Worldwide Healthcare Trust
Scope for the trust to get back on track in 2024
8 January 2024
Worldwide Healthcare Trust’s (WWH’s) co-managers, Sven Borho and Trevor Polischuk, at global healthcare specialist OrbiMed, are disappointed with WWH’s performance as, in recent years, the trust has faced both top-down and bottom-up headwinds. The managers remain confident that investors will return to focusing on positive healthcare industry fundamentals, which include high levels of innovation, accompanied by an elevated number of new product approvals and robust M&A activity ahead of an upcoming patent cliff. Borho and Polischuk continue to favour the prospects for emerging (smaller-cap) biotech rather than major pharma stocks, particularly as the biotech sector has experienced the longest and largest absolute and relative drawdown in its history. MORE »
Attractive industry fundamentals and valuations
20 July 2021
Worldwide Healthcare Trust (WWH) has two very experienced co-managers, Sven Borho and Trevor Polischuk at healthcare specialist investor OrbiMed. They remain very positive on the outlook for the healthcare sector due to favourable industry fundamentals and relatively attractive valuations. Despite a period of underperformance this year due to the outperformance of large-cap companies and a market rotation from growth to value stocks given increased confidence in a post-pandemic economic rebound, WWH retains a long-term record of outperformance versus the MSCI World Health Care index. In FY21 the trust posted its fourth-best year of excess return versus its benchmark in its 26-year history; this was primarily due to successful stock selection in both listed and unquoted companies. MORE »
Managers optimistic about 2021 prospects
5 February 2021
Worldwide Healthcare Trust (WWH) is managed by Sven Borho and Trevor Polischuk at global healthcare specialist OrbiMed. Although the Democrats have regained control of the Senate, the managers consider it more of a blue ‘trickle’ than a ‘wave’ as they won by the narrowest of margins and they believe President Biden has far more pressing issues to deal with than healthcare reform. Borho and Polischuk are optimistic about the prospects for global healthcare stocks this year, supported by a ‘golden era’ of innovation, a constructive regulatory environment and the potential for robust levels of mergers and acquisition (M&A) activity. MORE »
Marking 25 years with strong performance
30 July 2020
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. MORE »
Managers remain optimistic on sector’s prospects
7 January 2020
Worldwide Healthcare Trust (WWH) is managed by Sven Borho and Trevor Polischuk at OrbiMed. They remain very constructive on the prospects for the global healthcare sector – despite headline risk ahead of the 2020 US presidential election – citing industry innovation, which they suggest is at ‘unparalleled’ levels, and has historically been an important driver of the sector’s performance. Although investor concerns about drug pricing in the US remain, Borho and Polischuk say that pharma and biotech companies are ‘still getting paid and are generating attractive returns’. In addition to opportunities in developed markets, they are also finding interesting investment ideas in China, due to higher product approval standards and a relaxation of listing requirements for fledgling companies. MORE »
Managers bullish on healthcare sector outlook
12 June 2019
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. MORE »
Expecting a less turbulent industry environment
22 November 2018
Worldwide Healthcare Trust (WWH) is managed by Sven Borho and Trevor Polischuk of specialist healthcare investor OrbiMed. The managers are positive on the outlook for healthcare stocks in 2019, following a volatile period for global equities so far in 2018. They see reduced political pressure on the sector following the US mid-term elections and believe there will be more of a focus on company fundamentals. The managers cite a series of novel therapeutic products under development, which could meaningfully bolster the revenues and earnings of companies that can successfully bring these drugs to market. In addition, they suggest that an increase in mergers and acquisitions could also focus investor attention on the healthcare sector’s potential. MORE »
Positive industry fundamentals
26 July 2018
