Unquoteds outperform for International Biotechnology Trust – International Biotechnology Trust (IBT) has reported annual results to 31 August 2019. The majority of IBT’s portfolio holdings are based in the US.
- Share price (2.1%)
- NAV (6.8%)
- NASDAQ Biotechnology Index (NBI) (9.8%)
- FTSE All-Share Index: +0.4%
Quoted portfolio outperformed benchmark over challenging period
IBT’s quoted investments returned (8.6) over the period, which was ahead of the NBI benchmark. IBT’s chairman, John Aston OBE, said: “Negative returns are always disappointing but this has largely been driven by macroeconomic and political factors such as Brexit, the China-US trade dispute and rising tensions in the Middle East. The Fund Manager has positioned the portfolio cautiously away from small cap companies with financing risk, and further diversified the portfolio holdings to ensure the Company is not exposed to unnecessary risk during volatile periods. The Fund Manager’s Review below contains a more detailed review of market conditions.”
Outperformance from unquoteds
John added: “The company continues to enjoy success through its access to an unquoted element of biotechnology, a unique differentiating feature allowing investors access to the full spectrum of this exciting sector. Our unquoted portfolio continues to perform well and has easily outperformed the NBI over the long-term.
We are now 68.7% invested of our $30m commitment to SV Life Sciences Fund VI (SV Fund VI). Following SV Fund VI’s latest quarterly valuation report, our average investment has an IRR of 16.6%. During the year, SV Fund VI made three distributions to the company after successfully exiting investments, as some of these impressive gains were realised.
Our directly-held unquoted portfolio continues to yield positive results, with the approval of Ikano’s Nayzilam Nasal Spray and the performance of Kalvista being particular highlights. Overall, the unquoted portfolio generated a return of 16.3%.”
IBT: Unquoteds outperform for International Biotechnology Trust