REG - Polar Capital Hldgs - AuM Update

Polar Capital HoldingsAnnouncement

11/01/2024 07:00

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RNS Number : 3134Z  Polar Capital Holdings PLC  11 January 2024

11 January 2024
                                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 its Assets under Management ("AUM") and performance
fees earned for the financial year to 31 March 2024.

 

Group AUM (unaudited)

 

Polar Capital reports that as at 31 December 2023, AuM were £19.6bn compared
to £19.2bn at the end of March 2023, an increase of 2% over the period.
During the nine-month period the £400m increase in AuM resulted from a
£2.1bn increase relating to market movement and fund performance offset by
net redemptions of £1.7bn.

 

 AuM movement in nine months to 31 December 2023
                      Open ended  Investment  Segregated mandates  Total

                      funds       Trusts
 AuM at 1 April 2023  £14,281m    £3,910m     £1,029m              £19,220m
 Net flows            £(1,375)m   £(113)m     £(181)m              £(1,669)m
 Fund closures(1)     £(7)m       -           £(43)m               £(50)m
 Market movement      £1,336m     £705m       £18m                 £2,059m

 and performance
 Total AuM at         £14,235m    £4,502m     £823m                £19,560m

 31 December 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
(after the deduction of staff interests) earned in the first nine months of
the Group's financial year.

 

 Performance fee profit      Nine months to  Year to      Nine months to

 net of staff allocations    31 Dec 22       31 Mar 23    31 Dec 23*

                                             (year-end)
 Net performance fee profit  £1.9m           £1.7m        £9.6m*

 

*The figures to December 2023 are enhanced by what is expected to be
approximately £0.6m of net deferment adjustments.

 

Gavin Rochussen, Chief Executive, commented:

 

"A strong rally in all major indices in the final calendar quarter of 2023,
meant that our AuM at the end of the nine-month period were £19.6bn compared
to £19.1bn at the end of the previous quarter and £19.2bn at the end of
March 2023, despite net outflows over the period.

 

"In the quarter we benefited from continued net inflows of £45m into the
Emerging Markets and Asian Stars funds and £28m into the Smart Energy Fund.

 

"Despite global equity markets rallying in the final quarter, the 'risk-off'
stance by investors resulted in net outflows in the quarter of £1.1bn as
clients reduced their weighting to active equities, taking profits in many
cases following a strong period of performance. Net outflows for the nine
months amounted to £1.7bn.

 

"In the quarter several clients continued to reduce their exposure to equities
generally, directly impacting several Polar Capital funds including the
Biotechnology Fund (£311m) and UK Value Fund (£238m) despite impressive
absolute fund performance and strong performance relative to benchmark.
Investors also continued to reduce weightings in our Technology funds and the
European Opportunities Fund with net outflows of £136m and £230m in these
strategies respectively. Overall, redemptions were concentrated in terms of
number of clients, as opposed to representative of a wider trend.

 

"With peak interest rates in sight and declining inflation rates, investors
will, we believe, begin to seek additional exposure to equities. We have a
strong pipeline of client interest and have capacity to meet investor demand
for our specialist active fund strategies. At the end of the quarter, we
launched a Financial Credit Fund, managed by our Financials team, to further
add to our offering.

 

"Performance fee profits, net of staff allocations, amounted to £9.6m
compared to £1.7m in the prior year. While four funds earned a performance
fee, most of the amount related to one fund.

 

"Long term performance remains strong with 81% of AuM outperforming respective
benchmarks since inception.

 

"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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