The Worldwide Healthcare Trust PLC released its annual financial report for the year ended March 31, 2025. The report includes details on the companys performance, investment strategy, and financial statements. Here is a summary of the key points
Company Performance
The net asset value per share total return for the year was -10.3%, while the benchmark (MSCI World Health Care Index) returned -3.2%.
The share price total return was -10.5%, and the discount of the share price to the net asset value per share widened slightly from 12.1% to 12.4%.
The companys long-term performance remains strong, with a total return of net asset value per share of +4,254% since inception in 1995.
Investment Performance
Stock market volatility driven by macro events impacted the global healthcare sector and the companys performance.
The companys absolute and relative performance suffered during the latter part of the financial year, offsetting the strong early returns.
The healthcare equipment and supplies sector was a positive contributor, while the therapeutics sector, specifically biotechnology, was negatively impacted by macro headwinds and higher interest rates.
Capital
The company has an active share buyback program, repurchasing 51,310,528 shares for treasury at a cost of £176.5 million during the financial year.
The companys share price discount to the net asset value per share widened to 12.4% as of March 31, 2025, compared to 12.1% in the previous year.
Revenue and Dividend
The companys net revenue decreased to £16.1 million due to a decrease in exposure to higher-yielding stocks and a reduction in the size of the portfolio.
The board is proposing a slightly reduced final dividend of 1.7p per share, resulting in a total dividend for the year of 2.4p per share.
Board of Directors
The board appointed two new directors, Sian Hansen and William Hemmings, who have been contributing to the boards deliberations.
The board asked Doug McCutcheon to extend his term as Board Chair for a period of three to five years to oversee the renewal of the board.
EnvironmentalSocialand Governance (ESG) Matters
ESG matters remain a priority for the board, and the companys portfolio manager, OrbiMed, is committed to taking a leading role in ESG engagement practices in the healthcare sector.
Performance Fee
There is currently no provision for the payment of a performance fee, and earning a performance fee is dependent on the long-term outperformance of the company.
Investment Guidelines
The board made a minor change to the investment guidelines, increasing the maximum investment in the healthcare equipment and supplies sector from 30% to 40% of the portfolio.
Annual General Meeting (AGM)
The AGM will be held on WednesdayJuly 92025at Saddlers HallLondon.
Board and Adviser Activity
The board maintains a high level of communication and holds quarterly meetings, along with additional meetings as required.
The board oversees various aspects, including the roles and performance of the portfolio manager, net asset value and share price performance, expenses, regulatory environment, shareholder communications, and the composition of the board.
Capital Allocation
The board believes that having the portfolio manager reinvest capital into healthcare investments will generate the highest returns over the long run.
During the financial year, the company repurchased 51,310,28 shares, representing 9.4% of the shares outstanding at the beginning of the year.
Shareholder Engagement
The board believes in the importance of shareholder engagement and has been actively supported by the portfolio manager, AIFM, and PR consultant in providing information and insights to shareholders.
Investment Objective and Policy
The company invests in the global healthcare sector with the objective of achieving a high level of capital growth.
The implementation of the investment objective has been delegated to OrbiMed under the supervision and guidance of the board and AIFM.
Derivative Strategy and Limits
The company employs equity swaps to enhance returns and manage risk. The board has set limits on derivative transactions and equity swaps.
Leverage Limit
The board has set a maximum gearing level of 20% of net assets through borrowing.
Portfolio
The companys portfolio includes investments in various sectors, including pharmaceuticals, healthcare equipment and supplies, biotechnology, and healthcare providers and services.
Summary
The companys net asset value per share total return for the year was -10.3%, while the benchmark returned -3.2%.
The companys share price total return was -10.5%, and the discount to net asset value per share widened slightly.
The board remains committed to its share buyback policy and has repurchased a significant number of shares during the financial year.
The companys revenue decreased due to a reduction in exposure to higher-yielding stocks, and the board is proposing a slightly reduced final dividend.
The board provided an update on ESG matters and the portfolio managers approach to responsible investing.
The board made a minor change to the investment guidelines, increasing the maximum investment in the healthcare equipment and supplies sector.
The AGM will be held on July 9, 2025, and the board encourages all shareholders to exercise their right to vote.