Polar Capital income fund bags spot on HL’s Wealth Shortlist

It has been labelled a good diversifier compared to other growth-focused European strategies


Hargreaves Lansdown (HL) has added Polar Capital’s €120m (£106.7m) European ex-UK Income strategy to its Wealth Shortlist.

The fund invests in undervalued larger European companies with the potential to bounce back.

HL investment analyst Josef Licsauer said: “The fund could be a good addition to an investment portfolio focused on income, or provide some diversification to other European or global funds focused on growth.”

The strategy has been managed by Nick Davis since its launch in 2015, who Licsauer described as “a contrarian investor at heart”.

He added: “We like the defensive nature of the approach and the disciplined investment process. Our conviction lies with Davis who has built a strong track record in European income investing which gives us confidence in the fund’s long-term prospects. Though as always there are no guarantees.”

The portfolio is divided into three main bucket – balanced, growth and income, and high yielders, with holdings split evenly across each theme.

The fund returned 11% for the 12 months to the end of January, outperforming its IA Europe ex-UK benchmark which rose 2.8%.

It is the second addition to the Wealth Shortlist in recent days following the induction of the Legal & General Future World ESG UK Index on Tuesday.

See also: Polar Capital Global Financials Trust manager to retire

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