**Summary of Bellevue Healthcare Trust PLC Half-Year Report (August 2025)**
**Investment Objective and Performance**
Bellevue Healthcare Trust PLC aims to provide long-term capital growth and income by investing in global healthcare companies, targeting outperformance against the MSCI World Health Care Index. For the six months ended 31 May 2025, the trust underperformed its benchmark
**Share price total return**-13.8% (vs. -11.8% for MSCI World Healthcare Index).
**NAV total return**-19.9% (vs. -11.8% for the index).
The underperformance was primarily due to weak holdings in February and March, exacerbated by macro challenges, particularly U.S. political developments.
**Financial Highlights**
**Net Asset Value (NAV) per share**121.11p (down from 154.32p in November 2024).
**Share price**119.20p (discount to NAV: 1.6%, narrowed from 8.5% in November 2024).
**Ongoing Charges Ratio (OCR)**1.22% (up from 1.03% in November 2024).
**Strategic Review**
The Board initiated a strategic review to address underperformance and improve shareholder value. Options include performance enhancement or other value-creation measures. The annual redemption facility is paused during the review, but the Zero Discount Policy (ZDP) remains active.
**Dividend and Corporate Actions**
**Dividend**2.70p per share for FY 2025, paid in two equal installments (September 2025 and April/May 2026).
**ZDP**Introduced post-AGM, allowing shareholders to sell shares near NAV. Since implementation, the average discount narrowed from -7.1% to -1.2%.
**Share buybacks**86.6 million shares repurchased, with 32.8 million post-ZDP launch.
**Portfolio Adjustments**
Increased portfolio holdings limit from 35 to 45 to enhance diversification.
Reduced U.S. exposure from 98% to 86% and increased Mega-Cap holdings from 21.2% to 31.9%.
Focused on medical devicesdiagnosticsand services over drugs.
**Sector Outlook**
Healthcare fundamentals remain strong, but short-term headwinds persist, including U.S. tariffs, drug pricing pressures, and FDA regulatory uncertainty. The sector is undervalued relative to historical metrics, and long-term growth drivers (aging population, innovation, etc.) remain intact.
**Board Changes**
Jo Dixon remains Senior Independent Director until the 2026 AGM.
Board size reduced to four members post-Jo Dixon’s retirement for cost efficiency.
**Management Perspective**
The trust’s bottom-up strategy focuses on companies driving healthcare innovation. Despite recent underperformance, management remains optimistic about the sector’s long-term potential, citing improving order books and share price reactions in Q2 2025.
**Financial Position**
**Net assets**£238.3 million (down from £693.2 million in May 2024).
**Cash**£26.2 million.
**Gearing**Negative (net assets exceed total assets less cash).
**Conclusion**
Bellevue Healthcare Trust faces near-term challenges but is adapting through strategic reviews, portfolio diversification, and shareholder-friendly policies like ZDP. Management remains confident in the healthcare sector’s long-term prospects, anticipating a rebound as headwinds subside.
| Metric | As at 31 May 2025 | As at 30 November 2024 | As at 31 May 2024 |
|---|---|---|---|
| Net Asset Value (NAV) per Ordinary Share (cum income) | 121.11p | 154.32p | 149.95p |
| Ordinary Share price | 119.20p | 141.20p | 132.50p (implied from discount) |
| Ordinary Share price discount to NAV | 1.6% | 8.5% | 11.6% (calculated) |
| Ongoing Charges Ratio (OCR) | 1.22% | 1.03% | N/A |
| Net Assets (£'000) | 238,262 | 437,300 | 693,186 |
| Total Expenses (£'000) | 2,100 (for 6 months) | 7,195 (for 12 months) | 3,790 (for 6 months) |
| Cash and Cash Equivalents (£'000) | 26,161 | 273,993 | 29,738 |
| Debt (Bank Loans Payable) (£'000) | 0 | 0 | 11,777 |
Performance Summary Comparison
| Metric | For the six months ended 31 May 2025 | For the six months ended 31 May 2024 |
|---|---|---|
| Share price total return per Ordinary Share | -13.8% | 12.1% |
| NAV total return per Ordinary Share | -19.9% | 6.3% |
| MSCI World Healthcare Index total return (GBP) | -11.8% | 9.7% |