Polar Capital Assets Edge Up Despite Challenging Quarter

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Polar Capital has reported an increase in assets under management (AUM) during the first nine months of its financial year, despite having a “challenging” third quarter.

The investment manager’s AUM climbed 2.8 per cent between 1 April and 31 December to hit £14.2bn.

Read more: Profit dips as Polar Capital suffers £448m outflows

Polar suffered net outflows of £1.07bn during the same period, but said these were offset by a £1.46bn increase related to market movement and fund performance. 

“In the nine month period to 31 December we were not immune to the challenging conditions experienced by the industry as a whole,” said chief executive Gavin Rochussen.

Rochussen said the third quarter had been “challenging” for Polar, which suffered an £81m decline in AUM during the period.

“The election result and reduced Brexit uncertainty increased demand for our UK Value Fund which had net inflows of £100m in December. On the other hand, clients continued to reduce their exposure to North American equities,” he continued.

“This led to net outflows from our North American Fund of £611m in the quarter, which includes the reallocation of a client mandate away from North American equities to alternative asset classes.”

Read more: Rathbone Brothers’ inflows decline sharply despite fund growth

“We remain confident that, over the long term, our active fundamental strategies will continue to deliver above average returns for our clients and compelling total returns for our shareholders,” Rochussen said.

Polar shares were 0.71 per cent lower in early afternoon trading.