Polar Capital has recorded an increase in assets under management of approximately 12.5 per cent in the six months to September 30 2016 in spite of net outflows of £772m.
Figures from the group showed that while assets under management (AUM) increased by £848m from £6.8bn to £7.6bn, it recorded net redemptions of £816m from its long only fund range while just £44m flowed into its alternative funds.
The majority of the outflows stemmed from the Japan range, with the firm admitting the Japan funds “have now fallen to 14 per cent of AUM although we would anticipate further outflows if the team’s approach continues to remain out of favour”.
However, market movements and performance contributed £1.2bn to the group’s assets in the period, more than offsetting the total outflows of £772m.
Polar Capital acknowledged: “Whilst it is pleasing to see our AUM, in sterling terms, higher than at the year end, this has been almost entirely due to the weakness in sterling since the Brexit vote and the healthy rise in global markets over the last few months. We have continued to experience net fund outflows over the period, predominantly from our Japan Ucits fund, although we also experienced outflows in a number of other funds particularly in July in the immediate aftermath of the Brexit vote.”
The group continued that while the overall backdrop for flows into equity funds has remained poor in both the UK and continental Europe in the six month period, “we have been encouraged by increased interest in a number of our Ucits strategies including Technology, Healthcare, Insurance, UK Absolute, Global Convertible Bond and European ex-UK Income”.
