9th Oct 2014 08:11
LONDON (Alliance News) - Polar Capital Holdings PLC Thursday said its assets under management rose by 1% in the six-month period from the end of its last financial year, despite reporting a fall over the course of the second quarter alone.
In a statement, Polar Capital said it had USD13.42 billion in assets under management at the end of September, a fall from the USD13.68 billion recorded at the end of June. However, the assets under Polar Capital's care have increased from the USD13.25 billion recorded at the end of March, the end of its last financial year.
According to the asset manager, the overall increase over the six-month period was driven by a USD548 million positive market movement and performance, which more than offset USD308 million of net redemptions and the USD67 million weight of closing its European Market Neutral team.
In its commentary for the six-month period, Polar Capital said there is still "considerable" uncertainty over the direction of the Japanese equity market, resulting in "material outflows" from its Japan UCITS fund over the last two quarters. Nevertheless, Polar Capital said that strong inflows into a number of its other products over the September quarter and a "general improvement" in markets since the end of March enabled it to increase assets over the six months as a whole.
"We have been consistent in signalling our short-term caution regarding the AUM growth of the group given the uncertainty in the outlook for the Japanese market. Nevertheless, we believe over the medium term the group is well placed to grow assets further, given we have a number of products that have considerable scope for more capacity and assuming no meaningful deterioration in the overall outlook for global equity markets," Polar Capital said in a statement.
Polar Capital recorded GBP4.2 million of net performance fees in the six months ended September 30, compared with GBP4.5 million in the corresponding period last year. The majority of its performance fees crystallise in the second half of the financial year. The fees have not yet been received.
Polar Capital shares were Thursday quoted down 1.5% at 407.75 pence. Numis cut its price target on the stock to 475p from 490p, but kept its Add recommendation.
Assets Under Management Movements (Published By Polar Capital On October 9)
AUM movement Six months to September 30 2014 | Long only funds USDm | Alternative funds USDm | Total USDm |
As at March 31 2014 | USD12,315 | USD934 | USD13,249 |
Net subscriptions / (redemptions) | USD(425) | USD117 | USD(308) |
Closure of EMN team | nil | USD(67) | USD(67) |
Market movement and performance | USD549 | USD(1) | USD548 |
Total AUM at September 30 2014 | USD12,439 | USD983 | USD13,422 |
Assets Under Management Movements (Published By Polar Capital On July 10)
AUM movement Three months to June 30 2014 | Long only funds USDm | Alternative funds USDm | Total USDm |
As at March 31 2014 | USD12,315 | USD934 | USD13,249 |
Net subscriptions / (redemptions)* | USD(333)* | USD77 | USD(256) |
Closure of EMN team | nil | USD(67) | USD(67) |
Market movement and performance | USD752 | USD4 | USD756 |
Total AUM at June 30 2014 | USD12,734 | USD948 | USD13,682 |
* including USD85 million of assets in transition out
By Samuel Agini; [email protected]; @samuelagini
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