The Paris office, still subject to regulatory approval, will help boost its client servicing presence in Europe, the UK fund group said.
Polar Capital added that “certain key functions” will be undertaken for the company from the new location.
The expansion into Europe forms part of new chief executive Gavin Rochussen’s “diversification strategy”.
Since taking over for Tim Wolley after his retirement last July, Rochussen (pictured) has expressed a desire to add to Polar Capital’s product range and diversify the client base geographically and by segment.
Darius McDermott managing director at Chelsea Financial Services noted Rochussen’s approach with Polar Capital is not dissimilar to the expansion plan he spearheaded when he was top boss at JO Hambro Capital Management.
Brexit shadow
Polar Capital’s plan also comes at a time when asset managers are assessing their Brexit contingency plans, with several announcing they will allocate more resources to Europe and shift European clients’ assets into Sicav vehicles.
Rochussen himself said that “the finalisation of Brexit terms cast a shadow” but stressed that the group is “well positioned as fundamental research-driven, active fund managers to find opportunities globally and to continue to deliver above average returns for our clients”.
Rochussen said the group will also be building its presence in the Nordic region and on Monday announced it had recruited Blackrock’s ex-Nordic head Peter Leane to lead the team.
The CEO said “the Nordic region is an important one for us” and that Leane, who has over 30 years’ industry experience, was “the ideal candidate” for the role.
Earlier this month, Polar Capital poached Jorry Rask Nøddekær and a trio of managers from Nordea Asset Management to launch its debut emerging markets fund.
On Monday, the group confirmed the Emerging Market Star fund will be available to investors in the UK and Ireland from 2 July.
Profits doubled
The updates on its were published alongside the asset manager’s full year results, which saw profits double and the group hike its dividend from 25p to 28p.
Adjusted profit before tax swelled to £46.4m from £23.6m, which Cantor Fitzgerald said was ahead of its expectations. The stock broker maintained its ‘hold’ recommendation and upped its target price for Polar Capital to 600p from 500p, though this is still below the asset manager’s current share price of 682p.
Profit growth was driven by higher assets under management, which rose 29% during the year from £9.3bn to £12.0bn as of March 2018, and higher performance fees.
While Cantor Fitzgerald expects net inflows to reach £1bn in 2019, it believes AUM growth will slow to 8% taking total assets for next year to £13.3bn.
