This was a brief update on the trust. Ailsa and Marek took over as lead fund managers in March 2021, when Kate Bingham stepped down. Kate had been at the helm since 2001, and she stepped aside due to her work on the vaccine taskforce. This meant that the trust couldn’t hold the main vaccine names like Moderna, and this has hindered performance. However the trust will pay out its dividend of 4%.
The managers draw on the resources of SV Health Investors who are scientifically and medically trained to identify opportunities. The trust invests in both globally quoted biotechnology stocks and a small proportion is allocated to unquoted investments which have long term potential.
They are active managers. They used the example of investing in smaller companies to demonstrate how active they are. Coming into the pandemic they reduced their exposure to smaller companies as they felt this would be hardest hit in a market downturn. This was the case and opened opportunities with lower prices and therefore they started to add to these positions. As the prices rose towards the end of 2020 they again sold back. As the prices became cheap, they have added back into the positions….read more