Polar Capital Holdings PLC AuM Update (8517P)

TIDMPOLR

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 GBP19.1bn compared to GBP19.2bn at the end of March 2023. During the six-month period, AuM decreased by net redemptions of GBP0.6bn, outflows from fund closures of GBP50m offset by a GBP0.5bn increase related to market movement and fund performance.

 
             AuM movement in six months to 30 September 2023 
                       Open ended   Investment   Segregated     Total 
                          funds       Trusts      mandates 
                      -----------  -----------  -----------  ----------- 
 AuM at 1 April 2023   GBP14,281m   GBP3,910m    GBP1,029m    GBP19,220m 
                      -----------  -----------  -----------  ----------- 
 Net flows             GBP(475)m     GBP(78)m     GBP(28)m    GBP(581)m 
                      -----------  -----------  -----------  ----------- 
 Fund closures(1)       GBP(7)m         -         GBP(43)m     GBP(50)m 
                      -----------  -----------  -----------  ----------- 
 Market movement        GBP306m      GBP271m      GBP(31)m     GBP546m 
  and performance 
                      -----------  -----------  -----------  ----------- 
 Total AuM at          GBP14,105m   GBP4,103m     GBP927m     GBP19,135m 
  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      Year to     Six months 
                                           to                          to 
  net of staff allocations             30 Sept 22    31 Mar 23     30 Sept 23 
                                                     (year-end) 
 Received                                  -          GBP1.7m          - 
                                     ------------  ------------  ------------ 
 Accrued but not yet earned in          GBP4.8m         n/a        GBP1.3m* 
  funds with year ends on or before 
  the financial year end 
                                     ------------  ------------  ------------ 
 Total net performance fee profits      GBP4.8m       GBP1.7m      GBP1.3m* 
                                     ------------  ------------  ------------ 
 

*The figures have been reduced by GBP0.8m 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 GBP225m 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 GBP19.1bn compared to GBP19.7bn at the end of the previous quarter and GBP19.2bn at the end of March 2023. Total net outflows for the quarter were GBP423m.

"During the quarter, the rate of outflows from the open-ended Technology funds continued to decline, with GBP74m of net outflows compared to GBP103m in the previous quarter and GBP199m 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 GBP280m. The Emerging Market and Asia Stars team now collectively manages GBP1.5bn of AuM and continues its progress in the US with US domiciled vehicles now surpassing GBP125m.

"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 
  Gavin Rochussen (Chief Executive)              [phone] 
  Samir Ayub (Finance Director)                   2700 
 
   Numis Securities Limited - Nomad and Joint 
   Broker 
   Giles Rolls 
   Charles Farquhar                                [phone] 
   Stephen Westgate                                1000 
 
   Peel Hunt LLP - Joint Broker 
   Andrew Buchanan 
   John Welch                                      [phone] 
   Sam Milford                                     8680 
 
   Camarco 
   Ed Gascoigne-Pees 
   Jennifer Renwick                                [phone] 
   Phoebe Pugh                                     4995 
 

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October 12, 2023 02:00 ET (06:00 GMT)