The final portfolio will typically consist of around 50 stocks across the market cap, with a focus on quality/later-stage opportunities that have a greater chance of making it to market.
Polar Capital Global Healthcare Trust – the diversified approach
This trust invests in healthcare stocks from around the globe.
These companies will predominantly come from four sub-sectors: pharmaceuticals, biotechnology, medical technology, and healthcare services.
The portfolio is split into two segments: growth and innovation with a circa 90/10 split.
The growth element is made up of predominantly larger companies, whereas the innovation pot will invest into medium and smaller companies that have the potential for greater growth in the long run.
Scottish Mortgage Investment Trust – the stock picker
The managers of this trust aim to identify businesses that have the potential to disrupt their own industries, with sustainable business models in excess of five years.
As a result, the portfolio tends to have a relatively high allocation to technology and healthcare companies.
The trust currently has biotech firms Moderna (9.4 per cent) and Illumina (3.6 per cent) among its top five holdings.
Darius McDermott is managing director of Chelsea Financial Services and FundCalibre
