Polar Capital Holdings PLC AUM Update (3945M)

TIDMPOLR

RNS Number : 3945M

Polar Capital Holdings PLC

13 October 2016

   13 October 2016                                Polar Capital Holdings plc 

AUM Update

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

Group AUM (unaudited)

Polar Capital reports that as at 30 September 2016 its AUM were GBP7.7bn compared to GBP7.3bn at the end of March 2016.

 
 AUM movement                         USD                                   GBP 
  in 
  six months 
  to 
  30 September 
  2016 
-------------------  ------------------------------------  ------------------------------------ 
                        Long      Alternative     Total       Long      Alternative     Total 
                         only        funds                     only        funds 
                        Funds                                 funds 
-------------------  ----------  ------------  ----------  ----------  ------------  ---------- 
 AUM at 
  31 March 
  2016                 $9,378m      $1,054m     $10,432m    GBP6,531m     GBP734m     GBP7,265m 
-------------------  ----------  ------------  ----------  ----------  ------------  ---------- 
 Net subscriptions 
  / (redemptions)     $(1,121)m      $60m       $(1,061)m   GBP(816)m     GBP44m      GBP(772)m 
-------------------  ----------  ------------  ----------  ----------  ------------  ---------- 
 Market movement 
  and performance       $581m       $(14)m        $567m     GBP1,098m     GBP70m      GBP1,168m 
-------------------  ----------  ------------  ----------  ----------  ------------  ---------- 
 Total AUM 
  at 
  30 September 
  2016                 $8,838m      $1,100m      $9,938m    GBP6,813m     GBP848m     GBP7,661m 
-------------------  ----------  ------------  ----------  ----------  ------------  ---------- 
 

Comment

Whilst it is pleasing to see our AUM, in sterling terms, higher than at the year end, this has been almost entirely due to the weakness in sterling since the Brexit vote and the healthy rise in global markets over the last few months. We have continued to experience net fund outflows over the period, predominantly from our Japan UCITS fund, although we also experienced outflows in a number of other funds particularly in July in the immediate aftermath of the Brexit vote.

Our Japan funds have now fallen to 14% of AUM although we would anticipate further outflows if the team's approach continues to remain out of favour. Despite the disappointing performance over the last five years the fund remains top decile in its peer group since launch and we believe those investors who can take the longer term view will be rewarded over time from current levels.

Over our first six months for this financial year the overall backdrop for flows into equity funds has remained poor in both the UK and Continental Europe. Industry data indicates that outflows from long only equity funds in July were in excess of those experienced at the height of the 2008 financial crisis. Despite this unhelpful background, we have been encouraged by increased interest in a number of our UCITS strategies including Technology, Healthcare, Insurance, UK Absolute, Global Convertible Bond and European ex-UK Income.

It is encouraging to note that at the end of September nine of our funds were in performance fee territory.

Net performance fees (unaudited)

The table below sets out the position relating to net performance fees (after the deduction of staff interests) earned and accrued in the first six months of the Group's financial year. The majority of the Group's performance fees crystallise in the second half of the financial year.

 
 Performance fees             Six months       Year to      Six months 
                                  to                             to 
  net of staff allocations      30 Sept       31 Mar 16      30 Sept 16 
                                   15 
                                              (year-end) 
--------------------------  -------------  -------------  -------------- 
  Received                        GBP0.0m        GBP3.0m        GBP0.0m 
--------------------------  -------------  -------------  -------------- 
 Accrued but not yet              GBP3.9m          n/a          GBP2.8m 
  earned in funds with 
  year ends on or before 
  the financial year 
  end 
--------------------------  -------------  -------------  -------------- 
 Total net performance            GBP3.9m        GBP3.0m         GBP2.8m 
  fees 
--------------------------  -------------  -------------  -------------- 
 

For further information please contact:

 
 Polar Capital 
  Tim Woolley (CEO) 
  John Mansell (COO)              [phone] 
 Canaccord Genuity - Nomad and 
  Joint Broker 
  Simon Bridges (QE) 
  Andrew Buchanan 
  Kit Stephenson                  [phone] 
 Peel Hunt - Joint Broker 
  Guy Wiehahn                     [phone] 
 Camarco 
  Ed Gascoigne-Pees               [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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October 13, 2016 02:00 ET (06:00 GMT)