Polar Capital unveils blue-cap healthcare fund

Polar Capital has launched a large cap healthcare fund for sector specialists Daniel Mahony and Gareth Powell.

The Dublin-domiciled Polar Capital Healthcare Blue Chip fund aims to outperform the MSCI World Daily Total Return Net Health Care Index.

The managers seek long-term capital through a concentrated portfolio of 25 to 30 blue chip companies with low turnover. The fund will invest in all healthcare subsectors, including pharmaceuticals, biotechnology, medical device and healthcare services.

Fund manager Mahony says a major demographic change is happening globally and the healthcare strategy is tasked with profiting from it.

“It is amazing to think that one in five of the world’s population will be aged 60 or over by 2050,” he explains.

“Governments face escalating healthcare costs as the baby boomer population begins to retire and there is an undeniable need to manage spending and make healthcare systems more efficient.”

Last century’s healthcare model is “unsustainable” and in need of significant structural reform, he adds.

The move toward greater scale and standardisation means opportunities for the large cap companies the fund is invested in, he says.

Psigma Investment Management head of global equities Tim Gregory says the company sought out the Polar Capital team for their specialist knowledge.

“We believe this new fund offers a unique and rewarding investment opportunity, taking advantage of an industry which is at the beginning of a period of structural growth,” he says 

“The pharmaceutical industry is passing the worst of its ‘patent cliffs’ and is now beginning to re-focus on growth. It is no surprise to us that we have already seen a number of industry acquisitions and we fully expect this trend to continue.”

The fund is available in sterling, euro and dollar-denominated share classes with an annual management charge of 85 basis points and a performance fee of 10 per cent for any gain above the benchmark.

Polar Capital launched a Biotechnology fund in November last year.