Polar Capital Share Discussion Threads

[edmonda] 11/7/2024 06:43

"Strong start to FY25 with AUM up 7% in Q1"

AUM was up £1.6bn (+7%) over Q1 of FY25, from £21.9bn on 31 Mar 24 to £23.5bn on 30 Jun. Investment returns were strong over the quarter, contributing +£978m (+4.5%). Pleasingly, net flows continued to gain momentum, contributing +£644m, the second successive quarter of positive net flows (Q4 24: £+56m) - a marked turnaround from the net outflows which characterised calendar 2022 and 2023, when many investors rotated out of equities.

Our fundamental valuation remains 650p, with potential to tick up if AUM remains at or increases from current levels over the next quarter. Given its superior growth rate, niche strategic positioning, strong profit margins and strong balance sheet, we think Polar should trade at a substantial premium PER to most peers, but it does not and so we see potential for a re-rating.

Link to research:

[grahamg8] 11/7/2024 06:22

Broad based inflow of funds and expanding in USA sound good. Is it already in the price or will we see a step up in share price today?

[masurenguy] 11/7/2024 06:02

AuM Update

Polar Capital reports that as at 30 June 2024 its AuM was £23.5bn compared to £21.9bn at the end of March 2024, an increase of 7% over the quarter. In the quarter, AuM increased by net inflows of £0.6bn and a £1.0bn increase related to market movement and fund performance.

Gavin Rochussen, Chief Executive, commented: "There has been continued demand for a broad range of our funds during the quarter. Those in net inflows include the Emerging Market Stars (both the UCITS and Emerging Markets Stars 40 Act mutual funds), Asian Stars, Healthcare Opportunities, Global Insurance, Japan Value, Artificial Intelligence and UK Value Opportunities Funds, with combined net inflows of £944m across these funds in the quarter. Total AuM in the quarter increased by £1.6bn from £21.9bn to £23.5bn, a 7% increase. "The increase in AuM over the quarter of £1.6bn was the result of £644m of net inflows and £978m of fund performance and market movement."

[diviincomesearch] 08/7/2024 09:53

EM Stars team have onboarded a circa $700 million dollar mandate in June unless I’m missing something. Fund up to £2.1Bn.

[masurenguy] 06/7/2024 07:51

Q1 AUM due next Friday (12th).

[masurenguy] 04/7/2024 07:16

XD @32p today with payment due in 4 weeks time.

[masurenguy] 03/7/2024 05:52

Polar Capital upgraded to 'buy'

Polar Capital Holdings PLC (AIM:POLR) were given an upgrade by Deutsche Bank as the specialist asset manager shows "early signs of recovery". The rating was hiked from 'hold to 'buy' and the target price from 535p to 635p, compared to the last close price of 579p. Analyst David McCann said Polar's recent annual results "showed that momentum appeared to be turning more positive in the business, although we note that the drivers of this remain fragile". In the results, management articulated an ambition to get Polar to circa £30 billion of assets under management within three to five years, which the analyst think is "eminently achievable" given the mix of more mature funds and those with growth potential.

[mpage] 02/7/2024 21:56

What you say about McCann is largely true but you always knew where he was coming from and how to read between the lines. Eg 'paid to wait' = sell.

[eigthwonder] 02/7/2024 19:58

Like all analysts McCann's record is mixed - he was permanently bullish on STJ - and like all analysts his recommendations are heavily biased as to whether he is picking up an advisory cheque from a company.

[mister md] 02/7/2024 13:51

Might even cross 600p today ?

[mpage] 02/7/2024 11:36

@ MisterMD okay, thanks. Dave McCann is perhaps the most experiences of the financial analysts at Numis which was recently acquired by DB. I don't ever recall seeing any interesting research on asset mgrs from DB - hence my q.

Probably just means they've turned less negative on net outflows and upped the estimates a bit. . . . although last year's perf fee was atypically high.

[mister md] 02/7/2024 11:16

mpage, no idea, it came up on l-se news feed this morning:

LONDON BROKER RATINGS: Deutsche Bank cuts Quilter, ups Polar Capital
Tue, 02nd Jul 2024 09:47 Alliance News

[mpage] 02/7/2024 11:00

@Mister MD - do you happen to know whether this came from Numis within DB? - David McCann?

[mister md] 02/7/2024 08:56

* Deutsche Bank raises Polar Capital to 'buy' (hold) - price target 635 (535) pence

[edmonda] 01/7/2024 11:51

Video recording of Investor Presentation (FY Results) - June 2024

Gavin Rochussen (Chief Executive Officer) and Samir Ayub (Finance Director) of Polar Capital Holdings held an Investor Presentation covering highlights of the Full Year period ended 31 March 2024. These included a 14% rise in AUM to £21.9bn, and a total dividend per share maintained at 46p.

