Polar Capital (POLR) H1 2026 earnings summary

Executive summary

• Assets under management (AuM) reached a record £28.4bn by early November 2025, up 25% year-over-year, despite net outflows concentrated in Q1.

• Leadership transition to a new CEO was completed smoothly, with a focus on continuity, growth, and specialist, high-conviction strategies.

• Strategy centers on scaling core strengths, selective diversification, and leveraging a strong international distribution footprint, especially in the U.S. and Asia.

• Fund performance improved, with 68% of UCITS AuM in the top two quartiles over one year and 85% over five years.

• Investment trusts remain a core business component, representing about a quarter of total AuM.

Financial highlights

• Adjusted diluted total EPS was 21.9p, down 8% year-over-year; basic EPS rose 22% to 21.1p; profit before tax increased 21% to £27.9m.

• Interim dividend maintained at 14.0p, representing a 77% payout ratio of adjusted core earnings.

• Net management fees were £86.8m, with fee yield at 75bps due to anticipated fee compression and product mix changes.

• Core operating profit was £25.1m, down 8% year-over-year; core operating profit margin at 29%.

• Total operating costs decreased 6% to £63.4m, reflecting the absence of prior year exceptional costs.

Outlook and guidance

• The macro environment remains uncertain and volatile, but the business is positioned to scale through differentiation and maintain margin discipline.

• Performance fee profits for the year are tracking at £15m, to be crystallized at year-end.

• Expectation of continued fee margin contraction at 1-2bps per year over the medium term.

• Focus on converting strong gross demand into durable net inflows, with a strengthening pipeline and rising investor interest, especially in technology, healthcare, and smart energy.

• Dividend cover is a priority, with strong balance sheet support for maintaining payouts.