International Biotechnology Trust (IBT) aims to deliver a combination of strong capital growth and consistent dividend income from investing in biotechnology companies around the world. As we discuss in the Portfolio section, the managers believe IBT is exposed to a long-term secular growth theme, but in a sector that trades on less demanding P/E’s than wider equities. Performance from the trust this year has been strong. Up until July, the sector and the trust performed strongly relative to wider equities, but since then global equities have outperformed. That said, since the summer, IBT has outperformed its benchmark, and calendar year to date, the NAV is ahead of the benchmark by 10.3% (to 02/12/2020). The team of three, led by Carl Harald Janson, employs a distinctive approach that has enabled the trust to achieve this outperformance. They take a measured approach to investment, backed by identifying clear medical needs and understanding the science behind product research. However, an important differentiator is that the team prefers to reduce risk to specific stock moving events, such as clinical trial results, ahead of its announcement. This risk management tool has helped the team deliver a lower volatility return stream than the benchmark, whilst still enabling IBT to outperform. Another key differentiator, and a strong contributor to returns this year, is the exposure to private companies. Investments here are led by Kate Bingham, offering exposure to early stage companies with explosive growth potential. IBT pays a Dividend from capital of 4% of NAV each year (NAV value at end of the previous August). On 15 December 2020, IBT announced an interim dividend of 14.2p per share to be paid on 29 January 2021. Assuming the same amount is paid as a second interim dividend, the shares yield 3.5% at the current price.
04 Jan 2021
International Biotechnology - Overview
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International Biotechnology - Overview
International Biotechnology Trust PLC (IBT:LON) | 641 0 0.0% | Mkt Cap: 241.4m
- Published:
04 Jan 2021 -
Author:
William Heathcoat Amory -
Pages:
7
International Biotechnology Trust (IBT) aims to deliver a combination of strong capital growth and consistent dividend income from investing in biotechnology companies around the world. As we discuss in the Portfolio section, the managers believe IBT is exposed to a long-term secular growth theme, but in a sector that trades on less demanding P/E’s than wider equities. Performance from the trust this year has been strong. Up until July, the sector and the trust performed strongly relative to wider equities, but since then global equities have outperformed. That said, since the summer, IBT has outperformed its benchmark, and calendar year to date, the NAV is ahead of the benchmark by 10.3% (to 02/12/2020). The team of three, led by Carl Harald Janson, employs a distinctive approach that has enabled the trust to achieve this outperformance. They take a measured approach to investment, backed by identifying clear medical needs and understanding the science behind product research. However, an important differentiator is that the team prefers to reduce risk to specific stock moving events, such as clinical trial results, ahead of its announcement. This risk management tool has helped the team deliver a lower volatility return stream than the benchmark, whilst still enabling IBT to outperform. Another key differentiator, and a strong contributor to returns this year, is the exposure to private companies. Investments here are led by Kate Bingham, offering exposure to early stage companies with explosive growth potential. IBT pays a Dividend from capital of 4% of NAV each year (NAV value at end of the previous August). On 15 December 2020, IBT announced an interim dividend of 14.2p per share to be paid on 29 January 2021. Assuming the same amount is paid as a second interim dividend, the shares yield 3.5% at the current price.