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Healthcare sector ‘ripe for investment’

Healthcare sector ‘ripe for investment’

Healthcare and biotechology are areas “ripe for investment”, with advisers being able to access such sectors for their clients through investment trust companies.

Sam Islay, manager of the Worldwide Healthcare Trust, said the global ageing population, combined with the increased consumption of healthcare services, mean the fundamentals for investing in healthcare are “as positive as ever”.

He said: “We are beginning to reap the benefits of one of mankind’s greatest achievements - the sequencing of the human genome in 2000.

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“This has led to a huge leap in scientific research over the past decade driving growth in the therapeutics sector.”

For example, biotechnology companies are coming to the market with a series of blockbuster drugs in areas such as oncology, Hepatitis C and Multiple Sclerosis.

“These game changing treatments could reach multi-billion dollars of peak sales”, Mr Islay added.

Share price total return on £100 lump sum (to 31 May 2015)
1 year3 years5 years10 years
Overall weighted investment company average ex VCTs112.65155.85175.15264.00
Weighted average sector specialist 158.12268.86378.23519.15
Worldwide Healthcare149.87266.18321.02474.76

According to the AIC, the healthcare and biotechnology sector is currently on an average discount of 4.9 per cent compared to 2.2 per cent for the wider industry.