5th Jun 2019 17:49
LONDON (Alliance News) - Worldwide Healthcare Trust PLC on Wednesday said it underperformed against its benchmark in its most recent year due to being underweight in global pharmaceuticals.
For its financial year ended March 31, Worldwide Healthcare recorded a net asset value total return of 14%, falling behind the MSCI World Health Care Index which returned 21% on a net total return, sterling-adjusted basis.
The global pharmaceutical sector outperformed Worldwide Healthcare's benchmark significantly in the year and had particularly strong returns. However, Worldwide Healthcare had a lower allocation in that sector.
Worldwide Healthcare Chair Martin Smith said: "Our portfolio manager considered, and continues to consider, that the major innovative opportunities offered within the healthcare sector are to be found elsewhere, including in emerging markets and emerging biotechnology, where the company has an overweight allocation. Both of those sectors underperformed the benchmark in the financial year.
"Exposure to healthcare services, speciality and generic pharmaceutical sectors also detracted during the year, while positive relative performance arose from exposure to the medical devices sector and Japan."
The company's NAV per share rose to 2,722.9 pence on March 31 from 2,411.1p the year before.
A second interim dividend of 20.0p per share was declared, meaning dividends per share totalled 26.5p, up 51% year-on-year from 17.5p.
"Despite continued volatility in the healthcare sector due, in part, to increased levels of political rhetoric in the run-up to the US 2020 presidential election, fears of a slowing economy and continued US-China trade wars, our Portfolio Manager expects the outlook to remain positive," Smith said.
"Our portfolio manager's focus remains on the selection of stocks with strong prospects for capital enhancement and your Board firmly believes that the long-term investor will continue to be well rewarded."
Shares in Worldwide Healthcare closed down 0.4% at 2,590.00p on Wednesday.
Related Shares:
Worldwide Healthcare Trust