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16 Jan 2009 07:00
16 January 2009
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").
Group AUM (unaudited)
As at 31 December 2008 Group AUM has fallen 22% since 31 March 2008 to US$2.45bn.
The table below sets out the Group's AUM as at 31 December 2008 and the movements experienced in the 9 month period since 31 March 2008:
|
AUM movement 9 months to 31 Dec 2008 |
Long $m |
Hedge $m |
Advisory $m |
Total $m |
|
As at 31 March 2008 |
$1,016m |
$2,005m |
$122m |
$3,143m |
|
Performance and currency movements |
($254)m |
($150)m |
($23)m |
($427)m |
|
Net subscriptions/(redemptions) from ongoing businesses |
$49m |
$94m |
($62)m |
$81m |
|
Outflows from closed funds |
nil |
($347)m |
nil |
($347)m |
|
Total AUM at 31 Dec 2008 |
$811m |
$1,602m |
$37m |
$2,450m |
Net performance fees (unaudited)
The table below sets out the position relating to net performance fees earned and accrued in the first nine months of the year to 31 March 2009:
|
Performance fees net of manager allocations |
9 months to 31 Dec 07 £m |
Year to 31 Mar 08 (year end) £m |
9 months to 31 Dec 08 £m |
|
Received |
£6.1m |
£8.0m |
£8.1m |
|
Accrued but not yet earned in funds with year ends on or before the financial year end. |
£2.0m |
n/a |
£1.6m |
|
Total performance fees |
£8.1m |
£8.0m |
£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 helpful providing greater transparency on performance fee income.
Comment
Despite the encouraging net inflows received into Polar 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 will produce an expected $500m of redemptions in the Group's final quarter. In addition to these redemptions the recent announcement of the resignation of Julian Barnett will account for a further $400m of outflows as the Paragon Fund is wound up. Investors in the Paragon Fund will be given the opportunity to reinvest in Polar Capital's other hedge funds.
Against this backdrop the Group is fortunate that five of its hedge funds are in a strong position to attract assets, with four bucking the industry trend and making money in 2008. In addition the Group has a portfolio of long only products that have also outperformed their respective benchmarks, some funds to a significant degree. This pedigree of investment performance combined as it is with the depth and breadth of Polar Capital's sales, risk, operational and regulatory support puts the Group in a strong position to attract assets, as and when the environment improves, into its range of long only and hedge products 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)20 7260 1000 |
|
Financial Dynamics Ed Gascoigne-Pees Georgina Turner |
+44 (0)20 7269 7132 |
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