(Alliance News) - Schroder UK Public Private Trust PLC on Friday reported on a "disappointing" 2019, which saw former Woodford Patient Capital lose almost half its net asset value and change its investment advisor.
Its net asset value per share fell 49% to 49.46 pence at December 31, from 97.61p a year prior.
Its stock was down 2.2% at 22.00p each in London on Friday morning. The shares have lost about 40% in the year to date, as equity markets wrestle with market turmoil caused by the ongoing health crisis.
"World economies are currently being severely disrupted by the Covid-19 pandemic and this may create opportunities for some of the many healthcare companies in the portfolio but will also put pressure on other aspects of their activity, such as fundraising," Schroder UK Public Private said.
It ended 2019 with a share price of 38.35p, 53% down from 82.10p a year prior.
It was year in which the trust's investment advisor, embattled fund manager Neil Woodford's Woodford Investment Management Ltd, resigned. The change came in mid-December, meaning the trust's performance in 2019 "was in effect the responsibility of Woodford rather than Schroders Investment Management Ltd", its new advisor.
"The board has been encouraged by the appointment of Schroders as portfolio manager since December," the trust said.
"This was clearly very disappointing with the NAV falling by 49.3% from 97.61p to 49.46p," Schroders Public Private said.
"2019 was a year of significant volatility and change for the company and its portfolio. The portfolio experienced a meaningful decline in value. Concerns over the spread of coronavirus and its potential impact on global growth have dominated financial markets recently, with public equity markets falling sharply."
More positively, the trust noted the virus crisis could create "opportunities for some of the many healthcare companies in the portfolio".
By Eric Cunha; ericcunha@alliancenews.com
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