International Biotechnology Trust plc - IBTA smoother ride in biotech investing
Appointment of New Fund Manager
With effect from 20 November 2023, Schroder Unit Trusts Limited (SUTL) has been appointed as the Company’s Fund Manager and Alternative Investment Fund Manager (AIFM).
Access the fast-growing biotechnology sector through an actively managed, diversified investment trust.
Targeting high growth, International Biotechnology Trust plc (IBT) backs innovative companies addressing high unmet medical needs and offers investors the opportunity for good returns while making a positive social impact.
Seeking the best in biotech
International Biotechnology Trust invests in around 100 of the most innovative, high quality quoted and unquoted companies across the entire spectrum of the biotech and other life sciences sectors.
A keen focus on risk management
An acute understanding of the biotechnology investment cycle and prudent steps to reduce risk ahead of binary events has allowed the trust to outperform the index (NASDAQ Biotechnology Index) and peers with lower volatility.
A dividend of 4% of closing net asset value, paid biannually, offers investors a highly differentiated and sustainable source of income.
At a glance
About our process and portfolio
International Biotechnology Trust plc
Source: Kepler, 2023
Source: Morningstar, November 2023
In the media
Investing in the International Biotechnology Trust plc
Non-Mainstream Pooled Investments (NMPI) Status
The Company currently conducts its affairs so that its shares can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company's shares are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.
International Biotechnology Trust plc - Risk Disclosures
Capital risk / distribution policy: As the Company intends to pay dividends regardless of its performance, a dividend may represent a return of part of the amount you invested.
Concentration risk: The Company's investments may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the Company, both up or down.
Currency risk: The Company may lose value as a result of movements in foreign exchange rates, otherwise known as currency rates.
Gearing risk: The Company may borrow money to make further investments, this is known as gearing. Gearing will increase returns if the value of the investments purchased increase by more than the cost of borrowing, or reduce returns if they fail to do so. In falling markets, the whole of the value in that such investments could be lost, which would result in losses to the Company.
IBOR risk: The transition of the financial markets away from the use of interbank offered rates (IBORs) to alternative reference interest rates may impact the valuation of certain holdings and disrupt liquidity in certain instruments. This may impact the investment performance of the Company.
Liquidity risk: The price of shares in the Company is determined by market supply and demand, and this may be different to the net asset value of the Company. In difficult market conditions, investors may not be able to find a buyer for their shares or may not get back the amount that they originally invested. Certain investments of the Company, in particular the unquoted investments, may be less liquid and more difficult to value. In difficult market conditions, the Company may not be able to sell an investment for full value or at all and this could affect performance of the Company.
Market risk: The value of investments can go up and down and an investor may not get back the amount initially invested.
Operational risk: Operational processes, including those related to the safekeeping of assets, may fail. This may result in losses to the Company.
Performance risk: Investment objectives express an intended result but there is no guarantee that such a result will be achieved. Depending on market conditions and the macro economic environment, investment objectives may become more difficult to achieve.
Share price risk: The price of shares in the Company is determined by market supply and demand, and this may be different to the net asset value of the Company. This means the price may be volatile, meaning the price may go up and down to a greater extent in response to changes in demand.
Smaller companies risk: Smaller companies generally carry greater liquidity risk than larger companies, meaning they are harder to buy and sell, and they may also fluctuate in value to a greater extent.
Valuation risk: The valuation of some investments held by the Company may be performed on a less frequent basis than the valuation of the Company itself. In addition, it may be difficult to find appropriate pricing references for these investments. This difficulty may have an impact on the valuation of the Company and could lead to more volatility in the share price of the Company, meaning the price may go up and down to a greater extent.