Worldwide Healthcare Trust (WWH) is managed by Sven Borho and Trevor Polischuk at OrbiMed, a major global specialist healthcare investor. They remain constructive on the outlook for the sector, citing strong industry fundamentals, including a ‘golden era’ of innovation, a favourable regulatory environment and undemanding company valuations. There is also the potential for further industry mergers and acquisitions, which should be supportive for the sector’s performance. While WWH suffered a tough period of performance in H218, it maintains a very strong long-term record; over the last five and 10 years, it has generated NAV and share price total returns between 14.6% and 19.2% pa and has outperformed its benchmark over these periods in both NAV and share price terms.
The healthcare sector has significantly outperformed the global market over the long term. It offers a broad array of investment opportunities across a range of subsectors including pharma, biotech, medtech and healthcare services. Industry valuations are relatively attractive, which may provide an interesting entry point for investors seeking exposure to the sector.
Diverse exposure to the global healthcare sector, which over the long term has generated above-average total returns. Managed by a very experienced team that has generated a long-term record of outperformance. More concentrated portfolio focusing on the managers’ highest-conviction ideas across the market-cap spectrum.
WWH’s shares regularly trade close to NAV. Its current 1.4% share price premium to cum-income NAV compares with a 0.6% average premium over the last 12 months and average discounts of 0.9%, 2.5% and 4.7% over the last three, five and 10 years respectively. Although WWH aims to generate long-term capital growth, it also offers a 1.0% dividend yield. Gearing of up to 20% of NAV is permitted (net gearing of 7.4% at end-April 2019).