Performance of Polar Capital’s assets hurt by market turmoil

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Specialized asset manager polar capital said assets under management of £18.8 billion as of September 30 in a Thursday update.

The AIM-listed company said this was down from £18.9bn at the end of June and £22.1bn at the end of March.

He said that over the six-month period assets under management decreased by net redemptions of £0.8bn, outflows of £0.5bn from previously closed funds reported and a £2 billion decrease related to market movements and fund performance.

Regarding performance fees, Polar Capital reported total net performance fee earnings as of September 30 of £4.8 million, compared to £2 million in the same period last year.

“There was continued demand and inflows into the Global Insurance, Biotechnology, Healthcare Blue Chip, Smart Energy, European ex-UK Income, Emerging Market Stars, Forager and Global Absolute Return funds, with combined net inflows of 260 million pounds in these funds in the quarter,” chief executive Gavin Rochussen said.

“A combination of bear market selling, net outflows, fund closures and fund performance meant that our assets under management at the end of the six-month period were £18.8bn, compared to £18.9 billion at the end of the previous period. quarter and £22.1 billion at the end of March.

“Total net outflow for the quarter was £529 million.”

Rochussen said that during the quarter the rate of outflows from open-end technology funds continued to decline, with outflows of £252m compared to £380m in the prior quarter and £630m in the first. quarter of that calendar year.

He added that outflows of £250m from the UK Value Opportunities fund during the quarter reflected client asset allocation decisions as exposure to UK equities was reduced.

“Despite the difficult context, we are satisfied with the continued progress in the diversification of the business.

“The smart funds managed by the Sustainable Thematic team have now collectively reached £150m.

“The Emerging Market Stars team has had success in the US with the Emerging Market Stars Mutual Fund raising its first £50m.”

Gavin Rochussen said well-established fund Polar Capital Global Insurance continued to deliver “solid performance”, with net inflows of £257m over the six months.

“The team’s low appetite for catastrophe risk has protected investors’ returns, with the fund well positioned to benefit from continued premium rate increases in commercial insurance and a recent acceleration in the pricing of commercial insurance. reinsurance.

“For the calendar year to September, the fund had an absolute positive performance of 12.2%, 6.5% ahead of its benchmark.

“We remain confident that with our diverse range of active and differentiated specialty fund strategies, we are well positioned to perform for our clients and shareholders over the long term.”

At 1253 BST, Polar Capital Holdings shares were flat at 404p.

Reporting by Josh White on Sharecast.com.

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