International Biotechnology trust to introduce 4% annual dividend

Subject to shareholder approval

The £193m International Biotechnology trust (IBT) has proposed to introduce an annual dividend payment equivalent to 4% of the company's NAV, to be paid out of capital reserves.

It has also proposed to amend its investment policy to allow the trust, which is managed by SV Life Sciences Managers, to invest in unquoted funds. The board believes both proposals, which are subject to shareholder approval at the trust's AGM to be held on 29 September, will benefit shareholders as well as potential investors. It is expected the dividend will be paid out of capital reserves through two equal distributions in January and August every year. If implement, the first dividend will be declared in December this year, and paid in January 2017. Biotech and commodity trusts...