Polar Capital more pleased with asset performance in March quarter

13th Apr 2023 13:52

(Sharecast News) - Specialist active asset manager Polar Capital said in an assets under management (AuM) update on Thursday that the group total was £19.2bn as at 31 March, making for a 4% increase from the prior quarter.

The AIM-traded firm did note, however, that AuM had decreased 13% from £22.1bn at the end of March last year.

It said the financial year saw a decrease in AuM due to net redemptions of £1.5bn, outflows from fund closures of £0.5bn, and a £0.9bn decrease related to market movement and fund performance.

The open-ended funds category had the largest decrease, with a net redemption of £1.4bn, fund closures of £390m, and a decrease of £522m due to market movement and performance.

Investment trusts saw a net redemption of £127m and a decrease of £341m due to market movement and performance.

Segregated mandates also saw a net redemption of £35m and a decrease of £10m due to market movement and performance.

On 1 April last year, Polar Capital's assets under management totalled £22.12bn, broken down into open-ended funds at £16.59bn, investment trusts at £4.38bn, and segregated mandates at £1.15bn.

As at 31 March, its AuM was £19.22bn, with open-ended funds at £14.28bn, investment trusts at £3.91bn, and segregated mandates at £1.03bn.

"There has been continued demand and inflows into the European Income ex-UK, Biotechnology, Global Convertible, Global Absolute Return, Smart Energy and Emerging Market Stars funds, with combined net inflows of £320m across these funds in the quarter," said chief executive officer Gavin Rochussen.

"Notwithstanding turbulence in the banking sector in March and the resultant impact to equity valuations, total assets under management in the quarter increased by £749m, from £18.47bn to £19.22bn, a 4% increase.

"Net outflows in the quarter were £410m and were driven by outflows of £373m from our Global Insurance fund following a year of exceptional outperformance in relative and absolute terms with clients reducing their holdings to take profits."

Rochussen said that during the quarter, the rate of outflows from the open-ended Technology funds continued to decline, with £40m of outflows in March and £199m of net outflows in the quarter, compared to £217m in the prior quarter, and £380m in the first quarter of the financial year.

That, the CEO said, followed "exceptional outperformance" and net inflows in 2020, and the first half of 2021.

"Stubbornly high inflation, rising interest rates and slowing economic growth added to the list of concerns weighing on market sentiment during the financial year to March.

"A combination of net outflows, fund closures and market performance meant that our assets under management at the end of the 12-month period were £19.2bn compared to £22.1bn at the end of March 2022.

"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."

Polar Capital said it would announce its results for the financial year ended 31 March on 26 June.

At 1333 BST, shares in Polar Capital Holdings were up 2.93% at 474.5p.

Reporting by Josh White for Sharecast.com.