Worldwide Healthcare Trust (WWH) is managed by Sven Borho and Trevor Polischuk, of OrbiMed, one of the world’s leading specialist healthcare investors. The managers are very excited about the prospects for the global healthcare sector for the balance of the year. The threat of regulated drug pricing in the US is abating and the sector is experiencing a period of high innovation, which could lead to the launch of therapies with multi-billion-dollar sales potential. Within the key US market, the regulatory environment is supportive in terms of bringing new products to market, share price valuations are low versus history, and there is a likelihood of increased merger and acquisition (M&A) activity following US tax reform. WWH has a very strong, long-term investment track record. From inception in 1995 until the end of FY18, its average NAV total returns of 15.8% pa are significantly ahead of the benchmark’s average total returns of 11.6% pa. MORE »
Business as usual under new lead manager
26 March 2018
Worldwide Healthcare Trust (WWH) is managed by OrbiMed Capital, a leading specialist healthcare investment company. Since December 2017, following the departure of Sam Isaly, its lead manager is Sven Borho, who is a founding partner of OrbiMed and has been involved with the management of WWH since the trust’s launch in April 1995. Borho is bullish on the outlook for the global healthcare sector due to continued innovation, a benign regulatory environment, an expected acceleration in mergers and acquisitions, and inexpensive company valuations. WWH has a positive long-term performance track record. Its NAV and share price total returns have exceeded the MSCI World Health Care index total returns over one, three, five and 10 years. MORE »
Business as usual under new lead manager
26 March 2018
Worldwide Healthcare Trust (WWH) is managed by OrbiMed Capital, a leading specialist healthcare investment company. Since December 2017, following the departure of Sam Isaly, its lead manager is Sven Borho, who is a founding partner of OrbiMed and has been involved with the management of WWH since the trust’s launch in April 1995. Borho is bullish on the outlook for the global healthcare sector due to continued innovation, a benign regulatory environment, an expected acceleration in mergers and acquisitions, and inexpensive company valuations. WWH has a positive long-term performance track record. Its NAV and share price total returns have exceeded the MSCI World Health Care index total returns over one, three, five and 10 years. MORE »
Investing in healthcare across the globe
25 May 2017
Worldwide Healthcare Trust (WWH) aims to generate capital growth from a global portfolio of healthcare stocks. While around two-thirds of the portfolio is invested in the US, there is a meaningful c 15% exposure to emerging markets and WWH can invest across all subsectors of the healthcare industry. Since launch, the trust has been managed by Sam Isaly, who is co-founder of OrbiMed Capital, the largest dedicated healthcare investment manager in the world. WWH has a strong investment track record – it has outperformed its benchmarks over one, three, five and 10 years. WWH’s discount has been on a narrowing trend since mid-2016; its shares are now in line with cum-income NAV. MORE »
Finding investment opportunities in healthcare
23 November 2016
Worldwide Healthcare Trust (WWH) aims to generate long-term capital growth from investing in a portfolio of global healthcare stocks; a differentiating feature is the trust’s c 15% exposure to emerging markets. Following a change in mandate in 2010, WWH now invests in all sectors of the healthcare industry. Performance versus its benchmarks is particularly strong over three, five and 10 years. Sam Isaly has been lead manager since launch in 1995; he is co-founder of the world’s largest specialist healthcare investment company, OrbiMed Capital. MORE »
Globally diversified healthcare portfolio
17 May 2016
Worldwide Healthcare Trust (WWH) has a track record of more than 20 years investing in the healthcare sector. A change to its mandate six years ago has seen it expand its remit from pharmaceuticals and biotechnology to the whole healthcare sector. While the core of the portfolio is invested in US stocks, WWH is differentiated from the majority of peers by its c 15% weighting in emerging markets. The trust has substantially outperformed its benchmarks over three, five and 10 years and benefits from the stable management of manager Sam Isaly, a founding partner of specialist healthcare investment manager OrbiMed. The discount to NAV of c 7% is wider than long-term averages, suggesting potential to narrow from here. MORE »
Sector specialist continues to outperform
23 July 2015
Worldwide Healthcare Trust (WWH) offers broad exposure to the global healthcare sector, including investments in healthcare services and medical devices alongside the more mainstream areas of pharmaceuticals and biotechnology. Healthcare has performed strongly in recent years, and WWH has outperformed its benchmark, the MSCI World Health Care Index, in three of the past four years to 30 June, particularly so in the last two years. While such strong performance may spark fears that a rerating is overdue, the manager points to continued favourable fundamentals for the sector, with the pace of drug discovery and an accommodative regulatory backdrop providing support. MORE »
