Investors pulled £1.1bn from Polar Capital funds as the firm’s assets under management (AUM) dropped 16% in the nine months to 31 December 2022.
During the period, the firm suffered £500m in outflows from fund closures, losing a further £2bn to market movements and performance. In Q3, investors withdrew £304m from Polar Capital funds.
This all contributed to AUM falling to £18.5bn at the end of the firm’s third quarter from £18.8bn in Q2. The firm started its 2023 financial year managing £22.1bn worth of assets.
The asset manager has been hit hard by a sell-off in tech stocks and, even though clients continue to pull money from Polar’s tech funds, outflows slowed to £252m from £380m recorded in Q1.
See also: China’s post-Covid reopening could be spark for tech sector – Polar Capital’s Rogoff
Chief executive Gavin Rochussen (pictured) pointed to net inflows of £190m into the firm’s global insurance, healthcare blue chip, smart energy and emerging market stars funds as reasons for optimism despite the tough market conditions.
He said: “While crystallised net performance fee profits for the period to 31 December 2022 were muted this year, long-term performance remains strong with 64% of our funds and 78% of AUM having outperformed their respective benchmarks since inception.
“We remain confident that with our diverse range of differentiated, active specialist fund strategies we are well-positioned to perform for our clients and shareholders over the long term.”
Polar Capital AUM movement in nine months to 31 December 2022
| Open-ended funds | Investment trusts | Segregated mandates | Total | |
|---|---|---|---|---|
| AUM at 1 April 2022 | £16,590m | £4,378m | £1,153m | £22,121m |
| Net flows | £(1,035m) | £(85m) | £(29m) | £(1,149m) |
| Fund closures | £(390m) | – | £(79m) | £(469m) |
| Market movement and performance | £(1,233m) | £(766m) | £(33m) | £(2,032m) |
| Total AUM at 31 December 2022 | £13,932m | £3,527m | £1,012 m | £18,471m |
See also: Polar Capital names UK sales head
