Biotechnology is an exciting industry, where technology creates medicine tailored to individuals. Carl Harald Janson, of International Biotechnology Trust, explains it to us.
Although investing in biotech firms is inherently risky – with no guarantee of therapies developed by companies going on to receive regulatory approval – the trust s approach is all about risk management .
First, it is well diversified, investing in some 60 quoted biotech companies, most of which are based in the United States.
Some are well established such as Gilead Sciences which has just donated 450,000 doses of its Covid-19 drug Veklury to help India fight a surge in coronavirus cases and deaths.
The trust also has exposure to unquoted biotech firms through a 7 per cent stake in fund SV Health Investors VI, a portfolio overseen by Kate Bingham who last year headed up the UK Vaccine Task Force, a group appointed by the Government to ensure access to coronavirus vaccines.
Questor is not complaining about the progress of the three healthcare trusts we have tipped, however. Shares in each have beaten the returns from the broader market for healthcare and biotechnology stocks over one, three, five and 10 years.
But neither is this column resting on its laurels, particularly in the case of International Biotechnology given that Carl Harald Janson, manager of the trust for more than seven years, has stepped down. Lead management of the trust has been handed to Ailsa Craig, who has worked alongside Mr Janson since 2013, and Marek Poszepczynski, who joined a year later.
Questor is reassured by Mr Janson’s successors’ long record of working alongside the manager. More stability is provided by Ms Bingham, who has been involved with the trust since the turn of the century and returned to run its small portfolio of unquoted investments in January after her time in charge of the Vaccine Taskforce.
Investment Week is hosting its Global Emerging Markets Briefing at a pivotal time for investors as they start to position for the recovery from the Covid-19 pandemic, although risks remain.
During this interactive briefing, we will hear from a number of global emerging market managers about their response to the extraordinary events of the past year and their outlook for the rest of the year and beyond.
The managers will identify where they are seeing the biggest opportunities and risks at the moment in emerging markets and explain the role their strategies could play in client portfolios.
Attendees will also get the chance to network with peers, quiz our speakers, as well as benefit from CPD points