Losses totalling £2.4bn drive Polar Capital AUM down 14% in Q2

Polar Capital saw its assets under management (AUM) drop by 14% in the three months to June 2022, as it reported £2.4bn in losses related to fund performance. 

Over the last quarter, the group's AUM fell to £18.9bn, compared to £22.1bn at the end of March 2022. The decline was driven mainly by fund performance, but also by net outflows of  £316m and fund closures of £459m. 

The bear market sell-off was the biggest contributor to performance, the firm said. Open-ended funds took the biggest hit, with losses of £1.6bn. Investment trusts lost £652m, while segregated mandates dropped £76m.

"During the quarter, the rate of net outflows from open-ended funds slowed down compared to the previous quarter, resulting in total net outflows of £316m, driven by the technology funds with net outflows of £380m and which compares favourably with technology net outflows in the previous quarter of £630m," CEO Gavin Rochussen said. 

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Despite redemptions in the quarter, Rochussen said the firm is still seeing continued demand and inflows into its sustainable emerging market stars, global insurance, healthcare blue chip, global absolute return and smart energy funds, with combined net inflows of £275m. 

"With significant fund capacity and improving relative fund performance, we remain confident that with our diverse range of active specialist fund strategies we are well positioned to perform for our clients and shareholders over the long term."