Polar Capital launches £15m buyback as AUM hits new high

(Sharecast News) - Polar Capital has announced plans to launch a £15m share buyback after a strong third quarter, as a solid fund performance and net inflows pushed assets under management to a new record high. AUM rose 6% over the three months to 31 December to £28.4bn, up from £26.7bn at the end of the September and £21.4bn at the end of the previous fiscal year.

The increase was driven by £1.7bn of fund performance and market movements and £149m of net inflows.

Performance fee profits, crystallised at the end of the period, amounted to £16m. This compares with accruals of £15m at the end of September 2025 and £7.9m crystallised in the prior year.

"It was a positive end to 2025 for the firm. We delivered net inflows during the quarter and performance fees crystallised above the level accrued at the end of September 2025 and the prior year," said chief executive Iain Evans.

"The elevated performance fee profits have supported the board's decision to announce a £15m share buyback programme, signalling confidence in the business and reflecting our disciplined approach to capital allocation, as well as our focus on delivering long-term value for shareholders."

Looking ahead, Evans said that the external environment is likely to remain uncertain in the near term, but was upbeat about the firm's prospects.

"Encouragingly, client engagement has improved, and the new business pipeline is strengthening. While visibility on the timing and scale of inflows is limited, our priority for 2026 is to convert gross demand into durable net inflows through consistent investment performance, excellent client service and disciplined commercial execution," he said.