(Alliance News) - Worldwide Healthcare Trust PLC on Friday said its outperformed its benchmark in the first half of its financial year thanks to stock selection.
The healthcare sector investor reported a net asset value per share total return of 23.1% for the six months ended September 30, while its benchmark - MSCI World Health Care Index on a net total return, sterling adjusted basis - had a 15.3% total return for the same period.
Worldwide Healthcare's NAV per share increased 23% to 3,514 pence as at September 30 from 2,868.9p on March 31.
Chair Martin Smith noted that: "While all healthcare sub-sectors contributed positively to performance during the period, the main degree of outperformance relative to the benchmark over the six months under review was primarily as a result of stock selection by our portfolio manager. Our overweight positions in both emerging biotechnology stocks and emerging markets have also served the portfolio well."
The company maintained its interim dividend at 6.5p per share.
In its previous financial year, in response to the Covid-19 pandemic, Worldwide Healthcare declared a second interim dividend as a final dividend. This allowed dividend payment to take place without prior shareholder approval at an annual general meeting.
It plans to propose a final dividend for its year ending March 2021 at its July AGM.
In terms of outlook, Smith said: "The ongoing incidence of the Covid-19 pandemic will undoubtedly have both economic and political consequences that will be difficult to evaluate in the short term. The loosening of monetary policy around the world may also eventually have consequences for both inflation and interest rates in the future."
He added: "Our portfolio manager continues to believe that the positive investment themes which underpin the healthcare sector remain intact and they will continue to focus on the selection of investments with strong prospects for capital growth. Your board firmly believes that long-term investors will be well rewarded."
Shares in Worldwide Healthcare were down 0.2% at 3,552.00p in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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Worldwide Healthcare Trust (WWH)