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 October 2025
Market and sector review
Global equity markets delivered positive returns in October. While the artificial intelligence ‘super-cycle’ continued to influence overall market sentiment. The onset of the third-quarter earnings season also shaped performance across sectors: information technology, healthcare, consumer discretionary and utilities stocks performed well, while the real estate, materials and financials sectors lagged. Within healthcare, life sciences tools and services, distributors, facilities and pharmaceuticals had a strong month, whereas healthcare information technology, services, managed care and equipment were weaker.
In the US, the federal government entered a shutdown on 1 October, which limited the flow of official data during the month. Even so, the Bureau of Labor Statistics released the September inflation numbers which came below expectations, but there was no update on the state of the labour market. Despite the data ‘gap’, the Federal Reserve also proceeded with another 25 basis points interest rate cut, pushing the benchmark rate to its lowest in the past three years. Given the low visibility caused by the shutdown, the trajectory for future cuts looks unclear but the October decision clearly highlights the Fed’s concerns about a stalling labour market.
As it pertains to healthcare, October saw another deal being struck between the US administration and a pharmaceuticals giant, in this case AstraZeneca. The details of the deal was broadly similar to Pfizer’s, with the company committing to price-lowering measures in certain channels in the US, a multi-year US investment programme and, in return, securing a three-year delay to prospective Section 232 pharmaceuticals tariffs.
In parallel, the FDA issued draft guidance aimed at streamlining biosimilar development that, if finalised, should lower the time and cost to market and support biosimilar adoption.
Finally, several companies in the sector announced their Q3 earnings. By and large, life sciences tools and services posted good results as their underlying markets showed signs of a recovery. Facilities also had robust sets of numbers, delivering EBIDA growth above expectations, despite volume growth moderating.
Equipment, pharmaceuticals and managed care had more mixed results, driven more by company-specific dynamics.
Fund performance
The Company’s NAV increased by 6.7% in October, ahead of its benchmark, the MSCI All Country World Daily Net Total Return Health Care Index, which was up 5.4% for the month (both figures in sterling terms).
Positive relative contributors relative to the benchmark in October were Avidity Biosciences, Exact Sciences and AbbVie.
The strong performance from Avidity Biosciences was a result of it being acquired by Novartis in a deal worth roughly $12bn.
Not owning AbbVie had a positive impact to performance as the company reported Q3 results which failed to impress investors’ high expectations.
There was no direct news flow concerning Exact Sciences.
Negative relative contributors in the period under review were Intuitive Surgical, Penumbra and Encompass Health.
The lack of exposure to Intuitive Surgical was a drag to performance as the surgical robot manufacturer posted impressive Q3 results.
Penumbra’s share price struggled in the month despite presenting strong clinical data as investors worried about competition and a lack of updates from the FDA on the much-anticipated approval of a new product.
Encompass Health suffered a similar fate to AbbVie, with Q3 earnings failing to meet investors’ expectations.
During the month, we initiated positions in Nuvalent, West Pharmaceutical Services, CVS Health, Ionis Pharmaceuticals, Hansa Biopharma, Ottobock, and Boston Scientific.
Boston Scientific, a leading medical equipment manufacturer, and West Pharmaceutical Services, a specialist in pharmaceuticals packaging and containments, were bought with the view that both companies should experience positive earnings revisions and are offering a compelling opportunity given valuations and the growth on offer.
CVS Health, whose businesses span managed care, pharmacy benefit management and retail pharmacy, should, in our view, continue to deliver operating income growth, supported by pricing in its Medicare Advantage book and ongoing Pharmacy Benefit Management (PBM) momentum.
We are constructive on the pipelines at Nuvalent, Hansa Biopharma and Ionis Pharmaceuticals and in the latter’s case, we also believe the revenue opportunity from commercial assets is underappreciated.
Finally, we participated in the IPO of Ottobock, a leading orthopaedics technology manufacturer (prostheses and orthotics), which listed at a compelling valuation, with scope for high single-digit top-line growth and margin expansion.
These additions were funded by full exits from Avidity Biosciences, Abbott Laboratories, Edwards Lifesciences, Steris and Intuitive Surgical.
Outlook
With policy fears in the US appearing to ease and key regulatory bodies such as the FDA appearing to function as normal, the outlook for healthcare investing feels much brighter now than it has for some time. With the sector at a 25-year low in terms of its S&P 500 weighting and carrying attractive relative valuations, the outlook for delivering returns looks extremely compelling.
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
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