Polar Capital (POLR) H2 2026 earnings summary

Executive summary

• Achieved record year-end AUM of £30.6bn, up 43% year-over-year, with strong investment performance and demand for specialist strategies, especially in technology and AI; AUM reached £44.7bn by June 2027.

• Positive net inflows of £902m for the year, with Q4 net inflows of £1.4bn and momentum continuing into the new financial year.

• Adjusted diluted EPS rose 10% to £0.578; full-year dividend maintained at £0.46; ongoing £15m share buyback initiated, 71% complete by June 2027.

• Strategic focus on scaling differentiated specialist strategies, deepening UK/Europe distribution, and selective overseas growth, particularly in Asia and the US.

• 74% of UCITS AUM ranked in the top two quartiles over one and three years, and 85% over five years, supporting growth.

Financial highlights

• Net management fee revenues increased 10% year-over-year to £197m, with average AUM up 14% to £26bn.

• Core operating profit rose 11% to just under £63m; core operating margin steady at 32%.

• Performance fee profits doubled to £16m; adjusted diluted EPS up 10% to £0.578.

• Total operating costs (excluding exceptionals) increased 15% year-over-year, mainly due to variable compensation linked to performance.

• Cash and seed portfolio at £177m as of March 2026.

Outlook and guidance

• FY 2027 average AUM expected at £39bn for H1, with net management fee yield to hold at 76bps, supported by high-margin strategies.

• Core operating margin for FY 2027 projected in the 38%-40% range after planned investments in distribution and technology.

• Ordinary dividend for FY 2027 expected to be at least £0.46, with potential for additional returns via specials or buybacks.

• Focus remains on converting strong gross demand into durable net inflows and maintaining investment performance.

• Active equity headwinds persist, but broadening markets and elevated dispersion support specialist active management.