Polar Capital Holdings (LON:POLR) - link to our research here: https://www.equitydevelopment....
FY24 saw a 14% rise in AUM to £21.9bn on 31 Mar 24. This was the second highest AUM increase among a London-listed peer group. Post year-end, Polar has recorded a further 4% increase in AUM to £22.8bn on 14 Jun 24.
Investment performance was the AUM booster in FY24, adding +£4.3bn or +23%, making Polar a runaway leader compared to other asset managers when it comes to investment returns. While its net flows were negative for the full year at -£1.6bn, this was around the median outflow rate of the peer group. And encouragingly, a return to positive, albeit modest, net flows was recorded in Q4 of FY24 (+£56m), with further positive net flows of +£197m in Q1-25 to date.
Polar started FY25 with an AUM level significantly higher than the average level of FY24, with further positive momentum in Q1-25. Absent any severe AUM pullbacks, this should translate to a solid increase in investment fees and core profitability in FY25.
We also think Polar’s track record will attract significant inflows over the longer term. It has been clear for some time that many investors’ decisions to keep reducing technology (and other equity) exposures after the valuation falls of 2022 have proved costly and resulted in them missing out on exceptional returns. Our fundamental value remains at 650p per share.
