RCS - Biotech Grw Tst PLC - Edison issues review on The Biotech Growth Trust

Biotech Growth TrustAnnouncement

29/07/2019 15:35

RNS Number : 0872H
Biotech Growth Trust PLC (The)
29 July 2019
 


 
London, UK, 29 July 2019
Edison issues review on The Biotech Growth Trust (BIOG)
The Biotech Growth Trust (BIOG) is managed by Geoff Hsu and Richard Klemm of OrbiMed Capital and aims to generate long-term capital growth from a diversified portfolio of global biotech equities. Investment performance has improved markedly in 2019, following a tough few years, and the managers retain their record of long-term outperformance versus the NASDAQ Biotechnology index. They remain very optimistic on the prospects for the global biotech sector, citing a favourable regulatory environment, a 'golden era of innovation' and an uptick in merger and acquisition activity, and believe that political noise in the run-up to the 2020 US presidential election will be manageable for the industry.
 
BIOG's current 6.6% share price discount to cum-income NAV is somewhat narrower than the 7.2% one-year average, but a little wider than the 6.3%, 6.0% and 5.3% average discounts over the last three, five and 10 years respectively. Investor sentiment towards the sector is poor; if this were to improve, there is potential for a narrower discount, and continued outperformance could also be a contributing factor. BIOG can gear up to 20% of NAV; at end-June 2019, net gearing was 6.2%. The trust does not pay a dividend.  

Click here to view the full report.
 
Subscribe to Edison's content to receive reports by email.
All reports published by Edison are free-to-access and available on the website.
 
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information please contact Edison:
Mel Jenner, +44 (0)20 3077 5720
Sarah Godfrey, +44 (0)20 3681 2519
investmenttrusts@edisongroup.com
 
Learn more at www.edisongroup.com and connect with Edison on: 
LinkedIn        https://www.linkedin.com/company/edison-group- 
Twitter           www.twitter.com/Edison_Inv_Res 
YouTube       www.youtube.com/edisonitv 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
NRAZMGZNDLVGLZM