Schroders today announces that the board of International Biotechnology Trust (“IBT” or “the Company”) has decided to appoint Schroder Unit Trusts Ltd (“Schroders”) as investment manager and Alternative Investment Fund Manager following a competitive process conducted in consultation with shareholders.
Founded in 1994, IBT offers investors access to the fast-growing biotechnology sector through an actively managed, diversified fund. As well as investing in a wide-ranging portfolio of global quoted biotechnology stocks, IBT includes a small proportion of carefully selected unquoted investments which have the potential to deliver additional returns over the long term.
Schroders will retain IBT’s Portfolio Managers, Ailsa Craig and Marek Poszepczynski, to continue in their roles. Ailsa and Marek have been involved in managing IBT since 2006 and 2013 respectively and took over as Joint Lead Managers in March 2021. Since then the Company’s NAV has outperformed the benchmark Nasdaq Biotech Index by 6.7%[1].
Schroders will provide a platform from which IBT aims to continue to deliver its differentiated proposition of solid returns, lower volatility, and an annual dividend. There are also no plans to change the Company’s discount and premium management policy or Company strategy.
IBT will complement Schroders’ existing capability to provide UK investors with exposure to specific themes and sectors that are expected to benefit from long-term trends and structural changes in the global economy through a range of thematic funds. This range includes the recently launched Schroder Global Sustainable Food and Water Fund.
Alex Tedder, Head of Global and Thematic Equities at Schroders, commented:
“We are delighted to partner with IBT and look forward to working with the Board to continue to deliver the Company’s differentiated proposition for shareholders. We will be pleased to welcome Ailsa and Marek and believe that their significant specialist expertise will enhance our thematic capability. Coupled with Schroders’ wealth of knowledge and experience of specialist equity strategies, Ailsa and Marek will help to drive shareholder returns in future.”
Kate Cornish-Bowden, Chair of IBT, commented:
“Schroders is an excellent fit for IBT. Following a comprehensive, independent process, we have identified a new Fund Manager for IBT, which aligns with the preference for continuity expressed by our shareholders. Schroders has extensive experience of managing investment trusts, and is well positioned to support, and help to grow IBT. Ailsa Craig and Marek Poszepczynski will join Schroders and retain the existing investment approach and dividend policy. We look forward to working with Schroders and continuing to deliver superior long-term returns for our shareholders.”
Ailsa Craig and Marek Poszepczynski commented:
“In Schroders, the Board has found an excellent new home for IBT. We’re pleased to be able to continue our focus on managing the Company’s portfolio and delivering value for shareholders. We look forward to IBT benefiting from integration into an investment management business which is well-resourced in many key areas.”
These appointments are subject to finalisation of legal documentation and to regulatory approval, and IBT is expected to transition formally to Schroders in November 2023, following publication of the Company’s annual results to 31 August 2023.
[1] March 2021 until 31 July 2023: Bloomberg. Figures refer to past performance and past performance is not a reliable indicator of future results.