Head of the Large Company Growth Team and the lead portfolio manager of the firm’s Global Growth strategy, Damon Ficklin introduces Polen Capital and provides an overview of the investment philosophy and approach to building a concentrated portfolio of outstanding global businesses.
4Q2020 Global Growth Commentary – Jeff Mueller provides an overview of 2020 with Polen taking the opportunity to upgrade the quality of the portfolio by selling four of our businesses and reallocating the proceeds into what Polen believes are four even higher quality, globally-scaled and dominant businesses.
*this is a forward pricing fund, the price you receive is based on close of market prices.
|Polen Capital Growth
|MSCI ACWI Net
Total Return Index
|Compounded annual return||16.10%||11.15%||4.95%|
Any income distributions are paid annually (as at 30 June each year) and can be reinvested in full or paid out entirely. There may be periods when net income could be negative and no distribution is made.
**Performance for prior periods is based on the actual performance of the Polen Capital Global Growth strategy managed by Polen Capital since 31 December 2014, adjusted for fees and converted to AUD.
You should read the Product Disclosure Statement (PDS) before deciding to acquire the product.
The Polen Capital Global Growth Fund invests using an identical strategy to the Polen Capital Global Growth strategy. Past performance is not a reliable indicator of future performance.
Units in the Polen Capital Global Growth Fund (ARSN: 647 518 723) (Fund) are issued by the Fund’s responsible entity Fundhost Limited (ABN 69 092 517 087) (AFSL 233045). The Fund’s investment manager is Montgomery Investment Management Pty Ltd (ABN 73 139 161 701, AFSL 354 564). The fund’s sub-investment manager is Polen Capital Management, LLC.
The PDS contains all of the details of the offer. Copies of the PDS are available from Montgomery Investment Management on (02) 8046 5000 or at www.montinvest.com. Before making any decision to make or hold any investment in the Fund you should consider the PDS in full. An investment in the Fund must be through a valid application form attached to the PDS or via the online application form. You should not base an investment decision simply on past performance. Past performance is not a reliable indicator of future performance. The investment returns of the Fund are not guaranteed, and so the value of an investment may rise or fall.
The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon this information and consider seeking advice from a licensed financial advisor if necessary.
Polen Capital has been dedicated to serving investors by providing concentrated portfolios of the highest quality companies for more than three decades. Polen is passionate about its mission to protect and grow its clients’ capital while identifying unique opportunities to access, and invest in, the most sustainable and exceptional businesses worldwide.
Polen has a culture of making a meaningful difference in the lives of investors entrusting the firm with their financial well-being.
The Large Company Growth team which manages the Polen Capital Global Growth Fund, comprises six portfolio managers and five analysts.
B.S. in Accounting, M.S. in Accounting, M.B.A.
Damon Ficklin is the Head of the Large Company Growth Team and the lead portfolio manager of the firm’s Global Growth strategy. Damon joined Polen Capital in 2003.
Prior to joining Polen Capital, Damon spent one year working as an equity analyst with Morningstar and four years as a tax consultant to Fortune 500 companies with Price Waterhouse.
Damon graduated magna cum laude from the University of South Florida with a B.S. in Accounting, earned a M.S. in Accounting from Appalachian State University, and earned an M.B.A. with high honours from The University of Chicago Booth School of Business. He serves on the Investment Committee to the Board of the Make-A-Wish Foundation of Southern Florida.
B.A. in Communications and Business Administration, M.B.A.
Jeff Mueller is the co-portfolio manager of the firm’s Global Growth Portfolio. Jeff joined Polen Capital in 2013. Prior to joining Polen Capital, Jeff spent 10 years in the U.S. Marine Corps, during which he flew over 250 combat missions in F/A-18s.
Jeff received his B.A. in Communications and Business Administration from Trinity University in San Antonio where he was Captain of the Men’s Tennis Team, an All American and NCAA Champion. Jeff is a Tillman Scholar and earned his M.B.A. from Columbia Business School where he was a graduate of the Value Investing Program. He graduated from Columbia with honours and distinction.
