Polar Capital Holdings Plc · LSE:POLR
Polar Capital — FY2025 Earnings Presentation
40 slides from Polar Capital's earnings presentation, Jun 30, 2025
Slide 1: Polar Capital: Full Year Results 2025
Polar Capital: Full Year Results 2025 Gavin Rochussen, Chief Executive Officer Samir Ayub, Chief Financial Officer polarcapital.co.uk This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation.
Slide 2: Overview And Highlights
Overview And Highlights US-domiciled International Small Company Fund crossed $100m post Increased core year-end and adjusted Positive inflows in earnings allows a a challenging maintained environment dividend of 46p Strong inflows Core operating into our Emerging profit increased Markets & Asia 27%
Slide 3: Market Perspective
Market Perspective This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 3
Slide 4: Market Perspective
Market Perspective Global indices vs volatility 300% • Liberation day sell-off was short lived with a sharp equity recovery 250% • The VIX volatility index has retreated post early tariff 200% threats 150% • Certain sectors have been impacted more such as 100% healthcare 50% • European equities have
Slide 5: Fund Performance And Capacity
Fund Performance And Capacity This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 5
Slide 6: UCITS Performance
UCITS Performance Relative annualised fund performance against benchmark (since inception) 12% 10% 8% 7.0% 7.1% 5.5% 6% 4% 2.3% 2.7% 3.0% 1.8% 1.4% 1.0% 1.4% 2% 0.9% 1.1% 0.6% 0.8% 0.0% 0% -2% -0.1% -0.5% -0.8% -1.2% -4% 1st Quartile -6% -5.0% -5.3% 2nd Quartile -8% -6.3% 3rd Quartile -10% 4th Quart
Slide 7: Performance
Performance % of UCITS funds AuM by quartile ranking 100 • Macro headwinds have impacted short-term 90 performance but medium to long-term performance remains strong 80 % of UCITS AuM in the top two quartiles: 70 60 May 2025 May 2024 50 40 57% Over one year 94% Over one year 30 20 84% Over three yea
Slide 8: Performance Against Benchmarks
Performance Against Benchmarks % of UCITS AuM and funds that have outperformed benchmark to 30 May 2025 • High level of index concentration has been a headwind for active managers YTD* • Polar Capital’s Technology range has been particularly impacted where mega-cap index concentration has been extre
Slide 9: Capacity
Capacity Capacity as at 31 March 2025 • Total capacity across all strategies is £66bn Global Technology* • Total remaining capacity is £45bn Global Healthcare Sustainable Thematic Equity • Remaining capacity in funds that received material net inflows in the 12 months to 31 March 2025 is: Emerging M
Slide 10: AuM And Fund Flows
AuM And Fund Flows This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 10
Slide 11: AuM
AuM Current FY: Despite recent volatility, month-end AuM has held up well £bn 25 23.4 22.1 Average AuM CAGR 11.9%1 22.7 22.6 21.9 21.4 21.1 20.9 18.7 20 19.2 19.1 16.4 15 12.2 10 5 0 Mar-20 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Apr-25 June-25 AuM £bn Average AuM Past
Slide 12: Market Perspective
Market Perspective Global active equity funds calendar year net flows (US$bn)1 100 0 • The active equity industry has faced persistent headwinds, with net outflows in seven of the past eight years – -100 culminating in a record US$450bn withdrawn in 2024 -200 • Polar Capital has shown relative stren
Slide 13: Total Net Flows months to March 2025
Total Net Flows 12 months to 31 March 2025 £m 800 • In the twelve months to 31 March 2025, we delivered flat net flows of £12.3m 600 • Gross inflows remained healthy at £6.1bn, demonstrating sustained demand across several of our strategies and reflecting the strength of our client relationships 400
Slide 14: Gross And Net Flows By Strategy
Gross And Net Flows By Strategy 12 months to 31 March 2025 Net strategy flows Gross strategy flows £m £m 1,500 2,500 1,000 1,500 500 500 (500) - (1,500) (500) (2,500) Insurance Japan European Income North America Global Healthcare Melchior European Opportunities Global Technology*** European Small C
