Mr Isaly says: “In the last fiscal year, the large-cap biotech companies did particularly well. Valuations were moderate and there were, in addition, some company-specific things that did very well.”
The manager admits: “I must say this, there’s not a whole lot to choose from in the UK – the selection is rather limited, although the UK has always been good at early technological development. But it’s a little less dramatically successful in the commercialisation of that.”
Mr Isaly remains confident of the fund’s performance prospects. He observes: “We have good long-term performance and we expect that to continue. We think we have the resources and the skills to continue to deliver strong returns on investment.”
EXPERT VIEW
Darius McDermott, managing director, Chelsea Financial Services
A long tenure by the management team is often a good sign, and this investment trust has had the same managers since 1995. The portfolio is comprised mostly of large-cap stocks that are listed in America, which is consistent with its benchmark. Recent outperformance is attributed to healthcare services and pharmaceuticals. Tail winds from recent US healthcare reforms and solid corporate earnings have had a stronger-than-expected impact. The fund has comfortably outperformed its benchmark over one, three and five years, in terms of both net asset value and share price.
