Polar has seen a material benefit from strong asset price performance in growth segments (technology, in particular) during cal’Q3. This has driven a material beat vs SCMe AuM. In addition, flows were better with a modest £58m outflow and most notably a £226m inflow into the Global Tech strategy. There is an accrued £15m net performance fee as a result. We make a material 20%+ upgrade to core (management fee) EPS as a result of the AuM variance heading into H2. We exercise caution given potential retracement following recent effervescence. We remain at BUY, acknowledging improving flow momentum and strategic execution.
