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 2026
Market and sector review
March was a challenging month for equity markets globally on the back of heightened geopolitical tensions which resulted in a spike in oil prices and a consequent increase in bond yields. Unsurprisingly, the energy sector performed especially well while sectors that historically correlate negatively to sudden rises in interest rates, such as consumer staples, industrials and healthcare, struggled.
Geographically, emerging markets and European stocks lagged their US counterparts, partly due to a stronger dollar and the view that the US economy is more self-sufficient in terms of energy requirements. As hinted above, the healthcare sector underperformed the broader market with pharmaceuticals, biotechnology, life sciences tools and services posting less negative returns relative to healthcare distributors, facilities, equipment and supplies.
Equity market performance during the month was shaped largely by developments in the Middle East. Following the 28 February US/Israeli strikes on Iran, the conflict continued through March and shipping flows through the Strait of Hormuz fell sharply, severely disrupting global energy markets. Brent crude rose by more than 60% over the month, while bond yields moved materially higher as investors reassessed the inflation outlook.
In response, many looked back to earlier oil shocks, including the 1973 Arab embargo, the 1979 Iranian revolution, the 1990 Gulf War and the 2022 Russia/Ukraine conflict, to see which playbook central banks might adopt this time. It became increasingly clear that the easing narrative which began to take hold last year is no longer intact. On 18 March, the Federal Reserve left interest rates unchanged while adopting a more hawkish tone as energy-driven inflation risks intensified. The following day, the ECB also stayed on hold, warning that the conflict had introduced both upside risks to inflation and downside risks to growth. For now, with no visibility on how long the conflict will persist or how quickly normal shipping can resume through Hormuz, central banks appear to be in risk-management mode, trying to balance inflation control against the danger of placing further strain on an already slowing global economy and softening labour market.
Against that backdrop, healthcare’s underperformance relative to the broader market may seem counterintuitive, given its reputation as a defensive sector. In practice, however, investors often treat healthcare as a bond proxy. When oil prices rise sharply and inflation expectations move higher, bond yields tend to increase which can weigh on both bond prices and other yield-sensitive sectors such as healthcare. That said, if the current inflation shock proves predominantly supply-driven and begins to undermine growth, prompting more stagflationary concerns, sentiment could shift. In that environment, healthcare’s resilient earnings profile and relative defensiveness may once again become more attractive to investors.
Fund performance
The Company’s net asset value (NAV) declined by 8.2% in March, behind the benchmark, the MSCI All Country World Net Total Return Health Care Index, which was down 6.4% for the month (both figures in sterling terms).
Positive relative contributors relative to the benchmark in March were BridgeBio Pharma, Cytokinetics and Nuvalent.
BridgeBio Pharma performed strongly, thanks to a combination of good commercial momentum as shown in its Q4 earnings report and positive data from one of its pipeline drugs, BBP-418, a potential first-in-class treatment for limb-girdle muscular dystrophy – a rare genetic disease that causes muscle weakening and wasting. Additionally, there were favourable legal developments which meant generic competition from a competitive asset might be delayed
Cytokinetics and Nuvalent both performed well without delivering any thesis-changing news but were caught up in the positive sentiment driven by encouraging pipeline developments and M&A.
Negative relative contributors included Centene, Johnson & Johnson and Chugai Pharmaceutical (Chugai).
At a broker conference, US managed care company Centene reiterated full-year 2026 guidance, but the weakness was caused by a comment that the company is seeing higher utilisation patterns in specialty pharmacy, an observation isolated to the company’s silver-tier plans.
The Fund had no exposure to Johnson & Johnson, a stock that continues to rerate given its defensive qualities. Chugai’s disappointing performance was driven by the company’s decision to discontinue the development of a pipeline asset for two rare muscular disorders, spinal muscular atrophy and facioscapulohumeral muscular dystrophy.
We initiated a position in Xenon Pharmaceuticals, a US-based biotechnology company, following the release of positive top-line data for its lead asset for the treatment of focal onset seizures, the most common type of epilepsy seizure.
Outlook
Geopolitical unrest in the Middle East and the inflationary implications of a spike in energy costs has created a great deal of uncertainty for investors. Importantly, however, that uncertainty has created exciting investment opportunities, with current valuations disconnected from the strong fundamentals. The innovation cycle remains very strong and M&A is picking up, with several multi-billion-dollar deals announced since the turn of the year.
The demand for healthcare products and services continues to be robust, with emerging markets especially buoyant. Last, but not least, policy fears in the US appear to be easing which is a significant positive that should not be overlooked.
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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