Update: The BB HealthCare Trust ITF has now been announced. Click here to view it.

BB HealthCare Trust is rumoured to be preparing to IPO, presenting a potential new opportunity to gain exposure to the healthcare market through investing in a managed investment trust. The new investment fund will be managed by Bellevue Asset Management AG, which already has funds under management in the healthcare industry.

What’s the target?

  1. To beat the total return of the MSCI World Healthcare Index (in sterling) on a rolling three-year period (the index total return including dividends reinvested on a net basis)
  2. To seek to generate a double-digit total shareholder return per annum over a rolling three-year period
  3. To target an annual dividend of 3.5p per ordinary share for the first year and then 3.5% for the subsequent financial years

What will it invest in?

BB Healthcare will be a long-only (buy and hold) investment trust that will invest in listed healthcare stocks globally. It will be able to invest regardless of market cap, subsector or region and will be concentrated with a maximum of 35 holdings.

What is the underlying exposure?

Within the global healthcare industry, the fund intends to invest in pharmaceuticals, biotechnology, medical devices and equipment, healthcare insurers and facility operators, information technology (where the product or service supports, supplies or services the delivery of healthcare), drug retail, consumer healthcare and distribution.

Additionally, no single holding will represent more than 10% of the fund and maintaining liquidity will be a key objective for the portfolio managers.

Who will manage the fund?

Daniel Koller

Daniel has more than 16 years' experience in the healthcare sector. He joined Bellevue in 2004 and was appointed head of portfolio management for the investment company BB Biotech AG in 2010. Since becoming head, BB Biotech has returned an annualised total shareholder return of approximately 27%.

Previously, he was an asset manager for equity4life Asset Management Ltd and, prior to that, an equity analyst at UBS Warburg, where he covered the biotechnology sector. Daniel has a PhD in Biotechnology from the Swiss Federal Institute of Technology (ETH) Zurich.

Paul Major

Paul has 18 years' experience in the healthcare sector on the sell-side and was top-rated by a number of institutional investment clients.

He was one of the first research partners at Redburn, Europe's leading independent research firm. His work there included bespoke projects on healthcare portfolio construction for several institutions.

Paul was previously an analyst and corporate financier at UBS Warburg and studied Biochemistry.

Expected timetable

  • Publication of the Prospectus: Early November 2016
  • Publication of the results of the Issue: Late November 2016
  • Admission of and dealings in ordinary shares: Early December 2016

The BB HealthCare Trust Plc ITF has been announced

Go to the ITF announcement