Portfolio Analysis

SV Health Managers LLP was appointed Investment Manager of the Company on 1 January 2005 and Alternative Investment Fund Managers (‘AIFM’) on 21 July 2014. SV Health Managers LLP provides life sciences focused Investment Management services to publicly listed investment funds and venture capital funds.

As at 31 January 2019

Summary

IBT Portfolio NAV (m)£228
Number of Portfolio Companies65
Quoted Investments51
Unquoted Investments14

Investment Manager Comment

In January 2019, the Trust’s NAV per share returned 9.1% (GBP) while the NASDAQ Biotechnology Index returned 10.2% (GBP). The FTSE All-Share Index returned 4.2% (GBP) and the S&P 500 Index returned 4.9% (GBP). IBT’s share price returned 7.0% (GBP). The USD weakened versus sterling by 2.9%.

 

The main positive contributors to NAV in the month were Celgene, Incyte and Vertex. Bristol-Myers Squibb announced its intention to acquire portfolio company Celgene for $74bn. The deal is the largest ever struck in the pharmaceutical sector after Pfizer’s $110bn takeover of Warner-Lambert in 1999. Many stocks within the biotech universe traded up on the back of M&A speculation, including Incyte which had a strong run through January. Vertex shares were strong after updating investors on their progress with their late stage triple combination in cystic fibrosis and the sales of their current marketed drugs. The company commands a premium valuation due to the lack of near-term competition and strong earnings growth.

 

The main negative contributors to NAV in the month were Genmab, Ligand and Illumina. Genmab shares were weak after their partner Johnson and Johnson reported disappointing sales growth of their lead asset Darzalex. Ligand shares were hit on the back of a short report by Citron Research, claiming that the company’s long-term outlook was much worse than investors had hoped. Illumina shares fell after the company announced worse than expected profits during the final quarter of 2018.


Performance

 (NAV, Share Price Change, 5 years)

Source: Bloomberg, mid-mid (share price), quoted in sterling and SVLSM. Past performance is not a guide to future performance
Note: All performance data are quoted net of all costs to the Company.


Top Ten Investments by NAV %

 

Celgene7.2%
Gilead6.5%
Incyte5.2%
Exelixis4.6%
Regeneron3.7%
Vertex3.3%
Acadia3.2%
Alexion3.0%
Stemline2.9%
Illumina2.3%

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