Q3 AUM +5%, forecasts up on performance fee jump
AUM grew £1.1bn or 4.9% over Q3 of FY25 (Oct 24 - Dec 24) to £23.8bn. This was on the back of a strong investment performance, contributing +£1.47bn despite a Dec 24 market pullback, and modest outflows of £0.26bn, mostly in Oct 24 when equity funds saw widespread outflows ahead of the UK budget. Net flows were positive over the nine months of FY25-to-date (+£0.21bn), and in calendar-2024, Polar was a standout leader among London-listed peers in attracting and retaining AUM (see page 2). The Forager fund closure reduced AUM by £0.10bn.Performance fee profits (net of staff allocations) jumped from the previous marked-to-market £0.7m, to £8.3m. As most PF’s crystallise at the end of December, this increase is now secured and not merely a mark-to-market estimate. FY25 forecasts have been upgraded accordingly.
Given market volatility, we maintain our fundamental valuation of 650p/share, and we refer readers to our November 2024 note ("H1-25 revenue and profits jump on higher AUM"), for details. We highlight on page 2 that Polar’s PER of 11.1 is only just above sector median, despite its relative outperformance.
Polar Capital Holdings is an investment management company providing professional and institutional investors a range of geographical and sector funds. Co. manages 25 funds and four managed accounts across a range of long only and alternative products. Co. has one class of business, being the provision of investment management and advisory services. As of Mar 31 2017, Co. had total assets under management of £9.27 billion.
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