Polar Capital Global Healthcare Trust plc (the "Company"): The Company is an investment company with investment trust status and its shares are excluded from the Financial Conduct Authority’s (“FCA”) restrictions on the promotion of non-mainstream investment products. The Company conducts its affairs, and intends to continue to conduct its affairs, so that the exemption will apply.
The Company is an Alternative Investment Fund under the EU's Alternative Investment Fund Managers Directive 2011/61/EU as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018.
The Investment Manager: Polar Capital LLP is the investment manager of the Company (the "Investment Manager"). The Investment Manager is authorised and regulated by the FCA and is a registered investment adviser with the United States' Securities and Exchange Commission.
Key Risks
- Investors' capital is at risk and there is no guarantee the Company will achieve its objective.
- Past performance is not a reliable guide to future performance.
- The value of investments may go down as well as up.
- Investors might get back less than they originally invested.
- The value of an investment’s assets may be affected by a variety of uncertainties such as (but not limited to): (i) international political developments; (ii) market sentiment; and (iii) economic conditions.
- The shares of the Company may trade at a discount or a premium to Net Asset Value.
- The Company may use derivatives which carry the risk of reduced liquidity, substantial loss and increased volatility in adverse market conditions.
- The Company invests in assets denominated in currencies other than the Company's base currency and changes in exchange rates may have a negative impact on the value of the Company's investments.
- The Company invests in a concentrated number of companies based in one sector. This focused strategy can lead to significant losses. The Company may be less diversified than other investment companies.
- The Company may invest in emerging markets where there is a greater risk of volatility than developed economies, for example due to political and economic uncertainties and restrictions on foreign investment. Emerging markets are typically less liquid than developed economies which may result in large price movements to the Company.
Important Information
Not an offer to buy or sell: This document is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, and under no circumstances is it to be construed as a prospectus or an advertisement. This document does not constitute, and may not be used for the purposes of, an offer of the securities of, or any interests in, the Company by any person in any jurisdiction in which such offer or invitation is not authorised.
Information subject to change: Any opinions expressed in this document may change.
Not Investment Advice: This document does not contain information material to the investment objectives or financial needs of the recipient. This document is not advice on legal, taxation or investment matters. Prospective investors must rely on their own examination of the consequences of an investment in the Company. Investors are advised to consult their own professional advisors concerning the investment.
No reliance: No reliance should be placed upon the contents of this document by any person for any purposes whatsoever. None of the Company, the Investment Manager or any of their respective affiliates accepts any responsibility for providing any investor with access to additional information, for revising or for correcting any inaccuracy in this document.
Performance and Holdings: All data is as at the document date unless indicated otherwise. Company holdings and performance are likely to have changed since the report date. Company information is provided by the Investment Manager.
Benchmark: The Company is actively managed and uses the MSCI All Country World Index/Healthcare as a performance target. The benchmark is considered to be representative of the investment universe in which the Company invests. The performance of the Company is likely to differ from the performance of the benchmark as the holdings, weightings and asset allocation will be different. Investors should carefully consider these differences when making comparisons. Further information about the benchmark can be found at: www.mscibarra.com.
Third-party Data: Some information contained in this document has been obtained from third party sources and has not been independently verified. Neither the Company nor any other party involved in compiling, computing or creating the data makes any warranties or representations with respect to such data, and all such parties expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any data contained within this document.
Country Specific Disclaimers
United States: The information contained within this document does not constitute or form a part of any offer to sell or issue, or the solicitation of any offer to purchase, subscribe for or otherwise acquire, any securities in the United States or in any jurisdiction in which such an offer or solicitation would be unlawful. The Company has not been and will not be registered under the United States Investment Company Act of 1940, as amended (the “Investment Company Act”) and, as such, the holders of its shares will not be entitled to the benefits of the Investment Company Act. In addition, the offer and sale of the Securities have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”). No Securities may be offered or sold or otherwise transacted within the United States or to, or for the account or benefit of U.S. Persons (as defined in Regulation S of the Securities Act). In connection with the transaction referred to in this document the shares of the Company will be offered and sold only outside the United States to, and for the account or benefit of non-U.S. Persons in “offshore- transactions” within the meaning of, and in reliance on the exemption from registration provided by Regulation S under the Securities Act. No money, securities or other consideration is being solicited and, if sent in response to the information contained in this document, will not be accepted. Any failure to comply with the above restrictions may constitute a violation of such securities laws.
