Polar Capital Global Healthcare Trust PLC Fund Data

The modest decline in global equity indices in June masked significant volatility across much of the market. The AI trade took centre stage once again, with the month seeing a dramatic valuation and positioning reset in the most crowded areas of the market. Year-to-date winners such as hyperscalers, semiconductors and memory stocks sold off, amid a combination of valuation concerns, tighter financial conditions and fears that hyperscalers may be unable to monetise AI sufficiently to earn a return on their vast capex. This shift in sentiment away from the AI leaders benefited industrials, along with areas of the market that had trailed so far, such as healthcare, utilities and financials, either being considered 'AI hedges' or second-derivative beneficiaries of the AI infrastructure buildout. Within healthcare, managed care, healthcare services, biotechnology, pharmaceuticals and distributors were the strongest performing subsectors, while healthcare equipment, facilities and life sciences tools and services lagged. June 2026 was defined by a fragile move towards peace in the Middle East and a hawkish debut for the new chair of the Federal Reserve, Kevin Warsh. The US and Iran signed a memorandum of understanding on 17 June to end nearly four months of war, reopen the Strait of Hormuz and begin 60 days of negotiations. The oil price fell sharply as tanker traffic resumed. US bond yields, however, spiked the same day, as Warsh's first meeting of the Federal Open Market Committee as chair held interest rates steady amid stubbornly high inflation readings. Warsh stressed that the Fed is committed to price stability and the overall tone read as hawkish. Nine of 18 participants projected at least one hike, and the inflation forecast was raised to 3.6%. Even so, as the month progressed and oil prices continued to fall, US yields began to ease, which helped smaller-cap stocks perform strongly as did longer-duration assets whose valuations had been compressed by the spike in oil prices.

The modest decline in global equity indices in June masked significant volatility across much of the market. The AI trade took centre stage once again, with the month seeing a dramatic valuation and positioning reset in the most crowded areas of the market. Year-to-date winners such as hyperscalers, semiconductors and memory stocks sold off, amid a combination of valuation concerns, tighter financial conditions and fears that hyperscalers may be unable to monetise AI sufficiently to earn a return on their vast capex. This shift in sentiment away from the AI leaders benefited industrials, along with areas of the market that had trailed so far, such as healthcare, utilities and financials, either being considered 'AI hedges' or second-derivative beneficiaries of the AI infrastructure buildout. Within healthcare, managed care, healthcare services, biotechnology, pharmaceuticals and distributors were the strongest performing subsectors, while healthcare equipment, facilities and life sciences tools and services lagged. June 2026 was defined by a fragile move towards peace in the Middle East and a hawkish debut for the new chair of the Federal Reserve, Kevin Warsh. The US and Iran signed a memorandum of understanding on 17 June to end nearly four months of war, reopen the Strait of Hormuz and begin 60 days of negotiations. The oil price fell sharply as tanker traffic resumed. US bond yields, however, spiked the same day, as Warsh's first meeting of the Federal Open Market Committee as chair held interest rates steady amid stubbornly high inflation readings. Warsh stressed that the Fed is committed to price stability and the overall tone read as hawkish. Nine of 18 participants projected at least one hike, and the inflation forecast was raised to 3.6%. Even so, as the month progressed and oil prices continued to fall, US yields began to ease, which helped smaller-cap stocks perform strongly as did longer-duration assets whose valuations had been compressed by the spike in oil prices.