Polar Capital reports small decline in assets under management

Specialist active asset manager Polar Capital reported a minor decline in assets under management (AuM) in its first half on Thursday.

The AIM-traded firm recorded a total AuM of £19.1bn as of 30 September, reflecting a diminutive dip from £19.2bn noted at the close of March.

It experienced net redemptions of £0.6bn in the period and outflows from fund closures amounting to £50m.

The decrease was partially offset by a £0.5bn increase attributed to positive market movements and robust fund performance.

“There has been continued demand and inflows into the Artificial Intelligence, Japan Value, Emerging Market Stars, Asia Stars and Smart Energy Funds, with combined net inflows of £225m across these funds in the quarter,” said chief executive officer Gavin Rochussen.

“During the quarter, the rate of outflows from the open-ended Technology funds continued to decline, with £74m of net outflows compared to £103m in the previous quarter and £199m in the first quarter of this calendar year.

“Despite the challenging backdrop, we are pleased with the continuing progress in diversifying the business.”

Rochussen said the Smart funds managed by the sustainable thematic team had collectively reached AuM of £280m, while the Emerging Market and Asia Stars team now collectively managed £1.5bn of AuM and continued progress in the US, with US-domiciled vehicles now surpassing £125m.

“Later this month, the Global Insurance Fund celebrates its 25-year anniversary.

“Since launch it has delivered strong and consistent annualised returns to shareholders of circa 10% per annum, by investing for the long-term in a concentrated portfolio of best-in-class non-life insurers.”

Insurance sector performance was typically counter-cyclical, Gavin Rochussen explained, offering investors genuine diversification with unique drivers.

“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.”

At 1254 BST, shares in Polar Capital Holdings were down 2.86% at 424p.

Reporting by Josh White for Sharecast.com.