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Highlights

  • In H1FY25, Polar Capital's average Assets under Management (AuM) grew by 15.5% YoY, reaching GBP 22,400 million
  • Net inflows of GBP 472 million and market gains of GBP 323 million contributed to the growth in AuM
  • Core operating profit increased by 21.3% YoY, reaching GBP 27.3 million in H1FY25, driven by higher management fees
  • Polar Capital's AuM rose by 9%, reaching GBP 23.8 billion as of December 2024, fueled by inflows and market performance

 Polar Capital Holdings PLC (LSE:POLR) is a specialised fund management firm offering professional and institutional investors a diverse range of funds across various asset classes, regions, and sectors.

In the first half of the financial year 2025 (H1FY25), the company’s average Assets under Management (AuM) reached GBP 22,400 million, marking a 15.5% YoY increase from GBP 19,400 million in H1FY24. This growth was driven by net inflows of GBP 472 million, primarily into emerging markets and healthcare funds, and GBP 323 million from market gains. However, outflows from UK, European, and technology funds, along with competition from passive funds, partially offset these gains. Additionally, net inflows into fixed-income instruments also had an impact on the active equity fund flows.

Core operating profit for H1FY25 grew by 21.3% YoY, reaching GBP 27.3 million, up from GBP 22.5 million in H1FY24. This increase was driven by a 15% rise in net management fees, supported by the higher average AuM of GBP 22,400 million. However, total operating costs also grew by 22% YoY, largely due to higher variable compensation and a goodwill impairment charge. Despite these rising costs, strong fund inflows and improved fund performance contributed significantly to the increased profitability.

Recent Business Update

Polar Capital's AuM increased by 9% YoY, reaching GBP 23.8 billion as of December 2024. This growth was driven by GBP 0.2 billion in net inflows and GBP 1.8 billion from market movements and fund performance.

Company Outlook

Global inflation has been declining, despite ongoing uncertainty from conflicts in Ukraine and the Middle East. This has led many central banks to reduce interest rates, which could improve conditions for risk assets. However, investors remain cautious and many are holding high cash balances, especially UK-based investors following the Autumn Budget. Polar Capital remains confident in its ability to deliver long-term performance. This confidence is based on its diverse range of active, specialist, and thematic investment strategies.

Top 10 Shareholders

The top 10 shareholders of Polar Capital collectively hold approximately 43.16% of the total shares. Harwood Capital LLP leads with around 6.91% ownership, followed by BlackRock Investment Management (UK) Ltd. with about 4.99%, as shown in the chart below.

Stock Information

The stock has experienced a decline of approximately 13.90% over the past month and a decrease of around 15.76% in the last six months. Its 52-week low and high are GBX 420.00 and GBX 615.00, respectively. At present, the stock is trading below the average of its 52-week high-low range with a closing price of GBX 428.50 as of 10 March 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 10 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.