Polar Capital: Profit jumps as boss departs
Asset manager Polar Capital reported a surge in profit for the latest financial year but a tough final quarter and the threat of market volatility lingered over results.
The London-listed firm recorded a 27 per cent jump in core operating profit to £56.7m for the year ending March 31 2025.
Pre-tax profit dipped six per cent to £51.6m, which the asset manager said was due to the recognition of a £13.6m impairment charge relating to goodwill and intangible assets.
Whilst Polar’s final year headline figures remained upbeat, its results were overshadowed by the woeful market conditions that took a chunk out of the firm’s bottom line for the beginning of 2025.
“For Polar Capital, the financial year started with a resilient US economy and stubborn levels of inflation pushing out the prospect of interest rate cuts, before ending with the US-led trade tariffs and heightened market uncertainty,” said Chair David Lamb.
Assets under management decreased two per cent over the year to £21.4bn, which the firm cited “primarily due to negative market movements in the final quarter”.
Asset managers have been hit by President Donald Trump’s ‘Liberation Day’ levies and the White House’s trade offensive.
Polar’s assets under management dropped over £2.4bn in the final quarter, almost entirely due to £2.3bn of investment losses.
Polar boss to exit
City brokers slashed Polar’s target price on the back of the losses, with Peel Hunt reducing it to 475p from 665p, though keeping it as a buy, and Panmure Liberum to 500p from 600p.
Gavin Rochussen, Polar’s chief executive, said: “The momentum for active managers shifted sharply as we entered calendar year 2025, when volatility returned.
“In the first calendar quarter of 2025, global investors became more risk-averse – spooked by the prospects of a renewed trade war and other uncertainties. A swift pivot to risk-off sentiment led to outflows for active funds, as money-market funds and gold attracted inflows as safe havens.”
Rochussen also confirmed he would hand over leadership to Polar’s global head of distribution at the asset manager’s annual general meeting in September.
He said: “Given the diverse range of differentiated investment strategies and the solid leadership foundation, I am confident that Polar Capital has the attributes to continue to prosper and grow.”