Specialist boutique Polar Capital (POLR:AIM) reported a forecast-beating 8% rise in Q4 assets under management (AuM) to £30.6 billion.
The active asset manager also insisted it entered the new financial year with ‘positive net inflow momentum’, despite heightened geopolitical uncertainty and ongoing market volatility.
Shares in the company jumped 7.1% to a four-year high of 680p on the news.
Inflows top £1.4 billion
In the quarter to 31 March 2026, Polar Capital’s AuM grew thanks to net inflows of more than £1.4 billion and investment returns of £0.8 billion. This offset fund closures of £13 million.
Established in 2001, Polar Capital has 13 autonomous investment teams managing specialist portfolios with a thematic, sector, geographic, or financial instrument focus.
Encouragingly, the Q4 net inflows proved ‘broad-based’, with flows into its technology, healthcare and smart energy strategies especially strong.
Polar Capital’s Healthcare, Emerging Market Stars, Japan Value and Global Absolute Return funds all delivered positive net flows. However, outflows were recorded in the North American, Global Insurance and Asian Stars funds.
For FY26, AuM increased by 43% to £30.6 billon supported by the firm’s second consecutive year of positive net inflows.
Challenges ahead
Polar Capital said it entered 2026 with positive net inflow momentum, although the asset manager remains ‘mindful’ of the structural challenges facing the industry.
‘Inflows were strongest in January and February, before moderating in March following the escalation of conflict in the Middle East,’ said Polar Capital. ‘Encouragingly, positive momentum has continued into April to date.’
Heavy outflows continue for equity funds generally. But Polar Capital is bucking the trend, having seen positive net flows in Q4 and Q3.
While the Iran war could weigh on flows going forwards, Polar’s performance stands in stark contrast to Impax Asset Management (IPX:AIM). Its rival manager suffered an 8% Q2 AuM drop and expects to shed additional assets due to the exit tender process by investment trust Impax Environmental Markets (IEM).
Polar Capital is well aware it faces hot competition from low-cost passive strategies.
However, management insisted that as markets broaden and the pace of technological disruption accelerates, ‘the case for specialist active management is becoming increasingly compelling’.
At current levels, there is 25% upside to Cavendish’s 849p price target, which makes the shares well worth a look.
Read the press release here: https://www.polarcapital.co.uk/gb/individual/About-Us/Press-Releases/
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