This drop was due to a lower contribution from performance fees of just £14.1m, which reached a record high last year of £43.6m.
However, the firm experienced an increase in assets under management and core operating profit in the financial year, up 6% and 35% respectively.
As a result of the strong growth in core operating profit, which was £22.8bn at the end of March, the company increased its dividend by 15% to 46p per share for the entire year, with the second interim dividend being 32p and due to be paid on 29 July.
Gavin Rochussen, CEO of Polar Capital said: “investment performance has been more challenging than the prior year, when our portfolios benefitted from many of the so called “Covid-19 winners”.
Polar Capital’s investment teams tend to invest in more growth focused sectors and companies.
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Rochussen said AuM peaked in January 2022 at £25bn and then declined as markets sold off, hitting £22.1bn by the end of the financial year.
Technology funds have been hit particularly hard, with net outflows for the financial year at £1.3bn compared to £1.8bn of net inflows the previous year.
However, throughout the 12 months there have been net inflows of £873m into the sustainable Polar Capital Emerging Market Stars strategy, £561m into the Healthcare strategies, £143m into the alternative Convertible Bond funds, £85m into the European Opportunities fund and £120m into the recently launched Sustainable Thematic Equities strategy.