10th Oct 2019 08:48
(Alliance News) - Polar Capital Holdings PLC on Thursday said that positive market movements and fund performance led to a rise in assets under management in the first half of its financial year.
The company reported GBP14.30 billion in assets as at September 30, up 3.3% from GBP13.84 billion as at April 1, with net outflows of GBP448 million being offset by positive market movements and fund performance of GBP915 million.
Net performance fee profits fell 87% year-on-year to GBP4.2 million from GBP32.5 million. The sharp drop in fees was mainly attributed to a fall in accrued, but not yet earned, income to GBP900,000 from GBP27 million.
"The last quarter has been a challenging period with net outflows of GBP598 million following the GBP150 million of net inflows in the previous quarter," said Polar Capital Chief Executive Gavin Rochussen.
"Net outflows in the six months to September 30 from the Japan Fund following the communication of the manager departure and fund merger have been GBP400 million. In the six months, two long-standing clients redeemed in excess of GBP500 million from two of our highly rated funds, the Polar Capital Technology Fund and the Polar Capital Healthcare Opportunities Fund to take profits and reduce risk in their underlying client portfolios," Rochussen added.
On the material drop in performance fees, Rochussen said that fees remained volatile but the company still has to record fees for the remaining three months of 2019.
Polar Capital shares were down 1.7% at 522.80 pence each in London on Thursday morning.
By Tapan Panchal; [email protected]
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