Slide 15: Monthly Net Flows
Monthly Net Flows Calendar Year-To-Date to 20 June 2025 Net monthly flows (excluding Corporate Actions) £m • Investor caution increasing amid ongoing volatility and global uncertainty 300 • Continued rotation into money market funds as perceived safe-haven assets 200 • Active equity outflows acceler
Slide 16: Financial Review
Financial Review This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 16
Slide 17: Financial Highlights
Financial Highlights YoY changes in statutory PBT £m 31 Mar 31 Mar Change 2025 2024 90 AuM and Revenue 80 1.5 Average AuM £22.9bn £19.6bn 17% -12.9 -2.7 Net management fees1 £178.3m £153.7m 16% 70 Net management fee yield1 78 bp 78 bp - -13.6 60 24.6 Profitability and other income 50 Core operating
Slide 18: Total Operating And Finance Costs
Total Operating And Finance Costs Disciplined approach to managing cost base YoY changes in total operating and finance costs Year to Year to £m Mar-25 Mar-24 165 £m £m Salaries, bonuses and other staff costs1 39.6 35.0 155 145 Core distributions2,4 50.6 42.8 135 1.8 13.6 Share-based payments3 5.0 3
Slide 19: Other Operating Costs And Exceptional Items
Other Operating Costs And Exceptional Items Year to Year to Year to Year to Mar-25 Mar-24 Mar-25 Mar-24 Other operating costs £m £m Exceptional items £m £m IT 7.7 7.3 Recorded in operating costs Rent and rates 5.1 4.6 Amortisation of intangibles 1.2 1.2 Professional fees 2.2 2.6 Impairment of intang
Slide 20: Cash And Seed Investments
Cash And Seed Investments Strong balance sheet 31 March 2025 31 March 2024 Total cash and seed investments of £159.1m Total cash and seed investments of £141.4m £m £m Cash and deposits 121.8 Cash and deposits 105.6 Seed investments 37.3 Seed investments 35.8 159.1 141.4 EM Stars US Mutual 5.0 EM Sta
Slide 21: Group Capital
Group Capital Strong balance sheet Year to Year to Capital allocation (£m) Regulatory Capital Mar-25 Mar-24 160 £m £m 134.4 135.9 Shareholders’ funds 134.4 135.9 140 Less: Regulatory deductions1 -12.3 -26.8 12.3 120 26.8 Capital after regulatory deductions 122.1 109.1 31.0 Less: dividend provision -
Slide 22: Dividend Payout And Policy
Dividend Payout And Policy £175.7m £169.4m £151.0m £141.4m £159.1m Total cash and investments 2025 Payout 70 50 • Total annual dividend maintained at 46p 45 60 40 • Payout ratio of 86% of adjusted total 56.0p earnings recognising the strength of the 50 62.2p 35 balance sheet and confidence of the 53
Slide 23: Strategy And Outlook
Strategy And Outlook This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 23
Slide 24: International Diversification
International Diversification Nearly 40% of total assets now held by overseas investors North America, Asia, 1.6% 1.0% • Disciplined, targeted overseas Other, 0.8% expansion – Focused on the U.S., South-East Asia, and seven key European markets with long-term growth potential Switzerland, 14.3% • Co
Slide 25: Growth With Diversification – Product Development
Growth With Diversification – Product Development A measured and focussed approach to product growth with pipeline of new ideas Product launches • Melchior European Absolute Return1 • Emerging Market • Melchior Global Stars Equity1 • European Small Cap • China Stars • Melchior European • EM Ex-China
Slide 26: New: International Small Company Fund
New: International Small Company Fund Strong support in first few months • Global Small Company Team based at our new Tampa office • International Small Company Fund launched in Dan Boston Maxine Mazan, CFA Lydia Yuan, CFA September 2024 as a US mutual fund Lead Manager, Researcher Researcher Resear
Slide 27: EM And Asia Strategies Now Third Largest By AuM
EM And Asia Strategies Now Third Largest By AuM Material inflows achieved during the financial year • Strong team of sector specialists with significant experience • Marketed globally: – Inflows received from across Pan-Europe and the Nordics Jorry Nøddekær – Established product wrappers available f
Slide 28: Dedicated Artificial Intelligence Fund
