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(Sharecast News) - Specialist active asset management group Polar Capital announced a 9% increase in its assets under management for the nine months ended 31 December on Monday, to 23.8bn from 21.9bn at the start of April, driven by net inflows, market movements, and fund performance.
The AIM-traded firm said the increase included 0.2bn in net inflows and a 1.8bn boost from market movements and fund performance, partially offset by 0.1bn in fund closures.
Open-ended funds led growth with an increase to 17.5bn, while investment trusts grew to 5.6bn, and segregated mandates declined slightly to 625m.
Net performance fee profits for the nine months through December totalled 8.3m, compared to 9.6m during the same period in 2023.
The board said the 2024 figure included an estimated 0.8m from net deferment adjustments.
Full-year performance fee results were expected to be disclosed in the group's year-end update to 31 March.
"Despite a late December sell-off in global equity markets, and net outflows during the final calendar quarter, assets under management at the end of the nine-month period increased to 23.8bn from 22.7bn at the end of the previous quarter and 21.9bn at the end of March 2024," noted chief executive officer Gavin Rochussen.
"During the quarter we benefited from continued net inflows into the Emerging Market Stars funds and related managed accounts of 240m and the Artificial Intelligence Fund of 14m.
"This was offset by several other funds experiencing net outflows including the European Opportunities Fund and related managed accounts, 158m; Global Technology Fund, 123m; and UK Value Fund, 92m; as well as the planned closure of the Forager European Long/Short Fund, 100m."
Rochussen said net flows had improved year-on-year with net outflows, including a fund closure of 100m, during the quarter of 360m compared to net outflows in the comparable quarter in the prior year of 1.1bn.
"Net outflows during the quarter were primarily concentrated in October, mirroring the broader UK funds industry, which experienced its third worst month on record ahead of the Chancellor's Autumn Budget.
"Including the impact of a fund closure, net outflows for the month of October totalled 301m.
"Net outflows in December were 76m; November saw net inflows of 17m."
Performance fee profits, net of staff allocations, amounted to 8.3m compared to 0.7m at the end of September, Gavin Rochussen said, and 9.6m in the prior year.
While five funds earned a performance fee, most of the amount related to one fund, the CEO added.
"Long term performance remains strong with 89% of UCITs AuM outperforming respective benchmarks since inception,
"We remain confident that with our diverse range of differentiated, active specialist fund strategies we are well-positioned to perform for our clients and shareholders over the long term."
At 1437 GMT, shares in Polar Capital Holdings were up 0.83% at 484.5p.
Reporting by Josh White for Sharecast.com.