REG - Polar Capital Hldgs - AuM Update

Polar Capital HoldingsAnnouncement

13/10/2022 07:00

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RNS Number : 7235C  Polar Capital Holdings PLC  13 October 2022

13 October 2022
                Polar Capital Holdings plc

AuM Update

 

Polar Capital Holdings plc ("Polar Capital" or the "Group"), the specialist
active asset management group, today provides a quarterly update of its
unaudited statement of Assets under Management ("AuM").

 

 

Group AuM (unaudited)

 

Polar Capital reports that as at 30 September 2022 its AuM were £18.8bn
compared to £18.9bn at the end of the June quarter and £22.1bn at the end of
March 2022. During the six-month period, AuM decreased by net redemptions of
£0.8bn, outflows from previously reported fund closures of £0.5bn and a
£2.0bn decrease related to market movement and fund performance.

 

 AuM movement in six months to 30 September 2022
                      Open ended  Investment  Segregated mandates  Total

                      funds       Trusts
 AuM at 1 April 2022  £16,590m    £4,378m     £1,153m              £22,121m
 Net flows            £(753)m     £(62)m      £(30)m               £(845)m
 Fund closures(1)     £(380)m     -           £(79)m               £(459)m
 Market movement      £(1,374)m   £(611)m     £(66)m               £(2,051)m

 and performance
 Total AuM at         £14,083m    £3,705m     £978m                £18,766m

 30 September 2022

(1) (Return of funds to investors on closure of the Phaeacian mutual funds and
related segregated mandate in Q1.)

 

Net performance fees (unaudited)

 

The table below sets out the position relating to net performance fee profits
due to the Group (after the deduction of staff interests) as a product of
accrued performance fees in funds managed by the Group three months before the
strike point of such performance fee receipts. The majority of the Group's
performance fees crystallise in the second half of the financial year. There
is no certainty that the fees will be sustained over the next quarter, as
performance fees can be volatile.

 

 Performance fees                                                               Six months to  Year to      Six months to

 net of staff allocations                                                       30 Sept 21     31 Mar 22    30 Sept 22

                                                                                               (year-end)
 Received                                                                       -              £4.1m        -
 Accrued but not yet earned in funds with year ends on or before the financial  £2m            n/a          £4.8m*
 year end
 Total net performance fee profits                                              £2m            £4.1m        £4.8m*

*The figures have been reduced by £1.0m of net performance fee distributions
that relate to prior accounting periods that IFRS require to be deducted from
this year's receipts.

 

 

Gavin Rochussen, Chief Executive, commented:

 

"There has been continued demand and inflows into the Global Insurance,
Biotechnology, Healthcare Blue Chip, Smart Energy, European ex-UK Income,
Emerging Market Stars, Forager and Global Absolute Return Funds, with combined
net inflows of £260m across these funds in the quarter.

 

"A combination of the bear market sell-off, net outflows, fund closures and
fund performance meant that our AuM at the end of the six-month period were
£18.8bn compared to £18.9bn at the end of the previous quarter and £22.1bn
at the end of March 2022. Total net outflows for the quarter were £529m.

 

"During the quarter, the rate of outflows from the open-ended Technology funds
continued to decline, with £252m of outflows compared to £380m in the
previous quarter and £630m in the first quarter of this calendar year.
Outflows of £250m from the UK Value Opportunities Fund during the quarter
reflected client asset allocation decisions with UK equity exposure being
reduced.

 

"Despite the challenging back drop, we are pleased with the continuing
progress in diversifying the business. The Smart funds managed by the
Sustainable Thematic team have now collectively reached £150m. The Emerging
Market Stars team have had success in the US with the Emerging Market Stars
Mutual Fund raising its first £50m.

 

"The well-established Polar Capital Global Insurance fund has continued to
deliver robust performance with net inflows of £257m in the six months. The
team's low appetite for catastrophe risk has protected investor returns with
the Fund well positioned to benefit from ongoing premium rate rises in
commercial insurance and a recent acceleration in reinsurance pricing. For the
calendar year to September 2022, the fund has achieved absolute positive
performance of 12.2% which is 6.5% ahead of its benchmark.

 

"We remain confident that with our diverse range of differentiated, active
specialist fund strategies we are well-positioned to perform for our clients
and shareholders over the long term."

 

 

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

 Camarco                                             +44 (0)20 3757 4995

 Ed Gascoigne-Pees

 Jennifer Renwick

 Phoebe Pugh

 

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