11th May 2015 10:24
LONDON (Alliance News) - Polar Capital Global Healthcare Growth And Income Trust PLC Monday said it underperformed its benchmark in the first half of its financial year.
In a statement, the trust said its NAV total return was 19.1% in the six months ended March 31, compared with a 21.7% rise in the MSCI Healthcare Index (total return in Sterling with dividends reinvested) benchmark.
The trust's NAV total return of 134.3% since its inception in June 2010 compares against the 146.7% of the benchmark.
"Our underperformance against the benchmark can be explained by our structural underweight position in biotechnology, as measured by the NASDAQ Biotech Index, that in sterling terms, has risen by 37.4% over the six month period and 324.6% since the company's inception. The rise in our share price over the half year was only 12.9% as the discount to Net Asset Value widened from 5.4% to 9.8%," Chairman James Robinson said in a statement.
The chairman said the trust considering "suitable rollover alternatives" to protect some shareholders against "adverse tax implications" of winding up the company at its seventh annual meeting of shareholders, which is expected in January 2018, as scheduled.
"With almost three years to go it is still early days but the board feels it would be helpful to give shareholders some guidance at this stage. While the board will make available a cash exit to all shareholders at that time, it is mindful of the adverse tax implications of winding-up the company for some shareholders and therefore expects in due course to consider suitable rollover alternatives," Robinson said.
"Since the company's inception we have seen significant outperformance from the Healthcare sector with the MSCI Healthcare Index producing a total return in sterling terms of 146.7% compared with 58.4% for the MSCI World Index. To expect this level of outperformance to continue at this pace is unrealistic but our managers believe there are still plenty of money-making opportunities in the sector which should enable them to generate very respectable returns for shareholders over the next three years," Robinson said.
By Samuel Agini; [email protected]; @samuelagini
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