12th Sep 2025 09:13
(Alliance News) - Polar Capital Global Healthcare Trust PLC on Friday said it will put a vote to shareholders on a corporate reorganisation of the trust, as it looks to update its fee structure.
The London-based investor in healthcare stocks said there would be no change to its overall investment strategy, with it continuing to pursue long-term capital growth through a range of diversified global healthcare stocks.
The trust expects the majority of assets will remain invested in large cap firms, but said going forward, up to 30% of the portfolio will be invested in small to medium-sized companies possessing a market capitalisation below USD10 billion. As of July 31, according to the trust's factsheet, its small and mid-cap exposure totalled 28.7%
In terms of structure, Polar Capital Global Healthcare said it will continue to operate as an investment trust, but the board is proposing to remove its fixed life structure. It seeks to replace this with an obligation to put forward a 100% tender offer to holders on or ahead of March 31, 2031, and every following five years.
It added that a 100% tender offer will be presented to shareholders not seeking to maintain their investment at this time.
The trust is also proposing the performance fee element of the fee structure is removed, and has agreed with Polar Capital to replace the existing management fee of 0.75% annually with a new tiered structure.
The company said a lower rate of 0.70% per year will apply on the first GBP500 million. Thereafter, the applicable rate will be reduced further to 0.65%.
In terms of its dividend policy, Polar Capital Global Healthcare seeks to keep its focus on capital growth and therefore its existing policy of two dividends per year.
It proposes to keep an upper limit of 15% of the NAV with regard to gearing. It also plans to manage discount volatility through buybacks, ensuring the discount "remains at an appropriately narrow level."
Shares in the trust edged 0.3% higher to 352.00 pence on Friday morning in London.
Polar Capital Global Healthcare added that it expects to publish a circular with the full details on the proposals and general meeting "as soon as practicable."
By Christopher Ward, Alliance News reporter
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