CEO Rochussen: 'Passive pressure' drove Polar Capital outflows

Profits fall but AUM proves resilient

James Baxter-Derrington
clock • 3 min read

Net outflows "dwarfed" inflows over the year ending 31 March 2020 as Polar Capital's North American fund suffered combined pressures of passive products and underperformance, according to CEO Gavin Rochussen.

The firm's North American equity fund recorded net outflows of £1.1bn, which Rochussen attributed to "passive pressure" as it is "very difficult" for active managers to outperform the benchmark, along with the "value biased fund" also struggling in a growth market, all combined to produce underperformance in the fund. Polar Capital acquires US-based value equity team Combined with the £485m "expected" outflows of the Japan funds, which the CEO credited to the merging of funds and  the asset class simply "not getting the same kind of traction as it did", net outflows dominated despite ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot