Summary Prospectus July 29, 2021
Polar Capital
Emerging Market Stars Fund
Ticker: POLEX
Before you invest, you may want to review the Fund's Prospectus, which contains more
information about the Fund and its risks. You can find the Fund's Prospectus, reports to shareholders, and other information about the Fund online at www.polarcapitalfunds.com. You
can also get this information at no cost by calling (800) 806-1112 (toll free) or (312) 557-3164, by sending an email request to PolarCapital@ntrs.com, or by asking any financial advisor,
bank, or broker-dealer who offers shares of the Fund.
The Fund's Prospectus
and Statement of Additional Information, each dated July 29, 2021, as supplemented, and the audited financial statements on pages 10-17 of the Fund’s shareholder report dated
March 31, 2021 are incorporated into this Summary Prospectus by reference and may be obtained free of charge at the website, phone number, or e-mail address noted
above.
Investment
Objective
The Fund’s investment objective is to achieve long term
capital growth.
Fees and Expenses
These tables describe the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. The tables and example below do not reflect commissions that a shareholder may be
required to pay directly to a broker or other financial intermediary when buying or selling shares of the
Fund.
Shareholder Fees (Fees paid directly from your investment)
| |
|
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |
None |
| Maximum Deferred Sales Charge (Load) (as a percentage of amount redeemed) |
None |
| Redemption Fee (as a percentage of amount redeemed) |
None |
Annual Fund Operating Expenses (Expenses that you pay each year as a percentage of the value of your investment)
| |
|
| Management Fee |
1.00% |
| Other Expenses(1) |
4.34% |
| Total Annual Fund Operating Expenses |
5.34% |
| Fee Waivers and Reimbersements(2) |
(4.34)% |
| Total Annual Fund Operating Expenses After Fee Waivers and Reimbursement |
1.00% |
(1)
Other Expenses are based on estimated amounts for the current fiscal year.
(2)
Polar Capital LLP (the “Adviser”), the Fund’s investment adviser, has contractually agreed to waive
Management Fees and to reimburse Other Expenses to the extent Total Annual Fund Operating Expenses (exclusive of brokerage costs,
interest,
taxes, dividends, litigation and indemnification expenses, expenses associated with the investments in underlying investment companies) exceed 1.00% of the average daily net assets of the Fund through July 31, 2022. Amounts waived or reimbursed in a particular contractual period may be recouped by the Adviser for 36 months following the waiver or reimbursement however, such recoupment will be limited to the lesser of
any expense limitation in place at the time of recoupment or the expense limitation in place at the time of waiver or reimbursement. This agreement may only be terminated earlier by the Fund’s Board of Trustees (the
“Board”) or upon termination of the Investment Management Agreement.
Expense Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in
other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The
Example shows costs if you sold (redeemed) your shares at the end of the period or continued to hold them. The
Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. The Example reflects applicable expense limitation agreements and/or waivers in effect, if any, for the one-year period and
the first year of the three-year period. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
| One Year |
Three Years |
Five Years |
Ten Years |
| $102 |
$1,209 |
$2,308 |
$5,024 |
Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns
over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result
in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual
Fund Operating Expenses or in the Expense Example, affect the Fund’s performance.
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Polar Capital Emerging Market Stars Fund
During its most recent fiscal period ended March 31, 2021, the Fund’s portfolio turnover rate was 15% of the
average value of its portfolio.
Principal Investment Strategies
The Fund will seek to achieve its investment objective by primarily investing in a portfolio of equity securities and equity related securities of, or relating to, issuers which are domiciled,
or exercise the predominant part of their economic activity, in developing capital markets (“Emerging
Markets”). Under normal market conditions, the Fund invests at least 80% of its net assets for investment
purposes in equity securities of issuers located in Emerging Markets countries. The Fund considers an issuer to be
located in an Emerging Markets country if at least 50% of the issuer’s assets, gross revenues or profits
during the most recent fiscal year represents assets or activities located in such countries. Emerging Markets
refers to any country represented in the MSCI Emerging Markets Index.
The securities in which the Fund will invest will include shares, equities, equity warrants, preferred shares,
shares in collective investment schemes with investment policies that are consistent with the Fund’s
investment objective and securities convertible into shares.
The Fund will invest in and have direct access to China A shares listed on the Shanghai Stock Exchange
(“SSE”) via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect Schemes
(collectively, “Connect Scheme”). The Fund may indirectly gain access to China A Shares by purchasing
equity-related instruments, participation notes and participatory certificates.
The Fund may also invest in Global, American and European depository receipts for the purpose of gaining exposure to underlying equity securities.
The Fund may utilize various derivative instruments and related strategies to gain exposure to one or more issuers or other assets. The Fund may utilize derivatives of all types and may
invest in futures, forwards, options, contracts for difference, swaps and securities with embedded derivatives or
elements of derivative exposure including, but not limited to, equity warrants and structured notes, such as
P-Notes (which will not be leveraged).
The Fund expects to primarily use
derivatives for hedging or efficient portfolio management purposes or to reduce portfolio risk. The Fund may also
use them to increase the Fund’s investment exposure beyond that which it could achieve by investing directly in more conventional securities.
Securities with embedded derivatives or elements of derivative exposure, such as equity warrants and structured
notes such as P-Notes (which will not be leveraged) may be used to gain exposure to underlying equity or equity
related securities as a more efficient and cheaper alternative to direct investment in that
security.
The Fund observes a policy to normally invest at least 80% of its net assets (plus borrowings made for investment purposes) in equity securities and other equity-related investments in
Emerging Markets. The Fund’s investments in derivatives and other synthetic instruments that have economic
characteristics similar to these investments will be counted toward satisfaction of the Fund’s 80%
investment policy.
Principal Risks
It is possible to lose money on an investment in the Fund. The Fund will be affected by the investment decisions, techniques and risk analyses of the Fund’s Adviser and there is no guarantee that the Fund will achieve its investment
objective. Any of the following risks, among others, could affect Fund performance or cause the Fund to lose
money or to underperform market averages of other funds.
Credit Risk. The
Fund will be exposed to credit risk relating to parties with whom it trades and may also bear the risk of
settlement default. In the event of a bankruptcy or other default, the Fund could experience both delays in
liquidating the underlying securities and losses including a possible decline in value of the underlying
securities during the period when the Fund seeks to enforce its rights thereto. This will have the effect of reducing levels of capital and income in the Fund and lack of access to income during this period together with the expense of enforcing the
Fund’s rights.
Risks Associated with Investing in Equities. The Fund may invest in equity and equity-related securities traded on recognized stock exchanges and over-the-counter markets. Equity securities will be subject to risks associated with such investments,
including fluctuations in market prices, adverse issuer or market information and the fact that equity and
equity-related interests are subordinate in the right of payment to other corporate securities, including debt
securities. The value of these securities varies with the performance of the respective issuers and movements in
the equity markets generally. As a result, the Fund may suffer losses if it invests in equity securities of
issuers where performance falls below market expectations or if equity markets in general decline or the Fund has
not hedged against such a general decline. Futures and options on futures on equity securities and indices are
subject to all the foregoing risks, in addition to the risks particularly associated with futures and derivative
contracts.
Risks Associated with Investing in Emerging
Markets. The Fund’s investments in non-U.S. issuers in developing or emerging market countries may involve increased exposure to changes in economic, social and political factors as compared
to investments in more developed countries. The economies of most emerging market countries are in the early
stage of capital market development and may be dependent on relatively fewer industries. As a result, their
economic systems are still evolving. Their legal and political systems may also be less stable than those in developed economies. Securities markets in these countries can also be smaller, and there may be increased settlement risks. The Public
Company Accounting Oversight Board, which regulates auditors of U.S. companies, is unable to inspect audit work
papers in certain foreign countries. Investors in emerging markets often have limited rights and few practical
remedies to pursue shareholder claims, including class actions or fraud claims, and the ability of the U.S.
Securities and Exchange Commission, the U.S. Department of Justice and other authorities to bring and enforce
actions against foreign issuers or foreign persons is limited. Emerging market countries often suffer from
currency devaluation and higher rates of inflation. Due to these risks, securities issued in developing or
emerging countries may be more volatile, less liquid, and harder to value than securities issued in more
developed countries.
