International Biotechnology Trust (250p and 3.0% of JIC). I have this morning bought a 3% holding in the International Biotechnology Trust (IBT). Regular readers will know that one theme I am very keen on is healthcare and biotechnology; the main drivers being the rapid growth in healthcare spending as the world gets wealthier and an acceleration in medical advances driven by a combination of the explosive growth in computer power and our relatively new understanding of the human genome.
I have thus far played this through holdings in the Worldwide Healthcare Trust and the Biotechnology Growth Trust (BGT). Last week I halved my holding in the BGT reducing the holding to 3.0% but have re-invested the proceeds in IBT. IBT has seen its discount to NAV widen from 8% to 14% over the last week or so which compares to just a 2% discount for the BGT. Historic performance might suggest that a wider discount for IBT is justified but I think that now is a good time to add the holding. 16% of its assets are invested in unquoted companies, some of which are starting to come to fruition and have the potential to make meaningful contributions to the NAV performance. (see transactions)
For more information see www.ibtplc.com and www.trustnet.com
