Polar Capital sees ‘positive momentum’ as market returns offset outflows for the fund manager
Polar Capital, the specialist fund manager, saw its assets under management jump in the year to the end of March as buoyant equity markets offset outflows.
The firm announced in a stock market update on Thursday that its assets under management (AuM) stood at £21.9bn at the end of 31 March.
This figure was up 12 per cent from £19.6bn at the end of the previous three-month period and a 14 per cent rise year-on-year.
Fund performance added £4.3bn to AuM as global equity markets soared. However, net redemptions of £1.6bn partly offset this figure.
In the financial year ending 31 March, Polar’s net flows were negative £1.61bn, including negative £1.22bn from its open-ended funds.
Recent figures from the Investment Association showed UK retail investors pulled £24.3bn from open-ended funds in 2023. Although slightly better than the figure reported for 2022, it was still one of the highest and fastest levels of outflows recorded.
However, Polar Capital saw improvement in the last quarter, with net inflows of £56m after a number of quarters of net outflows.
Chief executive Gavin Rochussen commented: “Net flows during March 2024 have been particularly pleasing with six of our strategies benefitting from net inflows with an overall total of £228m during the month. While the outlook for fund flows remains uncertain, positive momentum has continued into April 2024.
“There have been inflows into the Global Absolute Return, Emerging Market Stars, Asian Stars, Biotechnology, Global Insurance, Japan Value, Global Technology, Artificial Intelligence and UK Value funds, with combined net inflows of £332m across these funds during the month of March 2024.”
Rochussen added: “Whilst global financial markets remain exposed to several headwinds, the potential of interest rates peaking and central banks beginning to consider the possibility of rate cuts bodes well for equities in general and investors will, we believe, continue to seek additional exposure to the asset class.
Polar Capital is due to announce its full-year results on 27 June.