Healthy returns from an established specialist
30 September 2014
Worldwide Healthcare Trust (WWH) invests globally in companies involved in healthcare-related activities. It is overweight biotechnology and underweight pharmaceuticals relative to its benchmark MSCI World Health Care Index, and as such has outperformed on the back of strong returns from biotech over the past three years and in the sector’s recent bounce back from a spring sell-off. Its managers – whose sole focus is on life sciences – adopt a bottom-up investment process focused on understanding both the science and the financials behind potential investments. In spite of strong performance, WWH’s discount has widened recently and may indicate an attractive entry point for long-term investors. MORE »
Performing global healthcare investment trust
13 March 2014
Worldwide Healthcare Trust (WWH) provides a diversified but managed exposure to the global healthcare sector; the trust’s continuing overweight of biotech continues alongside an underweight of the large pharmaceutical sub-sector. Long-term sector fundamentals are backed by a growing and ageing population. Strong price appreciation has outstripped earnings and valuations have expanded, but not unduly so in the manager’s view. He believes there are many companies with good prospects and innovative products trading at attractive valuations to be found within this broad universe. MORE »
Global healthcare exposure
1 August 2013
Worldwide Healthcare Trust (WWH) is a UK-registered investment trust offering diversified exposure to both the pharmaceutical and biotech sectors. The overall healthcare sector has performed strongly with WWH’s benchmark, the MSCI World Healthcare Index, up 32%, 72% and 116% over one, three and five years. The manager sees a broad range of opportunities and is positive on the outlook for the next 12 months; biotech and pharma valuations have risen from 10-year lows in 2009, but remain below their 10-year averages, suggesting further potential remains. MORE »
Continued strong performance
15 October 2012
Worldwide Healthcare Trust (WWH) is a UK-registered investment trust offering diversified exposure to both the pharmaceutical and biotech sectors. It has a strong, long track record and during the last 12 months has returned 26.3% and 26.2% in terms of share price total return and NAV total return respectively, outperforming its benchmark, the MSCI World Healthcare Index (sterling adjusted), which returned 21.5%. WWH provided 16% year-on-year dividend growth for 2012 (15.0p to 17.5p) while adding 4.3p to revenue reserves. Biotech and pharma valuations, when compared to their longer-term averages, remain at lows despite the recent uplift, suggesting further potential remains. In addition, the outlook for M&A remains positive as big pharma companies seek to replenish their product pipelines. MORE »
Healthcare valuations at historic lows
10 February 2012
Worldwide Healthcare Trust PLC (WWH) is a UK-registered investment trust, offering diversified exposure to both the pharmaceutical and biotech sectors, and notable for its long track record. It has returned 13.0% in terms of both price and NAV total return during the past 12 months, slightly underperforming its benchmark, the MSCI World Healthcare Index (sterling adjusted), which returned 13.5%. Despite the uplift, valuations remain close to historical lows and, as such, significant upside potential remains. WWH has provided 76% year-on-year dividend growth for 2011 and its recent interims indicate that, at the halfway stage, it has sufficient revenue reserves to allow it to maintain the dividend at the increased level for 2012. MORE »
Positive outlook for healthcare
24 June 2011
Worldwide Healthcare Trust PLC (WWH) has put in a respectable performance during the past 12 months, adding value in absolute terms, and effectively matching its blended benchmark in terms of both price and NAV. The manager considers that healthcare underperformed the broader market during most of 2010, but that a much-anticipated relief rally has now arrived. The manager considers that, despite the uplift, valuations remain close to historical lows and, as such, there remains significant upside potential. WWH has provided 76% year-on-year dividend growth and is the only UK-registered investment trust with a long-term track record to offer a diversified exposure to both the pharmaceutical and biotech sectors. MORE »
