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BB Healthcare Trust PLC

BB Healthcare Trust - Positioned to Maintain Returns

Healthcare remains a highly attractive sector, supported by a tidal wave of innovation in both therapeutics and the provision of healthcare services
BB Healthcare team is now building up on 2017 outperformance (+4.9%, despite currency headwinds) and asset growth
Expect 2018 stocks' performance to be driven more by fundamentals (and M&A), less by political issues (tax reforms, Obamacare repeal)
BB Healthcare portfolio best positioned to capture the strongest emerging themes in healthcare, across bio-pharma, services, wellbeing
Reiterated commitment to returning capital via yearly dividends of 3.5% of NAV

Executive summary

As discussed in our initiation note, BB Healthcare decided not to hedge their currency exposure. Considering that their exposure to the USD is likely to be much higher than the benchmark global healthcare index, their FY 2017 performance was correspondently over-penalized by the sterling weakness. However the Trust follows a bottom-up approach with an investment horizon of 3-5 years, and we believe that management is rightly focusing on key industry themes and fundamentals rather than short-term currency volatility.

 
Leverage at the end of February 2018 stood prudently at 7.3%, well within the expected long-term 5-10% range.

Quick facts: BB Healthcare Trust PLC

Price: £1.27

Market: LSE
Market Cap: £535.48 m
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What's in the report?

Financial results and forecasts
Growth drivers
Management
Market conditions
Milestones & inflection points

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Full interview: BB Healthcare's Paul Major confident in the long-term...

BB Healthcare Trust PLC (LON:BBH) portfolio manager Paul Major discusses with Proactive London's Andrew Scott how the fund's been performing, his near-term expectations as well as general investor sentiment in the healthcare space. In the six months ended 31 May – the first half of BB...

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