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 28 August 2026
Market and sector review
Global equity markets delivered positive returns in August, led by the energy, materials and technology sectors. Energy and materials were buoyed by higher commodity prices, in particular oil, gold and copper. Meanwhile, a rally in software stocks coupled with NVIDIA’s strong second quarter (Q2) results allayed some fears about AI infrastructure spending and reignited interest in technology.
Healthcare also outperformed the broader market. Within the sector, healthcare technology, biotechnology, life sciences tools and services, and healthcare equipment were the strongest performing subsectors. Healthcare services, managed healthcare and healthcare supplies had a more challenging month.
Slowing momentum in the real US economy, combined with persistent inflationary pressures, presented a conundrum for policymakers, with the two forces pulling the Federal Reserve (Fed) in opposite directions. Payroll growth has stalled: July showed a loss of 23,000 jobs. The headline overstates the deterioration, however, given the labour force is shrinking as immigration curbs bite. The breakeven rate of payroll growth has therefore fallen sharply and the market is now closer to a ‘low-hiring, low-firing’ equilibrium than to genuine demand weakness which would be disinflationary.
Growth also decelerated but remains robust, with solid consumer spending and artificial intelligence (AI)-driven equipment investment offsetting falling government outlays and a widening trade drag. Inflation, meanwhile, is proving sticky. The combination of resilient economic growth, a steady labour market from a demand perspective and stubborn inflation meant that bond yields, especially long-dated ones (those maturing further into the future), moved higher in August. The announcement that the Treasury was doubling its buybacks of long-dated bonds provided only a brief respite, with yields falling on the day. That said, at the Jackson Hole meeting on 28 August, Fed Chair Kevin Warsh underlined his commitment to bringing inflation down and suggested interest rates may need to rise in the coming months. For now, equity and bond markets will remain hostage to the Fed's next move: will it hold rates steady and hope a slowing economy is enough to bring inflation down or will it raise rates to curb inflation and risk pushing the economy close to recession?
We were encouraged to see healthcare stocks outperform in August despite the higher-yield environment and we believe three factors contributed to the sector's positive relative performance. First, a continuation of the rotation away from AI-driven sectors, especially in the early part of the month; second, a Q2 earnings season that was generally strong for healthcare companies; and third, excitement generated by the announcement that a personalised cancer ‘vaccine’, intismeran autogene, developed by Moderna and Merck & Co*, delivered encouraging Phase 3 (i.e. late-stage clinical trial) results in combination with Keytruda in the adjuvant melanoma indication – patients whose melanoma has been removed surgically and who then initiate therapy to reduce the risk of recurrence. The news added over $80bn in market capitalisation between the two companies involved. It also had a favourable halo effect not just on biopharma companies but also those that benefit indirectly such as life sciences tools and services.
Company performance
The Company’s net asset value (NAV) rose by 3.0% in August, behind its benchmark, the MSCI All Country World Net Total Return Health Care Index, which was up 3.6% for the month (both figures in sterling terms).
Positive contributors relative to the benchmark in August were Innovent Biologics, Insmed and Hansa Biopharma.
For Insmed, strong sales of recently launched Brinsupri, for a respiratory condition, re-established investors' confidence in the launch and the drug’s long-term potential. Insmed's management also raised peak-sales expectations for Brinsupri.
Similarly, Innovent Biologics delivered a robust set of Q2 earnings but also disclosed mid-term guidance that was above consensus and, if delivered, would see the company's revenue roughly double by 2030.
There was no thesis-changing news concerning Hansa Biopharma, with the stock continuing to grind higher as investors begin to better understand the commercial opportunity for its main asset, Idefirix (a desensitisation therapy that enables kidney transplantation in highly sensitised patients), ahead of a possible US approval later in the year.
Negative contributors were CVS Health, Merck & Co and Apotex Health.
CVS Health sold off despite solid Q2 results as expectations were high and management highlighted possible headwinds to its pharmacy benefit management segment. The latter primarily related to a new business model and changes to the so-called 340B programme which enables qualifying facilities to buy outpatient drugs at steep discounts. The stock was also caught in the weakness of managed healthcare stocks which had meaningfully rerated in the previous months.
As noted above, Merck & Co rallied when it and Moderna disclosed that a Phase 3 trial had achieved its two goals in a specific group of patients: they went longer without their cancer returning and longer without it spreading to distant parts of the body. Though hailed as a ‘cancer vaccine’, intismeran is not a vaccine in the traditional sense, as it does not stop an individual developing melanoma in the first place. Rather, it is a personalised neoantigen (an abnormal protein found in cancer cells) therapy that is administered with Keytruda – a drug that prevents cancer cells from evading the body's immune system response – and should amplify Keytruda's effect. Despite the promising potential of this new way to treat cancer recurrence, we would caution that no detailed data has been released yet on the magnitude of the benefit of adding intismeran to Keytruda. Additionally, we would want to see whether similar results are borne out in cancer types that are less immunogenic than melanoma.
Finally, Apotex Health reported its first set of results as a public company. These were generally positive, but the outlook for the full fiscal year left some investors underwhelmed. Additionally, the company, based in Canada, was caught in the crossfire of an escalating trade dispute between the US and Canada.
Activity
We initiated new positions in Danaher and Stevanato Group during August.
A selloff following Q2 results gave us the opportunity to initiate a position in Danaher, one of the largest life sciences tools and services companies. With improving end markets and incoming management focused on execution, we see upside to revenue and earnings estimates, while the valuation is undemanding relative to peers.
Similarly, in our view Stevanato Group, a manufacturer of primary packaging for the biopharma industry, had a compelling risk/reward profile. Not only are the company's end markets improving, but we believe the market underprices its ability to deliver operating leverage on accelerating top-line momentum.
The positions were funded, in part, by an exit from Merck KGaA.
Outlook
We were pleased to see the healthcare sector perform well in August, both in absolute terms and relative to the broader market. In our view, this improvement rests on four factors. First, the Q2 results season itself was generally supportive, with healthcare companies broadly meeting or exceeding expectations. Second, the sector's fundamentals remain robust, underpinned by resilient demand, consolidation and healthy balance sheets. Third, the market rotation away from AI-driven sectors redirected investor attention towards areas of the market that had been overlooked. Finally, and perhaps most encouragingly, innovation is once again being rewarded.
Should healthcare companies continue to deliver earnings upgrades in the quarters ahead, we believe the sector is well positioned for a sustained period of outperformance. The combination of improving earnings momentum and undemanding valuations has historically provided fertile ground for a positive rerating.
* not held
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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