Worldwide Healthcare Trust (WWH) is celebrating its 25th anniversary. Managed by Sven Borho and Trevor Polischuk at OrbiMed, the trust has an enviable absolute and relative performance track record. The managers remain very constructive on the prospects for the global healthcare sector, suggesting that while President Trump has once again focused on the issue of US drug pricing, his ‘bark is worse than his bite’, and his efforts are a negotiating ploy to get the healthcare industry to the table to discuss reforms. They highlight minimal disruptions at the US Food and Drug Administration (FDA) as a result of the coronavirus, and expect an uptick in industry mergers and acquisitions (M&A) in H220 and beyond.
Healthcare stocks have performed better than the global market over the long term and, due to a favourable industry backdrop,there is potential for this to continue. Demand is robust, innovation is at an elevated level, until very recently the political environment has been more benign and there could be an acceleration in M&A, which should be supportive for the sector’s performance.
- Well-established trust offering diversified exposure to the global healthcare sector across the market cap spectrum.
- Strong absolute results – NAV and share price total returns of c 20% pa over the past decade and outperformance versus the MSCI World Health Care Index over the past one, three, five and 10 years.
- Experienced managers, able to draw on the resources of industry specialist OrbiMed’s large investment team.
WWH’s shares regularly trade close to NAV. The current 1.1% premium to cumincome NAV compares to a range of an average 0.3% premium to an average 3.8% discount over the past one, three, five and 10 years. While the trust aims to generate long-term capital growth, it also pays semi-annual dividends. Based on its current share price, WWH offers a 0.7% yield.