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 27 February 2026
Market and sector review
February saw global equity markets edge higher, demonstrating similar characteristics to those seen in January. Defensive sectors such as staples and utilities performed well, as did cyclicals such as energy, industrial and materials. This was an unusual set of circumstances driven in part by the market’s desire to shun big technology stocks and invest in areas that will either benefit from investment in artificial intelligence (AI) infrastructure or will be immune from potential disruption from AI.
Against this backdrop, the healthcare sector outperformed the broader market with the most defensive subsectors, namely facilities, distributors and pharmaceuticals, leading the way. In contrast, healthcare technology and life sciences tools and services were heavily sold off, driven by fears AI could prove to be disruptive.
February 2026 will forever be remembered as the month that the potential power of AI, both as a constructive and as a disruptive force, impacted broad swathes of the market outside the immediate arenas of technology and software. The commoditisation of code and the growing role of AI as an alternative solution to managing and accessing data has created a significant overhang for industries that rely on application software. The same can be said of information services as new co-working tools from OpenAI and Anthropic appear increasingly competitive. Firm conclusions have yet to be drawn as to how AI will impact our personal and working lives, but there is little doubt that 2026 will be a year of enormous change.
Switching gears to healthcare, AI appeared to be a key driver behind subsector performance in the month. The pharmaceuticals sector continues to perform well given its defensive characteristics, but it is also a sector that is highly unlikely to be disintermediated by AI given its physical assets. Further, there is a school of thought that the biopharmaceuticals industry could benefit from AI in areas such as drug discovery, regulatory filings, supply chain and manufacturing optimisation, and the acceleration of new product launches via dynamic targeting and real-time marketing content. Distributors is another subsector that could leverage AI and automation to drive efficiencies and operating margin expansion and also to improve and simplify customer care. Last but not least, healthcare facilities could use AI to support better interactions with payers and vendors and also to improve scheduling, staffing and the running of operating rooms.
On a less positive note, the two worst performing subsectors in February were healthcare technology and life sciences tools and services, both of which have AI as an overhang on the long-term sustainability of their business models. In the case of technology, the commoditisation of code has created an overhang for companies that offer customer relationship management (CRM) services and/or a commercial solution. In the case of contract research organisations (CROs) there is a yet-to-be-proven concern that AI could mean less outsourcing and reduced demand for CRO products and services. Unfortunately, the potential upside from more clinical trials coming into the funnel and AI-driven efficiencies that could be a tailwind for the CRO industry’s margins are being heavily discounted, to the point of being ignored.
Fund performance
The Company’s net asset value (NAV) declined by -0.1% in February compared to 5.0% for its benchmark, the MSCI All Country World Daily Health Care Net Total Return Index (figures in sterling terms).
Positive contributors relative to the benchmark were Roivant Sciences, Chugai Pharmaceutical and Boston Scientific.
The key driver behind Roivant Sciences’ strong performance was positive Phase II data for a key pipeline asset, brepocitinib, for the treatment of cutaneous sarcoidosis (an inflammatory skin disease affecting c40,000 adults in the US).
Chugai Pharmaceutical appears to be responding to positive revisions in its ‘Royalties and other’ accounting line, which is being driven by increasing expectations for the royalty stream the company will receive from Eli Lilly’s oral obesity drug orforglipron.
The Fund had no exposure to Boston Scientific, a company that continues to struggle in the face of concerns that one of the company’s key growth drivers, atrial fibrillation, is starting to face competition and slow down.
Negative relative contributors were ICON, NovoNordisk and Guardant Health.
ICON, a CRO, was adversely impacted by two things in February: first, concern that AI could prove to be disruptive for the CRO industry, and second, the company announced it is undergoing an investigation into accounting practices.
NovoNordisk continues to disappoint. Not only was the company’s financial guidance for 2026 disappointing, but the company disclosed lacklustre results for its late-stage pipeline asset for the treatment of obesity CagriSema.
Despite announcing a decent set of 2025 financial results and 2026 guidance that offers plenty of room for upside, Guardant Health struggled with the primary driver appearing to be a rotation out of high-growth, high-value stocks into more defensive areas of the market.
We initiated positions in Bridgebio Pharma and Innovent Biologics.
Bridgebio Pharma has a relatively derisked pipeline with three key assets: Infigra for the treatment of achondroplasia (a genetic disease that causes short-limbed dwarfism), BBP-418 indicated for muscular dystrophy (a genetic disease that causes muscle weakness and wasting) and encaleret for the treatment of hypocalcemia (abnormally low calcium levels). The company also has a number of commercialised assets for the treatment of rare diseases.
Innovent Biologics is a leading Chinese biopharmaceuticals company with strong commercial presence, a deep pipeline and high-value partnerships.
We exited our position in IQVIA Holdings.
Outlook
February was incredibly challenging for the Fund’s relative performance, driven by stock-specific issues (NovoNordisk), AI-driven fears for the CRO industry (ICON and IQVIA Holdings) and a rotation out of high-growth, high-value diagnostics companies (Guardant Health and iRhythm Technologies). Importantly, however, we have not lost confidence in the near and medium-term outlook for the healthcare sector as we continue to see exciting new product cycles and ongoing demand for healthcare products and services. Further, the recent rotation and volatility is creating a dislocation from fundamentals, a dislocation that could yield some exciting opportunities.
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