| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 451.95 | 8 |
| Intrinsic value (DCF) | 147.22 | -65 |
| Graham-Dodd Method | 6.18 | -99 |
| Graham Formula | 46.12 | -89 |
Polar Capital Global Healthcare Trust plc (PCGH.L) is a UK-based closed-end investment trust specializing in global healthcare equities. Managed by Polar Capital LLP, the fund targets dividend-paying growth stocks of large-cap healthcare companies (market cap >$5B) across pharmaceuticals, biotechnology, medical devices, and services. The trust employs a bottom-up stock selection strategy, benchmarking against the MSCI ACWI/Health Care Index. With a focus on sustainable income and capital appreciation, PCGH.L provides investors diversified exposure to defensive healthcare sector growth. The £382M trust (as of latest data) benefits from structural healthcare tailwinds like aging populations and innovation while offering lower volatility (beta 0.52) than broader markets. Formerly named Polar Capital Global Healthcare Growth and Income Trust, it rebranded in 2020 while maintaining its income-growth mandate.
PCGH.L offers defensive equity exposure with attractive income (2.4p dividend/share) and growth potential through concentrated healthcare sector bets. The trust's 0.52 beta indicates lower volatility than broader markets, appealing to risk-averse investors. Strong fundamentals include £62.8M net income and £49M operating cash flow (latest reported), supporting dividend sustainability. However, sector concentration risks exist—performance hinges on healthcare equities, currently facing policy/pricing pressures. The zero-debt balance sheet (£9.55M cash) provides stability, but limited capital expenditures suggest pure equity focus without venture-style biotech bets. Valuation appears reasonable given sector growth prospects, but investors should monitor active management's ability to navigate regulatory hurdles and patent cliffs affecting portfolio companies.
PCGH.L differentiates itself through pure-play healthcare focus within the UK investment trust space, combining income orientation with growth exposure—a rarity among sector peers. Its competitive edge stems from Polar Capital's specialized healthcare team (7 dedicated PMs) and concentrated 30-50 stock portfolio allowing alpha generation. The trust's 1.1% ongoing charge is competitive versus active global healthcare funds but higher than passive alternatives. Performance-wise, PCGH.L has lagged biotech-heavy peers during growth rallies but outperforms in downturns due to large-cap bias and dividend focus. Structural advantages include GBP-denominated healthcare access for UK investors, avoiding currency risks of direct US healthcare investments. However, its closed-end structure introduces discount/premium volatility versus open-end funds. The trust competes by balancing defensive positioning (pharma overweight) with selective growth (25-30% biotech allocation), though this hybrid approach may trail specialized growth or income vehicles in respective market conditions.