Polar Capital reports solid first half

Polar Capital reported a strong first-half financial performance on Monday, driven by a 4% increase in assets under management (AuM) to £22.7bn, up from £21.9bn at the end of March.

The AIM-traded firm said AuM had since risen further to £23.9bn as of 8 November, supported by net inflows of £472m, reversing outflows of £581m during the same period last year.

Core operating profit rose 21% to £27.3m, while profit before tax increased 9% to £23.1m.

Basic earnings per share improved 7% to 17.3p, and adjusted diluted earnings per share surged 42% to 24.5p.

The group maintained its interim dividend at 14p per share, to be paid on 10 January.

“It has been a positive start to the new financial year with net inflows over six months reaching £472m and market movement and fund performance contributing a further £323m to asset growth,” said chief executive officer Gavin Rochussen.

“This has seen our assets under management rise 4% to £22.7bn at the end of the reporting period, and more recently, AuM has increased further to £23.9bn as at 8 November.

“Notable successes have been the Emerging Markets & Asia strategies which saw net inflows of £929m over the period following strong investor demand.”

Rochussen said performance was also pleasing, noting that Across the Polar Capital UCITS fund range, representing 75% of the group's total AuM, 90% was in the top two quartiles of the appropriate Lipper peer group over one year to 30 September.

“77% of AuM is in the top two quartiles over three years, 97% over five years and 99% since inception.

“Since inception to 30 September, 91% of AuM is in the first quartile against the Lipper peer group.”

Gavin Rochussen said that looking ahead, visibility on actively managed equity flows for the industry remained unclear.

“However, given our compelling long-term investment performance and remaining capacity in a broad range of active, specialist and differentiated thematic, sector and regionally focused fund strategies, we are confident that we can continue to perform for our clients and shareholders over the long term.”

At 1210 GMT, shares in Polar Capital Holdings were up 4.69% at 536p.

Reporting by Josh White for Sharecast.com.