Dedicated Artificial Intelligence Fund Launched over seven years ago • AI theme to drive next stage of the technology growth cycle • Interest in the strategy remains high Xuesong Zhao Nick Evans Ben Rogoff Partner Partner Partner Experience: 27 years Experience: 18 years • New distribution agreement
Slide 29: Global Absolute Return: Strong Performance In Volatile Markets
Global Absolute Return: Strong Performance In Volatile Markets Provides further diversification for the business Rolling 12-month returns are positive 2025 YTD 89% of the time 4.55% The Polar Capital Sortino ratio 1.61 Global Absolute 2024 return Return Fund aims to 9.13% provide good, consistent Hi
Slide 30: Awards And Nominations
Awards And Nominations Third-party recognition European Pensions Awards 2024 Polar Capital Holdings Polar Capital Global Morningstar Awards for European Pension Awards Polar Capital Technology – Beyond Finance Insurance Fund – Investing Excellence 20251 2024 – Emerging Markets Trust – UK Investor Aw
Slide 31: CEO Succession
CEO Succession Orderly transition to take place Gavin Rochussen Iain Evans - CEO Designate • Gavin Rochussen to retire as CEO following • 30+ years of investment industry experience eight years at the firm • Joined Polar Capital in 2004 from Henderson • The Board conducted a comprehensive global Glo
Slide 32: Summary And Outlook
Summary And Outlook There remains a AuM recovered strong pipeline of quickly following interest in our recent market differentiated volatility funds Growing interest in our US Strong balance sheet domiciled enabled a maintained International total dividend of 46p, Small Company covered by adjusted O
Slide 33: Questions
Questions This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 33
Slide 34: Appendices
Appendices This presentation is for use with non-US professional investors only. Please refer to the Important Information at the end of this presentation. 34
Slide 35: Current Investment Strategies
Current Investment Strategies Global Technology AuM: £9.0bn Global Healthcare AuM: £3.5bn Global Healthcare Trust Established: 2001 Technology Trust Established: 2007 Healthcare Opportunities (UCITS) Typical number of positions: 60-85 Global Technology (UCITS) Typical number of positions: 25-80 Biot
Slide 36: Current Investment Strategies
Current Investment Strategies Emerging Markets & Asia AuM: £3.1bn UK Value AuM: £870m Emerging Market Stars (UCITS) China Stars (UCITS) Established: 2017 UK Value Opportunities Established: 2018 Asian Stars (UCITS) (UCITS) Typical number of positions: 30-100 Typical number of positions: 40-65 Emergi
Slide 37: Lipper Figures For Long And Alternative UCITS – As At 30 May 2025
Lipper Figures For Long And Alternative UCITS – As At 30 May 2025 1 Year 3 Years 5 Years Since AuM £m Percentile Percentile Percentile Inception 10* Japan Value (S JPY) 219 7 8 15 29/07/20161 6** Healthcare Opportunities (I USD) 1186 29 5 13 3/12/2007 22 Healthcare Blue Chip (I USD) 151 39 26 8 11/0
Slide 38: AuM Analysis
AuM Analysis AuM split by strategy Investor mix split by geography Long only 98.4% UK 63.2% Alternative 1.6% Europe 23.6% Asia 6.9% Open Ended funds 74.7% Nordics 4.6% Investment Trusts 22.6% North America 1.0% Segregated Mandates 2.7% Other 0.7% AuM split by investment team Investor mix split by ho
Slide 39: Reconciliation Of APMs To Reported Results
Reconciliation Of APMs To Reported Results Reclassification on 2025 2024 Interim 2025 reported consolidation of Reclassification Non-GAAP Non-GAAP results seed investments of costs results results £m £m £m £m £m Investment management and research fees 206.1 - - 206.1 176.4 Commissions and fees payab
Slide 40: Important Information
Important Information Polar Capital, 16 Palace Street, London SW1E 5JD House View: This document has been produced based on Polar Capital research and analysis and represents our house view. All sources are Polar Capital unless otherwise stated. Important Information: The information provided in thi
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