- We assess the case for BioPharma Credit, a specialist lending fund with impressive returns
- Does the high yield justify a delve into specia;ist assets?
The list of investment trust 'winners' from 2022 is both short and full of niche assets. Less than a third of UK trusts (excluding VCTs) ended the year with a positive share price total return, according to FE data, and many of these are pretty specialist vehicles, from energy and Latin America funds to BH Macro (BHMG) and ship leasing trusts.
Turning to more conventional assets, while certain bond and equity valuations have reset to more appealing levels, 2022 does remind us that investment trusts with a focus on niche, illiquid asset classes can sometimes come through in a pinch – provided we also understand the risks. Some of these names, while highly specialised and idiosyncratic, have continued to do what they say on the tin in difficult times. BioPharma Credit (BPCR), a niche debt vehicle with a recent yield of around 7 per cent, ticks that box.