CEO Rochussen: 'Passive pressure' drove Polar Capital outflows

Profits fall but AUM proves resilient

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 ...