Investment in Russia: While fundamental reforms relating to securities investments and regulations in Russia have been initiated in recent years, there may still be certain ambiguities in interpretation and inconsistencies in their application. Monitoring
and enforcement of applicable regulations remains uncertain.
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Polar Capital Emerging Market Stars Fund
Some equity securities in Russia are
dematerialized, meaning that ownership is generally recorded in book-entry form in the register of shareholders,
and the only evidence of ownership is entry of the shareholder’s name on the share register of the issues. The concept of fiduciary duty is not well established and shareholders may, therefore, suffer dilution or loss of investment due to the
actions of management without satisfactory legal remedy. Rules regulating corporate governance are undeveloped
and therefore may offer little protection to minority shareholders.
Investment in China: The Chinese economy is generally considered an emerging and volatile market. Although China has experienced a relatively stable political environment in recent years,
there is no guarantee that such stability will be maintained in the future. Political, regulatory and diplomatic
events, such as the U.S.-China “trade war” that intensified in 2018, could have an adverse effect on
the Chinese or Hong Kong economies and on investments made through Stock Connect program. Investing in securities
of Chinese issuers, including by investing in A Shares, involves certain risks and considerations not typically
associated with investing in securities of U.S. issuers, including, among others, (i) more frequent (and
potentially widespread) trading suspensions and government interventions with respect to Chinese issuers,
resulting in a lack of liquidity and in price volatility, (ii) currency revaluations and other currency exchange
rate fluctuations or blockage, (iii) the nature and extent of intervention by the Chinese government in the Chinese
securities markets, whether such intervention will continue and the impact of such intervention or its
discontinuation, (iv) the risk of nationalization or expropriation of assets, (v) the risk that the Chinese
government may decide not to continue to support economic reform programs, (vi) potentially higher rates of inflation, (vii) the unavailability of consistently-reliable economic data, (viii) the relatively small size and absence of operating
history of many Chinese companies, (ix) accounting, auditing and financial reporting standards in China are
different from U.S. standards and, therefore, disclosure of certain material information may not be available,
the quality of financial information may vary and the Public Company Accounting Oversight Board, which regulates auditors of U.S. public companies, is unable to inspect audit work papers in certain foreign countries, including China, (x) greater
political, economic, social, legal and tax-related uncertainty, (xi) higher market volatility caused by any
potential regional territorial conflicts or natural disasters, (xii) higher dependence on exports and
international trade, (xiii) the risk of increased trade tariffs, embargoes and other trade limitations, (xiv)
restrictions on foreign ownership, and (xv) custody risks associated with investing through programs to access
Chinese securities. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese
issuers have the ability to suspend the trading of their equity securities, and have shown a willingness to
exercise that option in response to market volatility and other events. The liquidity of Chinese securities may
shrink or disappear suddenly and without warning as a result of adverse economic, market or political events, or
adverse investor perceptions, whether or not accurate.
Stock
Connect Investing Risk. China “A Shares” are equity securities of issuers incorporated in mainland China that are denominated and currently traded in Renminbi (“RMB”)
on the Shanghai or Shenzhen Stock Exchanges. Subject to minor exceptions, under current regulations in China,
foreign investors, such as the Fund, can invest in A Shares only (i) through certain institutional investors that
have obtained a license and quota from the Chinese regulators or (ii) through the Hong Kong-Shanghai Stock
Connect or Shenzhen-Hong Kong Stock Connect programs. The Fund will invest in A Shares listed and traded on the SSE or Shenzhen Stock Exchange (“SZSE”) through the Stock Connect
program, or on such other stock exchanges in China which participate in the Stock Connect program from time to time. The Fund’s investments in Stock Connect A Shares are
generally subject to Chinese securities regulations and listing rules, among other restrictions that may affect
the Fund’s investments and returns, including daily limits on net purchases and transfer restrictions. In
addition, the Stock Connect program’s trading, clearance and settlement procedures are relatively untested
in China, which could pose risks to the Fund. While overseas investors currently are exempt from paying capital
gains or value added taxes on income and gains from investments in Stock Connect A Shares, these Chinese tax
rules could be changed, which could result in unexpected tax liabilities for the Fund.
