PCGH gives thumbs-up to Obamacare

Contentious international health insurance reforms paid off in 2015 for Polar Capital Global Healthcare Growth and Income Trust, despite downward pressures on drug prices.

The healthcare investment vehicle released its annual results for the year ended 30 September on Wednesday, and reported a 6% change in its net asset value per ordinary share, from 164.41p to 174.24p.

Polar Capital Global Healthcare's ordinary share price jumped 8.2% during the period, from 155.5p to 168.25p.

The total number of issued ordinary shares remained the same, at 122.65m.

Chairman James Robinson described it as a financial year comprising of two distinct halves.

"The first half saw very strong net asset value performance of over 18%, following which we warned shareholders that it was unrealistic to expect this pace of performance to continue.

"The second half saw our net asset value fall by over 10%, with the result that the total return for the financial year as a whole was pared back to 8.1%", he added.

Robinson pointed to the controversial Obamacare programme as having a positive impact on the firm's investments, by increasing the general level of health insurance coverage in the United States.

"The one negative concern over the last year has been related to drug pricing."

"Drug companies are beginning to see more pricing pressure from insurers and governments - especially in therapeutic areas where there are a number of competing drugs."

Polar Capital Global Healthcare maintains holdings in 72 pharmaceutical and health technology companies. Its top holdings are in Pfizer (8.9% of total net assets), Novartis (8%), Eli Lilly (7.5%), Roche (7.3%) and Johnson & Johnson (5.6%).

Over the financial year, the firm paid a total of 3.65p per share in dividends, over four instalments.