Chairman, Professor Justin Stebbing, said he hoped 2018 would be driven more by stock fundamentals than the politics now that wrangling in the US over the Affordable Care Act had ceased.
He believes the Republicans have “largely exhausted” their opportunities to reform Obamacare; at the same time “the realities of drug price trends are better understood”.
Optimistic about the future
“I am optimistic about the future; we see innovations in every area of healthcare practice that offer the genuine potential to revolutionise the delivery of care and, in so doing, relieve the financial pressures that ail the system,” said Stebbing.
“With its unconstrained approach, the company is well placed to benefit from the financial rewards that will accrue to those companies leading these innovations.”
The trust, as the name suggests, was set up to invest in the healthcare sector – both here in the UK and abroad – and it has a very rigid internal discipline to stock-picking.
The fund has a cap of 35 companies in which it can invest and while it takes stakes in specific businesses it does so to garner exposure to investment themes that are rigorously assessed to drive innovation and value.
In the period from October 7 to November 30 its managers generated a total return (share price growth plus dividends) of 20.5%. This comfortably beat the firm’s benchmark, which delivered a 6.9% return.