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 2025
Market and sector review
September was another positive month for global equity markets. Sectors seen as key beneficiaries of the artificial intelligence boom, such as information technology, communication services and utilities, outperformed, while more defensive areas, including consumer staples and healthcare, lagged. Within healthcare, managed care, distributors, facilities and biotechnology delivered strong returns, whereas supplies, equipment and life sciences tools and services were weaker.
Investor attention was firmly centred on the US Federal Reserve (Fed). At its Federal Open Market Committee meeting, the Fed cut its benchmark interest rate by 25 basis points, the first reduction since December 2024. Although equity markets reacted positively to the announcement, Chair Jerome Powell emphasised that the cut reflected a weakening labour market rather than progress in defeating inflation. In fact, inflation remains elevated – and is slightly accelerating compared with prior months – while labour market conditions continue to soften, with fewer job openings, rising layoffs and a higher unemployment rate. By contrast, GDP growth has remained robust, supported by resilient consumer spending and improving productivity, with Q2 estimates revised higher in September. Whether these trends can continue to counterbalance the job market weakness remains to be seen.
As it pertains to healthcare, since Donald Trump assumed the US presidency, two major policy risks have weighed heavily on the sector: the threat of tariffs on pharmaceutical imports into the US and the potential introduction of a ‘most favoured nation’ (MFN) drug pricing framework for US government-funded healthcare. In September, greater clarity emerged on both issues.
First, Trump announced a 100% tariff on branded pharmaceutical imports. While the headline rate appears severe, the duty will not apply to companies building or expanding manufacturing facilities in the US, including projects under construction. In recent months, most large pharmaceutical companies have announced significant investments in US capacity, meaning these tariffs should not apply to their imports. Although the finer details are yet to be clarified, the outcome appears relatively benign for the industry.
Second, on the final day of the month, the US government and Pfizer reached an agreement under which the company will adopt MFN pricing for the Medicaid channel, lower prices in the direct-to-consumer market, invest in US manufacturing and commit to setting future launch prices at MFN levels. This will be achieved by avoiding undercutting US prices in high-income OECD (Organisation for Economic Co-operation and Development) markets, rather than reducing US prices directly. In exchange, Pfizer secured a three-year moratorium on tariffs. The agreement is expected to be the first of several similar arrangements between the government and industry, reflecting a willingness on both sides to negotiate in a way that preserves the sector’s ability to invest in innovation. However, it is still uncertain whether these concessions will be enough or the administration will ultimately press for MFN pricing across all government-funded channels, such as Medicare.
Fund performance
The Company’s NAV increased by 3.9% in September, ahead of its benchmark, the MSCI All Country World Daily Net Total Return Health Care Index) which was up 1.4% (both figures in sterling terms).
Positive contributors relative to the benchmark in September were Merus, Cytokinetics and UCB.
Merus’s positive share price appreciation in 2025 has been driven by compelling clinical data in the field of head and neck cancer. Further, late in September the company announced that biotechnology peer Genmab intends to acquire the company in an all-cash deal representing a transaction value of approximately $8bn.
Cytokinetics’ strong performance reflects improving sentiment around key pipeline asset aficamten, which is in development for a number of muscle-directed cardiovascular disorders. Clinical data disclosures in late August and again in late September have been the key catalysts.
Belgian biopharmaceutical company UCB performed strongly with the key driver being challenges for potential competitors. More specifically, Moonlake Therapeutics released disappointing data for its lead pipeline asset sonelokimab, in development for the treatment of a skin disease known as hidradenitis suppurativa. More positive data, and subsequent approval, would have created a more competitive environment for UCB’s recently launched Bimzelx.
Negative relative contributors were AbbVie, DexCom and Penumbra.
The Fund had no exposure to AbbVie during the period, a stock that continues to appreciate following strong commercial execution, positive revenue revisions and a relatively risk-free, long-term growth outlook.
DexCom continues to struggle, with the market very much focussed on the safety of the company’s continuous glucose monitoring system, G7. In the near term, strong operational performance feels essential to drive a potential recovery and to allay the safety fears.
There was no thesis-changing news for Penumbra during the period under review.
We added positions in Centene and Teva Pharmaceutical Industries.
US-based managed care company Centene provides benefit plans with a primary focus on low-income Americans. After a period of margin and earnings pressure, a possible rerating could be driven by a faster-than-expected operational recovery.
Teva Pharmaceutical Industries, a company traditionally focussed on generics, is diversifying away from its generics core via the development and commercialisation of branded pharmaceuticals primarily focussed in areas such as schizophrenia and tardive dyskinesia (a condition where your face, body or both make sudden, irregular movements).
The new positions were funded, in part, by exits from Merus, Swedish Orphan Biovitrum and UnitedHealth Group.
Outlook
The pace of innovation in healthcare continues to accelerate, not just in respect of novel therapies, but also new devices are opening up new markets and technological advances are increasing efficiency. At the same time, increased utilisation is supporting revenue and profit growth across companies in a range of subsectors including healthcare distribution, healthcare equipment and healthcare facilities. With valuations attractive, it is not unreasonable for healthcare investors to look ahead with a high degree of optimism.
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