Companies and economies around the world continued to feel the effects of the coronavirus-enforced lockdowns during the second half of 2020. Investment Week reports on how they have done since then.
Polar Capital
Polar Capital has increased its assets under management (AUM) by 34% since the March 2020 sell-off to sit at £16.4bn by the end of September, with £907m coming from net inflows and the remainder attributed to positive market movements.
However, when it comes to average AUM over the six months to 30 September, the increase is more subdued, amounting to 4% compared to the same period last year.
The firm reports that the largest beneficiaries of net flows over the six-month period were technology funds, notably the Global Technology fund which saw net subscriptions of £1.2bn, while the Technology investment trust, as well as the Automation & Artificial Intelligence, Healthcare Opportunities and Biotechnology funds also saw inflows. Its Emerging Market Stars fund was also popular despite subdued sentiment towards the region.
The firm's Japan Value and North America funds, however, suffered outflows during the period, while the UK Value Opportunities funds had a "challenging March 2020 for performance" and has seen outflows of £108m.
Meanwhile, the firm's pre-tax profit increased from £24.9m on 30 September 2019 to £27m a year later. Other income also "increased materially" from £0.8m in the six months to 30 September 2019 to £4.9m during the same period this year "as a result of gains on seed investments".
Chief executive Gavin Rochussen said: "Polar has demonstrated operational resilience since the initial lockdown in March 2020 and all aspects of the firm have operated effectively.
"Given the market backdrop, the Polar fund strategies with a clear growth/quality style profile have performed well. Our diverse and differentiated range of sector and regional fund strategies, and our performance led culture, gives us confidence in our ability to withstand market turbulence in these uncertain times."
Close Brothers
Close Brothers has reported that its asset management division has enjoyed annualised net inflows of 7% over three months to 31 October, despite the Covid-19 pandemic affecting the firm's ability to interact with clients face-to-face.
The period saw the assets managed by the division rise from £12.6bn to £12.8bn, while total client assets saw a rise to £13.8bn from £13.7bn at the end of July.
Adrian Sainsbury, CEO of Close Brothers Group, said: "The group has performed well in the first quarter, with strong new business volumes in banking, reflecting increased customer activity, continued net inflows in the asset management division and elevated trading volumes in Winterflood.
"Our operational capabilities and financial resources have enabled us to continue to build on the positive momentum seen in the last months of the 2020 financial year.
"Although the external environment remains highly uncertain, we continued to adapt well to these challenging and rapidly changing conditions. Our resilient model and the deep expertise of our people position us well to continue maximising support to our customers and clients, consistent with our purpose of helping the people and businesses of Britain thrive over the long term."
