Polar Capital posts strong growth as it expands

Polar Capital reported “strong growth” in an “extraordinary year in its audited results on Thursday, with assets under management up 71% year-on-year to £20.9bn.

The AIM-traded firm said average assets under management for the year ended 31 March was 18% higher than the prior year at £16.7bn, boosted by net inflows of £2.1bn and acquisitions of £1.7bn.

Pre-tax profit was up 49% at £75.9m, while core operating profit grew by 24% to £51.5m.

Basic earnings per share totalled 67.2p, up from 43.5p in 2020, while adjusted diluted total earnings per share were 53% firmer at 62.2p.

Polar Capital’s board raised its second interim dividend by 24% to 31p per share, bringing the total dividend for the year to 40p per share, up 21% year-on-year.

“The products we launched as part of our growth strategy have seen strong demand, especially UK value, now soft closed, and our sustainable emerging markets franchise, which has seen a very strong acceleration in demand,” said chief executive officer Gavin Rochussen.

“We have witnessed a rise in demand, internationally, for specialist thematic funds, which is a core area of strength for us.

“Our acquisitions, in the form of Dalton Strategic Partnership and the international value team from First Pacific Advisors in the US, have not only added capacity and broadened our product offering but strongly enhanced our international footprint through the addition of a SICAV and a US 40 Act investment vehicle.”

Rochussen said the firm also increased its client base in Asia, and added seven institutional mandates, including through some “significant” global distributors.

“This has resulted in a strong year for our financial performance.

“It has also been pleasing to see that we have performed well in a Broadridge survey of UK fund buyers, where Polar Capital has been ranked second for Brand Preference, second for Product Quality and fourth for Account Management, outperforming many of our established and larger peers.”

Looking ahead, Gavin Rochussen noted the company’s recent announcement of a new sustainable thematic team, which would be joining in September.

“This is a well-known, highly regarded team with a very strong performance record in an area with relatively few competitors.

“Demand for their products has been strong and we look forward to launching Polar Capital's first Article 9 funds as we enhance our environmental, social and governance capabilities.”

The company’s outlook was positive with its diversified range of fund strategies, digital marketing footprint and broader distribution reach, Rochussen said.

“We are confident that we can continue to deliver compelling returns for clients, growth in AuM and resultant increased total shareholder returns.”

At 0932 BST, shares in Polar Capital Holdings were up 2.99% at 855.82p.