Market movements boost AUM at Polar Capital

Market movements boost AUM at Polar Capital

Fundhouse Polar Capital has reported a rise in assets under management of £1.8bn for the year to the end of March 2019, with the bulk of the growth coming from positive market movements.

The company’s chief executive, Gavin Rochussen, stated in the annual report of the company out this morning (June 24) that 30 per cent of the growth came from net inflows, with the remainder coming from market movements.

Mr Rochussen said: "The financial year to 31 March 2019 was a year of two distinct halves for the company.

"The first six months to September 2018 was a period of rising markets accompanied by global demand for risk assets.

"The market correction in October, followed by a significant sell-off in December, resulted in redemptions globally of assets.

"Despite this volatility, our funds posted a record year for performance fees, the majority of which crystallise annually in December."

The primary area of growth in assets came from the company's long-only funds, which gained assets of £1.7bn, and now account for 91 per cent of the total, while the Alternative Assets strategies gained £100m.

The company launched five new funds during the year and reported a pre-tax profit of £64.1m, with £24m earned in performance fees.

The two funds that were a drag on performance, according to the results, were the North American equity fund, and the UK Value Opportunities fund.

The UK fund is run by George Godber and Georgina Hamilton, who joined Polar from Miton in 2017.

The fund is now £1bn in size, and lost 14 per cent in the 2018 calendar year, according to data from FE Analytics.