LONDON (ShareCast) - Polar Capital Holdings reported a 27 per cent quarter-on-quarter increase in assets under management (AuM) to 9.2bn dollars for the three months to end of June.

The company achieved $1,821m of net inflows and $177m of market movement during the quarter.

The group said inflows of the previous financial year continued into the first quarter of the new financial year, despite challenging market conditions.

However, it is not anticipated that flows will continue at this pace.

Following the July 1st launch of Polar Capital Global Financial Trust, which raised £153m, the current quarter has taken off to a good start, the firm added.

“The group continues to be well positioned to continue to grow assuming market conditions do not deteriorate materially,” it said in a trading update.

Canacord Genuity noted that AuM and net inflows were significantly higher than its forecasts.

The broker maintained its fiscal year 2014 estimates for market movement of $443m and net inflows of $2.5bn.

“At 400p, Polar shares are trading on a prospective yield of 5.0%. We see potential for a 17% capital return over the next year (i.e. 22% total return). Reiterate ‘buy’,” the analyst said.

Shares rose 1.25% to 405p at 10:22 on Thursday.

RD

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