The Stock Connect program will only operate on days when both the Chinese and Hong Kong markets are open for trading and when banks in both markets are open on the corresponding settlement days. There may be occasions when the Fund may be subject to the risk of price fluctuations of A Shares during the
time when the Stock Connect program is not trading. Because of the way in which China A shares are held in Stock
Connect, the Fund may not be able to exercise the rights of a shareholder and may be limited in its ability to
pursue claims against the issuer of a security, and may suffer losses in the event the depository of the SSE or the
SZSE becomes insolvent. Only certain China A shares are eligible to be accessed through the Stock Connect
program. Such securities may lose their eligibility at any time, in which case they presumably could be sold but
could no longer be purchased through the Stock Connect program. The Stock Connect program is a relatively new
program. Further developments are likely and there can be no assurance as to the program’s continued existence or whether future developments regarding the program may restrict or adversely affect the Fund’s investments or returns.
In addition, the application and interpretation of the laws and regulations of Hong Kong and China, and the
rules, policies or guidelines published or applied by relevant regulators and exchanges in respect of the Stock
Connect program are uncertain, and they may have a detrimental effect on the Fund’s investments and
returns.
Derivatives Risk. The use of derivatives involves the risk that their
value may not move as expected relative to the value of the relevant underlying assets, rates, or indices. Derivatives also present other risks, including market risk, liquidity risk, and counterparty risk.
Market Risk. The
value of securities and instruments owned by the Fund may rise and fall, sometimes rapidly or unpredictably, due
to factors affecting securities markets generally or particular industries or geographic areas.
Liquidity Risk. In some circumstances, investments may be
relatively illiquid making it difficult to acquire or dispose of them at the prices quoted on the various
exchanges. Accordingly, the Fund’s ability to respond to market movements may be impaired and the Fund may
experience adverse price movements upon liquidation of its investments. Settlement of transactions may be subject to delay and administrative uncertainties.
Counterparty and Third Party Risk. Transactions involving a counterparty to a derivative contract, repurchase agreement, reverse repurchase agreement, or other financial instrument, or a third party responsible for servicing the instrument, are
subject to the credit risk of the counterparty or third party, and to the counterparty’s or third
party’s ability to perform in accordance with the terms of the transaction.
Large Investor
Risk. Ownership of shares of the Fund may be concentrated in one or a few large investors. Such investors may redeem shares in large quantities or on a frequent basis.
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Polar Capital Emerging Market Stars Fund
Redemptions by a large investor may affect the performance of the Fund, may increase realized capital gains, may accelerate the realization of taxable income or gains for shareholders and may
increase transaction costs. These transactions potentially limit the use of any capital loss carryforwards and
certain other losses to offset future realized capital gains (if any). Such transactions may also increase the
Fund’s expenses. In addition, the Fund may be delayed in investing new cash after a large shareholder purchase, and under such circumstances may be required to maintain a larger cash position than it ordinarily would.
Management Risk. The Fund is subject to management risk as an
actively managed investment portfolio. The portfolio managers will apply investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce the desired results. The portfolio
managers’ opinion about the intrinsic worth or creditworthiness of a company or security may be incorrect,
the portfolio managers may not make timely purchases or sales of securities for the Fund, the Fund’s
investment objective may not be achieved, or the market may continue to undervalue the Fund’s securities.
In addition, the Fund may not be able to quickly dispose of certain securities holdings. Moreover, there can be
no assurance that the personnel of Polar Capital LLP (the “Adviser”) will continue to be associated with the Adviser for any length of time, and the loss of services of one or more key employees of the Adviser, including the portfolio
managers, could have an adverse impact on the Fund’s ability to achieve its investment objective. Certain
securities or other instruments in which the Fund seeks to invest may not be available in the quantities desired.
In such circumstances, the portfolio managers may determine to purchase other securities or instruments as
substitutes. Such substitute securities or instruments may not perform as intended, which could result in losses to the Fund.
Key Person Risk. The Fund is heavily dependent upon Mr. Jorry Rask
Nøddekær for its operation and for the execution of its investment strategy. The Fund would likely find it more difficult to execute its investment strategy and to continue its operation in the event he were no longer involved in the management of the
Fund.
