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Specialist asset manager Polar Capital has reported that recent equity market volatility hit assets under management (AUM), which fell 12% over the year to £12.2bn at the end of March 2020.
In its quarterly update of its unaudited statement of its AUM for the financial year to 31 March 2020, it said this compared to AUM of £13.8bn at the end of March 2019.
Polar Capital saw AUM decrease by £1.9bn in the three months ended 31 March 2020, citing the combined impact of COVID-19 and a sharp fall in the oil price, which caused sharp declines in global equity markets at the end of the quarter.
During the 12-month period, the asset management group's AUM was down by £1.7bn, which comprised net outflows of £1.2bn and a decrease of £0.5bn that was mainly related to market movement but mitigated by fund performance, it said.
Chief executive Gavin Rochussen said: 'The coronavirus pandemic and oil price collapse brought an abrupt end to the longest bull market in history with the S&P 500 declining 34% over a four-week period to its low point on 22 March.
'A strong rally to 31 March followed unprecedented fiscal and monetary stimulus to ensure economies and markets continued to function.
'Polar Capital was not immune to this equity market volatility with our AuM decreasing by £1.9bn in the March quarter alone because of market declines.'
Net outflows in the March quarter were £140m, of which £135m were from its alternative funds, while net flows were positive for the first two months of the quarter.
'Despite market volatility in March and a rapid equity sell-off that exceeded that of the financial crisis, 55% of our AuM outperformed benchmarks in the March quarter,' he added.