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 September 2026
Market and sector review
Global equity markets ended the month broadly unchanged from the end of August, but, under the surface, there was a wide dispersion of returns among sectors and market-cap sizes. AI-exposed sectors continued to march higher, while more cyclical and consumer-dependent sectors fell sharply, mainly because of rising energy prices and bond yields. High interest rates also hurt smaller capitalisation stocks, with the Russell 2000 Index lagging behind the S&P 500 by close to 5% in the month.
Against this backdrop, healthcare underperformed the broader market but was still the third best-performing sector, finishing behind only information technology and communication services, which the AI trade propelled higher. Within healthcare, life sciences tools and services, healthcare facilities, biotechnology and pharmaceuticals were the strongest-performing sub-industries, while healthcare supplies, equipment and services had a more challenging month.
September has forced a reappraisal of the softening-economy narrative in the US and confirmed that the tightening cycle is back. August payroll figures were strong and removed the labour market as an obstacle to hiking interest rates. Meanwhile August’s core consumer price index (CPI) ran slightly higher than expected, with gasoline prices up considerably as the Iran-driven energy shock feeds visibly into headline prices. Given this background, the Federal Reserve (Fed) duly delivered its first hike since 2023 in mid-September, a unanimous 25bps move to 3.75-4.00%, with the dot plot pointing to another this year. The more consequential move has been in bonds: the 10-year US Treasury yield broke above 5% for the first time since 2007 and the 30-year reached its highest since 2004, meaning the long end is doing much of the Fed's work.
In this context, the fact that many equity indices closed at or near all-time highs is perhaps baffling. However, the market’s leadership has been exceptionally narrow – AI earnings are still strong enough to absorb a hiking cycle and AI-linked mega-cap stocks moved higher, while everything else is quietly repricing for a higher-for-longer scenario. A durable de-escalation of the US-Iran war would seem to us to be a clear upside catalyst for equities and could see breadth extend beyond the concentrated AI-beneficiary cohort.
Company performance
The Company’s net asset value (NAV)1 declined 2.8% in September, behind its benchmark, the MSCI All Country World Daily Net Total Return Health Care Index, which was down 0.2% (both figures in sterling terms).
Positive contributors relative to the benchmark in September were Teva Pharmaceutical Industries (Teva), Agilent Technologies and Novo Nordisk (Novo)*.
Teva performed well during the month, with the company announcing positive early data for a drug in coeliac disease, providing encouraging commentary on its ability to execute on key priorities during a busy conference season, but also starting a direct listing of its shares on the New York Stock Exchange.
Like the rest of the life sciences tools and services subsector, Agilent Technologies rallied on renewed investor confidence that the industry’s end markets are improving and that AI could provide a tailwind by increasing lab activity.
Novo hosted an investor event that failed to reinject enthusiasm into the story. Some hoped the Danish giant would look at diversifying its business away from metabolic diseases but management instead reiterated its focus on obesity and diabetes. Not owning Novo helped the Company’s performance relative to the benchmark as Novo’s share price fell.
Negative contributors included Xenon Pharmaceuticals, Hansa Biopharma and Ionis Pharmaceuticals.
Xenon Pharmaceuticals disclosed it had submitted the application for its lead pipeline asset azetukalner to the FDA for focal onset seizures (or FOS, a type of epilepsy), but it also shared that it had to pause enrolment in its depression trials. Though the depression indications were not key to the thesis, the setback made some investors question the commercial implications for the FOS indication.
There was no material news concerning Hansa Biopharma, which was caught in the selloff of small-cap biotechnology stocks during the month.
Ionis Pharmaceuticals was weak after its partner Novartis announced the failure of pelacarsen, a drug being studied to reduce cardiovascular events.
Company activity
We initiated positions in Centene and AxoGen during September.
Centene is performing well across its business lines. It is on track to deliver a target profit margin of more than 5% in 2027 on its book of customers through the Affordable Care Act (ACA) Exchange. We also believe that better rates across its Medicaid2 segment should allow it to deliver strong growth in earnings per share over the next few years. Additionally, we see Centene as relatively well-positioned should the Democrats gain significant momentum in the mid-term elections, given the party has historically been supportive of access to care including the Medicaid programme.
AxoGen, a US medical device company, has the first and only US Food and Drug Administration (FDA)-licensed biologic nerve graft used to repair peripheral nerve damage. With an increase in Medicare3 outpatient reimbursement (the amount the US government health insurance programme pays for outpatient care) and a run of commercial coverage wins, we expect durable top-line growth and improving cashflow. Additionally, there is a large opportunity to expand the use of AxoGen’s technology beyond the current indications. We funded the positions, in part, by exiting Chugai Pharmaceutical.
Outlook
We believe healthcare is in a good place. By the end of September, the FDA had approved 45 novel drugs, a figure that compares very favourably with the 32 approved over the same period in 2025. Importantly, the approvals are in commercially attractive areas such as autoimmune disorders, pancreatic cancer, hypertension and obesity. The sector is also enjoying a period of positive earnings revisions and is forecast to deliver faster 2027 vs 2026 earnings growth than the broader market, a key driver of share prices rising faster than the wider market.
Last but not least, healthcare is showing leadership alongside technology from a technical perspective, with a large number of stocks recently hitting relative highs.
* not held
1The total value of all the investments and cash held less any borrowings divided by the number of shares.
2The US government’s health insurance for those on low incomes.
3The US government’s health insurance predominantly for those over 65.
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
Damiano Soardo
Historical Fact Sheets