REG - Polar Capital Hldgs - AuM Update

Polar Capital HoldingsAnnouncement

14/04/2022 07:16

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RNS Number : 3267I  Polar Capital Holdings PLC  14 April 2022

14 April 2022
 
                Polar Capital Holdings plc

AuM Update

 

 

Polar Capital Holdings plc ("Polar Capital" or the "Group"), the specialist
active asset management group, today provides its regular quarterly update of
its unaudited statement of Assets under Management ("AUM") for the financial
year to 31 March 2022.

 

Group AUM (unaudited)

 

Polar Capital reports that as at 31 March 2022 its AuM were £22.1bn compared
to £20.9bn at the end of March 2021, an increase of 6% over the period.
During the period, AuM increased by £1.2bn which comprised net inflows of
£0.4bn, and an increase of £0.8bn relating to market movement and fund
performance.

 

 AuM movement in twelve months to 31 March 2022
                                  Open ended  Investment Trusts  Segregated mandates  Total

                                  funds
 AuM at 1 April 2021              £16,579m    £3,867m            £417m                £20,863m
 Net subscriptions/(redemptions)  £(544)m     £190m              £745m                £391m
 Market movement                  £555m       £321m              £(9)m                £867m

 and performance
 Total AuM at 31 March 2022       £16,590m    £4,378m            £1,153m              £22,121m

 

 

Gavin Rochussen, Chief Executive, commented:

 

"A combination of net inflows, market uplift and outperformance enabled our
AuM to increase by 6% over the financial year from £20.9bn to £22.1bn.

 

"Despite the market backdrop, net flows over the financial year have been
resilient with notable success in the net funding of segregated mandates
amounting to £745m, taking total segregated AuM to £1.2bn, which now
represents around 5% of total AuM at 31 March 2022.

 

"Our diversification strategy is yielding results with net inflows in the
quarter of £230m into our sustainable Emerging Markets Stars and sustainable
Smart Energy and Smart Mobility strategies. This includes an early success in
the funding of a segregated mandate for the sustainable Smart Energy strategy.

 

"Over the year there has been strong progress in increasing the exposure Polar
has in strategies other than its core Technology funds. The rotation away from
high-growth stocks and pandemic winners has seen net outflows of £1.3bn from
the Technology funds, though these have been more than offset by net inflows
of £873m into the Polar Capital Sustainable Emerging Market Stars strategy,
£561m into the Healthcare strategy, £143m into the Convertible funds, £85m
into the European Opportunities fund and £120m into the recently launched
sustainable Smart Energy and Smart Mobility strategy. A healthy proportion of
these inflows has been from regions and clients who are new to our business, a
further success of our diversification strategy.

 

"With the onset of inflation and more hawkish central bank policy globally,
rate rise expectations have caused higher growth equities to de-rate. This
impacted our larger sector-focused strategies such as Technology and
Healthcare in the short term. Shorter term fund performance across our fund
range has consequently been challenging with 43% of our funds outperforming
benchmark over the calendar year to 31 March 2022.

 

"Longer term performance remains strong with 84% of AuM in our UCITS fund
range ranked in the top two quartiles against peers in the Lipper universe
over three years.

 

"Tightening rates and the invasion of Ukraine led to investors reducing
weightings to riskier growth asset classes during the last three months. In
the quarter, Polar had net outflows of £411m of which £630m were from our
Technology funds. This was offset by net inflows of £170m into our
sustainable Emerging Market Stars funds, £70m into the Insurance fund, £86m
of share issuance by the Polar Capital Financials Trust and £60m net inflows
into the recently launched sustainable Smart Energy and Smart Mobility funds.

 

"We recently announced that the Board of the two US mutual funds, Phaeacian
Accent International Value Fund and the Phaeacian Global Value Fund, decided
to close the funds with effect from 26 May 2022. The closure of the funds is
immaterial to the core profitability of the Group and we continue to develop
our U.S. footprint.

 

"The pipeline for flows remains strong for both our Emerging Markets Stars
range of funds, which have sustainability at the core of their processes, as
well as for the two recently launched Article 9 funds, Polar Capital Smart
Energy Fund, and the Polar Capital Smart Mobility Fund, which form part of
Polar Capital's sustainable investment strategies.

 

"It was also pleasing to see that Polar Capital scored well in the annual
Broadridge survey of investment professionals. Within the UK, we were the
8(th) highest rank brand, the smallest group in the top ten and in the company
of many much larger peers. Our approach has always been to deliver a
specialist investment offering with a premium service to our clients and
therefore, it was also pleasing to see Polar ranked number 1 for Thematic
Equity in the UK and scoring top-ten positions for both client communication
and client-oriented thinking.

 

"We remain confident that, with our diverse range of complementary funds and
focus on performance in our actively managed strategies, we are positioned to
continue to perform well for our clients and will continue to generate net
inflows."

 

Polar Capital aims to announce its results for the financial year to 31 March
2022 on 27 June 2022.

 

 

For further information please contact:

 

 Polar Capital                                      +44 (0)20 7227 2700

 Gavin Rochussen (Chief Executive)

 Samir Ayub (Finance Director)

 Numis Securities Limited - Nomad and Joint Broker  +44 (0)20 7260 1000

 Giles Rolls

 Charles Farquhar

 Stephen Westgate

 Peel Hunt LLP - Joint Broker                       +44 (0)20 3597 8680

 Andrew Buchanan

 Rishi Shah

 Camarco                                            +44 (0)20 3757 4995

 Ed Gascoigne-Pees

 Jennifer Renwick

 Monique Perks

 Phoebe Pugh

 

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