BB Healthcare trust is a UK- based long term close-ended investment trust which focus its investments in quoted global healthcare equities regardless of its market capitalization and region and its portfolio comprises of maximum 35 holdings, it was founded on 2nd December 2016. The trust is listed on London Stock Exchange as LON: BBH and is also a constituent of FTSE 250 Index. The trust gives its investors the annual redemption option which allows investors to exit their investment at or close to the net asset value their shares once a year and investor ay request redemption of all or some of their shares. The trust invests mainly in United States and Asia and Europe within various healthcare industries such as Pharmaceuticals, biotechnology, medical devices and equipment, healthcare insurers, information technology, facility operators, drug retail, consumer healthcare and distribution.
The trust’s investments are managed by Bellevue Asset Management (UK) Ltd with the objective of providing shareholders with long term capital gain, income, and high value through investing in the quoted healthcare companies across the globe by generating the total return higher than its benchmark The MSCI World Healthcare Index and seeks to generate double-digit total return per annum for its shareholders over a rolling 3-year period. The trust may also invest in ADRs or convertible instruments, underwrite, future equity issued by healthcare companies and at the time of investment no single holding will represent more than 10% of its gross assets to maintain liquidity and diversity. The trust has no intensions to invest in unquoted and other investment funds and it can deploy borrowing to increase long term capital gain.
The trust investment process is based on bottom-up fundamental analysis and selects companies for its portfolio not according to their weighting in the index or benchmark but looks for 3 to 5 total return potential. Its investment process can be summarized in four broad stages: Macro consideration (Thematic Assessment), Bottom-Up analysis (Idea Generation), Selection of high conviction core portfolio (Stock Weighting considerations) and Risk management framework (Independent Oversight).
The global market for healthcare products and services are growing fast and the demand and growth is expected to increase for many decades to come, some of the key reasons are increasing wealth of middle income and developing countries, Ageing population in developed markets, greater understanding of the pathogenesis of disease and cost containment and healthcare reforms.
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