Polar Capital reports 8pc rise in assets under management

(Sharecast News) - Polar Capital reported an 8% rise in assets under management in the final quarter of its financial year on Monday, driven by net inflows and positive market performance despite heightened geopolitical uncertainty.

The AIM-traded specialist asset manager said AuM stood at £30.6bn as at 31 March, up from £28.4bn at the end of December.

It said the quarterly increase was supported by net inflows of £1.4bn and £0.8bn of fund performance and market gains, partially offset by £13m of fund closures.

Open-ended funds accounted for the bulk of assets, rising to £23.4bn from £21.4bn at the start of the quarter, while investment trusts increased to £6.6bn from £6.5bn and segregated mandates rose to £604m from £539m.

Over the full financial year, AuM increased 43% from £21.4bn at the end of March 2025, reflecting £902m of net inflows alongside £8.8bn of market and performance gains, partly offset by £396m of corporate actions and £75m of fund closures.

"We have delivered a strong finish to the financial year, despite a backdrop of heightened geopolitical uncertainty and ongoing market volatility," said chief executive Iain Evans.

"Over the quarter, assets under management (AuM) increased by 8% to £30.6bn, up from £28.4bn at the end of December, supported by net inflows of £1.4bn.

"For the full financial year, AuM increased by 43% to £30.6bn, from £21.4bn at the end of March 2025, reflecting a combination of net inflows, fund performance and market movements.

"We delivered a second consecutive year of positive net inflows, totalling £902m - excluding corporate actions and fund closures - demonstrating the strength of our specialist investment capabilities."

Flows during the quarter were broad-based, led by the Technology, Healthcare and Smart Energy strategies.

The group highlighted particularly strong demand for its Global Technology and Artificial Intelligence funds, which recorded net inflows of £722m and £575m respectively, supported by continued client interest in structural growth themes and new mandates across wealth and private banking channels in Europe and Asia.

Healthcare strategies also contributed, including the launch of a new separately managed account with a Swiss wealth manager, while Emerging Market Stars, Japan Value and Global Absolute Return funds all generated inflows.

Outflows were concentrated in North American, Global Insurance and Asian Stars strategies, which the group attributed to a small number of client-specific redemptions rather than broader shifts in demand.

Looking ahead, Polar Capital said it had entered 2026 with continued positive inflow momentum, although flows moderated in March following an escalation of conflict in the Middle East.

"We have entered 2026 with positive net inflow momentum, although we remain mindful of the structural challenges facing the industry," Evans said.

"The geopolitical backdrop has become more uncertain, contributing to heightened market sensitivity, particularly in energy markets.

"Despite this, we remain confident in our positioning as a specialist boutique.

"As markets broaden and the pace of technological disruption, including AI, accelerates, the case for specialist active management is becoming increasingly compelling."

Polar Capital said it would report its full-year results for the period ended 31 March on 1 July.

At 1037 BST, shares in Polar Capital Holdings were up 8.66% at 693p.

Reporting by Josh White for Sharecast.com.

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