Polar Capital profits jump 81% but CEO Rochussen warns on reduced risk appetite

AUM increased by £2.7bn

Polar Capital's core profits increased by 81% in the six months to end of September from £12m for the same period last year to £21.7m, after the group's healthcare fund managers took the decision to crystallise their preference shares earlier this year.

The crystallisation, which means the managers forego their profit share in return for receiving Polar Capital equity, took effect from 1 April 2018, but was announced to the market in October. As a result, the managers' profit share cost has been reduced over the six-month reporting period. The statement explained further: "The initial crystallisation value is to be satisfied by the issue of up to 4,060,074 shares in three tranches which can be adjusted downward if profitability of the Healthcare Opportunities fund and Polar Capital Global Healthcare Trust decline. "Based on the re...