International Biotechnology Trust (LON: IBT) posted a share price total return of 73.6% in the year to the 31st of August, ahead of the 52.3% from the NASDAQ Biotechnology Index. The trust, managed by Schroder Investment Management Limited, published its annual results before the open today.
Total return counts the price change plus reinvested dividends. The trust’s net asset value (NAV), the value of its assets minus liabilities, returned 64.7%, and it was the fifth consecutive year of beating the index. The index figure runs to Friday the 28th of August, because the 31st was a bank holiday.
Takeovers were central to the year. Thirteen portfolio companies, about 27% of NAV, were acquired during the year, against five the year before, including Vertex’s roughly $10bn purchase of Crinetics, Biogen’s roughly $5.6bn deal for Apellis and Merck’s roughly $6.7bn offer for Terns.
Chair Kate Cornish-Bowden said the portfolio managers had again identified takeover candidates with proven science.
Shareholders saw the benefit beyond the headline return. NAV per share rose to 1,183.33p from 739.48p, and the discount, the amount by which the share price sits below underlying asset value, narrowed to 4.1% from 8.9%.
Costs fell as well. Ongoing charges, the annual running costs as a share of assets, dropped to 1.0% from 1.3%, and the quoted-portfolio management fee was cut to 0.65% from 0.70% from the 1st of September 2025.
| Metric | 2026 | 2025 | Change |
|---|---|---|---|
| Net assets | £374.6m | £249.4m | Higher |
| NAV per share | 1,183.33p | 739.48p | Higher |
| Discount to NAV | 4.1% | 8.9% | Narrowed |
| Ongoing charges | 1.0% | 1.3% | Fell |
| Quoted-portfolio management fee | 0.65% | 0.70% | Cut |
| Portfolio companies acquired | 13 | 5 | Up |
Dividends totalled 31.31p, a 2.8% yield at the 31st of August. The policy is to pay 4% of NAV through two semi-annual payments, and dividends for the year to the 31st of August 2027 are expected to rise by the same percentage as NAV.
The chair was cautious on the outlook. Oil is 50% higher than at the 1st of September last year, and the chair pointed to rate rises since the year-end.
Both the US and the Eurozone have raised interest rates post the year-end, bringing to an end the benefits of lower borrowing costs on global economic growth. This may dampen investor enthusiasm for valuations in the biotechnology sector which are sensitive to rising yields.
Kate Cornish-Bowden, Chair
Portfolio managers Ailsa Craig and Marek Poszepczynski nonetheless expect the current wave of mergers and acquisitions to continue.