Polar Capital Holdings PLC on Thursday said its asset under management fell at the end of 2022 from nine months earlier, citing a combination of reasons including continued risk in market sentiment.

The London-based asset manager said assets under management on December 31 were worth £18.47 billion, down 16% from £22.12 billion on April 1.

This was caused by decreasing net redemptions of £1.15 billion, outflows from fund closures of £469 million and a £2.03 billion decrease related to market movement and fund performance.

Open-ended funds AuM also fell to £13.93 billion on December 31 from £16.59 billion on April 1, while performance fee profit in the nine months to December 31 was down to £1.9 million from £4.3 million a year earlier.

Chief Executive Gavin Rochussen said declining AuM was due to ‘a combination of the continued risk off market sentiment leading into the end of the calendar year, net outflows, fund closures and fund performance’.

He continued: ‘While crystallised net performance fee profits for the period to December 31 were muted this year, long term performance remains strong with 64% of our funds and 78% of AuM having outperformed their 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.’

Shares in Polar Capital Holdings were up 1.2% to 506.00 pence each in London on Thursday morning.

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