Polar Capital has released a quarterly AUM update, reporting a 10% fall in assets over a “difficult” period since the start of the year.
Over the first quarter of 2025, total AUM fell by £2.4bn, from £23.8bn in December 2024 to £21.4bn at the end of March 2025. This was made up of £100m in net outflows, combined with market movements and fund performance.
The group also reported a 2% fall in AUM over the year to March 2025 from £21.9bn to £21.4bn. Net inflows of £500m into its open-ended fund range over this period were offset by outflows from segregated mandates and investment trust share buybacks totalling £400m.
See also: Rosemary Banyard leaves fund management
Including fund closures, net flows were flat and AUM was reduced by £500m due to market movement and fund performance.
The group’s chief executive, Gavin Rochussen, said there had been “significant industry-wide net outflows from active equity managers” in the first quarter of the year.
“The start of calendar year 2025 has been difficult for global equity markets with increased volatility and uncertainty introduced by the possibility of a tariff induced global trade war,” said Rochussen. “With investors selling out of risk assets, it is no surprise that, during the quarter, total AUM decreased by £2.4bn from £23.8bn at the end of December 2024 to £21.4bn at end of March 2025, a 10% decrease, of which net outflows were £0.1bn and market movements and performance made up the remainder.
“Over the course of the financial year, a combination of net outflows and fund closures was offset by market and fund performance resulting in our AuM decreasing by 2% to £21.4bn from £21.9bn at the end of March 2024.
“During the quarter, we had net inflows of £398m from a range of funds including the Global Absolute Return, International Small Company, Emerging Market Stars, Healthcare Blue chip, Biotechnology, and Artificial Intelligence funds.”
See also: The defensive US funds that outperformed in market downturns
He noted that the group’s open-ended Technology fund saw £200m of net outflows compared to £123m of net outflows the previous quarter. This reflects the torrid time seen in financial markets and the technology sector in recent weeks.
“The International Small Company fund, which was launched at the end of September 2024, and during a volatile six months for listed equities, has now reached US$90m in assets, and is closing in on the important first milestone of US$100m. As global equity markets broaden out, we believe there will be increasing demand by US investors for international equities which bodes well for the franchise,” he added.
“While volatile equity markets may impact AUM levels and profitability in the near term, we remain confident that with our diverse range of specialist active fund strategies, we are well-positioned to perform for our clients and shareholders over the long term.”
Polar Capital plans to announce its results for the financial year to 31 March on 30 June.