Risks Associated with Non-Diversification. The Fund is non-diversified, which generally means
that it may invest a greater percentage of its total assets in the securities of fewer issuers than a
“diversified” fund. This increases the risk that a change in the value of any one investment held by
the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding
a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund. In addition, due to its relatively low number of holdings, the Fund will be more susceptible to
company-specific events and risks impacting the particular securities held by the Fund than a fund with a greater
number of holdings.
Because of these and other risks, you could lose money by
investing in the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
PERFORMANCE INFORMATION
Because the Fund does not have returns for a full calendar year, no investment return information is presented
for the Fund at this time. In the future, investment return information will be presented in this section of the prospectus. The information will give some indication of the risks of investing in the Fund by
comparing the
Fund’s investment returns with a broad measure of market performance. The Fund intends to compare its performance to the Morgan Stanley Capital International Emerging Markets Net
Total Return Index. Also, shareholder reports containing financial and investment return information will be
provided to shareholders semi-annually. Updated performance information is available by calling (800) 806-1112 (toll free) or (312) 557-3164.
MANAGEMENT OF THE FUND
Investment Adviser
Polar Capital LLP (“Polar Capital”) is the Fund’s investment adviser.
Portfolio Manager
Jorry Rask Nøddekær is a Lead Fund Manager with Polar Capital and has served as
the lead portfolio manager of the Fund since its inception.
Naomi Waistell is a Fund Manager with Polar Capital and has served as a portfolio manager of the Fund
since its inception.
Purchase and Sale of Fund
Shares
Shares of the Fund may be purchased or sold on any business day (normally any day when the New York Stock Exchange opens for regular trading). You can buy or sell shares of the Fund through
a broker-dealer or other financial intermediary; by writing to us at:
Standard
Polar Capital Emerging Markets Stars Fund
c/o The Northern Trust Company
P.O. Box 4766
Chicago, IL 60680-4766
c/o The Northern Trust Company
P.O. Box 4766
Chicago, IL 60680-4766
Overnight
Polar Capital Emerging Markets Stars Fund
c/o The Northern Trust Company
333 S Wabash, WB-38
Chicago, IL 60604;
or by calling us at 800-806-1112 (toll free) or 312-557-3164.
c/o The Northern Trust Company
333 S Wabash, WB-38
Chicago, IL 60604;
or by calling us at 800-806-1112 (toll free) or 312-557-3164.
Purchase Minimums
Minimum Initial Investment: $100,000
Minimum Additional Investment: No Minimum
The Fund reserves the right to modify or waive purchase and investment minimums, without prior notice, or to waive minimum investment amounts in certain circumstances in its discretion.
For example, the minimums listed above may be waived or lowered for investors who are customers of certain
financial intermediaries that hold the Fund’s shares in certain omnibus accounts, (ii) current and former
Trustees of the Trust; and (iii) officers, directors and employees of the Trust, the Adviser and the Adviser’s affiliates, in each case at the discretion of the officers of the Fund. In addition, financial intermediaries may impose their own minimum
investment and subsequent purchase amounts.
Tax Information
The Fund’s distributions are generally taxable to you as ordinary income, capital gains, or a combination of the two, unless you are investing through a tax advantaged arrangement, such as an
IRA or 401(k) plan. If you are investing through a tax advantaged arrangement, you may be taxed upon withdrawals
from that arrangement.
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Prospectus July 29, 2021
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Polar Capital Emerging Market Stars Fund
Payments to
Broker-Dealers and Other Financial Intermediaries
Shareholders may be required to pay a commission directly to their broker or other financial intermediary when
buying or selling shares of the Fund. Shareholders and potential investors may wish to contact their broker or
other financial intermediary for information regarding applicable commissions, transaction fees or other charges
associated with transactions in shares of the Fund.
In addition, brokers, dealers, banks, trust companies and other financial intermediaries may receive
compensation from the Fund and/or its related companies for providing a variety of services, which may include
recordkeeping, transaction processing for shareholders’ accounts and certain shareholder services not
currently offered to shareholders that deal directly with the Fund. These payments may create a conflict of
interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial intermediary’s website for more
information.
Summary Prospectus July 29, 2021
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Polar Capital Emerging Market Stars Fund