After accessing the Product Disclosure Statement and reading in full the investment objectives and risks of investing in the Polen Capital Global Growth Fund:
Complete the online application form and ID verification online on the Olivia123 platform
(approx. 10 minutes)
Submit the completed application form online to the Administrator
Transfer the funds and an investment confirmation will be issued directly by the Administrator
For assistance completing your application form, you can speak directly with the Administrator, Fundhost Limited, on 02 8223 5400.
Download the fund information pack or if you would prefer to talk it over, call David Buckland or Toby Roberts from Montgomery Investment Management on 02 8046 5000 to discuss the Polen Capital Global Growth Fund in more detail.
The Polen Capital Global Growth Fund’s objective is to outperform the MSCI ACWI Net Total Return Index, in Australian Dollars, over a rolling five-year period, net of fees. Returns are not guaranteed.
Polen Capital (Polen) believes that long-term thinking concentrates its focus on owning great businesses rather than buying and selling (trading) stocks for the short-term. Additionally, Polen believes that the share prices of the portfolio companies will be driven by the underlying earnings growth of the business over the long-term. This leads to a positive bias, in Polen’s opinion, toward relatively predictable businesses that can be estimated with conviction.
Polen seeks to reduce risk – meaning risk of permanent capital loss – by investing in fewer, stronger businesses with competitive and financial strengths including little or no net debt and strong free cash flow generation. Polen does not try to make market predictions and hence the portfolios are close to fully invested at all times.
Polen Capital does not hedge currency risk, and the belief is this would add cost and complexity to the portfolio without materially reducing risk of capital loss. Most investments are in larger capitalisation, multi-national and globally competitive companies that tend to earn revenues in several currencies. Many of these companies are also able to match local currency revenues and expenses or enjoy natural currency hedges or directly hedge currency exposure at the corporate level. Polen’s expectations are that currency volatility is unlikely to be a material source of risk or return in the portfolio over a typical holding period.
Sector allocation is a residual of the stock selection process. Polen Capital typically seeks to limit a portfolio’s allocation to a single sector to approximately 50 per cent and a single industry to 25 per cent. The portfolios have historically had minimal exposure to the financial, industrial materials, utilities, telecom, real estate and energy sectors because businesses within these sectors tend to be capital intensive, cyclical and often heavily regulated and do not meet Polen’s strict requirements for consistency of earnings, free cash flow growth and steady high returns on invested capital.
Country allocation is also a residual of the stock selection process. Typically, Polen invests in businesses in at least five countries and often ten or more. As much as possible, Polen invests in larger and more liquid companies. The stocks in the Polen Capital Global Growth Fund have a market capitalisation greater than US$5 billion.
The portfolio is close to fully invested at all times; cash will be minimal.
A minimum initial investment of $25,000 is required.
You may also add to your initial investment through a lump sum additional investment, minimum of $5,000 which are generally processed daily. We also offer a direct debit monthly savings plan, requiring a minimum investment of $500 per month. This is processed on the 15th of each month or the next business day.
Any income distributions are paid annually (as at 30 June) and can be reinvested in full back into the Polen Capital Global Growth Fund or paid out entirely to the financial institution account nominated on your application form. You can indicate your choice on the application form.
If you do not make a choice, then distributions will be reinvested. Any distributions reinvested are reinvested at the ex-distribution mid-price.
Distributions will not be paid by cheque. Distribution payments are typically made within 20 business days after the end of the distribution period. Distributions are not guaranteed.
To redeem your holding, simply fill out the Redemption Request form and have it signed by the authorised signatories on the account. Please see the manage my investments section.
If Fundhost are paying to a bank account they have on file, they can accept a faxed or scanned copy of the redemption instruction.
In normal circumstances, redemptions are processed daily, with funds generally received back to the investor within 2 business days. The cut off to receive your redemption request to receive that day’s price is 4pm Sydney time. Refer to the PDS for more information.