Market performance sees Polar Capital AuM narrow
By Josh White
Date: Monday 14 Apr 2025
(Sharecast News) - Polar Capital reported assets under management of £21.4bn as at 31 March in an update on Monday - a 2% decline from £21.9bn a year earlier, as market performance offset otherwise stable net flows.
The AIM-traded specialist active asset manager recorded net inflows of £495m into its open-ended fund range during the financial year.
However, that was offset by outflows of £372m from investment trusts and segregated mandates, as well as £111m of assets lost through fund closures.
As a result, net flows over the period were effectively flat.
Negative market movements and investment performance reduced overall AuM by a further £495m, comprising declines of £378m in open-ended funds, £78m in investment trusts and £39m in segregated mandates.
At the end of the period, AuM comprised £15.99bn in open-ended funds, £4.85bn in investment trusts and £569m in segregated mandates.
"Given significant industry wide net outflows from active equity managers over the period, it is notable that Polar Capital achieved net inflows into its open-ended fund range of £495m excluding fund closures, and net inflows across all investment offerings of £123m in the year to 31 March," said chief executive officer Gavin Rochussen.
"The start of calendar year 2025 has been difficult for global equity markets with increased volatility and uncertainty introduced by the possibility of a tariff induced global trade war.
"With investors selling out of risk assets, it is no surprise that during the quarter total AuM decreased by £2.4bn from £23.8bn at the end of December to £21.4bn at end of March 2025, a 10% decrease, of which net outflows were £0.1bn and market movements and performance made up the remainder."
Rochussen said that over the course of the financial year, a combination of net outflows and fund closures was offset by market and fund performance resulting in the firm's assets under management decreasing by 2% to £21.4bn from £21.9bn at the end of March last year.
"During the quarter, we had net inflows of £398m from a range of funds including the Global Absolute Return, International Small Company, Emerging Market Stars, Healthcare Blue chip, Biotechnology, and Artificial Intelligence Funds.
"During the quarter, the open-ended Technology Fund saw net outflows of £200m compared to £123m of net outflows in the previous quarter.
"The International Small Company Fund, our third US-domiciled mutual fund, which was launched at the end of September 2024, and during a volatile six months for listed equities, has now reached $90m in assets, and is closing in on the important first milestone of $100m."
As global equity markets broadened out, Gavin Rochussen said Polar Capital believed there would be increasing demand by US investors for international equities, which bodes well for the franchise.
"While volatile equity markets may impact AuM levels and profitability in the near term, we remain confident that with our diverse range of specialist active fund strategies, we are well-positioned to perform for our clients and shareholders over the long term."
Polar Capital said it was planning to announce its results for the financial year ended 31 March on 30 June.
At 1044 BST, shares in Polar Capital Holdings were up 1.65% at 370.5p.
Reporting by Josh White for Sharecast.com.
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