Polar Capital grows AUM to £23.4bn as EM and healthcare funds attract net inflows

The asset manager saw AUM increase by £2.5bn, from £20.9bn to £23.4bn, an increase of 12% over the period and, since then, has climbed to £25bn as at 12 November 2021.

Chief executive Gavin Rochussen said that core operating profit, which excludes performance fees, other income and exceptional items, was up 65% to £36.3m compared to the comparable prior half-year period, and up 23% from £29.5m in the immediately preceding six-month period to 31 March 2021.

Polar Capital grows AUM by 71% in ‘extraordinary’ year

Pre-tax profit increased 17%, reaching £31.7m at the end of September, up from £27m a year earlier, although it declined compared to the immediately preceding six-month period, which Polar Capital said included performance fee profits which crystalise in the second half of its financial year.

Polar Capital reported that its sustainability-oriented Emerging Market Stars fund saw £366m of net inflows and the Asian Stars fund had net inflows of £70m over the six-month period, while within its healthcare suite of funds, the Biotechnology fund benefited from net inflows of £199m and three segregated healthcare mandates were funded with £427m.

The Polar Capital Japan Value fund reversed a multi-year period of sustained net outflows, with £20m of net inflows during the period.

Those funds that saw net outflows included the Technology fund, which Polar Capital said “suffered from client allocation decreasing away from the technology sector as well as profit-taking by investors following excellent absolute performance over the past years”.

Net outflows from the Technology fund, which was soft closed in 2020, were £413m and the A&AI fund had outflows of £49m “for similar reasons”.

The Polar Capital UK Value Opportunities fund also clocked up net outflows in the period, amounting to £18m, despite being soft closed last year.

Polar Capital bolsters global healthcare team as co-head Dan Mahony departs

Rochussen said: “There is much greater concern about the impact of climate change, and this will result in growing demand for greener technologies and the investment landscape will be shaped by the conversations and outcomes from COP26 held in Glasgow.

“The launch of the Polar Capital Smart Energy and Smart Mobility funds in September 2021 were well received with early flows and demonstrable appetite from potential investors in these funds.”

He added: “Our diverse and differentiated range of sector, thematic and regional fund strategies and our performance-led culture where 74%, 93% and 99% of our AUM is in the top two quartiles against peers over three years, five years and since inception respectively, together with significant remaining capacity, provides confidence that momentum will continue.”

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