All of the investment trusts in the AIC biotechnology and healthcare sector are on discounts and just two have had positive 12-month performance figures, according to Morningstar.
In a recent roundtable, manager of Bellevue (BB) Healthcare Paul Major said part of this overall underperformance was due to an influx of "dubious" companies. FTSE 250 BB Healthcare is the trust trading at the narrowest discount (2.4%) within its sector, according to Morningstar figures, and has returned 3.9% in 12 months, second only to Polar Capital Global Healthcare's substantial 23.5% return. Addressing the recent underperformance of the sector, Major said he was "not really sure why that is the case" but credited it to a recent flood of IPOs of poorly performing companies that ...
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