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How International Biotechnology Trust has responded to COVID-19

Published on 27th March 2020

Science background with molecule or atom Abstract structure for Science or medical background
Science background with molecule or atom Abstract structure for Science or medical background

We are pleased to invite you to watch our latest quarterly video, which is available on the homepage of the Trust’s website at www.ibtplc.com.

In this interview, we cover how the Trust has reacted to COVID-19 in its day-to day business operations, investment strategy and performance as well as the Board’s discount management approach during this period of market volatility. Additionally, we discuss our views on the possibility of treatments and vaccines for COVID-19 as well as the companies who are developing them.

We were quick to anticipate the likely impact of COVID-19 on the market and adapted the Trust’s investment strategy by significantly reducing its gearing at the end of January. This, and the stability provided by the Trust’s unquoted portfolio, has resulted in the Trust keeping in step with the NBI and outperforming the FTSE 100 over the period since January – as indicated by the graph below. Unfortunately, market sentiment has affected the Trust’s discount, but the Trust’s Board and Broker have been working on supporting the share price through a series of buybacks.

Figure 1. Total return – IBT (NAV and Share price) vs NASDAQ Biotech Index (NBI) and FTSE 100

Source: Bloomberg

We would like to reiterate to our readers that we are well equipped to work remotely during the COVID-19 quarantine period, allowing us to operate business as usual here at the Trust. We continue to actively monitor the market, and we are now on the lookout for well financed, cash generating, attractively valued investment opportunities.

We encourage all our readers to practice social distancing, as per the guidance set out by their respective governments, and we hope you all stay safe and well during this time.

March Factsheet (click link to open)

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