17th Mar 2025 09:58
(Alliance News) - Bellevue Healthcare Trust PLC on Monday reported a rise net asset value in 2024, as the company highlighted a positive outlook for US small and mid-cap firms.
The London-based investment trust focused on equities in the healthcare sector said its net asset value at November 30 was 154.32 pence per share, up from 143.87p a year before.
NAV total return for financial year 2024 was 11.1%, swung from negative 12.7% in financial 2023. The was slightly below the MSCI World Healthcare index total return of 11.5%.
Bellevue Healthcare Trust share price total return was positive 13.7%, swung from negative 15.1%.
Chair Randeep Grewal commented: "It is encouraging to note that share price and NAV performance matched the index in the financial year to end November 2024. Nevertheless longer-term performance has been disappointing in both relative and absolute terms. The portfolio focus is on a small number of high-conviction ideas, mainly concentrated in small or mid-cap stocks where the investment manager believes their research and investment expertise find added value. However, the index performance has been dominated by the re-rating of a few very large‑cap stocks, similar to the 'magnificent seven' impact on the broader market.
"I cannot emphasise enough the focus of the board and Bellevue on improving performance and tightening risk management. Two areas of discussion are implementing a more rigorous sell discipline and increasing the number of portfolio positions which would reduce volatility."
Chair Grewal and director Paul Southgate will not run for re-election at the company's annual meeting in April. The two directors had committed to retire nine years after the trust's founding in 2016.
The firm's board has appointed Kate Bolsover as chair. "She brings a wealth of investment trust experience and knowledge and is indeed an experienced chairman," Grewal said.
Looking ahead, Bellevue expects value generation from smaller and mid-cap companies as share prices of larger US firms wane.
The company noted that the healthcare sector is trading at a price-earnings multiple discount to the wider market. It expects the new US administration under President Donald Trump to streamline mergers and acquisitions.
"This, combined with the more positive outlook for the sector as a whole provides reasons to be optimistic for the future growth in the value of the portfolio," Bellevue added.
The company paid a total dividend of 5.04 pence for financial 2024, 3.5% of NAV. On Monday, it said it plans to pay a total dividend 5.40p, also 3.5% of NAV, and composed of interim and final dividends of 2.70p each.
Bellevue Healthcare Trust PLC traded 0.8% lower at 125.36p on Monday morning.
By Aidan Lane, Alliance News reporter
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