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Cheap investment trusts to play healthcare, biotech, Europe and Asia

Despite impressive share price momentum from March lows, these funds are cheaper than their historic average discount.
June 18, 2020

Our value and momentum ranked investment trust screen has picked up on recovery bargains in Europe and Asia this month. Several of the companies in our ten-stock portfolio combine double digit share price momentum with discounts to their net asset value (NAV) that are wide in absolute terms and by historic standards.

  • Healthcare and biotechnology are areas that have seen widespread interest in the era of coronavirus but, even though Polar Capital Global Healthcare (PCGH) and Biotech Growth (BIOG) have enjoyed three month share price momentum of 28 per cent and 53 per cent, respectively, discounts to the value of portfolios they hold are relatively large thanks to NAV growth.
  • European trusts are prominent in this month’s screen and if the European Union succeeds with its proposed €750bn recovery fund and the injection of further liquidity into its financial system (the ECB is lending to banks at negative rates) helps sure up confidence, then this could be an interesting theme for UK investors to play through investment trusts.
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