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 (page 2).
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Return to Polar Capital
