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 31 March 2025
Market and sector review
Global equity markets experienced a sharp downturn in March, following an already weak February. Much like the previous month, investors remained ostensibly risk-off. Though the tape was overall orderly and there was no sign of real capitulation or panic, equity outflows accelerated, with cyclical sectors or stocks at richer valuations being hit the hardest while safe havens like gold and credit were some of the biggest beneficiaries of the rotation.
Given its defensive qualities, the healthcare sector outperformed the broader equity market in March. Trading within healthcare reflected the same broader risk-off attitude: healthcare services and distributors performed strongly, together with managed care and facilities, while healthcare information technology, supplies, equipment and life sciences tools and services had a more challenging month.
With a series of policy proclamations from the White House, geopolitical and economic uncertainty was the key issue in the minds of investors in the US as well as globally. The new US administration has escalated its stance on imposing (or threatening to impose) tariffs on many of its trading partners, with the European Union, Japan and the UK becoming targets alongside China, Mexico and Canada. The full extent and longevity of these tariffs remain unclear, making it difficult to predict their long-term impact on the global economy.
Despite the Federal Reserve chair brushing off any tariff-induced inflation as “transitory”, many expect that such measures will indeed stoke inflation at a time when GDP growth is decelerating alongside weakening consumer sentiment and spending. Add to these dynamics the cuts in the federal workforce and the freeze of some grants directed by the newly created Department of Government Efficiency (DOGE), and the US labour market, which has so far been fairly resilient, now feels on shaky ground. Trump’s bet is that the ‘pain’ will be temporary and future tax cuts and deregulation will reverse the course of a US economy that seems to be heading towards a recession. Only time will tell if that is a winning bet.
Fund performance
The Company’s NAV decreased by 7% in March, behind its benchmark, the MSCI All Country World Daily Net Total Return Health Care Index, which was down 4.6% for the month.
Positive contributors relative to the benchmark in March were UnitedHealth Group, Fresenius and Stevanato Group.
There was no thesis-changing news for either UnitedHealth Group or Fresenius during the period, although they are considered to be defensive and not overly exposed to some of the broader macro issues such as tariffs and DOGE-related cost savings. Stevanato Group disclosed a solid set of 4Q24 financial results in early March and, more importantly, announced 2025 guidance that bracketed consensus expectations.
Negative relative contributors in the month were Novo Nordisk, Vaxcyte and Zealand Pharma.
Novo Nordisk continues to struggle, with the market questioning two things: (1) the company’s ability to recapture market share from cheaper, compounded versions of its key diabetes and obesity drugs in the US; and (2) the ability of its products and pipeline to go toe-to-toe with the competition. As a reminder, compounding pharmacies and compounders exist to fulfil unmet medical needs by providing patients with access to customised medications that are not commercially available, such as specific dosages and formulations.
Vaxcyte, a US biotechnology company that focuses on vaccines, disclosed disappointing Phase II results for its infant vaccine targeting pneumococcal disease. The program has not been discontinued, but the market is concerned about the lack of near-term catalysts and the company’s ability to compete in the infant market.
March was a frustrating month for Zealand Pharma, with the Danish biotechnology company signing an attractive licensing deal with Roche Holding for its key pipeline asset, petrelintide, for the treatment of obesity. With a $1,650m upfront payment, $1,225m in development milestones and up to $2,400m in sales milestones, the deal is transformative for Zealand Pharma. Unfortunately, the value of the deal quickly faded with the company caught up in the general biotechnology downdraft.
We started positions in AstraZeneca and Novo Nordisk, both mega-cap pharmaceutical companies trading at attractive valuations and with potential catalysts that could drive near-term multiple expansion and medium-term revenue momentum. The catalysts are in therapeutic areas such as Huntington’s disease, hypertension and oncology. The investments were funded by sales in Acadia Healthcare, DexCom and Roche Holding.
Outlook
March, much like February, was another challenging month. Tariff concerns aside, the Trump administration, or perhaps more accurately the DOGE, is implementing drastic staff cuts at the Health and Human Services Department (HHS) with the move being part of Secretary Robert F Kennedy Jr's strategy to shrink and reshape the nation's health agencies. Sadly, the cuts are extensive, from the Food and Drug Administration and the National Institutes of Health to the Centers for Disease Control and Prevention.
First and foremost, the cuts are incredibly unsettling and disruptive for the thousands of employees at risk – that should not be overlooked. However, the cuts are also creating anxiety for the companies and subsectors that could be directly exposed to the disruption, namely biotechnology and pharmaceuticals interacting with the FDA, companies developing vaccines and life sciences and tools companies that provide consumables, equipment and services into government agencies. We firmly believe that high-quality, rigorous science will prevail in the long run; we just have to be patient and battle through the volatility.
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