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Polar Capital shuts down UK equity team
by Dylan Lobo on Oct 17, 2013 at 08:12
Polar Capital is closing down its UK equity desk, which will spark a $293 million (£182.2 million) outflow.
The firm said it had no immediate plans to re-enter the UK equity market at a later stage.
'In the quarter just commenced the group's UK team will be leaving Polar Capital,' it said in a statement. 'It is not currently expected that a replacement UK team will be recruited. This will result in an outflow (at current market levels) of $293m of assets under management in the December quarter.
'Given the renewed uncertainly in markets over recent weeks we would expect the levels of net inflows to be less certain and possibly materially lower in the upcoming quarters notwithstanding the loss of the UK related assets. The group believes that despite this qualification it remains well positioned to grow both assets and profitability further over the longer term.'
Polar said its overall strategy continues to be based on the presence of ten to twelve world class investment teams.
The departure of the UK team leaves ten teams in place, which Polar said leaves further scope to add additional teams if opportunities arise.
Overall Polar Capital enjoyed a strong period. Over the six months to the end of September assets under management increased by 58% to $11.4 billion, which represents a rise of more than a 100% on the $5.3 billion it reported the previous year.
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