Rated Fund 2013-2017. Investing in a diverse range of healthcare companies
This trust has twice been highly commended in the Best Large Trust category in Money Observer's annual trust awards, which is no mean feat when it was up against over 100 other trusts from a variety of sectors.
It invests in a diversified portfolio of worldwide pharmaceutical, biotechnology and healthcare equipment, technology and services companies. Managed by US-based specialist healthcare fund manager OrbiMed Capital, the investment team is led by two of the company's founders, Sven Borho and Sam Isaly.
They are supported by a team of over 90 who carry out extensive research. The aim of the managers is to seek innovation and growth in the global healthcare industry and invest in healthcare companies that offer the greatest return potential. Risk is spread through the trust's worldwide exposure and diversification across different healthcare sub-sectors.
At the end of 2016, pharmaceutical and biotech companies made up the bulk of the portfolio, which consisted of 80 holdings. The majority of the top 10 holdings were large, profitable companies. However, investment in smaller companies accounted for 30 per cent of the portfolio. Two thirds was invested in US stocks and 15 per cent in emerging markets.
The trust has a good steady track record because of its diversified approach. Following the US presidential election, the managers believe investors will once again concentrate on the sector's strong fundamentals, in particular innovation, which they say continues to be a key driver of returns.