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16 Jan 2009 07:00
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16Β January 2009
Polar Capital Holdings plc
AUMΒ Update
Polar Capital Holdings plc ("Polar Capital" or the "Group"), the specialist asset management group, today providesΒ its regular quarterlyΒ updateΒ of itsΒ unauditedΒ statement of itsΒ Assets under ManagementΒ ("AUM").
Group AUMΒ (unaudited)
As atΒ 31 December 2008Β Group AUMΒ has fallenΒ 22%Β sinceΒ 31 March 2008Β to US$2.45bn.Β
The table below sets out the Group's AUM as atΒ 31Β DecemberΒ 2008Β and the movements experienced in theΒ 9Β monthΒ periodΒ sinceΒ 31 March 2008:
|
AUM movement 9Β months toΒ 31 DecΒ 2008 |
Long $m |
Hedge $m |
Advisory $m |
Total $m |
|
As atΒ 31Β March 2008 |
$1,016m |
$2,005m |
$122m |
$3,143m |
|
Performance and currency movements |
($254)m |
($150)m |
($23)m |
($427)m |
|
Net subscriptions/(redemptions)Β from ongoing businesses |
$49m |
$94m |
($62)m |
$81m |
|
Outflows fromΒ closedΒ funds |
nil |
($347)m |
nil |
($347)mΒ |
|
Total AUM atΒ 31 DecΒ 2008 |
$811m |
$1,602m |
$37m |
$2,450m |
NetΒ performance feesΒ (unaudited)
The table below sets out the position relating toΒ netΒ performanceΒ fees earned and accrued inΒ theΒ first nine months of the yearΒ toΒ 31 March 2009:
|
Performance fees netΒ of manager allocations |
9 months to 31 Dec 07 Β£m |
Year to 31 Mar 08 (year end) Β£m |
9 months to 31 Dec 08 Β£m |
|
ReceivedΒ |
Β£6.1m |
Β£8.0m |
Β£8.1m |
|
Accrued but not yet earned in funds with year ends onΒ or beforeΒ the financial year end. |
Β£2.0m |
n/a |
Β£1.6m |
|
Total performance fees |
Β£8.1m |
Β£8.0m |
Β£9.7m |
Note that the analysis has been changed from the historic disclosure of gross performance fees to net performance fees after the deduction of manager's interests. It is felt that the new basis is more helpfulΒ providing greater transparency on performance fee income.
Comment
Despite the encouraging net inflows received into PolarΒ Capital's funds in the first nine months of its financial year the affect of the maelstrom that has struck the industry in the final quarter of 2008 willΒ produceΒ an expected $500m of redemptionsΒ in theΒ Group'sΒ final quarter. In addition to these redemptionsΒ the recent announcement of the resignation ofΒ Julian BarnettΒ will account for a further $400m of outflows as the Paragon Fund is wound up.Β Investors in the Paragon Fund will be given the opportunity to reinvest inΒ Polar Capital's other hedge funds.
Against this backdrop theΒ GroupΒ is fortunateΒ thatΒ fiveΒ of itsΒ hedge fundsΒ areΒ in a strong position to attract assets, withΒ fourΒ bucking the industry trend and making money in 2008. In addition theΒ GroupΒ has a portfolio of long only products that have also outperformed theirΒ respective benchmarks, some funds to a significant degree. This pedigree of investment performance combinedΒ as it isΒ with the depth and breadth of PolarΒ Capital's sales, risk, operational and regulatory support puts theΒ GroupΒ inΒ aΒ strong position to attract assets,Β as and when the environment improves,Β into its range of long only and hedge productsΒ as it looks out into calendar year 2009.
For further information please contact:
|
Polar Capital Mark Kary John Mansell |
+44 (0)20 7227 2700 |
|
Numis Securities Lee Aston Charles Farquhar |
+44 (0)20Β 7260 1000 |
|
Financial DynamicsΒ Ed Gascoigne-Pees GeorginaΒ Turner |
+44 (0)20 7269 7132 |
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