Schroders Capital Global Innovation positions portfolio for buybacks as NAV slumps 13%
INOV shares were down 18.9% over the period, as its discount to NAV widened to 51.3%.
The £223m trust, formerly known as Woodford Patient Capital and later Schroder UK Public Private, until a name change in April this year, saw its net asset value slump by 13.3% in the six months to 30 June 2023.
The NAV drop was driven by its public holdings (-7.4%) as legacy investments such as Benevolent AI, AMO Pharma and Oxford Nanopore suffered from share price weakness. Private holdings (-5.7%) and costs (-0.4%) also contributed to the underperformance.
'Akin to raising the Titanic': Painful tenure for Schroder UK Public Private sparks doubts over its future
INOV shares were down 18.9% over the period, while its discount to NAV widened to 51.3%. According to data from the Association of Investment Companies, the discount has narrowed to 41.5% at the time of publication.
At the start of September, INOV announced it had embarked on a programme to repurchase shares for cancellation set to run until the end of 2024. The board said it would repurchase shares equal to at least 5% of INOV's issued share capital in each of the calendar years 2023 and 2024.
In its half-year results, the trust said the manager had made progress, particularly during the second quarter of 2023, in altering the liquidity mix to facilitate the buyback and ensure ongoing support for the existing portfolio.
The trust realised £24.5m over the period, exiting public equity holdings in Johnson Matthey, Spirent Communications and Petershill Partners, and reducing its holdings in Oxford Nanopore, Immunocore and IDEX Biometrics.
Schroders Capital Growth Innovation hires Winterflood for share repurchase programme
With the portfolio in a «strong» liquidity
Read more on investmentweek.co.uk
