Polar Capital Holdings plc (POLR) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

I'm Gavin Rochester, Chief Executive of Polar Capital. I, alongside our Chief Finance Officer, Chief Investment Officer, and the Global Head of Distribution will present an overview of our annual results to the 31st of March, 2024. It has been another challenging period for active equity managers, with widespread outflows reported by many of our peers. Polar Capital has not been immune to this. And across the financial year, we have also seen net outflows. However, in Q1 of 24, we witnessed net inflows into our range, the first quarter of net inflow in eight, and this trend has continued into Q2. Having passed its five-year anniversary during the reporting period, our Emerging Markets Stars Fund has seen strong inflows with the team receiving over £400 million into their range of funds. Unsurprisingly, given the breakthrough in artificial intelligence seen last year and the resulting performance of technology stocks, we've seen renewed interest into our technology franchise, with the Artificial Intelligence Fund also seeing net inflows. Asset under management ended the financial year at £21.9 billion, an increase of 14%, and AUM has now grown further to £22.8 billion on 14 June, an 18% increase from April last year. Despite net outflows across the period and inflation increasing our cost base, our diluted earnings per share ended the year just 1% lower. With performance and investor demand having improved, we remain confident on the outlook and therefore are able to hold the full-year dividend at 46p. Markets continue to prove fascinating, with an ever-changing macroeconomic and geopolitical backdrop continuing to affect investor sentiment. For now, volatility remains subdued, inflation has abated, and interest rates look to have peaked, with central banks now easing...