Polar Capital reports 21% operating profit rise as net inflows reach £472m

Polar Capital has today (18 November) reported operating profit up 21% to £27.3m (30 September 2023: £22.5m) and assets under management (AUM) at 30 September 2024 up 4% to £22.7bn (31 March 2024: £21.9bn) and at 8 November 2024 £23.9bn.

Net inflows were £472m during the period (six months to 30 September 2023: outflows of £581m) while profit before tax was up 9% to £23.1m (30 September 2023: £21.1m).

Basic earnings per share up 7% to 17.3p (30 September 2023: 16.2p) and adjusted diluted total earnings per
share up 42% to 24.5p (30 September 2023: 17.2p)

Gavin Rochussen (pictured), chief executive officer, said: “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. This has seen our AuM 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 2024. Notable successes have been the Emerging Markets & Asia strategies which saw net inflows of £929m over the period following strong investor demand.

“Performance has also been pleasing. Across the Polar Capital UCITS fund range, which represents 75% of the Group’s
total AuM, 90% of AuM is in the top two quartiles of the appropriate Lipper peer group over one year to 30 September
2024. 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 2024, 91% of AuM is in the first quartile against the Lipper peer group.

“The Healthcare suite of funds has performed well against benchmark and against the Lipper peer group and has
attracted net inflows into the Healthcare Opportunities and Biotech Funds of £144m and £77m respectively.
“The Polar Capital Global Insurance and Japan Value Funds delivered strong returns, with respective net inflows of
£29m and £22m over the past six months.

“Relative to the comparable six-month period to 30 September 2023, average AuM increased by 15% from £19.4bn to
£22.4bn. The increase in average AuM resulted in net management fees increasing by 15% to £87.6m from £76.5m in
the comparable prior six-month period.

“Core operating profit increased by 21% to £27.3m compared to the comparable prior half year.

“The Board has declared an interim dividend of 14.0p to be paid in January 2025 (January 2024: 14.0p).

He further said: “There has been further recognition of our specialist funds with Polar Capital winning the Emerging Markets Manager of the Year Award in the European Pensions Awards 2024. Given the strategic focus on growing the client base in the US, it is pleasing that Morningstar have upgraded the Emerging Markets Stars US 40 Act mutual fund from a Bronze to a Silver rating, driven by increased conviction in our investment team.

“In September 2024, we were pleased to announce the launch of the US domiciled Polar Capital International Small Company Fund with Dan Boston as Lead Manager. International expansion remains a key part of our ‘Growth with
Diversification’ strategy and this launch represents an important strategic milestone.

“Looking ahead, visibility on actively managed equity flows for the industry remains 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