Polar Capital Holdings PLC AuM Update (4290B)

TIDMPOLR

RNS Number : 4290B

Polar Capital Holdings PLC

08 October 2020

   8 October 2020                                  Polar Capital Holdings plc 

AuM Update

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

   Group AuM   (unaudited) 

Polar Capital reports that as at 30 September 2020 its AuM were GBP16.4bn compared to GBP12.2bn at the end of March 2020, an increase of 34% over the period. During the period, AuM increased by GBP4.2bn which comprised net subscriptions of GBP907m offset by outflows from a previously reported fund closure of GBP301m and an increase of GBP3,588m related to market movement and fund performance.

 
 AuM movement in six months          Long only    Alternative     Total 
  to 30 September 2020                  funds        funds 
 AUM at 1 April 2020                 GBP11,078m    GBP1,083m    GBP12,161m 
                                    -----------  ------------  ----------- 
 Net subscriptions / (redemptions)    GBP931m      GBP(24)m      GBP907m 
                                    -----------  ------------  ----------- 
 Closure of UK Absolute                  -         GBP(301)m    GBP(301)m 
  Equity Fund 
                                    -----------  ------------  ----------- 
 Market movement and                 GBP3,479m      GBP109m     GBP3,588m 
  performance 
                                    -----------  ------------  ----------- 
 Total AuM at 30 September           GBP15,488m     GBP867m     GBP16,355m 
  2020 
                                    -----------  ------------  ----------- 
 

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.

 
 Performance fees               Six months      Year to      Six months to 
                                    to 
  net of staff allocations      30 Sept 19      31 Mar 20      30 Sept 20 
                                               (year-end) 
 Received                           GBP3.3m        GBP8.8m         GBP0.5m 
                              -------------  -------------  --------------- 
 Accrued but not yet earned         GBP0.9m          n/a          GBP13.7m* 
  in funds with year ends 
  on or before the financial 
  year end 
                              -------------  -------------  --------------- 
 Total net performance              GBP4.2m        GBP8.8m        GBP14.2m* 
  fee profits 
                              -------------  -------------  --------------- 
 

*t he figures are reduced by GBP0.3m of net performance fee distributions that relate to prior accounting periods that IFRS require to be deducted from this year's receipts.

As is usual at the time of releasing this update, three months before the crystallisation of performance fees, we disclose the profits that could be due to Polar as a function of the amount of accrued performance fees in our funds as at the end of September. There is no certainty that the fees will be sustained over the next quarter, as performance fee receipts are extremely volatile.

Gavin Rochussen, Chief Executive, commented:

"It is pleasing to report another quarter of inflows with GBP419m of net subscriptions across our fund range in the last three months and 70% of our AuM outperforming benchmark in the current calendar year.

A combination of net inflows, market uplift and outperformance enabled our AuM to increase by 34% over the six-month period to GBP16.4bn from GBP12.2bn.

We continue to function resiliently across the firm under remote working conditions.

We remain confident that with our highly 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) 
  John Mansell (Executive Director)             [phone] 
  Samir Ayub (Finance Director)                  2700 
  Numis Securities Limited - Nomad and Joint 
   Broker 
   Charles Farquhar 
   Stephen Westgate                              [phone] 
   Kevin Cruickshank (QE)                         1000 
 
   Peel Hunt LLP - Joint Broker 
   Andrew Buchanan                               [phone] 
   Rishi Shah                                     8680 
  Camarco 
   Ed Gascoigne-Pees 
   Georgia Edmonds                                [phone] 
   Monique Perks                                  4995 
 

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October 08, 2020 02:00 ET (06:00 GMT)