Intention to Launch a Global

RNS Number : 3651K

Polar Capital Holdings PLC

19 April 2010

 

THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO US PERSONS OR IN OR INTO THE UNITED STATES, OR INTO OR FROM CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR AUSTRALIA.

19 April 2010

Polar Capital Holdings plc Announces Intention to Launch a Global 
Healthcare Growth & Income Trust

 Polar Capital Holdings plc ("Polar Capital"), the specialist asset management group, today announces its intention to launch the Polar Capital Global Healthcare Growth and Income Trust plc ("PCGH"). It is intended that PCGH will seek admission to trading of its ordinary shares on the London Stock Exchange plc with a premium listing. PCGH is looking to raise over £100 million through a proposed placing and offer for subscription.

 ·     Highlights

 ·     Objective - to generate dividend income and capital growth by investing in a global portfolio of healthcare stocks.  No more than 15 per cent. of the initial portfolio will be invested in companies with a premium UK listing.

 ·     Market opportunity - the healthcare sector is at a thirty year low in terms of relative valuations, driven partly by concerns over US reform.  With many institutions under-weight in the sector, PCGH is an investment-led idea designed to profit from a re-rating of the healthcare sector.

 ·     Sustainable and growing dividend target - many established companies in the healthcare sector are generating levels of cash flow which provide comfortable cover to their dividends.  PCGH will target a sustainable and growing dividend, commencing with a target of 3p in respect of the first financial period to 30 September 2011.  Dividends are expected to be paid quarterly.

 ·     Growth - it is intended that the investment portfolio will include some exposure to the higher growth sectors of healthcare and to opportunities in emerging markets.  The investment trust structure will enable the Manager to take a longer-term view and benefit from some investment in illiquid stocks.

 ·     Highly experienced portfolio management team - The Manager will be Polar Capital LLP where the healthcare team has over 40 years' combined investment and healthcare experience.

 ·     Fixed life - PCGH will have a fixed life to January 2018.  Only at the end of this period will the Manager's performance fee, if any, be paid. 

 ·     Fee based on market capitalisation - The Manager's annual fee of 0.85 per cent. per annum will be based on the market capitalisation of PCGH so as to align the Manager's and shareholders' interests.

 ·     Targeted proceeds - at £100 million. 

 ·     Issue price - 100p per share; Opening NAV 98p per share.

 ·     Bonus subscription share issue - 1 for 5 bonus subscription share issue to all initial investors, exercisable in January 2014 at a price of 100 pence.

Daniel Mahony and Gareth Powell, Fund Managers of PCGH, commented:

"We believe that the healthcare sector now offers an excellent opportunity for investors. It is now significantly undervalued and under-owned by most generalist investors, with a shadow cast over the sector from the US healthcare reform debate.  The Pharmaceutical sector has suffered a decade long P/E decline which we see reaching an inflection point in the next five years.  Consequently, we intend to establish PCGH to take advantage of these opportunities now and to aim to provide a sustainable and growing dividend with exposure to the higher growth sectors of healthcare."

 John Regnier-Wilson, Head of Sales of Closed Ended Funds, Polar Capital, added:

 "This investment trust takes into account the needs of investors.  There is no performance fee until the end of the fixed life to January 2018 and the Manager's annual fee is based on market capitalisation, ensuring we align the interests of the Manager with our investors.  We believe that this structure, combined with the sector opportunity will create a compelling investment proposition for investors."

 Investment Manager

 Polar Capital Holdings plc is a research driven investment management company providing a highly entrepreneurial environment for outstanding portfolio managers within a structure that offers a level of marketing, administrative and operational support normally found in much larger organisations.

 Our objective is to deliver strong, sustainable earnings and dividend growth by building a highly diversified family of long-only, long-bias, equity long/short and other fundamentally driven hedge fund strategies managed under the Polar Capital brand.

 Today Polar Capital has a staff of 47 of whom 23 are investment professionals managing ten funds, six managed accounts and one advisory relationship. These funds, which are aimed at institutional and professional investors, have combined assets under management as at 31 March 2010 of US$2.53bn. 

 Admission

 Dealings are expected to commence by the end of June 2010.

 Matrix Corporate Capital LLP has been appointed as broker to the proposed initial public offering and has also been appointed as financial adviser to PCGH.

