Polar Capital  

Polar Capital reveals approach to external research

Polar Capital reveals approach to external research

Polar Capital funds will bear the cost of all core waterfront written research consumed by its managers.

For certain strategies where the consumption of specialised research is regarded as critical to the investment process, Polar Capital is in late stage discussions with these funds to pay or contribute to such costs.

In a statement published today (11 December) Polar Capital stated fund prices, income payments and performance figures have always been shown and paid net of fund fees, which includes the cost of external research.

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Commenting on the approach to research under Mifid II, Gavin Rochussen, chief executive of Polar Capital, said: "We have undertaken a lengthy and detailed consultation process both internally and externally. 

"As a result of that process, Polar Capital will absorb the cost of all written waterfront research.  As a specialist active manager, certain of our strategies also rely on very specialised research that can be critical in helping our managers deliver alpha.

"Polar Capital is in late stage discussions with these funds to pay or contribute to such costs."

Polar Capital clarified what approach it would take to research costs as it announced assets under management (AUM), profits and the dividend for the six months to 30 September.

Assets under management had grown to £10.6bn for the six months to 30 September, compared with £9.3bn at the end of March 2017.

This increase was comprised of net inflows of £820m, while investment performance delivered £510m.

The Polar UK Value Opportunities fund grew to more than £400m during the six months.

Operating profit was £11.8m, compared with £8.5m for the same six months in 2016.

The dividend increased to 6p, from the previous 5.5p.

david.thorpe@ft.com