25th Apr 2019 15:26
LONDON (Alliance News) - International Biotechnology Trust PLC said Thursday it saw a mixed performance against its comparative indices in the first half of its financial year, despite a rise in net asset value.
The trust reported a net asset value negative return of 9.1% for the six months to the end of February. This outperformed the Nasdaq Biotechnology Index which fell by 9.8% but fell behind the FTSE All-Share Index, which dropped by 3.7%.
Net asset value per share as at February 28 was 623.99 pence, up from 603.21p the same date the year before.
The trust said that its performance was hampered by macroeconomic events during the period causing volatility in global markets, including Brexit, trade tensions, slowing economic growth and rising interest rates.
This led to a negative return from International Biotechnology's quoted portfolio at 9.9%. compared to a total return of 2.4% from its unquoted portfolio.
"After the market retractions in late 2018, followed by a strong recovery in early 2019, there remains a sense of uncertainty about where the market will head next. Political turmoil caused by Brexit, the fiscal dilemmas facing a number of EU states, China-US trade tensions and a slowdown in global growth all contribute to concerns. However, should solutions be found to the political issues and fears over an impending US recession prove unfounded, the market may climb higher," said Lead Investment Manger Carl Harald Jenson.
"Despite the recent uncertainty, the biotechnology sector is as strong as ever. In 2018, the FDA approved a record 59 new drugs, demonstrating its willingness to foster innovation, particularly in areas of high unmet medical need, an area in which the company is heavily invested," Jenson added.
Shares in International Biotechnology Trust were marginally lower at 623.84 pence on Thursday.
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