Polar Capital Holdings PLC AuM Update (6269L)

TIDMPOLR

RNS Number : 6269L

Polar Capital Holdings PLC

14 January 2021

14 January 2021

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 calendar year to 31 December 2020.

   Group AUM   (unaudited) 

Polar Capital reports that as at 31 December 2020 its AuM were GBP18.9bn compared to GBP12.2bn at the end of March 2020, an increase of 55% over the period. During the period, AuM increased by GBP6.7bn which comprised net subscriptions of GBP1,462m, inflows from the acquisition of the Phaeacian team of GBP431m, offset by outflows from a previously reported fund closure of GBP301m and an increase of GBP5,237m related to market movement and fund performance.

 
 AuM movement in nine              Long-only    Alternative     Total 
  months to 31 December               funds        funds 
  2020 
 AuM at 1 April 2020               GBP11,078m    GBP1,083m    GBP12,161m 
                                  -----------  ------------  ----------- 
 Net subscriptions/(redemptions)   GBP1,485m     GBP(23)m     GBP1,462m 
                                  -----------  ------------  ----------- 
 Acquisition of the Phaeacian       GBP431m          -         GBP431m 
  team 
                                  -----------  ------------  ----------- 
 Closure of UK Absolute                -         GBP(301)m    GBP(301)m 
  Equity Fund 
                                  -----------  ------------  ----------- 
 Market movement and performance   GBP5,034m      GBP203m     GBP5,237m 
                                  -----------  ------------  ----------- 
 Total AuM at 31 December          GBP18,028m     GBP962m     GBP18,990m 
  2020 
                                  -----------  ------------  ----------- 
 

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 19      31 Mar 20      31 Dec 20* 
                                              (year-end) 
 Net performance fee profit        GBP8.8m        GBP8.8m        GBP19.3m* 
                             -------------  -------------  --------------- 
 

*The figures to December 2020 are enhanced by what is expected to be circa GBP1.0m of net deferment.

Gavin Rochussen, Chief Executive, commented:

"AuM increased by 15% over the quarter to 31 December and by 55% from GBP12.2bn on 1 April 2020 to GBP18.9bn, an increase of GBP6.7bn which was made up of net inflows of GBP1.4bn, an increase of GBP431m due to the arrival of the Phaeacian team, a reduction due to a fund closure of GBP301m, and market movement and fund performance added GBP5.2bn.

"We are pleased to report another quarter of net inflows. Net inflows from 18 of our funds amounted to GBP556m in the quarter which brings total net inflows, from continuing funds, in the nine months of the current financial year to GBP1.4bn.

"While net inflows have been particularly strong into our Technology and Healthcare funds, we have also had net subscriptions in the quarter into the Global Insurance Fund of GBP234m, GBP100m into our Emerging Markets Stars Fund and GBP90m into our UK Value Opportunities Fund as risk appetite for UK companies increased.

"The pipeline for flows into our Emerging Markets Stars range of funds, which have sustainability at the core of their processes, is strong as the funds approach their three-year track records at Polar Capital.

"The International Value franchise within Phaeacian Partners announced in October, has made a good start within Polar outperforming benchmark over the calendar year by 8% and receiving early inflows into the US Mutual Fund.

"It is pleasing that following the successful restructuring of the Polar Capital Global Financials Trust last year, performance has been compelling, the Trust has been trading at a premium and issuing shares. This follows a marked improvement in investor appetite for equities in the Financials sector.

"Fund performance has been strong across the majority of our funds with 81% of our AuM performing ahead of benchmark over the calendar year and 83% of our AuM is ranked in the first quartile against peers over three years in the Lipper universe.

"Performance fee profits net of staff allocations amounted to GBP19.3m compared to GBP8.8m in the prior year. Given the strong performance across most of our funds, 15 funds earned performance fees and seven individual funds contributed the majority of the net performance fee profits.

"In December, we announced the acquisition of Dalton Strategic Partnership LLP which, once regulatory approval has been received, will contribute to our 'growth with diversification strategy' by adding, amongst a number of funds, a top performing European equities team as well as increased distribution capability into Continental Europe.

"We remain confident that with our diverse range of funds and focus on performance in our actively managed complementary funds we are positioned to continue to perform well for our clients and will continue to generate net inflows. The net inflow momentum of the last quarter has continued into the first two weeks of January."

For further information please contact:

 
 Polar Capital 
  Gavin Rochussen (Chief Executive) 
  John Mansell (Executive Director) 
  Samir Ayub (Finance Director)          [phone] 
 Numis Securities Limited - Nomad and 
  Joint Broker 
  Charles Farquhar 
  Stephen Westgate 
  Kevin Cruickshank (QE)                 [phone] 
  Peel Hunt LLP - Joint Broker 
   Andrew Buchanan 
   Rishi Shah                             [phone] 
  Camarco 
   Ed Gascoigne-Pees 
   Georgia Edmonds 
   Monique Perks                          [phone] 
 

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January 14, 2021 02:00 ET (07:00 GMT)