International Biotechnology Trust cuts charges

The International Biotechnology Trust (IBT) has become the latest investment trust to cut its management fee.

The trust, which invests in biotechnology companies, has reduced its management fee from 1.15 per cent to 0.9 per cent, while keeping its performance fee.

The other investment trust investing in biotech companies, the Biotech Growth trust, has a fee set at 0.65 per cent per annum of its net assets plus 0.3 per cent of its market capitalisation, along with a performance fee.

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Analysts at Numis Securities said the fee cut by IBT was “overdue” in order to make it “competitive” with the Biotech Growth trust.

However, the analysts said they still “find it hard to favour IBT given its uninspiring long term performance record relative to its universe and peers”.

“Over the past decade, it has delivered net asset value total returns of 13.8 per cent [per annum] versus 17.9 per cent for the Nasdaq Biotech index (in sterling) and 21.4 per cent for Biotech Growth,” said Numis.