REG - Polar Capital Hldgs - AuM Update

Polar Capital HoldingsAnnouncement

12/10/2023 07:00

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RNS Number : 8517P  Polar Capital Holdings PLC  12 October 2023

12 October 2023
 

  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 2023 its AuM were £19.1bn
compared to £19.2bn at the end of March 2023. During the six-month period,
AuM decreased by net redemptions of £0.6bn, outflows from fund closures of
£50m offset by a £0.5bn increase related to market movement and fund
performance.

 

 AuM movement in six months to 30 September 2023
                      Open ended  Investment  Segregated mandates  Total

                      funds       Trusts
 AuM at 1 April 2023  £14,281m    £3,910m     £1,029m              £19,220m
 Net flows            £(475)m     £(78)m      £(28)m               £(581)m
 Fund closures(1)     £(7)m       -           £(43)m               £(50)m
 Market movement      £306m       £271m       £(31)m               £546m

 and performance
 Total AuM at         £14,105m    £4,103m     £927m                £19,135m

 30 September 2023

(1) Return of funds to investors on closure of the Melchior European Absolute
Return fund (Q1) and related segregated mandate (Q2).

 

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 22     31 Mar 23    30 Sept 23

                                                                                               (year-end)
 Received                                                                       -              £1.7m        -
 Accrued but not yet earned in funds with year ends on or before the financial  £4.8m          n/a          £1.3m*
 year end
 Total net performance fee profits                                              £4.8m          £1.7m        £1.3m*

*The figures have been reduced by £0.8m 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 Artificial Intelligence,
Japan Value, Emerging Market Stars, Asia Stars and Smart Energy Funds, with
combined net inflows of £225m across these funds in the quarter.

 

"A combination of the continued challenging environment for equity markets,
net outflows, fund closures and fund performance meant that our AuM at the end
of the six-month period were £19.1bn compared to £19.7bn at the end of the
previous quarter and £19.2bn at the end of March 2023. Total net outflows for
the quarter were £423m.

 

"During the quarter, the rate of outflows from the open-ended Technology funds
continued to decline, with £74m of net outflows compared to £103m in the
previous quarter and £199m in the first quarter of this calendar year.

 

"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 AuM of £280m. The
Emerging Market and Asia Stars team now collectively manages £1.5bn of AuM
and continues its progress in the US with US domiciled vehicles now surpassing
£125m.

 

"Later this month the Global Insurance Fund celebrates its 25-year
anniversary. Since launch it has delivered strong and consistent annualised
returns to shareholders of circa 10% pa, by investing for the long-term in a
concentrated portfolio of best-in-class non-life insurers. Insurance sector
performance is typically counter-cyclical, offering investors genuine
diversification with unique drivers and we look forward to continuing to
generate steady returns for our investors for many years to come.

 

"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

 John Welch

 Sam Milford

 Camarco                                             +44 (0)20 3757 4995

 Ed Gascoigne-Pees

 Jennifer Renwick

 Phoebe Pugh

 

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