Polar Capital Holdings PLC AuM Update (3134Z)

TIDMPOLR

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 GBP19.6bn compared to GBP19.2bn at the end of March 2023, an increase of 2% over the period. During the nine-month period the GBP400m increase in AuM resulted from a GBP2.1bn increase relating to market movement and fund performance offset by net redemptions of GBP1.7bn.

 
              AuM movement in nine months to 31 December 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(1,375)m   GBP(113)m    GBP(181)m    GBP(1,669)m 
                      ------------  -----------  -----------  ------------ 
 Fund closures(1)        GBP(7)m         -         GBP(43)m     GBP(50)m 
                      ------------  -----------  -----------  ------------ 
 Market movement        GBP1,336m     GBP705m       GBP18m      GBP2,059m 
  and performance 
                      ------------  -----------  -----------  ------------ 
 Total AuM at          GBP14,235m    GBP4,502m     GBP823m      GBP19,560 
  31 December 2023                                                  m 
                      ------------  -----------  -----------  ------------ 
 

(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      Year to       Nine months 
                                   to                             to 
  net of staff allocations      31 Dec 22      31 Mar 23      31 Dec 23* 
                                              (year-end) 
 Net performance fee profit        GBP1.9m        GBP1.7m        GBP9.6m* 
                             -------------  -------------  -------------- 
 

*The figures to December 2023 are enhanced by what is expected to be approximately GBP0.6m 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 GBP19.6bn compared to GBP19.1bn at the end of the previous quarter and GBP19.2bn at the end of March 2023, despite net outflows over the period.

"In the quarter we benefited from continued net inflows of GBP45m into the Emerging Markets and Asian Stars funds and GBP28m 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 GBP1.1bn 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 GBP1.7bn.

"In the quarter several clients continued to reduce their exposure to equities generally, directly impacting several Polar Capital funds including the Biotechnology Fund (GBP311m) and UK Value Fund (GBP238m) 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 GBP136m and GBP230m 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 GBP9.6m compared to GBP1.7m 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 
  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 
   John Welch 
   Sam Milford                           [phone] 
 
   Camarco 
   Ed Gascoigne-Pees 
   Jennifer Renwick 
   Phoebe Pugh                           [phone] 
 

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January 11, 2024 02:00 ET (07:00 GMT)