Rated Fund 2013-2017. Investing in innovation with support from demographic trends
This fund invests principally in the shares of companies in the biotechnology, genomic and medical research industries worldwide. It has been managed since 2012 by former microbiologist Linden Thomson. Since then it has performed very strongly, coinciding with a boom in the biotech sector.
Thomson remains optimistic about the future thanks to the tailwinds she sees supporting the sector, such as ageing populations needing more drugs and the increasing prevalence of lifestyle diseases such as diabetes. The existence of larger, more profitable companies in the biotechnology sector also helps.
Thomson's main focus in the fund is on innovation in the biotech sector. She is looking to invest in companies tackling diseases with significant unmet needs by developing drugs that employ cutting-edge technologies to tailor treatment for patients.
Her view is that biotech companies with compelling and innovative products will be those that can continue to charge high prices for their products and are less likely to suffer from pricing pressure relative to companies whose drugs are undifferentiated.
The fund's main geographic exposure is to the US, with over 80 per cent of the portfolio invested there at the end of 2016.
With the Republicans having published their 'Better Way' plan to 'fix healthcare' before President Trump took office, which is explicit in its support for innovation, accelerating drug discovery and advancing personalised medicine, she feels the new administration is likely to be positive for biotech companies.