For further information, please contact:

Polar Capital Holdings plc                                                   [phone]

Tim Woolley

John Mansell

Matrix Corporate Capital LLP                                             [phone]

(Financial Adviser to PCGH)

Paul Fincham

Simon Gaunt

Numis Securities                                                                  [phone]

(Nominated Adviser and Broker to Polar Capital)

Charles Farquhar (Corporate Broking)

Simon Blank (Nominated Adviser)

Financial Dynamics                                                               [phone]

Ed Gascoigne-Pees                          

Louise Dolan                          

Notes to editor :

Gareth Powell CFA - Fund Manager

Gareth is a portfolio Manager and co-head of the Manager's Healthcare Business unit at Polar Capital LLP. He has over 10 years' investment experience in the healthcare sector, with over 8 years as a portfolio Manager. He joined Polar Capital in 2007 and is currently co-manager of the Polar Healthcare Opportunities Fund. Previously, he worked at Framlington where he was initially an investment analyst for 3 years and then a portfolio manager for over 5 years working on the healthcare investment team, and running the Framlington Biotech Fund. Prior to Framlington, he studied Biochemistry at Oxford University and during his degree worked in academia and at pharmaceutical companies on a variety of research projects.

Daniel Mahony Ph.D - Fund Manager

Dan is a portfolio Manager and co-head of the Manager's Healthcare Business unit at Polar Capital LLP. Dan joined Polar Capital to set up the Healthcare Investment Management Department in 2007. He has more than 11 years' investment experience in the healthcare sector, with over 2 years as a Portfolio Manager and 9 years as a sell-side analyst. Prior to joining Polar Capital, he was Head of the European Healthcare Research Team at Morgan Stanley, which covered the European Biotechnology, Medical Technology and Healthcare Services industries. Dan was ranked second in the Institutional Investor Magazine All-Europe Research Team survey in 2003. He also previously worked in New York for ING Barings Furman Selz following the US Biotechnology sector. Before working in the investment field, Dan worked as a Research Scientist for 7 years with the majority of his time at Schering Plough Corporation in California.

Today, Dan acts as Co-manager of the Polar Capital Healthcare Opportunities Fund alongside Gareth Powell. He has primary responsibility for Medical Devices, Diagnostics, and Healthcare Services company sectors on a Global basis. Dan received his PhD from Cambridge University in 1995 and a first class honours degree in Biochemistry from Oxford University in 1991. Dan was involved in the recent UK government review of the biotechnology industry and is currently advising the UK Trade & Industry Department on its Life Sciences marketing strategy initiative.

 Important Notices

This announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any shares in PCGH or securities in any other entity, in any jurisdiction, including the United States, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities.

Any investment decision must be made exclusively on the basis of the prospectus to be published by PCGH in due course and any supplement thereto in connection with the admission of ordinary shares in the capital of PCGH to the official list of the Financial Services Authority and to trading on the London Stock Exchange plc's main market for listed securities (the "Prospectus").

This announcement, and the information contained therein, is not for viewing, release, distribution or publication in or into the United States, Canada, Australia, or Japan or any other jurisdiction where applicable laws prohibit its release, distribution or publication, and will not be made available to any national, resident or citizen of the United States, Canada, Australia, or Japan. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this document comes must inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the federal securities law of the United States and the laws of other jurisdictions.

PCGH's shares ("Shares") have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"). The Shares cannot be offered, re-sold, pledged or otherwise transferred, directly or indirectly, within the United States or to, or for the account or benefit of, any US Person (as defined in Regulation S of the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Shares are being offered or sold outside the United States in reliance of Regulation S, and within the United States pursuant to an exemption from the registration requirements of the Securities Act.

PCGH has not been, and will not be, registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act") and investors will not be entitled to benefits under the Investment Company Act. There will be no public offering of the Shares in the United States.

All investments are subject to risk, including the loss of the principal amount invested. Past performance is no guarantee of future returns. All investments to be managed by PCGH involve a substantial degree of risk, including the risk of total loss. You should always seek expert legal, financial, tax and other professional advice before making any investment decision.

Neither PCGH, Polar Capital, the Manager, Matrix Corporate Capital LLP, their affiliates nor any other person (including, without limitation, the directors, officers, employees, partners, agents, representatives, members and advisers of PCGH, Polar Capital, the Manager, Matrix Corporate Capital LLP and their affiliates) undertakes any obligation to update or revise any statement made in this announcement, whether as a result of new information, future events or otherwise.

The information on the pages that follow may contain forward-looking statements. Any statement other than a statement of historical fact is a forward-looking statement.

Actual results may differ materially from those expressed or implied by any forward-looking statement. PCGH does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statement, which speaks only as of the date of its issuance.

 

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