logo-loader
FinanceBanks
BB Healthcare Trust PLC

BB Healthcare Trust expects stock-specific fundamentals to hold sway in the sector in the second half

"Valuations look undemanding in a number of healthcare sub-sectors and the need for healthcare products and services will continue to grow into the foreseeable future," said Professor Justin Stebbin, the trust's chairman

Drugs in a container
"Drug stocks and the wider drug supply chain have been whipsawed by the twin spectres of Trump-driven pricing reform and Amazon-induced obsolescence"

BB Healthcare Trust PLC (LON:BBH) said the six months to the end of May had been another period of positive progress.

During the period, the company's share price and net asset value (NAV) recorded total returns in sterling terms of 4.0% and 7.5% respectively.

READ: BB Healthcare Trust delivers as it comfortably beats its benchmark

In comparison, the MSCI World Healthcare Index (in sterling terms) delivered a total return of 1.7%.

In the period since the trust was set up to 31 May 2018, the company's share price and NAV have delivered total returns in sterling terms of 25.3% and 26.0% respectively, versus a total return of 16.4% on the MSCI World Healthcare Index.

The chairman, Professor Justin Stebbing, said the first half of 2018 saw a continuation of the volatile macro-political environment that characterised the prior year, making a difficult climate for equity investors.

The healthcare sector, which is the trust's area of focus, “has again been caught up in US polemics”, Stebbing said.

“With mid-term electioneering in full swing, sentiment is unlikely to improve markedly in the near-term. In such a context, allied to the fading earnings power of the large pharmaceutical companies that account for almost half the benchmark value in the quoted sector, it is not a surprise that healthcare underperformed the MSCI World Index by 1.6% during the period,” Stebbing noted.

In spite of the sector's lacklustre performance over the period, the trust's management remains very optimistic regarding the investment return opportunity in healthcare.

The BB chairman predicted a pivot back toward stock-specific fundamentals in the second half of the year.

Shares in BB Healthcare currently trade at 132p, a shade above the NAV of 130.9p, as at July 10.

Quick facts: BB Healthcare Trust PLC

Price: £1.26

Market: LSE
Market Cap: £527.83 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of BB Healthcare Trust PLC named herein, including the promotion by the Company of BB Healthcare Trust PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Capital Network's Riccardo Lowi on BB Healthcare Trust PLC

Riccardo Lowi, Capital Network's healthcare analyst, takes a look at BB Healthcare Trust PLC (LON:BBH), its outlook as well as investment case.

on 07/20/2017

RNS

Issue of Equity

2 days, 18 hours ago

Net Asset Value(s)

2 days, 21 hours ago

Net Asset Value(s)

4 days ago

Net Asset Value(s)

4 days, 23 hours ago

Scrip Dividend Scheme

5 days, 3 hours ago

Issue of Equity

5 days, 15 hours ago

Net Asset Value(s)

5 days, 22 hours ago

Scrip Dividend Reference Price

6 days, 18 hours ago

2 min read