Cristian Angeloni, Investment Week, 30 October 2025:
The board of Bellevue Healthcare trust (BBH) has decided to switch investment manager following a strategic review on the future of the vehicle.
Shareholders will be asked to vote on the decision, which will see current manager Bellevue Asset Management replaced by Columbia Threadneedle Investments.
The BBH board explained that, should Columbia Threadneedle be given the mandate, it will manage the portfolio with a similar investment approach to the Seligman Healthcare strategy by adopting both long and short positions..
Under the proposals, the new investment management agreement will include a management fee of 0.95% of net asset value per annum and a performance fee of 15% of any growth in net asset value in any financial year “in excess of a hurdle equal to the average three-month SONIA rate”. The performance fee will be subject to an undisclosed NAV high water mark.
The current discount management mechanism – called ‘Zero Discount Policy’ – and the annual redemption will also be replaced with quarterly liquidity opportunities for up to 15% of BBH’s issued share capital alongside buybacks, in a bid to target a discount of 5% or less in normal market conditions.
James Carthew, head of investment company research at QuotedData, said: “I have been advocating a change of manager as a solution to Bellevue Healthcare’s woes, so the appointment of Columbia Threadneedle is a welcome development.”
“Putting an end to the zero discount policy is also a good idea,” Carthew said.
“However, quarterly liquidity opportunities, albeit limited to 15% of assets, could frustrate the manager’s ability to take a long-term view and shareholders will lose some of the benefits of an investment company structure.”
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