REG - Polar Cap Glb Health PCGH ZDP PLC - Future of the Company

Polar Capital Global Healthcare TrustAnnouncement

12/09/2025 07:30

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RNS Number : 0435Z  Polar Capital Global Health Tst PLC  12 September 2025

POLAR CAPITAL GLOBAL HEALTHCARE TRUST PLC (the 'Company')

 

LEI: 549300YV7J2TWLE7PV84

 

Friday, 12 September 2025

 

 

Future of the Company

 

 

As outlined in the Company's half year report, the Board has been considering
the future of the Company in light of its fixed life. The Board intends to put
to shareholders proposals for a corporate reorganisation ahead of the
requirement to propose liquidation at the next AGM (which would ordinarily
take place in early 2026).

 

The Board has considered all options for the Company and consulted with key
shareholders on these, concluding that there is both positive appetite and
support for the continuance of the Company on the basis of the following draft
proposals (the "Proposals"). The final Proposals will be put to shareholders
at a General Meeting and will be detailed in a Circular convening that meeting
to be published in due course:

 

·    Investment Strategy: the overall investment strategy will remain
unchanged, and the Company will continue to aim to deliver long term capital
growth to Shareholders from a range of diversified global healthcare stocks.
The portfolio will remain diversified by geography, industry subsector and
investment size, with a multi-cap approach. It is expected that the majority
of the assets will remain invested in large capitalisation companies but going
forward up to 30% of the portfolio will be invested in small/mid
capitalisation companies with a market capitalisation of below $10 billion at
the time of investment.

·    Structure: the Company will continue to operate as an investment
trust with an independent Board of Directors and a third-party investment
manager Polar Capital LLP ("Polar Capital"). However, the Board is proposing
to remove the Company's fixed life structure and replace this with an
obligation to put forward a 100 per cent. tender offer (the "Tender Offer") to
Shareholders on or before 31 March 2031 and every 5 years thereafter. A 100
per cent. tender offer will also be offered as part of the Proposals for those
Shareholders who do not wish to continue their investment in the Company at
this time.

·    Fees: the Board has reviewed the fee arrangements to ensure that the
Company continues to provide value for Shareholders and remains competitive,
whilst also reflecting the quality and experience of Polar Capital's
specialist healthcare team and the business infrastructure that supports the
team. Following this review:

o The performance fee element of the fee structure will be removed.

o The Board has agreed with Polar Capital to replace the current management
fee of 0.75% per annum (based on the lower of market capitalisation and NAV)
with a new tiered structure. A lower initial rate of 0.70% per annum (based on
the lower of market capitalisation and NAV) will apply on the first £500m and
a further lowered rate of 0.65% per annum (based on the lower of market
capitalisation and NAV) will apply thereafter.

It is expected that these changes will become effective from the first
business day following completion of the Tender Offer.

·    Dividend policy: The Board proposes to maintain the Company's focus
on capital growth and therefore to retain the current dividend policy, paying
two dividends per annum, representing a small part of Shareholders' total
returns.  These dividends will vary depending on the level of income received
from the portfolio.

·    Gearing: The Board proposes to retain the existing policy of limiting
gearing to a maximum of 15% of the Company's NAV. The Board believes that the
ability to utilise gearing actively, with the potential to enhance future
returns, is a key attraction of the investment trust structure and is
intending to put in place gearing of approximately 10% of NAV where market
conditions are favourable.

·    Discount management: Notwithstanding the structural five yearly
tender offer provision outlined above, the Board recognises the importance of
monitoring market trading and actively managing any share price discount to
NAV through the use of the Company's ongoing share buyback authority. The
Board intends to actively utilise buybacks to manage discount volatility and
ensure, to the extent possible, that the discount remains at an appropriately
narrow level.

 

The Proposals are subject to change. A shareholder circular setting out the
full details of the final Proposals (including the terms of the Tender Offer)
and convening a general meeting of shareholders will be published as soon as
practicable.

 

 

 For further information please contact:  Lisa Arnold - Chair                         Tel. 020 7227 2742

                                          Polar Capital Global Healthcare Trust Plc

                                          (contact via the Company Secretary)

                                          John 'Reg' Regnier-Wilson / Richard Oates   Tel. 020 7227 2725

                                          Polar Capital

                                          Investment Trust Sales

                                          Alex Collins                                Tel. 020 3100 2000

                                          Panmure Liberum Limited

                                          Corporate Broker

 

 

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