Today we have had updates from two UK fund management Companies Jupiter (JUP) & Polar (POLR) which showed contrasting fortunes. Jupiter, which features in the Compound Income Scores Portfolio saw net inflows of £77 million in Q3 despite the difficult market background which therefore wiped £884 million off their funds to leave them overall at £33.5 billion, down by 2.3% on the quarter. The inflows were aided by demand for their European equity and dynamic bond funds.
Meanwhile Polar Capital saw continued outflows, primarily from their Japanese funds, although at a slower rate given their improved performance. Thus they saw outflows of $710m which, in contrast to Jupiter, was greater than the market effect which was $616m in Polars case, although they were reporting on a six month period rather than Q3. This left their assets under management at $10.9 billion, down by 10.8% over the six months to the end of September and by 11.4% over Q3.
On value and quality grounds they are similar, although Polar is smaller and has been around for a shorter period of time so perhaps has more to prove but also maybe therefore has more scope to grow organically. The other main difference is in the yield where Jupiter yields around 5.7% whereas Polar yields about 1% more with a 6.8% yield, but if you are a fan of momentum, then you would probably favour Jupiter over Polar. However on the charts / technicals, while both look toward the bottom of their range, Polar perhaps looks more oversold and may have greater short term upside reflecting its poorer recent momentum.
So as ever you pay your money and take your choice and with contrasting fortunes they both may be interesting short term recovery plays if you think markets can maintain their recent form and sustain a year end rally. Of course if you think we have entered a bear market then you would probably not want to be long fund management companies.