Devil in the detail of Asset Managers' latest AUM updates
Strong markets have buoyed most top-line AUM numbers. But there is huge disparity between high flyers and laggards.
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London-Listed asset managers mostly enjoyed solid AUM growth in Q2 of 2026, buoyed by strong investment returns.
The standout performance of Polar Capital was driven mostly by Technology strategies, and these were not just index-driven gains. It’s largest fund, the Global Technology Fund, returned +60% in the 3m to 30 Jun 26 compared to +33% for its benchmark Dow Jones Global Technology Index (12m: +132% v. +51%). And its fast-growing AI fund which targets opportunities from AI adoption across sectors with 55% invested outside of the IT sector, returned +45% in the 3m to 30 Jun 26 versus the +14% of its benchmark, the MSCI ACWI Index (12m: +99% v. 28%).
Across the sector, the net flow picture is far more varied however, with only two of the above asset managers (Polar and Ashmore) recording positive net flows in Q2 (far right column below). But the changes in recent net flow trends gives a more interesting insight than the absolute numbers of Q2 alone.
And in quite a few cases, those flow trends seem to be filtering into recent share price moves. The chart below starts on 1 Apr 26 so the first few weeks of the chart will include the release of Q1 AUM updates. The last couple of weeks of the chart will include Q2 updates.
Polar: It’s safe to say that during this period, Polar is a special case. As I recently wrote, its exceptional performance over the last few quarters (in terms of investment returns and net flows) has resulted in a step-change in scale, and I think investors are still getting their heads around the implications of that. Even though the share price has had a strong run, a forward PE ratio of around 9 is hardly hugely demanding.
Liontrust: Another strong recent share price run, but this is a recovery play. After a horrific few years of heavy outflows, and a massive share price fall since early-2022, net outflows seem to be easing. The share price has seen a nice uptick but that’s from a very low base. If flows turn positive and mostly stay there, there could be quite a bit further to run.
CLIG (City of London Investment Group): A decent share price run along with solid growth in AUM, but growth has been driven by investment returns (CLIG has an EM bias), with net flows persistently negative (although net outflows have slowed). I suspect we need to see a return to positive net flows before any further significant share price re-rating.
Jupiter: I’ve been bullish about Jupiter over the last couple of years. I think Matthew Beesley has done a great turnaround job. But recent AUM performance has been disappointing, with poor investment performance in Q1 and flows suddenly dropping into negative territory in the most recent quarter. The share price has taken a knock since the 23 Jul H1 results release. It might be a blip. We’ll have to wait and see. I’ll be updating and publishing my revised valuation soon (previous commentary below). Be sure to subscribe to receive the update.
Ashmore: Up and down as EM comes in and out of favour with seemingly shorter and shorter cycles as the Middle-East conflict ebbs and flows. But encouragingly strong net flows in two of the last four quarters. Ashmore’s future fortunes are hard to call as it does depend on EM sentiment, but it has a highly specialist, differentiated offering, and a very strong balance sheet. This one requires a deep-dive valuation which I’ll be doing soon.
Ninety One: Also has an EM bias although not to the same degree as Ashmore. Its recent quarterly AUM update doesn’t split investment returns and net flows but 7.1% quarterly AUM growth suggests that flows were probably slightly negative, with the share price ticking downwards after that update. This one certainly has growth potential, although shareholders seem to be in a ‘wait and see’ position. But most encouragingly, there has been tons of insider buying in recent years.
Impax. A wild few months. Shares fell 25% after its Q1 AUM update which showed heavier outflows than forecast and then jumped 21% on the Q2 AUM update which showed outflows slowing (outside of the Impax Environmental Markets exit tender offer). Once flows settle, I still reckon Impax could recover significantly. It’s a highly specialist, quality outfit. My latest research note here.
Premier Miton. No let up in the bad news yet with heavy outflows continuing. It’s cutting costs to minimise the impact of AUM falls, but it just has to get back to positive flows to re-build some scale. Not much else matters.
Note: at the time of publication, Q2 updates were not available for Schroders, Aberdeen, or Man Group.
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Disclosure: At the time of writing, Paul Bryant was a shareholder in a number of the companies mentioned in this publication, and covered Impax Asset Management, Polar Capital, and Mercia Asset Management, as an analyst on behalf of Equity Development Limited. Read Equity Development’s research on these companies by clicking on each. And please read this link for the terms and conditions of reading Equity Development’s research.