Polar Capital Holdings PLC AUM Update (6759M)

TIDMPOLR

RNS Number : 6759M

Polar Capital Holdings PLC

10 January 2019

10 January 2019

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") and performance fees earned for the calendar year to 31 December 2018.

Group AUM (unaudited)

Polar Capital reports that as at 31 December 2018 its AUM were GBP12.7bn compared to GBP12.0bn at the end of March 2018.

 
 AUM movement in nine     Long-only    Alternative     Total 
  months to 31 December      funds        funds 
  2018 
 AUM at                   GBP10,812m    GBP1,168m    GBP11,980m 
  1 April 2018 
                         -----------  ------------  ----------- 
 Net subscriptions         GBP524m       GBP122m      GBP646m 
                         -----------  ------------  ----------- 
 Market movement            GBP12m       GBP19m        GBP31m 
  and performance 
                         -----------  ------------  ----------- 
 Total AUM at             GBP11,348m    GBP1,309m    GBP12,657m 
  31 December 2018 
                         -----------  ------------  ----------- 
 

Comment

The Group has not been immune to the market correction that followed the last quarterly update and has had a challenging period. Although flows for the year remain positive, the Group experienced net outflows of GBP286m in the quarter and net reduction in AUM in the quarter of GBP1,770m through market movement and performance.

Despite the market's volatility and weakness, the Group has been able to hold on to a significant amount of the performance fees accrued as at the end of September. At the calendar year end, net performance fee profits of GBP23.6m have been received, a record figure that surpasses the GBP15.0m reported a year ago.

The Group is pleased to announce the January launch of two new funds within its UCITS umbrella; an Asian Stars Fund run by Jorry Noddekaer and his team and a Global Absolute Return Fund managed by David Keetley and his team.

The Group is also delighted to announce that Sandy Black has joined as Chief Investment Officer. The role will entail protecting clients' interests via independent review of Polar's investment teams as well as contributing to Polar's growth through the identification and selection of new investment strategies. Sandy was most recently at J O Hambro Capital Management Limited where he was employed in a similar role as Investment Director.

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 17       31 Mar 18       31 Dec 18* 
                                                (year-end) 
 Net performance fee profit        GBP15.0m        GBP15.0m        GBP23.6m* 
                             --------------  --------------  --------------- 
 

*The figures to December 2018 are enhanced by what is expected to be circa GBP3m of amounts deferred as IFRS requires the cost of such amounts to be spread over the period of deferment. The amount of net deferral will be reflected in the Adjusted Earnings Per Share figure that will be reported at the financial year-end.

For further information please contact:

 
 Polar Capital 
  Gavin Rochussen (Chief Executive) 
  John Mansell (COO)                     [phone] 
 Numis Securities Limited - Nomad and 
  Joint Broker 
  Charles Farquhar 
  Stephen Westgate 
  Kevin Cruickshank (QE)                 [phone] 
  Peel Hunt LLP - Joint Broker 
   Guy Wiehahn                            [phone] 
  Camarco 
   Ed Gascoigne-Pees                      [phone] 
 

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January 10, 2019 02:00 ET (07:00 GMT)