Polar Capital AuM Rises 6%, Shares Gain

Polar Capital Holdings (LON: POLR) shares rose over 4% on Friday morning after the company reported a robust increase in assets under management (AuM) and performance fees, leading to a new share buyback program.

The specialist asset manager's AuM reached £28.4 billion as of December 31, 2025, a 6% increase from £26.7 billion at the end of September 2025.

The AuM growth was fueled by £1.7 billion in positive fund performance and market movements, along with £149 million in net inflows. These gains were partially offset by £62 million in fund closures and a £116 million return of capital following investment trust corporate actions.

Open-ended funds saw AuM rise to £21.366 billion, while investment trusts increased to £6.482 billion and segregated mandates reached £539 million. Net flows into open-ended funds totaled £233 million, but investment trusts experienced net outflows of £115 million.

The company's net performance fee profits, after staff allocations, reached £16.0 million for the nine months ending December 31, 2025. This surpasses the £7.9 million recorded for the entire previous fiscal year. These figures exclude £1.6 million of net performance fee distributions deferred for accounting purposes.

This strong performance has enabled the board to announce a £15 million share buyback program. According to Chief Executive Iain Evans, this signals confidence in the business and is reflective of Polar Capital's disciplined approach to capital allocation.

Net outflows, excluding fund closures, were observed in October (£9 million) and November (£138 million), but a significant reversal occurred in December. Ten investment teams recorded net inflows totaling £296 million across various strategies during the final month of the quarter.

Performance fee profits were primarily generated by the Biotech, Healthcare Opportunities, and Convertible Bond funds. Contributions also came from the Artificial Intelligence, Healthcare Blue Chip, and Japan Value funds.

Polar Capital navigated a challenging environment for active equity managers in 2025. Two-thirds of the company's strategies outperformed their respective benchmarks, with notable results in Convertible Bonds, Technology, Healthcare and Biotech, Japan Value, and Smart Energy. The company also completed three successful investment trust corporate actions.

CEO Iain Evans commented, “Encouragingly, client engagement has improved, and the new business pipeline is strengthening.” He further stated that the company's priority for 2026 is to convert gross demand into durable net inflows through consistent investment performance, excellent client service, and disciplined commercial execution.

Despite the uncertain external environment, Polar Capital believes specialist firms like theirs are well-positioned. The company remains focused on adapting, developing, and growing its business.