Paul Major, fund manager of BB Healthcare Trust (LON:BBH) (launched December 2016), gives an overview of the investment trust and how it sits alongside manager Bellevue Asset Management’s long-established BB Biotech fund.
He explains how the high-conviction strategy differs from peers, not just in its concentrated portfolio drawn from across the healthcare universe, but also in its 3.5% distributions and annual redemption facility. Major goes on to explore why investors should consider looking at the healthcare sector, which is supported by scientific innovation and demographic change, and looks ahead to the rest of the year, a period in which he expects fundamentals for the sector to reassert themselves following a period where political debate has dominated the headlines.
BB Healthcare Trust (BBH) is an investment trust concentrating on the global healthcare sector. It holds a focused and actively managed portfolio of a maximum of 35 investments chosen for their capital growth potential. Structured as a UK-listed investment trust, the fund targets an annual dividend of 3.5% of NAV, which it manufactures largely from capital returns rather than being constrained by investing in high-yielding stocks. It offers an annual redemption facility as a means of minimising any potential discount to NAV.