Polar Capital Regulatory News (POLR)

14 July 2016

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)

Polar Capital reports that as at 30 June 2016 its AUM were $9.6bn (£7.3bn) compared to $10.4bn (£7.3bn) at the end of March 2016.

Comment

Our AUM in GBP terms, the currency of our financial statements, were flat at the end of June 2016 compared to the level reported at the start of our financial year. As highlighted in our latest results, we have experienced a protracted period of redemptions from our main Japan UCITS fund which accounted for the majority of our outflows during the most recent quarter, following the fund's extended period of disappointing performance. As the majority of our AUM are non-sterling, these outflows were largely offset by a favourable movement in sterling against other major currencies following the outcome of the Brexit referendum and some modest inflows into a number of our other funds.

In USD terms, the positive currency effect from the Brexit referendum had no impact and this resulted in our AUM falling by 8% compared to the level reported at the end of March 2016.

Uncertainty ahead of the Brexit vote caused a number of our clients to postpone their fund allocation decisions during the quarter. Whilst the outcome of the referendum surprised many in our industry and has created a further degree of uncertainty, the reaction of markets has been more encouraging than the consensus view anticipated and clients seem more disposed to make allocation decisions as a result. We remain encouraged by the interest clients are showing in a number of our funds beyond Japan.

For further information please contact: