Polar Capital Global Healthcare Trust PLC (LSE:PCGH) said “strong stock selection across the entire market-capitalisation range, particularly in biotechnology and pharmaceuticals”, enabled it comfortably to outperform its benchmark in the past twelve months.
Weight-loss drug developers were notable performers, said the trust and Danish group Zealand Pharma in particular.
Accounting for 4.7% of the portfolio, Zealand’s value jumped by 155% over the past year based on trials for its weight loss treatment pretelintide, which is said to result in fewer side effects than rivals such as Wegovy and Mounjaro.
Brussels-based UCB was another strong performer, with its value doubling following the launch of its psoriasis drug Bimzelx in the US.
Net assets at the end of September were 395.05p per share, a gain of more than 14% over the comparable date in 2023 while in total, assets rose to £479 million, up from 419 million.
PCGHL noted that its benchmark, the MSCL AWI Healthcare Index was up by 9.88% over the same period, while its share price discount to NAV has narrowed to 4.9%.
For the current year, the trust said: “We continue to believe the fundamentals for healthcare remain very strong.
“As we highlighted last year, innovation drives the future growth potential of companies, but pressure on healthcare costs to fund new products and initiatives means that access and affordability are increasingly critical if the innovation is to flow through into earnings growth.
“This is a theme our managers believe will be a driver for the next twelve months, together with continued excitement over the potential applications of technology, especially in Artificial Intelligence and also for opportunities in emerging markets, particularly China.”