Polar Capital assets under management rise

27th Jun 2024 15:51

(Sharecast News) - Polar Capital announced 14% growth in assets under management (AuM) for the financial year ended 31 March on Thursday, to £21.9bn.

The AIM-traded company said that positive performance led to the maintenance of a total dividend per share at 46.0p.

Despite the overall growth in AuM, the average AuM for the year remained flat at £19.6bn.

As of 14 June, AuM further increased to £22.8bn, supported by net inflows of £197m from 1 April to 14 June.

Core operating profit saw a slight decline of 6% to £44.8m, down from £47.9m in the prior year.

However, profit before tax increased 21%, reaching £54.7m compared to £45.2m in the 2023 period.

Basic earnings per share rose 15% to 42.3p, while adjusted diluted total earnings per share slightly decreased by 1% to 44.0p.

The board declared a second interim dividend of 32p per share, consistent with the prior year, bringing the total dividend for the year to 46p per share.

It will be paid on 2 August, with an ex-dividend date of 4 July and a record date of 5 July.

"During the financial year, Polar Capital benefited from its differentiated funds range of thematic and sector focused strategies, particularly those with exposure to technology and its related sectors," said chief executive officer Gavin Rochussen.

"This gave rise to a 14% increase in assets under management from £19.2bn to £21.9bn over the year.

"The positive net inflows of £56m as previously reported in the March 2024 quarter have continued in the current quarter with net inflows of £197m in the period 1 April to 14 June."

Rochussen said the outlook was more constructive for risk assets such as equities with a continuing reduction in global inflation, interest rates peaking and central banks poised to ease monetary policy.

"Polar Capital has active, specialist and differentiated thematic, sector and regionally focused fund strategies with compelling long term performance track records and significant remaining capacity.

"While there remains geopolitical risk and a significant portion of the developed world population facing elections this year, our performance-led culture, strong balance sheet and improving sentiment for equities positions us well to continue performing for our clients and shareholders."

At 1605 BST, shares in Polar Capital Holdings were up 4.05% at 564p.

Reporting by Josh White for Sharecast.com.