Polar Capital Global Healthcare (PCGH) has received a massive endorsement from shareholders and will proceed to the next stage of its journey after less than a quarter of shares were tendered in the company’s 100% exit.

Shareholders were free to sell all their stakes in the £508m investment trust’s tender offer but only 22.5% did so meaning it clears the £270m minimum fund manager Polar Capital set for the listed fund to continue.

Chair Lisa Arnold said the board was delighted with the “overwhelming support” from shareholders.

“With almost 80% of existing shareholders remaining invested in the company, this is a very strong statement especially when considered against the challenges currently faced by the wider investment trust industry,” she said in reference to the large number of closed-end funds winding down in response to poor performance caused by wide share price discounts.

PCGH, which under fund managers James Douglas and Gareth Powell has delivered a 93% total return to shareholders since its last reconstruction in 2017, beating its benchmark’s 77%, will continue as a perpetual investment company with no fixed life.

Previously, the trust operated under a fixed-term structure and was committed to holding a liquidation vote next year. In future, there will be 100% tender offers every five years to enable shareholders to exit at net asset value and help the shares trade close to NAV.

Our view

James Carthew, head of investment company research at QuotedData, said: “I am delighted that investors have overwhelmingly backed PCGH to continue. I feel strongly that periodic exit opportunities, as the trust will provide every five years from now on, are an ideal way to encourage investors to think about the long-term prospects of their investment rather than fixate on discounts. We feel that the healthcare sector’s recovery has a long way to go and the long-term outlook remains compelling. PCGH is a great way to play this.”