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 May 2025
Market and sector review
Global equity markets experienced a robust rebound in May, driven primarily by a rotation into more cyclical sectors, notably information technology, communication services and consumer discretionary. This trend, which began in the previous month, continued to gain momentum. The S&P 500 Index has now surpassed its pre-presidential election level and fully recovered its losses from earlier in the year. In contrast, the healthcare sector significantly underperformed the broader equity market during May. Within healthcare, subsectors such as facilities, equipment and distributors posted positive returns, whereas managed care, healthcare information technology, and pharmaceuticals faced an especially difficult month.
The ongoing developments in Washington continued to shape global investors’ sentiment and market dynamics throughout the month. Early in May, US/China trade tensions eased following an agreement to implement a 90-day tariff reduction. This temporary reprieve sparked a rally in the stock market, particularly benefiting sectors most exposed to tariffs. Despite this positive development in the US-China relations, President Trump escalated his rhetoric against the European Union by threatening to impose 50% tariffs on European goods unless progress was made toward a US/EU trade agreement. The market largely dismissed this announcement as a negotiating tactic and continued to nudge upwards.
Toward the end of the month, the US Court of International Trade (CIT) ruled that Trump’s broad use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs was unauthorised. The administration promptly appealed the decision and, for the time being, tariffs remain in effect following a stay granted by the Court of Appeals on the CIT ruling.
As previously noted, the healthcare sector faced significant headwinds in May. The S&P 500 Health Care Index underperformed its broader counterpart by nearly 12%, making it the worst relative monthly performance in more than 25 years. Several factors contributed to this pronounced underperformance. First, despite encouraging developments in broader trade negotiations, the US administration initiated an investigation under Section 232 of the Trade Expansion Act into the potential to impose tariffs on pharmaceutical products. Second, Trump signed an executive order directing the Secretary of Health and Human Services to establish ‘most-favoured-nation’ (MFN) price targets for pharmaceutical manufacturers, aiming to align US drug prices with those of comparably developed countries. Due to the absence of specific implementation details, the precise impact of MFN pricing on corporate earnings remains uncertain. However, it would be a clear negative development for the industry, with ramifications that would impact not just pharmaceutical and commercial biotechnology companies’ earnings, but the whole healthcare ecosystem (early-stage discovery, large R&D decisions etc). Last, unhelpful news from two sector bellwethers – UnitedHealth Group, which announced its CEO’s resignation and withdrew forward guidance, and Eli Lilly, which reported disappointing Q1 results – further exacerbated the already challenging sentiment in the healthcare sector.
Fund performance
The Company’s NAV decreased by -2.2% in May, ahead of its benchmark, the MSCI All Country World Daily Net Total Return Health Care Index, which was down 4.4% for the month.
Positive contributors relative to the benchmark in May were Insulet, Merus and Sandoz Group.
The key driver behind the positive performance for all three was a strong set of 1Q25 financial results or positive pipeline developments. Starting with Insulet, the company delivered not just robust results for the quarter but also upgraded its outlook for FY25. Merus presented highly promising clinical data for its asset, petosemtamab, for the treatment of head and neck cancer. Finally, Sandoz Group produced a solid set of financial results, confirmed FY25 guidance and, importantly, offered comfort that it can absorb tariff pressure without deviating too much from its plan.
Negative relative contributors in the period under review were Cytokinetics, Globus Medical and Argenx.
May proved, yet again, to be a tricky month for Cytokinetics. The FDA postponed the approval decision date for key asset, aficamten, following a request for more data around the company’s proposed post-market patient-monitoring requirements. Globus Medical disappointed the market with a very lacklustre set of Q1 financial results, with weakness and challenges in multiple areas of the business. With many of the issues expected to be transient, the management team reiterated FY25 guidance but the market is understandably approaching that reiteration with an element of caution. Somewhat frustratingly, the market was disappointed with Argenx’s Q1 results, despite the company delivering results broadly in line with consensus expectations. With the fundamentals firmly intact, and the pipeline on track, we saw nothing to change the investment thesis.
We added a position in Danish biotechnology company Genmab, ahead of a potentially rich vein and clinical news flow. Coupled with an attractive valuation, the near and medium-term risk/reward feels attractive.
Outlook
There is no hiding from what has been a dynamic and challenging backdrop for healthcare investors, with the threat of sector-specific tariffs and potential pressure on drug prices in the US as two key areas of uncertainty. However, it is worth reflecting on three things that offer cause for optimism. First, we believe investing during periods of high policy uncertainty can generate attractive returns. Second, the biopharmaceutical industry does not appear to be wavering in its commitment to either R&D investment or business development, a statement underpinned by an ongoing cadence of positive news flow, licensing deals and M&A. Last but not least, the healthcare industry is incredibly diverse, offering interesting investment opportunities despite the near-term, and hopefully transient, regulatory and political uncertainty.
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