15th Jan 2015 09:37
LONDON (Alliance News) - Polar Capital Holdings PLC Thursday reported a drop in assets under management over the first nine months of its financial year, hit by outflows of more than USD1.5 billion from its Japan business over uncertainty about the direction of the country's equity market.
In a statement, the specialist asset manager said assets under management fell to USD12.86 billion at the end of 2014, comparing unfavourably against the USD13.42 billion reported for the end of September that year.
For the nine-month period to the end of 2014, Polar Capital Holdings reported USD1.06 billion of net redemptions from funds and trusts it manages, and said USD67 million of the assets it no longer manages related to the closure of its European market-neutral team, while positive market movement and performance of USD740 million partially offset this. The group started the nine-month period with USD13.25 billion of assets under management.
Net performance fees fell to GBP5.4 million in the nine months ended December 31, compared with GBP7.6 million in the corresponding period last year.
"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," Polar Capital said in a statement.
"Nevertheless, we believe that over the medium term, the group is well placed to grow assets further, given the number of our products that have considerable scope for more capacity and assuming no meaningful deterioration in the overall outlook for global equity markets," the asset manager added.
Polar Capital Holdings shares were up 0.5% at 402.85 pence on Thursday.
By Samuel Agini; [email protected]; @samuelagini
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