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HBM Healthcare Investments
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==Discount: Potential to narrow after difficult spell== Since the bounce back from the global market sell-off in March/April 2020 in response to the emerging COVID-19 pandemic, HBMN’s shares have broadly traded at a premium to NAV, averaging 2.9% over the two years to 20 May 2022. However, the recent declines in growth stocks generally and biotech in particular have seen the share price drift to a discount, standing at 10.0% on 20 May 2022, on the back of relatively muted falls in the NAV per share. Given its substantial holdings in unlisted companies, coupled with a conservative valuation approach, HBMN’s NAV tends to be less volatile in down markets than is the case for funds invested only in listed equities. However, despite the fund’s superior performance record, the current discount is the second widest in the peer group (see Exhibit 12), suggesting scope for a re-rating should market sentiment improve. In the past 12 months HBMN’s shares have traded in a range from a 19.0% premium to a 19.2% discount to NAV, although in aggregate the discount/premium has been relatively narrow, averaging a 1.9% premium over one year and discounts of 0.2% and 6.2%, respectively, over three and five years. As such it has not been necessary for the board to take any action to manage the discount or premium, although Edison Investment Research notes that a new share buyback facility will be proposed at the shareholders’ meeting on 10 June 2022, replacing the current programme, which has been in place (although unused) since June 2019. '''Exhibit 14: Discount/premium over three years<ref>Source: Refinitiv, Edison Investment Research.</ref>''' [[File:Discount over three years.png|400px]] '''Exhibit 15: Buybacks and issuance<ref>Source: Morningstar, Edison Investment Research.</ref>''' [[File:Buybacks and issuance.png|400px]]
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