Management discussed the improved investment performance helping to drive market share gains, provided a detailed Financial Review and highlighted the positive outlook of the business with net flows of £196m QTD to 14th June. The team also answered a range of questions from the viewing audience.

The video has been divided into chapters for ease of viewing, as below:
0:00:03 Overview & Highlights
0:01:40 Market Perspective, Fund Performance & Capacity
0:07:18 AUM and Fund Flows
0:11:46 Financial Review
0:22:41 Strategy
0:29:31 Summary & Outlook
0:30:44 Questions & Answers

Link to full video presentation:

[apad] 28/6/2024 20:16

So, could be a good buy first thing on ex div morning. 😊
apad

[melton john] 28/6/2024 16:55

It is apad, closed at 437 on the 13th Dec, opened 425.50 on the 14th to close at 443 with an intraday high of 446.50

This chart shows the trading for subsequent days, seems some people prefer the discount to the divi. It's a well traded share being on SETS with lots of AT trades.


free stock charts from uk.advfn.com

[apad] 28/6/2024 11:15

Excellent presentation.
I seem to remember that ex div didn't make much difference to share price last time.
Is that correct?
apad

[davethehorse] 27/6/2024 13:58

Markets unsure it seems

[edmonda] 27/6/2024 08:34

"A sector growth-leader with an 8.5% yield"

Link to research report:

FY24 saw a 14% rise in AUM to £21.9bn on 31 Mar 24. This was the second highest AUM increase among a London-listed peer group. Post year-end, Polar has recorded a further 4% increase in AUM to £22.8bn on 14 Jun 24.

Investment performance was the AUM booster in FY24, adding +£4.3bn or +23%, making Polar a runaway leader compared to other asset managers when it comes to investment returns. While its net flows were negative for the full year at -£1.6bn, this was around the median outflow rate of the peer group. And encouragingly, a return to positive, albeit modest, net flows was recorded in Q4 of FY24 (+£56m), with further positive net flows of +£197m in Q1-25 to date.

Polar started FY25 with an AUM level significantly higher than the average level of FY24, with further positive momentum in Q1-25. Absent any severe AUM pullbacks, this should translate to a solid increase in investment fees and core profitability in FY25.

We also think Polar’s track record will attract significant inflows over the longer term. It has been clear for some time that many investors’ decisions to keep reducing technology (and other equity) exposures after the valuation falls of 2022 have proved costly and resulted in them missing out on exceptional returns. Our fundamental value remains at 650p per share.

[carcosa] 27/6/2024 08:05

24 page note issued by Equity Development
www.equitydevelopment.co.uk/research/polar-capital-fy24-results

[dickiehh] 27/6/2024 07:26

Biggest positive for me is the AuM rising from 21.8 to 22.8 in last three months with, also with net inflows across all major asset classes - tech, healthcare, AI, energy.The performance of their funds are also beating benchmarks consistently which should attract more funds

[diviincomesearch] 27/6/2024 07:15

Great to see the dividend maintained and balance sheet looking strong. Nice chunk of performance fees helping push things along.

All bodes well for a stronger year now for both core earnings and performance fee potential which is the big one.

[masurenguy] 27/6/2024 06:05

Looking very good !

Group Audited Results for the year ended 31 March 2024

"It is pleasing that Polar Capital's Assets under Management grew by 14% over the year, from £19.2bn to £21.9bn and given the positive outlook of the business, the total dividend per share was maintained at 46.0p." Gavin Rochussen, CEO

Highlights

• Assets under Management (AuM) at 31 March 2024 up 14% to £21.9bn (2023: £19.2bn)

• Average AuM for the year remains flat at £19.6bn (2023: £19.6bn)

• AuM has risen further to £22.8 bn at 14 June 2024 with net inflows of £197m in the period 1 April to 14 June 2024

• Core operating profit† down 6% to £44.8m (2023: £47.9m)

• Profit before tax up 21% to £54.7m (2023: £45.2m)

• Basic earnings per share up 15% to 42.3p (2023: 36.8p) and adjusted diluted total earnings per share† down 1% to 44.0p (2023: 44.3p)

• Second interim dividend of 32.0p per share (2023: 32.0p) bringing the total dividend for the year to 46.0p per share (2023: 46.0p). The dividend payment date is 26 July 2024, with an ex-dividend date of 4 July 2024 and a record date of 5 July 2024.

[diviincomesearch] 26/6/2024 19:21

Loaded up on here earlier. Expectations of divi maintained due to some small performance fees and AuM surging due to tech etc.

Hopefully the markets run well for the rest of the year and we can accrue some decent performance fees. Healthcare opps having a really good run due to GLP drugs exposure.