AUM Update

RNS Number : 6759M

Polar Capital Holdings PLC

10 January 2019

 

10 January 2019                               

Polar Capital Holdings plc

AUM Update

Polar Capital Holdings plc ("Polar Capital" or the "Group"), the specialist 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 2018.

Group AUM (unaudited)

Polar Capital reports that as at 31 December 2018 its AUM were £12.7bn compared to £12.0bn at the end of March 2018.

AUM movement in nine months to 31 December 2018	Long-only funds	Alternative funds	Total
AUM at 1 April 2018	£10,812m	£1,168m	£11,980m
Net subscriptions	£524m	£122m	£646m
Market movement and performance	£12m	£19m	£31m
Total AUM at 31 December 2018	£11,348m	£1,309m	£12,657m

Comment

The Group has not been immune to the market correction that followed the last quarterly update and has had a challenging period. Although flows for the year remain positive, the Group experienced net outflows of £286m in the quarter and net reduction in AUM in the quarter of £1,770m through market movement and performance.

Despite the market's volatility and weakness, the Group has been able to hold on to a significant amount of the performance fees accrued as at the end of September. At the calendar year end, net performance fee profits of £23.6m have been received, a record figure that surpasses the £15.0m reported a year ago.

The Group is pleased to announce the January launch of two new funds within its UCITS umbrella; an Asian Stars Fund run by Jorry Noddekaer and his team and a Global Absolute Return Fund managed by David Keetley and his team.

The Group is also delighted to announce that Sandy Black has joined as Chief Investment Officer. The role will entail protecting clients' interests via independent review of Polar's investment teams as well as contributing to Polar's growth through the identification and selection of new investment strategies. Sandy was most recently at J O Hambro Capital Management Limited where he was employed in a similar role as Investment Director.

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 net of staff allocations	Nine months to 31 Dec 17	Year to 31 Mar 18 (year-end)	Nine months to 31 Dec 18*
Net performance fee profit	£15.0m	£15.0m	£23.6m*

*The figures to December 2018 are enhanced by what is expected to be circa £3m of amounts deferred as IFRS requires the cost of such amounts to be spread over the period of deferment. The amount of net deferral will be reflected in the Adjusted Earnings Per Share figure that will be reported at the financial year-end.

For further information please contact:

Polar Capital Gavin Rochussen (Chief Executive) John Mansell (COO)	[phone]
Numis Securities Limited - Nomad and Joint Broker Charles Farquhar Stephen Westgate Kevin Cruickshank (QE)	[phone]
Peel Hunt LLP - Joint Broker Guy Wiehahn	[phone]
Camarco Ed Gascoigne-Pees	[phone]

 

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