Polar Capital’s assets under management (AUM) ballooned by £1.6bn from £12bn at the end of March to £13.6bn at the end of June.
Similarly, Liontrust’s total assets rose £949m, taking AUM from £10.5bn to £11.4bn over the same period.
Most of the growth in AUM came from fund performance, carried by rising markets.
Market movement and fund performance accounted for £927m of Polar’s spike in AUM and £629m of Liontrust’s AUM, according to the firms’ latest sets of results.
Both boutique managers have an equities bias, though Liontrust has been broadening its product range to include fixed income and sustainable funds.
Polar Capital remains an equities-only fund house with funds chiefly invested in developed markets. However, it has been expanding its reach in the Nordic region and has recently assembled an emerging markets team.
Bull market end is nigh
Net subscriptions into Polar’s funds meanwhile contributed £694m to AUM.
While CEO Gavin Rochussen (pictured) expects the long bull market will come to an end soon, he said the firm’s active strategies will continue to deliver above average returns.
“While we are aware that a more challenging environment for equities will arise at some point given the advanced stage of the long recovery cycle post the financial crisis, we remain confident that our active fundamental fund strategies will continue to deliver above average returns for our clients,” he said.
Net flows spike
Liontrust’s net inflows were £320m for the quarter, up substantially from the £22m net inflows over the corresponding period last year.
Most of its total assets are housed within its economic advantage and sustainable investment products, which have amassed £5.5bn and £3.2m respectively.
Its newly minted global fixed income unit ended the quarter with £219m of assets.
Last year Liontrust poached celebrated Kames fixed income duo David Roberts and Phil Milburn to head up a new global fixed income team. Since joining, the pair have helped launch three fixed income funds.
John Ions chief executive said the group had kicked off the new financial year with “a strong start”.
“The quality of our fund management team is a key differentiator for Liontrust and means the company is well positioned to continue to grow,” Ions added.
