Polar Capital European ex-UK Income Class I - Accumulation (GBP)

Davis has performed well over the course of his career, covering his time at Colombia Threadneedle and Polar Capital, and has delivered returns ahead of the index and the IA Europe ex UK peer group average.

Davis has managed the fund since it launched in June 2015, and we'd expect the fund to lag a rising market but to hold up better when markets are falling. We think the fund compares favourably against value and income focused peers.

Over the long run, the fund has paid an attractive income to investors, above the one produced by the market, though income is not guaranteed, and yields aren't a reliable indicator of future income. Please note the fund's charges can be taken from capital rather than income. This increases the yield but reduces the potential for capital growth.

The fund aims to generate an income at least 10% higher than the MSCI Europe ex UK index, alongside some capital growth over the long term. Davis scours the continent for companies he thinks are undervalued but have the potential to bounce back. This investment style is known as value investing.

They apply a number of screens a to narrow the universe down to companies they'll consider worth analysing further. This helps them to eliminate companies from consideration that they think are cheap for good reason. Davis avoids those he thinks aren't capable of consistently achieving at least a 10% annual total shareholder return (TSR) on equity over the medium term.

Given the fund's income focus, Davis naturally wants to invest in companies yielding at least 2.5% with the potential to be able to grow their dividends. He wants the fund to be less volatile than other European funds so considers how cash generative a business is, and how resilient this means they could be in a market downturn.

Davis breaks the portfolio down into three main buckets - Growth & Income, Balanced and High Yielders. The fund is generally equally split across these buckets and is made up of between 25-50 companies. The amount invested in each company ultimately depends on the team's conviction.

There's a focus on balance sheet strength and the competitive landscape too. Davis makes use of Porters Five Forces - gaining an understanding of the competition in the industry, the threat of new entrants and substitutes and the power of both suppliers and customers - as a way of analysing a company's weaknesses and strengths.

The fund can be quite concentrated, which means each investment could have a big impact on performance, which increases risk. The managers also have the flexibility to use derivatives which can magnify any gains or losses and increases risk.