Woodford investment trust gets Trump boost

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The Woodford Patient Capital trust has enjoyed a 4 per cent boost to its NAV following the election of Donald Trump to the White House.

The Woodford fund was among the top-10 investment trusts on the day after the US election, with many of the best performing being focussed on biotech.

The best performing trust was the British & American trust, which rose 10.5 per cent, followed by International Biotechnology, which rose 8 per cent and Biotech Growth at 7.1 per cent, according to figures from QuotedData.

The International Biotechnology and Worldwide Healthcare trusts all appear.

The Woodford trust has a 38 per cent allocation to healthcare, compared to the benchmark’s 9.9 per cent.

Healthcare stocks had taken a hit in the lead up to the election as Democratic nominee Hillary Clinton spoke out against price gouging in the industry.

Woodford had previously spoken about how her comments had hit his portfolio, though he said he did not think her proposed policy would undermine his investment case for the stocks he holds in the sector.

QuotedData research director James Carthew says: “Clinton had planned to rein in drug pricing. Biotech and healthcare funds and funds with a big exposure to those sectors top the tables on a NAV and price basis.

But Carthew warns despite markets rallying after initial dips, volatility was set to stick as Trump’s policies and ability to implement them become clearer.

“It seems to us as though the biggest potential negative arises if he instigates a trade war. This fear is probably what is driving markets and the US dollar lower.”