Diversification cannot come fast enough for asset manager Polar Capital (POLR). For the first time since the financial crisis, it reported a drop in its assets under management (AUM) to $12.3bn (£7.8bn) at 31 March, from $13.2bn a year earlier. Net outflows of $1.9bn from its main Japan fund more than outweighed AUM boosts for its technology, healthcare, and North America-focused strategies.
Despite Japan's huge government pension fund, which has assets of more than $1 trillion, announcing a shift towards equities last year, a lack of investor confidence continues to affect the market and the funds exposed to it. It is unlikely investors are baulking at Polar Capital's long-term performance - over a 10-year period, management says a £100,000 investment in its Japan fund would have grown to £178,800 after costs, compared with the £133,600 that its benchmark exchange traded fund would have reached.
But shorter-term underperformance in Japan dogged the numbers, with management optimistically pointing to an "upward trend" since the year-end. Performance fees overall were down to £12.2m over the reported period, from £19.2m in the 2014 financial year.
Analysts at Canaccord Genuity expect adjusted pre-tax profit of £36.2m for the year to March 2016, giving EPS of 30.5p, compared with £33.7m and 28.2p in 2015.
| POLAR CAPITAL (POLR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 479.5p | MARKET VALUE: | £428m | |
| TOUCH: | 475-480p | 12-MONTH HIGH: | 520p | LOW: 351p |
| DIVIDEND YIELD: | 5.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 84p | NET CASH: | £41.4m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 39.1 | 9.2 | 8.6 | 7.5 |
| 2012 | 39.9 | 9.6 | 9.5 | 9 |
| 2013 | 51.7 | 15.3 | 15.0 | 13 |
| 2014 | 91.8 | 32.8 | 30.8 | 25 |
| 2015 | 96.2 | 31.1 | 27.5 | 25 |
| % change | +5 | -5 | -11 | - |
Ex-div: 2 Jul Payment: 17 Jul | ||||
