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Polar Capital Global Healthcare outlines proposals for future

Polar Capital Global Healthcare (PCGH) has announced draft proposals for a corporate reorganisation ahead of its scheduled fixed life wind-up in early 2026. Following a review of options and consultation with shareholders, the board intends to seek approval for the company to continue, with a number of structural and fee changes designed to enhance long-term value.

Under the plans, the trust’s global healthcare investment strategy will remain unchanged, though the board proposes allowing up to 30% of assets to be invested in small and mid-cap stocks (below $10bn market cap), alongside its core large-cap exposure. The fixed life structure would be replaced with an obligation to offer a 100% tender to shareholders on or before 31 March 2031, and every five years thereafter. A 100% tender will also be offered immediately for those who do not wish to remain invested.

The board has agreed changes to management fees, removing the performance fee and lowering the base fee from 0.75% to a tiered structure of 0.70% on the first £500m of assets and 0.65% thereafter. The dividend policy, which focuses on capital growth and pays two small dividends annually, will be maintained. The existing gearing limit of 15% will also be retained, with a target of around 10% when conditions allow.

On discount management, the board says it will continue to make use of buybacks to help manage volatility and maintain a narrow discount, alongside the newly introduced five-yearly tender mechanism.

Full details of the proposals, including the terms of the tender offer, will be set out in a shareholder circular and put to a vote at a general meeting in due course.

Matthew Read
Written By Matthew Read

Head of Production and Senior Research Analyst

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