Further Information about the Company: Investment in the Company is an investment in the shares of the Company and not in the underlying investments of the Company. Further information about the Company and any risks can be found in the Company’s Key Information Document, the Annual Report and Financial Statements and the Investor Disclosure Document which are available on the Company's website, found at: https://www.polarcapitalglobalhealthcaretrust.co.uk
Fund Manager Commentary As at 30 June 2025
Market and sector review
Global equity markets continued the positive momentum seen in recent weeks, with the key drivers once again being information technology and communication services. As has been the picture for some time now, the broader market is still outperforming the sector. Within healthcare, a number of subsectors posted positive returns, with life sciences tools and services, distributors and services leading the way.
The key drivers behind the market’s upward trajectory are consistent with recent history, in terms of easing trade tension between the US and China and the hope that the US and the European Union will settle on a trade agreement that would apply a universal 10% tariff on many of its exports. The exception to this is that the EU is looking for commitments to reduce tariffs in key sectors such as pharmaceuticals, alcohol, semiconductors and commercial aircraft. Further impetus was given to the market when the Federal Reserve’s Chris Waller said in an interview that the Fed could cut rates as early as July. After a period of pause, dovish comments like Waller’s do not go unnoticed.
Robert F. Kennedy Jr (RFK), the US Secretary of the Department of Health and Human Services, created yet more headlines in June with his decision to dismiss the entire 17-member Advisory Committee on Immunisation Practices (ACIP). There were sensationalist headlines as a result, troubling for sure, but the ACIP meeting that followed at the end of June appeared to deliver on its objectives in terms of voting to approve an antibody for the prevention of RSV (respiratory syncytial virus) and reaffirming the recommendation for routine annual influenza vaccinations across a number of different criteria. As with the FDA, it appears that despite RFK’s interventions, the key areas of these regulatory bodies are functioning broadly as expected.
Fund performance
The Company’s NAV decreased by -0.7% in June, just behind the benchmark, the MSCI All Country World Daily Net Total Return Health Care Index, which was down -0.1% for the month.
Positive relative contributors relative to the benchmark in June were Bruker, UCB and Stevanato Group.
Bruker continues to recover from oversold conditions and a very depressed valuation, helped by easing fears on both tariffs and NIH funding.
UCB’s positive contribution was likely driven by two things. First, continued, strong prescription trends for its primary growth driver, psoriasis drug Bimzelx. Second is a view in the market that tariff tensions may be easing, an issue that has depressed UCB's multiple in recent months.
Contract manufacturer Stevanato Group responded positively to upbeat comments from management at a broker conference hosted in early June.
Negative relative contributors in the period under review were Zealand Pharma, NeuroPace and Exact Sciences.
Pressure on Zealand Pharma’s share price is being driven by a combination of a news flow/catalyst void and increasing competition in weight-loss drugs.
NeuroPace disclosed disappointing clinical data in the field of idiopathic generalised epilepsy, putting pressure on its share price.
There was no negative, thesis-changing news from Exact Sciences during the period with the market appearing to be concerned about both commercial execution and the quality of its pipeline of new screening technologies.
We added positions in Ascendis Pharma and Edwards Lifesciences.
Ascendis Pharma not only has an interesting technology platform that reduces the drug administration burden but also has commercialised assets that appear to be underappreciated.
Edwards Lifesciences is a medical device company that specialises in cardiovascular disease. With an established presence in the field of aortic valve replacement, the company is also benefitting from a new product launch cycle in areas such as mitral and tricuspid valves.
The new positions were funded, in part, by the sale of Japanese medical device company Sysmex.
Outlook
To offer an illustration of how out-of-favour the healthcare sector is, the spread in performance between XLV (a healthcare ETF) and the SPX (the S&P 500 index) during 2Q25 was one of the widest seen since the early 1990s. With valuation spreads also at historic highs, now is an interesting time for contrarians to be looking at the healthcare sector in a positive light.
The demand for products and services is not dissipating and the sector continues to innovate and find solutions for complex medical problems. Key long-term growth drivers such as emerging markets, prevention, consolidation and access and affordability are mostly intact. Assuming there are no leftfield or draconian updates from the US administration in terms of drug pricing or tariffs, the path to outperformance for the healthcare sector could become even clearer.
James Douglas
James studied medicinal chemistry and has worked in healthcare, in sales, research and fund management, throughout his career
Gareth Powell
Gareth worked at a pharmaceutical company and in academic laboratories before setting up the healthcare team in 2007
Historical Fact Sheets