Launched in 1995, the WorldWide Healthcare Investment Trust seeks superior healthcare investment opportunities on a worldwide basis by investing in pharmaceutical, biotechnology and related companies with a focus on capital growth, rather than income.
The trust is one of the top performers in the sector, beating competitors such as Polar Capital Healthcare and International Biotech Trust over one year, three years and five years. Many analysts are recommending it owing to an 8 per cent discount to net asset value (NAV).
As of October 2010, the fund's performance has been benchmarked against the MSCI World Health Care Index. In May, the fund's NAV was up 4.4 per cent compared to the index's 4.2 per cent.
The fund is managed by Samuel D. Isaly, who has been active in the sector more than 20 years with extensive experience in valuing companies in the healthcare sector. Mr Isaly is one of seven principals who owns Orbmed Capital, the investment managers of the fund and the Biotech Growth Trust, another top performing investment trust.
Mr Isaly expects the fund to continue benefiting from the big pharma's recent rally, which he attributes to, among others, generalist investors rotating to the sector, a positive first-quarter earnings season, continued earnings growth and some positive pipeline news flow.
The fund, which holds around two thirds of its assets in large caps and one third in small caps, is looking at companies likely to benefit from US healthcare reform, which will increase the number of Americans with medical insurance. It is also exploring opportunities in royalty obligations and Japanese generics.
|WORLDWIDE HEALTHCARE TRUST (WWH)|
|SIZE OF FUND||£364m||PRICE DISCOUNT TO NAV||-8.43%|
|No OF HOLDINGS:||68||1 YEAR PRICE PERFORMANCE||22.40%|
|SET UP DATE||Apr-95||3 YEAR PRICE PERFORMANCE||69.20%|
|VOLATILITY||9.96||5 YEAR PRICEPERFORMANCE||57.40%|
|TRACKING ERROR||n/a||TOTAL EXPENSE RATIO||1.13%|
Source: Thomson Datastream, *Morningstar
Performance figures as at 8 July 2011
Top 10 holdings (as at 31 May 2011)
|Johnson & Johnson||4|
|Merck & Co||3.4|