaller effect than I would have thought! Now 380p What a chart (see post 53 on chart above). The fundamentals from REFS are still cracking
Yield 4.55%
PER 16.1
PEG 0.32
Growth 50.1%
Recommendations But, Hold, Buy.

I might just buy some more but that'll unbalance my portfolio too much.

Please maintain BB silence.

[glynedwards] 11/4/2013 10:24

ttc, Nice growth in AUM both from investment gains and net new funds.

Hope the noise on the board doesn't jinx the price.

[tommy ten chins] 11/4/2013 08:49

AUM up significantly. Moving up again.

[tommy ten chins] 25/2/2013 11:46

Looks like It might be a good move - now 295p. (27/3/13)
Quiet boards are the best eh... yes. (tumbleweed)

[tommy ten chins] 25/2/2013 11:46

Some more bought last week - fingers crossed.

[tommy ten chins] 20/2/2013 12:38

Comic Book Guy,

Thanks for the interesting link. I am a long term holder keen on the fundamentals, this article may prompt me to buy more.
Thanks
T

[glynedwards] 11/1/2013 11:59

Good increase in AUM again. This is developing nicely.

[wexboy] 23/5/2012 16:18

Hey folks,

Please take a look at my latest writeup on (alternative) asset managers, including another look at Polar, here:



Cheers,

Wexboy

[wexboy] 16/5/2012 15:06

Polar's on an ex-cash 3.8% of AUM - see how that stacks up vs. other alternative asset managers, and in terms of absolute value:



Cheers,

Wexboy

[tommy ten chins] 05/3/2012 21:09

Nice turn up to a recent high.

[matt123d] 13/7/2011 08:31

XD for 6p today

[matt123d] 07/7/2011 16:30

Large trades at 200p today has obviously cleared out any supply.

250p definitely the next top short term but can see these at 400p by the end of this bull market.

[tommy ten chins] 07/7/2011 16:04

Hydrus

£2 now - what next?
Niiiice!

[matt123d] 14/6/2011 08:34

Very good results, nearly at 2012 estimates!

[hydrus] 23/5/2011 14:23

Looks like next stop £2, expect this within next month or os

[matt123d] 20/5/2011 08:56

Breaking out

[nellie1973] 14/1/2011 16:17

Broker upgrade today

[nellie1973] 01/12/2010 10:21

Broker upgrade today