Polar Capital : AUM Update

11 April 2019 Polar Capital Holdings plc

AUM Update

Polar Capital Holdings plc ('Polar Capital' or the 'Group'), the specialist asset management group, today provides its regular quarterly update of its unaudited statement of its assets under management ('AUM') for the financial year to 31 March 2019.

Group AUM (unaudited)

Polar Capital reports that as at 31 March 2019 its AUM were £13.8bn compared to £12.0bn at the end of March 2018, an increase of 15% over the year.

AUM movement in twelve months to 31 March 2019	Long-only funds	Alternative funds	Total
AUM at 1 April 2018	£10,812m	£1,168m	£11,980m
Net subscriptions	£427m	£129m	£556m
Market movement and performance	£1,290m	£9m	£1,299m
Total AUM at 31 March 2019	£12,529m	£1,306m	£13,835m

Comment

While the Group reports AUM at a record year-end high of £13.8bn, an increase of £1.8bn over the financial year, over the past twelve months we have experienced material fluctuations in the Group's AUM. Before the market sell-off in October, AUM reached an all time high of £14.7bn at the end of the first half in September but following the market correction in the final calendar quarter AUM declined to £12.7bn as at 31 December 2018. The strong market recovery in the recent quarter lifted AUM by £1.1bn to £13.8bn.

During the financial year, net inflows amounted to £556m as a result of positive net inflows in the first half of £932m followed by net outflows of £286m in the December quarter and a significantly reduced rate of net outflows of £90m in the recent quarter to 31 March 2019. Net flows in April have to date been positive.

Despite the market volatility over the second half, the Group's funds have performed well resulting in a record year for net performance fee profits of £23.6m which crystallised on 31 December 2018.

Gavin Rochussen, Chief Executive, commented:

'Polar Capital has had a year of two halves with strong growth in AUM through net inflows, performance and markets in the first half followed by reduced risk appetite for our specialist fund strategies following the global sell-off and market correction in October and December of 2018. Net flows have stabilised and funds have continued to perform in line with our expectation, with 76% of the Group's AUM ahead of their benchmarks annualised over three years to 31 March 2019. In the last quarter, the majority of AUM and fund strategies outperformed their respective benchmarks.'

'With a diverse range of actively managed specialist fund strategies, Polar Capital is positioned to continue performing for its clients and has capacity to attract additional net inflows. Market volatility is expected to remain as political tensions continue and as Brexit, with an unpredictable outcome, runs its course.'

Polar Capital will announce its results for the financial year to 31 March 2019 on 24 June 2019.

For further information please contact:

Polar Capital Gavin Rochussen (Chief Executive) John Mansell (COO)	[phone]
Numis Securities Limited - Nomad and Joint Broker Charles Farquhar Stephen Westgate Kevin Cruickshank (QE)	[phone]
Peel Hunt LLP - Joint Broker Guy Wiehahn	[phone]
Camarco Ed Gascoigne-Pees	[phone]