Worldwide Healthcare Trust shares were down 0.3% to 3,074.7p in early morning trading on Friday, after the group announced a net asset value (NAV) per share total return loss of 5.8% in FY 2022 compared to a 30% return in FY 2021.
The trust fell 26.2% against the MSCI World Health Care Index benchmark total return of 20.4% across 2022 as a result of the firm’s portfolio manager deciding to pursue a strategy of being underweight in large pharmaceutical companies, and overweight in emerging markets and emerging biotechnology companies.
The company commented that this strategy served it well in 2021, however it became the main driver behind its poorer performance in 2022.
The group said the volatile macro-economic environment had discouraged interest in promising, yet unestablished companies, as investors retreated to firms with a strong “growth-to-value” rotation, and risk-aversion damaged the business sectors in which the firm remained overweight.
It notably drained interest in sectors such as biotechnology, innovative tools and China healthcare.
The company mentioned that waning investment reflected consumer sentiment rather than significant deterioration in business viability, with the trust commenting that it expected the stocks to recover in sufficient time.
Worldwide Healthcare Trust reported a NAV per share of 3,465.2p compared to 3,703p in the last year, with a share price dip to 3,275p from 3,695p year-on-year.
In addition, the firm highlighted a discount of share price to net asset value per share of 5.5% compared to 0.2% the year before.
Worldwide Healthcare Trust also noted a rise in leverage to 10.9% compared to 7.6%, with ongoing charges flat at 0.9% year-on-year.
The company confirmed that its outlook appeared uncertain as a result of the gloomy macroeconomic environment, however it noted the recovery of healthcare and the trust’s reliable fundamentals, with its defensive characteristics highlighted as an attractive quality amidst the current geopolitical uncertainty.
Worldwide Healthcare Trust announced a dividend per share of 26.5p for FY 2022 against 22p in FY 2021.