Polar Capital Holdings PLC AuM Update (0264W)

TIDMPOLR

RNS Number : 0264W

Polar Capital Holdings PLC

13 April 2023

13 April 2023

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 2023.

   Group AUM   (unaudited) 

Polar Capital reports that as at 31 March 2023 its AuM were GBP19.2bn compared to GBP18.5bn in the previous quarter, an increase of 4% over the quarter, and GBP22.1bn at the end of March 2022, a decrease of 13% over the financial year. During the financial year, AuM decreased by net redemptions of GBP1.5bn, outflows from fund closures of GBP0.5bn and a GBP0.9bn decrease related to market movement and fund performance.

 
                    AuM movement in twelve months to 31 March 2023 
                                   Open ended    Investment   Segregated      Total 
                                      funds        Trusts      mandates 
                                  ------------  -----------  -----------  ------------ 
 AuM at 1 April 2022               GBP16,590m    GBP4,378m    GBP1,153m    GBP22,121m 
                                  ------------  -----------  -----------  ------------ 
 Net subscriptions/(redemptions)   GBP(1,397)m   GBP(127)m     GBP(35)m    GBP(1,559)m 
                                  ------------  -----------  -----------  ------------ 
 Fund closures(1)                   GBP(390)m        -         GBP(79)m     GBP(469)m 
                                  ------------  -----------  -----------  ------------ 
 Market movement                    GBP(522)m    GBP(341)m     GBP(10)m     GBP(873)m 
  and performance 
                                  ------------  -----------  -----------  ------------ 
 Total AuM at 31 March             GBP14,281m    GBP3,910m    GBP1,029m    GBP19,220m 
  2023 
                                  ------------  -----------  -----------  ------------ 
 

(1) (Return of funds to investors on closure of the Phaeacian mutual funds and related segregated mandate in Q1 and China Mercury and Melchior Global Equity funds in Q3.)

Gavin Rochussen, Chief Executive, commented:

" There has been continued demand and inflows into the European Income ex-UK, Biotechnology, Global Convertible, Global Absolute Return, Smart Energy and Emerging Market Stars funds, with combined net inflows of GBP320m across these funds in the quarter.

"Notwithstanding turbulence in the banking sector in March and the resultant impact to equity valuations, total AuM in the quarter increased by GBP749m from GBP18,471m to GBP19,220m, a 4% increase.

"Net outflows in the quarter were GBP410m and were driven by outflows of GBP373m from our Global Insurance fund following a year of exceptional outperformance in relative and absolute terms with clients reducing their holdings to take profits.

"During the quarter, the rate of outflows from the open-ended Technology funds continued to decline, with GBP40m of outflows in March and GBP199m of net outflows in the quarter compared to GBP217m in the previous quarter and GBP380m in the first quarter of this financial year. This follows exceptional outperformance and net inflows in 2020 and the first half of 2021.

"Stubbornly high inflation, rising interest rates and slowing economic growth added to the list of concerns weighing on market sentiment during the financial year to March 2023. A combination of net outflows, fund closures and market performance meant that our AuM at the end of the twelve-month period were GBP19.2bn compared to GBP22.1bn at the end of March 2022.

"It was pleasing to see that Polar Capital scored well in the annual Broadridge Fund Brand 50 survey of investment professionals. Within the UK, we were the 7(th) highest rank brand, up from 8(th) the prior year, the smallest group in the top ten based on AuM 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 retain its number one ranking for Thematic Equity in the UK and scoring 2(nd) for client-oriented thinking (Source: Broadridge Fund Brand 50 2023).

" 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 ."

Polar Capital aims to announce its results for the financial year to 31 March 2023 on 26 June 2023.

For further information please contact:

 
 Polar Capital 
  Gavin Rochussen (Chief Executive) 
  Samir Ayub (Finance Director)        [phone] 
 Numis Securities Limited - Nomad 
  and Joint Broker 
  Giles Rolls 
  Charles Farquhar 
  Stephen Westgate                     [phone] 
 
   Peel Hunt LLP - Joint Broker 
   Andrew Buchanan                       [phone] 
 
   Camarco 
   Ed Gascoigne-Pees 
   Jennifer Renwick 
   Phoebe Pugh                           [phone] 
 

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April 13, 2023 02:00 ET (06:00 GMT)