Fund house Polar Capital has reported a rise in assets under management of 3.6 per cent for the six months to September despite investors pulling a net £400m from its funds.
In an update released to the stock market today (November 25), the group stated its AUM had reached £14.3bn as at September 30, with the bulk of growth stemming from market movement, currency and performance.
In terms of outflows, the company’s chief executive Gavin Rochussen said the group had received net inflows into most individual funds despite overall net outflows.
The merger of the group’s Japan fund and two large withdrawals from its Global Technology fund and the Healthcare Opportunities fund were largely to blame for the outflows.
The group’s profits before tax dropped from £27.3m to £24.9m year-on-year while the shareholders earnings per share decreased by 10 per cent to 19.8p.
Mr Rochussen said the past six months had been difficult, noting that positioning and sentiment remained cautious, with many investors and fund managers retaining high cash levels and underweight equity investments.
In terms of fund performance, 68 per cent of Polar’s funds are ranked in the top quartile versus its peers over three years, 75 per cent over five years and 90 per cent over since inception.
The results noted some of its funds with growth characteristics, such as technology, healthcare and UK absolute, had suffered slightly in the month of September when value began to outperform growth.
But Mr Rochussen said the fund house did not believe conditions were in place for a “sustained swing towards value stock”.
He added: “The past six months have been challenging. Close to home, the ongoing uncertainty surrounding the UK's relationship with Europe has led to a very polarised equity market.
“This picture has started to change as hopes of a Brexit solution have risen; we are beginning to see signs of bargain hunters emerge in the UK.”
He added: “With our diverse and differentiated range of sector and regional long-only and alternative strategies with an entrenched performance led culture, we believe that we are well placed to continue delivering above average returns for our clients and, as a consequence, compelling returns for our shareholders over the long term."
imogen.tew@ft.com
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